Approach Resources Inc. Reports Fourth Quarter and Full-Year 2017 Financial and Operating Results and Provides 2018 Outlook
FORT WORTH, Texas–(BUSINESS WIRE)–#approachresources–Approach Resources Inc. (NASDAQ: AREX) today reported financial
and operational results for the fourth quarter and full-year 2017 and
estimated year-end 2017 proved reserves.
Fourth Quarter 2017 Highlights
- Fourth quarter production of 1,064 MBoe or 11.6 MBoe/d
-
Closed bolt-on acquisition increasing our contiguous acreage position
by approximately 39,000 net acres and proved developed reserves of 1.6
MMBoe -
Extended term on revolving credit facility to May 7, 2020, and
reaffirmed $325 million borrowing base -
Net income was $45.8 million, or $0.51 per diluted share. Adjusted net
loss (non-GAAP) was $6.1 million, or $0.07 per diluted share - EBITDAX (non-GAAP) of $13.9 million
- Revenues of $28.4 million, an 11% increase over the prior quarter
-
Unhedged cash margin (non-GAAP) of $15.76 per Boe, a 17% increase over
the prior quarter
Full-Year 2017 Highlights
-
Full year production of 4,232 MBoe or 11.6 MBoe/d, above the midpoint
of annual guidance -
Year-end 2017 proved reserves 181.5 MMBoe, an increase of 16% over the
prior year - Type curve updated to 700 MBoe EUR, an increase of 37%
-
Strengthened balance sheet and reduced the outstanding principal of
our long-term debt by $127.1 million -
Increased operating cash flow by $11.4 million or 44% over the prior
year -
7% decrease in lease operating expense (“LOE”) over the prior year,
delivering record low annual LOE of $4.23 per Boe -
Drilled 13 and completed nine horizontal Wolfcamp wells during the
year with an inventory of 10 drilled and uncompleted wells at year-end - Reserve replacement ratio of 748%
-
Net loss was $112.4 million, or $1.35 per diluted share. Adjusted net
loss (non-GAAP) was $29.8 million, or $0.36 per diluted share - EBITDAX (non-GAAP) of $54.8 million, a 5% increase over the prior year
Adjusted net loss, EBITDAX and unhedged cash margin are non-GAAP
measures. See “Supplemental Non-GAAP Financial and Other Measures” below
for our definitions and reconciliations of adjusted net loss and EBITDAX
to net income (loss) and unhedged cash margin to revenues.
Management Comment
Ross Craft, Approach’s Chairman and CEO, commented, “In the face of
continued volatile commodity prices, in 2017 we delivered a third
consecutive year of fiscal discipline, optimizing returns and providing
steady production output. Our continued emphasis on cost control and
operating efficiency delivered industry-leading LOE, a record low on a
per Boe basis, despite double-digit service cost escalation across the
Permian Basin. Even with weather-related operational restrictions during
the year, we delivered solid production, above the midpoint of annual
guidance. We also successfully completed a strategic exchange and
follow-on exchange of senior notes for equity and closed the Pangea West
bolt-on acquisition, adding production and HBP acreage in the highest
oil concentration of our core position. With 186 horizontal Wolfcamp
wells on line at year-end, we continue to demonstrate the resilience of
our asset, its suitability for manufacturing-style development and the
proficiency of our team as we exploit science and technique to increase
well recoveries and manage natural production decline.
“We enter 2018 with our strategic objectives unchanged: deliver a
focused, disciplined capital program designed to maximize asset value,
maintain our industry-leading cost structure and seek synergistic
acquisition opportunities that will strengthen the balance sheet and are
accretive to per share metrics. By remaining focused on our plan, we
believe we are well positioned to create value for our shareholders.”
