Antero Resources (AR) Q1 Results - April 27
Posted: Wed Apr 27, 2022 5:10 pm
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).
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).
