Antero Resources

Antero Resources | Doddridge County | Energy Companies | Energy Services | Industrywide Issues | MarkWest Energy | NGLs | Processing Plants | West Virginia

MarkWest to Build 5th Cryo Plant in WV Courtesy Antero Resources
November 8, 2013November 8, 2013

MarkWest Energy continues its Marcellus/Utica infrastructure expansion. In an announcement yesterday, MarkWest said they will build a fifth (!) 200 million cubic feet per day cryogenic gas processing plant at its Sherwood (Doddridge County), WV facility. In the latest edition of the Marcellus and Utica Shale Databook (2013 Volume 2), MDN lists all of the projects announced by MarkWest and others (111 projects in all). This one is brand new and would be 112. MDN estimates this new cryogenic processing plant along with two others currently under construction at the Sherwood complex cost in the neighborhood of $200 million each to build.

Cryogenic plants separate natural gas liquids (NGLs, or “wet gas”) from methane (“dry gas”). Why a fifth plant at the same facility? It’s being built at the request of Antero Resources. MarkWest signed a deal with Antero to provide them with wet gas processing capacity at the plant. MarkWest says the new plant will be built and online by third quarter of 2014. When it goes online, the total processing capacity at the Sherwood complex will be 1 billion cubic feet of natural gas per day–a really astonishing number. Here’s the MarkWest announcement:
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Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Noble County | Ohio | Utica Shale

Muskingum Watershed District Approves 3rd Water Sale for Fracking
October 23, 2013October 23, 2013

As they have done in the past, the Muskingum Watershed Conservancy District in Ohio has approved more water sales for using fracking. This batch comes from Seneca Lake in southeast OH. The Utica Shale driller buying the water is Antero Resources…
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Antero Resources | Energy Companies

Antero’s Stock Climbs 18% on First Day of Trading
October 11, 2013October 11, 2013

The news continues to be good for Antero Resources, one of the biggest drillers in the Marcellus Shale that went public two days ago raising a boatload of money (see Antero’s IPO Fetches $1.57B, Company Valued at $11B!). In the first full day of trading (yesterday), Antero’s stock price just kept going up and up and up…
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Antero Resources | Energy Companies

Antero’s IPO Fetches $1.57B, Company Valued at $11B!
October 10, 2013October 10, 2013

MDN told you a few weeks ago that Antero Resources, a privately-owned (and major) driller in both the Marcellus and Utica Shale, would soon float an initial public offering (IPO)–or in the parlance of the financial industry, they would soon “go public” (see Antero Resources Offers 30M Shares of Stock in IPO). Today is the day that Antero goes public and begins trading under ticker symbol AR.N. Yesterday they floated the IPO shares and the company got even more money than they had hoped for–raking in $1.57 billion (they wanted $1.4 billion).

Because of the really good IPO, the company begins its public life with a market valuation of $11 billion–with plenty of borrowing power to finance their many drilling projects in the Marcellus/Utica…
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Antero Resources | Energy Companies

Antero Resources Offers 30M Shares of Stock in IPO
September 30, 2013September 30, 2013

Antero Resources is a major privately-owned driller operating in both the Marcellus and Utica Shale plays. Antero is aggressively pursuing both plays as well as aggressively pursuing the money they’ll need to drill in them. In early September, Antero secured a $250 million line of credit for drilling (see Antero Resources Gets Extra $250 Million Credit Line). Just two weeks ago Antero announced they were investing an extra $500 million in Marcellus/Utica drilling–this year (see Antero Ups 2013 Budget Extra $500M for Marcellus/Utica Drilling). In August, Antero announced they’re building a $525 million water pipeline from the Ohio River to their well sites (see More on that Half Billion Dollar Antero Water Pipeline in WV).

