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Antero Resources (AR) Stock Up 8.4% Despite Q2 Earnings Miss
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Antero Resources Corporation’s (AR - Free Report) shares have jumped 8.4% since the second-quarter 2022 earnings announcement on Jul 27. The company’s balance sheet strength and a strong free cash flow outlook are expected to have driven the stock price.
Antero Resources reported second-quarter adjusted earnings of $1.69 per share, missing the Zacks Consensus Estimate of $1.92. However, the bottom line significantly improved from the year-ago quarter’s earnings of 12 cents.
Total quarterly revenues of $2,202 million beat the Zacks Consensus Estimate of $1,897 million. The top line increased from the year-ago quarter’s $487 million.
Lower-than-expected quarterly earnings can be attributed to lower natural gas-equivalent production volumes. The negatives were offset by higher realizations of commodity prices.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production through the June-end quarter was 294 billion cubic feet equivalent (Bcfe), which declined 3% from 303 Bcfe a year ago. Natural gas production (accounting for 69% of the total output) fell 2% year over year to 203 Bcf.
Oil production in the second quarter was 906 thousand barrels (MBbls), down 4% from 940 MBbls in the prior-year period. Its production of 4,025 MBbls of C2 Ethane was 8% lower than 4,356 MBbls in the year-ago quarter. The company’s output of 10,156 MBbls of C3+ NGLs for the quarter was 3% lower than 10,440 MBbls a year ago.
Weighted natural-gas-equivalent price realization for the quarter was $8.00 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $3.78. Realized prices for natural gas rose 155% to $7.67 per Mcf from $3.01 a year ago.
The company’s oil price realization for the quarter was $98.49 per barrel (Bbl), up 78% from $55.22 a year ago. Its realized price for C3+ NGLs improved to $60.28 per Bbl from $40.32 in the prior-year quarter. Realized price for C2 Ethane increased 125% to $22.42 per Bbl from $9.97 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,140.2 million from $1,130 million in the year-ago period.
Average lease operating costs for the quarter were 9 cents per Mcfe, up 29% year over year. The same for gathering and compression increased 3% year over year to 76 cents per Mcfe.
Transportation expenses rose 6% from the prior-year quarter to 73 cents per Mcfe. Processing costs increased 9% year over year to 75 cents.
Capex & Financials
In second-quarter 2022, Antero Resources spent $217 million on drilling and completion operations. As of Jun 30, 2022, Antero had no cash and cash equivalents. It had long-term debt of $1.6 billion, with a debt to capitalization of 20.8%.
Guidance
For 2022, Antero Resources reiterated its net daily natural gas-equivalent production guidance at 3.2-3.3 Bcfe/d. Also, net daily natural gas production is expected to be 2.2-2.25 Bcf/d.
The company expects to generate more than $2.5 billion in free cash flow in 2022.
Zacks Rank & Stocks to Consider
Antero Resources currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid second-quarter earnings numbers and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty Energy Inc. (LBRT - Free Report) announced second-quarter 2022 earnings per share of 55 cents, which handily beat the Zacks Consensus Estimate of 18 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing.
Liberty Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Value. LBRT is expected to see earnings growth of 266.7% in 2022.
Petrobras (PBR - Free Report) announced second-quarter earnings per American Depositary Share of $1.39, beating the Zacks Consensus Estimate of $1.14. The outperformance was driven by higher oil prices and strong downstream results.
Petrobras has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, and B for Momentum and Growth. PBR is expected to see earnings growth of 128.2% in 2022.
PBF Energy Inc. (PBF - Free Report) reported second-quarter earnings of $10.58 per share, comfortably beating the Zacks Consensus Estimate of earnings of $7.36. The strong quarterly results were driven by increased contributions from the Refining segment.
PBF Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. PBF is expected to see earnings growth of 819.6% in 2022.
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Antero Resources (AR) Stock Up 8.4% Despite Q2 Earnings Miss
Antero Resources Corporation’s (AR - Free Report) shares have jumped 8.4% since the second-quarter 2022 earnings announcement on Jul 27. The company’s balance sheet strength and a strong free cash flow outlook are expected to have driven the stock price.
Antero Resources reported second-quarter adjusted earnings of $1.69 per share, missing the Zacks Consensus Estimate of $1.92. However, the bottom line significantly improved from the year-ago quarter’s earnings of 12 cents.
Total quarterly revenues of $2,202 million beat the Zacks Consensus Estimate of $1,897 million. The top line increased from the year-ago quarter’s $487 million.
Lower-than-expected quarterly earnings can be attributed to lower natural gas-equivalent production volumes. The negatives were 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 June-end quarter was 294 billion cubic feet equivalent (Bcfe), which declined 3% from 303 Bcfe a year ago. Natural gas production (accounting for 69% of the total output) fell 2% year over year to 203 Bcf.
Oil production in the second quarter was 906 thousand barrels (MBbls), down 4% from 940 MBbls in the prior-year period. Its production of 4,025 MBbls of C2 Ethane was 8% lower than 4,356 MBbls in the year-ago quarter. The company’s output of 10,156 MBbls of C3+ NGLs for the quarter was 3% lower than 10,440 MBbls a year ago.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization for the quarter was $8.00 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $3.78. Realized prices for natural gas rose 155% to $7.67 per Mcf from $3.01 a year ago.
The company’s oil price realization for the quarter was $98.49 per barrel (Bbl), up 78% from $55.22 a year ago. Its realized price for C3+ NGLs improved to $60.28 per Bbl from $40.32 in the prior-year quarter. Realized price for C2 Ethane increased 125% to $22.42 per Bbl from $9.97 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,140.2 million from $1,130 million in the year-ago period.
Average lease operating costs for the quarter were 9 cents per Mcfe, up 29% year over year. The same for gathering and compression increased 3% year over year to 76 cents per Mcfe.
Transportation expenses rose 6% from the prior-year quarter to 73 cents per Mcfe. Processing costs increased 9% year over year to 75 cents.
Capex & Financials
In second-quarter 2022, Antero Resources spent $217 million on drilling and completion operations. As of Jun 30, 2022, Antero had no cash and cash equivalents. It had long-term debt of $1.6 billion, with a debt to capitalization of 20.8%.
Guidance
For 2022, Antero Resources reiterated its net daily natural gas-equivalent production guidance at 3.2-3.3 Bcfe/d. Also, net daily natural gas production is expected to be 2.2-2.25 Bcf/d.
The company expects to generate more than $2.5 billion in free cash flow in 2022.
Zacks Rank & Stocks to Consider
Antero Resources currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following stocks that reported solid second-quarter earnings numbers and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Liberty Energy Inc. (LBRT - Free Report) announced second-quarter 2022 earnings per share of 55 cents, which handily beat the Zacks Consensus Estimate of 18 cents. The outperformance reflects the impact of strong execution, higher activity and increased service pricing.
Liberty Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and B for Value. LBRT is expected to see earnings growth of 266.7% in 2022.
Petrobras (PBR - Free Report) announced second-quarter earnings per American Depositary Share of $1.39, beating the Zacks Consensus Estimate of $1.14. The outperformance was driven by higher oil prices and strong downstream results.
Petrobras has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, and B for Momentum and Growth. PBR is expected to see earnings growth of 128.2% in 2022.
PBF Energy Inc. (PBF - Free Report) reported second-quarter earnings of $10.58 per share, comfortably beating the Zacks Consensus Estimate of earnings of $7.36. The strong quarterly results were driven by increased contributions from the Refining segment.
PBF Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Value, Growth and Momentum. PBF is expected to see earnings growth of 819.6% in 2022.