Approach Resources Inc. (AREX) - Financial and Strategic SWOT Analysis Review by GlobalData

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									               Approach Resources Inc. (AREX) - Financial and Strategic SWOT
                                     Analysis Review
        Reference Code: GDGE7178FSA                                                                                            Publication Date: APR 2013

          One Ridgmar Centre, 6500 West
                                                          Phone             +1 817 9899000                          Revenue         128.9 (million USD)
          Freeway, Suite 800
          Fort Worth, TX                                  Fax               +1 817 9899001                          Net Profit      6.38 (million USD)
          76116                                           Website           www.approachresources.com               Employees       95
          United States                                   Exchange          AREX [NASDAQ]                           Industry        Oil & Gas

       Company Overview
       Approach Resources Inc. (Approach Resources) is an independent upstream oil and gas company. The company carries out the
       acquisition, exploration, development and production of oil, natural gas and natural gas liquids (NGLs). It focuses on oil and gas
       reserves in oil shale and tight gas sands. Approach Resources has properties in the Permian Basin in West Texas; and North
       Bald Prairie, East Texas. The company's drilling targets in Permian Basin comprise Clearfork, Wolfcamp Shale, Canyon Sands,
       Strawn and Ellenburger zones.
       Key Executives                                                                SWOT Analysis
                      Name                                 Title                      Approach Resources Inc., SWOT Analysis
         J. Ross Craft                       Chief Executive Officer                  Strengths                            Weaknesses
         Bryan H. Lawrence                   Chairman
                                                                                                                           Decreasing Profitability
         James H. Brandi                     Director                                 Increasing Production
                                                                                                                           Dependence on Few
         James C. Crain                      Director                                 Growing Reserve Base
                                                                                                                           Customers
         Sheldon B. Lubar                    Director
        Source: Annual Report, Company Website, Primary and Secondary
        Research, GlobalData                                                          Opportunities                        Threats

       Share Data                                                                     Prospective North American           Stringent Regulations
         Approach Resources Inc.                                                      Shale Gas Industry
                                                                                                                           Stiff Competition
        Share Price (USD) as on 28-Mar-                                24.61          Energy Demand Outlook: the
        2013                                                                          US
        EPS (USD)                                                        0.18
        Market Cap (million USD)                                         960         Source: Annual Report, Company Website, Primary and Secondary Research,
                                                                                     GlobalData
        Enterprise Value (million USD)                                 1,066
        Shares Outstanding (million)                                       39
       Source: Annual Report, Company Website, Primary and Secondary
       Research, GlobalData

       Financial Performance                                                         Recent Developments
                                                                                      Mar 22, 2013         Approach Resources Reports Temporary
                                                                                                           Curtailment Of Production Due To Third-party
                                                                                                           Facility Repair
                                                                                      Dec 12, 2012         Approach Resources Appoints Qingming Yang
                                                                                                           As COO
                                                                                      Nov 05, 2012         Approach Resources Reports Revenue Of
                                                                                                           $33m In Q3 2012
                                                                                      Oct 29, 2012         Approach Resources            Provides   Q3     2012
                                                                                                           Production Update
       Source: Annual Report, Company Website, Primary and Secondary                 Source: Annual Report, Company Website, Primary and Secondary Research,
       Research, GlobalData                                                          GlobalData




Approach Resources Inc. (AREX) - Financial and Strategic SWOT                                                                    Reference Code: GDGE7178FSA
Analysis Review
Source : www.globalcompanyintelligence.com                                                                                                                     Page 1
© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form
       Table of Contents
       Table of Contents ............................................................................................................................................................................... 2
          List of Tables .................................................................................................................................................................................. 4
          List of Figures ................................................................................................................................................................................. 4
       Section 1 - About the Company.......................................................................................................................................................... 5
       Approach Resources Inc. - Key Facts ................................................................................................................................................ 5
       Approach Resources Inc. - Key Employees ....................................................................................................................................... 6
       Approach Resources Inc. - Key Employee Biographies ..................................................................................................................... 7
       Approach Resources Inc. - Major Products and Services .................................................................................................................. 8
       Approach Resources Inc. - Key Operational Summary ...................................................................................................................... 9
       Approach Resources Inc. - History ................................................................................................................................................... 10
       Approach Resources Inc. - Company Statement ............................................................................................................................. 11
       Approach Resources Inc. - Locations And Subsidiaries ................................................................................................................... 13
          Head Office ................................................................................................................................................................................... 13
          Other Locations & Subsidiaries ..................................................................................................................................................... 13
       Section 2 – Company Analysis ......................................................................................................................................................... 14
       Approach Resources Inc. - Business Description............................................................................................................................. 14
       Approach Resources Inc. - SWOT Analysis ..................................................................................................................................... 15
          SWOT Analysis - Overview........................................................................................................................................................... 15
          Approach Resources Inc. - Strengths ........................................................................................................................................... 15
             Strength - Increasing Production ............................................................................................................................................... 15
             Strength - Growing Reserve Base ............................................................................................................................................. 15
             Strength - Focused Operations ................................................................................................................................................. 15
          Approach Resources Inc. - Weaknesses ...................................................................................................................................... 15
             Weakness - Decreasing Profitability .......................................................................................................................................... 15
             Weakness - Dependence on Few Customers ........................................................................................................................... 16
          Approach Resources Inc. - Opportunities ..................................................................................................................................... 16
             Opportunity - Prospective North American Shale Gas Industry................................................................................................. 16
             Opportunity - Energy Demand Outlook: the US ........................................................................................................................ 16
             Opportunity - Potential Growth for Unconventional Oil and Gas ............................................................................................... 16
          Approach Resources Inc. - Threats .............................................................................................................................................. 17
             Threat - Stringent Regulations .................................................................................................................................................. 17
             Threat - Stiff Competition .......................................................................................................................................................... 17
             Threat - Volatility In Oil & Natural Gas Prices............................................................................................................................ 17
       Approach Resources Inc. - Key Competitors.................................................................................................................................... 18
       Section 3 – Company Financial Ratios ............................................................................................................................................. 19
       Financial Ratios - Capital Market Ratios........................................................................................................................................... 19
       Financial Ratios - An
								
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