FORT WORTH, Texas--(BUSINESS WIRE)--
Approach Resources Inc. (NASDAQ: AREX) today reported results for
second quarter 2016. Highlights for second quarter 2016 include:
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Average initial production (IP) for two wells completed late second
quarter was 861 Boe/d (59% oil and 82% liquids), or 987 Boe/d when
normalized to a 7,500’ lateral
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Production was 12.6 MBoe/d, exceeding prior guidance for the quarter
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Record low lease operating expense (LOE) of $4.56 per Boe since we
began horizontal Wolfcamp development
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Net loss was $16.0 million, or $0.39 per diluted share, and adjusted
net loss (non-GAAP) was $10.4 million, or $0.25 per diluted share
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Revenues totaled $22.4 million, EBITDAX (non-GAAP) was $13.7 million
Adjusted net loss and EBITDAX 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
loss.
Management Comment
Ross Craft, Approach’s Chairman and CEO, commented, “In August 2015, we
took the proactive step to suspend all drilling and completion activity
as commodity prices continued a precipitous decline to decade-plus lows.
As you may recall, Approach is in a unique position in that most of our
core Wolfcamp acreage is held by production, and therefore maintenance
capital requirements are very low when compared to other Permian Basin
operators. From August 2015 through May 2016, we did not bring any new
wells on-line, and during those nine months our production has been on a
normal, forecasted decline.
“Beginning in late February 2016, we observed a noticeable flattening of
the PDP decline rate. Production for the second quarter averaged 12.6
Mboe/d, representing a decline of only 1.5% from the previous quarter.
The shallower decline rates are driven by natural gas and NGLs
performing above projections. In late 2Q16, we completed two horizontal
wells in the Baker area (B&C bench completions) utilizing our 2015
enhanced completion design. The average IP rate for the two wells was
861 Boe/d (59% oil and 82% liquids), with an average 30-day IP rate of
603 Boe/d (51% oil and 82% liquids). We believe early indications from
these wells continue to support a 633 MBoe EUR, similar to our 3Q15
wells.
“Equally important to generating improved returns is our continued focus
on efficiencies and operating cost reductions, as shown by our record
low quarterly LOE of $4.56 per Boe. Our two wells completed during the
quarter were in line with our current estimated well cost of $3.7
million, the Company’s lowest ever horizontal well cost. We expect these
promising early well results and further cost reductions will help the
Company deliver competitive rates of return on investment as the pace of
development begins to accelerate. Additionally, due to our balanced
production mix of oil, NGLs and natural gas, pricing improvement in any
of the three commodity streams has a positive impact on the Company’s
profitability.”
Second Quarter 2016 Results
Production for second quarter 2016 totaled 1,148 MBoe (12.6 MBoe/d),
made up of 28% oil, 34% NGLs and 38% natural gas. Average realized
commodity prices for second quarter 2016, before the effect of commodity
derivatives, were $39.84 per Bbl of oil, $14.00 per Bbl of NGLs and
$1.66 per Mcf of natural gas. Our average realized price, including the
effect of commodity derivatives, was $20.76 per Boe for second quarter
2016 ($40.54 per Bbl of oil, $14.00 per Bbl of NGLs and $2.10 per Mcf of
natural gas).
Net loss for second quarter 2016 was $16.0 million, or $0.39 per diluted
share, on revenues of $22.4 million. Net loss for second quarter 2016
included an unrealized loss on commodity derivatives of $8.1 million, a
realized gain on commodity derivatives of $1.4 million and a write-off
of debt issuance costs of $0.6 million. Excluding the unrealized loss on
commodity derivatives and write-off of debt issuance costs, adjusted net
loss (non-GAAP) for second quarter 2016 was $10.4 million, or $0.25 per
diluted share. EBITDAX (non-GAAP) for second quarter 2016 was $13.7
million. See “Supplemental Non-GAAP Financial and Other Measures” below
for our reconciliation of adjusted net loss and EBITDAX to net loss.
