Antero Resources Q3 Earnings Miss Estimates on Lower Production

Antero Resources Corporation AR reported third-quarter 2024 adjusted loss of 12 cents per share, wider than the Zacks Consensus Estimate of a loss of 3 cents. The bottom line also deteriorated from the year-ago reported earnings of 8 cents.Total quarterly revenues of $1,056 million beat the Zacks Consensus Estimate of $1,043 million. The top line, however, decreased from the year-ago figure of $1,126 million.Weak quarterly earnings can be attributed to a decrease in total gas equivalent production volumes and lower commodity price realizations. The negatives were partially offset by a decline in total operating expenses.Antero Resources Corporation Price and Consensus Antero Resources Corporation price-consensus-chart | Antero Resources Corporation QuoteOverall ProductionTotal production in the third quarter was 313 billion cubic feet equivalent (Bcfe), lower than 320 Bcfe recorded a year ago. Our estimate for the same was pinned at 309 Bcfe.Natural gas production (accounting for 64% of the total production) was 200 Bcf, down 4% from 208 Bcf recorded a year ago. The figure was above our estimate of 196 Bcf.Oil production in the quarter amounted to 856 thousand barrels (MBbls), down 7% from 918 MBbls registered in the year-ago period. Our estimate for the same was pegged at 920 MBbls.Antero Resources reported production of 7,302 MBbls of C2 Ethane, up 9% from 6,696 MBbls recorded a year ago. Our estimate for the same was pinned at 7,388 MBbls.The company’s production of 10,793 MBbls of C3+ NGLs was 2% lower than 10,977 MBbls reported a year ago. The figure came in higher than our estimate of 10,513 MBbls.Realized Prices (Excluding Derivative Settlements)Weighted natural-gas-equivalent price realization in the quarter was $3.14 per thousand cubic feet equivalent (Mcfe), lower than the year-ago figure of $3.32. The reported figure was higher than our estimate of $2.98.Realized prices for natural gas declined 14% to $2.13 per Mcf from $2.48 recorded a year ago. Our estimate for the same was pinned at $2.05 per Mcf.The company’s oil price realization in the quarter was $61.59 per barrel (Bbl), lower than $68.22 registered a year ago. The figure was below our estimate of $68.43 per Bbl.The realized price for C3+ NGLs increased to $41.30 per Bbl from $36.81 reported a year ago. The figure was above our estimate of $39.26 per Bbl.The realized price for C2 Ethane decreased to $8.01 per Bbl from $11.73 recorded a year ago. The figure was below our estimate of $10.39 per Bbl.Operating ExpensesTotal operating expenses decreased to $1,062 million from $1,070 million reported in the year-ago period. Our estimate for the same was pinned at $1,047.6 million.Average lease operating costs were 9 cents per Mcfe, down 10% from 10 cents recorded in the year-ago period. The gathering and compression costs were 72 cents per Mcfe, 6% higher than the prior-year recorded number.Transportation expenses declined 3.3% year over year to 58 cents per Mcfe, while processing costs increased 5.6% to 88 cents per Mcfe.Capex & FinancialsIn the third quarter, Antero Resources spent $148 million on drilling and completion operations. As of Sept. 30, 2024, it had no cash and cash equivalents. The company had a long-term debt of $1.62 billion as of the same date.GuidanceFor 2024, Antero Resources decreased its drilling and completion capital budget from the initially announced range of $650-$700 million to $640-$660 million. The company’s production guidance remains unchanged at 3.375-3.425 Bcfe per day, including higher liquid volumes.AR’s Zacks Rank and Key PicksCurrently, AR carries a Zacks Rank #4 (Sell).Some better-ranked stocks in the energy sector are Archrock Inc. AROC, The Williams Companies, Inc. WMB and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and FuelCell Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.The Williams Companies, Inc. is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks