- Fourth quarter production was 15.1 MBoe/d, a 34% increase over the prior-year quarter
- Full-year 2014 production was 5,049 MBoe, a 47% increase over the prior year
- Oil production was 2,024 MBbls, a 40% increase over the prior year
- Oil production represented 40% of total production for full-year 2014
- Drilled 68 horizontal wells and placed 64 horizontal wells on production
- 2014 capital expenditures of
Proved Reserves Highlights
- Year-end 2014 proved reserves grew to 146.2 MMBoe, a 27% increase over the prior year
- PV-10 (non-GAAP) was
$1.4 billion, a 25% increase over the prior year
Looking ahead to 2015, our industry is presented with a different set of challenges, given the significant change in commodity prices. We continue to conservatively manage our balance sheet, and we remain flexible on our capital spending budget, particularly as we take proactive steps to further reduce our cost structure and enhance drilling economics. Most importantly, we have no near-term debt maturities, and our liquidity position is strong, providing the ability to weather a prolonged downturn in commodity prices and to take advantage of opportunities that may become available."
Estimated Fourth Quarter and Full-Year 2014 Production
Estimated fourth quarter 2014 production totaled 1,390 MBoe (15.1 MBoe/d), a 34% increase over fourth quarter 2013 and a 6.4% increase over third quarter 2014. Estimated oil production for fourth quarter 2014 increased 14% compared to fourth quarter 2013 and 7.1% from third quarter 2014.
Estimated full-year 2014 production totaled 5,049 MBoe (13.8 MBoe/d), a 47% increase over 2013. Oil production for 2014 increased 40% compared to 2013.
|Three Months Ended||Twelve Months Ended|
|December 31,||December 31,|
2014 Estimated Proved Reserves and Costs Incurred
Year-end 2014 proved reserves totaled 146.2 MMBoe, up 27% from year-end 2013 proved reserves of 114.7 MMBoe. Our proved oil reserves increased 20% to 55.3 MMBbls, compared to year-end 2013 proved oil reserves of 46.1 MMBbls. Year-end 2014 proved reserves were 38% oil, 28% NGLs and 34% natural gas. Proved developed reserves represent approximately 41% of total year-end 2014 proved reserves, up from 39% at year-end 2013.
Preliminary, unaudited costs incurred during 2014 totaled
Conference Call Scheduled for
The Company plans to announce fourth quarter and full-year 2014 financial and operational results on
|Dial in:||(877) 201-0168|
|Intl. dial in:||(647) 788-4901|
A replay of the call will be available on the Company's website or by dialing:
|Dial in:||(855) 859-2056|
Supplemental Non-GAAP Financial and Other Measures
The present value of our proved reserves, discounted at 10% ("PV-10"), was estimated at
PV-10 is our estimate of the present value of future net revenues from proved oil and gas reserves after deducting estimated production and ad valorem taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes. The estimated future net revenues are discounted at an annual rate of 10% to determine their "present value." We believe PV-10 to be an important measure for evaluating the relative significance of our oil and gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and investors in evaluating oil and gas companies. Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, we believe the use of a pre-tax measure is valuable for evaluating the Company. We believe that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and gas industry.
The Company has not provided a reconciliation of its PV-10 to our standardized measure of discounted future net cash flows, the most directly comparable measure calculated and presented in accordance with GAAP, in this release because final income tax information for 2014 is not yet available. The Company will provide its customary reconciliation of PV-10 to standardized measure in its forthcoming Form 10-K for the year ended
Approach Resources Inc. is an independent energy company focused on the exploration, development, production and acquisition of unconventional oil and gas reserves in the
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. 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
Approach Resources Inc.
Sergei Krylov, 817.989.9000
Executive Vice President & Chief Financial Officer