EnerCom’s The Oil and Gas Conference 21 Presentation

1. EnerCom’s The Oil and Gas
Conference 21
AUGUST 16, 2016

2. Forward-looking statements
EnerCom’s The Oil & Gas Conference 21 - August 2016 2
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that the Company expects, believes
or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this
presentation specifically include the expectations of management regarding plans, strategies, objectives, anticipated financial and operating results of the Company, including
as to the Company’s Wolfcamp shale resource play, estimated resource potential and recoverability of the oil and gas, estimated reserves and drilling locations, capital
expenditures, typical well results and well profiles, type curve, and production and operating expenses guidance included in the presentation. These statements are based on
certain assumptions made by the Company based on management's experience and technical analyses, current conditions, anticipated future developments and other factors
believed to be appropriate and believed to be reasonable by management. When used in this presentation, the words “will,” “potential,” “believe,” “intend,” “expect,” “may,”
“should,” “anticipate,” “could,” “estimate,” “plan,” “predict,” “project,” “target,” “profile,” “model” or their negatives, other similar expressions or the statements that include those
words, are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such statements are subject to a
number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied
or expressed by the forward-looking statements. In particular, careful consideration should be given to the cautionary statements and risk factors described in the Company's
most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which such statement is made
and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as
required by applicable law.
The Securities and Exchange Commission (“SEC”) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that
meet the SEC’s definitions for such terms, and price and cost sensitivities for such reserves, and prohibits disclosure of resources that do not constitute such reserves. The
Company uses the terms “estimated ultimate recovery” or “EUR,” reserve or resource “potential,” and other descriptions of volumes of reserves potentially recoverable through
additional drilling or recovery techniques that the SEC’s rules may prohibit the Company from including in filings with the SEC. These estimates are by their nature more
speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized by the Company.
EUR estimates, identified drilling locations and resource potential estimates have not been risked by the Company. Actual locations drilled and quantities that may be
ultimately recovered from the Company’s interest may differ substantially from the Company’s estimates. There is no commitment by the Company to drill all of the drilling
locations that have been attributed these quantities. Factors affecting ultimate recovery include the scope of the Company’s drilling project, which will be directly affected by
the availability of capital, drilling and production costs, availability of drilling and completion services and equipment, drilling results, lease expirations, regulatory approval and
actual drilling results, as well as geological and mechanical factors. Estimates of unproved reserves, type/decline curves, per well EUR and resource potential may change
significantly as development of the Company’s oil and gas assets provides additional data.
Type/decline curves, estimated EURs, resource potential, recovery factors and well costs represent Company estimates based on evaluation of petrophysical analysis, core
data and well logs, well performance from limited drilling and recompletion results and seismic data, and have not been reviewed by independent engineers. These are
presented as hypothetical recoveries if assumptions and estimates regarding recoverable hydrocarbons, recovery factors and costs prove correct. The Company has limited
production experience with this project, and accordingly, such estimates may change significantly as results from more wells are evaluated. Estimates of resource potential
and EURs do not constitute reserves, but constitute estimates of contingent resources which the SEC has determined are too speculative to include in SEC filings. Unless
otherwise noted, IRR estimates are before taxes and assume NYMEX forward-curve oil and gas pricing and Company-generated EUR and decline curve estimates based
on Company drilling and completion cost estimates that do not include land, seismic or G&A costs.
Cautionary statements regarding oil & gas quantities

3. Company overview
AREX OVERVIEW ASSET OVERVIEW
Enterprise value $588MM
High-quality reserve base
167 MMBoe proved reserves
63% Liquids, 33% oil
$460 MM Standardized measure, $504 MM proved
PV-10 (non-GAAP)
Permian core operating area
139,000 gross (126,000 net) acres
~1+ BnBoe gross, unrisked resource potential
~1,800 Identified HZ drilling locations targeting
Wolfcamp A/B/C
2016 Capital program focused on aligning
capex with cash flow
Stable leasehold that is largely HBP provides for
flexible budget
Improving commodity prices would allow us to
seamlessly increase capital budget from ~$20 MM
to ~$80 MM
Note: Proved reserves as of 12/31/2015 and acreage as of 6/30/2016. All Boe and Mcfe calculations are based on a 6 to 1 conversion ratio. Enterprise value is equal to market capitalization using the
closing share price of $2.14 per share on 7/12/2016, plus net debt as of 6/30/2016. See “PV-10 (unaudited)” slide for reconciliation to GAAP measure.
3EnerCom’s The Oil & Gas Conference 21 - August 2016

