How Antero Resources Converted an Ugly Duckling into a SWAN

Antero Resources is perhaps the largest driller completely focused on the Marcellus/Utica (by acreage). They are certainly one of the most important drillers in the northeast. And bucking the trend of almost all of their competitors, they somehow manage to operate in the black (see Antero Resources 3Q15: Bucks the Trend, $237M in the Black!). 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. An interesting article on the Seeking Alpha website gives us background and clues as to how Antero has been able to convert itself from an ugly duckling into a SWAN…

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