Why Abraxas Petroleum (AXAS) Stock Is Up After-Hours Thursday

NEW YORK (TheStreet) -- Abraxas Petroleum (AXAS) was gaining 2.5% to $5.30 after-hours Thursday after raising its full-year 2014 production guidance.

For 2015 Abraxas now expects an average daily production of 5,800 to 6,000 barrels of oil equivalent a day, up from its previous guidance of 5,500 to 5,700 barrels a day.

The company modified its existing credit facility terms to extend the maturity to June 30, 2018, reduce interest by 50 bps across the grid, and reduce commitment fees to 37.5 bps.

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TheStreet Ratings team rates ABRAXAS PETROLEUM CORP/NV as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ABRAXAS PETROLEUM CORP/NV (AXAS) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, solid stock price performance and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 22.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 125.43% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AXAS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, ABRAXAS PETROLEUM CORP/NV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for ABRAXAS PETROLEUM CORP/NV is rather high; currently it is at 69.29%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.16% significantly outperformed against the industry average.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 690.6% when compared to the same quarter one year prior, rising from $0.60 million to $4.70 million.
  • You can view the full analysis from the report here: AXAS Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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