Antero Resources Reports Fourth Quarter and Full Year 2017 Financial and Operating Results

Financial and operational results are reported and discussed on a consolidated basis, unless otherwise noted.  Please read "Non-GAAP Financial Measures" for:

• A description of consolidated and Stand-Alone E&P non-GAAP measures, including adjusted EBITDAX and adjusted net income, and reconciliations to their nearest comparable GAAP measures
• A reconciliation of revenue excluding unrealized hedge gains (losses) and unrealized marketing derivative losses to operating revenue, the most comparable GAAP measure
• A reconciliation of net debt to total debt, the most comparable GAAP measure
• A reconciliation of Antero Midstream's adjusted EBITDA and Distributable Cash Flow to their nearest comparable GAAP measure

Please read "Fourth Quarter 2017 Financial Results" and "2017 Financial Results" for reconciliations of consolidated and Stand-Alone E&P adjusted EBITDAX margin to realized price before cash receipts for settled hedges, the most comparable GAAP measure.

Tax Reform

As a result of the new tax legislation that was enacted in late December, the following items affecting Antero have occurred:

• The Company recognized a deferred tax benefit of $428 million in the fourth quarter primarily due to the remeasurement of the Company's net deferred tax liability for the reduction in the U.S. statutory rate from 35% to 21%.
• Under the new tax legislation, Antero is limited in the utilization of net operating loss ("NOLs") carryforwards generated after tax year 2017 to 80% of taxable income. As a result, the Company deducted all of its intangible drilling costs for U.S. federal income tax purposes for tax year 2017 in order to maximize the NOLs generated prior to tax year 2018, which are not subject to the 80% limitation. The deduction of the intangible drilling costs resulted in an increase in NOLs from approximately $1.6 billion at December 31, 2016 to $3.0 billion at December 31, 2017.

Other significant provisions that are not yet effective, but may impact income taxes in future years, are included in Antero's Form 10-K under the 2017 Recent Developments and Highlights (Part I, Items 1 and 2).

Fourth Quarter 2017 Financial Results

As of December 31, 2017, Antero owned a 53% limited partner interest in Antero Midstream.  Antero Midstream's results are consolidated within Antero's results. 

Antero reported fourth quarter net income of $487 million, or $1.54 per diluted share, compared to a net loss of $486 million, or $1.55 per diluted share, in the prior year period.  Excluding the items detailed in our "Non-GAAP Financial Measures," fourth quarter adjusted net income was $74 million, or $0.23 per diluted share, and adjusted EBITDAX was $437 million.

The following table details the components of average net production and average realized prices for the three months ended December 31, 2017:

Net daily production in the fourth quarter averaged 2,347 MMcfe/d, including 107,433 Bbl/d of liquids (27% liquids), representing an organic growth rate of 18% versus the prior year period and a 1% increase sequentially.  Production was negatively impacted by the delayed in-service date of the Rover Pipeline, resulting in an approximate 45 day delay in placing 10 newly completed Utica wells to sales until the end of 2017.  C3+ NGLs, oil, and recovered ethane production averaged 69,801 Bbl/d, 6,207 Bbl/d, and 31,425 Bbl/d, respectively.  Total liquids production represents an organic growth rate of 24% versus the prior year period and a 4% decrease sequentially.  The sequential decline in liquids production was a result of higher NGL allocations to royalty owners due to the improvement in liquids pricing.  Liquids revenue represented approximately 41% of total product revenues, increasing from 30% of total product revenues in the prior year period.

