Antero Resources: The Thesis Is Playing Out
Richard Zeits • 14 Comments
Richard Zeits • 14 Comments
Tue, Aug. 2, 4:39 PM
Mon, Aug. 1, 5:35 PM
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Tue, Jul. 26, 8:43 AM
- Thinly traded micro cap Tokai Pharmaceuticals (NASDAQ:TKAI) craters 70% premarket on higher-than-normal volume in response to its announcement that it will stop its Phase 3 clinical trial, ARMOR3-SV, assessing lead product candidate galeterone compared to enzalutamide (XTANDI) in treatment-naive men with metastatic castration-resistant prostate cancer (mCRPC) whose tumors express the androgen receptor splice variant AR-V7. The company made its decision based on the recommendation from the independent Data Monitoring Committee that the trial was unlikely to meet its primary efficacy endpoint.
- Tokai intends to evaluate its ongoing ARMOR2 expansion in mCRPC patients with acquired resistance to enzalutamide and its planned study in patients who rapidly progress on either enzalutamide or abiraterone acetate (ZYTIGA).
- Galeterone is an orally available small molecule that disrupts the androgen receptor (NYSE:AR) signaling pathway by degrading AR, blocking the binding of testosterone or dihydrotestosterone with AR and inhibiting CYP17, an enzyme that plays a key role in the synthesis of testosterone. Prostate cancer is stoked by androgens acting through the androgen receptor.
- Related tickers: (NASDAQ:MDVN)(OTCPK:ALPMF)(OTCPK:ALPMY)(NYSE:JNJ)
Mon, Jul. 18, 3:42 PM
- Antero Resources (AR +1.6%) is upgraded to Hold from Underperform with a $27 price target, raised from $24, at Jefferies, citing AR's recent $450M purchase of Marcellus Shale acreage in West Virginia.
- Jefferies says AR's Firm Transportation portfolio could cause concern as it calls for future reinvestment, but the firm says it has become more comfortable with the expense because it is likely to add resource inventory.
- The firm also cites valuation, as AR has underperformed gas-leveraged peers by ~41% YTD.
Thu, Jun. 9, 4:48 PM
- Antero Resources (NYSE:AR) -2.5% AH after agreeing to acquire 55K net acres and 14M cfe/day of net production in West Virginia's Marcellus Shale from Southwestern Energy (NYSE:SWN) for $450M.
- AR says substantially all the acreage will be dedicated to Antero Midstream Partners (NYSE:AM) for gas gathering, compression, processing and water services.
- To fund the deal, AR announces a public offering of 26.75M common shares, with an underwriters option to purchase up to an additional ~4M shares.
- SWN says it plans to use the cash from the deal to reduce the principal balance of its $750M term loan due in November 2018.
Wed, Apr. 27, 4:22 PM
Tue, Apr. 26, 5:35 PM
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Fri, Apr. 15, 12:29 PM
- J.P. Morgan analysts revises ratings on several large-cap E&P companies following the six-week 71% rally of E&P equities in its coverage
- The firm upgrades Anadarko Petroleum (APC +0.3%) to Overweight from Neutral based on an attractive relative valuation, a resilient production profile and improved balance sheet, and upgrades Antero Resources (AR +0.9%) to Neutral from Underweight on strong PDP reserve growth and expectations of continued strong operating momentum through 2017.
- Meanwhile, JPM downgrades Southwestern Energy (SWN -0.4%) to Underweight from Neutral and EP Energy (EPE +0.4%) to Neutral from Overweight on valuation metrics.
- The firm also thinks further successful delineation of the emerging STACK play in Oklahoma could support a relative re-rating in Continental Resources (CLR -0.1%) and Devon Energy (DVN -0.3%) shares, as drilling returns in the oil window are among the highest in U.S.
- JPM's top natural gas pick remains EQT Corp. (EQT -0.4%) given differentiated growth, a strong balance sheet, noteworthy catalysts and attractive valuation.
- Now read Why Anadarko Petroleum is the best bet in a challenging oil market
Thu, Mar. 24, 10:07 AM
- Antero Midstream Partners (AM -12.8%) plunges at the open after Antero Resources (AR -1.8%) prices the sale of 8M of its units held in AM at $22.40/unit, for $179M in gross proceeds.
