Antero latest natural gas driller to cut spending, activity as prices collapse (NYSE:AR)

Antero Sources (NYSE:AR) ended +10.9% in Thursday’s buying and selling to its finest shut to date this 12 months after reporting higher than anticipated This fall earnings and saying it plans to chop its 2024 drilling and completion capital funds by 26% to $650M-$700M.

The corporate mentioned it’s reducing the variety of rigs in operation to 2 from three, and dropping certainly one of its two completion crews.

It’s “good to see operators clearly lay out plans to gradual D&C [drilling and completion] capital at present gasoline costs,” and the market ought to view Antero’s (AR) full-year plan as “a welcome slowdown in spend and manufacturing,” TPH & Co. analyst Jake Roberts mentioned in response.

Earlier this week, prime pure gasoline producer EQT (NYSE:EQT) trimmed its FY 2024 manufacturing steering vary by ~50B cfe from its current outlook to 2.2T-2.3T cfe, which it mentioned contains some flexibility to curtail volumes if costs stay weak; output totaled 2.016T cfe in 2023.

“The market is asking for not solely manufacturing curtailments, but additionally exercise reductions,” CFO Jeremy Knop mentioned on EQT’s (EQT) post-earnings convention name.

Additionally, Comstock Sources (CRK) mentioned this week it should lower the variety of rigs in operation from seven to 5 and droop its dividend till gasoline costs rise sufficiently.

U.S. pure gasoline costs have crashed to three-and-a-half 12 months lows, with the front-month contract down 24% up to now eight days to settle Thursday at $1.581/MMBtu.

“If drillers proceed to announce declining manufacturing steering and climate stabilizes… pure gasoline could quickly type a short-term backside with an overdue aid rally attainable,” vitality consulting agency EBW Analytics Group mentioned.

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