Antero Resources: The Return Of Natural Gas

Summary

  • The time to purchase natural gas stocks is when they are left for "dead".
  • The activity levels in the Haynesville swing basin indicate a decline in production, which supports Antero Resources' decision to sell hedges.
  • Antero Resources' sales strategy focuses on selling natural gas to the stronger world market, which can result in sales prices above the benchmark price.
  • Overall natural gas rig count is declining as well.
  • The stock has no recovery potential priced into the current price along with a lot of negative sentiment. The common should have an asymmetrical positive return.
  • This idea was discussed in more depth with members of my private investing community, Oil & Gas Value Research. Learn More »

Oil Or Gas Transportation With Blue Gas Or Pipe Line Valves On Soil And Sunrise Background

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The time to invest in a commodity like natural gas is when the market is leaving the whole sector for "dead". At that point, prices are usually so good that the downside risk is minimal while the upside potential is considerable.

Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA. He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

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Long Player believes oil and gas is a boom-bust, cyclical industry. It takes patience, and it certainly helps to have experience. He has been focusing on this industry for years. He is a retired CPA, and holds an MBA and MA.

He leads the investing group Oil & Gas Value Research. He looks for under-followed oil companies and out-of-favor midstream companies that offer compelling opportunities. The group includes an active chat room in which Oil & Gas investors discuss recent information and share ideas. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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