FORT WORTH, Texas--(BUSINESS WIRE)--
Approach Resources Inc. (NASDAQ: AREX) today reported results for
second quarter 2015. Highlights for second quarter 2015 include:
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Record quarterly production of 1,391 MBoe, or 15.3 MBoe/d, an 8%
increase over the prior-year quarter and an 8% increase over first
quarter 2015
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EBITDAX was $32.6 million, or $0.80 per diluted share
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Revenues totaled $38.6 million. Including realized hedge gains,
revenues were $47.9 million
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Per-unit lease operating expense decreased 20% from the prior
year-year quarter, and 10% from first quarter 2015, to $4.97 per Boe
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Per-unit cash operating expenses decreased 26% from the prior-year
quarter, and 11% from first quarter 2015, to $11.02 per Boe
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Adjusted net loss was $2.8 million, or $0.07 per diluted share
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Average IP for wells completed since last update was 869 Boe/d (58%
oil and 81% liquids)
Adjusted net (loss) income, EBITDAX and cash operating expenses are
non-GAAP measures. See “Supplemental Non-GAAP 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, CEO and President, commented, “We
have continued to make great strides in reducing our cost structure. Our
large-scale water recycling center became fully operational and helped
to reduce our lease operating expense by 20% from the prior-year quarter
to below $5.00 per Boe. We recognized double-digit percentage declines
across all of our per-unit cash cost metrics, including corporate
overhead. In addition, our costs for a standard lateral horizontal well
decreased during the quarter to an average of $4.5 million. This quarter
solidifies our position as one of the lowest-cost Permian operators in
the horizontal Wolfcamp play.
“As the outlook for commodity prices remains challenging and uncertain,
we have made a decision to reduce our capital expenditure budget for
2015 from $160 million to $150 million to preserve capital and maintain
flexibility to take advantage of opportunities that this industry
environment may present. We have demonstrated our commitment to capital
discipline in prior price cycles, most recently in 2009. We took the
time to evaluate and discover a new shale play, which is now known as
the Wolfcamp shale play. I believe this price cycle can provide similar
opportunities for Approach to grow and deliver long-term value to our
shareholders.”
Second Quarter 2015 Results
Production for second quarter 2015 totaled 1,391 MBoe (15.3 MBoe/d),
compared to production of 1,286 MBoe (14.1 MBoe/d) in second quarter
2014, an 8% increase. Oil production for the second quarter was 499
MBbls (5.5 MBbls/d). Production for second quarter 2015 was 65% liquids
and 35% natural gas.
Due to sustained, low commodity prices, the Company reported a net loss
for second quarter 2015 of $11.9 million, or $0.29 per diluted share, on
revenues of $38.6 million. This compares to net income for second
quarter 2014 of $3.8 million, or $0.10 per diluted share, on revenues of
$73.4 million. Second quarter 2015 revenues represented a decrease of
47% from the prior-year quarter, but an increase of 16% compared to the
first quarter of 2015. Net income for second quarter 2015 included an
unrealized loss on commodity derivatives of $13.9 million and a realized
gain on commodity derivatives of $9.3 million.
Excluding the unrealized loss on commodity derivatives and related
income taxes, adjusted net loss (non-GAAP) for second quarter 2015 was
$2.8 million, or $0.07 per diluted share, compared to adjusted net
income of $8.7 million, or $0.22 per diluted share, for second quarter
2014. EBITDAX (non-GAAP) for second quarter 2015 was $32.6 million, or
$0.80 per diluted share, compared to $50.6 million, or $1.29 per diluted
share, for second quarter 2014. 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.
Our average realized commodity price for second quarter 2015, before the
effect of commodity derivatives, was $27.76 per Boe. This compares to an
average realized price of $57.06 per Boe in second quarter 2014. Our
average realized price, including the effect of commodity derivatives,
was $34.44 per Boe for second quarter 2015.
Lease operating expense continued to decline, averaging $4.97 per Boe
for second quarter 2015. This represents a 20% decrease from the
prior-year quarter and a 10% decrease from first quarter 2015.
