On Jan. 20, Antero Resources Corp. (NYSE: AR) detailed its 2015 capital budget and production guidance.
The initial capital budget is $1.8 billion, down 41% from 2014’s $3.05 billion capital budget.
The drilling and completions budget is $1.6 billion, down 33% from 2014’s $2.4 billion drilling and completions budget.
Regarding drilling, about nine rigs will work in the Marcellus and five will work in the Utica, Antero added, noting that about 80 horizontal wells will be completed in the Marcellus and about 50 will be completed in the Utica. Of the total drilling and completions budget, 60% is allocated to the Marcellus and 40% is allocated to the Utica.
Core Marcellus and Utica acreage will be consolidated as planned, the company said, but noted that the land budget for the year was reduced to $150 million, 67% less than the $300 estimate.
The net daily production is projected to average 1.4 billion cubic feet equivalent per day (Bcfe/d), up 40% from 2014’s 1 Bcfe/d net daily production, the company said. More than 70% of the natural gas production will be hedged, and well cost reduction measures will be implemented.
Freshwater distribution infrastructure has $50 million allocated for 2015, while $150 million is allocated for core leasehold acreage acquisitions, the company said.
"Despite the challenging commodity price environment, Antero is well positioned to continue executing on our development program and achieve peer-leading growth and margins. Our ability to generate production growth of 40%, while materially reducing the 2015 drilling and completion budget, is a testament to the momentum established and efficiencies attained from having the largest development program in Appalachia," said Paul Rady, chairman and CEO.
The 2015 capital budget will be funded through operating cash flow and the credit facility’s borrowings, the company said.
Denver-based Antero Resources Corp. produces and develops domestic oil and natural gas.
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