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Antero Resources

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Antero has positioned itself among the fast-growing natural gas producers in the United States. Its strategic acreage position in the low-risk/long reserve-life properties of Appalachian Basin is a major positive. It is encouraging that the company plans to achieve production growth through conservative capital expenditure. Antero also boasts a healthy balance sheet with a manageable debt-to-capital ratio of 35.3%, which is lower than most of its peers. This provides the company ample flexibility to pursue acquisitions or grow internally. However, the company’s expectation of higher per unit cash production expense through 2022 will hurt earnings. Moreover, over the past year, the stock has lost 1.4% against the 23% collective gain of the stocks belonging to the industry. There is also limited upside potential for the company as its valuation looks stretched.

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