4. The business is anchored by long-lived, low-cost proved reserve
base
4
• 12/31/2015 reserve summary prepared by DeGolyer and MacNaughton (“D&M”)
• Replaced 603% of produced reserves at a drill-bit F&D cost of $4.32 per Boe1
• Total proved reserves up 14% YoY, proved PV-10 (non-GAAP) of $504 million2
Oil (MBbls) NGLs (MBbls) Natural Gas (MMcf) 3 Total (MBoe) PV-10 ($ MM) 2
PDP 15,476 20,362 154,202 61,539 $390.8
PDNP 191 52 450 317 $1.1
PUD 38,829 29,072 221,336 104,790 $112.1
Total Proved 54,496 49,486 375,988 166,646 $504.0
Total Proved Reserves Reserves by Commodity Proved PV-10
33%
30%
37%
Oil NGLs Natural Gas
37%
<1%
63%
PDP PDNP PUD
78%
< 1%
22%
PDP PDNP PUD
1. Drill-bit F&D costs are calculated by dividing the sum of exploration costs and development costs for the year by the total of reserve extensions and discoveries for the year. See “F&D costs (unaudited)”
slide.
2. PV-10 calculated based on the first-of-the-month, 12-month average prices for oil, NGLs and natural gas, of $50.16 per Bbl of oil, $15.13 per Bbl of NGLs and $2.64 per MMBtu of natural gas. See “PV-10
(unaudited)” slide for reconciliation to GAAP measure.
3. The gas reserves contain 42,617 MMcf of gas that will be produced and used as field fuel (primarily for compressors and artificial lifts) before the gas is delivered to a sales point.
EnerCom’s The Oil & Gas Conference 21 - August 2016

5. Strong track record of reserve and production growth
5
RESERVE GROWTH
0
20
40
60
80
100
120
140
160
180
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Gas (MMBoe) Oil & NGLs (MMBbls)
• YE15 reserves up 14% YoY
• Replaced 603% of produced reserves at a drill-
bit F&D cost of $4.32/Boe1
• 154.6 MMBoe proved reserves booked to HZ
Wolfcamp play
MMBoe
PRODUCTION GROWTH
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Natural Gas (MBoe/d) Oil & NGLs (Mbbls/d)
• 2015 Production increased 10% YoY to a
record 15.2 MBoe/d
• Anticipating production decline in 2016 with
significantly reduced capital budget
MBoe/d
1. Drill-bit F&D costs are calculated by dividing the sum of exploration costs and development costs for the year by the total of reserve extensions and discoveries for the year. See “F&D costs (unaudited)”
slide for our calculation of F&D cost.
EnerCom’s The Oil & Gas Conference 21 - August 2016

6. 6
$7.36
$6.18
$5.87
$6.65
$5.55
$4.97 $5.04
$5.44 $5.45
$4.56
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16
AREX LOE Historical Track Record ($/Boe) 2015 Permian Peer LOE ($/Boe)
AREX D&C Historical Track Record ($ MM) Current Permian Peer D&C Cost ($ MM)
$13.23
$9.51
$8.84
$7.83 $7.71
$7.46 $7.34
$6.92 $6.63 $6.39
$5.24
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 AREX
$8.6
$7.0
$5.8
$5.5
$4.5
$3.7
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
2011 2012 2013 2014 2015 Current AFE
$7.8
$6.8
$6.0
$5.5
$5.4
$5.3 $5.2 $5.0 $5.0 $4.9
$3.7
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 AREX
Source: Latest available company presentations and public filings. Peers include CPE, CWEI, CXO, EGN, FANG, LPI, MTDR, PE, PXD, and RSPP.
Lowest cost structure in the Permian Basin
EnerCom’s The Oil & Gas Conference 21 - August 2016

