Stocks Alert: Approach Resources, Inc. (NASDAQ:AREX)


Approach Resources, Inc. (NASDAQ:AREX) added 17% and closed its last session at $3.51. The stock has the market capitalization of $146.02 Million with the total outstanding shares of 41.6 Million. Approach Resources, Inc.. has Analysts’ Mean Recommendation of 2.88 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 0 for trailing twelve months while its Forward P/E is 0.

Approach Resources, Inc. (NASDAQ:AREX) touched its 52-Week High of $4.35 on Sep 7, 2016 while it’s 52-Week Low of $0.6 on Feb 25, 2016. The company currently has Return on Assets of -3.9 percent, Return on Equity of -7.6% and Return on Investment of -15.3 percent. The stock currently showing Weekly Volatility of 9.87%% and Monthly Volatility of 9.74% Percent with Average True Range of 0.29 and Beta of 2.88.

The 7 analysts offering 12-month price forecasts for Approach Resources Inc have a median target of 4.00, with a high estimate of 12.00 and a low estimate of 3.00. The median estimate represents a +13.96% increase from the last price of 3.51.

Press Release:

The Company on 9 November declared that it has completed its fall 2016 semiannual borrowing base redetermination of its revolving credit facility. The borrowing base was unanimously reaffirmed by the bank group at $325 million and there were no changes to the existing terms or conditions of the credit agreement. Under the terms of the credit agreement, the bank group redetermines the borrowing base semiannually using the banks’ estimates of reserves and future oil and gas prices. The next borrowing base redetermination is scheduled to occur in April 2017. At November 8, 2016, Approach had $275.0 million outstanding under its revolving credit facility, resulting in liquidity of $52.2 million.

Sergei Krylov, Approach’s Executive Vice President and Chief Financial Officer, commented, “We appreciate the support of our bank group as we continue to execute on our strategy of maintaining financial flexibility and right-sizing the balance sheet for the current commodity price environment. The reaffirmed borrowing base, along with our recently-declared debt exchange, will position the Company to resume production growth while continuing to operate within cash flow. This reaffirmation of lender commitments at $325 million is a validation of the continued productivity improvements, cost reduction initiatives and recapitalization transactions that have been the focus of the entire Approach team. We look forward to working with our bank group on our future growth initiatives.”

Company Profile:

Approach Resources Inc. is an independent energy company engaged in the exploration, development, exploitation, production and acquisition of unconventional natural gas and oil properties onshore in the United States and Western Canada. The Company focuses its growth efforts primarily on finding and developing natural gas reserves in known tight gas sands and shale areas. The Company currently operates in Texas, New Mexico and Kentucky and has a non-operating interest in Western Canada.