Approach Resources Inc. (NASDAQ: AREX) today reported results for third quarter 2012. Highlights for third quarter 2012 include:
- Production of 747 MBoe (8.1 MBoe/d), an increase of 22% over third quarter 2011
- Oil production of 250 MBbls, an increase of 113% over third quarter 2011
- Revenues of $33 million, an increase of 18% over third quarter 2011
- Net loss of $2.4 million, or $0.07 per share
- Adjusted net income (non-GAAP) of $0.4 million, or $0.01 per share
- EBITDAX (non-GAAP) of $21.5 million, or $0.63 per share
Third quarter 2012 production totaled 747 MBoe (8.1 MBoe/d), compared to 612 MBoe (6.7 MBoe/d) produced in third quarter 2011, a 22% increase. Third quarter 2012 production also increased 7% over second quarter 2012 production of 702 MBoe (7.7 MBoe/d). Oil production for third quarter 2012 increased 113% to 250 MBbls, compared to 117 MBbls produced in third quarter 2011. Production for third quarter 2012 was 34% oil, 31% NGLs and 35% natural gas, compared to 19% oil, 38% NGLs and 43% natural gas in third quarter 2011. As previously reported, production from north Project Pangea in the Wolfcamp oil shale resource play was impacted by downtime at a third-party natural gas processing facility during third quarter 2012. We estimate that the impact to third quarter 2012 production as a result of plant downtime totaled approximately 340 Boe/d. Also as previously disclosed, we are constructing two high-pressure gas lines from north Project Pangea to deliver our natural gas to a processing facility in Ozona, Texas, with better economics and more capacity than the current, third-party facility for our north Project Pangea natural gas. We expect the new gas lines to be operational by the second and third weeks of November 2012, respectively.