Approach Resources Inc. Reports Q4 EPS of $0.13 vs. $0.10

Approach Resources Inc. AREX today reported financial and operating results for the fourth quarter and year ended December 31, 2010. Highlights for the year ended December 31, 2010, include:

Net income for the fourth quarter of 2010 was $261,000, or $0.01 per diluted share, on revenues of $16.3 million, compared to net loss of $2.3 million, or $0.11 per diluted share, on revenues of $11.9 million, for the fourth quarter of 2009. The $4.4 million increase in revenues in the fourth quarter of 2010 is primarily attributable to an increase in production volumes, and specifically an increase in oil and NGL production volumes.

Net income for fourth quarter of 2010 included an impairment of unproved properties of $2.6 million related to our Boomerang project in Southwest Kentucky, a realized gain on commodity derivatives of $2.2 million and an unrealized loss on commodity derivatives of $2.1 million.

Excluding the impairment of unproved properties, unrealized loss on commodity derivatives and related income taxes, adjusted net income (non-GAAP) for the fourth quarter of 2010 was $3.4 million, or $0.13 per diluted share, compared to adjusted net income of $539,000, or $0.03 per diluted share, for the fourth quarter of 2009.