Abraxas Pay Cuts
In the wake of a rough 2015, Abraxas Petroleum's top executives are taking serious measures to shore up the company's bottom line, including pay cuts and deferred bonuses of over $1 million
Related: Abraxas Chief Slashes Salary
According to a recent filing with the U.S. Securities & Exchange Commission, the leaders of this Eagle Ford producer are taking deep cuts in order to keep the company afloat.
At the end of 2014, CEO, Robert Watson anticipated a tumultuous 2015 and announced he would voluntarily cut his salary by 20 percent due to stressful market conditions. The recent filing confirms that Watson and the other executives all took 20 percent pay cuts.
“Given the currently depressed nature of the oil and gas industry, as well as Abraxas’ 2015 stock price and operational performance, the Compensation Committee deferred its decision on paying 2015 bonuses. At this time the Compensation Committee does not expect that 2015 bonuses will be paid unless industry conditions materially improve.”
For 2015, Abraxas reported the following highlights for its Eagle Ford operations:
- Wells from Atascosa and McMullen Counties produced from 8,000 to 11,000 feet
- Two Eagle Ford wells drilled and completed by the summer of 2015
- Dropped 38 South Texas Eagle Ford proved undeveloped cases from our reserve report due to lack of economic viability at the lower commodity prices. (Approximately 7.8 MMBOE of net reserves
- Average oil production 305,797 (Bbls)
- Average Gas production 325,942 (Mcf)
Abraxas pay cuts