Production and ad valorem taxes averaged $2.14 per Boe, or 7.7% of oil,
NGL and gas sales. Exploration costs were $0.84 per Boe. Cash general
and administrative expense averaged $3.91 per Boe, a 20% decline
compared to the prior-year quarter. Non-cash general and administrative
expense averaged $1.49 per Boe. Depletion, depreciation and amortization
expense averaged $20.43 per Boe, representing an 8% year-over-year
decline. Interest expense totaled $6.2 million.
Operations Update
During second quarter 2015, we drilled nine horizontal wells, completed
10 horizontal wells and had two additional horizontal wells in the final
stages of completion. The average initial production (IP) rate for all
wells completed since our last report was 869 Boe/d (58% oil and 81%
liquids). This includes four longer lateral wells. We continued to
improve our operational efficiency, reducing our drilling time by an
additional 20% compared to a record-setting low average drilling time in
2014. Our spud to total depth (TD) has been reduced to an average of
eight days per well.
In addition, we recycled 1.3 million barrels of flowback and produced
water during the quarter, which not only helped drive down our drilling
and completion costs to $4.5 million per well, but also helped reduce
our LOE cost to below $5.00 per Boe. Since the beginning of our water
recycling program, we have recycled more than 2 million barrels of
flowback and produced water.
Capital expenditures incurred during second quarter 2015 totaled $56.9
million, and included $53.5 million for drilling and completion
activities, and $3.4 million for infrastructure projects, equipment and
land. As planned, our capital spending for 2015 was largely incurred in
the first half of the year. Given the prolonged low commodity price
outlook, we have suspended our drilling and completion activities for
the remainder of the year. Although we experienced three winter storms,
two DCP plant shut-ins and have suspended drilling and completion
activities for the remainder of the year, we still project overall
production growth of approximately 8% for 2015.
Liquidity Update
At June 30, 2015, we had a $1 billion revolving credit facility with
$450 million in lender commitments and $257 million of outstanding
borrowings. At June 30, 2015, our liquidity and long-term
debt-to-capital ratio were approximately $193 million and 40%,
respectively. See “Supplemental Non-GAAP Financial and Other Measures”
below for our definitions and calculation of liquidity and long-term
debt-to-capital ratio.
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.
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Commodity and Period
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Contract Type
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Volume Transacted
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Contract Price
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Crude Oil
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July 2015 – December 2015
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Collar
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1,600 Bbls/d
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$84.00/Bbl - $91.00/Bbl
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July 2015 – December 2015
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Collar
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1,000 Bbls/d
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$90.00/Bbl - $102.50/Bbl
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July 2015 – December 2015
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Three-Way Collar
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500 Bbls/d
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$75.00/Bbl - $84.00/Bbl - $94.00/Bbl
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July 2015 – December 2015
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Three-Way Collar
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500 Bbls/d
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$75.00/Bbl - $84.00/Bbl - $95.00/Bbl
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July 2015 – December 2016
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Swap
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750 Bbls/d
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$62.52/Bbl
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Natural Gas
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July 2015 – December 2015
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Swap
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200,000 MMBtu/month
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$4.10/MMBtu
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July 2015 – December 2015
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Collar
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130,000 MMBtu/month
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$4.00/MMBtu - $4.25/MMBtu
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Guidance Update
The table below sets forth the Company’s updated production and
operating costs and expenses guidance for 2015. The guidance is
forward-looking information that is subject to a number of risks and
uncertainties, many of which are beyond the Company’s control.
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2015 Guidance
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Production:
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Oil (MBbls)
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1,900 – 1,975
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NGLs (MBbls)
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1,575 – 1,625
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Gas (MMcf)
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11,550 – 11,700
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Total (MBoe)
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5,400 – 5,550
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Operating costs and expenses (per Boe):
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Lease operating
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$
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5.50 – 6.50
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Production and ad valorem taxes
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7.5% of oil & gas revenues
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Cash general and administrative
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$
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3.75 – 4.25
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Exploration (non-cash)
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$
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0.50 – 1.00
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Depletion, depreciation and amortization
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$
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20.00 – 22.00
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Capital expenditures (in millions)
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Approximately $150
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Conference Call Information and Summary Presentation
The Company will host a conference call on Thursday, August 6, 2014, at
10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss financial
and operational results for second quarter 2015. The conference call may
be accessed via the Company’s website at www.approachresources.com
or by phone:
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Dial in:
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(877) 201-0168
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Intl. dial in:
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(647) 788-4901
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Passcode:
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Approach / 89055164
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A replay of the call will be available on the Company’s website or by
dialing (855) 859-2056 (passcode: 89055164).
