Why Were Antero Resources’s 2Q16 Earnings Better Than Its Peers’?

October 1, 2016 3oliver

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By Keisha Bandz | Sep 30, 2016 3:06 pm EDT

EPS comparison: EQT, COG, NBL, and AR

In this article, we’ll look at how EQT (EQT), Cabot Oil and Gas (COG), Noble Energy (NBL), and Antero Resources (AR) fared in terms of EPS (earnings per share) in 2Q16.

Negative EPS for EQT, Noble, and Cabot

EQT, NBL, and COG reported earnings per share in 2Q16 of -$0.35, -$0.24, and -$0.07, respectively. Their comparable earnings in 2Q15 were positive, at $0.01, $0.26, and $0.03 per share, respectively.

Lower natural gas prices (UNG) weighed heavily on the upstream companies, pulling down their realized prices. In 2Q16, EQT saw a 26% fall in its realized natural gas prices compared to 2Q15. NBL saw a 6% decrease in its realized natural gas prices compared to 2Q15. Meanwhile, COG saw a fall of 24% in its realized natural gas prices in 2Q16 versus 2Q15.

EQT’s 2Q16 realized natural gas prices fell the most, which is likely the reason why its 2Q16 EPS and revenue also fell the most when compared to its peers. We looked at EQT’s 2Q16 revenue in Part 1 of this series.

Antero Resources reported positive EPS

For 2Q16, Antero Resources (AR) reported positive earnings per share of $0.14. Comparable earnings in 2Q15 were $0.06 per share. AR’s revenue growth was not only positive, but it was also double what it posted in 2Q15.

AR’s realized natural gas prices for 2Q16 were 12% higher than 2Q15, which likely explains the growth in its EPS and revenue in 2Q16 versus 2Q15.

Combined, all these companies comprise ~9% of the iShares US Oil & Gas Exploration & Production ETF (IEO).