AREX - Approach Resources: Low Permian Gas Prices Add To Its Issues
Approach Resources (AREX) is facing the additional complication of very low Permian natural gas prices. Given that natural gas makes up a high percentage of its total production, this is negating the effect of improving oil prices on its results.
Approach Resources' leverage (based on the trailing four quarters) may be at 7.0x at the end of Q1 2019 and could potentially reach around 8.6x at the end of Q3 2019 based on strip prices. Its credit facility is a major issue and it needs to probably reduce its debt by over 60%