NYSE:AR

Stock Analysis Report

Executive Summary

Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Antero Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.5%

AR

0.09%

US Oil and Gas

0.06%

US Market


1 Year Return

-80.9%

AR

-17.6%

US Oil and Gas

19.3%

US Market

Return vs Industry: AR underperformed the US Oil and Gas industry which returned -17.6% over the past year.

Return vs Market: AR underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

ARIndustryMarket
7 Day11.5%0.09%0.06%
30 Day-10.2%-6.5%1.7%
90 Day-15.2%-6.3%9.0%
1 Year-80.9%-80.9%-14.4%-17.6%21.8%19.3%
3 Year-92.3%-92.3%-11.4%-19.8%49.5%39.9%
5 Year-95.3%-95.3%-20.5%-32.2%73.1%54.1%

Price Volatility Vs. Market

How volatile is Antero Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Antero Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AR ($1.84) is trading below our estimate of fair value ($36.06)

Significantly Below Fair Value: AR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AR is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.

PE vs Market: AR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AR is good value based on its PB Ratio (0.1x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

How is Antero Resources forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

86.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: AR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AR's is expected to become profitable in the next 3 years.

Revenue vs Market: AR's revenue (1.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: AR's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Antero Resources performed over the past 5 years?

-31.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AR is currently unprofitable.

Growing Profit Margin: AR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AR is unprofitable, and losses have increased over the past 5 years at a rate of -31.7% per year.

Accelerating Growth: Unable to compare AR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-13.3%).


Return on Equity

High ROE: AR has a negative Return on Equity (-4.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Antero Resources's financial position?


Financial Position Analysis

Short Term Liabilities: AR's short term assets ($922.9M) do not cover its short term liabilities ($1.0B).

Long Term Liabilities: AR's short term assets ($922.9M) do not cover its long term liabilities ($7.2B).


Debt to Equity History and Analysis

Debt Level: AR's debt to equity ratio (53.9%) is considered high.

Reducing Debt: AR's debt to equity ratio has reduced from 79.5% to 53.9% over the past 5 years.


Balance Sheet

Inventory Level: AR has a high level of physical assets or inventory.

Debt Coverage by Assets: AR's debt is not covered by short term assets (assets are 0.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: AR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

What is Antero Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Paul Rady (65yo)

15.8yrs

Tenure

US$8,389,882

Compensation

Mr. Paul M. Rady has been Chairman and Chief Executive Officer of Antero Midstream Partners GP LLC, the General Partner of Antero Midstream Partners LP since April 11, 2017. Mr. Rady has been Chairman and  ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD8.39M) is above average for companies of similar size in the US market ($USD1.66M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Rady
Co-Founder15.8yrsUS$8.39m4.34% $22.9m
Glen Warren
Co-Founder15.8yrsUS$4.20m3.54% $18.7m
Alvyn Schopp
Chief Administrative Officer6.4yrsUS$2.27m0.38% $2.0m
Michael Kennedy
Senior Vice President of Finance4.1yrsUS$2.17mno data
Diana Hoff
Senior Vice President of Operations2.7yrsno datano data
K. Yoo
VP of Accounting & Chief Accounting Officer6.3yrsno data0.031% $161.3k
Yvette Schultz
Vice President of Legal & General Counsel3.1yrsno datano data
John Giannaula
Vice President of Human Resources & Administration3.1yrsno datano data
Steven Woodward
Senior Vice President of Business Development4.1yrsno datano data
Brian Kuhn
Senior Vice President of Land4.1yrsno datano data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Management: AR's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Rady
Co-Founder15.8yrsUS$8.39m4.34% $22.9m
Glen Warren
Co-Founder15.8yrsUS$4.20m3.54% $18.7m
William Keenan
Independent Director16.1yrsUS$275.00k0.093% $491.7k
Robert Clark
Independent Director6.3yrsUS$337.50k0.097% $509.3k
Paul Korus
Independent Director1.2yrsUS$32.96k0.020% $106.1k
Thomas Tyree
Independent Director0.3yrsno data0.0069% $36.3k
Vicky Sutil
Independent Director0.3yrsno data0.0069% $36.3k
Benjamin Hardesty
Lead Director0.7yrsUS$322.50k0.035% $185.1k
Joyce McConnell
Independent Director2yrsUS$295.00k0.023% $123.3k

2.0yrs

Average Tenure

64yo

Average Age

Experienced Board: AR's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Antero Resources Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Antero Resources Corporation
  • Ticker: AR
  • Exchange: NYSE
  • Founded: 2002
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$527.486m
  • Shares outstanding: 286.68m
  • Website: https://www.anteroresources.com

Number of Employees


Location

  • Antero Resources Corporation
  • 1615 Wynkoop Street
  • Denver
  • Colorado
  • 80202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2013
7A6DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2013

Biography

Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2019, the company had approximately 451,000 net acres in the southwestern core of the Marcellus Shale; and 91,000 net acres in the core of the Utica Shale. It also owned and operated 324 miles of gas gathering pipelines in the Marcellus Shale; 17 compressor stations in the Marcellus Shale; 110 miles of low-pressure and high-pressure gathering pipelines in the Utica Shale; 8 miles of high-pressure pipelines; and 2 compressor stations in the Utica Shale. The company had estimated proved reserves of 18.9 trillion cubic feet of natural gas equivalent, including 11.5 trillion cubic feet of natural gas; 652 million barrels of assumed recovered ethane; 540 million barrels of primarily propane, isobutane, normal butane, and natural gasoline; and 42 million barrels of oil. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:33
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.