Approach Resources (AREXQ) 10-Q 6 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 31, 2014
Document And Entity Information [Abstract]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Trading Symbol	'AREX	'
Entity Registrant Name	'Approach Resources Inc	'
Entity Central Index Key	'0001405073	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	39,555,379

Unaudited_Consolidated_Balance

Unaudited Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS:	'	'
Cash and cash equivalents	$1,634	$58,761
Restricted cash	'	7,350
Accounts receivable:	'	'
Joint interest owners	71	158
Oil, NGL and gas sales	20,868	22,871
Unrealized gain on commodity derivatives	2,395	'
Prepaid expenses and other current assets	690	592
Deferred income taxes - current	'	681
Total current assets	25,658	90,413
PROPERTIES AND EQUIPMENT:	'	'
Oil and gas properties, at cost, using the successful efforts method of accounting	1,614,660	1,320,195
Furniture, fixtures and equipment	5,209	2,537
Total oil and gas properties and equipment	1,619,869	1,322,732
Less accumulated depletion, depreciation and amortization	-353,565	-275,702
Net oil and gas properties and equipment	1,266,304	1,047,030
Unrealized gain on commodity derivatives	1,018	'
Other assets	9,188	8,041
Total assets	1,302,168	1,145,484
CURRENT LIABILITIES:	'	'
Accounts payable	33,102	38,575
Oil, NGL and gas sales payable	9,708	6,101
Accrued liabilities	57,557	37,918
Deferred income taxes - current	1,198	'
Unrealized loss on commodity derivatives	338	1,847
Total current liabilities	101,903	84,441
NON-CURRENT LIABILITIES:	'	'
Senior secured credit facility	89,500	0
Senior notes	250,000	250,000
Deferred income taxes	106,594	91,883
Unrealized loss on commodity derivatives	31	315
Asset retirement obligations	9,054	8,350
Total liabilities	557,082	434,989
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' EQUITY:	'	'
Preferred stock, $0.01 par value, 10,000,000 shares authorized none outstanding	0	0
Common stock, $0.01 par value, 90,000,000 shares authorized, 39,337,147 and 39,047,699 issued and outstanding, respectively	391	390
Additional paid-in capital	570,642	565,237
Retained earnings	174,053	144,868
Total stockholders' equity	745,086	710,495
Total liabilities and stockholders' equity	$1,302,168	$1,145,484

Unaudited_Consolidated_Balance1

Unaudited Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.01	$0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	90,000,000	90,000,000
Common stock, issued	39,337,147	39,047,699
Common stock, outstanding	39,337,147	39,047,699

Unaudited_Consolidated_Stateme

Unaudited Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
REVENUES:	'	'	'	'
Oil, NGL and gas sales	$68,124	$44,196	$203,459	$122,737
EXPENSES:	'	'	'	'
Lease operating	7,665	4,370	23,462	13,746
Production and ad valorem taxes	3,335	3,167	12,429	8,791
Exploration	891	1,193	3,595	2,010
General and administrative	7,675	6,171	23,612	17,810
Depletion, depreciation and amortization	25,959	19,413	78,138	54,951
Total expenses	45,525	34,314	141,236	97,308
OPERATING INCOME	22,599	9,882	62,223	25,429
OTHER:	'	'	'	'
Interest expense, net	-5,442	-5,179	-15,936	-8,859
Equity in income (losses) of investee	'	340	-186	160
Realized loss on commodity derivatives	-764	-840	-5,423	-1,247
Unrealized gain (loss) on commodity derivatives	18,810	-3,438	5,206	-3,248
Other expense	'	'	-109	'
INCOME BEFORE INCOME TAX PROVISION	35,203	765	45,775	12,235
INCOME TAX PROVISION	12,756	270	16,590	4,300
NET INCOME	$22,447	$495	$29,185	$7,935
EARNINGS PER SHARE:	'	'	'	'
Basic	$0.57	$0.01	$0.74	$0.20
Diluted	$0.57	$0.01	$0.74	$0.20
WEIGHTED AVERAGE SHARES OUTSTANDING:	'	'	'	'
Basic	39,363,441	39,011,555	39,325,552	38,980,971
Diluted	39,379,779	39,032,813	39,340,961	39,002,731

Unaudited_Consolidated_Stateme1

Unaudited Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
OPERATING ACTIVITIES:	'	'
Net income	$29,185	$7,935
Adjustments to reconcile net income to cash provided by operating activities:	'	'
Depletion, depreciation and amortization	78,138	54,951
Amortization of loan origination fees	1,151	617
Unrealized (gain) loss on commodity derivatives	-5,206	3,248
Exploration expense	3,595	2,010
Share-based compensation expense	5,726	5,389
Deferred income taxes	16,590	4,300
Equity in losses (income) of investee	186	-160
Changes in operating assets and liabilities:	'	'
Accounts receivable	2,090	-2,630
Prepaid expenses and other current assets	-169	342
Accounts payable	-5,793	15,300
Oil, NGL and gas sales payable	3,607	491
Accrued liabilities	19,130	27,203
Cash provided by operating activities	148,230	118,996
INVESTING ACTIVITIES:	'	'
Additions to oil and gas properties	-297,122	-221,514
Contribution to equity method investment	-186	-8,279
Change in restricted cash	7,350	'
Additions to furniture, fixtures and equipment, net	-2,672	-394
Cash used in investing activities	-292,630	-230,187
FINANCING ACTIVITIES:	'	'
Borrowings under credit facility	231,421	129,059
Repayment of amounts outstanding under credit facility	-141,921	-235,950
Proceeds from issuance of senior notes	'	242,746
Loan origination fees	-2,227	58
Cash provided by financing activities	87,273	135,913
CHANGE IN CASH AND CASH EQUIVALENTS	-57,127	24,722
CASH AND CASH EQUIVALENTS, beginning of period	58,761	767
CASH AND CASH EQUIVALENTS, end of period	1,634	25,489
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:	'	'
Cash paid for interest	10,529	3,045
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTION:	'	'
Asset retirement obligations capitalized	$428	$416