LOE averaged $4.56 per Boe. Production and ad valorem taxes averaged
$1.62 per Boe, or 8.3% of oil, NGL and gas sales. Exploration costs were
$1.41 per Boe. Total general and administrative (G&A) costs averaged
$5.08 per Boe, including cash G&A costs of $3.88 per Boe. Depletion,
depreciation and amortization expense averaged $17.41 per Boe. Interest
expense totaled $6.8 million.
Operations Update
During second quarter 2016, we completed two horizontal wells, one well
in the Wolfcamp B bench and one well in the Wolfcamp C bench. The
average IP rate was 861 Boe/d (59% oil and 82% liquids) with an average
completed lateral length of 6,541 feet. At June 30, 2016, we had seven
horizontal wells waiting on completion.
Capital expenditures incurred during second quarter 2016 totaled $6.9
million and included $5.4 million for completion activities and $1.5
million for infrastructure projects and equipment. We plan to complete
three wells in third quarter 2016, and expect third quarter production
to average around 11.9 MBoe/d. Third quarter production guidance
includes the effect of two days of partial production shut-ins for DCP
plant maintenance during the month of July and anticipated production
downtime for shut-ins of nine producing wells to perform planned third
quarter completions.
Liquidity Update
At June 30, 2016, we had a $1 billion revolving credit facility in
place, with a borrowing base and lender commitment amount of $325
million. Our liquidity and long-term debt-to-capital ratio were
approximately $50.6 million and 46.2%, 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.
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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 2016 – 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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July 2016 – September 2016
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Swap
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750 Bbls/d
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$43.00/Bbl
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Natural Gas
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July 2016 – March 2017
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Swap
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400,000 MMBtu/month
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$2.45/MMBtu
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July 2016 – December 2016
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Swap
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200,000 MMBtu/month
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$2.93/MMBtu
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November 2016 – March 2017
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Swap
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200,000 MMBtu/month
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$3.29/MMBtu
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April 2017 – December 2017
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Collar
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200,000 MMBtu/month
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$2.30/MMBtu - $2.60/MMBtu
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Conference Call Information and Summary Presentation
The Company will host a conference call on Thursday, August 4, 2016, at
10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss second
quarter 2016 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: (877) 201-0168
Intl. dial in: (647) 788-4901
Passcode:
Approach/49459145
A replay of the call will be available on the Company’s website or by
dialing:
Dial in: (855) 859-2056
Passcode: 49459145
In addition, a second quarter 2016 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 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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2016
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2015
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2016
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2015
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Revenues (in thousands):
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Oil
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$
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12,556
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$
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25,627
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$
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22,243
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$
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46,930
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NGLs
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5,497
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5,603
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8,721
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10,755
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Gas
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4,380
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7,375
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9,084
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14,218
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Total oil, NGL and gas sales
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22,433
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38,605
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40,048
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71,903
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Realized gain on commodity derivatives
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1,409
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9,281
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4,909
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25,182
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Total oil, NGL and gas sales including derivative impact
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$
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23,842
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$
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47,886
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$
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44,957
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$
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97,085
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Production:
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Oil (MBbls)
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315
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499
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673
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993
