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Abraxas Announces Third Quarter Results

Stocks in this article: AXAS

Discretionary cash flow is defined as operating income plus depreciation, depletion and amortization expenses, non-cash expenses and impairments, cash portion of other income (expense) less cash interest. The following table provides a reconciliation of discretionary cash flow to operating income for the periods presented.

(In thousands)   Three Months Ended

September 30,

  Nine Months EndedSeptember 30,
  2012       2011     2012       2011  
 
Operating (loss) income $ (11,359 ) $ 4,225 $ (9,158 ) $ 10,166
Depreciation, depletion and amortization 5,971 4,161 16,189 11,371
Impairment 11,761 13,067
Stock-based compensation 413 430 1,612 1,499
Realized gain (loss) on derivative contracts (84 ) 191 782 (1,037 )
Cash interest     (1,476 )     (867 )     (3,705 )     (3,582 )
Discretionary cash flow   $ 5,226     $ 8,140     $ 18,787     $ 18,417  
 

EBITDA is defined as net income (loss) plus interest expense, depreciation, depletion and amortization expenses, deferred income taxes and other non-cash items. The following table provides a reconciliation of EBITDA to Net income for the periods presented.

   
(In thousands) Three Months Ended

September 30,

Nine Months EndedSeptember 30,
  2012       2011     2012       2011  
 
Net (loss) income $ (18,644 ) $ 20,085 $ (6,924 ) $ 19,003
Net interest expense 1,595 981 4,058 3,918
Income tax expense 310 310
Depreciation, depletion and amortization 5,971 4,161 16,189 11,371
Impairment 11,761 13,067
Amortization of deferred financing fee 311 245 607 1,515
Stock-based compensation 413 430 1,612 1,499
Unrealized (gain) loss on derivative contracts 5,267 (16,450 ) (4,153 ) (13,431 )
Realized (gain) loss on interest derivative contract (946 ) 600 214 1,763
Equity in (income) of joint venture (282 ) (546 ) (2,316 ) (2,064 )
Other non-cash items           101       42       188  
EBITDA   $ 5,756     $ 9,607     $ 22,706     $ 23,762  
 

This release also includes a discussion of “adjusted net income (loss), excluding certain non-cash items,” which is a non-GAAP financial measure as defined under SEC rules. Furthermore, in accordance with SEC Regulations, earnings (or losses) related to Raven Drilling, LLC are credited to full cost pool rather than included in net income (loss) for the period presented. The following table provides a reconciliation of adjusted net income (loss), excluding ceiling test impairment, including net income from Raven Drilling, LLC and change in unrealized derivative contracts, to net income (loss) for the periods presented. Management believes that net income (loss) calculated in accordance with GAAP is the most directly comparable measure to adjusted net income (loss), excluding certain non-cash items.

   
(In thousands) Three Months Ended

September 30,

Nine Months EndedSeptember 30,
  2012       2011     2012       2011  
 
Net income (loss) $ (18,644 ) $ 20,085 $ (6,924 ) $ 19,003
Impairment 11,761 13,067
Net income related to Raven Drilling, LLC 1,069 1,632
Unrealized (gain) loss on derivative contracts     5,267       (16,450 )     (4,153 )     (13,431 )
Adjusted net income (loss), excluding certain non-cash items   $ (547 )   $ 3,635     $ 3,622     $ 5,572  
Net income (loss) per share – basic   $ (0.20 )   $ 0.22     $ (0.08 )   $ 0.21  
Adjusted net income (loss), excluding certain non-cash items, per share – basic  

$

(0.01

)

 

$

0.04

     

0.04

     

0.06

 




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