Summary_of_Significant_Account

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	1. Summary of Significant Accounting Policies
	Organization and Nature of Operations
	Approach Resources Inc. (“Approach,” the “Company,” “we,” “us” or “our”) is an independent energy company engaged in the exploration, development, production and acquisition of oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Our properties are primarily located in the Permian Basin in West Texas. We also own interests in the East Texas Basin.
	Consolidation, Basis of Presentation and Significant Estimates
	The interim consolidated financial statements of the Company are unaudited and contain all adjustments (consisting primarily of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full year due in part to the volatility in prices for oil, NGLs and gas, future commodity prices for commodity derivative contracts, global economic and financial market conditions, interest rates, access to sources of liquidity, estimates of reserves, drilling risks, geological risks, transportation restrictions, the timing of acquisitions, product supply and demand, market competition and interruptions of production. You should read these consolidated interim financial statements in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 25, 2014.
	The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. Significant assumptions are required in the valuation of proved oil and gas reserves, which affect our estimate of depletion expense as well as our impairment analyses. Significant assumptions also are required in our estimation of accrued liabilities, commodity derivatives, income tax provision, share-based compensation and asset retirement obligations. It is at least reasonably possible these estimates could be revised in the near term, and these revisions could be material. Certain prior-year amounts have been reclassified to conform to current-year presentation. These classifications have no impact on the net income reported.
	Recent Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that raised the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the updated standard, a discontinued operation is (i) a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. This update is aimed at reducing the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. This accounting standards update is effective for annual reporting periods beginning on or after December 15, 2014, and will be applied prospectively. The Company is evaluating the impact of this new guidance and does not expect it to have a significant impact on the consolidated financial statements.
	In May 2014, the FASB issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance is effective retrospectively for annual reporting periods beginning on or after December 15, 2016, with early application not permitted. The Company is evaluating our existing revenue recognition policies to determine whether any contracts will be affected by the new requirements.

Equity_Method_Investment

Equity Method Investment	9 Months Ended
	Sep. 30, 2014
Equity Method Investments and Joint Ventures [Abstract]	'
Equity Method Investment	'
	2. Equity Method Investment
	In September 2012, we entered into a joint venture to build an oil pipeline in Crockett and Reagan Counties, Texas, which is used to transport our oil to market. In October 2012, we made an initial contribution of $10 million to the joint venture for pipeline and facilities construction, and in 2013, we contributed $8.3 million to the joint venture for pipeline and facilities construction. Our contributions are recorded at cost and are included in investing activities under “Contribution to equity method investment” on our consolidated statements of cash flows. Our share of the investee’s earnings was recorded on our consolidated statement of operations for the three and nine month periods ended September 30, 2013. In October 2013, we completed the sale of the joint venture, and net proceeds to Approach at closing totaled approximately $109.1 million, after deducting our share of transactional costs paid at closing. Of the $109.1 million in proceeds, $7.4 million was restricted pursuant to an escrow agreement. The escrow agreement terminated on June 1, 2014, and the cash held in escrow was subsequently released. We incurred $0.2 million in post-closing working capital adjustments during the nine months ended September 30, 2014.

Earnings_Per_Common_Share

Earnings Per Common Share	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Earnings Per Common Share	'
	3. Earnings Per Common Share
	We report basic earnings per common share, which excludes the effect of potentially dilutive securities, and diluted earnings per common share, which includes the effect of all potentially dilutive securities unless their impact is antidilutive. The following table provides a reconciliation of the numerators and denominators of our basic and diluted earnings per share (dollars in thousands, except per-share amounts).
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Income (numerator):
	Net income – basic	$	22,447	$	495	$	29,185	$	7,935
	Weighted average shares (denominator):
	Weighted average shares – basic		39,363,441		39,011,555		39,325,552		38,980,971
	Dilution effect of share-based compensation, treasury method		16,338		21,258		15,409		21,760
	Weighted average shares – diluted		39,379,779		39,032,813		39,340,961		39,002,731
	Net income per share:
	Basic	$	0.57	$	0.01	$	0.74	$	0.2
	Diluted	$	0.57	$	0.01	$	0.74	$	0.2

