Antero Resources: What Happened To Production Growth?
Richard Zeits • 17 Comments
Richard Zeits • 17 Comments
Antero Resources: Rich Valuation Represents A Risk
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
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
- ACGL, AEL, AF, ALGT, AMKR, AMP, ANIK, AR, ASGN, AVB, AVG, BCR, BGC, BKCC, BLKB, CACI, CAKE, CAVM, CBL, CDE, CGI, CLI, CMO, CMPR, CNMD, CNO, CRY, CSGP, CVTI, DGI, DLB, DMRC, DRE, DTLK, DWRE, DXCM, ECHO, EFX, ELY, EQY, ESRT, ESV, EXTR, FB, FIX, FNF, FORM, FORR, FR, FSLR, GG, HOLX, HTCH, HY, IBKC, INFN, IPHS, KEX, KIM, KRA, KRC, KS, LLNW, LOCK, LOGI, LQ, MANT, MAR, MC, MEOH, MMLP, MN, MSTR, MTGE, NE, NEU, NGD, NTGR, NVDQ, OIS, ORLY, OTEX, PEB, PPC, PRXL, PYPL, QDEL, QEP, QGEN, RCII, RGLD, RNG, ROIC, SCI, SFLY, SGI, SIMO, SNDK, SPRT, SSS, STR, TAL, TER, TILE, TS, TTEK, TTMI, TXN, TYL, UHS, UNM, VAR, VRTX, WCN, WIRE, WLL, WRE, WSR, XL, XLNX
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
Tue, Feb. 23, 5:35 PM
- AAOI, ALDW, ALJ, AMSG, ANIK, AR, AWK, AWR, AXTI, BLDP, BWXT, CEMP, CHDN, CLGX, CLI, CLR, CRM, CSGP, CW, CWT, CXO, DAVE, DMRC, DOOR, DPM, DTLK, DYN, ECPG, EPR, EQY, ESV, ETE, ETP, FARO, FLTX, FOE, FRGI, FUEL, GDOT, GMED, GXP, HPQ, HTH, IL, IMAX, INN, KEYW, LB, LGCY, LQ, MMLP, MTDR, NFX, NLY, NSPH, NTES, OAS, PE, PHH, QEP, RATE, RBCN, RGR, RICE, RIG, RIGP, RLJ, RLYP, RSPP, SBY, SN, SPTN, SRC, SUN, SXL, TAL, TCAP, TILE, TNDM, TS, TSLX, TUMI, TXTR, VIPS, WES, WGP, WLL, WPX, WR, WSR, XPO, ZPIN
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.
Tue, Jan. 5, 2:47 PM
- An eventual upturn in crude oil prices should turn the tide for the E&P sector In 2016, Citi analyst Robert Morris says as he upgrades Anadarko Petroleum (APC -1%), Canadian Natural Resources (CNQ +1%), EOG Resources (EOG +0.8%) and Cimarex Energy (XEC +1.4%) to Buy from Neutral and ups Oasis Petroleum (OAS -3.3%) to Neutral from Sell.
- For the first time in more than a decade, the per share debt-adjusted growth metrics within the E&P sector showed no correlation to the share price performance in 2015, according to Morris; without a further collapse in commodity prices, he sees debt-adjusted growth metrics, along with key debt metrics and the ability to increase production by spending within cash flow, driving relative E&P share performance.
- Morris maintains Buy ratings on Antero Resources (AR -2.4%), Apache (APA -2.3%), Concho Resources (CXO +1%), Memorial Resource Development (MRD -2%), Range Resources (RRC -0.4%) and Whiting Petroleum (WLL -7.1%), but downgrades Hess (HES -0.5%) to Neutral from Buy.
Dec. 16, 2015, 2:31 PM
- Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
- Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
- Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
- Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
- From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
Dec. 9, 2015, 10:47 AM
- EQT Corp. (EQT +1.4%) and Gulfport Energy (GPOR +3.9%) are J.P. Morgan's top picks among E&P companies focused on the Marcellus and Utica shales, which the firm says are structurally advantaged, given the low-end of the U.S. natural gas cost curve and vast inventories of ready-to-drill locations.
- The firm says EQT's cash cost structure of $1.11/Mcfe and total cost structure of $2.35/Mcfe are well below the average of Marcellus/Utica peers, a key competitive advantage within a natural gas environment that could remain "challenged for many years."
- GPOR's positioning within the Utica Shale includes 160K net acres in the core of the dry gas window, which JPM provides the company with a "remarkable growth opportunity" over the next 10-plus years.
- JPM initiates Cabot Oil & Gas (COG +2.5%), Eclipse Resources (ECR +7.3%), Range Resources (RRC +4%), Rice Energy (RICE +6.3%) and Southwestern Energy (SWN +3.4%) with Neutral ratings, and starts Antero Resources (AR +2.6%) at Underweight.
Oct. 28, 2015, 4:39 PM
- Antero Resources (NYSE:AR): Q3 EPS of $0.05 beats by $0.01.
- Revenue of $570.2M (+11.6% Y/Y) beats by $12.27M.
- Shares -2.3%.
Antero Resources Corp. is an independent oil and natural gas company, which engages in the exploration, development and acquisition of unconventional oil and liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. It focuses on unconventional... More
Sector: Basic Materials
Industry: Oil & Gas Drilling & Exploration
Country: United States
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