2024-03-25 00:04:14 ET
Summary
- Antero Resources benefits from premium pricing and pays attention to detail to maximize that premium pricing effect.
- The company's lower cost structure is expected to result in a significant decrease in maintenance capital combined with about $400 million more free cash flow.
- AR stock plans to increase the production of liquids and decrease natural gas production. This makes the production mix more valuable.
- As usual, the company reported good pricing as well as the benefits of liquid production.
- Fiscal year 2024 is expected to be far better in the current pricing environment than the market expected.
Antero Resources ( AR ) has long gotten premium pricing for their products. The transition to more export capacity has management sitting in a very good position to continue to take advantage of that premium. Unexpectedly, operations transitioned to a significantly lower cost structure. That new lower cost structure promises a lot more free cash flow at the same price levels and far better reported results in the future....
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Antero Resources: Unexpected Transition