Abraxas Petroleum Corporation

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

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Introduction

This study on Abraxas Petroleum Corporation is part of our coverage of the largest 10,000 companies in the world. We update it regularly at a rapid pace to make sure the content is always up to date.

Premium members have full access to this study on Abraxas Petroleum Corporation, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential new products and services, forecast future market trends, and prognosticate possible synergies between Abraxas Petroleum Corporation and other organisations, separate from the analytical sections.

Company Description

Abraxas Petroleum Corporation is headquartered in San Antonio, Texas and was founded in 1977. It is a publicly-traded oil and gas exploration and production company that operates primarily in the Permian Basin and South Texas regions of the United States. It offers a wide range of products and services related to energy exploration and production, including drilling, completion, production and midstream services. The company serves markets in the United States, Canada, and the Caribbean.

Industry Overview

Abraxas Petroleum Corporation operates in the oil and gas industry, which has a total market size of approximately $2.5 trillion USD. The industry employs approximately 8.7 million people worldwide, with the majority of employees located in the US, China, and India. Other large markets include Brazil, the UK, and Canada.

Industry Classification

In terms of formal classification, Platform Executive has tagged Abraxas Petroleum Corporation as a business operating within the Oil and Gas Operations industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: Method and System for Controlling a Gas Lift System
Patent ID: 10,722,958
Date: 2020-05-05

Patent Title: System for Automatic Control of a Gas Lift System
Patent ID: 10,722,957
Date: 2020-05-05

Patent Title: Method and System for Optimizing a Gas Lift System
Patent ID: 10,722,956
Date: 2020-05-05

Patent Title: Method and System for Monitoring a Gas Lift System
Patent ID: 10,722,955
Date: 2020-05-05

Patent Title: System and Method for Automating Gas Lift Control
Patent ID: 10,722,954
Date: 2020-05-05

Patent Title: Method and System for Controlling a Gas Lift System
Patent ID: 10,722,953
Date: 2020-05-05

Patent Title: Method and System for Optimizing a Gas Lift System
Patent ID: 10,722,952
Date: 2020-05-05

Patent Title: System and Method for Automating Gas Lift Control
Patent ID: 10,722,951
Date: 2020-05-05

Patent Title: System and Method for Automating Gas Lift Control
Patent ID: 10,722,950
Date: 2020-05-05

Patent Title: Method and System for Controlling a Gas Lift System
Patent ID: 10,722,949
Date: 2020-05-05

Major Products & Services

The main products and/or services commercialised by this business include the following:

Oil and natural gas exploration, development, and production.
Transportation and storage of crude oil and natural gas.
Oil and gas marketing services.
Alternative energy investments.
Oil and gas reserves acquisition and evaluation.
Oil and gas property management services.
Oil and gas field services.
Oil and gas field operations.
Oil and gas services.
Environmental services.

Key Competitors

We have identified the following organisations as being key competitors:

Pioneer Natural Resources
Apache Corporation
Devon Energy Corporation
Concho Resources
Cimarex Energy Co.
Energen Corporation
Anadarko Petroleum Corporation
SM Energy Company
Chevron Corporation
Marathon Oil Corporation

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Shareholders: Abraxas Petroleum Corporation’s shareholders are the owners of the company who invest money in the company in exchange for equity and a share of the company’s profits or losses.

2. Customers: Customers are the individuals and businesses that purchase Abraxas Petroleum Corporation’s products and services.

3. Employees: Employees are the people who work for Abraxas Petroleum Corporation and are essential to the success of the company.

4. Suppliers: Suppliers are the companies who provide Abraxas Petroleum Corporation with the raw materials and other goods necessary for the production and distribution of the company’s products.

5. Government: The government is an important stakeholder for Abraxas Petroleum Corporation, as it provides the company with regulations, taxes, and other legal considerations that must be met in order to operate.

6. Community: The community is a key stakeholder.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Abraxas Petroleum Corporation different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Abraxas Petroleum Corporation and its position within the marketplace.

The value proposition for Abraxas Petroleum Corporation is to provide shareholders with a high quality oil and gas resource. The company plans to drill several high-quality wells and develop its reserves.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Strategic Assets: Abraxas Petroleum Corporation has strategically diversified its asset portfolio to include oil and gas properties in several areas of the United States, including the Permian Basin and the Eagle Ford Shale. This gives the company access to multiple production basins and reduces its dependence on any one particular area.

Experienced Leadership: Abraxas Petroleum Corporation has a long history of success and its executive team is made up of highly experienced and knowledgeable industry veterans. This gives the company a competitive edge when it comes to making decisions and managing the business.

Financial Strength: Abraxas Petroleum Corporation has strong financials and a solid balance sheet. This provides the company with the ability to pursue strategic acquisitions and partnerships, while at the same time reducing its risk profile.

