Antero Resources (AR) Q2 Results - August 1
Posted: Thu Aug 01, 2019 11:06 am
Updating my forecast/valuation model now. AR's production volumes and realized prices including cash settlements on their hedges was above the commodity prices used in my Q2 forecast. New hedges for 2020 are a plus. More this afternoon. - Dan
Second Quarter 2019 Highlights Include:
Net daily gas equivalent production averaged 3,226 MMcfe/d (29% liquids by volume), a 28% increase over the prior year period
Includes liquids production of 156,441 Bbl/d, a 38% increase over the prior year period, contributing 39% of total product revenues before hedges
Realized C3+ NGL price averaged $28.57 per Bbl for the quarter
Drilling and completion capital spend was $303 million, the lowest quarterly spend since Antero's IPO in 201
Announced well cost reductions of 10% to 14% per lateral foot by 2020 compared to 2019 budgeted costs
Increased forward hedge position with 90% of projected 2020 natural gas production sold at $2.87/MMBtu and over 35% of projected 2021 natural gas production sold at $2.88/MMBtu
Debt to trailing twelve months Adjusted EBITDAX ratio was 2.3x at quarter end (Non-GAAP)
Reaffirmed $4.5 billion bank borrowing base with commitments of $2.5 billion and only $175 million drawn
Paul Rady, Chairman and CEO said, "Antero achieved strong production volumes and incurred its lowest quarterly capital expenditures to date as a public company. We remain highly focused on creating sustained value by prioritizing key initiatives dedicated to reducing costs, streamlining operations and strategically targeting favorably priced markets for our diverse product portfolio of natural gas and liquids. The first half of 2019 showcased these efforts, with technical and operational initiatives that resulted in our ability to reach our previously announced full year well cost reduction targets by midyear, significantly ahead of schedule. Meanwhile, further well cost reduction initiatives are underway, and we expect well costs to be 10% to 14% lower per foot by 2020, compared to our 2019 budgeted costs per foot. This will primarily be driven through water savings initiatives and continued operational efficiencies. These cost savings combined with our expanded hedge position provide us with greater certainty in our ability to continue to execute our development plan in a challenged commodity price environment."
Second Quarter 2019 Highlights Include:
Net daily gas equivalent production averaged 3,226 MMcfe/d (29% liquids by volume), a 28% increase over the prior year period
Includes liquids production of 156,441 Bbl/d, a 38% increase over the prior year period, contributing 39% of total product revenues before hedges
Realized C3+ NGL price averaged $28.57 per Bbl for the quarter
Drilling and completion capital spend was $303 million, the lowest quarterly spend since Antero's IPO in 201
Announced well cost reductions of 10% to 14% per lateral foot by 2020 compared to 2019 budgeted costs
Increased forward hedge position with 90% of projected 2020 natural gas production sold at $2.87/MMBtu and over 35% of projected 2021 natural gas production sold at $2.88/MMBtu
Debt to trailing twelve months Adjusted EBITDAX ratio was 2.3x at quarter end (Non-GAAP)
Reaffirmed $4.5 billion bank borrowing base with commitments of $2.5 billion and only $175 million drawn
Paul Rady, Chairman and CEO said, "Antero achieved strong production volumes and incurred its lowest quarterly capital expenditures to date as a public company. We remain highly focused on creating sustained value by prioritizing key initiatives dedicated to reducing costs, streamlining operations and strategically targeting favorably priced markets for our diverse product portfolio of natural gas and liquids. The first half of 2019 showcased these efforts, with technical and operational initiatives that resulted in our ability to reach our previously announced full year well cost reduction targets by midyear, significantly ahead of schedule. Meanwhile, further well cost reduction initiatives are underway, and we expect well costs to be 10% to 14% lower per foot by 2020, compared to our 2019 budgeted costs per foot. This will primarily be driven through water savings initiatives and continued operational efficiencies. These cost savings combined with our expanded hedge position provide us with greater certainty in our ability to continue to execute our development plan in a challenged commodity price environment."