AR

Antero Resources Corporation

Energy


Presented:07/08/2015
Price:$31.23
Cap:$8.65B
Current Price:$27.35
Cap:$8.51B

Presented

Date07/08/2015
Price$31.23
Market Cap$8.65B
Ent Value$13.73B
P/E Ratio7.07x
Book Value$19.30
Div Yield0%
Shares O/S277.00M
Ave Daily Vol1,710,000
Short Int2.40%

Current

Price$27.35
Market Cap$8.51B
Antero Resources Corp. is an independent oil and natural gas company, which engages in the exploration, development and acquisition of unconventional oil and liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. It focuses on unconventional reservoirs, which can generally be characterized as fractured shales and tight sand formations. The company was founded by Paul M. Rady and Glen C. Warren, Jr. in June 2002 and is headquartered in Denver, CO.

Publicly traded companies mentioned herein: Antero Midstream Partners LP (AM), Antero Resources Corp (AR), Enterprise Products Partners LP (EPD)

Highlights

The presenter believes Antero Resources’ (AR) management has an incentive to continue to grow the E&P, and aggressive spending could potentially destroy shareholder value over the next 12-24 months. In addition, AR’s NGL mix is heavy on propane, which is in an unfavorable pricing environment at this time. With shares trading above $30 he has a bearish view on the situation and sees downside risk to the $15 - $22 per share range (from $33) if/ when future EBITDA falls short of Street estimates. If his assumptions prove to be accurate, AR’s multiple would likely contract as well.

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Idea Discussion

Commentor 1 - 2 weeks ago

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