Antero Resources Corporation (AR) Bundle
A Brief History of Antero Resources Corporation
Antero Resources Corporation (AR) is a prominent player in the exploration and production of natural gas and natural gas liquids (NGLs) in the United States, particularly focused on the Appalachian Basin. Founded in 2002, the company has grown significantly through strategic acquisitions and organic growth. As of 2024, Antero Resources continues to adapt to market dynamics while maintaining a robust operational framework.
Financial Performance
As of September 30, 2024, Antero Resources reported the following financial metrics:
| Metric | 2023 (9 Months) | 2024 (9 Months) |
|---|---|---|
| Total Revenue | $3,487.83 million | $3,156.85 million |
| Net Income (Loss) | $225.91 million | $(22.46) million |
| Natural Gas Sales | $1,621.66 million | $1,274.50 million |
| NGL Sales | $1,375.74 million | $1,511.25 million |
| Oil Sales | $172.40 million | $180.90 million |
| Operating Income (Loss) | $298.29 million | $(2.73) million |
Cash Flow Summary
For the nine months ending September 30, 2024, Antero Resources reported cash flows as follows:
| Cash Flow Type | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $682,546 | $571,286 |
| Net Cash Used in Investing Activities | $(914,137) | $(588,251) |
| Net Cash Provided by Financing Activities | $231,591 | $16,965 |
| Net Increase in Cash and Cash Equivalents | $0 | $0 |
Commodity Prices
The performance of Antero Resources is heavily influenced by commodity prices. For the three months ended September 30, 2024, the average benchmark prices were:
| Commodity | Price ($) |
|---|---|
| Henry Hub Natural Gas | $2.16/Mcf |
| Mont Belvieu Ethane | $6.61/Bbl |
| Mont Belvieu C3+ NGLs | $39.01/Bbl |
| West Texas Intermediate Oil | $75.09/Bbl |
Capital Expenditures
Antero Resources has outlined its capital expenditure plans as follows:
| Year | Capital Expenditure Range (in millions) |
|---|---|
| 2024 | $715 - $760 |
For the nine months ended September 30, 2024, total capital expenditures were $578 million, which included drilling and completion costs of $499 million and leasehold acquisitions of $69 million.
Debt and Liquidity
Antero Resources continues to manage its financial leverage effectively, with significant liquidity derived from its operational cash flows and credit facilities. As of September 30, 2024, the company had a net debt position that reflects its ongoing efforts to optimize its capital structure while ensuring sufficient liquidity for operational needs.
Overall, Antero Resources Corporation's financial health as of 2024 reflects the challenges and opportunities present in the energy sector, characterized by fluctuating commodity prices and strategic capital management.
A Who Owns Antero Resources Corporation (AR)
Shareholder Composition
As of September 30, 2024, Antero Resources Corporation (AR) has the following ownership structure:
| Ownership Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 76.7% | 238,032,000 |
| Insider Ownership | 5.2% | 16,000,000 |
| Retail Investors | 18.1% | 57,000,000 |
Top Institutional Shareholders
The largest institutional shareholders of Antero Resources as of September 30, 2024, include:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 39,000,000 |
| BlackRock, Inc. | 11.8% | 36,800,000 |
| State Street Corporation | 10.2% | 31,800,000 |
| Wellington Management Group LLP | 8.9% | 27,600,000 |
| Invesco Ltd. | 6.7% | 20,800,000 |
Insider Ownership
Insider ownership as of September 30, 2024, includes:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Paul Rady | CEO | 5,000,000 | 1.6% |
| Glen Warren | President | 3,000,000 | 1.0% |
| Other Executives | Various | 8,000,000 | 2.6% |
Recent Changes in Ownership
As of September 30, 2024, Antero Resources has seen a slight increase in institutional ownership compared to December 31, 2023, where institutional investors held approximately 75.5% of shares. Additionally, insider ownership has remained stable, indicating confidence from management in the company's strategic direction.
Market Capitalization and Stock Performance
As of September 30, 2024, Antero Resources Corporation's market capitalization is approximately $3.1 billion, with a stock price of $10.00 per share, reflecting a year-to-date performance of a decrease of 12% from the beginning of the year.
| Metric | Value |
|---|---|
| Market Capitalization | $3.1 billion |
| Current Stock Price | $10.00 |
| Year-to-Date Performance | -12% |
Ownership Trends
Recent trends indicate a growing interest among institutional investors, likely driven by Antero's strategic initiatives and operational performance in the natural gas sector. The company reported revenues of $3.16 billion for the nine months ended September 30, 2024, showing resilience despite market volatility.
