Global Hunter Securities Adjusts AREX Estimates

Global Hunter Securities is making some estimate adjustments on shares of Approach Resources, Inc. AREX. “We are adjusting our estimates slightly to reflect 1Q11 operating results,” Global Hunter Securities writes. “Our new 2011 EPS, CFPS, and EBITDA are $0.75, $2.92, and $90.6MM versus previous estimates of $0.77, $2.87, and $88.5MM, respectively. “Our 2011 production estimate is 2.55 MMboe, which is slightly above company guidance of 2.30 to 2.45 MMBoe. We expect guidance to move our direction with continued success in the play. Our $32 price target is based on 10x 1Q12 EBITDAX (ttm) less projected net debt. The company is currently trading at 8.2x 2011 EBITDAX and 6.1x 2012.” Approach Resources closed Thursday at $23.00.