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The report throws light on the stock market performance of Abraxas Petroleum Corporation with respect to the commodity prices. The stock behaviour is studied over the 3 years taking into account the price of the shares. The price of shares and that of the commodities bear an interesting relation which is depicted in this report considering the performance of Abraxas Petroleum Corporation. The company specialises in producing natural gas and crude oil and also, involves exploitation of the technologies which will bring them easy access to the commodities that they are specialised in. The commodities include crude oil and natural gas which are the most precious and expensive resources in today’s’ world. Thus, the relation between the price of the shares and the commodity prices is a good research topic in today’s world. During the period of 2011, the commodity prices and the stock prices were moving in the same upward direction. There are various economic reasons which can describe the relation between the two. After understanding the relation between the commodity and stock price, further predictions or assumptions can be made for the future. Thus, it is important to draw out the relation between the commodity prices and the stock prices of the Abraxas. The report depicts the relation between the crude oil prices or the commodity prices and the stock prices of Abraxas Petroleum Corporation. The study indicates the fact that the stock prices of the company has encountered a downward trend during an increase in the oil price in United States. The historical relation (i.e. the stock price decrease with the increase in commodity price and vice versa) holds true in this case. Introduction Abraxas Petroleum Corporation belongs to the independent gas and oil industry which engages itself in exploitation, acquisition, production and development of crude and natural gas in Canada and United States. The company is based in San Antonio, Texas. It had become a public limited company in 1991. The shares of the company are traded in NASDAQ Stock Exchange under the symbol of “AXAS” (“Profile”). The options of the company are traded on Chicago Board Options Exchange (CBOE) and Pacific Exchange (PCX). It concentrates on increasing the shareholder’s value and also, maintains the financial liquidity and flexibility at the same time. The company has the opinion that growth is achieved through drill-bit (“Balance Sheet”). It has acquired several legacy assets over the years and has made huge contribution stated below: • Safeguarding the interest of owners • Controlling the operational and infrastructural works • High production capacity from each well • Acquiring larger areas for exploitation • Improving the company’s expertise level by recuperating the horizontal drilling The company not only concentrates on adding its asset base, but focuses on acquiring leases that would fit strategically in the current portfolio. Abraxas have targeted the conventional reservoirs and emerging resources that play an important role in the primary areas in, Permian Basin, Powder River Basin, Eagle Ford Shale/Gulf Coast, Williston Basin and Canada (“Company Profile”).

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