Approach Resources, Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the period, the company's oil, NGL and gas sales were $36,269,000 against $30,618,000 a year ago. Operating Income was $4,604,000 against $6,739,000 a year ago. Loss before income tax was $534,000 against income of $2,696,000 a year ago. Net loss was $347,000 or $0.01 per basic and diluted share against income of $1,714,000 or $0.05 per basic and diluted share a year ago. Net cash provided by operating activities was $29,638,000 against $35,491,000 a year ago. Adjusted net income was $2,359,000 or $0.06 per diluted share against $3,478,000 or $0.10 per diluted share a year ago. EBITDAX was $24,368,000 or $0.36 per diluted share against $20,804,000 or $0.62 per diluted share a year ago. First quarter 2013 revenues increased $5.7 million due to an increase in production volumes and gas price realizations $10.9 million, partially offset by a decrease in oil and NGL price realizations $5.2 million. Net loss for first quarter 2013 included an unrealized loss on commodity derivatives of $4.1 million and a realized gain on commodity derivatives of $307,000. Costs incurred during first quarter 2013 totaled $69.5 million, consisting of $61.8 million for drilling and completion activities, $6.7 million for pipeline, infrastructure projects and other equipment and $1 million for acreage acquisitions and extensions and 3-D seismic data acquisition. Production for first quarter 2013 totaled 754 MBoe (8.4 MBoe/d), compared to production of 654 MBoe (7.2 MBoe/d) in first quarter 2012, a 15% increase. Oil production for first quarter 2013 increased 63% to 310 MBbls, compared to 191 MBbls produced in first quarter 2012. Production for first quarter 2013 was 41% oil, 28% NGLs and 31% natural gas, compared to 29% oil, 33% NGLs and 38% natural gas in first quarter 2012. Estimated production for first quarter 2013 was impacted by a third-party NGL fractionation facility's repair and maintenance. The company expects second quarter production to range from 9.3 MBoe/d to 9.6 MBoe/d. The company expects lease operating expenses to fall in line with guidance of $7 to $8 per Boe for the balance of 2013. The company announced that the lenders to credit agreement recently completed their semi-annual borrowing base redetermination, as a result borrowing base increased to $315 million from $280 million and the total facility amount increased to $500 million from $300 million. The company also extended the term 2 years to July 31, 2016. Pro forma for the borrowing base increase, liquidity was $163 million at March 31, 2013.

Approach Resources, Inc., Q1 2013 Earnings Call, May 03, 2013

Approach Resources, Inc. announced preliminary production results for the first quarter 2013. For the quarter, the company reported 754 MBoe (8.4 MBoe/d), compared to 654 MBoe (7.2 MBoe/d) produced a 15% increase. Estimated oil production for first quarter 2013 increased 63% to 310 MBbls, compared to 191 MBbls produced in first quarter 2012. Estimated production for first quarter 2013 was 41% oil, 28% NGLs and 31% natural gas, compared to 29% oil, 33% NGLs and 38% natural gas in first quarter 2012.