Antero Resources Corporation (NYSE: AR)
Antero Resources Corporation (AR), an independent oil and natural gas company yesterday saw its stock rise after Chapter IV investors stated that the company can benefit from a merger with EQT Corp. Representatives from Antero and EQT could not be reached for comments.
Chapter IV’S Investors Comments
Investor’s comments on a possible merger of EQT with either Denver based company Antero Resources Corp. (AR) or Forth Worth based Range Resources Corp. (RRC) “Like EQT, neither of those companies needs to acquire, sell or merge with another entity. At the same time, we recognize that these two companies’ geographic footprints and their extensive low-cost, high-return resource bases uniquely position each of them to be an attractive potential merger partner for EQT,” BizJournal
AR Technical Analysis
AR opened trading yesterday at $23.89 which was up from the previous day’s trading close of $23.65. AR closed trading yesterday at $23.68 and spiked up after market to $24.79, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see that the last time AR traded above these levels we have to go back to December 15th, 2016 when it traded at $25.42. Taking a closer look at the daily chart we can see that before the spike up AR had been in an overall downward trend dating back to December 8th when it traded at $26.91. AR has a float of 180.04 million shares and traded 1.79 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see AR open trading on Wednesday above $24.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up. Check out Ross over at Warrior Trading where he is applying his Day Trading Strategies to these types of stocks.
Company Profile
Antero Resources Corporation, incorporated on June 20, 2002, is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company’s segments include the exploration, development and production of natural gas, NGLs, and oil; gathering and compression; water handling and treatment, and marketing of excess firm transportation capacity. The Company holds approximately 569,000 net acres of oil and gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania.
The Company’s estimated proved reserves are approximately 13.2 trillion cubic feet equivalents (Tcfe), consisting of over 9.5 trillion cubic feet (Tcf) of natural gas, approximately 587 million barrels (MMBbl) of NGLs and over 26 MMBbl of oil. Proved developed reserves are over 5.8 Tcfe. The Company has over 710 gross (666 net) producing wells, and holds working interest in the Marcellus Shale. This well count includes approximately 440 gross (430 net) horizontal wells, and over 270 gross (240 net) vertical wells. In the Utica Shale, the Company has over 110 gross (approximately 100 net) producing horizontal wells. Its wells are gas wells, many of which also produce oil, condensate and NGLs.
The Company’s exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream Partners LP (Antero Midstream), as well as by third-party gathering, compression, processing and transportation arrangements. The Company’s subsidiary, Antero Midstream, owns and operates over 180 miles of gas gathering pipelines in the Marcellus Shale, and approximately 110 miles of low pressure, high pressure and condensate pipelines in the Utica Shale.
The Company owns over two independent fresh water distribution systems that distribute fresh water from the Ohio River and several regional water sources for well completion operations in the Marcellus and Utica Shales. These systems consist of permanent buried pipelines, movable surface pipelines and fresh water storage facilitates, as well as pumping stations to transport the fresh water throughout the pipeline networks. The Company has the ability to store a total of approximately 4.9 million barrels of fresh water in over 40 impoundments. Reuters
