FORT WORTH, Texas--(BUSINESS WIRE)--
Approach Resources Inc. (NASDAQ: AREX) today announced that it
has completed the scheduled semiannual borrowing base redetermination of
its revolving credit facility, and as a result, the bank group has set
the lender commitment amount and borrowing base at $450 million. Under
the terms of the credit agreement, the bank group redetermines the
borrowing base semiannually using the banks’ estimates of reserves and
future oil and gas prices. The next borrowing base redetermination is
scheduled to occur by April 1, 2016. At September 24, 2015, Approach had
$276 million outstanding under its revolving credit facility, resulting
in liquidity of $177 million.
Sergei Krylov, Approach's Executive Vice President and Chief Financial
Officer, commented, "Despite significant volatility in commodity prices,
we’ve been able to maintain our credit facility commitments unchanged
for the past 17 months. This most recent reaffirmation of lender
commitments at $450 million is a testament to the continued productivity
improvements and cost reduction initiatives that have been the focus of
the entire Approach team. We appreciate the support from our banking
group and look forward to working with them on our future growth
initiatives."
About Approach Resources
Approach Resources Inc. is an independent energy company focused
on the exploration, development, production and acquisition of
unconventional oil and 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.
Supplemental Non-GAAP Financial and Other Measures
Liquidity
Liquidity (non-GAAP) 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 Company’s ability to fund
development and exploration activities. However, this measurement has
limitations. This measurement can vary from year-to-year for the Company
and can vary among companies based on what is or is not included in the
measurement on a company’s financial statements. This measurement is
provided in addition to, and not as an alternative for, and should be
read in conjunction with, the information contained in our financial
statements prepared in accordance with GAAP (including the notes),
included in our SEC filings.
The table below summarizes our liquidity at September 24, 2015 (in
thousands).
|
|
|
Liquidity at
September 24, 2015
|
|
Borrowing base
|
|
|
$
|
450,000
|
|
|
Cash and cash equivalents
|
|
|
|
3,276
|
|
|
Senior secured credit facility – outstanding borrowings
|
|
|
|
(276,000
|
)
|
|
Outstanding letters of credit
|
|
|
|
(325
|
)
|
|
|
|
|
|
Liquidity
|
|
|
$
|
176,951
|
|
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Source: Approach Resources Inc.