LongTerm_Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Long-Term Debt	'
	4. Long-Term Debt
	The following table provides a summary of our long-term debt at September 30, 2014, and December 31, 2013 (in thousands).
			September 30,		December 31,
			2014		2013
	Senior secured credit facility		$	89,500	$	—
	Senior notes			250,000		250,000
	Total long-term debt		$	339,500	$	250,000
	Revolving Credit Facility
	At September 30, 2014, the borrowing base and aggregate lender commitments under our amended and restated senior secured revolving credit facility (the “Credit Facility”) was $450 million, with maximum commitments from the lenders of $1 billion and a maturity date of May 7, 2019. The borrowing base is redetermined semi-annually in April and October based on our oil, NGL and gas reserves. We, or the lenders, can each request one additional borrowing base redetermination each calendar year.
	Borrowings under the Credit Facility bear interest based on the agent bank’s prime rate plus an applicable margin ranging from 0.50% to 1.50%, or the sum of the LIBOR rate plus an applicable margin ranging from 1.50% to 2.50%. In addition, we pay an annual commitment fee ranging from 0.375% to 0.50% of unused borrowings available under the Credit Facility. Margins vary based on the borrowings outstanding compared to the aggregate commitments of the lenders.
	We had outstanding borrowings of $89.5 million under our Credit Facility at September 30, 2014, compared to no outstanding borrowings at December 31, 2013. The weighted average interest rate applicable to borrowings under our Credit Facility for the nine months ended September 30, 2014, was 1.4%. We had outstanding unused letters of credit under our Credit Facility totaling $0.3 million at September 30, 2014, and December 31, 2013, which reduce amounts available for borrowing under our Credit Facility.
	Obligations under the Credit Facility are secured by mortgages on substantially all of the oil and gas properties of the Company and its subsidiaries. The Company is required to maintain liens covering the oil and gas properties of the Company and its subsidiaries representing at least 80% of the total value of all oil and gas properties of the Company and its subsidiaries.
	On November 4, 2014, we entered into a first amendment to the Credit Facility, which, among other things, (a) increases the borrowing base to $600 million from $450 million, (b) maintains the aggregate commitments of the lenders at $450 million and (c) provides for the applicable margin or interest rate to be paid based on utilization of borrowing base, rather than utilization of aggregate commitments of the lenders.
	Covenants
	Our Credit Facility contains two principal financial covenants:
		•		a consolidated modified current ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of not less than 1.0 to 1.0 as of the last day of any fiscal quarter, and
		•		a consolidated interest coverage ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of consolidated EBITDAX to interest of not less than 2.5 to 1.0 as of the last day of any fiscal quarter.
	Our Credit Facility also contains covenants restricting cash distributions and other restricted payments, transactions with affiliates, incurrence of other debt, consolidations and mergers, the level of operating leases, asset sales, investment in other entities and liens on properties.
	In addition, the obligations of the Company may be accelerated upon the occurrence of an Event of Default (as defined in the Credit Facility). Events of Default include customary events for a financing agreement of this type, including, without limitation, payment defaults, the inaccuracy of representations and warranties, defaults in the performance of affirmative or negative covenants, defaults on other indebtedness of the Company or its subsidiaries, bankruptcy or related defaults, defaults related to judgments and the occurrence of a Change of Control (as defined in the Credit Facility), which includes instances where a third party becomes the beneficial owner of more than 50% of the Company’s outstanding equity interests entitled to vote.
	Senior Notes
	In June 2013, we completed our public offering of $250 million principal amount of 7% Senior Notes due 2021 (the “Senior Notes”). Annual interest on the Senior Notes is $17.5 million, payable semi-annually on June 15 and December 15.
	We issued the Senior Notes under a senior indenture dated June 11, 2013, as supplemented by a supplemental indenture of even date, among the Company, our subsidiary guarantors and Wells Fargo Bank, National Association, as trustee.
	On and after June 15, 2016, we may redeem some or all of the Senior Notes at specified redemption prices, plus accrued and unpaid interest to the redemption date. Before June 15, 2016, we may redeem up to 35% of the Senior Notes at a redemption price of 107% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings. In addition, before June 15, 2016, we may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date. If we sell certain of our assets or experience specific kinds of changes of control, we may be required to offer to purchase the Senior Notes from holders. The Senior Notes are fully and unconditionally guaranteed on a senior unsecured basis by each of our subsidiaries, subject to certain customary release provisions. A subsidiary guarantor may be released from its obligations under the guarantee:
		•		in connection with any sale or other disposition of all or substantially all of the assets of that guarantor (including by way of merger or consolidation) to a person that is not (either before or after giving effect to such transaction) the Company or a subsidiary guarantor, if the sale or other disposition otherwise complies with the indenture;
		•		in connection with any sale or other disposition of the capital stock of that guarantor to a person that is not (either before or after giving effect to such transaction) the Company or a subsidiary guarantor, if that guarantor no longer qualifies as a subsidiary of the Company as a result of such disposition and the sale or other disposition otherwise complies with the indenture;
		•		if the Company designates any restricted subsidiary that is a guarantor to be an unrestricted subsidiary in accordance with the indenture;
		•		upon defeasance or covenant defeasance of the notes or satisfaction and discharge of the indenture, in each case, in accordance with the indenture;
		•		upon the liquidation or dissolution of that guarantor, provided that no default or event of default occurs under the indenture as a result thereof or shall have occurred and is continuing; or
		•		in the case of any restricted subsidiary that, after the issue date of the notes, is required under the indenture to guarantee the notes because it becomes a guarantor of indebtedness issued or an obligor under a credit facility with respect to the Company and/or its subsidiaries, upon the release or discharge in full from its (i) guarantee of such indebtedness or (ii) obligation under such credit facility, in each case, which resulted in such restricted subsidiary’s obligation to guarantee the notes.
	The Indenture restricts our ability, among other things, to (i) sell certain assets, (ii) pay distributions on, redeem or repurchase, equity interests, (iii) incur additional debt, (iv) make certain investments, (v) enter into transactions with affiliates, (vi) incur liens and (vii) merge or consolidate with another company. These restrictions are subject to a number of important exceptions and qualifications. If at any time the Senior Notes are rated investment grade by both Moody’s Investors Service and Standard & Poor’s Ratings Services and no default (as defined in the Indenture) has occurred and is continuing, many of these restrictions will terminate. The Indenture contains customary events of default.
	Subsidiary Guarantors
	The Senior Notes are guaranteed on a senior unsecured basis by each of our consolidated subsidiaries. Approach Resources Inc. is a holding company with no independent assets or operations. The subsidiary guarantees are full and unconditional and joint and several, and any subsidiaries of the Company other than the subsidiary guarantors are minor. There are no significant restrictions on the Company’s ability, or the ability of any subsidiary guarantor, to obtain funds from its subsidiaries through dividends, loans, advances or otherwise.
	At September 30, 2014, we were in compliance with all of our covenants, and there were no existing defaults or events of default, under our debt instruments.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	5. Commitments and Contingencies
	Our contractual obligations include long-term debt, daywork drilling contracts, operating lease obligations, asset retirement obligations and employment agreements with our executive officers. On January 3, 2014, we entered into an employment agreement with Sergei Krylov as the Company’s Executive Vice President and Chief Financial Officer. Our maximum commitment under this employment agreement, which would apply if Mr. Krylov were terminated without cause, is $1.3 million. In August 2014, we extended our existing gas purchase and processing agreement with DCP Midstream, LP through August 2023. In October 2014, we extended two daywork drilling contracts through March 2015 and September 2015, respectively, with aggregate contractual obligations of approximately $12 million. We have retained a third drilling rig contracted on a well-to-well basis. Since December 31, 2013, there have been no other material changes to our contractual obligations.
	We are involved in various legal and regulatory proceedings arising in the normal course of business. While we cannot predict the outcome of these proceedings with certainty, we do not believe that an adverse result in any pending legal or regulatory proceeding, individually or in the aggregate, would be material to our consolidated financial condition or cash flows.

