Antero Resources 2Q15: Production Up 67%, Continues to Bleed $$

Antero Resources, one of the biggest drillers in the Marcellus/Utica and a company totally focused on northeast shale drilling filed its second quarter financial update yesterday. On the positive side, Antero’s natural gas production rose 67% year over year to 1.5 billion cubic feet per day equivalent (Bcfe/d) in 2Q15. Looking forward, Antero says they expect when you compare all of 2015 production with all of 2016 production you will see an increase of 25-30% for 2016. The company continues to drive down costs–9% lower in 2Q15 from a year ago. On the negative side, Antero continues to bleed (a lot of) money. In 2Q14, Antero had a net loss of $42 million. In 2Q15 that expanded to a net loss of $145 million–a 245% increase in the wrong direction, down. Antero is a company with great assets and a solid operation, but losing money. Antero, backed by Warburg Pincus LLC, has been mentioned in the past as a possible target for a takeover (by Spanish energy giant Repsol, but Repsol ended up buying Talisman Energy instead). No, we’ve not heard any recent rumors, specific or unspecific. But don’t be surprised if one of the majors makes a play for Antero. Here’s their 2Q15 update…

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