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Antero Resources (AR) Q4 Earnings Beat on Higher Production
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Antero Resources Corporation (AR - Free Report) reported fourth-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. However, the bottom line significantly declined from the year-ago quarter’s $1.04.
Total quarterly revenues of $1.19 billion surpassed the Zacks Consensus Estimate of $1.17 billion. The top line decreased from the year-ago quarter’s $2.1 billion.
Better-than-expected quarterly earnings can be primarily attributed to higher production volumes, driven by strong well performance and lower operating expenses. A substantial decline in commodity price realization has offset the positives.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production through the fourth quarter was 315 billion cubic feet equivalent (Bcfe), up 6% from the 297 Bcfe recorded a year ago. The reported figure is slightly below our estimate of 321 Bcfe.
Natural gas production (accounting for 67% of the total production) was 210 Bcf, up 7% from the 196 Bcf recorded a year ago and higher than our estimate of 205 Bcf.
Oil production in the quarter amounted to 1,154 thousand barrels (MBbls), up 46% from the 790 MBbls registered in the year-ago period.
AR reported production of 5,406 MBbls of C2 Ethane, down 6% from the 5,778 MBbls recorded a year ago. Our estimate for the same was pinned at 6,047 MBbls.
The company’s production of 10,918 MBbls of C3+ NGLs was 7% higher than the 10,170 MBbls reported in the year-ago period. The figure also surpassed our estimate of 10,853 MBbls.
Weighted natural-gas-equivalent price realization in the quarter was $3.52 per thousand cubic feet equivalent (Mcfe), lower than the year-ago quarter’s figure of $6.07. Our estimate for the same was pegged at $3.26 Mcfe.
Realized prices for natural gas declined 57% to $2.72 per Mcf from the $6.27 recorded a year ago. The figure also lagged our estimate of $2.85 per Mcf.
The company’s oil price realization in the quarter was $64.77 per barrel (Bbl), down 9% from $71.08 registered a year ago. The figure was also lower than our estimate of $66.31 per Bbl.
The realized price for C3+ NGLs declined to $37.72 per Bbl from $39.88 reported a year ago and also lagged our estimate of $39.35 per Bbl.
The realized price for C2 Ethane decreased 52% to $9.13 per Bbl from the $18.96 recorded a year ago. The figure also missed our estimate of $13.90 per Bbl.
Operating Expenses
Total operating expenses decreased to $1.03 billion from the $1.14 billion reported in the year-ago period. Our estimate for the same was pinned at $1.03 million.
However, average lease operating costs were 9 cents per Mcfe, down 10% from the 10 cents recorded in the year-ago period. The gathering and compression costs decreased 10% year over year to 69 cents per Mcfe.
Transportation expenses declined 6% from the prior-year quarter’s level to 62 cents per Mcfe, while processing costs increased 7% to 79 cents per Mcfe.
Capex & Financials
In the fourth quarter, Antero Resources spent $164 million on drilling and completion operations. As of Dec 31, 2023, it had no cash and cash equivalents. The company had a long-term debt of $1.54 billion as of the same date.
Guidance
For 2024, Antero Resources expects net daily natural gas-equivalent production of 3.3-3.4 Bcfe/d, including 192-204 MBbl/d of liquids. The company provided cash production expense guidance of $2.45-$2.55 per Mcfe. The company projects net marketing expenses of $0.04-$0.06 per Mcfe.
Zacks Rank & Stocks to Consider
Currently, Antero Resources carries a Zacks Rank #4 (Sell).
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
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Antero Resources (AR) Q4 Earnings Beat on Higher Production
Antero Resources Corporation (AR - Free Report) reported fourth-quarter 2023 adjusted earnings of 22 cents per share, which beat the Zacks Consensus Estimate of 18 cents. However, the bottom line significantly declined from the year-ago quarter’s $1.04.
Total quarterly revenues of $1.19 billion surpassed the Zacks Consensus Estimate of $1.17 billion. The top line decreased from the year-ago quarter’s $2.1 billion.
Better-than-expected quarterly earnings can be primarily attributed to higher production volumes, driven by strong well performance and lower operating expenses. A substantial decline in commodity price realization has offset the positives.
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 fourth quarter was 315 billion cubic feet equivalent (Bcfe), up 6% from the 297 Bcfe recorded a year ago. The reported figure is slightly below our estimate of 321 Bcfe.
Natural gas production (accounting for 67% of the total production) was 210 Bcf, up 7% from the 196 Bcf recorded a year ago and higher than our estimate of 205 Bcf.
Oil production in the quarter amounted to 1,154 thousand barrels (MBbls), up 46% from the 790 MBbls registered in the year-ago period.
AR reported production of 5,406 MBbls of C2 Ethane, down 6% from the 5,778 MBbls recorded a year ago. Our estimate for the same was pinned at 6,047 MBbls.
The company’s production of 10,918 MBbls of C3+ NGLs was 7% higher than the 10,170 MBbls reported in the year-ago period. The figure also surpassed our estimate of 10,853 MBbls.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization in the quarter was $3.52 per thousand cubic feet equivalent (Mcfe), lower than the year-ago quarter’s figure of $6.07. Our estimate for the same was pegged at $3.26 Mcfe.
Realized prices for natural gas declined 57% to $2.72 per Mcf from the $6.27 recorded a year ago. The figure also lagged our estimate of $2.85 per Mcf.
The company’s oil price realization in the quarter was $64.77 per barrel (Bbl), down 9% from $71.08 registered a year ago. The figure was also lower than our estimate of $66.31 per Bbl.
The realized price for C3+ NGLs declined to $37.72 per Bbl from $39.88 reported a year ago and also lagged our estimate of $39.35 per Bbl.
The realized price for C2 Ethane decreased 52% to $9.13 per Bbl from the $18.96 recorded a year ago. The figure also missed our estimate of $13.90 per Bbl.
Operating Expenses
Total operating expenses decreased to $1.03 billion from the $1.14 billion reported in the year-ago period. Our estimate for the same was pinned at $1.03 million.
However, average lease operating costs were 9 cents per Mcfe, down 10% from the 10 cents recorded in the year-ago period. The gathering and compression costs decreased 10% year over year to 69 cents per Mcfe.
Transportation expenses declined 6% from the prior-year quarter’s level to 62 cents per Mcfe, while processing costs increased 7% to 79 cents per Mcfe.
Capex & Financials
In the fourth quarter, Antero Resources spent $164 million on drilling and completion operations. As of Dec 31, 2023, it had no cash and cash equivalents. The company had a long-term debt of $1.54 billion as of the same date.
Guidance
For 2024, Antero Resources expects net daily natural gas-equivalent production of 3.3-3.4 Bcfe/d, including 192-204 MBbl/d of liquids. The company provided cash production expense guidance of $2.45-$2.55 per Mcfe. The company projects net marketing expenses of $0.04-$0.06 per Mcfe.
Zacks Rank & Stocks to Consider
Currently, Antero Resources carries a Zacks Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Equitrans Midstream (ETRN - Free Report) owns, operates, acquires and develops midstream assets, primarily in the Appalachian Basin. It manages natural gas transmission, storage and gathering systems, as well as high and low-pressure gathering lines.
The Zacks Consensus Estimate for ETRN’s 2024 EPS is pegged at 90 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. ETRN’s 2024 earnings are expected to rise 34.3% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.22. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. ET’s 2024 earnings are expected to rise 18% year over year.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.