In addition, a second 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.
Forward-Looking and Cautionary Statements
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.
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UNAUDITED RESULTS OF OPERATIONS
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2015
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2014
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2015
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2014
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Revenues (in thousands):
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Oil
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$
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25,627
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$
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51,570
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$
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46,930
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$
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93,315
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NGLs
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5,603
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11,560
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10,755
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21,858
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Gas
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7,375
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10,278
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14,218
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20,162
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Total oil, NGL and gas sales
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38,605
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73,408
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71,903
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135,335
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Realized gain (loss) on commodity derivatives
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9,281
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(3,320
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)
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25,182
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(4,659
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)
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Total oil, NGL and gas sales including derivative impact
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$
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47,886
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$
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70,088
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$
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97,085
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$
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130,676
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Production:
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Oil (MBbls)
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499
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525
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993
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975
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NGLs (MBbls)
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408
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370
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778
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665
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Gas (MMcf)
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2,897
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2,348
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5,436
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4,282
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Total (MBoe)
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1,391
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1,286
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2,677
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2,353
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Total (MBoe/d)
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15.3
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14.1
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14.8
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13.0
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Average prices:
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Oil (per Bbl)
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$
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51.31
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$
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98.28
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$
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47.27
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$
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95.73
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NGLs (per Bbl)
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13.72
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31.21
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13.82
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32.87
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Gas (per Mcf)
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2.55
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4.38
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2.62
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4.71
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Total (per Boe)
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$
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27.76
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$
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57.06
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$
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26.86
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$
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57.51
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Realized gain (loss) on commodity derivatives (per Boe)
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6.68
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(2.58
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)
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9.41
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(1.99
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)
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Total including derivative impact (per Boe)
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$
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34.44
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$
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54.48
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$
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36.27
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$
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55.52
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Costs and expenses (per Boe):
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Lease operating
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$
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4.97
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$
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6.18
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$
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5.25
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$
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6.71
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Production and ad valorem taxes
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2.14
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3.83
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2.17
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3.86
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Exploration
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0.84
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1.53
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0.84
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1.15
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General and administrative(1)
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5.40
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5.75
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5.83
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6.77
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Depletion, depreciation and amortization
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20.43
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22.21
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20.51
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22.17
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(1) Below is a summary of general and administrative expense:
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General and administrative – cash component
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$
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3.91
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$
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4.89
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$
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4.23
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$
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5.17
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General and administrative – noncash component (share-based
compensation)
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1.49
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0.86
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1.60
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1.60
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APPROACH RESOURCES INC. AND SUBSIDIARIES
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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
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(In thousands, except shares and per-share amounts)
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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|
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2015
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2014
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2015
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2014
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REVENUES:
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Oil, NGL and gas sales
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$
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38,605
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$
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73,408
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|
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$
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71,903
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$
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135,335
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EXPENSES:
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Lease operating
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6,917
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7,946
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|
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14,063
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|
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15,797
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Production and ad valorem taxes
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2,974
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4,925
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|
|
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5,802
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9,094
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Exploration
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1,165
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1,966
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2,255
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|
|
|
2,704
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General and administrative
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7,510
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7,402
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15,612
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|
|
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15,937
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Depletion, depreciation and amortization
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28,404
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28,573
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54,924
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52,179
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Total expenses
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46,970
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|
|
50,812
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|
|
92,656
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|
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95,711
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OPERATING (LOSS) INCOME
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|
(8,365
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)
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|
22,596
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|
|
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(20,753
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)
|
|
|
39,624
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|
|
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|
|
|
|
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OTHER:
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Interest expense, net
|
|
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(6,243
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)
|
|
|
(5,357
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)
|
|
|
(12,165
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)
|
|
|
(10,494
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)
|
|
Equity in losses of investee
|
|
?
