Antero Resources Q1 production beat my forecast. Going over the numbers in the 10-Q for the quarter helped me adjust some of the assumptions being used in my forecast/model. I have more confidence in my forecast today than I did last week. I am lowering my valuation of AR by $2.00 to $52.00, which compares to First Call's price target of $31.58.
Natural gas prices are firming up and NGL prices should be a lot higher by year-end. If I'm right, then AR has a lot of upside for us.
In Dallas yesterday (at our luncheon) I was asked about Range Resources. My response was that at this time of year Wall Street is not focused on natural gas. In about six months they will be and by that time RRC, AR and GPOR are going to look very attractive to the Wall Street Gang.
Making money on stocks is easy if you have an accurate view of the future and you can pick companies that will do well in that future.
We will be sending out an updated profile on Antero Resources today and an one on Range Resources by Friday. They are both SUPER HIGH QUALITY natural gas companies with a lot of NGL production too.
Look at the RED BOX on the forecast model.
Antero Resources (AR)
Antero Resources (AR)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group