Antero Resources

Antero Resources | Doddridge County | Energy Companies | Equinor/Statoil | Lease & Royalty Payments | Tyler County | West Virginia | Wetzel County

Statoil Sells Another 11.5K WV Marcellus Acres to Antero for $96M
August 2, 2016August 2, 2016

Norwegian oil giant Statoil, which is 67% owned by the country of Norway, was an early and big mover in leasing Marcellus and Utica Shale acreage, amassing a huge 665,000 acres. Over the past few years Statoil has been equally aggressive in divesting itself of its non-operated acreage (Statoil doesn’t do the drilling) in the northeast–in particular in West Virginia. This is about to get complicated, but we’ll try to make it understandable. A lot of Statoil’s acreage is in joint venture deals. In December 2014, Statoil sold some of its “working interest” in the Marcellus acreage it owns in WV and PA to Southwestern Energy for $394 million (see Statoil Reduces Marcellus Holdings in $394M Deal with Southwestern). The deal reduced Statoil’s ownership in its WV acreage from 32.5% down to 23%. In June of this year, Antero Resources purchased some of that WV acreage from Southwestern (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). Antero snapped up even more in the same geography in July (see Antero Resources Picks Up Another 13K Marcellus Acres for $108M). Yesterday Statoil announced it is selling more (the rest of?) its ownership in non-operated WV Marcellus acreage to Antero–some 11,500 net acres–for $96 million in cash. That is, Antero continues to consolidate and take full ownership over Marcellus acreage in WV–primarily in Wetzel, Tyler and Doddridge counties…
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Antero Resources | Energy Companies | Southwestern Energy

Antero Resources Picks Up Another 13K Marcellus Acres for $108M
July 15, 2016July 15, 2016

Yesterday Antero Resources, one of the largest Marcellus/Utica drillers, issued an operations (not financial) update for second quarter 2016. The big news in the update is that they’ve picked up another 13,000 net Marcellus acres, and with it 3 million cubic feet per day of production, for $108 million. This is related to Antero’s purchase of 55,000 acres from Southwestern that we reported in June (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). As we reported at the time, Southwestern had previously paid Chesapeake Energy $12,000 per acre for that same land (see Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre). Antero picked up the acreage for $8181 per acre–about $4K/acre (one-third) less than what Southwestern paid for it. Apparently there was an option in the deal Antero signed with Southwestern that Southwestern has the right to sell an additional 13,000 acres, which they’ve now done. If you do the math, Antero paid $8,307 for the new acreage–still a steal compared to what Southwestern originally paid for it. You’ll notice in the announcement below that Antero calls Southwestern “a third party.” Not sure why they don’t name them, but we love naming names on MDN…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Pipelines | Southwestern Energy | Tyler County | West Virginia | Wetzel County

Antero Will Use Its Own Midstream Co on Newly Acquired WV Acreage
June 13, 2016June 13, 2016

On Friday MDN reported that Antero Resources has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million (see Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres). As we observed (which no one else reported), Antero paid far less for the acreage than Southwestern did in 2014 when they purchased it from Chesapeake Energy. We spotted an interesting tidbit from SNL Financial: One of the attractions for Antero is that they will use their own midstream company to pipe the gas they produce from the newly purchased property. There are no preexisting contracts in place with another midstream company. So Antero will make money in two ways: by producing the gas, and by transporting it. Smart. Another interesting tidbit: While Antero says the acreage is in its “core” area, a Barclays analyst calls it “second best” acreage for Southwestern…
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Antero Resources | Doddridge County | Energy Companies | Southwestern Energy | Tyler County | West Virginia | Wetzel County

Antero Takes Southwestern to Cleaners in Deal for 55K Marc. Acres
June 10, 2016June 10, 2016