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|
|
|
(186
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)
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|
?
|
|
|
|
(186
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)
|
|
Realized gain (loss) on commodity derivatives
|
|
|
9,281
|
|
|
|
(3,320
|
)
|
|
|
25,182
|
|
|
|
(4,659
|
)
|
|
Unrealized loss on commodity derivatives
|
|
|
(13,904
|
)
|
|
|
(7,678
|
)
|
|
|
(23,225
|
)
|
|
|
(13,604
|
)
|
|
Other income (expense)
|
|
|
12
|
|
|
|
(109
|
)
|
|
|
38
|
|
|
|
(109
|
)
|
|
|
|
|
|
|
|
|
|
|
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|
(LOSS) INCOME BEFORE INCOME TAX (BENEFIT) PROVISION
|
|
|
(19,219
|
)
|
|
|
5,946
|
|
|
|
(30,923
|
)
|
|
|
10,572
|
|
|
INCOME TAX (BENEFIT) PROVISION:
|
|
|
(7,369
|
)
|
|
|
2,153
|
|
|
|
(11,365
|
)
|
|
|
3,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME
|
|
$
|
(11,850
|
)
|
|
$
|
3,793
|
|
|
$
|
(19,558
|
)
|
|
$
|
6,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.29
|
)
|
|
$
|
0.10
|
|
|
$
|
(0.48
|
)
|
|
$
|
0.17
|
|
|
Diluted
|
|
$
|
(0.29
|
)
|
|
$
|
0.10
|
|
|
$
|
(0.48
|
)
|
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
40,554,758
|
|
|
|
39,368,606
|
|
|
|
40,357,059
|
|
|
|
39,306,296
|
|
|
Diluted
|
|
|
40,554,758
|
|
|
|
39,384,613
|
|
|
|
40,357,059
|
|
|
|
39,322,392
|
|
|
|
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL DATA
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheet Data
|
|
June 30,
|
|
December 31,
|
|
(in thousands)
|
|
|
2015
|
|
|
2014
|
|
Cash and cash equivalents
|
|
$
|
752
|
|
$
|
432
|
|
Other current assets
|
|
|
35,319
|
|
|
60,647
|
|
Property and equipment, net, successful efforts method
|
|
|
1,407,047
|
|
|
1,331,659
|
|
Other assets
|
|
|
10
|
|
|
—
|
|
Total assets
|
|
$
|
1,443,128
|
|
$
|
1,392,738
|
|
Current liabilities
|
|
$
|
67,472
|
|
$
|
106,852
|
|
Long-term debt(1)
|
|
|
499,098
|
|
|
391,311
|
|
Other long-term liabilities
|
|
|
117,597
|
|
|
120,248
|
|
Stockholders’ equity
|
|
|
758,961
|
|
|
774,327
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,443,128
|
|
$
|
1,392,738
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Long-term debt is net of debt issuance costs of $7.9 million and
$8.7 million as of June 30, 2015 and December 31, 2014, respectively.
|
|
|
|
|
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 Financials 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 and six months ended June 30, 2015 and 2014 (in thousands,
except per-share amounts).
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Net (loss) income
|
|
$
|
(11,850
|
)
|
|
$
|
3,793
|
|
|
$
|
(19,558
|
)
|
|
$
|
6,738
|
|
|
Adjustments for certain items:
|
|
|
|
|
|
|
|
|
|
Unrealized loss on commodity derivatives
|
|
|
13,904
|
|
|
|
7,678
|
|
|
|
23,225
|
|
|
|
13,604
|
|
|
Rig termination fee
|
|
|
—
|
|
|
|
—
|
|
|
|
498
|
|
|
|
—
|
|
|
Related income tax effect
|
|
|
(4,866
|
)
|
|
|
(2,780
|
)
|
|
|
(8,303
|
)
|
|
|
(4,934
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net (loss) income
|
|
$
|
(2,812
|
)
|
|
$
|
8,691
|
|
|
$
|
(4,138
|
)
|
|
$
|
15,408
|
|
|
Adjusted net (loss) income per diluted share
|
|
$
|
(0.07
|
)
|
|
$
|
0.22
|
|
|
$
|
(0.10
|
)
|
|
$
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
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 and six months ended
June 30, 2015 and 2014 (in thousands, except per-share amounts).