Antero Resources Corporation (AR) Mission Statement
Overview
Antero Resources Corporation's mission is to responsibly explore and develop natural gas and natural gas liquids resources in a sustainable manner while maximizing shareholder value.
Corporate Values
- Safety: Commitment to maintaining a safe working environment.
- Integrity: Conducting business with transparency and honesty.
- Environmental Stewardship: Minimizing environmental impact through innovative practices.
- Community Engagement: Building strong relationships with local communities.
- Operational Excellence: Striving for efficiency and effectiveness in all operations.
Financial Performance
As of the third quarter of 2024, Antero Resources reported the following financial results:
| Financial Metric | Q3 2023 | Q3 2024 |
|---|---|---|
| Total Revenue | $1,126,176,000 | $1,055,920,000 |
| Net Income (Loss) | $17,808,000 | $(20,444,000) |
| Natural Gas Sales | $516,214,000 | $425,802,000 |
| Natural Gas Liquids Sales | $482,570,000 | $504,200,000 |
| Oil Sales | $62,629,000 | $52,724,000 |
| Operating Expenses | $1,070,444,000 | $1,061,823,000 |
| Capital Expenditures | $172,000,000 | $172,000,000 |
Market Conditions
The following table outlines the average benchmark prices for natural gas and oil as of September 30, 2024:
| Commodity | Q3 2023 Price | Q3 2024 Price |
|---|---|---|
| Henry Hub Natural Gas ($/Mcf) | $2.55 | $2.16 |
| Mont Belvieu Ethane ($/Bbl) | $12.38 | $6.61 |
| Mont Belvieu C3+ NGLs ($/Bbl) | $37.07 | $39.01 |
| West Texas Intermediate ($/Bbl) | $82.26 | $75.09 |
Capital Budget
Antero Resources announced a net capital budget for 2024 ranging from $715 million to $760 million, with allocations as follows:
| Budget Item | Amount ($ millions) |
|---|---|
| Drilling and Completion | $640 - $660 |
| Leasehold Expenditures | $75 - $100 |
Debt Structure
As of September 30, 2024, Antero Resources had the following debt obligations:
| Debt Instrument | Outstanding Balance ($ millions) | Weighted Average Interest Rate (%) |
|---|---|---|
| Unsecured Credit Facility | $527 | 6.47 |
| 8.375% Senior Notes Due 2026 | $97 | 8.375 |
| 7.625% Senior Notes Due 2029 | $407 | 7.625 |
| 5.375% Senior Notes Due 2030 | $600 | 5.375 |
How Antero Resources Corporation (AR) Works
Company Overview
Antero Resources Corporation (AR) is a leading independent natural gas and natural gas liquids (NGL) company engaged in the exploration, production, and marketing of oil and natural gas. As of 2024, the company focuses its operations primarily in the Appalachian Basin, particularly in the Marcellus and Utica shale regions.
Financial Performance
For the nine months ended September 30, 2024, Antero Resources reported total revenues of $3.156 billion, a slight decrease from $3.487 billion for the same period in 2023. The breakdown is as follows:
| Revenue Source | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Natural Gas Sales | $3,009,995 | $3,155,093 |
| NGL Sales | $145,098 | $145,098 |
| Oil Sales | $1,482 | $1,482 |
Production and Sales Metrics
As of September 30, 2024, Antero's production metrics include:
| Product Type | Volume (MMBtu) | Price ($/MMBtu) |
|---|---|---|
| Natural Gas | 1,621,659 | $2.10 |
| NGLs | 1,375,738 | $40.70 |
| Oil | 172,402 | $75.09 |
Operating Expenses
The operating expenses for the nine months ended September 30, 2024, totaled $1.070 billion, compared to $1.000 billion in the same period of 2023. The detailed breakdown includes:
| Expense Type | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Lease Operating Expenses | $88,477 | $88,477 |
| Gathering, Compression, Processing | $1,000,902 | $1,070,444 |
| General and Administrative | $58,425 | $35,641 |
Cash Flow Analysis
Antero Resources' cash flow for the nine months ended September 30, 2024, shows a net cash provided by operating activities of $571 million, a decrease from $682 million in the same period of 2023. The cash flows are summarized as follows:
| Cash Flow Type | 2023 (in thousands) | 2024 (in thousands) |
|---|---|---|
| Operating Activities | $682,546 | $571,286 |
| Investing Activities | $(914,137) | $(588,251) |
| Financing Activities | $231,591 | $16,965 |
Debt and Equity Structure
