Approach Resources, Inc. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis

April 2024 | 50 pages | ID: A969BB1F648BEN
BAC Reports

Abstracts

Approach Resources, Inc. Fundamental Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily accessed format. The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Approach Resources, Inc. and its competitors. This provides our Clients with a clear understanding of Approach Resources, Inc. position in the Energy Industry.

• The report contains detailed information about Approach Resources, Inc. that gives an unrivalled in-depth knowledge about internal business-environment of the company: data about the owners, senior executives, locations, subsidiaries, markets, products, and company history.
• Another part of the report is a SWOT-analysis carried out for Approach Resources, Inc.. It involves specifying the objective of the company's business and identifies the different factors that are favorable and unfavorable to achieving that objective. SWOT-analysis helps to understand company’s strengths, weaknesses, opportunities, and possible threats against it.
• The Approach Resources, Inc. financial analysis covers the income statement and ratio trend-charts with balance sheets and cash flows presented on an annual and quarterly basis. The report outlines the main financial ratios pertaining to profitability, margin analysis, asset turnover, credit ratios, and company’s long-term solvency. This sort of company's information will assist and strengthen your company’s decision-making processes.
• In the part that describes Approach Resources, Inc. competitors and the industry in whole, the information about company's financial ratios is compared to those of its competitors and to the industry. The unique analysis of the market and company’s competitors along with detailed information about the internal and external factors affecting the relevant industry will help to manage your business environment. Your company’s business and sales activities will be boosted by gaining an insight into your competitors’ businesses.
• Also the report provides relevant news, an analysis of PR-activity, and stock price movements. The latter are correlated with pertinent news and press releases, and annual and quarterly forecasts are given by a variety of experts and market research firms. Such information creates your awareness about principal trends of Approach Resources, Inc. business.

About Approach Resources, Inc.

Approach Resources Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. The company focuses on natural gas and oil reserves in tight sands and shale. As of December 31, 2009, it had leasehold interests totaling approximately 273,482 gross (196,634 net) acres; and owned working interests in 467 producing oil and gas wells.

As of December 31, 2009, the company had estimated proved reserves of approximately 218.9 Bcfe. Its proved reserves and production are located in Ozona Northeast and Cinco Terry in West Texas and in North Bald Prairie in East Texas.

Oil and Gas Properties and Operations

West Texas

Ozona Northeast (Wolfcamp, Canyon Sands, Strawn and Ellenburger): The Ozona Northeast field in Crockett and Schleicher counties, Texas, is its major operating area. The company has an acreage position of 49,850 gross (43,553 net) acres. The company owns substantially working interests in various depths of the subsurface and has a net revenue interest of approximately 80% in Ozona Northeast. It also operates approximately 150 miles of gas gathering lines in the area. As of December 31, 2009, the company had estimated proved reserves of 134.8 Bcfe in Ozona Northeast.

Cinco Terry (Wolfcamp, Canyon Sands and Ellenburger): The company has leased and acquired options to lease 50,281 gross (23,818 net) acres in its Cinco Terry project, two miles northwest of Ozona Northeast, to explore the Wolfcamp, Canyon, and Ellenburger formations. The company has approximately a 52% working interest and 39% net revenue interest in Cinco Terry. As of December 31, 2009, the company had estimated proved reserves of 68.7 Bcfe in Cinco Terry.

East Texas

North Bald Prairie (Cotton Valley Sands, Bossier and Cotton Valley Lime): The company has entered into a joint drilling venture with EnCana Oil & Gas (USA) Inc. (EnCana) in the East Texas Cotton Valley/Bossier trend. As of December 31, 2009, the company had drilled and completed 11 gross wells, including 1 well completed as a saltwater disposal well. The company has a 50% working interest and approximately 40% net revenue interest. As of December 31, 2009, it had estimated proved reserves of 15.5 Bcfe in North Bald Prairie. The company has identified 93 potential drilling locations as of December 31, 2009.

Northern New Mexico

El Vado East (Mancos Shale): The company’s El Vado East prospect is a 90,357 gross (79,793 net) acre Mancos Shale play located in the Chama Basin in northern New Mexico in proximity to various productive fields, including the Puerto Chiquito West, Puerto Chiquito East and the Boulder fields. It has a 90% working interest and a net revenue interest of approximately 72% in its El Vado East prospect.

Southwest Kentucky

Boomerang (New Albany Shale): The company’s Boomerang prospect is a 74,988 gross (44,759 net) acre New Albany Shale play located in southwest Kentucky in the Illinois Basin. The company has a 60% working interest and a net revenue interest of approximately 50%.

Significant Events

In October 2010, Approach Resources, Inc. announced that it has acquired an additional 10% working interest in its Cinco Terry field in the Permian Basin from a non-operating partner.

