Antero Resources(US:AR) Prnewswire·2024-02-14 21:15Core Viewpoint Antero Resources Corporation reported strong financial and operational results for the fourth quarter and full year of 2023, highlighting increased production, improved capital efficiency, and a positive outlook for 2024 driven by anticipated demand growth in the LNG sector. Financial Highlights - Fourth quarter net production averaged 3.4 Bcfe/d, a 6% increase year-over-year [2] - Realized a pre-hedge natural gas equivalent price of $3.52 per Mcfe, a $0.64 per Mcfe premium to NYMEX pricing [2] - Net income for the fourth quarter was $95 million, with adjusted net income of $71 million [2] - Adjusted EBITDAX was $322 million, and net cash provided by operating activities was $312 million [2] - Free cash flow before changes in working capital was $90 million [9] Production and Reserves - Full year 2023 net production averaged 3.4 Bcfe/d, a 6% increase from the prior year [3] - Liquids production averaged 193 MBbl/d, a 14% increase from the prior year [3] - Estimated proved reserves increased to 18.1 Tcfe at year-end 2023, with proved developed reserves at 13.8 Tcfe, a 2% increase from the prior year [3][19] - Estimated future development cost for 4.3 Tcfe of proved undeveloped reserves is $0.42 per Mcfe [3] 2024 Guidance - Net production is expected to average between 3.3 and 3.4 Bcfe/d, with natural gas production projected to decline by 3% [4] - Liquids production is expected to increase by 2% from the prior year [4] - The drilling and completion capital budget is set at $650 to $700 million, a decrease of 26% from 2023 [4] - Land capital budget is projected at $75 to $100 million, down 41% from 2023 [4] Operational Efficiency - The company achieved a record average lateral length drilled of over 17,000 feet per well in the fourth quarter [2] - Completion stages per day averaged 11 stages, a 39% increase from the prior year [3] - The corporate decline rate has significantly decreased, leading to a reduction in maintenance capital for 2024 [4] Market Position and Outlook - The company is well-positioned to benefit from the anticipated surge in LNG demand, with a firm transportation portfolio that delivers 100% of its natural gas out of basin [3] - By the end of 2025, total exports, including LNG and Mexico pipeline flows, are expected to increase by nearly 8 Bcf/d, outpacing supply growth [3] - The CFO noted that significant leverage to NGL prices, which have increased over 15% from the fourth quarter of 2023, enhances the 2024 outlook [3]