Welcome!

News Feed Item

Antero Resources Announces 2014 Capital Budget and Guidance

DENVER, Jan. 29, 2014 /PRNewswire/ --

  • Capital budget for 2014 is $2.6 billion including $1.8 billion for drilling and completion, $600 million for expanding midstream facilities and $200 million for core leasehold acreage acquisitions
  • Net daily production for 2014 is projected to average 925 to 975 MMcfe/d, a 75% to 85% increase over estimated 2013 average net daily production
  • Net daily liquids production for 2014 is projected to average 24,000 to 26,000 Bbl/d (16% liquids)
  • Plan to operate an average of 18 drilling rigs between the Marcellus and Utica Shales in 2014

(Logo: http://photos.prnewswire.com/prnh/20131101/LA09101LOGO)

Antero Resources (NYSE: AR) ("Antero" or the "Company") today announced that it expects to invest approximately $2.6 billion in 2014 for drilling and completion, midstream and leasehold activities.  The Company expects its average 2014 production to grow organically by 75% to 85% over estimated 2013 average net daily production and is guiding to an average 2014 net production range of 925 to 975 MMcfe/d.

2014 Capital Budget

Antero's capital budget for 2014 is $2.6 billion and includes $1.8 billion for drilling and completion, $600 million for the expansion of midstream facilities, including $200 million for fresh water distribution infrastructure, and $200 million for core leasehold acreage acquisitions. 

All of the $1.8 billion drilling and completion budget represents Antero-operated drilling, with virtually all allocated to drilling liquids-rich horizontal locations utilizing shorter stage length completions.  Approximately 75% of the drilling and completion budget is allocated to the Marcellus Shale and the remaining 25% is allocated to the Utica Shale.  During 2014, Antero plans to operate an average of 14 drilling rigs in the Marcellus Shale, including three intermediate rigs that drill the vertical section of some horizontal wells to kick-off point, and 4 drilling rigs in the Utica Shale.  Antero expects to spud 144 horizontal wells in the Marcellus Shale with an average lateral length of 7,700 feet and 49 horizontal wells in the Utica Shale with an average lateral length of 7,300 feet.   The Company plans to complete 140 wells in the Marcellus Shale and 41 wells in the Utica Shale in 2014.

Antero has deep Utica rights on approximately 126,000 net acres of its West Virginia Marcellus acreage position and expects to drill and complete an exploratory Utica Shale dry gas well in the second half of 2014.  Antero also plans to drill two three-well density pilots in the liquids-rich Utica Shale in Ohio with one using a 500 foot interlateral distance and the other using a 750 foot interlateral distance.  Antero drilled and completed a 500 foot interlateral distance pilot in the liquids-rich Utica in 2013 with encouraging results to date.  Antero's estimated Utica reserves and identified drilling locations are currently booked using 1,000 foot interlateral distance between horizontal laterals.  A series of successful increased density pilots could result in a material increase in estimated reserves and identified drilling locations on all or a portion of Antero's Utica Shale acreage.

The 2014 midstream budget includes an additional 100 miles and 43 miles, respectively, of low-pressure and high-pressure gathering pipelines in the Marcellus and Utica Shale.  The budget also includes the addition or expansion of five compressor stations in the Marcellus Shale with 305 MMcf/d of additional compression capacity.  Further, the midstream budget includes 73 miles of permanent pipeline for Antero's fresh water distribution system.  The midstream budget assumes the completion of an initial public offering of a master limited partnership ("MLP") owning substantially all of Antero's midstream assets during 2014.

In 2014, Antero plans to continue consolidating acreage in the core of the southwestern Marcellus liquids-rich play and the core of the Utica liquids-rich play in southern Ohio.  The 2014 capital budget includes $200 million for acreage additions.

The following is a comparison of the 2013 capital budget to the 2014 capital budget. 

Budget Comparison

2013


2014

Drilling & Completion ($MM)

$1,550


$1,800

Midstream ($MM)

$650


$600

Land ($MM)

$450


$200

Total

$2,650


$2,600





Average Drilling Rigs

Wells Spud

Wells Completed

16

157

114


18

193

181

Low-Pressure Gathering Line Additions (Miles)

High-Pressure Gathering Line Additions (Miles)

54

60


100

43

Compression Capacity Additions (MMcf/d)

85


305

Permanent Water Pipeline Additions (Miles)

97


73

 

The capital budget is expected to be funded through internally generated operating cash flow and available borrowing capacity under Antero's bank credit facility, as well as the anticipated proceeds from an initial public offering of an MLP owning substantially all of the Company's midstream assets. 

2014 Guidance

Assuming the execution of the $2.6 billion capital plan discussed above, the Company is using the following key assumptions in its projections for 2014:

2014 Guidance


Total Net Production

925 – 975 MMcfe/d

  Net Natural Gas Production

780 – 820 MMcf/d

  Net Liquids Production

24,000 – 26,000 Bbl/d

Cash Production Expense(1)

$1.40 – $1.50/Mcfe

G&A

$0.25 – $0.30/Mcfe

Natural gas realized price premium to NYMEX(2)

$0.00 – $0.10/Mcf

Natural gas liquids realized price

50% to 52% of WTI

Oil realized price differential to NYMEX

$(10.00) - $(12.00)/Bbl

(1)       Includes lease operating expenses, gathering, compression and transportation expenses and production taxes.

(2)       Antero's processed tailgate and unprocessed dry gas production is greater than 1000 Btu on average.

 

Antero's 2014 total net production, including liquids, is expected to average in a range of 925 to 975 MMcfe/d which would represent a year over year increase of 75% to 85% compared to our estimated 2013 average net production.  Net liquids production is expected to increase to an average of 24,000 to 26,000 Bbl/d in 2014, primarily driven by increasing development of liquids-rich areas of the southwestern core in the Marcellus Shale and a full year of development in the liquids-rich core area of the Utica Shale in southern Ohio. 

Antero Resources is an independent oil and natural gas company engaged in the acquisition, development and production of unconventional oil and liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. Our website is located at www.anteroresources.com.

This release includes "forward-looking statements". Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Antero's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although Antero believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under the heading "Risk Factors" in our Final Prospectus dated October 9, 2013 on file with the Securities and Exchange Commission (File No. 333-189284).

SOURCE Antero Resources

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"There is a huge interest in Kubernetes. People are now starting to use Kubernetes and implement it," stated Sebastian Scheele, co-founder of Loodse, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Providing secure, mobile access to sensitive data sets is a critical element in realizing the full potential of cloud computing. However, large data caches remain inaccessible to edge devices for reasons of security, size, format or limited viewing capabilities. Medical imaging, computer aided design and seismic interpretation are just a few examples of industries facing this challenge. Rather than fighting for incremental gains by pulling these datasets to edge devices, we need to embrace the i...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walked through how Octob...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...