7. 2Q16 Highlights – doing more with less
OPERATING HIGHLIGHTS
Low cost, on
time, and on
budget
• 2Q16 LOE of $4.56/Boe is a record low since we began Hz Wolfcamp development
• Completed 2 HZ wells during the quarter in the Baker area
• Wolfcamp B – 1 well and Wolfcamp C – 1 well
• Wells completed during the quarter were in line with current $3.7 MM AFE, a record low for
the company and down ~18% from 2015 average D&C cost
• We plan to complete three wells during 3Q16 and expect production to average around
11.9 MBoe/d, which includes the effect of two days of partial production shut-ins for DCP
plant maintenance during the month of July and anticipated production downtime for shut-
ins of nine producing wells to perform planned third quarter completions.
Continued
Completion
Optimization
Success
• Resumed completion activity following a sustained price correction during the quarter
• 2Q16 production averaged 12.6 MBoe/d, exceeding previous guidance of 12.3 MBoe/d
• Average IP for wells completed during 2Q16 was 861 Boe/d (59% oil and 82% liquids), or
987 Boe/d when normalized to a 7,500’ lateral
• Average 30-day IP rate for 2Q16 wells of 603 Boe/d (51% oil, 82% liquids), tracking ~49%
above current typecurve
7EnerCom’s The Oil & Gas Conference 21 - August 2016

8. 0
20,000
40,000
60,000
80,000
100,000
120,000
1 31 61 91 121 151 181 211 241 271 301 331 361 391 421 451 481
Enhanced completion design drives outperformance from
2015 and 2016 wells
8
Note: Production data normalized for operational downtimeNote: Production data normalized for operational downtime
CumulativeProduction(Boe)
Time (Day)
2Q16 Wells
• Reduced stage spacing (< 200’)
• Increase percentage of 100 mesh sand
• Use of Recycled Produced Water
2nd Qtr. 2016 Wolfcamp B&C bench completions
Average completed lateral length = 6,541'
EnerCom’s The Oil & Gas Conference 21 - August 2016

9. AREX is benefiting from commodity price appreciation across
all product streams
9
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
January-16 February-16 March-16 April-16 May-16 June-16
Oil NGLs Natural Gas
29%
33%
38%
Oil NGLs Natural Gas
1H16 Commodity Mix
• 1Q16 unhedged cash margin1 was
$4.38 per Boe
• 2Q16 unhedged cash margin1 was
$9.47 per Boe
• 116% improvement QoQ
• Expect significant improvement in
natural gas realizations in 3Q16
1. Defined as unhedged revenue per Boe less LOE, production taxes, and cash G&A per Boe.
% Change in realized prices
EnerCom’s The Oil & Gas Conference 21 - August 2016

10. Large resource potential with significant running room
10
PDP:
164 wells
9%
PDNP & PUD:
251 locations
14%
Probable,
Possible &
Resource:
1,389 locations
77%
A Bench:
589 locations
36%
B Bench:
501 locations
31%
C Bench:
549 locations
33%
AREX Horizontal Wells / Locations
AREX Undrilled
Locations
Total identified undrilled locations: 1,639
EnerCom’s The Oil & Gas Conference 21 - August 2016

11. Established infrastructure in place is critical to low cost
structure
11
Over 500 miles of pipelines in place
• More than 100 MMcfg/d gathering and gas
lifting capacity
• Expandable up to 500 MMcfg/d
One Centralized Super Water Recycle Center
• 2.2 MM Bbls flowback and produced water
recycled during 1st six months of operation
• Reduced D&C cost by $450,000 per well
• Reduced LOE by over $4MM
• Reduced current SWD cost by ~$10,000/d
EnerCom’s The Oil & Gas Conference 21 - August 2016