Income_Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	6. Income Taxes
	The effective income tax rate for the three and nine months ended September 30, 2014, was 36.2%. Total income tax expense for the three and nine months ended September 30, 2014, differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due primarily to state taxes.
	The effective income tax rates for the three and nine months ended September 30, 2013, were 35.3% and 35.1%, respectively. Total income tax expense for the three and nine months ended September 30, 2013, differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due primarily to state taxes and the impact of permanent differences between book and taxable income.

Fair_Value_of_Financial_and_De

Fair Value of Financial and Derivative Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

'

Fair Value of Financial and Derivative Instruments

'

7. Fair Value of Financial and Derivative Instruments

During the three months ended September 30, 2014, we converted a two-way crude oil collar covering 500 Bbls per day for 2015 with a long put of $84.00/bbl and a short call of $91.00/bbl to a three-way crude oil collar with a short put at $75.00/bbl, a long put at $84.00/bbl and a short call at $94.00/bbl. A three-way collar consists of a short put option contract (the lower price), a long put option contract (the middle price) and a short call option contract (the higher price). This type of instrument provides a higher ceiling price as compared to a two-way collar and limits downside risk to the market price plus the difference between the middle price and the lower price if the market price drops below the lower price. The following table provides our outstanding commodity derivative positions at September 30, 2014.

Commodity and Period

Contract

Volume

Contract Price

Type

Transacted

Crude Oil

October 2014 – December 2014

Collar

550 Bbls/d

$90.00/Bbl - $105.50/Bbl

October 2014 – December 2014

Collar

950 Bbls/d

$85.05/Bbl - $95.05/Bbl

October 2014 – December 2014

Collar

2,000 Bbls/d

$89.00/Bbl - $98.85/Bbl

October 2014 – March 2015

Collar

1,500 Bbls/d

$85.00/Bbl - $95.30/Bbl

January 2015 – December 2015

Collar

2,100 Bbls/d

$84.00/Bbl - $91.00/Bbl

January 2015 – December 2015

Collar

1,000 Bbls/d

$90.00/Bbl - $102.50 Bbl

January 2015 – December 2015

Three-Way Collar

500 Bbls/d

$75.00/Bbl - $84.00/Bbl

- $94.00/Bbl

Natural Gas Liquids

Propane

October 2014 – December 2014

Swap

500 Bbls/d

$41.16/Bbl

Natural Gasoline

October 2014 – December 2014

Swap

175 Bbls/d

$83.37/Bbl

Natural Gas

October 2014 – December 2014

Swap

360,000 MMBtu/month

$4.18/MMBtu

October 2014 – December 2014

Swap

35,000 MMBtu/month

$4.29/MMBtu

Commodity and Period

Contract

Volume Transacted

Contract Price

Type

October 2014 – December 2014

Swap

160,000 MMBtu/month

$4.40/MMBtu

October 2014 – June 2015

Collar

80,000 MMBtu/month

$4.00/MMBtu - $4.74/MMBtu

January 2015 – December 2015

Swap

200,000 MMBtu/month

$4.10/MMBtu

January 2015 – December 2015

Collar

130,000 MMBtu/month

$4.00/MMBtu - $4.25/MMBtu

Subsequent to September 30, 2014, we converted a two-way crude oil collar covering 500 Bbls per day for 2015 with a long put of $84.00/bbl and a short call of $91.00/bbl to a three-way crude oil collar with a short put at $75.00/bbl, a long put at $84.00/bbl and a short call at $95.00/bbl.

The following table summarizes the fair value of our open commodity derivatives as of September 30, 2014, and December 31, 2013 (in thousands).

Asset Derivatives

Liability Derivatives

Balance Sheet

Balance Sheet

Location

Fair Value

Location

Fair Value

September 30,

December 31,

September 30,

December 31,

2014

2013

2014

2013

Derivatives not designated as hedging instruments

Commodity derivatives

Unrealized

$

3,413

$

9,108

Unrealized

$

369

$

11,270

gain on

loss on

commodity

commodity

derivatives

derivatives

The following table summarizes the change in the fair value of our commodity derivatives (in thousands).

Income Statement

Three Months Ended

Nine Months Ended

Location

September 30,

September 30,

2014

2013

2014

2013

Derivatives not designated as hedging instruments

Commodity derivatives

Realized loss on commodity

$

(764

)

$

(840

)

$

(5,423

)

$

(1,247

)

derivatives

Unrealized gain(loss) on

18,810

(3,438

)

5,206

(3,248

)

commodity derivatives

$

18,046

$

(4,278

)

$

(217

)

$

(4,495

)

Unrealized gains and losses, at fair value, are included on our consolidated balance sheets as current or non-current assets or liabilities based on the anticipated timing of cash settlements under the related contracts. Changes in the fair value of our commodity derivative contracts are recorded in earnings as they occur and included in other income (expense) on our consolidated statements of operations. We estimate the fair values of swap contracts based on the present value of the difference in exchange-quoted forward price curves and contractual settlement prices multiplied by notional quantities. We internally valued the option contracts using industry-standard option pricing models and observable market inputs. We use our internal valuations to determine the fair values of the contracts that are reflected on our consolidated balance sheets. Realized gains and losses are also included in other income (expense) on our consolidated statements of operations.

We are exposed to credit losses in the event of nonperformance by the counterparties on our commodity derivatives positions and have considered the exposure in our internal valuations. However, we do not anticipate nonperformance by the counterparties over the term of the commodity derivatives positions.

