Skip to main content BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. Investor Presentation | Shale Experts
Loading...
Pm

BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc.

Approach Resources, Inc. · Nov 13, 2012 · 24 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. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 1
    INVESTOR PRESENTATION BANK OF AMERICA MERRILL LYNCH 2012 GLOBAL ENERGY CONFERENCE NOVEMBER 13, 2012
  2. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 2
    Company Overview AREX OVERVIEW ASSET OVERVIEW Enterprise value 1.2 BN High quality reserve base 83.7 MMBoe proved reserves, 37% PD 99% Permian Basin Permian core operating area 167,000 gross (148,000 net) acres 500+ MMBoe…
  3. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 3
    Key Investor Highlights STRENGTHS HIGHLIGHTS Concentrated geographic footprint in the southern Midland Basin Oil-Focused, Pure- 148,000 net, primarily contiguous acres, 100% operated Play 64% of proved reserves are oil and NGLs…
  4. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 4
    Track Record of Reserve and Production Growth RESERVE GROWTH PRODUCTION GROWTH 90 8.0 80 7.0 70 6.0 60 5.0 50 4.0 40 3.0 30 2.0 20 10 1.0 0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 MY'12 2004 2005 2006 2007 2008 2009 2010…
  5. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 5
    Extensive Inventory of Future Drilling Locations POTENTIAL DRILLING LOCATIONS 440 2,955 190 1,825 500 Horizontal Wolfcamp Vertical Wolffork Vertical Wolffork Vertical Canyon Wolffork Total Gross Locations Recompletion…
  6. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 6
    2012 & 2013 Capital Programs 2012 PROGRAM OVERVIEW 2013 PROGRAM OVERVIEW Horizontal Wolfcamp Horizontal Wolfcamp 2 horizontal rigs 3 horizontal rigs to drill 35 to 40 wells Beginning development program of B zone Vertical Clearfork &…
  7. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 7
    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…
  8. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 8
    Infrastructure Projects Gathering Lines & Facilities New Line Existing Line Building new gathering lines New lines to transport AREX gas to DCP Gas Line Market gas/NGLs to DCP Improved economics Increased capacity 9
  9. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 9
    AREX Wolfcamp Oil Shale Resource Play Large, primarily contiguous acreage position Liquids-rich, multiple pay zones 167,000 gross (148,000 net) acres Low acreage cost 500 per acre 500+ MMBoe gross, unrisked resource potential…
  10. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 10
    AREX Wolfcamp Play Favorably Located in the S. Midland Basin Wolfcamp Oil Shale Resource Play 11
  11. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 11
    Wolfcamp Oil Shale Play Widespread, Thick, Consistent & Repeatable 12
  12. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 12
    Horizontal Wolfcamp Targets POTENTIAL HORIZONTAL WOLFCAMP TARGETS STRATIGRAPHIC SYSTEM UNIT Clearfork/Spraberry WOLFCAMP A Pilot Permian Dean Wolfcamp Transitioning to Canyon WOLFCAMP B Development Pennsylvanian Strawn…
  13. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 13
    Horizontal Wolfcamp Play - 82% of IP is Oil Sutton Source: Publicly available regulatory filings, company presentations. 14
  14. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 14
    AREX Wolfcamp Play Activity Map Reagan Irion Pangea West Crockett Schleicher 18,000 gross acres 2 HZ pilot wells with encouraging results 3-D Seismic data acquisition underway Targeting HZ pilot well in early 2013 Interpreting…
  15. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 15
    Horizontal Wolfcamp Type Curve B Bench Wells A Bench Wells 45 A 701H 45 F 2303H PW 6601H 45 D 905H 45 F 2304H PW 6602H 45 C 803H 45 A 703H 45 B 2401H 45 B 2403H Legend 45 E 1101H 45 B 2402H 45 F 2301H CT J 1003H B Bench well…
  16. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 16
    Horizontal Wolfcamp Economics Horizontal BTAX IRR SENSITIVITIES Play Type Wolfcamp 80 70 Avg. EUR 450 MBoe 60 50 IRR (%) Targeted Well Cost 5.5 MM 40 30 Potential Locations 500 20 Gross Resource 10 225 MMBoe 0…
  17. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 17
    Clearfork & Wolfcamp (Wolffork) Economics Vertical Vertical Wolffork Play Type Play Type Wolffork Recompletion Avg. EUR 110 MBoe Avg. EUR 93 MBoe Targeted Well Cost 1.2 MM Targeted Well Cost 0.75 MM Potential Locations 1,825…
  18. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 18
    AREX Drilling Targets & Resource Potential Horizontal Vertical Vertical Wolffork Vertical Canyon PLAY TYPE Wolfcamp Wolffork Recompletion Wolffork EUR (MBoe) 450 110 93 193 Targeted well cost (MM) 5.5 1.2 0.75 1.5 Potential…
  19. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 19
    Creating Value Through Growth Concentrated geographic footprint in the southern Midland Basin Strong growth track record at competitive costs Detailed technical evaluation led to discovery of significant growth potential in the…
  20. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 20
    Financial Framework NON-GAAP RECONCILIATIONS
  21. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 21
    2012 Operating and Financial Guidance 2012 GUIDANCE 2012 Guidance Production Total (MBoe) 2,800 - 3,000 Percent Oil & NGLs 65% Operating costs and expenses (/per Boe) Lease operating 6.50 7.50 Severance and production taxes…
  22. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 22
    Hedge Position CURRENT HEDGE POSITION Commodity and Time Period Type Volume Price Crude Oil 2012 Collar 700 Bbls/d 85.00/Bbl - 97.50/Bbl 2012 Collar 500 Bbls/d 90.00/Bbl - 106.10/Bbl September 2012 December 2012 Collar 350 Bbls/d…
  23. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 23
    Financial Strength 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…
  24. BAML 2012 GLOBAL ENERGY CONFERENCE – Approach Resources, Inc. – slide 24
    Contact Information MEGAN P. HAYS Manager, Investor Relations & Corporate Communications 817.989.9000 x 2108 mhaysapproachresources.com www.approachresources.com

From the store

Browse maps, data & reports in the Shale Experts store