Antero's average realized natural gas price before hedging decreased 8% from the prior year period to $2.80 per Mcf, a $0.13 per Mcf differential to the average NYMEX price.  Excluding the $0.20 negative impact from the Company's previously disclosed natural gas contract disputes with South Jersey Gas Company and South Jersey Resources Group, LLC (collectively, "SJGC") and Washington Gas Light Company and WGL Midstream, Inc. (collectively, "WGL"), the average natural gas price before hedging would have been $3.00 per Mcf, a $0.07 premium to the average NYMEX natural gas price.  In 2018, Antero does not expect a material impact to its realized price and cash flow from these contractual disputes due to both additional takeaway capacity that is expected to be placed in service throughout the year and narrower regional basis differentials based on current strip pricing.  Additionally, Antero recently amended its natural gas sales contract with WGL Midstream, Inc.  As a result, effective February 1, 2018 the total aggregate volumes to be delivered to WGL at the delivery point in Braxton County, West Virginia were reduced from 500,000 MMBtu/d to 200,000 MMBtu/d.  Upon both (1) the in service of the Dominion Cove Point LNG facility and (2) the earlier of in service of the WB East expansion and January 1, 2019, the aggregate contract volumes to be delivered to WGL will increase by 330,000 MMBtu/day.  This increase will be in effect for the remaining term of our gas sales contract with WGL Midstream, which expires in 2038, and these increased volumes will be subject to NYMEX-based pricing.  Following the increase of 330,000 MMBtu/d, the aggregate contract volumes to be delivered to WGL will total 530,000 MMBtu/d.  Antero will continue to vigorously seek recovery from SJGC and WGL of all unpaid amounts, including interest, as part of its pending claims against these counterparties.  Through December 31, 2017, damages net to Antero have totaled approximately $86 million for WGL and $51 million for SJGC. Substantially all of these amounts have not been accrued in the Company's financial statements.

Including hedges, Antero's average realized natural gas price was $3.67 per Mcf, a $0.74 premium to the NYMEX average price and consistent with the prior year period, reflecting the realization of a cash settled natural gas hedge gain of $136 million, or $0.87 per Mcf.

Antero's average realized C3+ NGL price before hedging was $39.16 per barrel, or 71% of the average NYMEX WTI oil price, representing a 55% increase versus the prior year period.  Including hedges, Antero's average realized C3+ NGL price was $29.92 per barrel, a 17% increase versus the prior year period, reflecting the realization of a cash settled C3+ hedge loss of $59 million, or $9.24 per barrel.  The average realized ethane price before hedging was $0.24 per gallon, or $10.02 per barrel, and the average realized oil price before hedging was $49.37 per barrel, a $6.00 negative differential to average NYMEX WTI and a 26% increase versus the prior year period. 

Antero's average natural gas equivalent price including C2+ NGLs and oil, but excluding hedge settlements, was $3.46 per Mcfe, an increase of 7% versus the prior year period.  Including hedges, the Company's average natural gas equivalent price was $3.82 per Mcfe, a 10% decrease from the prior year period, driven by lower realized hedge gains compared to the prior year period.  The net cash settled hedge gain on all products was $77 million, or $0.35 per Mcfe, primarily reflecting the impact of gains on natural gas hedges partially offset by losses from C3+ hedges.

Operating revenues were $1.022 billion, compared to $156 million in the prior year period.  Revenue included a $123 million non-cash gain on unsettled hedges and a $21 million loss on unsettled marketing derivatives, while the prior year included an $829 million non-cash loss on unsettled hedges and a $98 million gain on the sale of assets.  Revenue excluding the unrealized hedge gain and unrealized marketing derivative loss was $920 million, a 4% increase versus the prior year period.  Liquids production contributed 41% of total product revenues before hedges, compared to a 30% contribution in the prior year period.  Please see "Non-GAAP Financial Measures" for a description of revenue excluding the unrealized hedge gain and unrealized marketing derivative loss.

The following table presents a reconciliation of realized price before cash receipts for settled hedges to consolidated and Stand-Alone adjusted EBITDAX margin for the three months ended December 31, 2016 and 2017:

	Stand-Alone E&P Three Months Ended						Consolidated Three Months Ended
	December 31,						December 31,
Adjusted EBITDAX margin ($ per Mcfe):		2016			2017		2016			2017
Realized price before cash receipts for settled hedges	$	3.22 Werbung Mehr Nachrichten zur Antero Resources Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 04:40 - PR Newswire Norges Bank - Form 8.3 - Virgin Money UK PLC 02:00 - PR Newswire Pensana Plc - Update on FSDEA US$15 million loan facility 02:00 - PR Newswire BlackRock Throgmorton Trust Plc - Total Voting Rights Auf zur INVEST am 26.+ 27.04.2024    Foto: Landesmesse Stuttgart GmbH - Jetzt kostenloses Ticket sichern! weiterlesen» Anzeige wo-site-teaser-box-16688_site-teaser-box_2024-04-17_09%253A00%253A00_2024-04-22_09%253A00%253A59