| Over a week ago | ||||
Truist analyst Welles… Truist analyst Welles Fitzpatrick raised the firm's price target on Antero Resources to $10 from $4 but keeps a Hold rating on the shares. The analyst is positive on the company's drilling partnership with QL Capital to help address its debt and believes that its capital efficiencies and lower operating costs could continue to improve as drilling remains in "premium buckets". Fitzpatrick warns however that Antero's enterprise value to expected free cash flow multiple should remain "slightly below" other natural gas operators. | ||||
Antero Resources… Antero Resources announced the formation of a drilling partnership with QL Capital Partners ("QL"), an affiliate of Quantum Energy Partners. Antero Resources noted that it is uniquely positioned to bring on a drilling partner due to its unutilized firm transportation portfolio and deep liquids-rich inventory. Under the terms of the agreement, QL is expected to fund 20% of total development capital spending in 2021 and between 15% and 20% of total development capital on an annual basis from 2022 through 2024 in exchange for a proportionate working interest percentage in each well spud. In addition, QL will pay a drilling carry to Antero Resources if certain return thresholds are achieved. Assuming QL's full participation through 2024, the partnership will enable the drilling and completion of approximately 60 incremental wells relative to Antero's prior base case of maintenance level capital. The drilling partnership is effective immediately and includes all wells spud since January 1, 2021. | ||||
Reports Q4 revenue… Reports Q4 revenue $1.31B, consensus $1.07B. Paul Rady, Chairman and Chief Executive Officer of Antero Resources commented, "Antero's unique position of having market leading exposure to attractive C3+ NGL prices, a premium firm transportation portfolio and extensive premium core drilling inventory creates a highly accretive development program in 2021. In addition, the drilling partnership announced today and the incremental gross production generated thereby is estimated to add incremental free cash flow to Antero of $400 million through 2025, assuming current strip prices. This significant incremental free cash flow results from filling of our premium firm transportation capacity, capturing additional LP gathering incentive fees from Antero Midstream and realizing carry payments from our drilling partner." | ||||
Capital One analyst Brian… Capital One analyst Brian Velie upgraded Antero Resources to Overweight from Equalweight with a price target of $11, up from $10. | ||||
Capital One analyst Brian… Capital One analyst Brian Velie upgraded Antero Resources to Overweight from Equalweight with an $11 price target. | ||||
Bullish option flow… Bullish option flow detected in Antero Resources with 14,070 calls trading, 1.9x expected, and implied vol increasing over 2 points to 97.56%. Aug-21 9 calls and May-21 8 calls are the most active options, with total volume in those strikes near 8,500 contracts. The Put/Call Ratio is 0.04. Earnings are expected on February 17th. |
| Over a month ago | ||||
Raymond James analyst… Raymond James analyst John Freeman upgraded Antero Resources to Outperform from Market Perform with a $9 price target. Freeman says Antero has addressed upcoming maturities through a combination of asset sales, debt refinancings, equity offerings, and projected free cash flow, and its firm transport has allowed it to escape the worst effects of Appalachian differentials while its heavier NGL barrel gives it exposure to surging propane and butane prices. | ||||
Raymond James analyst… Raymond James analyst John Freeman upgraded Antero Resources to Outperform from Market Perform. | ||||
Virtual Meeting to be… Virtual Meeting to be held on January 21 hosted by JPMorgan. | ||||
Virtual Meeting to be… Virtual Meeting to be held on January 21 hosted by JPMorgan. | ||||