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NGLs (MBbls)
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392
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408
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755
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778
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Gas (MMcf)
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2,644
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2,897
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5,317
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5,436
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Total (MBoe)
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1,148
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1,391
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2,314
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2,677
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Total (MBoe/d)
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12.6
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15.3
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12.7
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14.8
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Average prices:
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Oil (per Bbl)
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$
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39.84
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$
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51.31
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$
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33.07
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$
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47.27
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NGLs (per Bbl)
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14.00
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13.72
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11.55
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13.82
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Gas (per Mcf)
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1.66
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2.55
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1.71
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2.62
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Total (per Boe)
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$
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19.53
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$
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27.76
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$
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17.31
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$
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26.86
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Realized gain on commodity derivatives (per Boe)
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1.23
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6.68
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2.12
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9.41
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Total including derivative impact (per Boe)
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$
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20.76
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$
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34.44
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$
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19.43
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$
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36.27
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Costs and expenses (per Boe):
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Lease operating
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$
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4.56
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$
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4.97
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$
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5.01
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$
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5.25
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Production and ad valorem taxes
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1.62
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2.14
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1.52
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2.17
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Exploration
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1.41
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0.84
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0.95
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0.84
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General and administrative(1)
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5.08
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5.40
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5.14
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5.83
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Depletion, depreciation and amortization
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17.41
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20.43
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17.38
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20.51
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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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3.88
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$
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3.91
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$
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3.88
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$
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4.23
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General and administrative – noncash component (share-based
compensation)
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1.20
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1.49
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1.26
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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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2016
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2015
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2016
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2015
