Abraxas Petroleum



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.

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

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

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FIRST post, eh?

Wonder WHY you chose here!

a man with a Green Star

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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.