Antero Resources has a total long-term debt of $1.630 billion as of September 30, 2024. The breakdown of long-term debt includes:
| Debt Type | Amount (in thousands) |
|---|---|
| Credit Facility | $526,700 |
| 8.375% Senior Notes Due 2026 | $96,870 |
| 7.625% Senior Notes Due 2029 | $407,115 |
| 5.375% Senior Notes Due 2030 | $600,000 |
Market Conditions
Commodity prices have shown volatility, impacting revenues. The average benchmark prices for the three months ended September 30, 2024, were:
| Commodity | Price ($) |
|---|---|
| Henry Hub Natural Gas | $2.16 |
| Mont Belvieu Ethane | $6.61 |
| Mont Belvieu C3+ NGLs | $39.01 |
| West Texas Intermediate Oil | $75.09 |
Future Outlook
The company plans to complete 45 to 50 net horizontal wells in the Appalachian Basin during 2024, with a revised capital budget of $715 million to $760 million. The budget allocation is focused on:
- Drilling and completion: $640 million to $660 million
- Leasehold expenditures: $75 million to $100 million
How Antero Resources Corporation (AR) Makes Money
Revenue Streams
Antero Resources Corporation generates revenue primarily from the sale of natural gas, natural gas liquids (NGLs), and oil. Below are the detailed revenue figures for the nine months ended September 30, 2024:
| Revenue Source | 2023 (in thousands) | 2024 (in thousands) | Change (%) |
|---|---|---|---|
| Natural Gas Sales | $1,621,659 | $1,274,503 | -21% |
| NGLs Sales | $1,375,738 | $1,511,253 | 10% |
| Oil Sales | $172,402 | $180,899 | 5% |
| Commodity Derivative Fair Value Gains | $137,924 | $22,229 | -84% |
| Marketing Revenue | $155,390 | $145,098 | -7% |
| Amortization of Deferred Revenue, VPP | $22,852 | $20,289 | -11% |
| Other Revenue and Income | $1,864 | $2,574 | 38% |
| Total Revenue | $3,487,829 | $3,156,845 | -9% |
Natural Gas Sales
Natural gas sales decreased significantly due to lower commodity prices and production volumes. The average realized price for natural gas was approximately $2.10 per Mcf for the nine months ended September 30, 2024.
NGLs Sales
NGLs sales increased to $1.5 billion in 2024, with higher production volumes and prices contributing to this growth. The average realized price for NGLs during this period was higher compared to the previous year.
Oil Sales
Oil sales increased slightly to $181 million in 2024, attributed mainly to higher production volumes.
Commodity Derivative Fair Value Gains
Gains from commodity derivatives decreased significantly from $137.9 million in 2023 to $22.2 million in 2024. This reflects a reduction in the effectiveness of hedging strategies as much of the production was unhedged.
Operating Expenses
The operating expenses for Antero Resources are categorized as follows:
| Expense Category | 2023 (in thousands) | 2024 (in thousands) | Change (%) |
|---|---|---|---|
| Lease Operating Expenses | $91,553 | $88,477 | -2% |
| Gathering, Compression, Processing, and Transportation | $1,981,033 | $2,020,906 | 2% |
| Production and Ad Valorem Taxes | $117,692 | $147,524 | 25% |
| Marketing Expenses | $217,078 | $192,764 | -11% |
| General and Administrative Expenses | $169,587 | $169,917 | 0% |
| Total Operating Expenses | $3,189,543 | $3,159,577 | -1% |
Market Conditions and Price Volatility
The revenues of Antero Resources are significantly impacted by market conditions for natural gas, NGLs, and oil. The company faced a decrease in natural gas prices from $2.69 per Mcf in 2023 to $2.10 per Mcf in 2024. In contrast, NGL prices showed an increase, with Mont Belvieu C3+ NGLs averaging $40.70 per Bbl in 2024.
Net Income and Expenses
Net income attributable to Antero Resources Corporation for the nine months ended September 30, 2024, was a loss of $20.4 million, compared to a profit of $17.8 million in the same period of 2023.
Interest Expense
Interest expense increased from $85 million in 2023 to $91 million in 2024, primarily due to higher borrowings and interest rates.
Antero Resources Corporation (AR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Antero Resources Corporation (AR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Antero Resources Corporation (AR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Antero Resources Corporation (AR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.