Fourth Quarter 2017 Results
Production for fourth quarter 2017 totaled 1,064 MBoe (11.6 MBoe/d),
made up of 25% oil, 36% NGLs and 39% natural gas. Average realized
commodity prices for fourth quarter 2017, before the effect of commodity
derivatives, were $52.09 per Bbl of oil, $22.61 per Bbl of NGLs and
$2.32 per Mcf of natural gas. Our average realized price, including the
effect of commodity derivatives, was $24.01 per Boe for fourth quarter
2017.
Net income for fourth quarter 2017 was $45.8 million, or $0.51 per
diluted share, on revenues of $28.4 million. Net income for fourth
quarter 2017 included an income tax benefit of $51.9 million related to
the reduction in our deferred tax liabilities resulting from the Tax
Cuts and Jobs Act and an increase in the fair value of our commodity
derivatives of $1.4 million. Excluding these items, adjusted net loss
(non-GAAP) for fourth quarter 2017 was $6.1 million, or $0.07 per
diluted share. EBITDAX (non-GAAP) for fourth quarter 2017 was $13.9
million. See “Supplemental Non-GAAP Financial and Other Measures” below
for our reconciliation of adjusted net loss and EBITDAX to net income.
LOE averaged $4.77 per Boe. Production and ad valorem taxes averaged
$2.09 per Boe, or 7.8% of oil, NGLs and gas sales. Exploration costs
were $0.38 per Boe. Total general and administrative (“G&A”) costs
averaged $5.16 per Boe, including cash G&A costs of $4.09 per Boe.
Depletion, depreciation and amortization expense averaged $15.20 per
Boe. Interest expense totaled $5.4 million.
Full-Year 2017 Results
Production for 2017 was 4,232 MBoe (11.6 MBoe/d), made up of 26% oil,
35% NGLs and 39% natural gas. Average realized commodity prices for
2017, before the effect of commodity derivatives, were $47.63 per Bbl of
oil, $18.64 per Bbl of NGLs and $2.53 per Mcf of natural gas. Our
average realized price, including the effect of commodity derivatives,
was $23.86 per Boe for 2017.
Net loss for 2017 was $112.4 million, or $1.35 per diluted share, on
revenues of $105.3 million. Net loss for 2017 included a write-off of
$139.1 million of deferred tax assets in connection with the completed
debt for equity exchange transactions, an income tax benefit of $51.9
million related to the reduction in our deferred tax liabilities
resulting from the Tax Cuts and Jobs Act, a gain on debt extinguishment
of $5.1 million and an increase in the fair value of our commodity
derivative of $4.1 million. Excluding these items, adjusted net loss
(non-GAAP) for 2017 was $29.8 million, or $0.36 per diluted share.
EBITDAX (non-GAAP) for 2017 was $54.8 million. See “Supplemental
Non-GAAP Financial and Other Measures” below for our reconciliation of
adjusted net loss and EBITDAX to net loss.
LOE averaged an annual record low of $4.23 per Boe. Production and ad
valorem taxes averaged $2.04 per Boe, or 8.2% of oil, NGLs and gas
sales. Exploration costs were $0.86 per Boe. Total G&A costs averaged
$5.75 per Boe, including cash G&A costs of $4.65 per Boe. Depletion,
depreciation and amortization expense averaged $16.66 per Boe. Interest
expense totaled $21.1 million.
Operations Update
During the fourth quarter of 2017 we drilled one horizontal Wolfcamp
well to the A Bench in Pangea West. Currently, the well is in flowback.
In total, we completed four wells in the first quarter of 2018 using our
Generation X frac design and are very encouraged by the early results of
the wells. We hope to have additional information to report in our next
operations update.
In 2017, we focused on operating substantially within cash flow and
increasing activity in a disciplined manner in conjunction with slowly
recovering commodity prices. We maintained focus on managing natural
production decline through surface facility optimization, operating
efficiencies and investment in well repairs, workovers and maintenance.