Antero Resources announced yesterday that the company has just cut a deal with Southwestern Energy to purchase 55,000 net acres located in Wetzel, Tyler and Doddridge Counties in West Virginia for $450 million. Antero says the acreage is in the “core” of the Marcellus and some 75% of the acreage also includes Utica Shale rights. The acreage Southwestern is selling is acreage they themselves bought in 2014 from Chesapeake Energy. Chessy originally signed the acreage with landowners for $5 per acre (peanuts). Southwestern paid Chesapeake $12,000 per acre (see Southwestern Paid Chesapeake $12K/Acre for Land Signed @ $5/Acre). Antero picked up the acreage for $8181 per acre–about $4K/acre (one-third) less than what Southwestern paid for it. Oops. No wonder Antero is crowing about the deal! Here’s the lowdown, with announcements from both Antero and Southwestern…
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Antero Resources | Energy Companies

Antero Resources Floats 27M Shares of New Stock to Buy Acreage
June 10, 2016June 10, 2016

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”…
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Antero Resources | Crestwood Midstream | Energy Companies | Energy Services

Crestwood 1Q16: Spills the Beans on Antero DUCs; Pipe Delays Good
May 10, 2016May 10, 2016

Crestwood Equity Partners (nee Crestwood Midstream) issued its first quarter 2016 update last week. In April Crestwood announced that New York City utility giant Consolidated Edison Inc. has formed a 50/50 joint venture to purchase ownership of pipelines and storage facilities in the PA and NY Marcellus region (see Utility Giant ConEdison Buys a Piece of the Marcellus Midstream). The newly formed jv, called Stagecoach Gas Services, will continue to be operated by Crestwood. Stagecoach and other projects in the Marcellus/Utica get an update in this latest quarterly report from Crestwood. We also grabbed some of the unscripted commentary from Crestwood’s quarterly analyst phone call. Interesting tidbits from that include comments by CEO Robert Phillips that the cancellation of Kinder Morgan’s NED pipeline and the delay of Williams’ Constitution Pipeline gives Crestwood a big opening and huge advantage with the Stagecoach deal. Also interesting: Crestwood doesn’t foresee Antero Resources (one of its major customers) completing 22 already-drilled wells and bringing them online until 2017/2018. Did Crestwood just spill the beans on Antero’s plans in that neck of the woods?…
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Antero Resources | Energy Companies

Antero Resources 1Q16: Production Up, Gets $4.54/Mcf for Gas!
April 28, 2016April 28, 2016

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…
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Antero Resources | Energy Companies

Antero Resources 1Q16: Production Up 18%, Sells Gas for $4.54/Mcf
April 15, 2016April 15, 2016

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…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Pipelines | Pleasants County | Regulation | Ritchie County | Tyler County | West Virginia

WV DEP Fines Antero Resources $93K for “Pollution” of Streams
March 31, 2016March 31, 2016

The West Virginia Dept. of Environmental Protection has gotten a signed consent order from Antero Resources assessing a fine of $93,000 on the company for “pollution” of waterways in several WV counties related to installing pipelines. So says a single Associated Press article. We can find nothing about this story from another other news source than the AP. Not on the WV DEP website. Not on Antero’s website. We scoured the web. We scoured our own MDN archives. Nada. Just a single AP story currently running in dozens of newspapers and in other media outlets/websites across the country. Here is the entire, very brief AP story with sparse details…
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Antero Resources | Energy Companies

Antero Sells 8M Units in Midstream Subsidiary, Looks to Raise $179M
March 29, 2016March 29, 2016

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…
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Antero Resources | Energy Companies | Industrywide Issues | Litigation | Regulation | Statewide WV | West Virginia

WV “Help Out Antero” Bill (re Nuisance Lawsuits) is Dead for 2016
March 9, 2016March 9, 2016

We’ve told you about a bill winding its way through the legislative process in West Virginia that would stop a rash of so-called nuisance lawsuits–primarily against Antero Resources (see WV Senate Bill Stops Frivolous Nuisance Lawsuits Against Drillers). Hundreds of nuisance lawsuits (“they’re too loud, “they leave the lights on too late,” “I don’t like the truck traffic”) have been filed against Antero and other drillers. The lawsuits against Antero have been combined into a class action lawsuit (see More People Pile on Antero, Seek to Join Mass “Nuisance” Lawsuit). It’s a back door way to bring down a company–like a pack of hyenas attacking a giraffe. If the pack is big enough, it can kill its prey. Senate Bill (SB) 508 was meant to stop this insanity, and as of a few weeks ago it was advancing (see 2 Bills Favorable to Drillers Advance in WV Senate – SB 508 & 565). But that was then, this is now. SB 508 is now pretty much dead. A House committee is holding it up and the bill won’t make it to the floor for a vote before the end of WV’s brief 60-day legislative session…
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Antero Resources | Energy Companies | Rice Energy