To estimate the fair value of our commodity derivatives positions, we use market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. We primarily apply the market approach for recurring fair value measurements and attempt to use the best available information. We determine the fair value based upon the hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and lowest priority to unobservable inputs (Level 3 measurement). The three levels of fair value hierarchy are as follows:

•

Level 1 — Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. At September 30, 2014, we had no Level 1 measurements.

•

Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Our derivatives, which consist primarily of commodity swaps and collars, are valued using commodity market data which is derived by combining raw inputs and quantitative models and processes to generate forward curves. Where observable inputs are available, directly or indirectly, for substantially the full term of the asset or liability, the instrument is categorized in Level 2. At September 30, 2014, all of our commodity derivatives were valued using Level 2 measurements.

•

Level 3 — Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. At September 30, 2014, we had no Level 3 measurements.

Financial Instruments Not Recorded at Fair Value

The following table sets forth the fair values of financial instruments that are not recorded at fair value on our financial statements (in thousands).

September 30, 2014

Carrying

Fair Value

Amount

Senior Notes

$

250,000

$

251,500

The fair value of the Senior Notes uses pricing that is readily available in the public market. Accordingly, the fair value of the Senior Notes would be classified as Level 2 in the fair value hierarchy.

ShareBased_Compensation

Share-Based Compensation	9 Months Ended
	Sep. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share-Based Compensation	'
	8. Share-Based Compensation
	In February 2014, we awarded an aggregate of 245,157 restricted shares to our executive officers, of which 163,438 shares are subject to certain performance conditions and 81,719 shares are subject to three-year total shareholder return (“TSR”) conditions, assuming maximum TSR is achieved. Assuming target TSR is achieved, then 54,479 shares are subject to three-year TSR conditions. The aggregate fair market value of the award, assuming target TSR is achieved is $4.5 million, which will be expensed over a service period of approximately three years, subject to performance and three-year TSR conditions.
	Effective May 16, 2014, we entered into an executive grant and separation agreement (the “Separation Agreement”) with Ralph P. Manoushagian, former Executive Vice President—Land, upon his retirement. As set forth in the Separation Agreement, we granted Mr. Manoushagian 41,281 restricted stock units with an aggregate fair market value of $0.8 million that will be settled on December 31, 2014. We also recorded a benefit of $1.1 million in share-based compensation expense related to the forfeiture of 66,684 outstanding unvested shares of restricted stock previously awarded to Mr. Manoushagian.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Organization and Nature of Operations	'
	Organization and Nature of Operations
	Approach Resources Inc. (“Approach,” the “Company,” “we,” “us” or “our”) is an independent energy company engaged in the exploration, development, production and acquisition of oil and gas properties. We focus on finding and developing oil and natural gas reserves in oil shale and tight gas sands. Our properties are primarily located in the Permian Basin in West Texas. We also own interests in the East Texas Basin.
Consolidation, Basis of Presentation and Significant Estimates	'
	Consolidation, Basis of Presentation and Significant Estimates
	The interim consolidated financial statements of the Company are unaudited and contain all adjustments (consisting primarily of normal recurring accruals) necessary for a fair statement of the results for the interim periods presented. Results for interim periods are not necessarily indicative of results to be expected for a full year due in part to the volatility in prices for oil, NGLs and gas, future commodity prices for commodity derivative contracts, global economic and financial market conditions, interest rates, access to sources of liquidity, estimates of reserves, drilling risks, geological risks, transportation restrictions, the timing of acquisitions, product supply and demand, market competition and interruptions of production. You should read these consolidated interim financial statements in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 25, 2014.
	The accompanying interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated. In preparing the accompanying financial statements, management has made certain estimates and assumptions that affect reported amounts in the financial statements and disclosures of contingencies. Actual results may differ from those estimates. Significant assumptions are required in the valuation of proved oil and gas reserves, which affect our estimate of depletion expense as well as our impairment analyses. Significant assumptions also are required in our estimation of accrued liabilities, commodity derivatives, income tax provision, share-based compensation and asset retirement obligations. It is at least reasonably possible these estimates could be revised in the near term, and these revisions could be material. Certain prior-year amounts have been reclassified to conform to current-year presentation. These classifications have no impact on the net income reported.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (“FASB”) issued guidance that raised the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. Under the updated standard, a discontinued operation is (i) a component of an entity or group of components that has been disposed of by sale, disposed of other than by sale or is classified as held for sale that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (ii) an acquired business or nonprofit activity that is classified as held for sale on the date of the acquisition. This update is aimed at reducing the frequency of disposals reported as discontinued operations by focusing on strategic shifts that have or will have a major effect on an entity’s operations and financial results. This accounting standards update is effective for annual reporting periods beginning on or after December 15, 2014, and will be applied prospectively. The Company is evaluating the impact of this new guidance and does not expect it to have a significant impact on the consolidated financial statements.
	In May 2014, the FASB issued an accounting standards update for “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Topic 605, Revenue Recognition.” This accounting standard update provides new guidance concerning recognition and measurement of revenue and requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. This new guidance is effective retrospectively for annual reporting periods beginning on or after December 15, 2016, with early application not permitted. The Company is evaluating our existing revenue recognition policies to determine whether any contracts will be affected by the new requirements.