Customers

The company's major customers are Ozona Pipeline Energy Company; WTG Benedum/Belvan Partners, LP; and Shell Trading U.S. Company.

History

Approach Resources Inc. was incorporated in 2002.

The above Company Fundamental Report is a half-ready report and contents are subject to change.
It means that we have all necessary data in our database to prepare the report but need 2-3 days to complete it. During this time we are also updating the report with respect to the current moment. So, you can get all the most recent data available for the same price. Please note that preparation of additional types of analyses requires extra time.

Contents

RESEARCH METHODOLOGY

DISCLAIMER

1. APPROACH RESOURCES, INC. COMPANY PROFILE

1.1. Key facts
1.2. Financial Performance
1.3. Key Executives
1.4. Ownership and Major Holders
1.5. Company History

2. APPROACH RESOURCES, INC. BUSINESS OVERVIEW

2.1. Business Description
2.2. Major Products and Services
2.3. Markets and Sales Activities
2.4. Locations, Subsidiaries, Operating Units

3. APPROACH RESOURCES, INC. SWOT ANALYSIS

3.1. Overview
3.2. Strengths
3.3. Weaknesses
3.4. Opportunities
3.5. Threats

4. APPROACH RESOURCES, INC. FINANCIAL ANALYSIS

4.1. Financial Statements
4.1.1. Income Statement
4.1.2. Balance Sheet
4.1.3. Cash Flow
4.2. Financial Ratios
4.2.1. Profitability
4.2.2. Margin Analysis
4.2.3. Asset Turnover
4.2.4. Credit Ratios
4.2.5. Long-Term Solvency
4.2.6. Growth Over Prior Year
4.2.7. Financial Ratios Charts
4.3. Stock Market Snapshot

5. APPROACH RESOURCES, INC. COMPETITORS AND INDUSTRY ANALYSIS

5.1. Approach Resources, Inc. Direct Competitors
5.2. Comparison of Approach Resources, Inc. and Direct Competitors Financial Ratios
5.3. Comparison of Approach Resources, Inc. and Direct Competitors Stock Charts
5.4. Approach Resources, Inc. Industry Analysis
5.4.1. Energy Industry Snapshot
  5.4.2. Approach Resources, Inc. Industry Position Analysis

6. APPROACH RESOURCES, INC. NEWS & EVENTS

6.1. News & PR Activity Analysis
6.2. IR Corporate News
6.3. Marketing News
6.4. Corporate Events

7. APPROACH RESOURCES, INC. EXPERTS REVIEW¹

7.1. Experts Consensus
7.2. Experts Revisions

8. APPROACH RESOURCES, INC. ENHANCED SWOT ANALYSIS²

9. UNITED STATES PESTEL ANALYSIS²

9.1. Political Factors
9.2. Economic Factors
9.3. Social Factors
9.4. Technological Factors
9.5. Environmental Factors
9.6. Legal Factors

10. APPROACH RESOURCES, INC. IFE, EFE, IE MATRICES²

10.1. Internal Factor Evaluation Matrix
10.2. External Factor Evaluation Matrix
10.3. Internal External Matrix

11. APPROACH RESOURCES, INC. PORTER FIVE FORCES ANALYSIS²

12. APPROACH RESOURCES, INC. VRIO ANALYSIS²

APPENDIX: RATIO DEFINITIONS

LIST OF FIGURES

Approach Resources, Inc. Annual Revenues in Comparison with Cost of Goods Sold and Gross Profit
Profit Margin Chart
Operating Margin Chart
Return on Equity (ROE) Chart
Return on Assets (ROA) Chart
Debt to Equity Chart
Current Ratio Chart
Approach Resources, Inc. 1-year Stock Charts
Approach Resources, Inc. 5-year Stock Charts
Approach Resources, Inc. vs. Main Indexes 1-year Stock Chart
Approach Resources, Inc. vs. Direct Competitors 1-year Stock Charts
Approach Resources, Inc. Article Density Chart

1 – Data availability depends on company’s security policy.
2 – These sections are available only when you purchase a report with appropriate additional types of analyses.
The complete financial data is available for publicly traded companies.

