FORT WORTH, Texas--(BUSINESS WIRE)--
Approach Resources Inc. (NASDAQ: AREX) today reported results for
first quarter 2015. Highlights for first quarter 2015 include:
-
Production was 14.3 MBoe/d, a 21% increase over the prior-year quarter
-
EBITDAX was $33.4 million, or $0.83 per diluted share
-
Per unit cash operating expenses decreased 27% from the prior-year
period
-
Adjusted net loss was $1.3 million, or $0.03 per diluted share
-
Average IP for horizontal Wolfcamp wells in first quarter 2015 was 723
Boe/d (56% oil)
-
Lenders reaffirmed credit facility commitment amount of $450 million
effective April 15
Adjusted net (loss) income, EBITDAX and cash operating expenses are
non-GAAP measures. See “Supplemental Non-GAAP Financial and Other Measures”
below for our definitions and reconciliations of adjusted net (loss)
income and EBITDAX to net (loss) income and cash operating expenses to
operating expenses.
Management Comment
J. Ross Craft
, Approach’s Chairman, Chief Executive Officer and
President, commented, “In June of 2014, WTI oil prices peaked at $107.26
per barrel. On November 27, 2014, OPEC, under the guidance of Saudi
Arabia, announced that it would not curtail oil production volumes. Over
the next two months, WTI oil fell from $73.69 per barrel to $44.45 per
barrel in January 2015, a 59% decrease from its high in June 2014. Due
to this free fall in pricing, we elected to suspend our December 2014
completions until we could secure meaningful drilling and completion
cost reductions. In anticipation of back loading first quarter 2015
completions, along with some minor weather-related down time, we guided
the market toward lower production for first quarter 2015 compared to
fourth quarter 2014. During the first quarter 2015, we concentrated our
efforts on identifying and implementing various cost-reduction
initiatives and completing our backlog of uncompleted wells. I am
pleased to report our current well costs have been reduced to
approximately $4.6 million as a result of our water recycling facility
and service cost concessions. In addition, we have reduced lease
operating expense by 25%, cash general and administrative expense by
17%, and depletion, depreciation and amortization expense by 7% on a
year-over-year per Boe basis. We remain on track to achieve our 2015
goals of protecting our balance sheet and exiting this price cycle as a
leaner and more efficient company positioned to capture upside for our
investors as crude oil prices recover.”
First Quarter 2015 Results
Production for first quarter 2015 totaled 1,287 MBoe (14.3 MBoe/d),
compared to 1,067 MBoe (11.9 MBoe/d) in first quarter 2014, a 21%
increase. Due to the planned back loading of completions in first
quarter 2015, reduction in NGL volumes as a result of ethane rejection
at our NGL processing point of sale and minor weather-related issues,
first quarter 2015 production decreased 7%, compared to fourth quarter
2014 production of 1,390 MBoe (15.1 MBoe/d). Oil production for first
quarter 2015 increased 10% to 493 MBbls, compared to 450 MBbls produced
in first quarter 2014. Production for first quarter 2015 was 67% liquids
(38% oil and 29% NGLs) and 33% natural gas.
Net loss for first quarter 2015 was $7.7 million, or $0.19 per diluted
share, on revenues of $33.3 million. This compares to net income for
first quarter 2014 of $2.9 million, or $0.08 per diluted share, on
revenues of $61.9 million. Net income for first quarter 2015 included a
realized gain on commodity derivatives of $15.9 million and an
unrealized loss on commodity derivatives of $9.3 million.
Excluding the unrealized loss on commodity derivatives, rig termination
fee and related income taxes, adjusted net loss (non-GAAP) for first
quarter 2015 was $1.3 million, or $0.03 per diluted share, compared to
adjusted net income of $6.9 million, or $0.17 per diluted share, for
first quarter 2014. EBITDAX (non-GAAP) for first quarter 2015 was $33.4
million, or $0.83 per diluted share, compared to $42.7 million, or $1.09
per diluted share, for first quarter 2014. See “Supplemental Non-GAAP
Financial and Other Measures” below for our reconciliation of adjusted
net (loss) income and EBITDAX to net (loss) income.
Our average realized commodity price for first quarter 2015, before the
effect of commodity derivatives, was $25.87 per Boe. This compares to an
average realized price of $58.04 per Boe in the first quarter of 2014.
Our average realized price, including the effect of commodity
derivatives, was $38.23 per Boe for first quarter 2015.
