First Quarter 2018 Results MAY 2, 2018

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Transcription:

First Quarter 2018 Results MAY 2, 2018

Forward-looking statements This presentation 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 presentation that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this presentation specifically include the expectations of management regarding plans, strategies, objectives, anticipated financial and operating results of the Company, including as to the Company s Wolfcamp shale resource play, estimated resource potential and recoverability of the oil and gas, estimated reserves and drilling locations, capital expenditures, typical well results and well profiles, type curve, and production and operating expenses guidance included in the presentation. These statements are based on certain assumptions made by the Company based on management's experience and technical analyses, current conditions, anticipated future developments and other factors believed to be appropriate and believed to be reasonable by management. When used in this presentation, the words will, potential, believe, intend, expect, may, should, anticipate, could, estimate, plan, predict, project, target, 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. In particular, careful consideration should be given to the cautionary statements and risk factors described in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Cautionary statements regarding oil & gas quantities The Securities and Exchange Commission ( SEC ) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. The Company uses the terms estimated ultimate recovery or ( EUR ), reserve or resource potential, and other descriptions of volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC s rules may prohibit the Company from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized by the Company. EUR estimates, identified drilling locations and resource potential estimates have not been risked by the Company. Actual locations drilled and quantities that may be ultimately recovered from the Company s interest may differ substantially from the Company s estimates. There is no commitment by the Company to drill all of the drilling locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of the Company s drilling project, which will be directly affected by the availability of capital, drilling and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory approval and actual drilling results, as well as geological and mechanical factors. Estimates of unproved reserves, type/decline curves, per well EUR and resource potential may change significantly as development of the Company s oil and gas assets provides additional data. Type/decline curves, estimated EURs, resource potential, recovery factors and well costs represent Company estimates based on evaluation of petrophysical analysis, core data and well logs, well performance from limited drilling and recompletion results and seismic data, and have not been reviewed by independent engineers. These are presented as hypothetical recoveries if assumptions and estimates regarding recoverable hydrocarbons, recovery factors and costs prove correct. The Company has limited production experience with this project, and accordingly, such estimates may change significantly as results from more wells are evaluated. Estimates of resource potential and EURs do not constitute reserves, but constitute estimates of contingent resources which the SEC has determined are too speculative to include in SEC filings. Unless otherwise noted, internal rate of return ( IRR ) estimates are before taxes and assume New York Mercantile Exchange ( NYMEX ) forward-curve oil and gas pricing and Company-generated EUR and decline curve estimates based on Company drilling and completion cost estimates that do not include land, seismicor general and administrative ( G&A ) costs. 2

Solid foundation for long-term value APPROACH RESOURCES OVERVIEW Enterprise value $637 MM 1 High-quality reserve base 181.5 MMBoe proved reserves 2 60% liquids, 28% oil $582.2 MM PV-10 (non-gaap) at NYMEX strip 3 Permian Basin core operating area 165,000 gross (149,000 net) acres ~1 BnBoe gross, unrisked resource potential ~1,350 identified HZ drilling locations ~100% working interest Large contiguous acreage position with multiple benches Prolific Wolfcamp shale is the largest estimate of unconventional oil ever assessed in North America by USGS 4 Large-scale infrastructure facilitates efficient development now and creates additional shareholder value through future monetization opportunity 329,000 BBL capacity water recycling facility Centralized compressor and gas lift infrastructure Capital program focused on aligning capex with cash flow Stable leasehold that is largely HBP provides for flexible budget Improving commodity prices would allow us to seamlessly increase capital budget, funded with operating cash flow ASSET OVERVIEW WOLFCAMP SHALE RESOURCES PLAY REAGAN PANGEA WEST CROCKETT IRION PROJECT PANGEA SCHLEICHER SUTTON 1. Enterprise value is equal to market capitalization using net debt and the share count as of 3/31/2018, and the closing share price of $2.78 per share as of 4/30/2018 2. Proved reserves as of 12/31/2017. All Boe and Mcfe calculations are based on a 6 to 1 conversion ratio. Reserves were estimated using SEC pricing at December 31, 2017 and were calculated based on the first-ofthe-month, twelve month average prices for oil, NGLs and natural gas of $51.34 per BBL, $18.67 per Bbl and $2.99 per MMBtu, respectively, adjusted for basis differentials, grade and quality. 3. See slide 26 for reconciliation of PV-10 using SEC pricing to the Standardized Measure of Discounted Future Net Cash Flows, and the NYMEX strip pricing as of December 31, 2017. 4. Per USGS estimates - https://www.usgs.gov/news/usgs-estimates-20-billion-barrels-oil-texas-wolfcamp-shaleformation. 3

