Antero Resources 1Q16: Production Up 18%, Sells Gas for $4.54/Mcf

antero resourcesAntero Resources is one of the very few Marcellus/Utica drillers (actually drillers of any play) who is still making money in this severe downturn in prices (see Antero Resources Stands Above the Rest – Nets $941M in 2015). Yesterday Antero released their first quarter 2016 operational (not financial) update. Among the gems: Production continued to increase–to an average 1.758 billion cubic feet per day. That’s up 18% from 1Q15 and up 17% from 4Q15. The key to how they make their money was also revealed. Antero’s gas sold for $2.08 per thousand cubic feet (Mcf) BEFORE hedging. But Antero hedges most of its production, so the price they received AFTER hedging was $4.54/Mcf. The company says they sold 99% of their gas to “favorably priced markets.” They must have really good financial people at Antero! Other fascinating tidbits: Drilling and completion costs have sunk to under $1 million per 1,000 feet in the Marcellus, and $1.14 million per 1,000 feet in the Utica. Here’s the full update from yesterday with loads of useful details…

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