Lease operating expense (“LOE”) averaged $5.55 per Boe for first quarter
2015. This represents a decrease of $1.81 per Boe or a 25% decrease on a
year-over-year basis. Sequentially, our LOE decreased $1.10 from $6.65
per Boe or 17%. Production and ad valorem taxes averaged $2.20 per Boe,
or 8.5% of oil, NGL and gas sales. Exploration costs were $0.85 per Boe
and includes a rig termination fee of $0.5 million. Cash general and
administrative costs averaged $4.58 per Boe, a 17% decrease compared to
the prior-year quarter. Depletion, depreciation and amortization expense
averaged $20.61 per Boe, a 7% decrease on a year-over-year basis.
Interest expense totaled $5.9 million.
Operations Update
During first quarter 2015, we drilled eight, and completed 13,
horizontal Wolfcamp wells. Seven wells targeted the Wolfcamp B bench and
six wells targeted the Wolfcamp C bench. A total of 11 wells were turned
to sales during the quarter including five located on our University
lease and six located on our Baker lease. Of the wells completed since
our year-end operations update, the average initial 24-hour rate for
wells turned online during first quarter 2015 was 723 Boe/d (56% oil).
At quarter-end, eight wells were waiting on completion.
Costs incurred during first quarter 2015 totaled $74.6 million and
included $68.2 million for drilling and completion activities, $6
million for infrastructure projects and equipment, and $0.4 million for
lease extensions.
Liquidity Update
At March 31, 2015, we had a $1 billion senior secured credit facility in
place, with aggregate lender commitments of $450 million and borrowing
base of $600 million. In April, our lenders reaffirmed the commitment
amount of $450 million, while reducing the borrowing base to $525
million. At March 31, 2015, our liquidity and long-term debt-to-capital
ratio were approximately $240 million and 37.4%, respectively. See
“Supplemental Non-GAAP Financial and Other Measures” below for our
definitions and calculation of liquidity and long-term debt-to-capital.
Commodity Derivatives Update
We enter into commodity derivatives positions to reduce the risk of
commodity price fluctuations. The table below is a summary of our
current derivatives positions.
|
Commodity and Period
|
|
|
Contract Type
|
|
|
Volume Transacted
|
|
|
Contract Price
|
|
Crude Oil
|
|
|
|
|
|
|
|
|
|
|
April 2015 – December 2015
|
|
|
Collar
|
|
|
1,600 Bbls/d
|
|
|
$84.00/Bbl - $91.00/Bbl
|
|
April 2015 – December 2015
|
|
|
Collar
|
|
|
1,000 Bbls/d
|
|
|
$90.00/Bbl - $102.50/Bbl
|
|
April 2015 – December 2015
|
|
|
Three-Way Collar
|
|
|
500 Bbls/d
|
|
|
$75.00/Bbl - $84.00/Bbl - $94.00/Bbl
|
|
April 2015 – December 2015
|
|
|
Three-Way Collar
|
|
|
500 Bbls/d
|
|
|
$75.00/Bbl - $84.00/Bbl - $95.00/Bbl
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
|
|
|
|
|
|
|
|
|
|
|
April 2015 – June 2015
|
|
|
Collar
|
|
|
80,000 MMBtu/month
|
|
|
$4.00/MMBtu - $4.74/MMBtu
|
|
April 2015 – December 2015
|
|
|
Swap
|
|
|
200,000 MMBtu/month
|
|
|
$4.10/MMBtu
|
|
April 2015 – December 2015
|
|
|
Collar
|
|
|
130,000 MMBtu/month
|
|
|
$4.00/MMBtu - $4.25/MMBtu
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information and Summary Presentation
The Company will host a conference call on Thursday, May 7, 2015, at
10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss financial
and operational results for first quarter 2015. The conference call may
be accessed via the Company’s website at www.approachresources.com
or by phone:
Dial in: (877) 201-0168
Intl. dial in: (647) 788-4901
Passcode:
Approach / 19866699
A replay of the call will be available on the Company’s website or by
dialing (855) 859-2056 (passcode: 19866699).