Earnings_Per_Common_Share_Tabl

Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Reconciliations of Numerators and Denominators of our Basic and Diluted Earnings Per Share	'
	is antidilutive. The following table provides a reconciliation of the numerators and denominators of our basic and diluted earnings per share (dollars in thousands, except per-share amounts).
		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2014		2013		2014		2013
	Income (numerator):
	Net income – basic	$	22,447	$	495	$	29,185	$	7,935
	Weighted average shares (denominator):
	Weighted average shares – basic		39,363,441		39,011,555		39,325,552		38,980,971
	Dilution effect of share-based compensation, treasury method		16,338		21,258		15,409		21,760
	Weighted average shares – diluted		39,379,779		39,032,813		39,340,961		39,002,731
	Net income per share:
	Basic	$	0.57	$	0.01	$	0.74	$	0.2
	Diluted	$	0.57	$	0.01	$	0.74	$	0.2

LongTerm_Debt_Tables

Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2014
Debt Disclosure [Abstract]	'
Schedule of Long Term Debt	'
	The following table provides a summary of our long-term debt at September 30, 2014, and December 31, 2013 (in thousands).
		September 30,		December 31,
		2014		2013
	Senior secured credit facility	$	89,500	$	—
	Senior notes		250,000		250,000
	Total long-term debt	$	339,500	$	250,000

Fair_Value_of_Financial_and_De1

Fair Value of Financial and Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

'

Commodity Derivative Volumes and Prices

'

The following table provides our outstanding commodity derivative positions at September 30, 2014.

Commodity and Period

Contract

Volume

Contract Price

Type

Transacted

Crude Oil

October 2014 – December 2014

Collar

550 Bbls/d

$90.00/Bbl - $105.50/Bbl

October 2014 – December 2014

Collar

950 Bbls/d

$85.05/Bbl - $95.05/Bbl

October 2014 – December 2014

Collar

2,000 Bbls/d

$89.00/Bbl - $98.85/Bbl

October 2014 – March 2015

Collar

1,500 Bbls/d

$85.00/Bbl - $95.30/Bbl

January 2015 – December 2015

Collar

2,100 Bbls/d

$84.00/Bbl - $91.00/Bbl

January 2015 – December 2015

Collar

1,000 Bbls/d

$90.00/Bbl - $102.50 Bbl

January 2015 – December 2015

Three-Way Collar

500 Bbls/d

$75.00/Bbl - $84.00/Bbl

- $94.00/Bbl

Natural Gas Liquids

Propane

October 2014 – December 2014

Swap

500 Bbls/d

$41.16/Bbl

Natural Gasoline

October 2014 – December 2014

Swap

175 Bbls/d

$83.37/Bbl

Natural Gas

October 2014 – December 2014

Swap

360,000 MMBtu/month

$4.18/MMBtu

October 2014 – December 2014

Swap

35,000 MMBtu/month

$4.29/MMBtu

Commodity and Period

Contract

Volume Transacted

Contract Price

Type

October 2014 – December 2014

Swap

160,000 MMBtu/month

$4.40/MMBtu

October 2014 – June 2015

Collar

80,000 MMBtu/month

$4.00/MMBtu - $4.74/MMBtu

January 2015 – December 2015

Swap

200,000 MMBtu/month

$4.10/MMBtu

January 2015 – December 2015

Collar

130,000 MMBtu/month

$4.00/MMBtu - $4.25/MMBtu

Summary of Fair Value of Open Commodity Derivatives

'

The following table summarizes the fair value of our open commodity derivatives as of September 30, 2014, and December 31, 2013 (in thousands).

Asset Derivatives

Liability Derivatives

Balance Sheet

Balance Sheet

Location

Fair Value

Location

Fair Value

September 30,

December 31,

September 30,

December 31,

2014

2013

2014

2013

Derivatives not designated as hedging instruments

Commodity derivatives

Unrealized

$

3,413

$

9,108

Unrealized

$

369

$

11,270

gain on

loss on

commodity

commodity

derivatives

derivatives

Summary of Change in Fair Value of Commodity Derivatives

'

The following table summarizes the change in the fair value of our commodity derivatives (in thousands).

Income Statement

Three Months Ended

Nine Months Ended

Location

September 30,

September 30,

2014

2013

2014

2013

Derivatives not designated as hedging instruments

Commodity derivatives

Realized loss on commodity

$

(764

)

$

(840

)

$

(5,423

)

$

(1,247

)

derivatives

Unrealized gain(loss) on

18,810

(3,438

)

5,206

(3,248

)

commodity derivatives

$

18,046

$

(4,278

)

$

(217

)

$

(4,495

)

Summary of Financial Instruments Not Recorded at Fair Value

'

The following table sets forth the fair values of financial instruments that are not recorded at fair value on our financial statements (in thousands).

September 30, 2014

Carrying

Fair Value

Amount

Senior Notes

$

250,000

$

251,500

Equity_Method_Investment_Addit

Equity Method Investment - Additional Information (Detail) (USD $)	1 Months Ended		9 Months Ended	12 Months Ended
	Oct. 31, 2013	Oct. 31, 2012	Sep. 30, 2014	Dec. 31, 2013
Schedule Of Results Related To Equity Accounted Investees [Line Items]	'	'	'	'
Contribution to joint venture	'	$10,000,000	'	$8,300,000
Proceeds from sale of joint venture	109,100,000	'	'	'
Restricted cash	'	'	'	7,350,000
Escrow termination date	'	'	1-Jun-14	'
Post-closing working capital adjustments	'	'	200,000	'
Escrow [Member]	'	'	'	'
Schedule Of Results Related To Equity Accounted Investees [Line Items]	'	'	'	'
Restricted cash	'	'	$7,400,000	'

Earnings_Per_Common_Share_Reco

Earnings Per Common Share - Reconciliations of Numerators and Denominators of our Basic and Diluted Earnings Per Share (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Net income - basic	$22,447	$495	$29,185	$7,935
Weighted average shares - basic	39,363,441	39,011,555	39,325,552	38,980,971
Dilution effect of share-based compensation, treasury method	16,338	21,258	15,409	21,760
Weighted average shares - diluted	39,379,779	39,032,813	39,340,961	39,002,731
Basic	$0.57	$0.01	$0.74	$0.20
Diluted	$0.57	$0.01	$0.74	$0.20

LongTerm_Debt_Schedule_of_Long

Long-Term Debt - Schedule of Long Term Debt (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Debt Disclosure [Abstract]	'	'
Senior secured credit facility	$89,500	$0
Senior notes	250,000	250,000
Total long-term debt	$339,500	$250,000

