AREX
Posted: Fri Aug 02, 2013 8:53 pm
Approach Resources (AREX): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
Q2 results came in above my forecast. The stock was down today because they said 2013 production growth would be at the lower end of their guidance. Still 20% to 25% annual production growth ain't bad.
Small-caps get hammered when they lower production guidance.
The lowered guidance is caused by delays in 3rd party gathering / processing facilities. Well results are rock solid and AREX has thousands of low risk development locations in the Permian Basin.
BTW increased oil prices will more than make up for slightly less production in the 2nd half and eventually the midstream companies will catch up. I look for AREX to rebound on Monday after analysts update their forecast models.
Q2 results came in above my forecast. The stock was down today because they said 2013 production growth would be at the lower end of their guidance. Still 20% to 25% annual production growth ain't bad.
Small-caps get hammered when they lower production guidance.
The lowered guidance is caused by delays in 3rd party gathering / processing facilities. Well results are rock solid and AREX has thousands of low risk development locations in the Permian Basin.
BTW increased oil prices will more than make up for slightly less production in the 2nd half and eventually the midstream companies will catch up. I look for AREX to rebound on Monday after analysts update their forecast models.