DENVER (AP) _ Antero Resources Corp. (AR) on Monday reported first-quarter net income of $268.4 million.
On a per-share basis, the Denver-based company said it had net income of 85 cents per share (based on GAAP).
Earnings, adjusted for non-recurring gains, came to 18 cents per share. < Compares to my forecast of $0.06/share.
The results beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.
The oil and natural gas producer posted revenue of $1.2 billion in the period, also surpassing Street forecasts.
Seven analysts surveyed by Zacks expected $786.1 million. < Compares to my forecast of $859.3 million
Antero Resources Q1 EPS beat my forecast
Antero Resources Q1 EPS beat my forecast
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Antero Resources Q1 EPS beat my forecast
First Quarter Highlights Include: Net daily gas equivalent production averaged a record 2,144 MMcfe/d (28% liquids), a 22% increase over the prior year quarter This includes a record 99,119 Bbl/d of liquids production, a 45% increase over the prior year quarter Liquids production contributed 32% of total product revenues, before hedging, up from 25% the prior year Realized C3+ NGL price of $29.52 per barrel, 57% of average Nymex WTI price before hedging Realized natural gas price of $3.35 per Mcf before hedging, a $0.03 per Mcf premium to Nymex Realized natural gas equivalent price of $3.80 per Mcfe including NGLs, oil and hedges...
Much higher NGL prices than I was expecting.
Antero's average natural gas price before hedging increased 61% from the prior year quarter to $3.35 per Mcf, a $0.03 per Mcf premium to the average Nymex natural gas price for the period. Virtually all of Antero's first quarter 2017 natural gas revenue was realized at currently favorable price indices, including Columbia Gas Transmission (TCO), Chicago, MichCon, Gulf Coast and Nymex. Antero's average realized natural gas price after hedging for the first quarter of 2017 was $3.89 per Mcf, a $0.57 premium to the Nymex average natural gas price for the period, and a 14% decrease compared to the prior year quarter. During the quarter, Antero realized a cash settled natural gas hedge gain of $75 million, or $0.54 per Mcf compared to $302 million, or $2.46 per Mcf in the prior year quarter.
Much higher NGL prices than I was expecting.
Antero's average natural gas price before hedging increased 61% from the prior year quarter to $3.35 per Mcf, a $0.03 per Mcf premium to the average Nymex natural gas price for the period. Virtually all of Antero's first quarter 2017 natural gas revenue was realized at currently favorable price indices, including Columbia Gas Transmission (TCO), Chicago, MichCon, Gulf Coast and Nymex. Antero's average realized natural gas price after hedging for the first quarter of 2017 was $3.89 per Mcf, a $0.57 premium to the Nymex average natural gas price for the period, and a 14% decrease compared to the prior year quarter. During the quarter, Antero realized a cash settled natural gas hedge gain of $75 million, or $0.54 per Mcf compared to $302 million, or $2.46 per Mcf in the prior year quarter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Antero Resources Q1 EPS beat my forecast
This is the best news:
Commenting on NGL price improvements and the outlook on liquids production, Glen Warren, President and CFO, said, "NGL price realizations for the quarter were strong, as we were able to achieve a pre-hedge C3+ NGL price of 57% of the average Nymex WTI oil price, which is above the high end of our recently increased 2017 NGL price guidance range of 50% to 55%. The uptick in liquids pricing compliments our market leading liquids-rich inventory in Appalachia and further highlights the momentum we have established through increased liquids production and forward-looking approach to capitalize on the NGL infrastructure buildout in the Northeast. Looking ahead, we expect this momentum to continue as Antero Midstream's recently announced joint venture with MarkWest combined with the expected startup of Mariner East 2 pipeline later this year provides tremendous visibility around getting our NGLs to market at favorable pricing."
Commenting on NGL price improvements and the outlook on liquids production, Glen Warren, President and CFO, said, "NGL price realizations for the quarter were strong, as we were able to achieve a pre-hedge C3+ NGL price of 57% of the average Nymex WTI oil price, which is above the high end of our recently increased 2017 NGL price guidance range of 50% to 55%. The uptick in liquids pricing compliments our market leading liquids-rich inventory in Appalachia and further highlights the momentum we have established through increased liquids production and forward-looking approach to capitalize on the NGL infrastructure buildout in the Northeast. Looking ahead, we expect this momentum to continue as Antero Midstream's recently announced joint venture with MarkWest combined with the expected startup of Mariner East 2 pipeline later this year provides tremendous visibility around getting our NGLs to market at favorable pricing."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Antero Resources Q1 EPS beat my forecast
Hedge Position locks in strong cash flow
Antero currently has hedged 3.3 Tcfe of future natural gas equivalent production using fixed price swaps covering the period from April 1, 2017 through December 31, 2023 at an average index price of $3.61 per MMBtu. At March 31, 2017, the Company's estimated fair value of commodity derivative instruments was $2.0 billion.
Balance Sheet and Liquidity
As of March 31, 2017, Antero's consolidated net debt was $4.8 billion, of which $720 million were borrowings outstanding under the Company's and Antero Midstream's revolving credit facilities. Total borrowing capacity under these two facilities is currently $5.5 billion. Reduced for $710 million in letters of credit outstanding, the company had $4.1 billion in available consolidated liquidity as of March 31, 2017.
Antero currently has hedged 3.3 Tcfe of future natural gas equivalent production using fixed price swaps covering the period from April 1, 2017 through December 31, 2023 at an average index price of $3.61 per MMBtu. At March 31, 2017, the Company's estimated fair value of commodity derivative instruments was $2.0 billion.
Balance Sheet and Liquidity
As of March 31, 2017, Antero's consolidated net debt was $4.8 billion, of which $720 million were borrowings outstanding under the Company's and Antero Midstream's revolving credit facilities. Total borrowing capacity under these two facilities is currently $5.5 billion. Reduced for $710 million in letters of credit outstanding, the company had $4.1 billion in available consolidated liquidity as of March 31, 2017.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group