Business anchored by long-lived, low-cost proved reserve base Year-end 2017 proved reserves totaled 181.5 MMBoe Reserve replacement ratio of 748% of produced reserves 1 Total proved reserves up 16% YoY, proved PV-10 (non-gaap) of $521 million 2 Total Proved Reserves Reserves by Commodity Proved PV-10 36% 40% 28% 1% 24% 63% 1% 32% 75% PDP PDNP PUD Oil NGLs Natural Gas PDP PDNP PUD Oil (MBbls) NGLs (MBbls) Natural Gas (MMcf) 3 Total (MBoe) PV-10 ($ MM) 2 PDP 13,661 23,132 175,780 66,089 $394.5 PDNP 192 48 421 310 $1.3 PUD 36,207 34,768 265,027 115,146 $125.2 Total Proved 50,060 57,948 441,228 181,545 $521.0 1. Reserve replacement ratio is based on extensions and discoveries of 33,307 Mboe divided by production of 4,452 and includes 1,319 MMcf related to field fuel 2. PV-10 calculated based on the first-of-the-month, 12-month average prices for oil, NGLs and natural gas, of $51.34 per Bbl of oil, $18.67 per Bbl of NGLs and $2.99 per MMBtu of natural gas. See PV-10 (unaudited) slide for reconciliation to GAAP measure. 3. The gas reserves contain 57,835 MMcf of gas that will be produced and used as field fuel (primarily for compressors and artificial lifts) before the gas is delivered to a sales point. 4

Strong track record of efficiently managing through price cycles Production Growth Reserve Growth 16.0 200 MBOE 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 MMBOE 180 160 140 120 100 80 60 40 20 0 NG Liquid NG Liquid 5

First quarter 2018 and other highlights Reaffirmed Revenue up 9% over first quarter prior year borrowing base of $325 million, completed on May 1, 2018 Produced 1,020 MBoe, or 11.3 MBoe/day in line with guidance Daily oil production growth, 3% quarter over quarter Completed 4 wells, 2 Pangea, performing above 700 MBoe Type Curve; 2 Pangea West in post-frac flowback and clean up Continued experimentation with completion techniques & specialized compounds yielding solid results benchmark Long Long term oil transportation & marketing agreement, Cushing based price for oil with fixed transportation fees term gas marketing & 95% POP processing agreement, fixed fuel & shrink & fixed NGL recoveries, no allocation principle used 6

First quarter 2018 well results Production Normalized to a 7,500' lateral and for operational downtime 7

First year cumulative production compared to 700 Mboe type curve New completion technique 3 wells completed 5/2017 2 in Project Pangea (B&C) & 1 in Pangea West (A) Average stage spacing 174 2,000 lbs./ft. average sand concentration Metal oxide nanoparticles pumped throughout stimulation treatment Production Normalized to a 7,500' lateral and for operational downtime First Quarter 2018 Results May 3, 2018 8

Pangea West science well First year cumulative production as compared to 700 MBOE type curve Production Normalized to a 7,500' lateral and for operational downtime 9

Strong recent well performance and risk of wide gas basis differentials support redeploying drilling capital from Project Pangea to Pangea West Illustrative type curve IRRs 45% Historical ($0.35)/Mcf gas differential Assumed ($1.75)/Mcf gas differential 40% 43% 35% Wellhead IRR 30% 25% 20% 30% 31% 24% 29% 15% 10% Pangea type curve $4.3mm D&C Pangea West type curve $4.3mm D&C Pangea type curve $4.3mm D&C Pangea West type curve $4.3mm D&C Pangea West science well $4.7mm D&C Redeploying capital to reduce gas price risk Assumes $65/bbl WTI price, $2.75/Mcf Henry Hub price and NGL price realization at 37% of WTI 10

2018 operational activity forecast 2018 Completion Schedule 1 2018 Highlights 6 5 Q1 Activity: Completed 4 wells 2 Pangea outperforming 700 Mboe type curve 2 Pangea West in post-frac flowback and clean up 6 DUCS at March 31, 2018 2018 organic oil growth of 8% YoY at midpoint of guidance Spud to TD in ~ 6 to 8 days Completions 4 3 2 $50MM - $70 MM CapEx budget CapEx primarily funded from operating cash flow Secured frac services with excellent equipment, competitive cost and reliability 1 0 Q1 Actual Q2 Q3 Q4 Base MidPoint 1. 2018 Completion schedule represents timing expectations for completed wells according to low and midpoint of annual guidance. 11