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REVENUES:
|
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|
|
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Oil, NGL and gas sales
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$
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22,433
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|
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$
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38,605
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$
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40,048
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$
|
71,903
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EXPENSES:
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Lease operating
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5,234
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|
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6,917
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|
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11,590
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|
|
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|
14,063
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Production and ad valorem taxes
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1,855
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|
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2,974
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|
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3,519
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|
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5,802
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Exploration
|
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1,622
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|
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1,165
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|
|
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2,191
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|
|
|
|
2,255
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General and administrative
|
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|
5,832
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|
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7,510
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|
|
|
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11,883
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|
|
|
|
15,612
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Depletion, depreciation and amortization
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19,991
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28,404
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|
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|
|
40,220
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|
|
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54,924
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Total expenses
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34,534
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|
46,970
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69,403
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92,656
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OPERATING LOSS
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(12,101
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)
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(8,365
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)
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(29,355
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)
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(20,753
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)
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OTHER:
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Interest expense, net
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(6,808
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)
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(6,243
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)
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(13,106
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)
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(12,165
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)
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Write-off of debt issuance costs
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(563
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)
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?
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(563
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)
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?
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Realized gain on commodity derivatives
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1,409
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|
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|
9,281
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|
|
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|
4,909
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|
|
|
|
25,182
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|
|
Unrealized loss on commodity derivatives
|
|
|
|
(8,076
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)
|
|
|
|
(13,904
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)
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|
|
|
(9,033
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)
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|
|
|
(23,225
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)
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Other income
|
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|
|
1,417
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|
|
|
|
12
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|
|
|
|
1,521
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|
|
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|
38
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LOSS BEFORE INCOME TAX BENEFIT
|
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|
(24,722
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)
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|
|
(19,219
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)
|
|
|
|
(45,627
|
)
|
|
|
|
(30,923
|
)
|
|
INCOME TAX BENEFIT
|
|
|
|
(8,687
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)
|
|
|
|
(7,369
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)
|
|
|
|
(15,932
|
)
|
|
|
|
(11,365
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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NET LOSS
|
|
|
$
|
(16,035
|
