Energy Prospectus

Fourth Quarter 2015 Highlights include:
•Average net daily gas equivalent production was 1,497 MMcfe/d, an 18% increase over the prior year quarter and a 1% decrease sequentially
•Average net daily liquids production (C3+ NGLs, ethane and oil) was 54,757 Bbl/d, an 80% increase over the prior year quarter and a 5% increase sequentially
•Realized natural gas price after settled commodity derivatives averaged $4.40 per Mcf, a $2.13 positive differential to Nymex
•Realized C3+ NGL price after settled commodity derivatives averaged $21.65 per barrel (52% of WTI)
•Realized natural gas equivalent price including NGLs, oil and settled derivatives averaged $4.28 per Mcfe
•Completion of the third-party Stonewall gathering pipeline in December 2015 resulted in Antero selling virtually all of its gas to favorably priced markets during the month and a negative differential to Nymex of only $0.14 per Mcf for the fourth quarter
•Increased hedge position to 3.5 Tcfe through 2022 at an average fixed price of $3.79 per Mcfe
•Antero drilled and completed its first Utica well in West Virginia, the Rymer 4HD, flowing for 20 days with an average restricted flow rate of 20 MMcf/d
•Antero drilled and cased a Marcellus well with a lateral length of 14,024 feet, the longest lateral in Company history

If you read our recent profile on AR, you know they have ALL of their production hedged at very good prices, therefore the share price movement up and down with daily commodity prices makes very little sense. BUY on the dips. - Dan

Stifel on January 14:

"We are increasing our 4Q15 CFPS estimates 8% following the 4Q15 composite realized price beat and in line production.
AR announced its first deep WV Utica well (southernmost in the play) is producing at a constrained rate of 20 MMcf/d and
that it completed the longest Marcellus well in company history (a 14,024 lateral'). We expect AR will continue increasing
its average lateral length during 2016 in an effort to increase capital efficiencies/well economics."

Antero is a "gasser". 79% of forecast production for 2016 is natural gas and ALL OF IT (i.e. 100%) is hedged at an average price of $3.92/mmbtu

Stifel rates AR a BUY with a price target of $27.00/share.

This article explains why I added AR to the Sweet 16

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