During 2017, we drilled 13 horizontal Wolfcamp wells. Of these, three
wells were drilled to the A bench, five wells were drilled to the B
bench and five wells were drilled to the C bench. We completed nine
horizontal Wolfcamp wells. Of these, one well was completed in the A
bench, five wells were completed in the B bench and three wells were
completed in the C bench. The nine completed wells are tracking at or
above our 700 MBoe type curve, wells normalized for a 7,500 foot lateral
length. At December 31, 2017, we had 10 horizontal wells waiting on
completion.
Our extensive infrastructure network of centralized production
facilities, water transportation, handling and recycling system, gas
lift lines and salt water disposal wells continue to provide sustainable
competitive advantages and environmentally responsible facility
operations. In 2017, by reducing resource consumption, improving
operating practices and minimizing ground transportation we were able to
maintain our industry leading LOE per Boe at $4.23.
Innovation Drives Value
Our focus on driving value through a combination of innovation and
efficiency is evidenced in our GenX frac design, which balances EUR
improvement with cost control. The GenX frac design, first used in 2015,
has delivered significant well performance improvement in our horizontal
Wolfcamp wells while maintaining a competitive drilling cost. As a
result, Approach raised its type curve to an EUR of 700 MBoe to reflect
the improved productivity, an increase of 37%.
Fourth Quarter and Full-Year 2017 Production
Fourth quarter 2017 production totaled 1,064 MBoe (11.6 MBoe/d).
Full-year 2017 production totaled 4,232 MBoe (11.6 MBoe/d).
Three and 12 Months Ended | ||
December 31, 2017 | ||
Three | ||
months | 12 months | |
Production: | ||
Oil (MBbls) | 270 | 1,107 |
NGLs (MBbls) | 377 | 1,486 |
Gas (MMcf) | 2,498 | 9,829 |
Total (MBoe) | 1,064 | 4,232 |
Total (Mboe/d) | 11.6 | 11.6 |
2017 Estimated Proved Reserves and Costs Incurred
Year-end 2017 proved reserves totaled 181.5 MMBoe. Year-end 2017 proved
reserves were 28% oil, 32% NGLs and 40% natural gas. Proved developed
reserves represent approximately 37% of total year-end 2017 proved
reserves.
At December 31, 2017, substantially all of our proved reserves were
located in our core operating area in the southern Midland Basin.
Year-end 2017 estimated proved reserves included 170.2 MMBoe
attributable to the horizontal Wolfcamp shale play.
The table below illustrates our horizontal Wolfcamp and other reserves
over the last three years ended December 31, 2017, 2016, and 2015.
Years Ended December 31, | ||||||
2017 | 2016 | 2015 | ||||
Horizontal Wolfcamp | ||||||
Proved developed | 55,032 | 47,861 | 49,843 | |||
Proved undeveloped | 115,146 | 97,502 | 104,790 | |||
Total | 170,178 | 145,363 | 154,633 | |||
Percent of total proved reserves | 94 | % | 93 | % | 93 | % |
Other Vertical | ||||||
Proved developed | 11,368 | 11,014 | 12,013 | |||
Percent of total proved reserves | 6 | % | 7 | % | 7 | % |
Total proved reserves | 181,546 | 156,377 | 166,646 | |||
Extensions and discoveries for 2017 were 33.3 MMBoe, primarily
attributable to our development project in the Wolfcamp shale oil
resource play in the Permian Basin. During 2017, we acquired 1.6 MMBoe
of proved reserves through the bolt-on acquisition, and we reclassified
17.7 MMBoe of proved undeveloped reserves to unproved reserves. The
reserves reclassified are attributable to horizontal well locations in
Project Pangea that are no longer expected to be developed within five
years from their initial booking, as required by SEC rules. Revisions
included an increase of 9.4 MMBoe resulting from updated well
performance and technical parameters, and an increase of 3.1 MMBoe due
to higher commodity prices.
The following table summarizes the changes in our estimated proved
reserves during 2017.
