Antero Resources reports 3Q net loss of $536M

Antero Resources reported a net loss of $536 million or $1.99 per diluted share in the third quarter 202, Kallanish Energy reports.

That compares to a net loss of $879 million or $2.86 per share in the 3Q 2019.

The loss was driven by a $749 million unrealized commodity hedge fair value loss as a result of the 10% increase in natural gas strip pricing during the quarter, said the Colorado-based company, a key player in the Appalachian Basin.

The company reported 3Q 2020 revenue of $380.6 million, down from $1.1 billion in 3Q 2019.

The company reported $88 million in free cash flow before changes in working capital in the quarter reduced that to $7 million.

It expects working capital adjustments to reverse in the 4Q 2020 and expects free cash flow of $175 million to $200 million in 4Q 2020 with gains in natural gas and NGLs, it said.

The company reported net production averaged 3,772 million cubic feet equivalent per day including 220,000 barrels per day of liquids. That production is 65% natural gas by volume.

It reported that net production grew by 12% from 3Q 2019.

“Our third quarter results highlight the exceptional operational momentum that continues at Antero,” said chairman and CEO Paul Rady in a statement.

“Our development program and well results continue to exceed expectations, which drove the quarterly production outperformance,” he said.

Its average realized natural gas price before hedging was $1.93 per Mcf, representing a 23% drop from 3Q 2019. Including hedges, the average realized price was $2.92 per Mcf, a 94-cent premium to the average NYMEX price.

Antero spent $161 million in the quarter on drilling and completions, 11% down from 2Q 2020 and 44% down from 3Q 2019.

In the quarter, the company placed 27 horizontal Marcellus Shale wells to sales with an average lateral length of 11,937 feet.

To date, Antero has completed 96 of the projected 105 well completions planned in 2020. It allocated %750 million for full-year 2020 capital spending.

That drilling and completion activity is expected to slow down in 4Q 2020, it said.

Year to date, the company said it has averaged more than 6,000 feet drilled laterals per day.

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