12. Significant cost savings from using recycled water for fracing
12
Flowback / Producing Well
$2 per barrel
Free
Wellpad
Via existing water
gathering lines
Cost Savings
$400,000 to $600,000
per well
Via existing water
transportation lines
$0.25 per
barrel
$0.25 per
barrel
$1.50 per
barrel
Free
Water Recycling
Center
Cost for recycled water
$2 - $3 per barrel
Cost saving for using recycled water
EnerCom’s The Oil & Gas Conference 21 - August 2016

13. AREX water recycling facility successfully implemented
13
0
5,000
10,000
15,000
20,000
25,000
30,000
RecycledWater(Bbls/d)
• Started up in March 2015, ramped up during April 2015
• Recycled up to 100% of AREX daily flowback/produced water volumes
• More than 2.2 million barrels of produced water treated in the first 6 months
• More than $7mm of cost saved or value created in the first 6 months of operation
EnerCom’s The Oil & Gas Conference 21 - August 2016

14. 14
CPF 5CPF 1 CPF 2 CPF 3 CPF 4
Low Pressure
Gathering Line
0.75 miles
CS
0.75 miles
Dehy
~ 2000 ft
~500ft
High Pressure Sale / Gas Lift line
Wells
CPF 10CPF 6 CPF 7 CPF 8 CPF 9
Low Pressure
Gathering Line
CS
Dehy
Well Pads Serviced by Centralized Compressor and Shared Gas
Lift System – Efficient and Significant Cost Saving
Cost ~ $4.3 M / Well / month for the 1st 30 months
This configuration saves $7.6 M / well / month for the 1st 30 months
Or $228M/well for the 1st 30 months
EnerCom’s The Oil & Gas Conference 21 - August 2016

15. D&C Cost reductions have significantly improved profitability
despite lower commodity prices
15
Note: HZ Wolfcamp economics assume $3.50/Mcf realized natural gas price and NGL price based on 40% of realized oil price.
0%
10%
20%
30%
40%
50%
60%
70%
$30 $40 $50 $60 $70 $80
IRR(%)
Realized Oil Price ($/Bbl)
$3.5MM D&C
$4.0MM D&C
$4.5MM D&C
EnerCom’s The Oil & Gas Conference 21 - August 2016

16. EnerCom’s The Oil & Gas Conference 21 - August 2016
AMISTAD
HENRY
ENERVEST
EP ENERGY
others
APA
PXD
AREX
AREX
AREX
AREX
APA
APA
Undisclosed
Frmly DVN
ELEVATION
PXD
APA
APA
APA
EOG
ENERVEST
EOG /
AEP
AEP
BROADOAKENDEAVOR
APA
UPTON
CROCKETT
REAGAN
IRION
SCHLEICHER
SUTTON
EP ENERGY
AREX
AREX
AREX
AREX
SEQUITUR
CALLON
SEQUITUR
AREX Wolfcamp assets offer significant upside
16
Approach assets deliver:
• Balanced production profile
• Shallow natural decline rate
• Meaningful cash flow allowing debt
reduction during 4Q15 and operating
within cash flow in 2016
• Stacked-pay zone - Wolfcamp A, B and
C offering more than 1,600 undrilled
locations
• Low cost to drill & complete due to
shallow depth, efficiency, and existing
water system
• Contiguous acreage position allowing
large-scale infrastructure that delivers
one of the lowest lease operating cost for
the life of the property
• Proximity to the under-supplied Mexican
natural gas and natural gas liquid market
• Recent acquisitions by PE-backed
entrants offsetting AREX acreage attest
to asset quality and upside potential
when commodity prices recover
Recent M&A transactions in
Southern Midland Basin:
• Amistad Energy Partners
purchased EOG Crockett Co
acreage
• Sequitur Energy purchased
EOG Reagan, Irion, Schleicher
and Crockett Co acreage
• Undisclosed PE backed
company purchased Devon Irion
and Crockett Co acreage

