Antero Resources Corp (NYSE:AR) Looking To Record Attractive Growth


Paul Rady, the CEO and Chairman of Antero Resources Corp (NYSE:AR), expressed that they implement several initiatives during the third to deliver the balance sheet. They have positioned company to record attractive returns and growth while spending within cash flow next year and beyond. This is a proof to the EUR improvements and capital efficiencies that they have recorded to date.

The details

Through lower well costs and increased EURs, they have reduced their drilling and close capital spending programs from 2018 through 2020 by around $1.5 billion while offering the same production growth. Notably, this production growth comprises fast NGL production growth, offering them considerable upside exposure to a sustaining rise in liquids pricing.

The mixture of the sizeable decline in capital requirements with the enhanced liquids cash flow offers Antero Resources with an improving balance sheet and declining leverage. This trend positions them to be able to reward shareholders in the imminent years, dependent on Board review and approval.

Based on the firm’s internal development program, Antero Resources is targeting a compound yearly production growth rate of 20% from 2017 to 2020, with a completion and drilling capital program that is self-supported with E&P stand-alone cash flow. Antero reported that the prevailing development plan assumes $3/MMBtu NYMEX gas as well as $54/Bbl WTI oil, at par with 2018 strip pricing, and an intended drilling and completion capital plan of around $1.3 billion, $1.5 billion and $1.5 billion in 2018, 2019 and 2020, respectively.

The approval for these capital budget targets is still pending from Board. The drilling and completion capital plan for next year highlights the third successive year of maintaining a flat capital plan while still offering leading tier production growth. In addition, as a result of lower well costs, land consolidation efforts boosting long lateral drilling and increased EURs, this advancement plan exhibits a decline of 200 wells and capital of around $1.5 billion through 2020 against the prior development plan looking for the same production growth.

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