Antero Resources’ (AR) 2018 capex (capital expenditure) is $1.45 billion. This total includes $1.3 billion for drilling and completion expenses, $25 million for leasehold maintenance expenses, and $125 million for discretionary leasehold expenditures.
In a press release that followed its Analyst Day Conference on January 17, the company noted that its drilling and completion budget has remained flat for three consecutive years. About 80% of the drilling and completion budget for 2018 is being allocated to the Marcellus Shale, while the remaining 20% is allocated to the Utica Shale.
The 2018 capital budget excludes Antero Midstream Partners’ (AM) $650 million capital budget.
In the press release, AR management commented, “Antero is budgeting to continue to consolidate acreage for development plan purposes in the core of its Marcellus and Ohio Utica leasehold positions in 2018 along with extending leases on acreage that is planned to be developed over the next several years.”
AR’s guidance beyond 2018
Antero expects to keep its consolidated drilling and completion capital budget flat at $1.3 billion annually through 2020. The cumulative free cash flow is expected to be $1.6 billion through the five-year period ending 2022, based on strip pricing and $2.8 billion based on flat $60 WTI oil prices and $2.85 natural gas prices.