17. Key investment highlights
17EnerCom’s The Oil & Gas Conference 21 - August 2016
Prudent and proactive management team
• First public E&P company to fully suspend capital spending in August 2015
• Generated positive cash flow in 4Q15, used to reduce current liabilities by ~$17MM and total
debt by ~$20MM
Focus on Value Creation and Key Drivers that Create Repeatable Economic Results
• Continue to optimize completions to improve well performance and drive down cost
• Current AFEs averaging $3.7MM, with potential for further reductions during 2016
• Record low 2Q16 lease operating expense of $4.56/Boe, down 13% from 2015 average
• Recent wells achieving ~15% IRR at current NYMEX strip prices
Continuing to prioritize liquidity and cash flow over growth in 2016
• Two wells completed in 2Q16 outperforming current typecurve by ~49% over first 30 days of
production
• Production estimated at 11.9 Mboe/d for 3Q16, including shut-ins for DCP plant maintenance
and offset fracs
• No near-term debt maturities, obtained meaningful covenant relief and additional flexibility
following Spring 2016 redetermination

18. Appendix

19. PDP
PUD
PDP
PUD
PROB/POSS/RES
Potential ~10,000’ laterals
PROB/POSS/RES
Potential ~10,000’ laterals
PDNP
548
PDP 16
PUD 41
PROB / POSS / RES
2015 Year End A Bench (TOTAL)
PDNP 1
AREX Wolfcamp A Bench wells and locations
Production Corridor
Production Corridor
Production Corridor
Production Corridor
Production Corridor
Pangea West
Project Pangea
19EnerCom’s The Oil & Gas Conference 21 - August 2016

20. PDP
PUD
PROB/POSS/RES
PUD
PROB/POSS/RES
Potential ~10,000’ laterals Potential ~10,000’ laterals
Production Corridor
Production Corridor
Production Corridor
Production Corridor
Production Corridor
PDP
392
PDP 105
PUD 109
PROB / POSS / RES
2015 Year End B Bench (TOTAL)
AREX Wolfcamp B Bench wells and locations
Pangea West
Project Pangea
20EnerCom’s The Oil & Gas Conference 21 - August 2016

21. PDP
PROB/POSS/RES
Potential ~10,000’ laterals
PDP
PUD
PROB/POSS/RES
Potential ~10,000’ laterals
PUD
449
PDP 43
PUD 100
PROB / POSS / RES
2015 Year End C Bench (TOTAL)
AREX Wolfcamp C Bench wells and locations
Production Corridor
Production Corridor
Production Corridor
Production Corridor
Production Corridor
Pangea West
Project Pangea
21EnerCom’s The Oil & Gas Conference 21 - August 2016

22. AREX flowback and produced water recycle facility
22
32,000
BBL Dirty
Water
TankSkim Oil Sales
Flowback & Produced Water Offloading
Terminal & Separation Facility
Flowback & Produced Water Supply
90 BPM
Pump StationWater Treatment
&
Filtration Facility
63,000 BBL
Treated
Water
Tank
44,000 BBL
Treated
Water
Tank
8”Flowback&ProducedSaltwaterLine
8”LowChlorideTreatedFracWaterSupplyLine
20”TreatedFlowback&ProducedFracWaterSupplyLine
32,000
BBL
Treated
Water
Tank
N
63,000 BBL
Treated
Water
Tank
63,000 BBL
Treated
Water
Tank
32,000
BBL
Treated
Water
Tank
32,000
BBL
Treated
Water
Tank
Centralized
SWD Hauling
Station
12” Poly
4” Connections
Flowback / Produced Water
Separator
Dirty Water Tank
Chemical Treatment & Centrifuge
Treated Water Tank
Pump Station & Water Supply Line
329,000 Bbls. of Produced Water Storage Capacity (above ground)
EnerCom’s The Oil & Gas Conference 21 - August 2016

