CM - Analyst Notes - June 26, 2020Antero Resources Corp. (NYSE: AR; $3.77-June 19; Hold; PT-$4) Announced a $402MM headline value ($300MM upfront, ~$102MM contingency payments over next 12mo) transaction for a weighted average ~1.0-1.5% ORRI across AR’s asset base (1.25% ORRI in existing producing wells, 3.75% ORRI in existing acreage in wells completed over next three years; after a 13% IRR and 1.5x cash-on-cash return to buyer, AR will have an 85% reversionary interest); headline valuation ~in-line with TPHe...
Jun 26, 2020
ES - Peregrine Energy Partners Highlights - June 2, 2020Peregrine Energy Partners has entered an agreement to acquire producing natural gas royalties from undisclosed sellers. Operated by Range Resources, Antero Resources and EQT Corp., the assets lie in Washington County, Pennsylvania, and Tyler and Richie counties, West...
Jun 02, 2020
CM - Antero’s borrowing base at $2.85B; spending set to fall 41% - May 2020Lenders for Antero Resources Corp. increased the company’s borrowing base by $350 million to $2.85 billion, the company said in its Q1 results. Lender commitments were reaffirmed at $2.64 billion, and the next borrowing base redetermination will be in October. The facility will mature Oct. 26, 2022, or 91 days prior to the earliest stated redemption date of any series of the company’s senior notes then outstanding. At the end of Q1, Antero had $882 million drawn on the facility and was paying a...
May 15, 2020
MI - Antero cuts capex again, expects larger ROIC in 2020 - May 2020Antero Midstream Corp. further reduced its 2020 capital budget to $215- 240 million from an earlier 15% cut off its original $300-325 million spending range. The capex budget is now 65% off 2019 actual spending, and, as a result, free cash flow is expected to increase by 9% to $420-250 million. Antero also expects to report a $140-170 million annual net loss versus previous guidance of $345-385 million in profits as it writes down noncash goodwill impairments. EBITDA will be in the $800-830...
May 06, 2020
A&D - People & Companies - May 1, 2020Amplify Energy president and CEO Ken Mariani has retired. Current CFO Martyn Willsher has been appointed interim CEO. On behalf of the board, Chris Hamm will serve as lead director. Antero Resources appointed Jacqueline C. Mutschler to its board as a Class II director, increasing the size of the board to nine directors, seven of whom are independent. Mutschler has an extensive background in the oil and gas industry, previously serving as SVP and head of E&P technology at BP from 2006 to...
May 01, 2020
PS - People & Companies - April 22, 2020Amazing Energy Oil & Gas Co. named Benjamin Jacobson III CFO, effective Feb. 13, replacing Marty Dobbins, who resigned. Prior to joining Amazing Energy, Jacobson co-founded ICP, LLC, which invests in E&P companies. Amplify Energy president and CEO Ken Mariani has retired. Current CFO Martyn Willsher has been appointed interim CEO. On behalf of the board, Chris Hamm will serve as lead director. Antero Resources appointed Jacqueline C. Mutschler to its board as a Class II...
Apr 22, 2020
MI - People & Companies - April 17, 2020Adams Resources & Energy, Inc. named Greg L. Mills president of its GulfMark Energy, Inc. subsidiary, replacing Adams CEO and president Kevin J. Roycraft, who had held the GulfMark position on an interim basis. Altus Midstream Co. elected CEO and president Clay Bretches to the additional role of chairman of the board, replacing W. Mark Meyer, who also resigned as a director. The company elected Stephen Noe to fill the vacant director seat. Antero Midstream Corp. elected...
Apr 17, 2020
CM - People & Companies - April 3, 2020Amazing Energy Oil and Gas Co. named Benjamin Jacobson III CFO effective Feb. 13, succeeding Marty Dobbins, who resigned. Prior to joining Amazing Energy, Jacobson co-founded ICP, LLC, which invests in E&P companies. Apache Corp. appointed Clay Bretches EVP, Operations, a promotion from SVP Operations. He will also continue to serve as CEO and a director of Apache subsidiary Altus Midstream Co., which he has done for over a year. Basic Energy Services, Inc. has reconfigured its...
