Intrinsic value of Antero Resources - AR

Previous Close

$14.20

  Intrinsic Value

$6.43

stock screener

  Rating & Target

str. sell

-55%

Previous close

$14.20

 
Intrinsic value

$6.43

 
Up/down potential

-55%

 
Rating

str. sell

We calculate the intrinsic value of AR stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 4.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  25.20
  23.18
  21.36
  19.73
  18.25
  16.93
  15.74
  14.66
  13.70
  12.83
  12.04
  11.34
  10.71
  10.13
  9.62
  9.16
  8.74
  8.37
  8.03
  7.73
  7.46
  7.21
  6.99
  6.79
  6.61
  6.45
  6.31
  6.17
  6.06
  5.95
Revenue, $m
  4,577
  5,638
  6,842
  8,192
  9,687
  11,327
  13,109
  15,031
  17,089
  19,281
  21,603
  24,053
  26,628
  29,327
  32,148
  35,093
  38,161
  41,354
  44,676
  48,129
  51,717
  55,446
  59,321
  63,349
  67,538
  71,894
  76,427
  81,146
  86,061
  91,183
Variable operating expenses, $m
  1,428
  1,759
  2,135
  2,556
  3,022
  3,534
  4,090
  4,690
  5,332
  6,016
  6,740
  7,505
  8,308
  9,150
  10,030
  10,949
  11,906
  12,903
  13,939
  15,016
  16,136
  17,299
  18,508
  19,765
  21,072
  22,431
  23,845
  25,318
  26,851
  28,449
Fixed operating expenses, $m
  2,273
  2,323
  2,374
  2,426
  2,480
  2,534
  2,590
  2,647
  2,705
  2,765
  2,825
  2,888
  2,951
  3,016
  3,082
  3,150
  3,220
  3,290
  3,363
  3,437
  3,512
  3,590
  3,669
  3,749
  3,832
  3,916
  4,002
  4,090
  4,180
  4,272
Total operating expenses, $m
  3,701
  4,082
  4,509
  4,982
  5,502
  6,068
  6,680
  7,337
  8,037
  8,781
  9,565
  10,393
  11,259
  12,166
  13,112
  14,099
  15,126
  16,193
  17,302
  18,453
  19,648
  20,889
  22,177
  23,514
  24,904
  26,347
  27,847
  29,408
  31,031
  32,721
Operating income, $m
  876
  1,556
  2,333
  3,210
  4,185
  5,259
  6,429
  7,694
  9,052
  10,501
  12,038
  13,661
  15,369
  17,161
  19,035
  20,993
  23,035
  25,161
  27,374
  29,676
  32,069
  34,557
  37,144
  39,835
  42,634
  45,547
  48,579
  51,738
  55,030
  58,462
EBITDA, $m
  1,477
  2,296
  3,232
  4,286
  5,457
  6,747
  8,151
  9,669
  11,297
  13,034
  14,876
  16,821
  18,867
  21,013
  23,259
  25,603
  28,048
  30,594
  33,243
  35,998
  38,863
  41,841
  44,937
  48,157
  51,506
  54,991
  58,620
  62,398
  66,335
  70,440
Interest expense (income), $m
  239
  266
  363
  476
  605
  749
  909
  1,084
  1,274
  1,480
  1,699
  1,933
  2,181
  2,443
  2,718
  3,006
  3,308
  3,622
  3,950
  4,291
  4,645
  5,014
  5,397
  5,796
  6,209
  6,640
  7,087
  7,552
  8,036
  8,540
  9,065
Earnings before tax, $m
  610
  1,193
  1,857
  2,605
  3,436
  4,350
  5,345
  6,420
  7,573
  8,801
  10,104
  11,479
  12,926
  14,443
  16,029
  17,686
  19,413
  21,212
  23,083
  25,030
  27,055
  29,160
  31,349
  33,626
  35,994
  38,460
  41,027
  43,702
  46,490
  49,397
Tax expense, $m
  165
  322
  501
  703
  928
  1,174
  1,443
  1,733
  2,045
  2,376
  2,728
  3,099
  3,490
  3,899
  4,328
  4,775
  5,242
  5,727
  6,233
  6,758
  7,305
  7,873
  8,464
  9,079
  9,719
  10,384
  11,077
  11,800
  12,552
  13,337
Net income, $m
  446
  871
  1,355
  1,901
  2,508
  3,175
  3,902
  4,687
  5,528
  6,425
  7,376
  8,380
  9,436
  10,543
  11,701
  12,911
  14,171
  15,485
  16,851
  18,272
  19,750
  21,287
  22,885
  24,547
  26,276
  28,076
  29,950
  31,902
  33,937
  36,060