Approach continues to achieve one of the lowest cost structures while increasing well EUR in the Permian Basin AREX D&C Historical Track Record ($ MM) and Well EUR (MBOE) 800 50% reduction in well cost 55% improvement in EUR since 2011 $10.0 700 +700 MBOE $9.0 EUR MBOE 600 500 400 300 $8.6 $7.0 $5.8 $5.5 Well EUR $4.5 $4.3 $8.0 $7.0 $6.0 $5.0 $4.0 Well Cost $MM 200 $3.5 $3.0 $2.0 100 $1.0 0 2011 2012 2013 2014 2015 2016 2017 $0.0 12

Centralized infrastructure drives capital and operating efficiencies PANGEA WEST Reagan PW DCP Tap Receipt Point Receipt Point Irion Crockett Schleicher Owned Electrical Shannon West Sales Point SHANNON WEST Pit 2 AMISTAD PW CS #1 PW Pit AQUISITION GATHERING 228HA 204HA LACT PW Commingle PW Facility 5701 SWD Pit 1 NE 1 SWD Shannon NE Sales Point Alto SWD Facility BLK 50 Compressor Receipt Point Receipt Point Receipt Point JPE Energy BLK 45 DCP Tap Receipt Point BLK 45 N Compressors 1401 SWD BLK 45 S Compressors Baker CS Baker DCP Tap Water Recycling Center 329,000 Bbl Capacity Receipt Point LACT 1 2 NORTH & CENTRAL PANGEA BLK 42 CS 45-13 Recycle 42-14 Pit Facility Pit 42-15-7X SWD 3 1 2 2 Nabors 16-1 SWD Midway Truck Baker 42 Commingle 190 Station Station Facility Baker Pit LACT 42-21 Pit Pit 2 LACT Baker 1 2 Pit BLK 42 / CT DCP Tap Low pressure gas gathering system & high pressure gas lift system reduces downtime & stabilizes production declines, increasing profit margins Miscible gas flooding system in place, initial pilot program resulted in positive early time results, improved oil recovery methods could result in a substantial improvement to our liquid recoveries Produced water infrastructure & recycling facility reduces D&C & LOE cost Oil gathering system combined with long-term Cushing contract minimizes differential swings LACT Baker 101 SWD OZONA Jim Terry Pit CT Compressor West 2106 SWD Childress Pit DCP Processing Plants Moore Pit Elliott Facility Gas gathering lines Approach Bailey Compressor Childress Pit DCP Tap BLK 54 Pit BLK 54 Compressor SOUTH PANGEA Rousselot Pit DCP Tap Sutton 13

AREX is benefiting from commodity price appreciation Unhedged realized prices ($ per Boe) Q1 2018 Production Commodity Mix $70.00 $60.00 39% 27% $50.00 34% $40.00 Oil NGLs Natural Gas $30.00 $20.00 $10.00 Balanced production mix creates benefit from commodity price appreciation in all three streams. 2018 1Q unhedged cash margin 1 was $14.97 per Boe 2017 1Q unhedged cash margin 1 was $14.66 per Boe 2016 1Q unhedged cash margin 1 was $4.37 per Boe $- 242% improvement since 1Q 2016 1. Defined as unhedged revenue per Boe less LOE, production taxes, and cash G&A per Boe. 14

LOE cost reductions driven by water handling infrastructure and field-level operating efficiencies AREX LOE Historical Track Record ($/Boe) $7.00 $6.00 $6.48 $0.99 1 st Qtr. 2018 LOE driven by lease maintenance, winter related expenditures and facility repairs. LOE/BOE is expected to decrease from current levels in subsequent quarter. $5.24 $5.16 $5.00 $1.69 $0.95 $4.24 $4.23 $0.78 Pumpers & Supervision $4.00 $0.79 $0.62 $0.67 $1.56 Well Repairs, Workover & Maintenance $3.00 $1.90 $1.66 $0.95 $0.98 $2.00 $1.09 $0.87 $1.08 Water handling & other $1.00 $1.90 $1.84 $1.58 $1.71 $1.74 Compressor Rental & Repair $0.00 2014 2015 2016 2017 1Q 2018 15

