Advertisement
Singapore markets close in 15 minutes

  • Straits Times Index

    3,296.44
    +23.72 (+0.72%)
     

  • Nikkei

    38,460.08
    +907.92 (+2.42%)
     

  • Hang Seng

    17,201.27
    +372.34 (+2.21%)
     

  • FTSE 100

    8,083.13
    +38.32 (+0.48%)
     

  • Bitcoin USD

    66,541.66
    +393.42 (+0.59%)
     

  • CMC Crypto 200

    1,437.26
    +13.16 (+0.92%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • Dow

    38,503.69
    +263.71 (+0.69%)
     

  • Nasdaq

    15,696.64
    +245.33 (+1.59%)
     

  • Gold

    2,331.90
    -10.20 (-0.44%)
     

  • Crude Oil

    83.01
    -0.35 (-0.42%)
     

  • 10-Yr Bond

    4.5980
    -0.0250 (-0.54%)
     

  • FTSE Bursa Malaysia

    1,571.06
    +9.42 (+0.60%)
     

  • Jakarta Composite Index

    7,161.86
    +51.05 (+0.72%)
     

  • PSE Index

    6,572.75
    +65.95 (+1.01%)
     

Antero Resources (AR) Beats on Q4 Earnings, Reserves Grow

Zacks Equity Research

Antero Resources Corporation AR 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.

ADVERTISEMENT

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, Golar LNG Partners LP GMLP and Sunoco LP SUN. 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.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Golar LNG Partners LP (GMLP) : Free Stock Analysis Report
 
Sunoco LP (SUN) : Free Stock Analysis Report
 
Antero Resources Corporation (AR) : Free Stock Analysis Report
 
Jones Energy, Inc. (JONE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.