Antero plans 40pc 2015 budget cut

OREANDA-NEWS. Antero Resources will reduce its annual capital budget for 2015 by 40pc while also targeting production growth of 40pc.

The Appalachian producer is targeting a \$1.8bn budget for this year, slashing the previous spending of \$3.05bn by 41pc. Production objectives are on the rise, however, with net daily output planned to average 1.4 Bcfe/d, up from the 2014 level of 1 Bcfe/d. Liquids production is set to average 37,000 b/d, or 16pc of total output.

Of total liquids production, 89pc will comprise of NGLs. The figure assumes continued ethane rejection to be sold as gas at Btu value. Antero's NGL realized price as a percentage of WTI stands between 48-52pc.

Despite the projected increase in Antero's production, drilling rig operations and well completions will diminish. The prior year's average of 21 drilling rigs in the Marcellus and Utica shale formations will be cut by 33pc to 14 rigs, while 130 horizontal well completions are expected, a reduction of 49 from 2014.