The nosebleed rate of Antero’s spending almost leaves one out of breath! So where will the company get the money to do it all? A $250M LOC won’t do the trick by itself. We know, we know! Go public. And so they are. Antero announced this morning they will offer 30 million shares they hope will raise in the neighborhood of $1.4 billion for the company. Just one word of advice to Antero: watch out for corporate raiders like Carl Icahn…
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Antero Resources | Energy Companies

Antero Ups 2013 Budget Extra $500M for Marcellus/Utica Drilling
September 19, 2013September 19, 2013

Antero Resource provided an update yesterday on their Marcellus and Utica Shale operations. Among the interesting highlights: Antero has started using longer “shorter stage lengths” (SSLs) when fracking wells–going from 150-200 feet per frack stage to an average of 350 feet per stage. They report being “encouraged” by the results. Antero also announced they’re investing an extra $500 million in their 2013 capital budget for drilling in the Marcellus and Utica…

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Antero Resources | CONSOL Energy | Energy Companies | Ohio | PDC Energy | Statewide OH

Eastern OH Shale Drillers Donate to Local Schools
September 11, 2013September 11, 2013

Several high schools in eastern Ohio have received a surprise gift: money from drillers. Antero Resources recently donated $2,500 to each of five high schools for use in their athletics programs. PDC Energy recently donated $5,000 to the Wolf Creek school. And CONSOL Energy is running a contest for select Ohio schools with a $10,000 first prize.

All of these efforts come under the umbrella of what we call “the industry gives back”…
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Antero Resources | Energy Companies

Antero Resources Gets Extra $250 Million Credit Line
September 3, 2013September 3, 2013

Antero Resources was recently crowned as the driller with the most productive Utica Shale well in Ohio, a single well that will provide the company with an enormous amount of revenue (see WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!). Apparently the publicity has been good for Antero, who announced today they’ve upped their line of credit at the bank–from $1.75 billion to a whopping $2 billion. So far Antero has used about $1 billion from their line of credit to finance drilling operations in the Utica and Marcellus Shale.

Must be the bankers at JPMorgan Chase and Wells Fargo were impressed with the performance of Antero’s latest wells–$250 million impressed…
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Antero Resources | Energy Companies | Lease & Royalty Payments | Monroe County | Utica Shale | West Virginia

WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!
August 30, 2013August 30, 2013

The Yontz 1H well may not produce at these unheard-of levels for an extended period, but heck, if a gas well is bringing in $300,000 per day in revenue, it doesn’t have to last long! That’s the staggering amount of revenue that a West Virginia University professor predicts will be produced by the monster well recently drilled by Antero Resources in Monroe County, WV (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). At the rate the gas and gas liquids are flowing from the well right now, it will bring in over $2 million per week in revenue for Antero. If royalties are 20% for the landowner, that’s $400,000 per week for the Yontz family!

With those kinds of numbers, no wonder Antero is willing to “roll the dice” and spend a half billion dollars to build a new water pipeline (see Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe)…
Read More “WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!”
Antero Resources | Energy Companies | Monroe County | Ohio | Utica Shale

Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d
August 29, 2013

Somehow the following news (now a few weeks old) slipped by our usually-good radar. Antero Resources has taken the top spot away from Gulfport Energy as having the most productive Utica Shale well in Ohio. Gulfport had what was dubbed their “alpha dog” well, the Wagner 1-H well producing 14 million cubic feet of natural gas per day (Mmcf/d). Then came Gulfport’s Shugert 1-1H, which MDN dubbed the “King of Utica Shale wells” producing a whopping 20 Mmcf/d. After that was the Shugert 1-12H well, sister well to the 1-1H. We called that one “the Emperor well” producing 28.5 Mmcf/d (see Gulfport’s New Utica Well Produces Mind-blowing 28.5 Mmcf/d!).

