Antero Resources (AR) Update - June 29
Posted: Tue Jun 29, 2021 1:05 pm
AR is trading at $14.65 at the time of this post.
Since mid-June three analysts have updated their price targets for AR.
> Subash Chandra at Northland Securities (rated 4 stars by TipRanks) rated it a BUY on 06/16/21 with a price target of $21.00
> Devin McDermott at Morgan Stanley (rated 2.5 stars by TipRanks) rated it a HOLD on 06/18/21 with a price target of $17.00
> Aaron Bilkoski at TD Securities (rated 0 stars by TipRanks) rated it a BUY on 06/29/21 with a price target of $18.50
92% of AR's 2021 natural gas is hedged at $2.76 and 42% of their 2022 gas is hedged at $2.50
Based on my forecast, AR is now on pace to generate over $930 million of FCF from operations this year. They have also restructured a lot of their debt and now they have no near-term debt problems.
I have increased my current valuation by $1 to $25. This is my CURRENT VALUATION and if natural gas prices hold near current strip prices and AR uses FCF to pay off a lot more debt, this stock deserves to trade at a higher multiple. $30 is a reasonable 12-month price target.
Since mid-June three analysts have updated their price targets for AR.
> Subash Chandra at Northland Securities (rated 4 stars by TipRanks) rated it a BUY on 06/16/21 with a price target of $21.00
> Devin McDermott at Morgan Stanley (rated 2.5 stars by TipRanks) rated it a HOLD on 06/18/21 with a price target of $17.00
> Aaron Bilkoski at TD Securities (rated 0 stars by TipRanks) rated it a BUY on 06/29/21 with a price target of $18.50
92% of AR's 2021 natural gas is hedged at $2.76 and 42% of their 2022 gas is hedged at $2.50
Based on my forecast, AR is now on pace to generate over $930 million of FCF from operations this year. They have also restructured a lot of their debt and now they have no near-term debt problems.
I have increased my current valuation by $1 to $25. This is my CURRENT VALUATION and if natural gas prices hold near current strip prices and AR uses FCF to pay off a lot more debt, this stock deserves to trade at a higher multiple. $30 is a reasonable 12-month price target.