Antero Resources Swings to $849M Loss in 2016, Prod Jumps 24%

On Tuesday, Antero Resources, one of the largest and most active drillers in the Marcellus/Utica, issued its 2016 and fourth quarter 2016 update. The company reports net daily production averaged 1,847 million cubic feet equivalent (MMcfe) per day, a whopping 24% increase over 2015 production levels. Digging through the update we found this interesting statistic: It cost Antero an average of $0.84 million per 1,000 feet to drill and complete a Marcellus well, and it cost the company an average of $0.99 million per 1,000 feet to drill and complete a Utica well. Those numbers are 29% and 27% less than a year ago, respectively. The company continues to have some of the best hedging (prices locked in early for the gas they sell) in the business. The company’s natural gas production for 2017 is fully hedged at an average index price of $3.63 per thousand cubic feet (Mcf). The Henry Hub price as this was being written was $2.77/Mcf. Smart! But all was not butterflies and unicorns for Antero in 2016. The company reports losing $849 million in 2016, after making $941 million in 2015. That’s a swing of nearly $2 billion in one year. Ouch. More interesting factoids from the update: Antero plans to average sinking nine wells per pad in the Marcellus, and six wells per pad in the Utica in 2017. Here’s the full update, along with a brand new PowerPoint presentation…

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