Antero Resources (AR) Q1 Results - April 27

[dan_s]

DENVER, April 27, 2022 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources", "Antero", or the "Company") today announced its first quarter 2022 financial and operating results. The relevant consolidated financial statements are included in Antero Resources' Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

First Quarter 2022 Highlights Include:

Net production averaged 3.2 Bcfe/d, including 160 MBbl/d of liquids < Compares to my forecast of 3.105 Bcfe per day, including 155,000 bpd of NGLs and 7,500 bpd of crude oil.

Realized pre-hedge natural gas equivalent price of $6.04 per Mcfe, a $1.09 per Mcfe premium to NYMEX pricing < VERY GOOD!

Net loss was $156 million, Adjusted Net Income was $360 million (Non-GAAP) < Adjusted Net Income compares to my forecast of $217.1 million, primarily higher due to higher realized gas prices.

Adjusted EBITDAX was $707 million (Non-GAAP); net cash provided by operating activities was $566 million < My operating cash flow forecast was $485.7 million.

Free Cash Flow was $465 million before Changes in Working Capital (Non-GAAP) < AR now on a clear path to over $2 Billion of FCF from operations this year.

Repurchased $100 million of shares during the quarter at an average price of $27.11 per share

Total long-term debt and Net Debt at quarter end was $1.96 billion

Net Debt to trailing last twelve month Adjusted EBITDAX declined to 1.1x (Non-GAAP) < Quite an accomplishment from where this company was two years ago.

Paul Rady, Chairman, Chief Executive Officer and President of Antero Resources commented, "Antero's first quarter results highlight our substantial exposure to rising commodity prices. We realized the highest quarterly NGL price in company history and benefited from direct exposure to NYMEX natural gas prices. During the quarter we sold approximately 75% of our natural gas into NYMEX-priced natural gas hubs, including the LNG fairway along the Gulf Coast and the Cove Point LNG facility in the Mid-Atlantic region. As LNG export demand increases, we are uniquely positioned to benefit from increasing prices due to our 2.3 Bcf/d of firm transportation delivered into these LNG fairways. We are currently selling nearly 1 Bcf/d of natural gas directly to LNG facilities on a mix of long-term and short-term contracts. As this market grows and develops we intend to utilize our significant firm transportation portfolio to increase our exposure."

Michael Kennedy, Chief Financial Officer of Antero Resources said, "We initiated our return of capital program by repurchasing $100 million of AR shares during the last six weeks of the first quarter, which approximated 25% of our first quarter Free Cash Flow estimate. As previously communicated, we expect to use approximately 25% of Free Cash Flow for share repurchases until the borrowings on our credit facility are repaid. Our current estimate forecasts the credit facility to be repaid later in the second quarter and we then intend to increase our return of capital to greater than 50% of Free Cash Flow. Looking ahead, we expect in excess of $2.5 billion of Free Cash Flow in 2022 and approximately $10 billion of Free Cash Flow through 2026, based on current commodity prices. This Free Cash Flow outlook allows us to continue to reduce debt while also returning substantial capital to our shareholders."
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This puppy will be getting a lot of upgrades tomorrow. Hang tough, this party is just getting started for all of our gassers (AR, CRK, CTRA, EQT, RRC and SBOW).

[Fraser921]

Listening to conf call, worth a listen

Unlike EQT & CNX, AR boasting about declining hedge position with no new hedges. Also, they want more money for long term export contracts. Given that TTF is $ 50 m there is room to move. The EU dopes that didn't want to buy "fracked gas" at 3 last summer and boasted about their ESG credentials will now have to pay thru the nose

[Fraser921]

A portion of their hedge are settled on dailies and a portion is settled on settlement day.

An analyst commended them for lower hedges , asked if they would put on more, answer no

Mentioned that deleveraging will happen quicker.

Did 100 m buyback, said they would do more. Make a note to yourself, they buy in last 6 weeks in the quarter, so they will start q2 buybacks for q2 may 15th or so. Said they want to buy 1 billion in shares so they still have dry powder

AR traded as low as 32.22, it immediately bounced to high of day at 34.56 on the bullish conf call

I like these guys better than RRC, EQT, CNX, SWN..I'll reserve judgement vs CRK.
Better than the above are the diversified EP's that are earning every penny of this upside

I'm liking MTDR, PXD, OXY, CLR,MGY all unhedged except clr who hedged a portion of NG but letting oil go unhedged. More risk, but in this market, lets get real. The politicians have demonized energy and now we see what happens. It will take 10 years to fix the mess created by team Biden and climate alarmists. In this enviro. I dont want hedges. I want it all!!!!

IN NE paying an unheard of 5.75 for heating oil. If this is the price this winter, there will be another tea party. Demented politicians wont let ng travel to NE from PA and recently we bought our NG from Russia