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Antero Resources (AR) Q4 Earnings: What's in the Cards?

Zacks Equity Research

Antero Resources Corporation AR is expected to report fourth-quarter 2018 results on Feb 13.

The Denver-based company’s earnings surprise history is unimpressive. The company missed the Zacks Consensus Estimate in two of the trailing four quarters, reporting average negative earnings surprise of 14.8%.

Let’s see how things are shaping up for this announcement.
 

Antero Resources Corporation Price and EPS Surprise

 

Antero Resources Corporation Price and EPS Surprise | Antero Resources Corporation Quote

 

Which Way are Estimates Treading?

Let’s look at the estimate revisions to get a clear picture of what analysts are thinking about the company before earnings release.

The Zacks Consensus Estimate of 39 cents for fourth-quarter earnings has seen no upward and downward revision by firms in the past seven days. The figure reflects year-over-year surge of 69.6%.

The Zacks Consensus Estimate for revenues is pegged at $1.26 billion for the impending quarter, indicating a rise of 37.5% year over year.

Earnings Whispers

Our proven model does not show that Antero Resources will beat estimates in the to-be-reported quarter. That is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to be at the consensus estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.. That is not the case here as you will see below.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -6.28%. This is because the Most Accurate Estimate is at 37 cents and the Zacks Consensus Estimate is pegged at 39 cents.

Zacks Rank: Currently, Antero Resources carries a Zacks Rank #3 (Hold).

Please note that stocks with a Zacks Ranks #1, 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.  

Factors at Play

Per the Zacks Consensus Estimate, average daily net production for the fourth quarter is pegged at 3,028 million cubic feet equivalent per day (MMcfe/d), reflecting a rise from 2,718 MMcfe/d in the preceding quarter and 2,347 MMcfe/d in the year-ago quarter. The expected upside can be attributed to the higher level of activities.

The Zacks Consensus Estimate for oil production is pegged at 11,727 barrels per day, indicating a rise from 10,632 barrels per day in the last reported quarter and 6,207 barrels per day in the prior-year quarter.

Moreover, the Zacks Consensus Estimate for natural gas volumes is at 2,152 billion MMcfe/d, indicating a rise from 1,942 MMcfe/d in the preceding quarter and 1,702 MMcfe/d in the year-ago quarter.  

Additionally, the Zacks Consensus Estimate for average oil price realizations after the impact of hedging is at $56 per barrel, showing a fall from $61 per barrel in the preceding quarter but a rise from $49.37 in the year-ago quarter.  

The Zacks Consensus Estimate for average natural gas price realizations after the impact of hedging is at $3.58 per Mcf, showing a rise from $3.51 per Mcf in the preceding quarter but a decline from $3.67 in the year-ago quarter.  

Other Stocks to Consider

Here are some other companies from the energy space that also have the right combination of elements to post an earnings beat.

Headquartered in Houston, TX, Sunoco L.P SUN operates as a wholesale fuel distributor. The company has an Earnings ESP of +26.9% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ensco plc ESV is a leading supplier of offshore contract drilling services to the oil and gas industry. The company has an Earnings ESP of +2.6% and carries a Zacks Rank #3.

Based in Houston, TX, Southwestern Energy Company SWN engages in the exploration, development and production of natural gas and crude oil in the United States. The company has an Earnings ESP of +1% and holds a Zacks Rank #3.

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