In addition, a first quarter 2015 summary presentation is 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 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 Securities and Exchange
Commission (“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
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Revenues (in thousands):
|
|
|
|
|
|
|
Oil
|
|
|
$
|
21,302
|
|
$
|
41,745
|
|
|
NGLs
|
|
|
|
5,152
|
|
|
10,298
|
|
|
Gas
|
|
|
|
6,844
|
|
|
9,884
|
|
|
Total oil, NGL and gas sales
|
|
|
|
33,298
|
|
|
61,927
|
|
|
|
|
|
|
|
|
|
Realized gain (loss) on commodity derivatives
|
|
|
|
15,901
|
|
|
(1,339
|
)
|
|
Total oil, NGL and gas sales including derivative impact
|
|
|
$
|
49,199
|
|
$
|
60,588
|
|
|
|
|
|
|
|
|
|
Production:
|
|
|
|
|
|
|
Oil (MBbls)
|
|
|
|
493
|
|
|
450
|
|
|
NGLs (MBbls)
|
|
|
|
370
|
|
|
295
|
|
|
Gas (MMcf)
|
|
|
|
2,539
|
|
|
1,934
|
|
|
Total (MBoe)
|
|
|
|
1,287
|
|
|
1,067
|
|
|
Total (MBoe/d)
|
|
|
|
14.3
|
|
|
11.9
|
|
|
|
|
|
|
|
|
|
Average prices:
|
|
|
|
|
|
|
Oil (per Bbl)
|
|
|
$
|
43.17
|
|
$
|
92.77
|
|
|
NGLs (per Bbl)
|
|
|
|
13.92
|
|
|
34.94
|
|
|
Gas (per Mcf)
|
|
|
|
2.70
|
|
|
5.11
|
|
|
Total (per Boe)
|
|
|
|
25.87
|
|
|
58.04
|
|
|
|
|
|
|
|
|
|
Realized gain (loss) on commodity derivatives (per Boe)
|
|
|
|
12.36
|
|
|
(1.26
|
)
|
|
Total including derivative impact (per Boe)
|
|
|
$
|
38.23
|
|
$
|
56.78
|
|
|
|
|
|
|
|
|
|
Costs and expenses (per Boe):
|
|
|
|
|
|
|
Lease operating
|
|
|
$
|
5.55
|
|
$
|
7.36
|
|
|
Production and ad valorem
|
|
|
|
2.20
|
|
|
3.91
|
|
|
Exploration
|
|
|
|
0.85
|
|
|
0.69
|
|
|
General and administrative(1)
|
|
|
|
6.30
|
|
|
8.00
|
|
|
Depletion, depreciation and amortization
|
|
|
|
20.61
|
|
|
22.12
|
|
|
|
|
|
|
|
|
|
(1) Below is a summary of general and administrative expense:
|
|
|
|
|
|
|
General and administrative – cash component
|
|
|
$
|
4.58
|
|
$
|
5.51
|
|
|
General and administrative – noncash component (share-based
compensation)
|
|
|
$
|
1.72
|
|
$
|
2.49
|
|
|
|
|
|
|
|
|
|
|
|
|
APPROACH RESOURCES INC. AND SUBSIDIARIES
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(In thousands, except shares and per-share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
REVENUES:
|
|
|
|
|
|
|
Oil, NGL and gas sales
|
|
|
$
|
33,298
|
|
|
$
|
61,927
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
Lease operating
|
|
|
|
7,146
|
|
|
|
7,851
|
|
|
Production and ad valorem taxes
|
|
|
|
2,828
|
|
|
|
4,169
|
|
|
Exploration
|
|
|
|
1,090
|
|
|
|
738
|
|
|
General and administrative
|
|
|
|
8,102
|
|
|
|
8,535
|
|
|
Depletion, depreciation and amortization
|
|
|
|
26,520
|
|
|
|
23,606
|
|
|
Total expenses
|
|
|
|
45,686
|
|
|
|
44,899
|
|
|
|
|
|
|
|
|
|
OPERATING (LOSS) INCOME
|
|
|
|
(12,388
|
)
|
|
|
17,028
|
|
|
|
|
|
|
|
|
|
OTHER:
|
|
|
|
|
|
|
Interest expense, net
|
|
|
|
(5,922
|
)
|
|
|
(5,137
|
)
|
|
Realized gain (loss) on commodity derivatives
|
|
|
|
15,901
|
|
|
|
(1,339
|
)
|
|
Unrealized loss on commodity derivatives
|
|
|
|
(9,321
|
)
|
|
|
(5,926
|
)
|
|
Other income
|
|
|
|
26
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION
|
|
|
|
(11,704
|
)
|
|
|
4,626
|
|
|
INCOME TAX (BENEFIT) PROVISION
|
|
|
|
(3,996
|
)
|
|
|
1,681
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
|
|
|
$
|
(7,708
|
)
|
|
$
|
2,945
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER SHARE:
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.19
|
)
|
|
$
|
0.08
|
|
|
Diluted
|
|
|
$
|
(0.19
|
)
|
|
$
|
0.08
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
Basic
|
|
|
|
40,157,164
|
|
|
|
39,243,296
|
|
|
Diluted
|
|
|
|
40,157,164
|
|
|
|
39,259,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL DATA
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheet Data
|
|
|
March 31,
