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Antero Resources (AR) Beats on Q4 Earnings, Reserves Grow
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Antero Resources Corporation (AR - Free Report) recently reported adjusted fourth-quarter 2018 earnings per share of 46 cents, beating the Zacks Consensus Estimate of 38 cents and improving from the year-ago quarter’s 23 cents on an increase in natural gas and oil production. The positives were, however, partially offset by a surge in lease operating expenses. Following the outperformance, the stock gained roughly 3% in after-hour trading.
The upstream energy player’s total operating revenues in the fourth quarter amounted to $1,237.4 million, missing the Zacks Consensus Estimate of $1,286 million.
However, the top line improved from the year-ago quarter’s $919.8 million on an increase in oil and natural gas realized prices.
Production Rises
Total production through fourth-quarter 2018 was recorded at 296 billion cubic feet equivalent (Bcfe) — comprising almost 70% natural gas — which is 37% higher than 216 Bcfe a year ago. Natural gas production increased to 206 billion cubic feet (Bcf) from 157 Bcf in the December quarter of 2017.
Production of oil in fourth-quarter 2018 was reported at 1,125 thousand barrel (MBbl), up 97% from 571 MBbl in the prior-year quarter. Its production of 4,323 MBbl of C2 Ethane was 50% higher than 2,891 MBbl in the year-ago quarter. The company’s output of 9,463 MBbl of C3+ NGLs in the December quarter of 2018 was 47% higher than 6,422 MBbl in the year-earlier quarter.
Natural gas-equivalent price realization in the quarter was $4.05 per thousand cubic feet equivalent (Mcfe), up 17% from $3.46 in the year-earlier quarter. The realized prices for natural gas increased 37% to $3.83 per thousand cubic feet from $2.80 a year ago.
The company’s oil price realization in the quarter was reported at $51.83 per Bbl, up 5% from $49.37 a year ago. The realized price for C2 Ethane jumped 31% to $13.12 per Bbl from $10.02 in the year-ago quarter. However, the company’s realized price for C3+ NGLs declined to $30.92 per Bbl from $39.16 in the prior-year quarter.
Operating Expenses Surge
Total expenses in the quarter under review skyrocketed to $1,092.3 million from $834.7 million in the year-ago quarter. This was supported by a 30% jump in lease operating expenses to roughly $43 million.
The increase in gathering, compression, processing and transportation expenses of 48% also drove total operating costs.
Financials & Capital Spending
As of Dec 31, 2018, the company reported no cash and cash equivalents. It had a long-term debt of $5,461.7 million, with a debt-to-capitalization ratio of 39.2%.
For drilling and completion operations, the company spent $273 million through the fourth quarter of 2018.
Proved Reserves Grow
Through 2018, the company’s proved reserves grew 4% to 18 trillion cubic feet equivalent (Tcfe).
Guidance
The company projects net natural gas equivalent production through 2019 in the range of 3.15-3.25 (Bcfe/D). For drilling and completion activities, Antero Resources expects consolidated capital spending between $1,100 million and $1,250 million.
Zacks Rank and Key Picks
Currently, Antero Resources carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. (JONE - Free Report) , Golar LNG Partners LP and Sunoco LP (SUN - Free Report) . Jones and Sunoco carry a Zacks Rank #2 (Buy), while Golar LNG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Sunoco LP pulled off average positive earnings surprise of 18.39% in the trailing four quarters.
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Antero Resources (AR) Beats on Q4 Earnings, Reserves Grow
Antero Resources Corporation (AR - Free Report) recently reported adjusted fourth-quarter 2018 earnings per share of 46 cents, beating the Zacks Consensus Estimate of 38 cents and improving from the year-ago quarter’s 23 cents on an increase in natural gas and oil production. The positives were, however, partially offset by a surge in lease operating expenses. Following the outperformance, the stock gained roughly 3% in after-hour trading.
The upstream energy player’s total operating revenues in the fourth quarter amounted to $1,237.4 million, missing the Zacks Consensus Estimate of $1,286 million.
However, the top line improved from the year-ago quarter’s $919.8 million on an increase in oil and natural gas realized prices.
Production Rises
Total production through fourth-quarter 2018 was recorded at 296 billion cubic feet equivalent (Bcfe) — comprising almost 70% natural gas — which is 37% higher than 216 Bcfe a year ago. Natural gas production increased to 206 billion cubic feet (Bcf) from 157 Bcf in the December quarter of 2017.
Production of oil in fourth-quarter 2018 was reported at 1,125 thousand barrel (MBbl), up 97% from 571 MBbl in the prior-year quarter. Its production of 4,323 MBbl of C2 Ethane was 50% higher than 2,891 MBbl in the year-ago quarter. The company’s output of 9,463 MBbl of C3+ NGLs in the December quarter of 2018 was 47% higher than 6,422 MBbl in the year-earlier quarter.
Realized Prices (Excluding Derivatives Settlements)
Natural gas-equivalent price realization in the quarter was $4.05 per thousand cubic feet equivalent (Mcfe), up 17% from $3.46 in the year-earlier quarter. The realized prices for natural gas increased 37% to $3.83 per thousand cubic feet from $2.80 a year ago.
The company’s oil price realization in the quarter was reported at $51.83 per Bbl, up 5% from $49.37 a year ago. The realized price for C2 Ethane jumped 31% to $13.12 per Bbl from $10.02 in the year-ago quarter. However, the company’s realized price for C3+ NGLs declined to $30.92 per Bbl from $39.16 in the prior-year quarter.
Operating Expenses Surge
Total expenses in the quarter under review skyrocketed to $1,092.3 million from $834.7 million in the year-ago quarter. This was supported by a 30% jump in lease operating expenses to roughly $43 million.
The increase in gathering, compression, processing and transportation expenses of 48% also drove total operating costs.
Financials & Capital Spending
As of Dec 31, 2018, the company reported no cash and cash equivalents. It had a long-term debt of $5,461.7 million, with a debt-to-capitalization ratio of 39.2%.
For drilling and completion operations, the company spent $273 million through the fourth quarter of 2018.
Proved Reserves Grow
Through 2018, the company’s proved reserves grew 4% to 18 trillion cubic feet equivalent (Tcfe).
Guidance
The company projects net natural gas equivalent production through 2019 in the range of 3.15-3.25 (Bcfe/D). For drilling and completion activities, Antero Resources expects consolidated capital spending between $1,100 million and $1,250 million.
Zacks Rank and Key Picks
Currently, Antero Resources carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Jones Energy Inc. (JONE - Free Report) , Golar LNG Partners LP and Sunoco LP (SUN - Free Report) . Jones and Sunoco carry a Zacks Rank #2 (Buy), while Golar LNG sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Jones Energy expects 2019 earnings growth of 19% year over year.
Golar LNG delivered average positive earnings surprise of 92.8% in the preceding four quarters.
Sunoco LP pulled off average positive earnings surprise of 18.39% in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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