- After the sale - and assuming no exercise of the underwriter's option to purchase 1.2M additional common units - AR will own ~62% of AM's outstanding common and subordinated units.
- AM will receive no proceeds from the offering.
Wed, Mar. 23, 4:57 PM
- Antero Resources (NYSE:AR) announces a public offering of 8M common units representing interests in Antero Midstream Partners (NYSE:AM), with an underwriters option to purchase up to an additional 1.2M units.
- AR says it plans to use the proceeds to repay borrowings under its credit facility and to fund part of its 2016 development program; AM will receive no proceeds from the offering.
Wed, Feb. 24, 4:27 PM
- Antero Resources (NYSE:AR): Q4 EPS of $0.20 beats by $0.05.
- Revenue of $630M (+7.7% Y/Y) beats by $26.5M.
Tue, Feb. 23, 5:35 PM
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Fri, Feb. 19, 1:11 PM
- Antero Resources (AR -3.8%) extends its two-day loss to 10% since announcing a 23% Y/Y reduction to its 2016 capital budget to $1.4B from its prior-year spending of $1.8B.
- AR plans to operate an average of 7 drilling rigs between the Marcellus and Utica Shale plays, 50% fewer than its average 14 drilling rigs operated in 2015; in shifting activity toward the Marcellus from the Utica, AR says ~75% of its drilling and completion budget is allocated toward the Marcellus.
- AR forecasts FY 2016 production to rise 15% Y/Y to 1.715B cf/eday of gas, with net liquids increasing 24% to 60K bbl/day.
Fri, Feb. 12, 2:37 PM
- Whiting Petroleum (WLL -8.9%) may have received the toughest treatment from Moody's, but the ratings agency downgrades a total of eight of companies as part of a sweeping re-examination of oil and gas producers.
- The ratings affected companies rated Ba, or the first tier of debt Moody’s considers risky enough to be a speculative investment.
- While Moody's cut WLL's debt rating by five notches, SM Energy (SM -1.2%) and WPX Energy (WPX +3.5%) both fell four notches to B2 from Ba1, and cites the likelihood of a "dramatic increase in financial leverage in 2017” with SM's cut.
- QEP Resources (QEP -0.5%) and Energen (EGN -11.6%) fell three notches to B1 from Ba1.
- Unit Corp. (UNT +2%) fell two notches to B2 from Ba3, which Range Resources (RRC +0.7%) and Newfield Exploration (NFX +2.7%) both slipped to Ba3 from Ba1.
- Ratings for Antero Resources (AR +2.7%) and Concho Resources (CXO +2.2%) were confirmed at Ba2 and Ba1, respectively.
Tue, Feb. 9, 3:18 PM
- Antero Midstream Partners (AM +0.9%) earns a Buy rating from Janney analysts, who believe the pullback in the units opens an attractive entry point for long-term investors.
- "The uncertainty surrounding drilling schedules and production volumes appears to be at a peak frenzy,” Janney says, adding that investors who buy sound assets at moments of uncertainty are usually well rewarded.
- The firm anticipates 26% annual distribution growth, an estimate it says is underpinned by attractive drilling economics at its sponsor, Antero Resources (AR -5.3%).
Thu, Jan. 14, 6:47 PM
- Natural gas liquids could rebound in 2016 after a tough 2015, boosting stocks such as Range Resources (NYSE:RRC), Cimarex Energy (NYSE:XEC), Memorial Resource Development (NASDAQ:MRD), Pioneer Natural Resources (NYSE:PXD), Antero Resources (NYSE:AR) and Newfield Exploration (NYSE:NFX), Citigroup analysts say.
- U.S. propane inventories and exports both rose to hit record highs at the end of 2015, but Citi believes a continued increase in exports through 2016, along with slowing production, will serve as a release valve to help clear an oversupplied domestic propane market.
- Although the price of both propane and ethane remain low, Citi sees visibility on an NGL price recovery in 2016, driven by a rebound in propane and butane prices, but not necessarily ethane, and reinforced by the firm’s forecast for a more balanced global oil market in H2 2016.