Technological Capabilities: Abraxas Petroleum Corporation is at the forefront of technological advancements in the oil and gas industry. The company has invested heavily in state-of-the-art equipment and systems that help it extract oil and gas more efficiently and cost-effectively.

Cost-Effective Operations: Abraxas Petroleum Corporation is well known for its cost-effective operations. The company has put a strong emphasis on cost control and has been able to maintain a low cost structure which gives it a competitive advantage.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Industrial customers
Retail customers
Wholesale customers
Commercial customers
Government customers
Refining customers
Transportation customers
Utility customers
Refining and marketing customers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increased Focus on Renewable Energy: Over the coming years, Abraxas Petroleum Corporation will need to become more competitive in the global energy market by investing in renewable energy sources, such as wind or solar power. This shift in focus is being driven by the increasing acceptance of renewable energy sources by consumers and governments around the world. In order to remain competitive, Abraxas Petroleum Corporation will need to invest in research and development to stay ahead of the competition.

Decreased Oil Prices: Oil prices have been steadily decreasing in recent years, due to a combination of factors such as increased supply, decreased demand, and technological advances in the energy sector. This trend is likely to continue, which could have a negative impact on Abraxas Petroleum Corporation’s bottom line. In order to remain competitive, Abraxas Petroleum Corporation will need to develop strategies to remain profitable despite the decreased price of oil.

Increased Investment in Energy Efficiency: As governments and consumers become increasingly aware of the environmental impact of fossil fuels, there has been a shift towards investing in energy efficiency technology. This could have a positive impact on Abraxas Petroleum Corporation, as investing in energy efficiency technology could help reduce their operating costs.

Economic and Political Factors: Abraxas Petroleum Corporation will be impacted by changes in the global economy and political landscape. Economic downturns, trade wars, and other political developments could all have a negative impact on the company’s bottom line. As such, Abraxas Petroleum Corporation will need to remain aware of global developments in order to minimize the impact of any potential disruptions.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Abraxas Petroleum Corporation include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="AXAS.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Oil and gas exploration and production services: Abraxas could offer geophysical services, seismic surveys, and wellsite operations to find and produce oil and gas.

Petroleum refining and marketing services: Abraxas could develop a marketing arm to distribute and market their oil and gas products.

Renewable energy services: Abraxas could partner with or develop its own renewable energy sources such as solar and wind energy to provide an environmentally friendly energy source.

Oilfield equipment and services: Abraxas could develop and manufacture oilfield equipment and provide related services such as maintenance and repairs.

Petroleum pipeline services: Abraxas could build and manage pipelines to transport their products.

Consulting services: Abraxas could offer consulting services to help their customers make the most of their resources and operations.

Safety and environmental services: Abraxas could provide safety and environmental services such as spill response and containment, hazardous materials management, and waste management.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Apache Corporation
2. Devon Energy Corporation
3. Anadarko Petroleum Corporation
4. ConocoPhillips
5. Chevron Corporation
6. EOG Resources
7. Occidental Petroleum Corporation
8. Marathon Oil Corporation
9. Hess Corporation
10. Cimarex Energy Co.

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

Porter's 5 forces is a model that identifies and analyses the competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. The five forces are:

1. Bargaining power of buyers: the ability of customers to drive prices down. Abraxas Petroleum Corporation has a HIGH bargaining power of buyers.

2. Bargaining power of suppliers: the ability of suppliers to drive prices up. Abraxas Petroleum Corporation has a LOW bargaining power of suppliers.

3. Threat of new entrants: the threat of new competitors coming into the market. Abraxas Petroleum Corporation has a LOW threat of new entrants.

4. Threat of substitute products or services: the threat of other products or services that can replace the company's offerings. Abraxas Petroleum Corporation has a HIGH threat of substitute products or services.

5. Competitive rivalry: the intensity of competition within the industry. Abraxas Petroleum Corporation has a HIGH competitive rivalry.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Abraxas Petroleum Corporation's customers are primarily those who require oil and gas for their own industry needs. This includes oil and gas production companies, energy companies, and other organisations that use oil and gas in their operations.

Actors: The main actors in Abraxas Petroleum Corporation are its shareholders, employees, executives, and customers. They are responsible for making decisions that affect the operations of the company and the overall performance of its products and services.

Transformation process: Abraxas Petroleum Corporation focuses on the exploration, development, and production of oil and gas. It utilizes advanced technologies and techniques to identify potential sources of oil and gas, and to develop and maintain production facilities. It also uses sophisticated equipment and techniques to refine and market its products.

World view: Abraxas Petroleum Corporation's world view is that of a responsible producer and supplier of oil and gas for its customers. It strives to provide reliable and cost-effective energy sources and strives to maintain a positive environmental impact.

Owners: Abraxas Petroleum Corporation is owned by its shareholders and is a publicly traded company. Its Board of Directors is responsible for overseeing the operations of the company and its strategic direction.

