Antero Resources 4Q15 Update: NatGas Sales Averaged $4.40/Mcf

Yesterday Antero Resources, one of the biggest drillers in the Marcellus/Utica, filed their fourth quarter 2015 operational update. As in the past they did not disclose their financials–they wait a few more weeks to disclose those numbers. However, as in the past, the operational update is full of great information. Of chief importance (for us) is how much they sell their natural gas for. Because they have such a great hedging program–locking in future sales at a given price–Antero sold their gas for an average of $4.40 per thousand cubic feet (Mcf) during 4Q15–which is an average of $2.13 MORE than gas sold for at the benchmark Henry Hub! Astonishing. Companies can make money selling gas at those prices. Antero reports that although 4Q15 production volumes were 18% higher than 4Q14, the volume was down 1% from the previous quarter, 3Q15. Why? Antero is selectively shutting in production at some locations so they don’t have to sell it at depressed prices at the Dominion South and TETCO M2 trading points. Smart. During 4Q15 Antero drilled and brought online 14 Marcellus wells and 16 Utica wells. Below is the full update they released yesterday, along with a copy of their latest PowerPoint presentation…

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