With an earnings report looming and Abraxas Petroleum Corp (AXAS) stock hovering around a 52-week low, day traders may want to put AXAS on the radar. AXAS stock closed at $1.82 a share today. This is just above a 52-week low of $1.69 a few weeks ago on July 23, 2015.
Like most energy companies, Abraxas Petroleum was hit hard with falling oil prices. AXAS watched their gross profits plummet nearly 50% in the first quarter of 2015 from $23.2 million to $12.3 million. However the company is fundamentally sound and any good news forthcoming in an upcoming August 6 earnings report could see the stock rebound nicely. The company recently commented on the stock underperformance in a July 23 press release saying in part:
Abraxas is unaware of any fundamental reason for the Company’s recent stock price underperformance. Abraxas notes that the Company exited June 30, 2015 $108 million borrowed on the Company’s $165 million borrowing base. With an additional nine well completions during the quarter, and only bank debt (as well as nominal amounts for a building mortgage and rig loan) in the Company’s capital structure, the Company is very comfortable with its asset coverage.