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Antero Resources Q3 adjusted profit misses estimates despite record output

By Reuters News


Overview

  • U.S. natural gas producer's Q3 adjusted net income and adjusted EBITDA missed analyst expectations

  • Net production rose 23% yr/yr to a company record 4.2 Bcfe/d

  • Company repurchased 1.6 mln shares for $56 mln during the quarter


Outlook

  • Antero expects Q4 production of about 4.3 Bcfe/d, including 15-20 Bcfe of curtailments

  • Company guides Q4 cash production expense at $2.10-$2.20 per Mcfe

  • Q4 drilling and completion capital budget forecast at $325-$350 mln


Result Drivers

  • RECORD PRODUCTION - Net production rose 23% yr/yr to a company record 4.2 Bcfe/d, driven by accretive transactions and efficiency gains, per CEO Michael Kennedy

  • LOWER COSTS - Cash operating costs fell 16% yr/yr to $2.05 per Mcfe, attributed to integration of HG Energy and optimization of firm transportation agreements, per CFO Brendan Krueger


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Net Income

Miss

$256 mln

$311.78 mln (11 Analysts)

Q3 Net Income

$367 mln

Q3 Adjusted EBITDA

Miss

$634 mln

$666.19 mln (14 Analysts)

Q3 Adjusted Free Cash Flow

$215 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Antero Resources Corporation is $47.50, about 12.8% above its October 27 closing price of $42.10

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Oct 26 - EQT to buy Range Resources in $13 billion deal to create top US gas producer

  • Oct 27 - Natgas producer EQT's Q3 profit beats expectations on lower operating costs

  • Oct 27 - Natural gas producer Range Resources' Q3 adjusted EPS, net income beat estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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