|
|
December 31,
|
|
(in thousands)
|
|
|
2015
|
|
2014
|
|
Cash and cash equivalents
|
|
|
$
|
294
|
|
$
|
432
|
|
Other current assets
|
|
|
|
49,704
|
|
|
60,647
|
|
Property and equipment, net, successful efforts method
|
|
|
|
1,379,302
|
|
|
1,331,659
|
|
Other assets
|
|
|
|
8,296
|
|
|
8,689
|
|
Total assets
|
|
|
$
|
1,437,596
|
|
$
|
1,401,427
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
$
|
88,858
|
|
$
|
106,852
|
|
Long-term debt (senior secured credit facility)
|
|
|
|
210,000
|
|
|
150,000
|
|
Long-term debt (7.00% notes due 2021)
|
|
|
|
250,000
|
|
|
250,000
|
|
Other long-term liabilities
|
|
|
|
119,937
|
|
|
120,248
|
|
Stockholders’ equity
|
|
|
|
768,801
|
|
|
774,327
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
1,437,596
|
|
$
|
1,401,427
|
|
|
|
|
|
|
|
|
|
Supplemental Non-GAAP Financial and Other Measures
This release contains certain financial measures that are non-GAAP
measures. We have provided reconciliations below of the non-GAAP
financial measures to the most directly comparable GAAP financial
measures and on the Non-GAAP Financial Information page in the Investor
Relations section of our website at www.approachresources.com.
Adjusted Net (Loss) Income
This release contains the non-GAAP financial measures adjusted net
(loss) income and adjusted net (loss) income per diluted share, which
excludes (1) unrealized loss on commodity derivatives, (2) a rig
termination fee, and (3) related income tax effect. The amounts included
in the calculation of adjusted net (loss) income and adjusted net (loss)
income per diluted share below were computed in accordance with GAAP. We
believe adjusted net (loss) income and adjusted net (loss) income per
diluted share are useful to investors because they provide readers with
a more meaningful measure of our profitability before recording certain
items whose timing or amount cannot be reasonably determined. However,
these measures are 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 and posted on our website.
The table below provides a reconciliation of adjusted net (loss) income
and adjusted net (loss) income per diluted share to net (loss) income
for the three months ended March 31, 2015 and 2014 (in thousands, except
per-share amounts).
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Net (loss) income
|
|
|
$
|
(7,708
|
)
|
|
$
|
2,945
|
|
|
Adjustments for certain items:
|
|
|
|
|
|
|
Unrealized loss on commodity derivatives
|
|
|
|
9,321
|
|
|
|
5,926
|
|
|
Rig termination fee
|
|
|
|
498
|
|
|
|
—
|
|
|
Related income tax effect
|
|
|
|
(3,437
|
)
|
|
|
(2,015
|
)
|
|
|
|
|
|
|
|
|
Adjusted net (loss) income
|
|
|
$
|
(1,326
|
)
|
|
$
|
6,856
|
|
|
Adjusted net (loss) income per diluted share
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
EBITDAX
We define EBITDAX as net (loss) income, plus (1) exploration expense,
(2) depletion, depreciation and amortization expense, (3) share-based
compensation expense, (4) unrealized loss on commodity derivatives, (5)
interest expense, net, and (6) income tax (benefit) provision. EBITDAX
is not a measure of net income or cash flow as determined by GAAP. The
amounts included in the calculation of EBITDAX were computed in
accordance with GAAP. EBITDAX is presented herein and reconciled to the
GAAP measure of net income because of its wide acceptance by the
investment community as a financial indicator of a company's ability to
internally fund development and exploration activities. This measure 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 and posted on our website.
The table below provides a reconciliation of EBITDAX and EBITDAX per
diluted share to net (loss) income for the three months ended March 31,
2015 and 2014 (in thousands, except per-share amounts).
