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.
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.
Zacks’ top picks for leveraging artificial intelligence
By 2021, this world-changing technology is expected to generate $ 327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban has said AI will create “the world’s first trillionaires.” Zacks’ Urgent Special Report Reveals 3 AI Choices Investors Need To Know Today.
See 3 artificial intelligence stocks with extreme upside potential >>
Click to get this free report
Schlumberger Limited (SLB): Free Inventory Analysis Report
Cheniere Energy, Inc. (LNG): Free Inventory Analysis Report
Antero Resources Corporation (AR): Free Stock Analysis Report
Extraction Oil & Gas, Inc. (XOG): Free Inventory Analysis Report
To read this article on Zacks.com, click here.
Zacks investment research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.