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Antero Resources +2% as Q2 production passes 1B cfe/day

  • Antero Resources (AR +2.1%) moves higher after announcing after the close yesterday it produced 891M cfe/day during Q2, a 94% Y/Y and 13% Q/Q improvement, as it set a company record and passed the milestone of 1B cfe/day of net daily production.
  • AR's four-well Bee Lewis pad in the Marcellus had a combined 79M cfe/day peak five-day sales rate while producing 1265 Btu gas, while the three-well Carpenter pad in the Utica had a combined 65 Mcfe/day initial five-day sales rate while producing 1225 Btu gas.
  • AR also said it signed a supply pact with Cheniere Energy (NYSEMKT:LNG) for 200M Btu/day of liquified natural gas.
Comments (6)
  • ComputerBlue
    , contributor
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    Yay continue to massively grow production while NG plummets. Good job!
    18 Jul 2014, 03:35 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2723) | Send Message
     
    Their finding costs are probably somewhere around $1-$2 per MMbtu so they're happy to produce at these prices. And they hedge, and are producing a ton of liquids that sell for much higher prices. Its a very well run operation.
    18 Jul 2014, 04:37 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (873) | Send Message
     
    I just wish these E&Ps wouldn't focus on growth when there isn't nearly enough takeaway capacity in the region yet. I'd like to see growth in share price, not production. AR, COG and others are stuck in the mud, even with these growth numbers. It'll change though in 2015-2016. More time to buy. :)
    18 Jul 2014, 05:23 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2723) | Send Message
     
    $AR is in a better position than most, but yea that region suffers from a serious lack of take away capacity. Southern Ohio and WV should be better around the spring tho.
    18 Jul 2014, 08:41 PM Reply Like
  • ComputerBlue
    , contributor
    Comments (873) | Send Message
     
    I was doing some price reviews at different locations. Lately, Marcellus points took a double-digit hit. Gas for the weekend and Monday on Transco-Leidy fell 26 cents to $1.99, and deliveries to Tennessee Zone 4 Marcellus also fell 26 cents to $1.87. Gas on Millennium fell 14 cents to $2.33. Looking forward to the heat that is supposed to come next week.
    19 Jul 2014, 07:59 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2723) | Send Message
     
    Wow didnt realize that prices had dropped that far out there - i had heard they were $0.75 to $1 under Nymex, but that the liquids uplifts had widened out, helping to offset the difference slightly. Definitely something to watch. Thanks for the info!
    19 Jul 2014, 11:57 AM Reply Like
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