Approach Resources Inc. (NASDAQ: AREX) today reported results for first quarter 2012. Highlights for first quarter 2012, compared to first quarter 2011, include:
- Total production increased 39% to 654 MBoe (7.2 MBoe/d), made up of 62% oil and NGLs
- Oil and NGL production increased 110% to 405 MBbls
- Revenues increased 52% to $30.6 million
- Net income totaled $1.7 million, or $0.05 per diluted share
- Adjusted net income (non-GAAP) increased 180% to $3.5 million, or $0.10 per diluted share
- EBITDAX (non-GAAP) increased 49% to $20.8 million, or $0.62 per diluted share
First quarter 2012 production totaled 654 MBoe (7.2 MBoe/d), compared to 469 MBoe (5.2 MBoe/d) produced in first quarter 2011, a 39% increase. Oil and NGL production for first quarter 2012 increased 110% to 405 MBbls, compared to 193 MBbls produced in first quarter 2011. Production for first quarter 2012 was 29% oil, 33% NGLs and 38% natural gas, compared to 19% oil, 22% NGLs and 59% natural gas in first quarter 2011.
First Quarter 2012 Financial Results
Net income for first quarter 2012 was $1.7 million, or $0.05 per diluted share, on revenues of $30.6 million. This compares to net income for first quarter 2011 of $1.5 million, or $0.05 per diluted share, on revenues of $20.2 million. The $10.4 million increase in revenues in first quarter 2012 was attributable to an increase in production volumes and oil prices ($14.3 million), which was offset by a decrease in NGL and natural gas prices ($3.9 million). Net income for first quarter 2012 included an unrealized loss on commodity derivatives of $2.7 million and a realized loss on commodity derivatives of $484,000. Net income for first quarter 2012 was also impacted by higher expenses, including depreciation, depletion and amortization, general and administrative, lease operating and severance and production taxes, partially offset by lower exploration expense, compared to first quarter 2011.