23. AREX flowback and produced water recycle facility
23
• Best practice for water conservation
and improving water use efficiency
• Reduces demand on fresh water
sources
• Reduces road damage & air pollution
• Reduces D&C cost
• Reduces SWD cost
• Designed one of the highest industry
KPI for water treatment
 Bacteria
 Sulfates
 Heavy metals
 Fines
EnerCom’s The Oil & Gas Conference 21 - August 2016

24. Balance sheet detail
24
AREX Liquidity and Capitalization• Following the Spring 2016 redetermination, our lenders set the
borrowing base and commitment amount at $325 MM, while agreeing
to a number of amendments designed to provide additional flexibility
• Interest coverage covenant of 1.25x (or 1.00x following the issuance
of junior secured debt) through 12/31/17, moving to 1.5x through
12/31/18 and 2.0x thereafter
• $150 MM permitted debt basket allows for issuance of new junior
secured debt
• 2016 capital budget targeted to match operating cash flow
• Liquidity of $51 MM provides additional flexibility
• Interest coverage ratio of 3.2x and current ratio of 2.4x, well above
minimum covenant requirements
• No near-term debt maturities
AREX Debt Maturity Schedule ($ MM)
AREX Capitalization as of 6/30/2016 ($ MM)
Cash $0.9
Credit Facility 273.4
7.0% Senior Notes due 2021 226.3
Total Long-Term Debt 1
$499.7
Shareholders’ Equity 581.2
Total Book Capitalization $1,080.9
AREX Liquidity
Borrowing Base $325.0
Cash and Cash Equivalents 0.9
Borrowings under Credit Facility (275.0)
Undrawn Letters of Credit (0.3)
Liquidity $50.6
$275.0
$230.3
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
2016 2017 2018 2019 2020 2021
7.0% Senior Notes
1. Long-term debt is net of debt issuance costs of $5.7 million as of June 30, 2016
Revolving Credit
Facility
EnerCom’s The Oil & Gas Conference 21 - August 2016

25. EnerCom’s The Oil & Gas Conference 21 - August 2016
Current hedge position
25
• Based on the midpoint of current 2016 guidance, approximately 31% of forecasted oil production and 88% of
forecasted natural gas production are hedged at weighted average prices of $56.01/Bbl and $2.68/MMBtu,
respectively.
Commodity & Period Contract Type Volume Contract Price
Crude Oil
July 2016 – December 2016 Swap 750 Bbls/d $62.52/Bbl
July 2016 – September 2016 Swap 750 Bbls/d $43.00/Bbl
Natural Gas
July 2016 – December 2016 Swap 200,000 MMBtu/month $2.93/MMBtu
July 2016 – March 2017 Swap 400,000 MMBtu/month $2.45/MMBtu
November 2016 – March 2017 Swap 200,000 MMBtu/month $3.29/MMBtu
April 2017 – December 2017 Collar 200,000 MMBtu/month $2.30/MMBtu - $2.60/MMBtu

26. EnerCom’s The Oil & Gas Conference 21 - August 2016
Production and expense guidance
26
2016 Guidance
Production
Oil (MBbls) 1,300 – 1,400
NGLs (MBbls) 1,440 – 1,540
Natural Gas (MMcf) 9,600 – 10,100
Total (MBoe) 4,340 – 4,625
Cash operating costs (per Boe)
Lease operating $5.00 - $6.00
Production and ad valorem taxes 8.0% of oil & gas revenues
Cash general and administrative $3.50 - $4.00
Non-cash operating costs (per Boe)
Non-cash general and administrative $1.00 - $1.50
Exploration (non-cash) $0.50 - $1.00
Depletion, depreciation and amortization $18.00 - $20.00
Capital expenditures (in millions) ~$20

