- Reduce the Company's long-term debt by up to $230.3 million;
- Generate up to $70 million in future interest savings and enhance the Company's liquidity;
- Provide the Company flexibility to increase its capital budget out of operating cash flow and return the Company to production growth in anticipation of a continued commodity price recovery;
- Increase the Company's financing and strategic flexibility by removing certain restrictive covenants from the existing Senior Notes indenture;
- Capture a 23% premium to the Company's November 2, 2016 closing price of $2.70; and
- Align the Company with an investor in an integrated oilfield service business.
Approach Resources Inc. (NASDAQ: AREX) ("Approach" or the "Company") today announced an agreement to substantially reduce the Company's long-term debt through exchange transactions anchored by a proven oil and gas industry operator and investor (the "Transactions"). The Transactions were unanimously approved by the Company's board of directors. The Transactions would: