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Antero Resources Corp T.AR


Primary Symbol: AR

Antero Resources Corporation is an independent natural gas and natural gas liquids (NGLs) company. The Company is engaged in the acquisition, development and production of unconventional properties located in the Appalachian Basin in West Virginia and Ohio. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. The Company operates through three segments: the exploration, development, and production of natural gas, NGLs and oil; marketing of excess firm transportation capacity; and midstream services through its equity method investment in Antero Midstream Corporation (Antero Midstream). The Company holds approximately 515,000 net acres of natural gas, NGLs and oil properties located in the Appalachian Basin, primarily in West Virginia and Ohio.


NYSE:AR - Post by User

Comment by ARGONAUTGOLDon Feb 12, 2024 11:39am
110 Views
Post# 35875578

RE:I Think it's Better to Tell the Whole Story

RE:I Think it's Better to Tell the Whole Story
Psych01, your posts are always somewhat repetitive. It might be more insightful to consider the forward contract from the viewpoint that gold prices may not hit record highs, but could instead fall below the 10-year average of US$1.5k per ounce. This scenario would make the contracts beneficial for the company. The 10-year average gold price of $1.5k per ounce is considerably lower than the average price of the forward contracts. These contracts span 5 years of production. Given that the company produced 200k ounces in 2023 and the remaining balance of forward contracts by the end of 2023 is projected to be 350k ounces, if they sustain a production rate of 200k ounces per year for the subsequent 4 years, that would amount to 800k ounces. This suggests that about ~40% of the production has a realized sale price exceeding Magino’s All-In Sustaining Cost (AISC). Moreover, with 450k ounces sold at $2k per ounce, and 350k ounces sold at $1.83k per ounce, the average realized sale price comes to $1.92k per ounce. As this simple example illustrates, the forward contracts don’t significantly affect the realized sale price. The most pragmatic way to view the forward contracts is that they will bolster cash flows if gold prices fall below $1.83k per ounce.
 
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