Antero Resources Files for Oil and Gas IPO, Up to $1 Billion in Stock

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Antero Resources Corporation might not be a household name, but an IPO filing for up to $1 billion may turn some heads. The company is an independent oil and gas player in the Appalachian Basin. No formal terms of the IPO have been proposed but it intends to list under the “AR” ticker on the New York Stock Exchange.

The company shows that it is in the “exploitation, development and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania.” Underwriters are listed as Barclays, Citigroup, J.P. Morgan, Credit Suisse, Jefferies, and Wells Fargo.

At the end of 2012 its estimated aggregate proved, probable and possible reserves were 26.1 Tcfe, and its 4.9 Tcfe of proved reserves were 21% proved developed and 75% natural gas. Its drilling inventory consisted of 4,923 identified potential horizontal well locations and 79% of those are called liquids-rich drilling opportunities.

Its plan to develop shareholder value is via its portfolio of repeatable, low cost, liquids-rich drilling opportunities in two of the top North American shale plays. Antero holds about 317,000 net acres in the southwestern core of the Marcellus Shale and roughly 94,000 net acres in the core of the Utica Shale. The company also projected that about 194,000 net acres of its Marcellus Shale leasehold are prospective for the slightly shallower Upper Devonian Shale.

The company said, “Our net daily production in the first quarter of 2013 averaged 383 MMcfe/d, including 2,392 Bbls/d of NGLs and oil. Further, our estimated average net daily production for the month of May 2013 was 461 MMcfe/d, including 4,114 Bbls/d of NGLs and oil. We grew proved reserves at a compounded annual growth rate of 96% from 2006 to 2012, despite the 2012 divestiture of our Arkoma and Piceance Basin properties. Additionally, during 2012, we increased our Appalachian proved reserves by 73% to 4.9 Tcfe at year end.”

Antero’s 2013 capital budget is listed as $1.95 billion, including $1.20 billion for drilling and completion in its operated drilling in liquids-rich gas areas. As of March 31, 2013, Antero had spent approximately $548 million of that 2013 capital budget. Below is a current image showing its footprint of shale plays.

Antero image