Abraxas Petroleum raises FY17 CapEx budget to $120M
Taking the Delaware Basin acquisition, increased working interests in the Caprito wells and removal of one planned Eagle Ford Well into consideration, Abraxas is increasing the capital expenditure budget to $120M for 2017. Abraxas' $120M capital budget consists of $110M in cash with the remainder in equity and ranch value associated with the above-mentioned acquisition and asset exchange. Abraxas' cash capital expenditures for 2017 remain unchanged at $110 million. With continued cost control and the divestiture of high LOE barrels, Abraxas is reducing the midpoint of LOE guidance by approximately $1.00/bbl. The midpoint of G&A guidance is increasing by approximately $1.25M to account for bonus accruals and additional staffing needs. Abraxas plans to revisit production guidance after achieving stabilized rates from the company's recent completions and taking into consideration recent acquisitions, divestitures and increased working interests in the Delaware Basin.