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  19,070
  23,490
  28,508
  34,132
  40,362
  47,194
  54,620
  62,629
  71,206
  80,339
  90,014
  100,221
  110,950
  122,194
  133,950
  146,219
  159,003
  172,310
  186,149
  200,536
  215,488
  231,025
  247,172
  263,956
  281,407
  299,558
  318,445
  338,108
  358,588
  379,929
Adjusted assets (=assets-cash), $m
  19,070
  23,490
  28,508
  34,132
  40,362
  47,194
  54,620
  62,629
  71,206
  80,339
  90,014
  100,221
  110,950
  122,194
  133,950
  146,219
  159,003
  172,310
  186,149
  200,536
  215,488
  231,025
  247,172
  263,956
  281,407
  299,558
  318,445
  338,108
  358,588
  379,929
Revenue / Adjusted assets
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
  0.240
Average production assets, $m
  15,813
  19,478
  23,639
  28,302
  33,468
  39,134
  45,291
  51,932
  59,044
  66,617
  74,640
  83,103
  91,999
  101,323
  111,072
  121,245
  131,845
  142,879
  154,355
  166,285
  178,683
  191,566
  204,955
  218,872
  233,342
  248,393
  264,055
  280,359
  297,341
  315,037
Working capital, $m
  -490
  -603
  -732
  -877
  -1,036
  -1,212
  -1,403
  -1,608
  -1,829
  -2,063
  -2,312
  -2,574
  -2,849
  -3,138
  -3,440
  -3,755
  -4,083
  -4,425
  -4,780
  -5,150
  -5,534
  -5,933
  -6,347
  -6,778
  -7,227
  -7,693
  -8,178
  -8,683
  -9,209
  -9,757
Total debt, $m
  6,603
  8,663
  11,001
  13,622
  16,525
  19,709
  23,170
  26,901
  30,898
  35,154
  39,663
  44,419
  49,419
  54,659
  60,137
  65,854
  71,812
  78,013
  84,462
  91,166
  98,134
  105,374
  112,899
  120,720
  128,852
  137,310
  146,112
  155,275
  164,818
  174,763
Total liabilities, $m
  8,887
  10,946
  13,285
  15,905
  18,809
  21,993
  25,453
  29,185
  33,182
  37,438
  41,947
  46,703
  51,703
  56,942
  62,421
  68,138
  74,095
  80,296
  86,746
  93,450
  100,417
  107,658
  115,182
  123,003
  131,136
  139,594
  148,396
  157,558
  167,102
  177,047
Total equity, $m
  10,183
  12,544
  15,223
  18,226
  21,553
  25,202
  29,167
  33,444
  38,024
  42,901
  48,068
  53,518
  59,247
  65,252
  71,529
  78,081
  84,908
  92,013
  99,404
  107,086
  115,071
  123,367
  131,990
  140,952
  150,271
  159,964
  170,050
  180,550
  191,486
  202,882
Total liabilities and equity, $m
  19,070
  23,490
  28,508
  34,131
  40,362
  47,195
  54,620
  62,629
  71,206
  80,339
  90,015
  100,221
  110,950
  122,194
  133,950
  146,219
  159,003
  172,309
  186,150
  200,536
  215,488
  231,025
  247,172
  263,955
  281,407
  299,558
  318,446
  338,108
  358,588
  379,929
Debt-to-equity ratio
  0.650
  0.690
  0.720
  0.750
  0.770
  0.780
  0.790
  0.800
  0.810
  0.820
  0.830
  0.830
  0.830
  0.840
  0.840
  0.840
  0.850
  0.850
  0.850
  0.850
  0.850
  0.850
  0.860
  0.860
  0.860
  0.860
  0.860
  0.860
  0.860
  0.860
Adjusted equity ratio
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534
  0.534