Balance sheet detail at March 31, 2018 AREX Liquidity and Capitalization Borrowing base unanimously reaffirmed at $325 million on May 1, 2018 AREX Capitalization as of 3/31/2018 ($ MM) Cash $0.0 Credit Facility 290.4 7.0% Senior Notes due 2021 84.3 Total Long-Term Debt 1 $374.7 Shareholders Equity 600.2 Total Book Capitalization $974.9 Interest coverage ratio of 2.6x, above minimum 1.5x covenant requirement Current ratio of 1.8x, above minimum 1.0x covenant requirement 1. Long-term debt is net of debt issuance costs of $2.5 million as of March 31, 2018. AREX Liquidity as of 3/31/2018 ($MM) Borrowing Base $325.0 Cash and Cash Equivalents 0 Borrowings under Credit Facility (292.0) Undrawn Letters of Credit (0.3) Liquidity $32.7 AREX Debt Maturity Schedule ($ MM) $400.0 $300.0 No near-term debt maturities Revolving Credit Facility $292 $200.0 $100.0 7.0% Senior Notes $85.2 $0.0 2018 2019 2020 2021 16

Investment Highlights Concentrated geographic footprint in Permian Basin liquids-rich play, 100% operated 149,000 net acres, 181.5 MMBoe 60% liquids Large scale infrastructure system results in sustainable low cost operating expense & industry leading D&C cost structure Significant organic growth potential ~1,350 horizontal drilling locations across 3 Wolfcamp benches Continue to focus on right-sizing our balance sheet through continued debt reduction & operating substantially within cash-flow Enhanced completion design results in a 37% increase in well EUR s & improved ROR s Continue to focus on identifying, evaluating & executing strategic acquisition opportunities Large scale high pressure gas redelivery system for use in gas lift operations, can be used for secondary miscible gas flooding Results from pilot program encouraging 17

Appendix

2018 production and expense guidance Annual Guidance Production Guidance: Oil Production (MBbls) 1,150 1,250 NGLs (MBbls) 1,450 1,550 Natural Gas (MMcf) 9,600 10,200 Total 4,200 4,500 Cash operating costs (per Boe): Lease operating $4.50 - $5.50 Production and ad valorem taxes 8.25% of oil and gas revenues Cash general and administrative (per Boe) $4.50 - $5.50 Non-cash operating costs (per Boe): Non-cash general and administrative $0.50 - $1.00 Exploration $0.50 $1.00 Depletion, depreciation and amortization (per Boe) $16.00 - $17.00 Capital expenditures ($MM) ~$50 - $70 19

Current hedge summary Commodity and Period Contract Type Volume Transacted Contract Price Crude Oil April 2018 December 2018 Swap 300 Bbls/day $50.00/Bbl April 2018 June 2018 Collar 500 Bbls/day $55.00/Bbl - $60.00/Bbl April 2018 September 2018 Swap 1,500 Bbls/day $60.50/Bbl CMA Roll May 2018 December 2018 Swap 2,000 Bbls/day $0.66/Bbl Natural Gas April 2018 December 2018 Swap 200,000 MMBtu/month $3.085/MMBtu April 2018 December 2018 Swap 250,000 MMBtu/month $3.084/MMBtu NGLs (C2 - Ethane) April 2018 December 2018 Swap 1,000 Bbls/day $11.424/Bbl NGLs (C3 - Propane) April 2018 December 2018 Swap 600 Bbls/day $32.991/Bbl NGLs (IC4 - Isobutane) April 2018 December 2018 Swap 50 Bbls/day $38.262/Bbl NGLs (NC4 - Butane) April 2018 December 2018 Swap 200 Bbls/day $38.22/Bbl NGLs (C5 - Pentane) April 2018 December 2018 Swap 200 Bbls/day $56.364/Bbl 20

Enhanced Completion Techniques results in a 37% improvement in well EUR s 2Q 2015 4Q 2017 (36 Wolfcamp A, B & C Wells) All wells normalized to 7,500 lateral and for operation downtime 21

22

Adjusted net loss (unaudited) The amounts included in the calculation of adjusted net loss and adjusted net loss per diluted share below were computed in accordance with GAAP. We believe adjusted net loss and adjusted net loss per diluted share are useful to investors because they provide readers with a more meaningful measure of our profitability before recording certain items whose timing or amount cannot be reasonably determined. However, these measures are provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website. The following table provides a reconciliation of adjusted net loss to net loss for the three months ended March 31, 2018 and 2017. (in thousands, except per-share amounts) Three Months Ended March 31, 2018 2017 Net loss $ (7,446) $ (140,768) Adjustments for certain items: Non-cash fair value loss (gain) on derivatives 397 (4,405) Gain on debt extinguishment - (5,053) Write-off of deferred tax assets - 139,090 Tax effect and other discrete tax items(1) (13) 3,600 Adjusted net loss $ (7,062) $ (7,536) Adjusted net loss per diluted share $ (0.07) $ (0.11) (1) The estimated income tax impacts on adjustments to net loss are computed based upon a statutory rate of 21% and 35% for the three months ended March 31, 2018 and March 31, 2017, respectively. Additionally, this includes the tax impact of a tax shortfall related to share-based compensation of $0.1 million, and $0.3 million for the three months ended March 31, 2018, and March 31, 2017, respectively. 23

