Antero Resources Corp (NYSE:AR) Issues 2018 Guidance Update

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    Antero Resources Corp (NYSE:AR)’s Q1 2018 net production is anticipated to be flat with Q4 2017 net production due mainly to the timing of completions during 2018, the impact from harsh winter weather on the operations of Sherwood processing plant in the West Virginia Marcellus in the initial part of January, and a closure for many days at the Seneca facility in the Ohio Utica following a third-party downstream pipeline fall-out.

    The buzz

    Both of these processing facility concerns have since been sorted. Antero continues to expect to fulfill its FY2018 net production projection of around 2.7 Bcfe/d. In addition, the extreme cold weather earlier in this year led in attractive pricing on the sales of natural gas and the ability to record considerable marketing revenues during Q1 2018 that more than compensate the reduced production. The company is now expecting a net marketing gain for Q1 2018 and is lowering its net marketing expense projection for FY2018 between $0.10/Mcfe and $0.125/Mcfe.

    Paul Rady, the CEO and Chairman of Antero, expressed that during 2017, the company reached an inflection point by following on its long-term strategic plan. They are now set to generate free cash flow and lower financial leverage, while keeping a 20%-plus debt-adjusted manufacturing growth profile. They were delighted to host their first Analyst Day, where they showcased a clear, measurable strategy to achieve these objectives. Their proven operational track record together with their premium-quality liquids-rich asset portfolio provides them confidence in offering on this plan.

    As of the close of December 31, 2017, the company has a 53% limited partner stake in Antero Midstream. It should be noted that Antero Midstream’s financial results are consolidated within Antero Resources’ results. Antero posted net income of $487 million in the fourth quarter versus a net loss of $486 million, in the prior year period.


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