Skip to main content Goldman Sachs Global Energy Conference – Approach Resources, Inc. Investor Presentation | Shale Experts
Loading...
Pm

Goldman Sachs Global Energy Conference – Approach Resources, Inc.

Approach Resources, Inc. · Jan 31, 2014 · 21 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. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 1
    Approach Resources Inc. GOLDMAN SACHS GLOBAL ENERGY CONFERENCE JANUARY 2014
  2. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 2
    Company Overview AREX OVERVIEW ASSET OVERVIEW Enterprise value 982 MM High quality reserve base 95.5 MMBoe proved reserves 99% Permian Basin Permian core operating area 166,000 gross (149,000 net) acres 1+ BnBoe gross, unrisked…
  3. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 3
    Strong Track Record of Reserve Growth RESERVE GROWTH OIL RESERVE GROWTH Strong HZ Wolfcamp Results; 120 Prepare for Large-Scale 40 Development 35 100 30 80 25 Began HZ 60 Wolfcamp Pilot 20 Program 15 40 10 Announced…
  4. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 4
    and Production Growth PRODUCTION GROWTH OIL PRODUCTION GROWTH 9.0 1200 8.0 1000 7.0 6.0 800 5.0 600 4.0 3.0 400 2.0 200 1.0 0.0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2009 2010 2011 2012 Natural Gas (MBoe/d) Oil…
  5. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 5
    Key Investment Highlights Low-Risk, Oil-Rich Asset Base Oil and liquids-weighted asset base in Midland Basin 166,000 gross (149,000 net) primarily contiguous acres Proved reserves are 69% liquids; 3Q13 production is 69% liquids (39%…
  6. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 6
    AREX Wolfcamp Shale Oil Resource Play PERMIAN CORE OPERATING AREA Large, primarily contiguous acreage position Oil-rich, multiple pay zones 166,000 gross (149,000 net) acres Low acreage cost 500 per acre 940+ MMBoe gross, unrisked HZ…
  7. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 7
    AREX HZ Wolfcamp Activity Reagan Irion U 50 A 603HA PANGEA WEST PW 6533H PW 6507H 19,000 gross acres Crockett Schleicher PW 6601H Pad drilling with A/B and A/C stacked wellbores 45 D 905H 45 D 923H 45 D 919H 45 D 927H 45 D 907H…
  8. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 8
    HZ Wolfcamp Well Performance CONTINUED STRONG WELL RESULTS & MORE PRODUCTION HISTORY 1,200 Legend 1,100 B Bench Well Data (33 wells) 41 producing wells with at least A Bench Well Data (8 wells) 3 months of production history Daily…
  9. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 9
    AREX HZ Wolfcamp Economics Horizontal BTAX IRR SENSITIVITIES Play Type Wolfcamp 80 70 Avg. EUR (gross) 450 MBoe 60 50 IRR (%) Targeted Well Cost 5.5 MM 40 30 Potential Locations 2,096 20 Gross Resource 10 940+ MMBoe 0…
  10. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 10
    HZ Well Costs Down & Efficiencies Up HZ WELL COSTS (MM) 7.5 6.7 Below Average Quarterly Well 6.2 6.1 5.5 MM 5.75 6.0 5.4 Target HZ Cost (MM) D&C Cost 4.5 3.0 1.5 - 3Q12 4Q12 1Q13 2Q13 3Q13 DRILLING DAYS TO TD 20…
  11. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 11
    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 to 5.5 MM and lower Reducing LOE Minimizing…
  12. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 12
    Infrastructure & Equipment Projects PROJECTS BENEFITS Securing water supply Facilitate large-scale field development Testing non-potable water and Reduce fresh water use and water costs recycling flowback water Expected savings from…
  13. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 13
    Creating Value Through Growth Concentrated geographic footprint in the Midland Basin Strong growth track record at competitive costs Detailed technical evaluation led to discovery of growth potential in the Wolfcamp oil shale…
  14. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 14
    Financial Information NON-GAAP RECONCILIATIONS
  15. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 15
    Oil & Liquids-Weighted Reserves, Production & Revenue YE12 RESERVE MIX BY COMMODITY 3Q13 PRODUCTION MIX BY COMMODITY 31% 31% 39% 39% 95.5 8.8 MMBoe MBoe/d 30% 30% Oil NGLs Gas Oil NGLs Gas 3Q13 REVENUE MIX BY COMMODITY…
  16. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 16
    Oil Pipeline Monetization TRANSACTION OVERVIEW WILDCAT OIL PIPELINE SYSTEM First-mover oil pipeline system in the southern Reagan Irion Midland Basin Formed Wildcat JV to develop pipeline system in September 2012 50-miles of…
  17. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 17
    Production and Expense Guidance 2013 GUIDANCE Full-Year 2013 Guidance Production Total (MBoe) 3,400 Percent Oil & NGLs 70% Operating costs and expenses (/per Boe) Lease operating 5.00 7.00 Production and ad valorem taxes 3.00…
  18. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 18
    Strong, Simple Balance Sheet As of 9/30/2013 As of (Including Borrowing Base FINANCIAL RESULTS (MM) 9/30/2013 Increase & JV Pipeline Sale) Summary Balance Sheet Cash 25.5 127.2 Credit Facility Senior Notes 250.0 250.0 Total…
  19. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 19
    Current Hedge Position Commodity and Time Period Type Volume Price Crude Oil 2013 Collar 650 Bbls/d 90.00/Bbl - 105.80/Bbl 2013 Collar 450 Bbls/d 90.00/Bbl - 101.45/Bbl 2013 (1) Collar 1,200 Bbls/d 90.35/Bbl - 100.35/Bbl 2014…
  20. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 20
    EBITDAX (unaudited) We define EBITDAX as net income (loss), plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) share-based compensation expense, (4) unrealized loss on commodity derivatives, (5)…
  21. Goldman Sachs Global Energy Conference – Approach Resources, Inc. – slide 21
    Contact Information MEGAN P. HAYS Director, Investor Relations & Corporate Communications 817.989.9000 x2108 mhaysapproachresources.com www.approachresources.com

From the store

Browse maps, data & reports in the Shale Experts store