List Of Tables

LIST OF TABLES

Approach Resources, Inc. Key Facts
Profitability
Management Effectiveness
Income Statement Key Figures
Balance Sheet Key Figures
Cash Flow Statement Key Figures
Financial Performance Abbreviation Guide
Approach Resources, Inc. Key Executives
Approach Resources, Inc. Major Shareholders
Approach Resources, Inc. History
Approach Resources, Inc. Products
Revenues by Segment
Revenues by Region
Approach Resources, Inc. Offices and Representations
Approach Resources, Inc. SWOT Analysis
Yearly Income Statement Including Trends
Income Statement Latest 4 Quarters Including Trends
Yearly Balance Sheet Including Trends
Balance Sheet Latest 4 Quarters Including Trends
Yearly Cash Flow Including Trends
Cash Flow Latest 4 Quarters Including Trends
Approach Resources, Inc. Profitability Ratios
Margin Analysis Ratios
Asset Turnover Ratios
Credit Ratios
Long-Term Solvency Ratios
Financial Ratios Growth Over Prior Year
Approach Resources, Inc. Capital Market Snapshot
Approach Resources, Inc. Direct Competitors Key Facts
Direct Competitors Profitability Ratios
Direct Competitors Margin Analysis Ratios
Direct Competitors Asset Turnover Ratios
Direct Competitors Credit Ratios
Direct Competitors Long-Term Solvency Ratios
Energy Industry Statistics
Approach Resources, Inc. Industry Position
Company vs. Industry Income Statement Analysis
Company vs. Industry Balance Sheet Analysis
Company vs. Industry Cash Flow Analysis
Company vs. Industry Ratios Comparison
Approach Resources, Inc. Consensus Recommendations¹
Analyst Recommendation Summary¹
Price Target Summary¹
Experts Recommendation Trends¹
Revenue Estimates Analysis¹
Earnings Estimates Analysis¹
Historical Surprises¹
Revenue Estimates Trend¹
Earnings Estimates Trend¹
Revenue Revisions¹

ANALYSIS FEATURES

SWOT Analysis

SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an analytical framework that identifies the internal and external factors that are favorable and unfavorable for a company.

Enhanced SWOT Analysis

Enhanced SWOT is a 3×3 grid that arranges strengths, weaknesses, opportunities and threats into one scheme:

• How to use the strengths to take advantage of the opportunities?
• How to use the strengths to reduce likelihood and impact of the threats?
• How to overcome the weaknesses that obstruct taking advantage of the opportunities?
• How to overcome the weaknesses that can make the threats a reality?

Upon answering these questions a company can develop a project plan to improve its business performance.

PESTEL Analysis

PESTEL (also termed as PESTLE) is an ideal tool to strategically analyze what influence different outside factors – political, economic, sociocultural, technological, environmental and legal – exert on a business to later chart its long term targets.

Being part of the external analysis when carrying out a strategic assessment or performing a market study, PESTEL gives an overview of diverse macro-environmental factors that any company should thoughtfully consider. By perceiving these outside environments, businesses can maximally benefit from the opportunities while minimizing the threats to the organization.

Key Factors Examined by PESTEL Analysis:

• Political – What opportunities and pressures are brought by political bodies and what is the degree of public regulations’ impact on the business?
• Economic – What economic policies, trends and structures are expected to affect the organization, what is this influence’s degree?
• Sociological – What cultural and societal aspects will work upon the demand for the business’s products and operations?
• Technological – What impact do the technological aspects, innovations, incentives and barriers have on the organization?
• Environmental – What environmental and ecological facets, both locally and farther afield, are likely to predetermine the business?
• Legal – What laws and legislation will exert influence on the style the business is carried out?

IFE, EFE, IE Matrices

The Internal Factor Evaluation matrix (IFE matrix) is a strategic management tool helping audit or evaluate major weaknesses and strengths in a business’s functional areas. In addition, IFE matrix serves as a basis for identifying and assessing relationships amongst those areas. The IFE matrix is utilised in strategy formulation.

The External Factor Evaluation matrix (EFE matrix) is a tool of strategic management that is typically utilised to assess current market conditions. It is an ideal instrument for visualising and prioritising the threats and opportunities a firm is facing.

The essential difference between the above mentioned matrices lies in the type of factors incorporated in the model; whilst the latter is engaged in internal factors, the former deals exceptionally with external factors – those exposed to social, political, economic, legal, etc. external forces.

Being a continuation of the EFE matrix and IFE matrix models, the Internal External matrix (IE matrix) rests upon an investigation of external and internal business factors integrated into one suggestive model.

Porter Five Forces Analysis

The Porter’s five forces analysis studies the industry of operation and helps the company find new sources of competitive advantage. The analysis surveys an industry through five major questions:

1. What composes a threat of substitute products and services?
2. Is there a threat of new competitors entering the market?
3. What is the intensity of competitive rivalry?
4. How big is the bargaining power of buyers?
5. How significant is the bargaining power of suppliers?

VRIO Analysis

VRIO stands for Value, Rarity, Imitability, Organization. This analysis helps to evaluate all company’s resources and capabilities and bring them together into one aggregate table that includes:

• Tangible resources
  • Financial
  • Physical
  • Technological
  • Organizational
• Intangible resources
  • Human
  • Innovation and Creativity
  • Reputation
• Organizational capabilities

The result of the analysis gives a clear picture of company’s competitive and economic implications, answering the questions if the resources mentioned above are:

• Valuable?
• Rare?
• Costly to imitate?
• Organized properly?