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
2015
|
|
|
|
2014
|
|
Net (loss) income
|
|
$
|
(11,850
|
)
|
|
$
|
3,793
|
|
$
|
(19,558
|
)
|
|
$
|
6,738
|
|
Exploration
|
|
|
1,165
|
|
|
|
1,966
|
|
|
2,255
|
|
|
|
2,704
|
|
Depletion, depreciation and amortization
|
|
|
28,404
|
|
|
|
28,573
|
|
|
54,924
|
|
|
|
52,179
|
|
Share-based compensation
|
|
|
2,075
|
|
|
|
1,107
|
|
|
4,292
|
|
|
|
3,761
|
|
Unrealized loss on commodity derivatives
|
|
|
13,904
|
|
|
|
7,678
|
|
|
23,225
|
|
|
|
13,604
|
|
Interest expense, net
|
|
|
6,243
|
|
|
|
5,357
|
|
|
12,165
|
|
|
|
10,494
|
|
Income tax (benefit) provision
|
|
|
(7,369
|
)
|
|
|
2,153
|
|
|
(11,365
|
)
|
|
|
3,834
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAX
|
|
$
|
32,572
|
|
|
$
|
50,627
|
|
$
|
65,938
|
|
|
$
|
93,314
|
|
EBITDAX per diluted share
|
|
$
|
0.80
|
|
|
$
|
1.29
|
|
$
|
1.63
|
|
|
$
|
2.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 and six months ended June 30, 2015 and
2014 (in thousands, except per-Boe amounts).
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
|
2015
|
|
|
|
2014
|
|
|
|
2015
|
|
|
|
2014
|
|
|
Operating expenses
|
|
$
|
46,970
|
|
|
$
|
50,812
|
|
|
$
|
92,656
|
|
|
$
|
95,711
|
|
|
Exploration
|
|
|
(1,165
|
)
|
|
|
(1,966
|
)
|
|
|
(2,255
|
)
|
|
|
(2,704
|
)
|
|
Depletion, depreciation and amortization
|
|
|
(28,404
|
)
|
|
|
(28,573
|
)
|
|
|
(54,924
|
)
|
|
|
(52,179
|
)
|
|
Share-based compensation
|
|
|
(2,075
|
)
|
|
|
(1,107
|
)
|
|
|
(4,292
|
)
|
|
|
(3,761
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating expenses
|
|
$
|
15,326
|
|
|
$
|
19,166
|
|
|
$
|
31,185
|
|
|
$
|
37,067
|
|
|
Cash operating expenses per Boe
|
|
$
|
11.02
|
|
|
$
|
14.90
|
|
|
$
|
11.65
|
|
|
$
|
15.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity
Liquidity 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 and posted on our website.
The table below summarizes our liquidity at June 30, 2015 (in thousands).
|
|
|
|
|
|
|
Liquidity at
June 30, 2015
|
|
Lender commitments
|
|
$
|
450,000
|
|
|
Cash and cash equivalents
|
|
|
752
|
|
|
Senior secured credit facility – outstanding borrowings
|
|
|
(257,000
|
)
|
|
Outstanding letters of credit
|
|
|
(325
|
)
|
|
|
|
|
|
Liquidity
|
|
$
|
193,427
|
|
|
|
|
|
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 June
30, 2015, and December 31, 2014 (in thousands).
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
December 31, 2014
|
|
Long-term debt(1)
|
|
$
|
499,098
|
|
|
$
|
391,311
|
|
|
Total stockholders’ equity
|
|
|
758,961
|
|
|
|
774,327
|
|
|
|
|
$
|
1,258,059
|
|
|
$
|
1,165,638
|
|
|
|
|
|
|
|
|
Long-term debt-to-capital
|
|
|
39.7
|
%
|
|
|
33.6
|
%
|
|
|
|
|
|
|
|
(1)
|
|
Long-term debt is net of debt issuance costs of $7.9 million and
$8.7 million as of June 30, 2015 and December 31, 2014, respectively.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150805006438/en/
Source: Approach Resources Inc.