On Thursday, Jefferies maintained a Buy rating on Antero Resources (NYSE:AR) stock and increased the shares target to $41 from the previous $40.
The firm forecasts the company's second-quarter 2024 earnings before interest, taxes, depreciation, amortization (EBITDA), and cash flow per share (CFPS) to be around $155 million and $0.45, respectively, which is closely aligned with consensus estimates.
Antero Resources is expected to have been affected by lower natural gas prices during the quarter, but production levels are predicted to remain strong at approximately 3.39 billion cubic feet equivalent per day (bcfepd). The capital expenditures, including land spending for the quarter, are estimated at $190 million with a projected free cash flow (FCF) outflow of $46 million.
The company's recent credit rating upgrade and its focus on the second half of 2024 are likely to keep investor interest alive. Jefferies suggests that operational performance, the implications of the credit rating improvement, free cash flow prioritization, and the macroeconomic outlook will continue to be key areas of focus for Antero Resources moving forward.
The new $41 price target reflects Jefferies' updated estimates, which are based on market conditions. The firm's stance indicates confidence in Antero Resources' strategic direction and financial health, despite the challenges faced in the second quarter due to fluctuating natural gas prices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.