Oil | NGLs | Natural Gas | Total | |||||
(MBbls) | (MBbls) | (MMcf) | (MBoe) | |||||
Balance — December 31, 2016 | 50,031 | 47,634 | 352,277 | 156,377 | ||||
Extensions and discoveries | 10,546 | 9,975 | 76,709 | 33,307 | ||||
Acquisition of minerals in place | 710 | 394 | 2,808 | 1,572 | ||||
Production(1) | (1,107 | ) | (1,486 | ) | (11,148 | ) | (4,452 | ) |
Revisions to previous estimates | (10,120 | ) | 1,431 | 20,582 | (5,259 | ) | ||
Balance — December 31, 2017 | 50,060 | 57,948 | 441,228 | 181,545 | ||||
Reserve replacement ratio | ||||||||
Extensions and discoveries / Production | 748 | % | ||||||
(1) Production includes 1,319 MMcf related to field fuel. |
||||||||
Our preliminary, unaudited estimate of the standardized after-tax
measure of discounted future net cash flows (“standardized measure”) of
our proved reserves at December 31, 2017, was $460.8 million. The PV-10
(non-GAAP), or pre-tax present value of our proved reserves discounted
at 10%, of our proved reserves at December 31, 2017, was $521 million
($582.2 million at December 31, 2017, NYMEX strip).
The independent engineering firm DeGolyer and MacNaughton prepared our
estimates of year-end 2017 proved reserves and PV-10 at SEC pricing.
PV-10 is a non-GAAP measure. See “Supplemental Non-GAAP Financial and
Other Measures” below for our definition of PV-10 and reconciliation to
the standardized measure (GAAP). Our reserve estimates and our
calculation of standardized measure and PV-10 are based on the 12-month
average of the first-day-of-the-month pricing of $51.34 per Bbl of oil,
$18.67 per Bbl of NGLs and $2.99 per MMBtu of natural gas during 2017.
At NYMEX strip pricing at December 31, 2017, PV-10 is $582.2 million.
The following table summarizes the NYMEX strip prices at December 31,
2017.
2018 | 2019 | 2020 | 2021 | 2022(1) | ||||||
Oil (per Bbl) | $ | 59.55 | $ | 56.19 | $ | 53.76 | $ | 52.29 | $ | 51.67 |
Natural gas (per MMBtu) | $ | 2.84 | $ | 2.81 | $ | 2.82 | $ | 2.85 | $ | 2.89 |
(1) Subsequent year prices were held flat for the remaining lives of the properties. |
||||||||||
(2) NGLs prices per Bbl were estimated at 40% of the oil strip price. | ||||||||||
Capital Expenditures
Fourth quarter capital expenditures were $1.3 million. Net capital
expenditures incurred during 2017 totaled $47.1 million and were
attributable to drilling and development ($44.2 million), infrastructure
projects and equipment ($3.6 million) and acreage extensions ($0.2
million), partially offset by a sales tax refund of $0.9 million.
Liquidity Update
At December 31, 2017, we had a $1 billion senior secured revolving
credit facility in place with a borrowing base of $325 million, and
liquidity of $33.7 million. See “Supplemental Non-GAAP Financial and
Other Measures” below for our definition and calculation of liquidity.
Commodity Derivatives Update
We enter into commodity derivatives positions to reduce the risk of
commodity price fluctuations. At present, approximately 52% of 2018
forecasted oil, 55% of 2018 forecasted natural gas and 50% of NGL
production is hedged. The table below is a summary of our current
derivatives positions.