Apr 03, 2020
PS - People & Companies - March 30, 2020ConocoPhillips appointed David T. Seaton and Al Walker to its board. Seaton was CEO of Fluor Corp. from 2011 to 2019 and chairman from 2012 to 2019. Walker was president, CEO and director of Anadarko Petroleum from 2012 to 2019 and chairman from 2013 to 2019. Extraction Oil & Gas CEO and chairman Mark Erickson is leaving the company. Matt Owens has been appointed permanent CEO. Owen serves as president of the company and has been acting CEO of the company since last April. He...
Mar 30, 2020
A&D - People & Companies - March 19, 2020Apache named Clay Bretches operations EVP and David Pursell development EVP. The leader of exploration will be named following the completion of an ongoing search. Bretches will continue to serve in his role as CEO and president of Apache subsidiary Altus Midstream. All three will report directly to Apache president and CEO John J. Christmann IV. Brigham Minerals appointed a new independent director, Carrie Clark, to the board, effective immediately. She will serve on the audit...
Mar 19, 2020
PS - Analyst Takes - March 9, 2020Antero Resources (AR; $1.77-Feb. 12; Hold; PT-$2) Q4 a wash, with production miss (3,185mmcfe/d -5%/-4% vs. TPHe/Street 3,340/3,332 and 151mboepd NGLs -11%/-10% vs. TPHe/Street 170/168, attributed to TIL timing) offset by capex beat ($300MM -7%/-9% below TPHe/Street $322MM/$328MM). Capex beat driven by better-than-expected well costs (Q4 actuals $860/ft vs. target $895/ft) that are flowing through to a down-tick in FY’20 spending plans (previous $1.15-1.20B D&C narrowed to low-end,...
Mar 09, 2020
A&D - People & Companies - February 2020Antero Resources announced that director Joyce E. McConnell will resign effective March 1, reducing its board to eight members. Berry Petroleum named Danielle Hunter as EVP, general counsel and corporate secretary on Jan. 28. Prior to joining Berry, Hunter held those roles at C&J Energy Services. Camber Energy, which is combining with Viking Energy Group, announced that James A. Doris will serve as president and CEO of the new company once the transaction becomes effective....
Feb 27, 2020
CM - Antero Midstream issues buyback & 2020 capex guidance - December 2019Antero Midstream Corp. said it would buy $100 million of its shares from parent Antero Resources, a move that would save it more than $20 million a year in dividends based on the current payout rate of $1.23. Including the $25 million worth of shares bought back on the open market in Q3, Antero Midstream will have repurchased about $125 million of its common stock this year. The company said it will have $175 million remaining on its buyback plan. Also, the company will spend 22%...
Dec 13, 2019
CM - Analyst Notes - December 13, 2019Antero Resources Corp. (NYSE: AR, $2.57-Dec. 9; Hold; PT-$4) AR announced its restructured deal with Antero Midstream this morning, as well as an outline of how it will deal with the ’21 and ’22 bonds. We believe that a royalty sale is the most likely candidate for the de-levering, and we estimate that a 1% ORRI would be worth ~$400mm (i.e. 2.5% to take out ‘21s). Look for the company to be able to handle a $100-300mm LoC bump mainly via surety bonds. AR also seems to be making strides...
Dec 13, 2019
A&D - News Briefs - June 12, 2020CH4 Energy, backed by NGP Energy Capital Management, is shopping operated Delaware Basin assets in Reeves County, Texas. The offering covers 1,317 net acres (1,328 gross), which include two undeveloped sections with strong offset production and three-year lease terms. There are 22 operated wells, 16 shallow producers and three injector and disposal wells; and three productive horizons, Third Bone Spring, Wolfcamp A and Wolfcamp B—plus emerging First Bone Spring potential being tested in the...
Jun 12, 2020