Antero (AR) Gains 3.7% Since Q1 Earnings Beat Estimates

·4 min read

Antero Resources Corporation AR has gained 3.7% since it reported strong first-quarter 2021 earnings on Apr 28.

The company reported quarterly adjusted earnings per share of 62 cents, beating the Zacks Consensus Estimate of 46 cents. The company’s year-ago loss was 13 cents per share.

Total revenues of $1,204 million missed the Zacks Consensus Estimate of $1,219 million. Moreover, the top line declined substantially from the year-ago quarter’s $1,317 million.

The strong earnings were caused by higher natural gas equivalent price realization. This was offset partially by lower production.

Antero Resources Corporation Price, Consensus and EPS Surprise

Antero Resources Corporation Price, Consensus and EPS Surprise
Antero Resources Corporation Price, Consensus and EPS Surprise

Antero Resources Corporation price-consensus-eps-surprise-chart | Antero Resources Corporation Quote

Overall Production

Total production through the March quarter was recorded at 299 billion cubic feet equivalent (Bcfe), which declined 2% from 306 Bcfe a year ago. Natural gas production (accounting for 69.2% of total output) was almost flat at 208 Bcf as compared to the first quarter of 2020.

Production of oil for the first quarter was 960 thousand barrels (MBbls), up 2% from 938 MBbls in the prior-year period. Its production of 4,405 MBbls of C2 Ethane was 4% lower than 4,604 MBbls in the year-ago quarter. The company’s output of 9,926 MBbls of C3+ NGLs for the quarter was 8% lower than 10,833 MBbls a year ago.

Realized Prices (Excluding Derivatives Settlements)

Weighted natural gas equivalent price realization for the quarter was $4.03 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $2.30. Realized prices for natural gas rose 76% to $3.48 per Mcf from $1.98 a year ago.

The company’s oil price realization for the quarter was $46.55 per Bbl, up 22% from $38.02 a year ago. Its realized price for C3+ NGLs improved to $40.72 per Bbl from $21.31 in the prior-year quarter. Realized price for C2 Ethane also increased 41% to $8.20 per Bbl from $5.82 a year ago.

Operating Expenses

Total operating expenses for the quarter under review increased to $1,109.7 million from $1,054.7 million in the year-ago period.

Average lease operating costs for the quarter were 8 cents per Mcfe, flat year over year. The same for gathering and compression rose 17% year over year to 74 cents per Mcfe.

Moreover, transportation expenses rose 10% from the prior-year quarter to 67 cents per Mcfe. However, processing costs contracted 10% year over year to 62 cents per Mcfe.

Capex & Financials

For drilling and completion operations, the company spent $141 million through first-quarter 2021, reflecting a 54% decline from the year-ago period.

As of Mar 31, 2021, Antero had no cash and cash equivalents. It had an available liquidity of $1.8 billion and a long-term debt of $2.6 billion. It has a debt to capitalization of 29.2%.

Zacks Rank & Stocks to Consider

Antero currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Matador Resources Company MTDR. All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

Matador is likely to see earnings growth of 300% in 2021.

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