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Antero Resources (AR) Slips 4% as Q2 Earnings Miss Estimates
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Antero Resources Corporation (AR - Free Report) declined 4.1% since it reported lower-than-expected results for second-quarter 2021. The underperformance was owing to lower gas equivalent production volumes, partially offset by higher commodity prices.
The upstream energy player reported quarterly adjusted earnings per share of 12 cents, missing the Zacks Consensus Estimate of 20 cents. The bottom line, however, turned around from the year-ago loss of 40 cents per share.
Total revenues of $489 million missed the Zacks Consensus Estimate of $1,200 million but improved from the year-ago quarter’s $485 million.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production through the June quarter was recorded at 303 billion cubic feet equivalent (Bcfe), which declined 5% from 320 Bcfe a year ago. Natural gas production (accounting for almost 69% of total output) fell 3% year over year to 208 Bcf.
Production of oil for the second quarter was 940 thousand barrels (MBbls), down 6% from 1,004 MBbls in the prior-year period. Its production of 4,356 MBbls of C2 Ethane was 6% lower than 4,622 MBbls in the year-ago quarter. The company’s output of 10,440 MBbls of C3+ NGLs for the quarter was 13% lower than 11,935 MBbls a year ago.
Weighted natural gas equivalent price realization for the quarter was $3.78 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $1.83. Realized prices for natural gas rose 76% to $3.01 per Mcf from $1.71 a year ago.
The company’s oil price realization for the quarter was $55.22 per Bbl, up 566% from $8.29 a year ago. Its realized price for C3+ NGLs improved to $40.32 per Bbl from $15.55 in the prior-year quarter. Realized price for C2 Ethane also increased 73% to $9.97 per Bbl from $5.76 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,132.3 million from $1,091.8 million in the year-ago period.
Average lease operating costs for the quarter were 7 cents per Mcfe, down 13% year over year. The same for gathering and compression, however, rose 17% year over year to 74 cents per Mcfe.
Transportation expenses rose 19% from the prior-year quarter to 69 cents per Mcfe. Processing costs contracted 9% year over year to 69 cents per Mcfe.
Capex & Financials
For drilling and completion operations, the company spent $167 million through second-quarter 2021. As of Jun 30, 2021, Antero had $4.5 million in cash and cash equivalents. It had an available liquidity of $1.9 billion and a long-term debt of $2.4 billion. It has a debt to capitalization of 29.7%.
Zacks Rank & Other Stocks to Consider
The company currently has a Zacks Rank #2 (Buy). Other prospective players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . 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.
PDC Energy is likely to see earnings growth of 111.8% in 2021.
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Antero Resources (AR) Slips 4% as Q2 Earnings Miss Estimates
Antero Resources Corporation (AR - Free Report) declined 4.1% since it reported lower-than-expected results for second-quarter 2021. The underperformance was owing to lower gas equivalent production volumes, partially offset by higher commodity prices.
The upstream energy player reported quarterly adjusted earnings per share of 12 cents, missing the Zacks Consensus Estimate of 20 cents. The bottom line, however, turned around from the year-ago loss of 40 cents per share.
Total revenues of $489 million missed the Zacks Consensus Estimate of $1,200 million but improved from the year-ago quarter’s $485 million.
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 June quarter was recorded at 303 billion cubic feet equivalent (Bcfe), which declined 5% from 320 Bcfe a year ago. Natural gas production (accounting for almost 69% of total output) fell 3% year over year to 208 Bcf.
Production of oil for the second quarter was 940 thousand barrels (MBbls), down 6% from 1,004 MBbls in the prior-year period. Its production of 4,356 MBbls of C2 Ethane was 6% lower than 4,622 MBbls in the year-ago quarter. The company’s output of 10,440 MBbls of C3+ NGLs for the quarter was 13% lower than 11,935 MBbls a year ago.
Realized Prices (Excluding Derivatives Settlements)
Weighted natural gas equivalent price realization for the quarter was $3.78 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $1.83. Realized prices for natural gas rose 76% to $3.01 per Mcf from $1.71 a year ago.
The company’s oil price realization for the quarter was $55.22 per Bbl, up 566% from $8.29 a year ago. Its realized price for C3+ NGLs improved to $40.32 per Bbl from $15.55 in the prior-year quarter. Realized price for C2 Ethane also increased 73% to $9.97 per Bbl from $5.76 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,132.3 million from $1,091.8 million in the year-ago period.
Average lease operating costs for the quarter were 7 cents per Mcfe, down 13% year over year. The same for gathering and compression, however, rose 17% year over year to 74 cents per Mcfe.
Transportation expenses rose 19% from the prior-year quarter to 69 cents per Mcfe. Processing costs contracted 9% year over year to 69 cents per Mcfe.
Capex & Financials
For drilling and completion operations, the company spent $167 million through second-quarter 2021. As of Jun 30, 2021, Antero had $4.5 million in cash and cash equivalents. It had an available liquidity of $1.9 billion and a long-term debt of $2.4 billion. It has a debt to capitalization of 29.7%.
Zacks Rank & Other Stocks to Consider
The company currently has a Zacks Rank #2 (Buy). Other prospective players in the energy space include Whiting Petroleum Corporation , Continental Resources, Inc. and PDC Energy, Inc. . 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.
PDC Energy is likely to see earnings growth of 111.8% in 2021.