Approach Resources, Inc., an independent energy company, focuses on the acquisition, exploration, development, and production of unconventional oil and gas reserves.
+ 1 more risk
Overvalued with worrying balance sheet.
Share Price & News
How has Approach Resources's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AREX.Q's share price has been volatile over the past 3 months.
7 Day Return
US Oil and Gas
1 Year Return
US Oil and Gas
Return vs Industry: AREX.Q underperformed the US Oil and Gas industry which returned -36.3% over the past year.
Return vs Market: AREX.Q underperformed the US Market which returned 3.7% over the past year.
Price Volatility Vs. Market
How volatile is Approach Resources's share price compared to the market and industry in the last 5 years?
Simply Wall St News
7 months ago | Simply Wall StDo Directors Own Approach Resources, Inc. (NASDAQ:AREX) Shares?
8 months ago | Simply Wall StDid You Manage To Avoid Approach Resources's (NASDAQ:AREX) 99% Share Price Wipe Out?
10 months ago | Simply Wall StIs Approach Resources (NASDAQ:AREX) A Risky Investment?
Is Approach Resources undervalued compared to its fair value and its price relative to the market?
Price to Book (PB) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate AREX.Q's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate AREX.Q's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: AREX.Q is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: AREX.Q is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate AREX.Q's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: AREX.Q is good value based on its PB Ratio (0x) compared to the US Oil and Gas industry average (0.6x).
How is Approach Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
Forecasted Energy industry annual growth in earnings
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 SimplyWall St do have past financial data.
- Take a look at our analysis of AREX.Q’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Approach Resources's filings and announcements here.
- Explore growth companies in the Energy industry.
How has Approach Resources performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AREX.Q is currently unprofitable.
Growing Profit Margin: AREX.Q is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: AREX.Q is unprofitable, and losses have increased over the past 5 years at a rate of -3.3% per year.
Accelerating Growth: Unable to compare AREX.Q's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: AREX.Q is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-19.8%).
Return on Equity
High ROE: AREX.Q has a negative Return on Equity (-9.03%), as it is currently unprofitable.
How is Approach Resources's financial position?
Financial Position Analysis
Short Term Liabilities: AREX.Q's short term assets ($15.4M) do not cover its short term liabilities ($433.9M).
Long Term Liabilities: AREX.Q's short term assets ($15.4M) do not cover its long term liabilities ($81.4M).
Debt to Equity History and Analysis
Debt Level: AREX.Q's debt to equity ratio (75.3%) is considered high.
Reducing Debt: AREX.Q's debt to equity ratio has increased from 45.6% to 75.3% over the past 5 years.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: AREX.Q has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: AREX.Q has less than a year of cash runway if free cash flow continues to grow at historical rates of 53.6% each year.
What is Approach Resources's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate AREX.Q's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate AREX.Q's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if AREX.Q's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if AREX.Q's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of AREX.Q's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Sergei Krylov (42yo)
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 ...
CEO Compensation Analysis
Compensation vs Market: Sergei's total compensation ($USD1.29M) is above average for companies of similar size in the US market ($USD595.62K).
Compensation vs Earnings: Sergei's compensation has been consistent with company performance over the past year.
|CEO & President||1.08yrs||US$1.29m||0.43% $2.8k|
|Executive Vice President of Finance & Accounting||0.67yr||no data||0.057% $359.4|
|Executive Vice President of Operations||0.67yr||no data||0.29% $1.9k|
|Executive Vice President of Legal & Secretary||4.33yrs||no data||0.13% $853.7|
|Chief Operations Geologist||0.67yr||no data||no data|
Experienced Management: AREX.Q's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.
|Independent Chairman of the Board||1.08yrs||US$167.00k||0.23% $1.5k|
|Independent Director||9.75yrs||US$166.50k||0.14% $900.9|
|Lead Independent Director||5.5yrs||US$196.00k||0.18% $1.2k|
|Independent Director||3.33yrs||US$156.99k||0.093% $591.4|
Experienced Board: AREX.Q's board of directors are considered experienced (4.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Approach Resources, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Approach Resources, Inc.
- Ticker: AREX.Q
- Exchange: OTCPK
- Founded: 2002
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$635.423k
- Shares outstanding: 90.77m
- Website: https://www.approachresources.com
Number of Employees
- Approach Resources, Inc.
- One Ridgmar Centre
- 6500 West Freeway
- Fort Worth
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AREX.Q||OTCPK (Pink Sheets LLC)||Yes||Common Stock||US||USD||Nov 2007|
|3OX||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Nov 2007|
|3OX||BST (Boerse-Stuttgart)||Yes||Common Stock||DE||EUR||Nov 2007|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/05/25 03:36|
|End of Day Share Price||2020/05/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.