Skip to main content 3Q 2015 Results – Approach Resources, Inc. Investor Presentation | Shale Experts
Loading...
Database
Slide Database

3Q 2015 Results – Approach Resources, Inc.

Approach Resources, Inc. · Nov 4, 2015 · 17 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 3Q 2015 Results – Approach Resources, Inc. – slide 1
    Third Quarter 2015 Results NOVEMBER 4, 2015
  2. 3Q 2015 Results – Approach Resources, Inc. – slide 2
    Company overview AREX OVERVIEW ASSET OVERVIEW Enterprise value 630MM High-quality reserve base 146 MMBoe proved reserves 66% Liquids, 38% oil 1.4 BN proved PV-10 Permian core operating area 142,000 gross (130,000 net) acres 1+…
  3. 3Q 2015 Results – Approach Resources, Inc. – slide 3
    3Q15 Key highlights 3Q15 HIGHLIGHTS 3Q15 SUMMARY RESULTS Drilled 4 and completed 5 HZ wells Production (MBoe/d) 16.6 % Oil 32% Continued improvement on already best- % Total liquids 64% in-class cost structure Average realized price…
  4. 3Q 2015 Results – Approach Resources, Inc. – slide 4
    3Q15 Operating highlights OPERATING HIGHLIGHTS Delivering Record total quarterly production of 16.6 MBoe/d (up 10% QoQ) Production Quarterly oil production of 5.3 MBbl/d Growth LOE of 5.04/Boe, improved 14% YoY Implemented…
  5. 3Q 2015 Results – Approach Resources, Inc. – slide 5
    3Q15 Financial highlights FINANCIAL HIGHLIGHTS Revenues (pre-hedge) of 33.9 MM, 46.7 MM with hedges Continued Focus Adjusted net loss (non-GAAP) of 5.9 MM, or 0.14 per diluted share on Cutting Costs Every per-unit cash cost metric…
  6. 3Q 2015 Results – Approach Resources, Inc. – slide 6
    Lowest cost structure in the Permian Basin AREX LOE Historical Track Record (/Boe) Permian Peer LOE (/Boe) 8.00 14.0 7.36 13.02 7.00 6.65 12.0 6.18 5.87 6.00 5.55 10.0 9.12 4.97 5.04 8.90 5.00 8.12 8.0 7.59 7.51 7.30 6.90 6.84…
  7. 3Q 2015 Results – Approach Resources, Inc. – slide 7
    Established infrastructure in place is critical to low cost structure Reagan Irion Pangea Crockett Schleicher West Recently completed water recycling facility 329,000 Bbl Capacity North & Central Pangea South Benefits of…
  8. 3Q 2015 Results – Approach Resources, Inc. – slide 8
    Strong, simple balance sheet Following the Fall 2015 redetermination, we had a 1 AREX Liquidity and Capitalization billion senior secured revolving credit facility in place, with AREX Capitalization as of 9/30/2015 ( MM) aggregate…
  9. 3Q 2015 Results – Approach Resources, Inc. – slide 9
    D&C Cost reductions will significantly improve profitability 90% 3.5MM D&C 80% 4.0MM D&C 70% 4.5MM D&C 60% 50% IRR (%) 40% 30% 20% 10% 0% 40 50 60 70 80 90 Realized Oil Price (/Bbl) Note: HZ…
  10. 3Q 2015 Results – Approach Resources, Inc. – slide 10
    Current hedge position Based on the midpoint of current 2015 guidance, approximately 88% of forecasted 4Q15 oil production and 34% of forecasted natural gas production are hedged at weighted average floor prices of 74.78/Bbl and…
  11. 3Q 2015 Results – Approach Resources, Inc. – slide 11
    Production and expense guidance 2015 Guidance Production Oil (MBbls) 1,900 1,975 NGLs (MBbls) 1,575 1,625 Natural Gas (MMcf) 11,550 11,700 Total (MBoe) 5,400 5,550 Operating costs and expenses (per Boe) Lease operating 5.50 -…
  12. 3Q 2015 Results – Approach Resources, Inc. – slide 12
    Appendix
  13. 3Q 2015 Results – Approach Resources, Inc. – slide 13
    Adjusted net (loss) income (unaudited) ADJUSTED NET (LOSS) INCOME (UNAUDITED) The amounts included in the calculation of adjusted net (loss) income and adjusted net (loss) income per diluted share below were computed in accordance with…
  14. 3Q 2015 Results – Approach Resources, Inc. – slide 14
    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…
  15. 3Q 2015 Results – Approach Resources, Inc. – slide 15
    Cash operating expenses Cash operating expenses We define cash operating expenses as operating expenses, excluding (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) share-based compensation expense, (4)…
  16. 3Q 2015 Results – Approach Resources, Inc. – slide 16
    F&D costs (unaudited) All-in finding and development (F&D) costs are calculated by dividing the sum of F&D Cost reconciliation property acquisition costs, exploration costs and development costs for the year by the sum of reserve…
  17. 3Q 2015 Results – Approach Resources, Inc. – slide 17
    PV-10 (unaudited) The present value of our proved reserves, discounted at 10% (PV-10), was estimated at 1.4 billion at December 31, 2014, and was calculated based on the first-of-the-month, twelve-month average prices for oil, NGLs and…

From the store

Browse maps, data & reports in the Shale Experts store