)
|
|
|
$
|
(11,850
|
)
|
|
|
$
|
(29,695
|
)
|
|
|
$
|
(19,558
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.72
|
)
|
|
|
$
|
(0.48
|
)
|
|
Diluted
|
|
|
$
|
(0.39
|
)
|
|
|
$
|
(0.29
|
)
|
|
|
$
|
(0.72
|
)
|
|
|
$
|
(0.48
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
41,564,482
|
|
|
|
|
40,554,758
|
|
|
|
|
41,316,777
|
|
|
|
|
40,357,059
|
|
|
Diluted
|
|
|
|
41,564,482
|
|
|
|
|
40,554,758
|
|
|
|
|
41,316,777
|
|
|
|
|
40,357,059
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED SELECTED FINANCIAL DATA
|
|
|
|
|
|
|
|
|
|
Unaudited Consolidated Balance Sheet Data
|
|
|
June 30,
|
|
|
December 31,
|
|
(in thousands)
|
|
|
2016
|
|
|
2015
|
|
Cash and cash equivalents
|
|
|
$
|
893
|
|
|
$
|
600
|
|
Other current assets
|
|
|
|
11,280
|
|
|
|
19,838
|
|
Property and equipment, net, successful efforts method
|
|
|
|
1,124,282
|
|
|
|
1,154,546
|
|
Total assets
|
|
|
$
|
1,136,455
|
|
|
$
|
1,174,984
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
$
|
28,304
|
|
|
$
|
28,508
|
|
Long-term debt (1)
|
|
|
|
499,677
|
|
|
|
496,587
|
|
Other long-term liabilities
|
|
|
|
27,292
|
|
|
|
41,922
|
|
Stockholders’ equity
|
|
|
|
581,182
|
|
|
|
607,967
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
1,136,455
|
|
|
$
|
1,174,984
|
|
(1)
|
|
Long-term debt at June 30, 2016, is comprised of $230.3 million in
7% senior notes due 2021 and $275 million in outstanding borrowings
under our revolving credit facility, net of issuance costs of $4.1
million and $1.6 million, respectively. Long-term debt at December
31, 2015, is comprised of $230.3 million in 7% senior notes due 2021
and $273 million in outstanding borrowings under our revolving
credit facility, net of issuance costs of $4.5 million and $2.2
million, 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 Financial Information page in the Investor
Relations section of our website at www.approachresources.com.
Adjusted Net Loss
This release contains the non-GAAP financial measures adjusted net loss
and adjusted net loss per diluted share, which exclude (1) unrealized
loss on commodity derivatives, (2) write-off of debt issuance costs, (3)
rig termination fees, and (4) related income tax effect. The amounts
included in the calculation of adjusted net loss and adjusted net loss
per diluted share below were computed in accordance with GAAP. We
believe adjusted net loss and adjusted net loss per diluted share are
useful to investors because they provide readers with a 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 to net
loss for the three and six months ended June 30, 2016 and 2015 (in
thousands, except per-share amounts).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net loss
|
|
|
$
|
(16,035
|
)
|
|
|
$
|
(11,850
|
)
|
|
|
$
|
(29,695
|
)
|
|
|
$
|
(19,558
|
)
|
|
Adjustments for certain items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on commodity derivatives
|
|
|
|
8,076
|
|
|
|
|
13,904
|
|
|
|
|
9,033
|
|
|
|
|
23,225
|
|
|
Write-off of debt issuance costs
|
|
|
|
563
|
|
|
|
|
—
|
|
|
|
|
563
|
|
|
|
|
—
|
|
|
Rig termination fee
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
498
|
|
|
Related income tax effect
|
|
|
|
(3,024
|
)
|
|
|
|
(4,866
|
)
|
|
|
|
(3,359
|
)
|
|
|
|
(8,303
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
|
|
|
$
|
(10,420
|
)
|
|
|
$
|
(2,812
|
)
|
|
|
$
|
(23,458
|
)
|
|
|
$
|
(4,138
|
)
|
|
Adjusted net loss per diluted share
|
|
|
$
|
(0.25
|
)
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.57
|
)
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAX
We define EBITDAX as net loss, plus (1) exploration expense, (2)
depletion, depreciation and amortization expense, (3) share-based
compensation expense, (4) unrealized loss on commodity derivatives, (5)
write-off of debt issuance costs, (6) interest expense, net, and (7)
income tax benefit. 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 loss 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 to net loss for the
three and six months ended June 30, 2016 and 2015 (in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Net loss
|
|
|
$
|
(16,035
|
)
|
|
|
$
|
(11,850
|
)
|
|
|
$
|
(29,695
|
)
|
|
|
$
|
(19,558
|
)
|
|
Exploration
|
|
|
|
1,622
|
|
|
|
|
1,165
|
|
|
|
|
2,191
|
|
|
|
|
2,255
|
|
|
Depletion, depreciation and amortization
|
|
|
|
19,991
|
|
|
|
|
28,404
|
|
|
|
|
40,220
|
|
|
|
|
54,924
|
|
|
Share-based compensation
|
|
|
|
1,374
|
|
|
|
|
2,075
|
|
|
|
|
2,924
|
|
|
|
|
4,292
|
|
|
Unrealized loss on commodity derivatives
|
|
|
|
8,076
|
|
|
|
|
13,904
|
|
|
|
|
9,033
|
|
|
|
|
23,225
|
|
|
Write-off of debt issuance costs
|
|
|
|
563
|
|
|
|
|
—
|
|
|
|
|
563
|
|
|
|
|
—
|
|
|
Interest expense, net
|
|
|
|
6,808
|
|
|
|
|
6,243
|
|
|
|
|
13,106
|
|
|
|
|
12,165
|
|
|
Income tax benefit
|
|
|
|
(8,687
|
)
|
|
|
|
(7,369
|
)
|
|
|
|
(15,932
|
)
|
|
|
|
(11,365
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDAX
|
|
|
$
|
13,712
|
|
|
|
$
|
32,572
|
|
|
|
$
|
22,410
|
|
|
|
$
|
65,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2016 and
2015 (in thousands, except per-Boe amounts).
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Operating expenses
|
|
|
$
|
34,534
|
|
|
|
$
|
46,970
|
|
|
|
$
|
69,403
|
|
|
|
$
|
92,656
|
|
|
Exploration
|
|
|
|
(1,622
|
)
|
|
|
|
(1,165
|
)
|
|
|
|
(2,191
|
)
|
|
|
|
(2,255
|
)
|
|
Depletion, depreciation and amortization
|
|
|
|
(19,991
|
)
|
|
|
|
(28,404
|
)
|
|
|
|
(40,220
|
)
|
|
|
|
(54,924
|
)
|
|
Share-based compensation
|
|
|
|
(1,374
|
)
|
|
|
|
(2,075
|
)
|
|
|
|
(2,924
|
)
|
|
|
|
(4,292
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating expenses
|
|
|
$
|
11,547
|
|
|
|
$
|
15,326
|
|
|
|
$
|
24,068
|
|
|
|
$
|
31,185
|
|
|
Cash operating expenses per Boe
|
|
|
$
|
10.06
|
|
|
|
$
|
11.02
|
|
|
|
$
|
10.40
|
|
|
|
$
|
11.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2016 (in thousands).
|
|
|
|
|
|
|
|
|
Liquidity at
June 30, 2016
|
|
Borrowing base
|
|
|
$
|
325,000
|
|
|
Cash and cash equivalents
|
|
|
|
893
|
|
|
Revolving credit facility – outstanding borrowings
|
|
|
|
(275,000
|
)
|
|
Outstanding letters of credit
|
|
|
|
(325
|
)
|
|
Liquidity
|
|
|
$
|
50,568
|
|
|
|
|
|
|
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, 2016, and December 31, 2015 (in thousands).
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
Long-term debt (1)
|
|
|
$
|
499,677
|
|
|
|
$
|
496,587
|
|
|
Total stockholders’ equity
|
|
|
|
581,182
|
|
|
|
|
607,967
|
|
|
|
|
|
$
|
1,080,859
|
|
|
|
$
|
1,104,554
|
|
|
|
|
|
|
|
|
|
|
Long-term debt-to-capital
|
|
|
|
46.2
|
%
|
|
|
|
45.0
|
%
|
|
(1)
|
|
Long-term debt is net of debt issuance costs of $5.6 million and
$6.7 million at June 30, 2016 and December 31, 2015, respectively.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160803006610/en/
Source: Approach Resources Inc.