Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves.
The last earnings update was 134 days ago.
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Approach Resources. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Approach Resources's earnings available for a low price, and how does
this compare to other companies in the same industry?
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Approach Resources has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
expected to grow at an
Unable to compare Approach Resources's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare Approach Resources's earnings growth to the Germany market average as no estimate data is available.
Unable to compare Approach Resources's revenue growth to the Germany market average as no estimate data is available.
Unable to determine if Approach Resources is high growth as no earnings estimate data is available.
Unable to determine if Approach Resources is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Approach Resources's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Oil and Gas
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Approach Resources's finances.
The net worth of a company is the difference between its assets and liabilities.
Approach Resources's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Approach Resources's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Approach Resources's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is not covered by short term assets, assets are 0x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Sergei Krylov has been Chief Executive Officer of Approach Resources, Inc. since April 8, 2019 and served as its Chief Financial Officer since January 03, 2014 until September 26, 2019 and also serves as its President since September 26, 2019. He served as Executive Vice President of Approach Resources, Inc. from January 03, 2014 to April 8, 2019. Mr. Krylov has oil and gas industry finance experience from J.P. Morgan's Energy Investment Banking group. While at J.P. Morgan, he advised clients on strategic planning, mergers and acquisitions and capital market transactions. From 2000 to 2013, Mr. Krylov worked at J.P. Morgan Securities LLC in the Energy Investment Banking group, where he served as Managing Director. Mr. Krylov holds a Bachelor of Business Administration in Finance, summa cum laude, from Pace University.
Sergei's compensation has been consistent with company performance over the past year, both up more than 20%.
Sergei's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Approach Resources management team is less than 2 years, this suggests a new team.
CEO & President
Executive Vice President of Finance & Accounting
Executive Vice President of Operations
Executive Vice President of Legal & Secretary
Chief Operations Geologist
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Approach Resources board of directors is about average.
Board of Directors
Independent Chairman of the Board
Lead Independent Director
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves. The company’s properties are primarily located in the Permian Basin in west Texas. It also owns interests in east Texas Basin. As of December 31, 2018, its estimated proved reserves were 180.1 million barrels of oil equivalent located in Crockett and Schleicher counties, Texas. The company also owned and operated 813 producing oil and gas wells in the Permian Basin. Approach Resources, Inc. was incorporated in 2002 and is headquartered in Fort Worth, Texas. On November 18, 2019, Approach Resources, Inc. filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. It is in joint administration with Approach Midstream Holdings LLC.
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