NEW YORK ( TheStreet) -- Abraxas Petroleum (AXAS - Get Report) came up short in its third quarter earnings released after the market close on Monday, and reined in its previous guidance for the full year.
The drilling play reported a loss of one cent on revenue of $14 million. The Street consensus was for revenue of $17 million and a gain of two cents.
Abraxas Petroleum said it won't meet its previous 2010 guidance goal of 15% earnings growth.Abraxas Petroleum shares reached a 52-week high last week. Abraxas shares were down 4% in after-hours trading on Monday. "Due to the timing delays of bringing wells on-line, principally due to the lack of service equipment in the Williston Basin, and the non-core divestiture program, the previously issued guidance is overstated by approximately 15%," the company said At the same time, Abraxas is increasing spending for 2011 to $40 million, a 33% increase over 2010. Approximately 50% of the 2011 budget will be spent on horizontal oil wells in the Bakken/Three Forks and Niobrara plays in the Rocky Mountain region. The other 50% of the spending increase will target conventional oil in the Permian Basin and onshore Gulf Coast regions of the United States and central Alberta in Canada. -- Written by Eric Rosenbaum from New York.
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