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Net (loss) income
|
|
|
$
|
(7,708
|
)
|
|
$
|
2,945
|
|
Exploration
|
|
|
|
1,090
|
|
|
|
738
|
|
Depletion, depreciation and amortization
|
|
|
|
26,520
|
|
|
|
23,606
|
|
Share-based compensation
|
|
|
|
2,217
|
|
|
|
2,654
|
|
Unrealized loss on commodity derivatives
|
|
|
|
9,321
|
|
|
|
5,926
|
|
Interest expense, net
|
|
|
|
5,922
|
|
|
|
5,137
|
|
Income tax (benefit) provision
|
|
|
|
(3,996
|
)
|
|
|
1,681
|
|
|
|
|
|
|
|
|
EBITDAX
|
|
|
$
|
33,366
|
|
|
$
|
42,687
|
|
EBITDAX per diluted share
|
|
|
$
|
0.83
|
|
|
$
|
1.09
|
|
|
|
|
|
|
|
Cash Operating Expenses
We define cash operating expenses as operating expenses, excluding (1)
exploration expense, (2) depletion, depreciation and amortization
expense, and (3) share-based compensation expense. Cash operating
expenses is not a measure of operating expenses as determined by GAAP.
The amounts included in the calculation of cash operating expenses were
computed in accordance with GAAP. Cash operating expenses is presented
herein and reconciled to the GAAP measure of operating expenses. We use
cash operating expenses as an indicator of the Company’s ability to
manage its operating expenses and cash flows. This measure 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 and posted on our website.
The table below provides a reconciliation of cash operating expenses to
operating expenses for the three months ended March 31, 2015 and 2014
(in thousands, except per-Boe amounts).
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2015
|
|
2014
|
|
Operating expenses
|
|
|
$
|
45,686
|
|
|
$
|
44,899
|
|
|
Exploration
|
|
|
|
(1,090
|
)
|
|
|
(738
|
)
|
|
Depletion, depreciation and amortization
|
|
|
|
(26,520
|
)
|
|
|
(23,606
|
)
|
|
Share-based compensation
|
|
|
|
(2,217
|
)
|
|
|
(2,654
|
)
|
|
|
|
|
|
|
|
|
Cash operating expenses
|
|
|
$
|
15,859
|
|
|
$
|
17,901
|
|
|
Cash operating expenses per Boe
|
|
|
$
|
12.32
|
|
|
$
|
16.78
|
|
|
|
|
|
|
|
|
Liquidity
Liquidity is calculated by adding the net funds available under our
senior secured 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 and posted on our website.
The table below summarizes our liquidity at March 31, 2015 (in
thousands).
|
|
|
|
Liquidity at
|
|
|
|
|
March 31, 2015
|
|
Borrowing base
|
|
|
$
|
450,000
|
|
|
Cash and cash equivalents
|
|
|
|
294
|
|
|
Senior secured credit facility – outstanding borrowings
|
|
|
|
(210,000
|
)
|
|
Outstanding letters of credit
|
|
|
|
(325
|
)
|
|
|
|
|
|
|
Liquidity
|
|
|
$
|
239,969
|
|
|
|
|
|
|
Long-Term Debt-to-Capital
Long-term debt-to-capital ratio is calculated by dividing long-term debt
(GAAP) by the sum of total stockholders’ equity (GAAP) and long-term
debt (GAAP). We use the long-term debt-to-capital ratio as a measurement
of our overall financial leverage. However, this ratio has limitations.
This ratio can vary from year-to-year for the Company and can vary among
companies based on what is or is not included in the ratio on a
company’s financial statements. This ratio 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
and posted on our website.
The table below summarizes our long-term debt-to-capital ratio at March
31, 2015, and December 31, 2014 (in thousands).
|
|
|
|
March 31, 2015
|
|
December 31, 2014
|
|
Long-term debt(1)
|
|
|
$
|
460,000
|
|
|
$
|
400,000
|
|
|
Total stockholders’ equity
|
|
|
|
768,801
|
|
|
|
774,327
|
|
|
|
|
|
$
|
1,228,801
|
|
|
$
|
1,174,327
|
|
|
|
|
|
|
|
|
|
Long-term debt-to-capital
|
|
|
|
37.4
|
%
|
|
|
34.1
|
%
|
(1) Long-term debt at March 31, 2015, is comprised of $250 million in 7%
senior notes and $210 million outstanding under our senior secured
credit facility. Long-term debt at December 31, 2014 is comprised of
$250 million in 7% senior notes and $150 million outstanding under our
senior secured credit facility.
Source: Approach Resources Inc.