Contract | |||
Commodity and Period | Type | Volume Transacted | Contract Price |
Crude Oil | |||
January 2018 — December 2018 | Swap | 300 Bbls/day | $50.00/Bbl |
January 2018 — March 2018 | Collar | 1,000 Bbls/day | $50.00/Bbl – $55.05/Bbl |
January 2018 — June 2018 | Collar | 500 Bbls/day | $55.00/Bbl – $60.00/Bbl |
January 2018 — September 2018 | Swap | 700 Bbls/day | $60.50/Bbl |
April 2018 — September 2018 | Swap | 800 Bbls/day | $60.50/Bbl |
Natural Gas | |||
January 2018 — December 2018 | Swap | 200,000 MMBtu/month | $3.085/MMBtu |
January 2018 — December 2018 | Swap | 250,000 MMBtu/month | $3.084/MMBtu |
NGLs (C2 – Ethane) | |||
February 2018 — December 2018 | Swap | 1,000 Bbls/day | $11.424/Bbl |
NGLs (C3 – Propane) | |||
January 2018 — March 2018 | Swap | 450 Bbls/day | $30.24/Bbl |
February 2018 — December 2018 | Swap | 600 Bbls/day | $32.991/Bbl |
NGLs (IC4 – Isobutane) | |||
January 2018 — March 2018 | Swap | 50 Bbls/day | $36.12/Bbl |
February 2018 — December 2018 | Swap | 50 Bbls/day | $38.262/Bbl |
NGLs (NC4 – Butane) | |||
January 2018 — March 2018 | Swap | 150 Bbls/day | $35.70/Bbl |
February 2018 — December 2018 | Swap | 200 Bbls/day | $38.22/Bbl |
NGLs (C5 – Pentane) | |||
January 2018 — December 2018 | Swap | 200 Bbls/day | $56.364/Bbl |
Guidance
The Company’s capital budget for 2018 is a range of $50 million to $70
million, depending on commodity prices. The table below sets forth our
production and operating costs and expenses guidance for 2018.
2018 Guidance | |
Capital Expenditures (in millions) | $50 − $70 |
Production: | |
Oil (MBbls) | 1,150 − 1,250 |
NGLs (MBbls) | 1,450 − 1,550 |
Gas (MMcf) | 9,600 − 10,200 |
Total (MBoe) | 4,200 − 4,500 |
Cash operating costs (per Boe): | |
Lease operating | $4.50 − 5.50 |
Production and ad valorem taxes | 8.25% of oil and gas revenues |
Cash general and administrative | $4.50 − 5.50 |
Non-cash operating costs (per Boe): | |
Non-cash general and administrative | $0.50 − 1.00 |
Exploration | $0.50 − 1.00 |
Depletion, depreciation and amortization | $16.00 − 17.00 |
First quarter 2018 production is estimated to be approximately 11.3
MBoe/d. First quarter 2018 production will be affected by no new well
completions in the fourth quarter of 2017 and weather.
As further discussed below under “Forward-Looking and Cautionary
Statements,” our guidance is forward-looking information that is subject
to a number of risks and uncertainties, many of which are beyond our
control. In addition, our 2018 capital budget excludes acquisitions and
lease extensions and renewals and is subject to change depending upon a
number of factors, including prevailing and anticipated prices for oil,
NGLs and natural gas, results of horizontal drilling and completions,
economic and industry conditions at the time of drilling, the
availability of sufficient capital resources for drilling prospects, our
financial results and the availability of lease extensions and renewals
on reasonable terms.
Conference Call Information and Summary Presentation
The Company will host a conference call on Friday, March 9, 2018, at
10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss fourth
quarter and full-year 2017 financial and operational results. Those
wishing to listen to the conference call, may do so by visiting the
Events page under the Investor Relations section of the Company’s
website, www.approachresources.com,
or by phone:
Dial in: | (844) 884-9950 / Conference ID: 4883409 |
International Dial In: | (661) 378-9660 |
A replay of the call will be available on the Company’s website or by dialing: |
|
Dial in: | (855) 859-2056 / Passcode: 4883409 |
In addition, a fourth quarter and full-year 2017 summary presentation
will be available on the Company’s website.
About Approach Resources
Approach Resources Inc. is an independent energy company focused
on the exploration, development, production and acquisition of
unconventional oil and natural gas reserves in the Midland Basin of the
greater Permian Basin in West Texas. For more information about the
Company, please visit www.approachresources.com.