LongTerm_Debt_Additional_Infor

Long-Term Debt - Additional Information (Detail) (USD $)

9 Months Ended

9 Months Ended

0 Months Ended

9 Months Ended

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Dec. 31, 2013

Nov. 04, 2014

Nov. 04, 2014

Nov. 04, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Minimum [Member]

Maximum [Member]

Credit Facility [Member]

Credit Facility [Member]

Subsequent Event [Member]

Subsequent Event [Member]

Subsequent Event [Member]

7% Senior Notes originated June 11, 2013 [Member]

Debt Instrument Redemption Period [Member]

Interest rate calculation one [Member]

Interest rate calculation one [Member]

Interest rate calculation two [Member]

Interest rate calculation two [Member]

Covenants agreements one [Member]

Covenants agreements two [Member]

Credit Facility [Member]

Credit Facility [Member]

Credit Facility [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Minimum [Member]

Maximum [Member]

Credit Facilities [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maturity period of revolving credit facility

7-May-19

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Revolving credit facility, borrowing base

$450,000,000

'

'

'

'

'

'

$450,000,000

$600,000,000

'

'

'

'

'

'

'

'

Revolving credit facility, maximum borrowing capacity

1,000,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Revolving credit facility, interest rate description

'Borrowings under the Credit Facility bear interest based on the agent bank's prime rate plus an applicable margin ranging from 0.50% to 1.50%, or the sum of the LIBOR rate plus an applicable margin ranging from 1.50% to 2.50%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Revolving credit facility, marginal percentage

'

'

'

'

'

'

'

'

'

'

'

0.50%

1.50%

1.50%

2.50%

'

'

Annual commitment fee of unused borrowings

'

'

0.38%

0.50%

'

'

'

'

'

'

'

'

'

'

'

'

'

Amount outstanding under revolving credit facility

89,500,000

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate applicable of revolving credit facility

1.40%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Unused letters of credit outstanding

'

'

'

'

300,000

300,000

'

'

'

'

'

'

'

'

'

'

'

Production from liens covering the oil and gas properties

80.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Aggregate lender's commitment limit

'

'

'

'

'

'

450,000,000

'

'

'

'

'

'

'

'

'

'

Current ratio

'

'

'

1

'

'

'

'

'

'

'

'

'

'

'

'

'

Covenant description

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'A consolidated modified current ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of not less than 1.0 to 1.0 as of the last day of any fiscal quarter

'A consolidated interest coverage ratio covenant (as defined in the Credit Facility) that requires us to maintain a ratio of consolidated EBITDAX to interest of not less than 2.5 to 1.0 as of the last day of any fiscal quarter.

Interest coverage ratio

2.5

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest coverage ratio

1

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Outstanding equity interests ownership percentage

50.00%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Senior notes maturity date

'

'

'

'

'

'

'

'

'

15-Jun-21

'

'

'

'

'

'

'

Senior notes

250,000,000

250,000,000

'

'

'

'

'

'

'

250,000,000

'

'

'

'

'

'

'

Stated interest rate

'

'

'

'

'

'

'

'

'

7.00%

'

'

'

'

'

'

'

Annual interest expense

'

'

'

'

'

'

'

'

'

$17,500,000

'

'

'

'

'

'

'

Debt instrument payment of interest

'

'

'

'

'

'

'

'

'

'Semi-annually on June 15 and December 15.

'

'

'

'

'

'

'

Debt instrument redemption description

'Before June 15, 2016, we may redeem some or all of the Notes for cash at a redemption price equal to 100% of their principal amount plus an applicable make-whole premium and accrued and unpaid interest to the redemption date.

'

'

'

'

'

'

'

'

'

'Before June 15, 2016, we may redeem up to 35% of the Senior Notes at a redemption price of 107% of the principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds of certain equity offerings.

'

'

'

'

'

'

Debt instrument, redemption percentage

'

'

'

'

'

'

'

'

'

'

35.00%

'

'

'

'

'

'

Debt instrument, redemption of principal amount percentage

'

'

'

'

100.00%

'

'

'

'

'

107.00%

'

'

'

'

'

'

Commitments_and_Contingencies_

Commitments and Contingencies - Additional Information (Detail) (USD $)	Oct. 31, 2014	Jan. 03, 2014
In Millions, unless otherwise specified	Subsequent Event [Member]	Executive Vice President and Chief Financial Officer [Member]
		Employee Agreement [Member]
Other Commitments [Line Items]	'	'
Commitment under employment agreement	'	$1.30
Contractual obligation	$12	'

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Effective income tax rate	36.20%	35.30%	36.20%	35.10%

Fair_Value_of_Financial_and_De2

Fair Value of Financial and Derivative Instruments - Additional Information (Detail)

3 Months Ended

0 Months Ended

3 Months Ended

0 Months Ended

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Oct. 07, 2014

Oct. 07, 2014

Oct. 07, 2014

Sep. 30, 2014

Sep. 30, 2014

Sep. 30, 2014

Oct. 07, 2014

Oct. 07, 2014

Oct. 07, 2014

Two Way Collars [Member]

Two Way Collars [Member]

Two Way Collars [Member]

Two Way Collars [Member]

Two Way Collars [Member]

Two Way Collars [Member]

Three Way Collars [Member]

Three Way Collars [Member]

Three Way Collars [Member]

Three Way Collars [Member]

Three Way Collars [Member]

Three Way Collars [Member]

bbl

Long [Member]

Call Option [Member]

Subsequent Event [Member]

Subsequent Event [Member]

Subsequent Event [Member]

Long [Member]

Short [Member]

Call Option [Member]

Subsequent Event [Member]

Subsequent Event [Member]

Subsequent Event [Member]

Short [Member]

bbl

Long [Member]

Call Option [Member]

Short [Member]

Long [Member]

Short [Member]

Call Option [Member]

Short [Member]

