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Antero Resources Corp AR

Morningstar Rating
$25.21 −0.48 (1.87%)
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Company Report

Antero Resources Earnings: Improvements in Well Productivity Help Offset Weaker Natural Gas Prices

We are reducing our fair value estimate to $21 per share from $23 for no-moat Antero Resources, despite operational improvements, due to our lower near-term gas price forecast. For the fourth quarter, our $0.50 earnings per share forecast was higher than the reported $0.30 due to weaker-than-expected natural gas and crude oil prices. Total volumes declined 1.5% from the prior quarter to 3.4 billion cubic feet equivalent per day, as natural gas liquids declined while natural gas and crude oil production improved. A drilling rig was also retired in December. The reduction was more aggressive than our expectation for a 0.6% decline. Cash production costs were in line with our expectations.

Price vs Fair Value

AR is trading at a 20% premium.
Price
$25.21
Fair Value
$81.00
Uncertainty
High
1-Star Price
$36.97
5-Star Price
$95.50
Economic Moat
Jlbj
Capital Allocation
Npgpznk

Bulls Say, Bears Say

Bulls

Antero's midstream contracts give it priority access to LNG export markets, enabling it to benefit from soaring overseas demand for U.S. natural gas.

Bears

Antero's margins are weakened by above-average unit costs, especially in the next couple of years as it faces elevated marketing costs.

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News

Trading Information

Previous Close Price
$25.69
Day Range
$24.6325.48
52-Week Range
$19.9130.90
Bid/Ask
$24.80 / $25.70
Market Cap
$7.65 Bil
Volume/Avg
5.6 Mil / 5.8 Mil

Key Statistics

Price/Earnings (Normalized)
39.73
Price/Sales
1.54
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.98%

Company Profile

Antero Resources, based in Denver, engages in the exploration for and production of natural gas and natural gas liquids in the United States and Canada. At the end of 2023, the company reported proven reserves of 18.1 trillion cubic feet of natural gas equivalent. Production averaged approximately 3,483 million cubic feet of equivalent a day in 2023 at a ratio of 33% liquids and 66% natural gas.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Small Value
Total Number of Employees
604

Competitors

Valuation

Metric
AR
DVN
RRC
Price/Earnings (Normalized)
39.737.039.46
Price/Book Value
0.922.302.02
Price/Sales
1.541.752.26
Price/Cash Flow
7.763.885.32
Price/Earnings
AR
DVN
RRC

Financial Strength

Metric
AR
DVN
RRC
Quick Ratio
0.310.780.85
Current Ratio
0.330.961.49
Interest Coverage
4.5413.509.83
Quick Ratio
AR
DVN
RRC

Profitability

Metric
AR
DVN
RRC
Return on Assets (Normalized)
2.30%16.27%8.37%
Return on Equity (Normalized)
4.64%34.57%17.13%
Return on Invested Capital (Normalized)
3.52%22.91%12.92%
Return on Assets
AR
DVN
RRC
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