Please note that the Company routinely posts important information about
the Company under the Investor Relations section of its website.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical facts, included in this press release that
address activities, events or developments that the Company expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Without limiting the generality of the
foregoing, forward-looking statements contained in this press release
specifically include expectations of anticipated financial and operating
results. These statements are based on certain assumptions made
by the Company based on management’s experience, perception of
historical trends and technical analyses, current conditions,
anticipated future developments and other factors believed to be
appropriate and reasonable by management. When used in this press
release, the words “will,” “potential,” “believe,” “estimate,” “intend,”
“expect,” “may,” “should,” “anticipate,” “could,” “plan,” “predict,”
“project,” “profile,” “model” or their negatives, other similar
expressions or the statements that include those words, are intended to
identify forward-looking statements, although not all forward-looking
statements contain such identifying words. Such statements are subject
to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results to
differ materially from those implied or expressed by the forward-looking
statements. Further information on such assumptions, risks and
uncertainties is available in the Company’s SEC filings. The
Company’s SEC filings are available on the Company’s website at www.approachresources.com.
Any forward-looking statement speaks only as of the date on which
such statement is made and the Company undertakes no obligation to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise, except as required by
applicable law.
UNAUDITED RESULTS OF OPERATIONS |
||||||||
Three Months Ended | Twelve Months Ended | |||||||
December 31, | December 31, | |||||||
2017 | 2016 | 2017 | 2016 | |||||
Revenues (in thousands): | ||||||||
Oil | $ | 14,082 | $ | 14,007 | $ | 52,748 | $ | 48,311 |
NGLs | 8,530 | 5,798 | 27,702 | 19,761 | ||||
Gas | 5,805 | 6,700 | 24,899 | 22,230 | ||||
Total oil, NGLs and gas sales | 28,417 | 26,505 | 105,349 | 90,302 | ||||
Net cash (payment) receipt on derivative settlements | (2,878 | ) | 442 | (4,359 | ) | 6,132 | ||
Total oil, NGLs and gas sales including derivative impact |
$ | 25,539 | $ | 26,947 | $ | 100,990 | $ | 96,434 |
Production: | ||||||||
Oil (MBbls) | 270 | 304 | 1,107 | 1,275 | ||||
NGLs (MBbls) | 377 | 380 | 1,486 | 1,529 | ||||
Gas (MMcf) | 2,498 | 2,530 | 9,829 | 10,404 | ||||
Total (MBoe) | 1,064 | 1,106 | 4,232 | 4,537 | ||||
Total (MBoe/d) | 11.6 | 12.0 | 11.6 | 12.4 | ||||
Average prices: | ||||||||
Oil (per Bbl) | $ | 52.09 | $ | 46.02 | $ | 47.63 | $ | 37.90 |
NGLs (per Bbl) | 22.61 | 15.25 | 18.64 | 12.93 | ||||
Gas (per Mcf) | 2.32 | 2.65 | 2.53 | 2.14 | ||||
Total (per Boe) | $ | 26.71 | $ | 23.96 | $ | 24.89 | $ | 19.90 |
Net cash (payment) receipt on derivative settlements (per Boe) | (2.70 | ) | 0.40 | (1.03 | ) | 1.35 | ||
Total including derivative impact (per Boe) | $ | 24.01 | $ | 24.36 | $ | 23.86 | $ | 21.25 |
Costs and expenses (per Boe): | ||||||||
Lease operating | $ | 4.77 | $ | 3.40 | $ | 4.23 | $ | 4.24 |
