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Antero Resources (AR) Q2 Earnings and Revenues Miss Estimates
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Antero Resources Corporation (AR - Free Report) reported second-quarter 2024 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The bottom line, however, improved from the year-ago quarter’s adjusted loss of 28 cents.
Total quarterly revenues of $978.7 million increased from the year-ago quarter’s figure of $953.3 million. The top line, however, missed the Zacks Consensus Estimate of $980 million.
The weaker-than-expected quarterly results were primarily due to decreased natural gas and oil production in the quarter. Softer natural gas price also contributed to the same.
Antero Resources Corporation Price, Consensus and EPS Surprise
Total production in the second quarter was 311 billion cubic feet equivalent (Bcfe), marginally higher than 309 Bcfe recorded a year ago. Our estimate for the same was pinned at 303 Bcfe.
Natural gas production (accounting for 63% of the total production) was 196 Bcf, down 4% from 204 Bcf recorded a year ago. The figure was above our estimate of 192 Bcf.
Oil production in the quarter amounted to 952 thousand barrels (MBbls), down 2% from 971 MBbls registered in the year-ago period. Our estimate for the same was pegged at 1,083 MBbls.
Antero Resources reported production of 7,811 MBbls of C2 Ethane, up 22% from 6,414 MBbls recorded a year ago. Our estimate for the same was pinned at 7,189 MBbls.
The company’s production of 10,514 MBbls of C3+ NGLs was 3% higher than 10,175 MBbls reported in the year-ago period. The figure was also above our estimate of 10,181 MBbls.
Weighted natural-gas-equivalent price realization in the quarter was $2.98 per thousand cubic feet equivalent (Mcfe), higher than the year-ago quarter’s figure of $2.89. The reported figure was in line with our estimate.
Realized prices for natural gas declined 10% to $1.92 per Mcf from $2.14 recorded a year ago. Our estimate for the same was pinned at $2.30 per Mcf.
The company’s oil price realization in the quarter was $66.66 per barrel (Bbl), higher than $59.69 registered a year ago. The figure was below our estimate of $67.27 per Bbl.
The realized price for C3+ NGLs increased to $40.27 per Bbl from $34.16 reported a year ago. The figure was above our estimate of $36.01 per Bbl.
The realized price for C2 Ethane increased 8% to $8.42 per Bbl from $7.82 recorded a year ago. The figure was below our estimate of $9.64 per Bbl.
Operating Expenses
Total operating expenses decreased to $1,040.6 million from $1,042.2 million reported in the year-ago period. Our estimate for the same was pinned at $1,031.2 million.
However, average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents recorded in the year-ago period. The gathering and compression costs were 71 cents per Mcfe, 4% higher than the prior-year quarter’s number.
Transportation expenses declined 10% year over year to 55 cents per Mcfe, while processing costs increased 2% to 87 cents per Mcfe.
Capex & Financials
In the second quarter, Antero Resources spent $164 million on drilling and completion operations. As of Jun 30, 2024, it had no cash and cash equivalents. The company had a long-term debt of $1.59 billion as of the same date.
Guidance
For 2024, Antero Resources increased its net daily natural gas-equivalent production guidance to 3.375-3.425 Bcfe/d, including higher liquid volumes. The company also forecasted an increase in its free cash flow due to a rise in C3+ NGL realized price guidance.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
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Antero Resources (AR) Q2 Earnings and Revenues Miss Estimates
Antero Resources Corporation (AR - Free Report) reported second-quarter 2024 adjusted loss of 19 cents per share, wider than the Zacks Consensus Estimate of a loss of 16 cents. The bottom line, however, improved from the year-ago quarter’s adjusted loss of 28 cents.
Total quarterly revenues of $978.7 million increased from the year-ago quarter’s figure of $953.3 million. The top line, however, missed the Zacks Consensus Estimate of $980 million.
The weaker-than-expected quarterly results were primarily due to decreased natural gas and oil production in the quarter. Softer natural gas price also contributed to the same.
Antero Resources Corporation Price, Consensus and EPS Surprise
Antero Resources Corporation price-consensus-eps-surprise-chart | Antero Resources Corporation Quote
Overall Production
Total production in the second quarter was 311 billion cubic feet equivalent (Bcfe), marginally higher than 309 Bcfe recorded a year ago. Our estimate for the same was pinned at 303 Bcfe.
Natural gas production (accounting for 63% of the total production) was 196 Bcf, down 4% from 204 Bcf recorded a year ago. The figure was above our estimate of 192 Bcf.
Oil production in the quarter amounted to 952 thousand barrels (MBbls), down 2% from 971 MBbls registered in the year-ago period. Our estimate for the same was pegged at 1,083 MBbls.
Antero Resources reported production of 7,811 MBbls of C2 Ethane, up 22% from 6,414 MBbls recorded a year ago. Our estimate for the same was pinned at 7,189 MBbls.
The company’s production of 10,514 MBbls of C3+ NGLs was 3% higher than 10,175 MBbls reported in the year-ago period. The figure was also above our estimate of 10,181 MBbls.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization in the quarter was $2.98 per thousand cubic feet equivalent (Mcfe), higher than the year-ago quarter’s figure of $2.89. The reported figure was in line with our estimate.
Realized prices for natural gas declined 10% to $1.92 per Mcf from $2.14 recorded a year ago. Our estimate for the same was pinned at $2.30 per Mcf.
The company’s oil price realization in the quarter was $66.66 per barrel (Bbl), higher than $59.69 registered a year ago. The figure was below our estimate of $67.27 per Bbl.
The realized price for C3+ NGLs increased to $40.27 per Bbl from $34.16 reported a year ago. The figure was above our estimate of $36.01 per Bbl.
The realized price for C2 Ethane increased 8% to $8.42 per Bbl from $7.82 recorded a year ago. The figure was below our estimate of $9.64 per Bbl.
Operating Expenses
Total operating expenses decreased to $1,040.6 million from $1,042.2 million reported in the year-ago period. Our estimate for the same was pinned at $1,031.2 million.
However, average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents recorded in the year-ago period. The gathering and compression costs were 71 cents per Mcfe, 4% higher than the prior-year quarter’s number.
Transportation expenses declined 10% year over year to 55 cents per Mcfe, while processing costs increased 2% to 87 cents per Mcfe.
Capex & Financials
In the second quarter, Antero Resources spent $164 million on drilling and completion operations. As of Jun 30, 2024, it had no cash and cash equivalents. The company had a long-term debt of $1.59 billion as of the same date.
Guidance
For 2024, Antero Resources increased its net daily natural gas-equivalent production guidance to 3.375-3.425 Bcfe/d, including higher liquid volumes. The company also forecasted an increase in its free cash flow due to a rise in C3+ NGL realized price guidance.
Zacks Rank and Key Picks
Currently, AR carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energy is an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.