Abraxas Petroleum

https://tgsmnewsletter.substack.com/p/abraxas-petroleum?r=p7…

Summary

Abraxas Petrolieum (AXAS), is a delevered nanocap company, operates in the oil and gas industry. This pure-play Permian/Delaware Exploration & Production Company emerged from a pre-arranged bankruptcy on January 2, 2022 that helped to prevented a complete wipe out of equity holders. Management last reported net developed acreage assets were about 11,000 after having reserve engineering firm DeGolyer and MacNaughton (D&M) analyze their proved reserves. With a revamped board which has former creditors further participating in the upside valuation, I believe AXAS offers equity investors, able to participate in this nanocap, an opportunity to gain significant capital appreciation in the event of a sale of the company in the next 6 months to a year. My most conservative deal outlook would provide investors with an expected aggregate return of 25% on an announced deal given current AXAS stock pricing $1.70 as of 6/24/2022. This puts my conservative calculated deal range between $200M and $260M.

1 Like

Nanocap, huh. If you turn it sideways, does it disappear because it’s so thin? :slight_smile:

Fuskie
Who notes this is a OTC penny stock so you probably will not find many Foolish takers…


Premium Home Fool: Ask me a Foolish Question, I’ll give you a Foolish Response!
Ticker Guide: The Walt Disney Company (DIS), Intuit (INTU), Live Nation (LYV), CME Group (CME), MongoDB (MDB), Trip Advisor (TRIP), Vivendi SA (VIVHY), JFrog (FROG), Virgin Galactic (SPCE), Axon Technologies (AXON), Blackbaud (BLKB)
Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate advice
Disassociation: The views and statements of this post are Fuskie’s and are not intended to represent those of The Motley Fool or any other sane body
Disclosure: May own shares of some, many or all of the companies mentioned in this post: https://tinyurl.com/FuskieDisclosure
Fool Code of Conduct: https://www.fool.com/legal/the-motley-fools-rules.aspx#Condu…
Invitation: You are invited to interactively watch Motley Fool Live online television: https://www.fool.com/premium/live/
Call to Action: If you like this or any other post, Rec it. Better yet, reply to it. Even better, start your own thread. This is YOUR TMF Community!

3 Likes

FIRST post, eh?

Wonder WHY you chose here!

sunray
a man with a Green Star

1 Like

Update: Biglari Capital acquired controlling stake

So Abraxas will be de-listed and absorbed into Biglari Holdings as a subsidiary without any control premium whatsoever. Not the outcome you were looking for as a common shareholder. The terms on the Angelo Gordon preferred were just too intense for anything to be left for the common. I suppose common shareholders are “lucky” to end up with the 10% of the company they ended up with here. It was basically that or zero.