Revenue during the quarter plunged 30.03 percent to $23.75 million from $33.94 million in the previous year period. Gross margin for the quarter expanded 623 basis points over the previous year period to 83.60 percent.

Operating loss for the quarter was $8.45 million, compared with an operating loss of $238.52 million in the previous year period.

Ross Craft, Approach's chairman and chief executive officer, commented "Third quarter 2016 was another validation of the Company's success in improving profitability through aggressive cost reduction initiatives and reducing production decline rates. Production for the quarter averaged 12.1 Mboe/d, once again exceeding our guidance for the quarter, resulting in a decline of less than 3% from second quarter 2016. During the quarter we continued to observe shallower-than-expected PDP decline rates from existing wells and strong performance from newly completed wells. In mid-September, we placed three new horizontal Wolfcamp wells on production, two C-bench wells in the Baker area and one A-bench well in Pangea West. The average IP rate for these wells, which contributed limited production to our third quarter 2016 total, was 813 Boe/d (58% oil and 81% liquids)."

Debt comes down marginally
Approach Resources Inc. has recorded a decline in total debt over the last one year. It stood at $500.01 million as on Sep. 30, 2016, down 3.02 percent or $15.58 million from $515.59 million on Sep. 30, 2015. Total debt was 44.54 percent of total assets as on Sep. 30, 2016, compared with 42.65 percent on Sep. 30, 2015. Debt to equity ratio was at 0.87 as on Sep. 30, 2016, up from 0.84 as on Sep. 30, 2015.