Production and ad valorem taxes | 2.09 | 2.43 | 2.04 | 1.81 | ||||
Exploration | 0.38 | 0.62 | 0.86 | 0.86 | ||||
General and administrative (1) | 5.16 | 6.35 | 5.75 | 5.45 | ||||
Depletion, depreciation and amortization | 15.20 | 17.54 | 16.66 | 17.42 | ||||
(1) Below is a summary of general and administrative expense: | ||||||||
General and administrative – cash component | $ | 4.09 | $ | 4.55 | $ | 4.65 | $ | 4.07 |
General and administrative – noncash component (share-based compensation) |
1.07 | 1.80 | 1.10 | 1.38 |
APPROACH RESOURCES INC. AND SUBSIDIARIES | |||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(In thousands, except shares and per-share amounts) | |||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||
December 31, | December 31, | ||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||
REVENUES: | |||||||||||
Oil, NGLs and gas sales | $ | 28,417 | $ | 26,505 | $ | 105,349 | $ | 90,302 | |||
EXPENSES: | |||||||||||
Lease operating | 5,076 | 3,766 | 17,902 | 19,250 | |||||||
Production and ad valorem taxes | 2,219 | 2,685 | 8,644 | 8,217 | |||||||
Exploration | 406 | 685 | 3,657 | 3,923 | |||||||
General and administrative | 5,491 | 7,026 | 24,333 | 24,734 | |||||||
Depletion, depreciation and amortization | 16,173 | 19,402 | 70,521 | 79,044 | |||||||
Total expenses | 29,365 | 33,564 | 125,057 | 135,168 | |||||||
OPERATING LOSS | (948 | ) | (7,059 | ) | (19,708 | ) | (44,866 | ) | |||
OTHER: | |||||||||||
Interest expense, net | (5,370 | ) | (7,086 | ) | (21,053 | ) | (27,259 | ) | |||
Gain on debt extinguishment | — | — | 5,053 | — | |||||||
Write-off of debt issuance costs | — | — | — | (563 | ) | ||||||
Commodity derivative (loss) gain | (1,377 | ) | (2,901 | ) | (262 | ) | (5,484 | ) | |||
Other income | — | — | 32 | 1,511 | |||||||
LOSS BEFORE INCOME TAX (BENEFIT) PROVISION |
(7,695 | ) | (17,046 | ) | (35,938 | ) | (76,661 | ) | |||
INCOME TAX (BENEFIT) PROVISION: |
|||||||||||
Current | — | — | (66 | ) | — | ||||||
Deferred | (53,512 | ) | (3,571 | ) | 76,487 | (24,418 | ) | ||||
NET INCOME (LOSS) | $ | 45,817 | $ | (13,475 | ) | $ | (112,359 | ) | $ | (52,243 | ) |
EARNINGS (LOSS) PER SHARE: | |||||||||||
Basic | $ | 0.51 | $ | (0.32 | ) | $ | (1.35 | ) | $ | (1.26 | ) |
Diluted | $ | 0.51 | $ | (0.32 | ) | $ | (1.35 | ) | $ | (1.26 | ) |
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||
Basic | 90,114,659 | 41,705,462 | 83,404,104 | 41,488,206 | |||||||
Diluted | 90,114,659 | 41,705,462 | 83,404,104 | 41,488,206 |
UNAUDITED SELECTED FINANCIAL DATA |
||||
Unaudited Consolidated Balance Sheet Data | December 31, | |||
(in thousands) | 2017 | 2016 | ||
Cash and cash equivalents | $ | 21 | $ | 21 |
Other current assets | 16,679 | 12,473 | ||
Property and equipment, net, successful efforts method | 1,082,876 | 1,092,061 | ||
Total assets | $ | 1,099,576 | $ | 1,104,555 |
Current liabilities | $ | 25,067 | $ | 26,369 |
Long-term debt (1) | 373,460 | 498,349 | ||
Deferred income taxes | 82,102 | 5,615 | ||
Other long-term liabilities | 11,531 | 11,270 | ||
Stockholders' equity | 607,416 | 562,952 | ||
Total liabilities and stockholders' equity | $ | 1,099,576 | $ | 1,104,555 |
Contacts
Approach Resources Inc.
Suzanne Ogle, 817-989-9000
Vice
President – Investor Relations & Corporate Communications
[email protected]