We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Antero Resources (AR) Q4 Earnings Miss on Lower Production
Read MoreHide Full Article
Antero Resources Corporation (AR - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 46 cents, missing the Zacks Consensus Estimate of 64 cents. However, the bottom line turned around from the year-ago loss of 5 cents.
Total quarterly revenues of $2,394 million beat the Zacks Consensus Estimate of $1,469 million. The top line also increased from the year-ago quarter’s $1,309 million.
The lower-than-expected earnings can be attributed to lower gas-equivalent production volumes. The positives were partially offset by higher realizations of commodity prices.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production through the December-end quarter was recorded at 294 billion cubic feet equivalent (Bcfe), which declined 13% from 336 Bcfe a year ago. Natural gas production (accounting for 69.7% of the total output) fell 9% year over year to 205 Bcf.
Oil production for the fourth quarter was 689 thousand barrels (MBbls), down 38% from 1,104 MBbls in the prior-year period. Its production of 4,130 MBbls of C2 Ethane was 18% lower than 5,023 MBbls in the year-ago quarter. The company’s output of 9,872 MBbls of C3+ NGLs for the quarter was 19% lower than 12,174 MBbls a year ago.
Weighted natural-gas-equivalent price realization for the quarter was $6.48 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $2.96. Realized prices for natural gas rose 124% to $5.89 per Mcf from $2.63 a year ago.
The company’s oil price realization for the quarter was $69.53 per barrel (Bbl), up 126% from $30.83 a year ago. Its realized price for C3+ NGLs improved to $58.25 per Bbl from $27.64 in the prior-year quarter. Realized price for C2 Ethane increased 202% to $16.81 per Bbl from $5.56 a year ago.
Operating Expenses
Total operating expenses for the quarter under review declined 2% to $1,137.9 million from $1,163.9 million in the year-ago period.
Average lease operating costs for the quarter were 9 cents per Mcfe, up 13% year over year. The same for gathering and compression rose 11% year over year to 72 cents per Mcfe.
Transportation expenses rose 13% from the prior-year quarter to 76 cents per Mcfe. Processing costs increased 3% year over year to 65 cents.
Capex & Financials
For drilling and completion operations, the company spent $152 million through fourth-quarter 2021. As of Dec 31, 2021, Antero had no cash and cash equivalents. It had long-term debt of $2.1 billion, with a debt to capitalization of 27%.
Reserves
As of 2021-end, Antero Resources had an estimated proved reserve base of 17.7 trillion cubic feet of gas equivalent, reflecting a 1% increase from 2020 levels. About 58% of the proved reserve was natural gas, with 41% NGLs and 1% crude oil. Of the total estimated proved reserve base, 72% was classified as proved developed.
Guidance
For 2022, Antero Resources expects net daily natural gas-equivalent production of 3.2-3.3 Bcfe/d. Also, net daily natural gas production is expected to be 2.2-2.25 Bcf/d.
The company anticipates total exploration and production capital of $740-775 million for the year. It expects to generate $1.5-$1.7 billion of free cash flow in 2022.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. VLO has witnessed three upward revisions in the past 60 days. It currently has a Zacks Style Score of A for Growth and Momentum. At the quarter-end, Valero Energy had cash and cash equivalents of $4,122 million.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP recently reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy company in the world. XOM reported fourth-quarter 2021 earnings per share of $2.05 (excluding identified items), beating the Zacks Consensus Estimate of $1.96 per share.
ExxonMobil’s earnings for 2022 are expected to soar 27.3% year over year. At the fourth-quarter end, total cash and cash equivalents were $6.8 billion, and debt amounted to $47.7 billion. ExxonMobil has significantly lower debt exposure than other integrated majors.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Antero Resources (AR) Q4 Earnings Miss on Lower Production
Antero Resources Corporation (AR - Free Report) reported fourth-quarter 2021 adjusted earnings per share of 46 cents, missing the Zacks Consensus Estimate of 64 cents. However, the bottom line turned around from the year-ago loss of 5 cents.
