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Antero Resources (AR) Stock Gains 4.1% Since Q3 Earnings Miss
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Antero Resources Corporation (AR - Free Report) gained 4.1% since it reported third-quarter 2021 earnings on Oct 27. The lower-than-expected third-quarter results can be attributed to lower gas-equivalent production volumes. The positives were partially offset by higher commodity price realizations.
The upstream energy player reported quarterly adjusted earnings per share of 19 cents, missing the Zacks Consensus Estimate of 33 cents. However, the bottom line improved from the year-ago earnings of 5 cents.
Total quarterly revenues of $534 million missed the Zacks Consensus Estimate of $1,246 million. The top line also declined from the year-ago quarter’s $895 million.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production through the September-end quarter was recorded at 299 billion cubic feet equivalent (Bcfe), which declined 14% from 347 Bcfe a year ago. Natural gas production (accounting for almost 69% of the total output) fell 9% year over year to 205 Bcf.
Oil production for the third quarter was 932 thousand barrels (MBbls), down 32% from 1,367 MBbls in the prior-year period. Its production of 4,372 MBbls of C2 Ethane was 20% lower than 5,459 MBbls in the year-ago quarter. The company’s output of 10,258 MBbls of C3+ NGLs for the quarter was 23% lower than 13,400 MBbls a year ago.
Weighted natural-gas-equivalent price realization for the quarter was $5.15 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $2.30. Realized prices for natural gas rose 123% to $4.31 per Mcf from $1.93 a year ago.
The company’s oil price realization for the quarter was $60.87 per barrel (Bbl), up 143% from $25.07 a year ago. Its realized price for C3+ NGLs improved to $52.68 per Bbl from $22.01 in the prior-year quarter. Realized price for C2 Ethane increased 123% to $13.25 per Bbl from $5.94 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,218.5 million from $1,134.7 million in the year-ago period.
Average lease operating costs for the quarter were 8 cents per Mcfe, up 33% year over year. The same for gathering and compression rose 14% year over year to 73 cents per Mcfe.
Transportation expenses rose 24% from the prior-year quarter to 68 cents per Mcfe. Processing costs, however, contracted 3% year over year to 69 cents.
Capex & Financials
For drilling and completion operations, the company spent $168 million through third-quarter 2021. As of Sep 30, 2021, Antero had no cash and cash equivalents. It had long-term debt of $2.3 billion, with a debt to capitalization of 32%.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zacks Rank #1 (Strong Buy).
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Antero Resources (AR) Stock Gains 4.1% Since Q3 Earnings Miss
Antero Resources Corporation (AR - Free Report) gained 4.1% since it reported third-quarter 2021 earnings on Oct 27. The lower-than-expected third-quarter results can be attributed to lower gas-equivalent production volumes. The positives were partially offset by higher commodity price realizations.
The upstream energy player reported quarterly adjusted earnings per share of 19 cents, missing the Zacks Consensus Estimate of 33 cents. However, the bottom line improved from the year-ago earnings of 5 cents.
Total quarterly revenues of $534 million missed the Zacks Consensus Estimate of $1,246 million. The top line also declined from the year-ago quarter’s $895 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 September-end quarter was recorded at 299 billion cubic feet equivalent (Bcfe), which declined 14% from 347 Bcfe a year ago. Natural gas production (accounting for almost 69% of the total output) fell 9% year over year to 205 Bcf.
Oil production for the third quarter was 932 thousand barrels (MBbls), down 32% from 1,367 MBbls in the prior-year period. Its production of 4,372 MBbls of C2 Ethane was 20% lower than 5,459 MBbls in the year-ago quarter. The company’s output of 10,258 MBbls of C3+ NGLs for the quarter was 23% lower than 13,400 MBbls a year ago.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization for the quarter was $5.15 per thousand cubic feet equivalent (Mcfe), higher than the year-earlier figure of $2.30. Realized prices for natural gas rose 123% to $4.31 per Mcf from $1.93 a year ago.
The company’s oil price realization for the quarter was $60.87 per barrel (Bbl), up 143% from $25.07 a year ago. Its realized price for C3+ NGLs improved to $52.68 per Bbl from $22.01 in the prior-year quarter. Realized price for C2 Ethane increased 123% to $13.25 per Bbl from $5.94 a year ago.
Operating Expenses
Total operating expenses for the quarter under review increased to $1,218.5 million from $1,134.7 million in the year-ago period.
Average lease operating costs for the quarter were 8 cents per Mcfe, up 33% year over year. The same for gathering and compression rose 14% year over year to 73 cents per Mcfe.
Transportation expenses rose 24% from the prior-year quarter to 68 cents per Mcfe. Processing costs, however, contracted 3% year over year to 69 cents.
Capex & Financials
For drilling and completion operations, the company spent $168 million through third-quarter 2021. As of Sep 30, 2021, Antero had no cash and cash equivalents. It had long-term debt of $2.3 billion, with a debt to capitalization of 32%.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked players in the energy space are SM Energy Company (SM - Free Report) , Suncor Energy, Inc. and APA Corporation (APA - Free Report) . All companies currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy’s earnings for 2021 are expected to surge 508.5% year over year.
Suncor’s earnings for 2021 are expected to increase 38.4% year over year.
APA’s earnings for 2021 are expected to rise 15% year over year.