Antero 1Q – Production Up 8%; Profits Down 83%; 12 New Wells
Antero Resources, which is 100% focused on the Marcellus/Utica with over 500,000 net acres under lease (and the largest M-U driller in West Virginia), issued its first quarter 2024 update last week. The company reports net production averaged 3.4 billion cubic feet equivalent per day (Bcfe/d) during 1Q24, an increase of 5% year-over-year. Of the company’s 2024 production, liquids (NGLs) averaged 202 thousand barrels per day (MBbl/d), an increase of 8% from 1Q23. Natural gas production averaged 2.2 Bcf/d, up 4% from 1Q23. The company made $36 million in 1Q24 versus a profit of $213 million in 1Q23 — down a big 83% year over year.
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There were 16 new permits issued to drill in the Marcellus/Utica during the week of Mar. 11 – 17, down 3 from 19 permits issued the prior week. Pennsylvania issued 9 new permits. Ohio issued 4 new permits. And West Virginia issued 3 new permits. Penn Production Group (PPG) and EOG Resources tied for most new permits with 4 each. PPG received 4 permits to drill in Clearfield County, PA. EOG received 4 permits to drill in Harrison County, OH. Coterra Energy received 3 permits to drill in Susquehanna County, PA. Antero got 2 permits for Ritchie County, WV. Southwestern Energy and Chesapeake Energy each received a single permit to drill in Bradford County, PA. EQT received a single permit for Wetzel County, WV.
Earlier this week, MDN told you that EQT, the country’s largest natural gas producer, had implemented an immediate cutback on natural gas production of 1 billion cubic feet per day (see 
Last week, Antero Resources, which is 100% focused on the Marcellus/Utica with over 500,000 net acres under lease (and the largest M-U driller in West Virginia), issued its fourth quarter and full-year 2023 update, which we covered (see 
Shippers, including drillers, utility companies, and others that buy and sell natural gas, are now free to buy and sell producer-certified gas (PCG) or responsibly sourced gas (RSG) at all pooling points across the Tennessee Gas Pipeline (TGP) system following a decision by the U.S. Court of Appeals for the District of Columbia (DC Circuit). The judges of the DC Circuit dismissed a case brought by Antero Resources and EQT Corporation attempting to block TGP’s plan. We will explain.
How was 2023 with respect to the return on investment (ROI) in the stocks of gas-focused (largely Marcellus/Utica) drillers? Of the three classes of O&G companies — oil-focused, diversified, and gas-focused — it was the gas-focused drillers who had the best stock returns in 2023, according to an analysis by RBN Energy. Gas-weighted E&Ps posted a 7% median gain last year, according to RBN. Most of the companies in RBN’s list of gas-focused drillers have major operations in the M-U. Let’s have a look at how each one did.
It’s been a financial roller coaster for oil and gas drillers over the past 15 years. Investors in shale oil and gas companies suffered for years with little or no returns for their invested money. Five of eight large Marcellus/Utica drillers saw their share prices decrease by an astonishing 85% or more from 2008 to 2019 (see