Company overview AREX OVERVIEW ASSET OVERVIEW Enterprise value 1.1 BN High-quality reserve base 115 MMBoe proved reserves 1.1 BN proved PV-10 99% Permian Basin Permian core operating area 162,000 gross (144,000 net) acres 1+…
1Q14 Key highlights 1Q14 HIGHLIGHTS 1Q14 SUMMARY RESULTS Drilled 16 HZ wells and completed 19 HZ Production (MBoe/d) 11.9 wells % Oil 42% % Total liquids 70% De-risked stacked wellbore development Average realized price (/Boe)…
1Q14 Operating highlights OPERATING HIGHLIGHTS Drilled 16 HZ wells and completed 19 HZ wells Accelerating Wolfcamp A 1 well, Wolfcamp B 13 wells and Wolfcamp C 5 wells Development Total production 11.9 MBoe/d (up 42% YoY) 1Q14…
AREX Wolfcamp activity STRATIGRAPHIC UNIT Reagan Irion Clearfork/Spraberry PANGEA WEST Crockett Schleicher Dean 1Q14 Activity included: Stacked A/C completion A Wolfcamp B NORTH & CENTRAL C PANGEA 1Q14 Activity included:…
Efficiency-driven transition to two-bench pad development TRANSITION FROM SINGLE-BENCH TO TWO-BENCH DEVELOPMENT 2011 2013: SINGLE-BENCH CURRENT: TWO-BENCH DEVELOPMENT DEVELOPMENT Map view Reduces time between spud to…
AREX HZ Wolfcamp Well Performance AREX HZ WOLFCAMP (BOE/D) 800 Production Data from 700 AREX C Bench Wells (4) Production Data from 600 AREX A Bench Wells (8) 500 Production Data from Daily Production (Boe including…
1Q14 Financial highlights FINANCIAL HIGHLIGHTS Revenues of 61.9 MM (up 71% YoY) Increasing Net income of 2.9 MM, or 0.08 per diluted share Revenues Adjusted net income (non-GAAP) of 6.7 MM, or 0.17 per diluted share Record…
Strong, simple balance sheet As of March 31, 2014 (Pro forma for As of Borrowing Base FINANCIAL RESULTS (MM) March 31, 2014 Increase) Summary Balance Sheet Cash and Cash Equivalents 4.3 Restricted Cash 7.4 Credit Facility…
Current hedge position Commodity & Period Contract Type Volume Contract Price Crude Oil April 2014 December 2014 Collar 550 Bbls/d 90.00/Bbl - 105.50/Bbl April 2014 December 2014 Collar 950 Bbls/d 85.05/Bbl - 95.05/Bbl April 2014…
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AREX Wolfcamp shale oil resource play PERMIAN CORE OPERATING AREA Large, primarily contiguous acreage position Oil-rich, multiple pay zones 162,000 gross (144,000 net) acres Low acreage cost 500 per acre 1BnBoe gross, unrisked HZ…
AREX HZ Wolfcamp economics Horizontal BTAX IRR SENSITIVITIES Play Type Wolfcamp 80 70 Avg. EUR (gross) 450 MBoe 60 Targeted Well Cost 5.5 MM 50 IRR (%) 40 Potential Locations 2,000 30 20 Gross Resource 1 Bn 10…
Infrastructure for large-scale development Reagan Irion Pangea Crockett Schleicher West 50-Mile Oil Pipeline 100,000 Bbls/d Capacity North & Central Pangea Reducing D&C cost South Reducing LOE Pangea Increasing project…
Key field infrastructure & equipment systems INFRASTRUCTURE BENEFITS Non-potable water source wells Facilitate large-scale field development Water recycling systems Reduce fresh water use and water costs Safely and securely…
Production and expense guidance 2014 Guidance Production Total (MBoe) 4,790 Percent oil 43% - 46% Percent total liquids 71% - 74% Operating costs and expenses (per Boe) Lease operating 5.00 - 6.00 Production and ad valorem…
Adjusted net income (unaudited) ADJUSTED NET INCOME (UNAUDITED) The amounts included in the calculation of adjusted net income and adjusted net income per diluted share below were computed in accordance with GAAP. We believe adjusted…
EBITDAX (unaudited) EBITDAX (UNAUDITED) The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is not a measure of net income or cash flow as determined by GAAP. EBITDAX is presented herein and…
PV-10 (unaudited) PV-10 (UNAUDITED) The present value of our proved reserves, discounted at 10% (PV-10), was estimated at 1.1 billion at December 31, 2013, and was calculated based on the first-of-the-month, twelve-month average prices…
Contact information MEGAN P. HAYS Director, Investor Relations & Corporate Communications 817.989.9000 mhaysapproachresources.com www.approachresources.com
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