During the corresponding time, Approach Resources Inc saw a revenue deteriorated by -52.66 % year on year, sequentially revenue grew by 4.73 %. While revenue at the Approach Resources Inc's corporate clients
Approach Resources Inc's Comment on Sales, Marketing and Customers
The revenues generated by our operations are highly dependent upon the prices
of oil, NGLs and natural gas. Oil, NGLs and natural gas are commodities, and therefore,
we receive market-based pricing. The price we receive for our oil, NGLs and natural
gas production depends on numerous factors beyond our control, including supply
and demand for oil, NGLs and gas, seasonality, the condition of the domestic and
global economies, particularly in the manufacturing sectors, political conditions
in other oil and gas producing countries, the extent of domestic production and
imports of oil, NGLs and gas, the proximity and capacity of gas pipelines and
other transportation facilities, seasonality, the marketing of competitive fuels
and the effects of federal, state and local regulation. The oil and gas industry
also competes with other industries in supplying the energy and fuel requirements
of industrial, commercial and individual consumers.
Sales to JP Energy Development, LP (“JP Energy”) and DCP Midstream,
LP (“DCP”) accounted for approximately 54% and 46%, respectively,
of our total sales.
