Antero Resources

Antero Resources, one of the biggest drillers in the Marcellus, released their second quarter 2016 update yesterday. Antero has one of, if not THE best, hedging programs in the entire Marcellus/Utica region. Hedging means they get a higher price for selling their gas than just about anyone else through prearranged financial/trading contracts. But Antero’s famed hedging program wasn’t enough to keep the company from losing $596 million in 2Q16. By comparison, Antero lost $145 million in 2Q15. However, it wasn’t all doom and gloom. Antero’s production was up a healthy 19% in 2Q16–to an average 1.762 billion cubic feet per day (or 1,762 MMcf/d, a new record for the company). If you mix in oil, natural gas liquids and hedging, Antero got $3.95 per thousand cubic feet (Mcf) for their hydrocarbons, while the actual spot sale price averaged $1.93/Mcf–which shows just how savvy Antero’s hedging program is. Lately the company has been snapping up more Marcellus acreage, mostly in WV (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres; Antero Resources Picks Up Another 13K Marcellus Acres for $108M; and Statoil Sells Another 11.5K WV Marcellus Acres to Antero for $96M). Obviously Antero is bullish on the Marcellus! Here’s their latest update…
Read More “Antero Resources Production Up 19% in 2Q16, but Loses $596M”

As we pointed out in our companion story today, Antero Resources took Southwestern Energy to cleaners in buying 55,000 of Marcellus/Utica acres for about one-third less than Southwestern paid for the acreage just two years ago (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). Antero is purchasing the acreage for $450 million. They don’t just have that kind of cash laying around, so they have to get the cash. In addition to announcing the deal yesterday, Antero also announced a new stock offering–selling off more ownership in the company. Antero plans to float 26,750,000 new shares of stock and hopes to get $762 million for it–covering the cost of the acreage deal with Southwestern plus some extra for “general corporate purposes”…
Read More “Antero Resources Floats 27M Shares of New Stock to Buy Acreage”

Antero Resources, one of the largest drillers in the Marcellus/Utica, continues to impress. Yesterday the company released its first quarter 2016 update and for all intents and purposes they broke even (financially) during 1Q16–they lost $5 million. Granted, they made $394 million in 1Q15, so that’s quite a swing the other way. But in a day when most drillers are racking up near billion dollar losses, Antero is a star performer. The company tweaked expected production for this year–up another 2% over their previous “guidance”. Where Antero really shines is with their hedging–a financial technique that allows them to lock in prices for natural gas they sell that are much higher than their competitors. With hedging, Antero got an average of $4.54 per Mcf in 1Q16, which is $2.45/Mcf above Nymex futures price. Crikey! Here’s the update from one of the Marcellus/Utica’s star performers…
Read More “Antero Resources 1Q16: Production Up, Gets $4.54/Mcf for Gas!”

Antero 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…
Read More “Antero Resources 1Q16: Production Up 18%, Sells Gas for $4.54/Mcf”

There’s a handful of Marcellus/Utica drillers who are still making money and still drilling in the northeast. One of the few is Antero Resources. In 2015 Antero made, after expenses, nearly $1 billion in profit (see Antero Resources Stands Above the Rest – Nets $941M in 2015). Impressive. For 2016, even though Antero will scale back on spending, they still plan to drill 110 wells in the northeast (see Antero Resources 2016: Spending 23% Less, Drilling 110 Wells). Really impressive. Although they’ve had enormous success, you can never have too much cash if you’re a driller. Last week Antero announced they are selling 8 million new “common units” (think shares of stock) in Antero’s midstream subsidiary, hoping to raise $179 million of cold, hard cash to keep the drill bits turning. After the announcement, Antero Midstream’s unit prices plunged…
Read More “Antero Sells 8M Units in Midstream Subsidiary, Looks to Raise $179M”

There’s at least one driller that’s figured out how to continue making money in one of the worst down markets in two generations: Antero Resources. Antero released their “good news” operational update back in January (see Antero Resources 4Q15 Update: NatGas Sales Averaged $4.40/Mcf). Earlier this month the company issued an update for 2016 that they will cut back spending by 23% (far less than others) with plans to drill 110 wells this year in the Marcellus/Utica (see Antero Resources 2016: Spending 23% Less, Drilling 110 Wells). We thought for sure when they finally got around to sharing their financial numbers it would be red as far as the eye can see. Nope! Yesterday Antero, one of the biggest and best drillers in the Marcellus/Utica, released their fourth quarter and full year 2015 financial update. And guess what? They made more money last year than the year before! Three years ago Antero lost $18.9 million. Two years ago, after expenses, Antero made $674 million. Last year, in 2015, Antero made, after expenses, $941 million. That’s nearly $1 billion in profit! Other drillers need to study Antero closely to see what they’re doing right…
Read More “Antero Resources Stands Above the Rest – Nets $941M in 2015”