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What Boosted Antero’s Cash Flow So High This Year?

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Antero Resources’ cash flow

Antero Resources (AR) reported CFO (cash flow from operations) of ~$1.7 billion in the first nine months of 2017 (ended September 30), compared with ~$905.7 million in the first nine months of 2016 (ended September 30, 2016).

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AR’s 3Q17 cash flow from operations

Antero reported 3Q17 CFO of $1.04 billion, compared with its CFO of ~$327 million in 3Q16. As you can see in the chart above, AR’s 3Q17 cash flow increased significantly on a YoY (year-over-year) basis as well as on a sequential basis. This was primarily due to $750 million in proceeds from the partial monetization of AR’s natural gas hedges.

AR’s net income trends

AR’s net loss in 3Q17 was $90 million, compared with its net profit of ~$268.2 million in 3Q16. Its net profit in the first nine months of 2017 came to ~$255.5 million, compared with its net loss of $296.6 million during the corresponding period of 2016.

Its net loss in 3Q17 (compared with 3Q16) was due to lower revenues in 3Q17. However, its higher revenues in the first nine months of 2017, compared with the corresponding period of 2016, supported its net profits in the during the 2017 period.

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Trends in AR’s revenues

Antero’s revenues in the first nine months of 2017 came to ~$2.6 billion, compared with ~$1.58 billion during the same period of 2016 (first nine months, ended September 30, 2016). The improvement in AR’s revenues was driven by higher production in 2017 compared with 2016. During the first nine months of 2017, its production totaled 6,661 MMcfepd (million cubic feet equivalent per day), compared with 5,395 MMcfepd during the first nine months of 2016.

What drove AR’s 2017 cash flows?

AR’s CFO in the first nine months of 2017 came in higher due to proceeds of $750 million from derivative monetizations (as we saw above) and due to higher net income in the first nine months of 2017.

Now let’s take a look at Marathon’s CFO during the first nine months of 2017.

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