The company priced the 10 million shares of common stock in the offering a $5 a share. Abraxas Petroleum gave the underwriters of the offering a 30-day option to buy up to 1.5 million more shares.
Abraxas Petroleum expects net proceeds of about $47 million from the offering. The company will use those proceeds to accelerate its 2014 drilling program in its Bakken and Eagle Ford properties, acquire new acreage in Eagle Ford, and repay debt under its credit facility. The rest of the proceeds will be used for general corporate purposes.
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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."