Total quarterly revenues of $2,394 million beat the Zacks Consensus Estimate of $1,469 million. The top line also increased from the year-ago quarter’s $1,309 million.
The lower-than-expected earnings can be attributed to lower gas-equivalent production volumes. The positives were partially offset by higher realizations of commodity prices.
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 December-end quarter was recorded at 294 billion cubic feet equivalent (Bcfe), which declined 13% from 336 Bcfe a year ago. Natural gas production (accounting for 69.7% of the total output) fell 9% year over year to 205 Bcf.
Oil production for the fourth quarter was 689 thousand barrels (MBbls), down 38% from 1,104 MBbls in the prior-year period. Its production of 4,130 MBbls of C2 Ethane was 18% lower than 5,023 MBbls in the year-ago quarter. The company’s output of 9,872 MBbls of C3+ NGLs for the quarter was 19% lower than 12,174 MBbls a year ago.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization for the quarter was $6.48 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $2.96. Realized prices for natural gas rose 124% to $5.89 per Mcf from $2.63 a year ago.
The company’s oil price realization for the quarter was $69.53 per barrel (Bbl), up 126% from $30.83 a year ago. Its realized price for C3+ NGLs improved to $58.25 per Bbl from $27.64 in the prior-year quarter. Realized price for C2 Ethane increased 202% to $16.81 per Bbl from $5.56 a year ago.
Operating Expenses
Total operating expenses for the quarter under review declined 2% to $1,137.9 million from $1,163.9 million in the year-ago period.
Average lease operating costs for the quarter were 9 cents per Mcfe, up 13% year over year. The same for gathering and compression rose 11% year over year to 72 cents per Mcfe.
Transportation expenses rose 13% from the prior-year quarter to 76 cents per Mcfe. Processing costs increased 3% year over year to 65 cents.
Capex & Financials
For drilling and completion operations, the company spent $152 million through fourth-quarter 2021. As of Dec 31, 2021, Antero had no cash and cash equivalents. It had long-term debt of $2.1 billion, with a debt to capitalization of 27%.
Reserves
As of 2021-end, Antero Resources had an estimated proved reserve base of 17.7 trillion cubic feet of gas equivalent, reflecting a 1% increase from 2020 levels. About 58% of the proved reserve was natural gas, with 41% NGLs and 1% crude oil. Of the total estimated proved reserve base, 72% was classified as proved developed.
Guidance
For 2022, Antero Resources expects net daily natural gas-equivalent production of 3.2-3.3 Bcfe/d. Also, net daily natural gas production is expected to be 2.2-2.25 Bcf/d.
The company anticipates total exploration and production capital of $740-775 million for the year. It expects to generate $1.5-$1.7 billion of free cash flow in 2022.
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. VLO has witnessed three upward revisions in the past 60 days. It currently has a Zacks Style Score of A for Growth and Momentum. At the quarter-end, Valero Energy had cash and cash equivalents of $4,122 million.
ConocoPhillips (COP - Free Report) , based in Houston, TX, is primarily involved in the exploration and production of oil and natural gas. COP recently reported fourth-quarter 2021 adjusted earnings per share of $2.27, comfortably beating the Zacks Consensus Estimate of $2.20.
ConocoPhillips’ earnings for 2022 are expected to soar 62.1% year over year. COP currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. As of Dec 31, 2021, ConocoPhillips had $5,028 million in total cash and cash equivalents.
Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy company in the world. XOM reported fourth-quarter 2021 earnings per share of $2.05 (excluding identified items), beating the Zacks Consensus Estimate of $1.96 per share.
ExxonMobil’s earnings for 2022 are expected to soar 27.3% year over year. At the fourth-quarter end, total cash and cash equivalents were $6.8 billion, and debt amounted to $47.7 billion. ExxonMobil has significantly lower debt exposure than other integrated majors.