Antero Resources Corp., Denver, said it plans to spend $1.6 billion during 2015 for drilling and completion activities in the Marcellus and Utica shale plays, marking a 36% reduction as compared with 2014 drilling and completion expenditures.
The company allocated $150 million for core leasehold acreage acquisitions and $50 million for freshwater distribution infrastructure.
By area, Antero said 59% of its total $1.8 billion budget will go to the Marcellus and 41% will go to the Utica. Last year, Antero allocated 71% of its budget to the Marcellus and 29% to the Utica. Company executives noted 94% of anticipated production is hedged at $4.42/MMbtu.
“Large, low-cost core Marcellus and Utica natural gas drilling inventory with associated liquids generates attractive returns supported by long-term natural gas hedges,” Paul M. Rady, Antero chairman and chief executive officer, said during a Feb. 26 webinar presentation to investors and analysts.
Antero has 179,000 net acres in a Utica deep, dry gas window in West Virginia and Pennsylvania, Rady said, adding he was optimistic about its potential. In addition, Antero has more than 395,000 net acres in northern West Virginia and southwestern Pennsylvania, all in the southwestern core of the Marcellus shale.
The 2015 budget outlined for Antero Resources excluded Antero Midstream Partners LP’s $425-450 million capital budget relating to high- and low-pressure gathering pipelines and compressor stations.
As of Dec. 31, 2014, Antero owned 69.7% limited partner interest in Antero Midstream. Antero Midstream’s initial public offering that closed on Nov. 10, 2014.
Contact Paula Dittrick at [email protected].
*Paula Dittrick is editor of OGJ’s Unconventional Oil & Gas Report
