Imperial Capital Starts Abraxas Petroleum (AXAS) at In-Line (Earlier)

Imperial Capital initiates coverage on Abraxas Petroleum (NASDAQ: AXAS) with a In-Line rating and a price target of $5.75.

Analyst Kim Pacanovsky comments, "AXAS has lightened its debt load via asset sales, and has focused itself on developing Jourdanton, a Karnes Trough lookalike structure in the Eagle Ford Shale trend in LaSalle County, TX, where AXAS expects strong IRRs and repeatability. The shares have made a 46% move since April 1, 2014 and with our estimated $5.51 Risked Net Asset Value (RNAV) we view the shares as fairly valued. However, we will monitor AXAS extension into the southern portion of its Jourdanton acreage, and also downspacing in the Eagle Ford and Bakken, two events that could increase its RNAV. Management’s refocusing has reaped its reward and AXAS now has flexibility to add both production and inventory via bolt-ons or acquisitions, in our view."

For an analyst ratings summary and ratings history on Abraxas Petroleum click here. For more ratings news on Abraxas Petroleum click here.

Shares of Abraxas Petroleum closed at $5.24 yesterday.

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