EBITDAX (unaudited) We define EBITDAX as net loss, plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) share-based compensation expense, (4) non-cash fair value loss (gain) on derivatives, (5) gain on debt extinguishment, (6) interest expense, net, and (7) income tax (benefit) provision. EBITDAX is not a measure of net income or cash flow as determined by GAAP. The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is presented herein and reconciled to the GAAP measure of net income because of its wide acceptance by the investment community as a financial indicator of a company's ability to internally fund development and exploration activities. This measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website. The following table provides a reconciliation of EBITDAX to net loss for the three months ended March 31, 2018 and 2017. (in thousands, except per-share amounts) Three Months Ended March 31, 2018 2017 Net loss $ (7,446) $ (140,768) Exploration - 1,043 Depletion, depreciation and amortization 15,680 17,962 Share-based compensation 828 1,159 Non-cash fair value loss (gain) on derivatives 397 (4,405) Gain on debt extinguishment - (5,053) Interest expense, net 5,886 5,463 Income tax (benefit) provision (1,610) 138,700 EBITDAX $ 13,735 $ 14,101 24

Unhedged cash margin (unaudited) We define unhedged cash margin as revenue, less cash operating expenses. We define cash operating expenses as operating expenses, excluding (1) exploration expense, (2) depletion, depreciation and amortization expense, and (3) share-based compensation expense. Unhedged cash margin and cash operating expenses are not measures of operating income or cash flows as determined by GAAP. The amounts included in the calculations of unhedged cash margin and cash operating expenses were computed in accordance with GAAP. Unhedged cash margin and cash operating expenses are presented herein and reconciled to the GAAP measures of revenue and operating expenses. We use unhedged cash margin and cash operating expenses as an indicator of the Company s profitability and ability to manage its operating income and cash flows. This measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website. The following table provides a reconciliation of unhedged cash margin and cash operating expenses to revenues and operating expenses for the three months ended March 31, 2018 and 2017. (in thousands, except per Boe amounts) Revenues $ Production (Mboe) Average realized price (per Boe) $ Three Months Ended March 31, 2018 2017 28,772 $ 26,355 1,020 1,027 28.21 $ 25.67 Operating expenses $ Exploration Depletion, depreciation and amortization Share-based compensation Cash operating expenses $ Cash operating expenses (per Boe) $ $ 30,015 31,460 - (1,043) (15,680) (17,962) (828) (1,159) $ 13,507 11,296 $ 13.24 10.99 Unhedged cash margin $ 15,265 $ 15,059 Unhedged cash margin (per Boe) $ 14.97 $ 14.68 25

PV-10 (unaudited) The present value of our proved reserves, discounted at 10% ( PV-10 ), was estimated at $521 million at December 31, 2017, and was calculated based on the first-of-the-month, twelve-month average prices for oil, NGLs and gas, of $51.34 per Bbl of oil, $18.67 per Bbl of NGLs and $2.99 per MMBtu of natural gas, adjusted for basis differentials, grade and quality. 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 following table reconciles PV-10 to our standardized measure of discounted future net cash flows, the most directly comparable measure calculated and presented in accordance with GAAP. PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP. (in millions) December 31, 2017 PV-10 $ 521.0 Less income taxes: Undiscounted future income taxes (323.3) 10% discount factor 263.3 Future discounted income taxes (60.2) Standardized measure of discounted future net cash flows $ 461.0 At NYMEX strip pricing at December 31, 2017, PV-10 is $582.2 million. The following table summarizes the NYMEX strip prices at December 31, 2017. 2018 2019 2020 2021 2022 (1) Oil (per Bbl) $ 59.55 $ 56.19 $ 53.76 $ 52.29 $ 51.67 Natural Gas (per MMBtu) $ 2.84 $ 2.81 $ 2.82 $ 2.85 $ 2.89 1. Subsequent year prices were held flat for the remaining lives of the properties 2. NGLs prices per Bbl were estimated at 40% of the oil strip price 26

Contact information SUZANNE OGLE Vice President Investor Relations & Corporate Communication 817.989.9000 ir@approachresources.com www.approachresources.com