27. EnerCom’s The Oil & Gas Conference 21 - August 2016
Adjusted net loss (unaudited)
27
(in thousands, except per-share
amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2016 2015 2016 2015
Net loss $ (16,035) $ (11,850) $ (29,695) $ (19,558)
Adjustments for certain items:
Unrealized loss on commodity derivatives 8,076 13,904 9,033 23,225
Write-off of debt issuance costs 563 - 563 -
Rig termination fee - - - 498
Related income tax effect (3,024) (4,866) (3,359) (8,303)
Adjusted net loss $ (10,420) $ (2,812) $ (23,458) $ (4,138)
Adjusted net loss per diluted share $ (0.25) $ (0.07) $ (0.57) $ (0.10)
The amounts included in the calculation of adjusted net loss and adjusted net loss per diluted share below were computed in accordance with GAAP. We
believe adjusted net loss and adjusted net loss per diluted share are useful to investors because they provide readers with a meaningful measure of our
profitability before recording certain items whose timing or amount cannot be reasonably determined. However, these measures are provided in addition to, and
not as an alternative for, and should be read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP
(including the notes), included in our SEC filings and posted on our website.
The following table provides a reconciliation of adjusted net loss to net loss for the three and six months ended June 30, 2016 and 2015.

28. EnerCom’s The Oil & Gas Conference 21 - August 2016
EBITDAX (unaudited)
28
We define EBITDAX as net loss, plus (1) exploration expense, (2) depletion, depreciation and amortization expense, (3) share-based compensation expense, (4)
unrealized loss on commodity derivatives, (5) write-off of debt issuance costs, (6) interest expense, net, and (7) income tax benefit. EBITDAX is not a measure of
net income or cash flow as determined by GAAP. The amounts included in the calculation of EBITDAX were computed in accordance with GAAP. EBITDAX is
presented herein and reconciled to the GAAP measure of net loss because of its wide acceptance by the investment community as a financial indicator of a
company's ability to internally fund development and exploration activities. This measure is provided in addition to, and not as an alternative for, and should be
read in conjunction with, the information contained in our financial statements prepared in accordance with GAAP (including the notes), included in our SEC filings
and posted on our website.
The following table provides a reconciliation of EBITDAX to net loss for the three and six months ended June 30, 2016 and 2015.
(in thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2016 2015 2016 2015
Net loss $ (16,035) $ (11,850) $ (29,695) $ (19,558)
Exploration 1,622 1,165 2,191 2,255
Depletion, depreciation and amortization 19,991 28,404 40,220 54,924
Share-based compensation 1,374 2,075 2,924 4,292
Unrealized loss on commodity derivatives 8,076 13,904 9,033 23,225
Write-off of debt issuance costs 563 - 563 -
Interest expense, net 6,808 6,243 13,106 12,165
Income tax benefit (8,687) (7,369) (15,932) (11,365)
EBITDAX $ 13,712 $ 32,572 $ 22,410 $ 65,938

29. EnerCom’s The Oil & Gas Conference 21 - August 2016
Cash operating expenses (unaudited)
29
We define cash operating expenses as operating expenses, excluding (1) exploration expense, (2) depletion, depreciation and amortization expense, and (3)
share-based compensation expense. Cash operating expenses is not a measure of operating expenses as determined by GAAP. The amounts included in the
calculation of cash operating expenses were computed in accordance with GAAP. Cash operating expenses is presented herein and reconciled to the GAAP
measure of operating expenses. We use cash operating expenses as an indicator of the Company’s ability to manage its operating expenses and cash flows. This
measure is provided in addition to, and not as an alternative for, and should be read in conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes), included in our SEC filings and posted on our website.
The following table provides a reconciliation of cash operating expenses to operating expenses for the three and six months ended June 30, 2016 and 2015.
(in thousands, except per-Boe amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2016 2015 2016 2015
Operating expenses $ 34,534 $ 46,970 $ 69,403 $ 92,656
Exploration (1,622) (1,165) (2,191) (2,255)
Depletion, depreciation and amortization (19,991) (28,404) (40,220) (54,924)
Share-based compensation (1,374) (2,075) (2,924) (4,292)
Cash operating expenses $ 11,547 $ 15,326 $ 24,068 $ 31,185
Cash operating expenses per Boe $ 10.06 $ 11.02 $ 10.40 $ 11.65