Which 2 Northeast Drillers Does Wall Street Love the Best?
March 3, 2016March 3, 2016

Wall Street is looking favorably on Marcellus/Utica drillers. Why? Because they’re cutting back spending–way back. On average the eight largest drillers in the northeast are scaling back spending in 2016 by 51%. Good for the number crunchers–bad for jobs and economic benefits for communities. Collectively their stock price is up about 3% since the beginning of the year, while the S&P Oil & Gas Exploration & Production ETF is down 19%. However, there are two northeast drillers who are scaling back a little, but not nearly as much as the others. These two drillers believe they can keep drilling, and pumping, profitably in 2016. Which ones are they?…
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Accidents | Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | West Virginia

Antero Resources Well Pad Fire in Doddridge County, WV
February 29, 2016February 29, 2016

There was a small fire at an Antero Resources well pad in Doddridge County, WV last Thursday. Antero immediately shut down the four producing natural gas wells and contacted local first responders who put the fire out. The important news is that (a) nobody was hurt, (b) the environment was not harmed, and (c) the wells are secure and there is no danger. What happened is this: When natural gas comes out of the borehole, more than just methane comes out. Along with methane comes other hydrocarbons and water. There is a separating unit on the pad to strip out the water and some of the other substances from the methane. That unit failed, allowing some methane to escape which then caught fire. The good new is that safety precautions worked and the fire did not spread. Below are the details…
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Antero Resources | Energy Companies

Antero Resources Stands Above the Rest – Nets $941M in 2015
February 25, 2016February 25, 2016

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…
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Antero Resources | Energy Companies

Antero Resources 2016: Spending 23% Less, Drilling 110 Wells
February 18, 2016February 18, 2016

In January Antero Resources, one of the biggest and best drillers in the Marcellus/Utica, released their fourth quarter and full year operational (not financial) update for 2015 (see Antero Resources 4Q15 Update: NatGas Sales Averaged $4.40/Mcf). Antero still hasn’t released their 4Q15 and full 2015 financial update, but yesterday the company did release their 2016 capital budget and guidance. Lots of interesting details, like this: Antero will spend $1.4 billion in 2016 on drilling, down 23% from the $1.8 billion they spent in 2015; they plan to complete a staggering 110 wells in 2016 and by the end of the year they will have 70 wells drilled but not completed (DUCs); of the $1.4 billion they’re spending in 2016, $1.3 is for drilling and completions, and $100 million is for new or renewed lease deals. Here’s the full 2016 looking forward update from Antero…
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Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | Landfills | Wastewater | West Virginia

Antero Plans Salt Landfill Next to Proposed Wastewater Recycling Plant
February 16, 2016February 16, 2016

In August of last year, MDN told you that one of the biggest drillers in the Marcellus/Utica, Antero Resources, floated the idea of building a $275 million state-of-the-art frack wastewater treatment plant in Doddridge County, WV (see Antero Building New 60K Bbl Wastewater Recycling Facility in WV). The new plant, which will process 60,000 barrels of wastewater per day, will save Antero $150,000 per well in completion costs once it’s up and running. Antero tapped French company Veolia to engineer and build the plant (see French Company Confirms Building $275M Wastewater Plant for Antero). The plant will go online in late 2017. The new news is that last week Antero filed for a permit to build a landfill next to the wastewater plant. The wastewater plant will separate water, salt and radioactive particles. The salt can be sold to municipalities for use as road salt–but frankly there’s not enough of a market to sell it all. And not all of it will be of sufficient quality to be sold that way. So Antero needs a place to dispose of it–hence the $20 million landfill proposal…
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