Antero Ramps Up Growth, Owns 40% of Undeveloped M-U NGL Acreage

We have commented and observed a number of times that Antero Resources, one of the biggest drillers in the Marcellus/Utica, is perhaps the best company in our region at hedging. As we wrote in January 2016: “What’s Antero’s secret to making money in arguably the worst time for our industry in a generation? In a word, it’s hedging. Somehow Antero crafts financial deals a year or more in advance to sell whatever gas they produce for prices much higher than others–at prices that mean the company continues to make a profit. Most energy companies these days are keeping the people who run those companies, AND their investors, up at night. A company like Antero comes as close to any as a SWAN–a ‘Sleep Well At Night’ energy company” (see How Antero Resources Converted an Ugly Duckling into a SWAN). Antero consistently gets more money for the gas it sells than other large drillers in the M-U. So we like to keep an eye on the company. An analyst at Morningstar, an investment research and investment management firm headquartered in Chicago, published an article yesterday closely looking at Antero. He finds that Antero is gearing up to grow NGLs (natural gas liquids) in 2017. Little-known factoid: Antero owns 40% of the undeveloped liquids-rich acreage in the Marcellus/Utica region. Can the company repeat its top hedging performance with NGLs, as they have with methane?…

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