Here's Why You Should Buy Antero Resources Stock Right Now

On Mar 21, Antero Resources Corporation (NYSE:AR) was upgraded to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

For first-quarter 2018, the Zacks Consensus Estimate for earnings per share has been revised upward from 25 cents to 35 cents over the last 60 days. The consensus mark for current-year earnings was raised to $1.29 from $1.03 over the same time period.

Antero Resources’ free cashflow for 2017 was recorded at $1.1 billion, up 337.5% from the comparable period last year, courtesy of the partial recovery in natural gas and oil pricing scenario. This reflects the company’s generated sufficient operating cashflow in the preceding year for funding its capital spending.

Last month, Antero Resources reported an increase in total net proved reserves, which by the company’s estimate, grew 12% through 2017 to 17.3 Tcfe (trillion cubic feet equivalent), having entailed higher future liquid and gas production.

During 2017, the upstream energy player enhanced daily production by 22% to 2.3 Bcfe/D (billion cubic feet equivalent). Moreover, the company projects a rise in its net daily output to 2.7 Bcfe/D through 2018. We also appreciate Antero Resources’ sturdy balance sheet. Its total debt to capitalization ratio stands at 35.1%, lower than the industry’s 46.8%.

The company’s increased expected production will likely be supported by its strong grip over the prospective Marcellus and Utica Shale plays. In the Utica Shale, Antero Resources’ footing spreads across 137,000 net acres while the company’s Marcellus footprint covers 486,000 net acres.

Moreover, Antero Resources’ pricing chart looks impressive. Year to date, shares of the company have outperformed the industry. The stock has gained 3.6% against the industry’s 9.3% decline.

Other Stocks to Consider

Other Zacks #1 Ranked players in the energy space include W&T Offshore, Inc. (NYSE:WTI) , Pioneer Natural Resources Company (NYSE:PXD) and Concho Resources Inc. (NYSE:CXO) . You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Houston, TX, W&T Offshore is primarily an upstream energy player. The company is expected to witness year-over-year earnings growth of 3.6% in 2018.

Irving, TX-based Pioneer Natural Resources is an upstream energy firm. The company has an average positive surprise of 66.9% for the last four quarters.

Headquartered in Midland, TX, Concho is also an upstream energy stock. The company will likely see year-over-year earnings growth of 73.2% in 2018.

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