Skip to main content 4Q 2012 Results – Approach Resources, Inc. Investor Presentation | Shale Experts
Loading...
Pm

4Q 2012 Results – Approach Resources, Inc.

Approach Resources, Inc. · Feb 22, 2013 · 23 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. 4Q 2012 Results – Approach Resources, Inc. – slide 1
    Approach Resources Inc. FULL YEAR & FOURTH QUARTER 2012 RESULTS FEBRUARY 21, 2013
  2. 4Q 2012 Results – Approach Resources, Inc. – slide 2
    Company Overview AREX OVERVIEW ASSET OVERVIEW Enterprise value 1.1 BN High quality reserve base 95.5 MMBoe proved reserves 99% Permian Basin Permian core operating area 167,000 gross (148,000 net) acres 1+ BnBoe gross, unrisked…
  3. 4Q 2012 Results – Approach Resources, Inc. – slide 3
    2012 Financial Highlights REVENUES, EARNINGS & CASH FLOW Revenues of 128.9 MM in 2012 vs. 108.4 MM in 2011 Net income of 6.4 MM or 0.18 per diluted share Adjusted net income (non-GAAP) of 3.8 MM or 0.11 per diluted share EBITDAX…
  4. 4Q 2012 Results – Approach Resources, Inc. – slide 4
    2012 Highlights Oil-driven reserves growth YE12 proved reserves total 95.5 MMBoe, up 24% over YE11 Oil proved reserves total 37.3 MMBbls, up 106% over YE11 Oil-driven production growth Production totaled 7.9 MBoe/d, up 24% over…
  5. 4Q 2012 Results – Approach Resources, Inc. – slide 5
    Reserve Growth RESERVE GROWTH OIL RESERVE GROWTH Strong HZ Wolfcamp Results; 120 40 Prepare for Large-Scale Development 100 35 30 80 25 Began HZ 60 20 Wolfcamp Pilot Program 40 15 10 Announced 20 Launched Vertical…
  6. 4Q 2012 Results – Approach Resources, Inc. – slide 6
    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 & NGLs…
  7. 4Q 2012 Results – Approach Resources, Inc. – slide 7
    AREX Wolfcamp Oil Shale Resource Play Large, primarily contiguous acreage position Oil-rich, multiple pay zones 167,000 gross (148,000 net) acres Low acreage cost 500 per acre HZ Wolfcamp resource potential up 300%+ 940+ MMBoe…
  8. 4Q 2012 Results – Approach Resources, Inc. – slide 8
    Wolfcamp Oil Shale Play WOLFCAMP SHALE WIDESPREAD, THICK, CONSISTENT & REPEATABLE 9
  9. 4Q 2012 Results – Approach Resources, Inc. – slide 9
    Horizontal Wolfcamp 82% of IP is Oil Sutton Source: Publicly available regulatory filings, company presentations. 10
  10. 4Q 2012 Results – Approach Resources, Inc. – slide 10
    AREX HZ Wolfcamp Activity Reagan Irion U 50 A 603HA Pangea West U 50 A 601HC Crockett Schleicher PW 6533H PW 6507H 18,000 gross acres PW 6601H Pad drilling with A/B and A/C stacked laterals 3-D Seismic acquisition completed.…
  11. 4Q 2012 Results – Approach Resources, Inc. – slide 11
    Horizontal Wolfcamp Well Performance CONTINUED STRONG WELLS RESULTS TRACKING ABOVE THE TYPE CURVE 1,200 B Bench Wells A Bench Wells 1,100 45 A 701H 45 F 2303H PW 6601H 45 D 902H 45 F 2304H PW 6602H 45 C 803H 45 A 703H 1,000 45 B…
  12. 4Q 2012 Results – Approach Resources, Inc. – slide 12
    Wolfcamp Stacked Pay Zones HZ TARGETS & RESOURCE POTENTIAL AREX Baker A 112 LLD OHMM DPHI BVW 0.2 20 200 2,000 0.3 -0.1 0.2 0 GR API MSFL OHMM NPHI Free Hydrocarbon 0 200 0.2 20 200 2,000 0.3 -0.1 0.2 0 HZ WOLFCAMP Wolfcamp…
  13. 4Q 2012 Results – Approach Resources, Inc. – slide 13
    AREX Wolfcamp Targets & Resource Potential 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…
  14. 4Q 2012 Results – Approach Resources, Inc. – slide 14
    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…
  15. 4Q 2012 Results – Approach Resources, Inc. – slide 15
    Financial Information NON-GAAP RECONCILIATIONS
  16. 4Q 2012 Results – Approach Resources, Inc. – slide 16
    2013 Capital Budget 2013 Capital budget 260 MM, approx. 90% for HZ Wolfcamp 3 HZ rigs in the Wolfcamp shale Targeting Wolfcamp A, B and C Testing stacked lateral development concept Targeting 30%+ production growth 2013…
  17. 4Q 2012 Results – Approach Resources, Inc. – slide 17
    2013 Operating and Financial Guidance 2013 GUIDANCE 2013 Guidance Production Total (MBoe) 3,600 3,900 Percent Oil & NGLs 70% Operating costs and expenses (/per Boe) Lease operating 7.00 8.00 Production and ad valorem taxes 3.00…
  18. 4Q 2012 Results – Approach Resources, Inc. – slide 18
    Hedge Position 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 February 2013 December 2013 Collar 1,200 Bbls/d…
  19. 4Q 2012 Results – Approach Resources, Inc. – slide 19
    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 net income and adjusted net income…
  20. 4Q 2012 Results – Approach Resources, Inc. – slide 20
    EBITDAX (unaudited) We define EBITDAX as net income, plus (1) exploration expense, (2) impairment expense, (3) depletion, depreciation and amortization expense, (4) share- based compensation expense, (5) unrealized (gain) loss on…
  21. 4Q 2012 Results – Approach Resources, Inc. – slide 21
    Liquidity Liquidity (unaudited) is calculated by adding the net funds available under our revolving credit facility and cash and cash equivalents. We use liquidity as an indicator of the Companys ability to fund development and…
  22. 4Q 2012 Results – Approach Resources, Inc. – slide 22
    F&D Costs Reconciliation (unaudited) We believe that providing measures of finding and development, or F&D, cost is 2012 Reserve summary (MBoe) useful to assist an evaluation of how much it costs the Company, on a per Boe basis, to add…
  23. 4Q 2012 Results – Approach Resources, Inc. – slide 23
    Contact Information MEGAN P. HAYS Manager, 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