30. EnerCom’s The Oil & Gas Conference 21 - August 2016
F&D costs (unaudited)
30
F&D Cost reconciliation
Cost summary (in thousands)
Property acquisition costs
Unproved properties $ 653
Proved properties -
Exploration costs 4,439
Development costs 146,237
Total costs incurred $ 151,329
Reserves summary (MBoe)
Balance – 12/31/2014 146,248
Extensions & discoveries 34,895
Production (1) (5,787)
Revisions to previous estimates (8,709)
Balance – 12/31/2015 166,646
F&D cost ($/Boe)
All-in F&D cost $ 5.78
Drill-bit F&D cost 4.32
Reserve replacement ratio
Drill-bit 603%
All-in finding and development (“F&D”) costs are calculated by dividing the sum of
property acquisition costs, exploration costs and development costs for the year by
the sum of reserve extensions and discoveries, purchases of minerals in place and
total revisions for the year.
Drill-bit F&D costs are calculated by dividing the sum of exploration costs and
development costs for the year by the total of reserve extensions and discoveries for
the year.
We believe that providing F&D cost is useful to assist in an evaluation of how much it
costs the Company, on a per Boe basis, to add proved reserves. However, these
measures are provided in addition to, and not as an alternative for, and should be
read in conjunction with, the information contained in our financial statements
prepared in accordance with GAAP (including the notes), included in our previous
SEC filings and included in our annual report on Form 10-K filed with the SEC on
March 4, 2016. Due to various factors, including timing differences, F&D costs do not
necessarily reflect precisely the costs associated with particular reserves. For
example, exploration costs may be recorded in periods before the periods in which
related increases in reserves are recorded, and development costs may be recorded
in periods after the periods in which related increases in reserves are recorded. In
addition, changes in commodity prices can affect the magnitude of recorded
increases (or decreases) in reserves independent of the related costs of such
increases.
As a result of the above factors and various factors that could materially affect the
timing and amounts of future increases in reserves and the timing and amounts of
future costs, including factors disclosed in our filings with the SEC, we cannot assure
you that the Company’s future F&D costs will not differ materially from those set forth
above. Further, the methods used by us to calculate F&D costs may differ
significantly from methods used by other companies to compute similar measures. As
a result, our F&D costs may not be comparable to similar measures provided by other
companies.
The following table reconciles our estimated F&D costs for 2015 to the information
required by paragraphs 11 and 21 of ASC 932-235.
(1) Production includes 1,530 MMcf related to field fuel.

31. EnerCom’s The Oil & Gas Conference 21 - August 2016
PV-10 (unaudited)
31
The present value of our proved reserves, discounted at 10% (“PV-10”), was estimated at $504 million at December 31, 2015, and was calculated based on the first-of-the-month,
twelve-month average prices for oil, NGLs and gas, of $50.16 per Bbl of oil, $15.13 per Bbl of NGLs and $2.64 per MMBtu of natural gas, adjusted for basis differentials, grade and
quality.
PV-10 is our estimate of the present value of future net revenues from proved oil and gas reserves after deducting estimated production and ad valorem taxes, future capital costs
and operating expenses, but before deducting any estimates of future income taxes. The estimated future net revenues are discounted at an annual rate of 10% to determine their
“present value.” We believe PV-10 to be an important measure for evaluating the relative significance of our oil and gas properties and that the presentation of the non-GAAP
financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and investors in evaluating oil and gas companies. Because
there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, we believe the use of a pre-tax measure is
valuable for evaluating the Company. We believe that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and gas industry.
The following table reconciles PV-10 to our standardized measure of discounted future net cash flows, the most directly comparable measure calculated and presented in
accordance with GAAP. PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP.
(in millions) December 31,
2015
PV-10 $ 504
Less income taxes:
Undiscounted future income taxes (307)
10% discount factor 263
Future discounted income taxes (44)
Standardized measure of discounted future net cash flows $ 460

32. Contact information
SUZANNE OGLE
Vice President – Investor Relations & Corporate Communications
817.989.9000
ir@approachresources.com
www.approachresources.com