Sweet 16 Gassers Update: AR, CRK, EQT and RRC

[dan_s]

Here are the Q1 actual revenues net of cash settlements on their hedges and all-in cash expenses (including G&A, interest expense and current income taxes) per Mcfe for the four large-cap gassers in the Sweet 16:

Net Revenues / Net cash expenses per mcfe produced during Q1:

$4.077 / $2.694 for Antero Resources (AR)

$3.068 / $1.134 for Comstock Resources (CRK) < CRK is the closest to a "Pure Gasser", so operating expenses are the lowest. Comstock has lots of extremely valuable "running room". Read our recent profile. They are just getting started on a new area in East Texas where the wells are coming online at incredible rates (over 30 million cubic feet per day).

$4.125 / $1.410 for EQT Corp. (EQT) < EQT has some very good hedges in place for 2023. EQT is the largest producer of natural gas in North America.

$3.997 / $2.001 for Range Resources (RRC) < Stock price is up more than 12% YTD.

All four will report lower Adjusted Net Income in Q2 (low point of the year), but they should all be profitable. AR is the only one that might report a small loss for the quarter.

They all continue to generate solid operating cash flow. They should all be free cash flow positive in 2H 2023. None of them have any near-term debt issues.