Short [Member]

Derivative Instruments And Hedging Activities [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

Contract Price

'

84

91

'

84

91

84

75

94

84

75

95

Volume Transacted

500

'

'

500

'

'

'

'

'

'

'

'

Fair_Value_of_Financial_and_De3

Fair Value of Financial and Derivatives Instruments - Commodity Derivative Volumes and Prices (Detail)	9 Months Ended
	Sep. 30, 2014
	bbl
Crude Oil - October 2014 - December 2014 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	550
Crude Oil - October 2014 - December 2014 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	950
Crude Oil - October 2014 - December 2014 Contract Three [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	2,000
Crude Oil - October 2014 - March 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	1,500
Crude Oil - January 2015 - December 2015 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	2,100
Crude Oil - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	1,000
Crude Oil - January 2015 - December 2015 Contract Two [Member] | Three Way Collars [Member]	'
Derivative [Line Items]	'
Volume Transacted	500
Contract Price	94
Propane - October 2014 - December 2014 [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	500
Contract Price	41.16
Natural Gasoline - October 2014 - December 2014 [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	175
Contract Price	83.37
Natural Gas - October 2014 - December 2014 Contract One [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	360,000
Contract Price	4.18
Natural Gas - October 2014 - December 2014 Contract Two [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	35,000
Contract Price	4.29
Natural Gas - October 2014 - December 2014 Contract Three [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	160,000
Contract Price	4.4
Natural Gas - October 2014 - June 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	80,000
Natural Gas - January 2015 - December 2015 Contract One [Member] | Swap [Member]	'
Derivative [Line Items]	'
Volume Transacted	200,000
Contract Price	4.1
Natural Gas - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Volume Transacted	130,000
Minimum [Member] | Crude Oil - October 2014 - December 2014 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	90
Minimum [Member] | Crude Oil - October 2014 - December 2014 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	85.05
Minimum [Member] | Crude Oil - October 2014 - December 2014 Contract Three [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	89
Minimum [Member] | Crude Oil - October 2014 - March 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	85
Minimum [Member] | Crude Oil - January 2015 - December 2015 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	84
Minimum [Member] | Crude Oil - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	90
Minimum [Member] | Crude Oil - January 2015 - December 2015 Contract Two [Member] | Three Way Collars [Member]	'
Derivative [Line Items]	'
Contract Price	84
Minimum [Member] | Natural Gas - October 2014 - June 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	4
Minimum [Member] | Natural Gas - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	4
Maximum [Member] | Crude Oil - October 2014 - December 2014 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	105.5
Maximum [Member] | Crude Oil - October 2014 - December 2014 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	95.05
Maximum [Member] | Crude Oil - October 2014 - December 2014 Contract Three [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	98.85
Maximum [Member] | Crude Oil - October 2014 - March 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	95.3
Maximum [Member] | Crude Oil - January 2015 - December 2015 Contract One [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	91
Maximum [Member] | Crude Oil - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	102.5
Maximum [Member] | Crude Oil - January 2015 - December 2015 Contract Two [Member] | Three Way Collars [Member]	'
Derivative [Line Items]	'
Contract Price	75
Maximum [Member] | Natural Gas - October 2014 - June 2015 [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	4.74
Maximum [Member] | Natural Gas - January 2015 - December 2015 Contract Two [Member] | Collar [Member]	'
Derivative [Line Items]	'
Contract Price	4.25

Fair_Value_of_Financial_and_De4

Fair Value of Financial and Derivatives Instruments - Summary of Fair Value of Open Commodity Derivatives (Detail) (Commodity Derivatives [Member], USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Derivative Not Designated as Hedging Instruments, Fair Value of Assets Derivative [Member]	'	'
Derivatives, Fair Value [Line Items]	'	'
Unrealized gain on commodity derivatives	$3,413	$9,108
Derivative Not Designated as Hedging Instruments, Fair Value of Liability Derivative [Member]	'	'
Derivatives, Fair Value [Line Items]	'	'
Unrealized loss on commodity derivatives	$369	$11,270

Fair_Value_of_Financial_and_De5

Fair Value of Financial and Derivatives Instruments - Summary of Change in Fair Value of Commodity Derivatives (Detail) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Derivatives, Fair Value [Line Items]	'	'	'	'
Realized loss on commodity derivatives	($764)	($840)	($5,423)	($1,247)
Unrealized gain (loss) on commodity derivatives	18,810	-3,438	5,206	-3,248
Commodity Derivatives [Member]	'	'	'	'
Derivatives, Fair Value [Line Items]	'	'	'	'
Realized loss on commodity derivatives	-764	-840	-5,423	-1,247
Unrealized gain (loss) on commodity derivatives	18,810	-3,438	5,206	-3,248
Derivatives not designated as hedging instruments, total (loss) gain	$18,046	($4,278)	($217)	($4,495)

Fair_Value_of_Financial_and_De6

Fair Value of Financial and Derivatives Instruments - Summary of Financial Instruments Not Recorded at Fair Value (Detail) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'	'
Senior Notes, Carrying Amount	$250,000	$250,000
Senior Notes, Fair Value	$251,500	'

ShareBased_Compensation_Additi

Share-Based Compensation - Additional Information (Detail) (USD $)	0 Months Ended	1 Months Ended
In Millions, except Share data, unless otherwise specified	16-May-14	Feb. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted shares award	'	245,157
Fair market value of shares subject to performance conditions	'	$4.50
Service period	'	'3 years
Restricted shares subject to three-year TSR conditions if target achieved	'	54,479
Restricted Stock Award, Forfeitures	-1.1	'
Unvested outstanding forfeited shares	66,684	'
Performance Condition Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted shares award	'	163,438
Total Shareholder Return Performance Stock Awards [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Restricted shares award	'	81,719
Restricted Stock Units (RSUs) [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Shares granted to former executive vice president	41,281	'
Aggregate fair value of shares granted	$0.80	'