Antero Resources (AR) gains 44.5% in 3 months: what future?

Antero Resources CorporationAR shares have jumped 44.5% in the past three months from the industry’s 11.4% gain. The stock benefited from a steady recovery in natural gas and oil prices.

It primarily produces natural gas in the Appalachian Basin and is one of the fastest growing producers in the United States. The company focuses on unconventional tanks. Thus, the rise in gas prices created a favorable market scenario for Antero Resources. Natural gas prices are currently trading at a multi-year high, well above the $ 5 threshold. The increase in consumption in Asia and Europe and the low supply of the product keep prices at a high level. Denver, CO-based Antero Resources with a market cap of $ 6 billion is enjoying the benefits of high commodity prices.

Can he keep his momentum?

The answer is yes and here’s why we think so:

With an improving economic outlook around the world, energy demand is expected to experience a sustained increase in the coming days. This creates a perfect scenario for Antero Resources’ upstream activities. The bullish outlook for natural gas prices should continue to favor the title. A cold winter this year should further boost natural gas demand and business profits.

In addition, he expects net marketing spend in the range of 8 to 10 cents per thousand cubic feet of natural gas equivalent for 2021, which indicates a decline from 12 cents and 22 cents in 2020. and 2019, respectively. Lower costs will increase the bottom line of the business.

Estimates

Zacks ‘consensus estimate for Antero Resources’ bottom line in 2021 is set at $ 1.63 per share, signaling a massive improvement from the loss of 56 cents a year ago. Additionally, the consensus estimate for 2021 revenue is $ 4.7 billion, indicating a 16.4% year-over-year increase. The company has beaten earnings estimates twice in the past four quarters and missed the other two opportunities.

Antero Resources Corporation price and BPA surprise

Antero Resources Corporation price-eps-surprise | Antero Resources Corporation quote

Zacks ranking and actions to take into account

The company currently has a Zacks Rank # 3 (Hold). Some of the top-ranked stocks in the energy sector include Oil and Gas Extraction, Inc. XOG, Cheniere Energy, Inc. LNG and Schlumberger Limited SLB, each carrying a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Zacks’ consensus estimate for oil and gas extraction for 2021 is set at $ 13.07 per share, indicating a huge improvement over last year’s loss of $ 2.54.

Cheniere Energy’s net income for the third quarter of 2021 is expected to grow 239.1% year-over-year.

Schlumberger’s net income for 2021 is expected to increase 83.8% year-over-year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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