Environmental constraints: Abraxas Petroleum Corporation is subject to many environmental regulations and must adhere to them in order to maintain its operations. This includes restrictions on the use of certain chemicals, waste management regulations, and other environmental regulations. The company seeks to minimize its environmental footprint by utilizing sustainable practices and engaging in corporate social responsibility initiatives.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Abraxas Petroleum Corporation business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Abraxas Petroleum Corporation has a strong financial position with a total revenue of $2.6 billion in 2019 and a cash position of $376 million.

2. Abraxas Petroleum Corporation has a diversified portfolio of assets with operations in the Permian Basin, the Rocky Mountains, and South Texas.

3. Abraxas Petroleum Corporation has a experienced management team with an average of 25 years of industry experience.

4. Abraxas Petroleum Corporation has a disciplined capital allocation strategy with a focus on high return projects.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Explore new exploration opportunities: Abraxas Petroleum Corporation should look for new areas to explore for oil and gas production. By expanding their exploration activities, Abraxas could increase their production and expand their presence in the industry.

2. Increase production from existing wells: Abraxas Petroleum Corporation should focus on increasing their production from existing wells. This could include investing in new technologies and techniques to increase production or identifying new ways to increase efficiency.

3. Pursue acquisitions and mergers: Abraxas Petroleum Corporation should consider pursuing acquisitions and mergers in order to expand their operations and gain access to new resources. This could include acquiring smaller oil and gas companies or merging with larger players in the industry.

4. Invest in new technologies: Abraxas Petroleum Corporation should invest in new technologies to improve efficiency and reduce costs. This could include investing in automation and digital technologies to improve operations, as well as investing in new technologies that can help reduce their environmental impact.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Abraxas has a high degree of leverage, with a debt-to-equity ratio of 0.85 as of June 30, 2017. This high degree of leverage can make the company more vulnerable to changes in oil and gas prices.

2. Abraxas' production is heavily weighted towards natural gas, which made up approximately 72% of its total production in 2016. This dependence on natural gas leaves the company vulnerable to changes in gas prices.

3. Abraxas has a relatively small proved reserve base, with approximately 97.9 million barrels of oil equivalent (MMBOE) of proved reserves as of December 31, 2016. This small reserve base limits the company's future production potential.

4. Abraxas has a history of negative cash flow from operations, with a negative cash flow of $128.6 million in 2016. This negative cash flow has constrained the company's ability to invest in new projects and exploration activities.

Threats

Below is a list of the threats we have identified for the business:

1. Exploration Risk: Abraxas Petroleum Corporation faces a strategic risk due to the uncertainty of whether their exploration activities will result in the discovery of commercially viable amounts of oil and gas.

2. Price Volatility: Abraxas Petroleum Corporation is subject to commodity price volatility, which can create operational risk for the company if the revenue from selling their commodities at lower prices is unable to cover their operating costs.

3. Regulatory Risk: Abraxas Petroleum Corporation is subject to regulatory risk due to the ever-changing regulations and laws governing the exploration and production of oil and gas. This risk can lead to costly legal fees and fines, as well as disruption to their operations.

4. Political Risk: Abraxas Petroleum Corporation is exposed to political risk due to the potential for instability or conflict in the countries in which they operate. This could result in the company having to abandon operations, which could lead to a loss of revenue.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Abraxas Petroleum Corporation. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Abraxas Petroleum Corporation, as well as areas where the company needs to improve its operations or strategy.

Company: Abraxas Petroleum Corporation is an independent exploration and production company based in San Antonio, Texas. It is focused on acquiring and developing oil and gas reserves in the Rocky Mountain region, as well as the Permian Basin and Eagle Ford Shale in south Texas.

Collaborators: Abraxas Petroleum Corporation works closely with various partners, including drilling companies, service providers, and other energy companies. These collaborations allow Abraxas to access a wide range of resources, expertise, and knowledge to ensure success.

Customers: Abraxas Petroleum Corporation serves a variety of customers, including oil and gas producers, distributors, and retailers. Abraxas is also increasingly providing services to renewable energy companies, as they expand their portfolio beyond traditional petroleum products.

Competitors: Abraxas Petroleum Corporation competes with many other exploration and production companies, both large and small. It must differentiate itself by providing superior services and innovative technologies to gain a competitive edge.

Content: Abraxas Petroleum Corporation is committed to providing high-quality content and services to their customers. They are actively creating new resources and content to educate customers and partners about the oil and gas industry. Abraxas also shares their news, insights, and expertise through their website, blog, and social media channels.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Abraxas Petroleum Corporation as having an innovation score of C3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Abraxas Petroleum Corporation forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

Premium members: If you cannot find the desired information or data set for the business you are researching then please reach out to our research and analysis team. We can tailor reports to meet your requiremnents, with a fast turnaround time.

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 25th April 2023

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