We’re now officially out of metaphors and labels. Antero Resources’ Yontz Utica Shale well recently saw a peak rate of a truly mind-blowing 38.9 Mmcf/d. Gulfport’s Shugert wells are in Belmont County. The Yontz well is located in Monroe County, just south of Belmont…
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Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues

Prometheus to Supply Antero Resources with LNG for Drilling Rigs
August 20, 2013August 20, 2013

In April MDN told you that Antero Resources was the second Marcellus/Utica Shale driller that would convert its drilling rigs to run on 100% liquefied natural gas, or LNG (see Antero Res 2nd Marcellus Driller to Use 100% NatGas Rig Engines). Seems Antero now has a supplier that will deliver the LNG and the necessary equipment to Antero’s drill sites to power those rigs. That supplier is Prometheus Energy Group…
Read More “Prometheus to Supply Antero Resources with LNG for Drilling Rigs”
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pipelines | Ritchie County | Statewide WV | Tyler County | West Virginia

More on that Half Billion Dollar Antero Water Pipeline in WV
August 20, 2013August 20, 2013

We have a few more helpful details on Antero’s project to build an 80-mile water pipeline from the Ohio River to Tyler and Ritchie counties in West Virginia. The project has been approved and will cost Antero $525 million (that’s over half a billion). However, when complete, the new pipeline and other infrastructure Antero has and is building will reduce their cost to drill a well by $600,000. They plan to drill some 30% of their wells this year using water from this project, and 90% of the wells they drill in 2014.

More information about the project, which Antero has been tight-lipped about:
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Accidents | Antero Resources | Energy Companies | Harrison County | Industrywide Issues | West Virginia

Explosion at Antero Resources Drill Pad in Harrison County, WV
August 20, 2013August 20, 2013

Our sincere apologies: The explosion in Harrison County, WV is OLD news and was somehow recirculated. We pride ourselves on “getting it right” and not making these kinds of errors. This time we blew it. Again, apologies.
Antero Resources | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe
August 14, 2013August 14, 2013

According to a story in The Wall Street Journal, Antero Resources will spend half a billion dollars to construct an 80-mile pipeline in the Marcellus/Utica Shale region. But this rather expensive pipeline will not carry natural gas, gas liquids or even oil. Instead, it’s a pipeline that will deliver water from the Ohio River to some of Antero’s most active drilling locations scattered in West Virginia and Ohio–to be used for fracking.

For Antero with some 100K acres of leased land in the Marcellus, committing to half a billion dollars (the company grossed $265 million last year) is a huge roll of the dice…
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Accidents | Antero Resources | Doddridge County | Energy Companies | Industrywide Issues | West Virginia

Antero Given Green Light to Resume Drilling at WV Blast Site
August 12, 2013August 12, 2013

In early July, MDN told you about an explosion at an Antero Resources drillpad in Doddridge County, WV (see Update on Antero Well Explosion in Doddridge County, WV). Half a dozen workers were injured in the resulting fire. Sadly, two of those workers recently died from their injuries.

We now know what caused the blast: open hatches on a number of wastewater tanks that allowed gas to build up, which led to a flash fire. The WV Dept. of Environmental Protection (DEP) shut down drilling at the site after the fire to investigate. The DEP is now satisfied that Antero knows what happened and has put in place measures to prevent it from happening again, so the DEP has just lifted the “cease operations” order. Antero is now free to resume drilling at the site…
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Antero Resources | Energy Companies | Industrywide Issues | Reserves (Proved and Unproved)

Antero Resources: Proved Reserves Up 47% from December
July 30, 2013July 30, 2013

Major Marcellus Shale driller Antero Resources announced yesterday that their “proved reserves” are up a healthy 47% from the end of last year–to 6.3 trillion cubic feet equivalent. If you look at their 3P reserves–proved, probably and possible–the number is 27.7 trillion cubic feet. Keeping an eye on a company’s reserves is important to know how much gas they will likely produce. It’s a measure often used by stock analysts and investors, but it’s a metric worth minding for landowners too. The numbers indicate what Antero says is in the ground, how much of it is there, and how healthy the company’s balance sheet is likely to look in the coming next few years.

Antero’s announcement from yesterday, with details about what makes up the reserve number (methane, ethane, etc.):
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