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  446
  871
  1,355
  1,901
  2,508
  3,175
  3,902
  4,687
  5,528
  6,425
  7,376
  8,380
  9,436
  10,543
  11,701
  12,911
  14,171
  15,485
  16,851
  18,272
  19,750
  21,287
  22,885
  24,547
  26,276
  28,076
  29,950
  31,902
  33,937
  36,060
Depreciation, amort., depletion, $m
  601
  741
  899
  1,076
  1,273
  1,488
  1,722
  1,975
  2,245
  2,533
  2,838
  3,160
  3,498
  3,853
  4,223
  4,610
  5,013
  5,433
  5,869
  6,323
  6,794
  7,284
  7,793
  8,322
  8,872
  9,445
  10,040
  10,660
  11,306
  11,979
Funds from operations, $m
  1,047
  1,611
  2,254
  2,977
  3,781
  4,663
  5,624
  6,661
  7,773
  8,958
  10,214
  11,540
  12,934
  14,396
  15,925
  17,521
  19,185
  20,917
  22,720
  24,595
  26,544
  28,571
  30,678
  32,869
  35,148
  37,520
  39,990
  42,562
  45,243
  48,038
Change in working capital, $m
  -99
  -114
  -129
  -144
  -160
  -175
  -191
  -206
  -220
  -235
  -248
  -262
  -276
  -289
  -302
  -315
  -328
  -342
  -355
  -369
  -384
  -399
  -415
  -431
  -448
  -466
  -485
  -505
  -526
  -548
Cash from operations, $m
  1,145
  1,725
  2,383
  3,122
  3,941
  4,839
  5,815
  6,867
  7,993
  9,193
  10,463
  11,802
  13,209
  14,684
  16,226
  17,836
  19,513
  21,259
  23,075
  24,964
  26,928
  28,970
  31,092
  33,300
  35,596
  37,987
  40,475
  43,067
  45,769
  48,586
Maintenance CAPEX, $m
  -480
  -601
  -741
  -899
  -1,076
  -1,273
  -1,488
  -1,722
  -1,975
  -2,245
  -2,533
  -2,838
  -3,160
  -3,498
  -3,853
  -4,223
  -4,610
  -5,013
  -5,433
  -5,869
  -6,323
  -6,794
  -7,284
  -7,793
  -8,322
  -8,872
  -9,445
  -10,040
  -10,660
  -11,306
New CAPEX, $m
  -3,182
  -3,665
  -4,161
  -4,663
  -5,166
  -5,665
  -6,158
  -6,640
  -7,112
  -7,573
  -8,023
  -8,463
  -8,896
  -9,324
  -9,748
  -10,173
  -10,601
  -11,034
  -11,476
  -11,930
  -12,398
  -12,883
  -13,389
  -13,917
  -14,470
  -15,051
  -15,662
  -16,304
  -16,982
  -17,696
Cash from investing activities, $m
  -3,662
  -4,266
  -4,902
  -5,562
  -6,242
  -6,938
  -7,646
  -8,362
  -9,087
  -9,818
  -10,556
  -11,301
  -12,056
  -12,822
  -13,601
  -14,396
  -15,211
  -16,047
  -16,909
  -17,799
  -18,721
  -19,677
  -20,673
  -21,710
  -22,792
  -23,923
  -25,107
  -26,344
  -27,642
  -29,002
Free cash flow, $m
  -2,517
  -2,542
  -2,518
  -2,440
  -2,302
  -2,099
  -1,831
  -1,496
  -1,093
  -625
  -93
  500
  1,153
  1,863
  2,625
  3,439
  4,302
  5,212
  6,167
  7,166
  8,207
  9,292
  10,419
  11,590
  12,804
  14,063
  15,369
  16,723
  18,127
  19,584
Issuance/(repayment) of debt, $m
  1,774
  2,060
  2,338
  2,621
  2,903
  3,184
  3,461
  3,732
  3,997
  4,256
  4,509
  4,756
  5,000
  5,240
  5,478
  5,717
  5,957
  6,201
  6,449
  6,704
  6,967
  7,240
  7,524
  7,821
  8,132
  8,458
  8,802
  9,163
  9,544
  9,945
Issuance/(repurchase) of shares, $m
  1,589
  1,490
  1,324
  1,102
  819
  473
  64
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,363
  3,550
  3,662
  3,723
  3,722
  3,657
  3,525
  3,732
  3,997
  4,256
  4,509
  4,756
  5,000
  5,240
  5,478
  5,717
  5,957
  6,201
  6,449
  6,704
  6,967
  7,240
  7,524
  7,821
  8,132
  8,458
  8,802
  9,163
  9,544
  9,945
Total cash flow (excl. dividends), $m
  846
  1,008
  1,144
  1,282
  1,421
  1,558
  1,693
  2,236
  2,904
  3,631
  4,415
  5,257
  6,153
  7,102
  8,104
  9,157
  10,260
  11,413
  12,616
  13,870
  15,175
  16,532
  17,944
  19,411
  20,936
  22,522
  24,171
  25,886
  27,671
  29,529
Retained Cash Flow (-), $m
  -2,034
  -2,360
  -2,680
  -3,003
  -3,327
  -3,649
  -3,966
  -4,276
  -4,580
  -4,877
  -5,167
  -5,450
  -5,729
  -6,004
  -6,278
  -6,551
  -6,827
  -7,106
  -7,390
  -7,683
  -7,984
  -8,297
  -8,622
  -8,963
  -9,319
  -9,693
  -10,086
  -10,500
  -10,936
  -11,396
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -1,188
  -1,353
  -1,535
  -1,721
  -1,906
  -2,091
  -2,272
  -2,040
  -1,677
  -1,246
  -751
  -194
  424
  1,098
  1,826
  2,605
  3,433
  4,307
  5,226
  6,187
  7,191
  8,236
  9,321
  10,448
  11,617
  12,829
  14,085
  15,386
  16,735
  18,133
Discount rate, %
  4.90
  5.15
  5.40
  5.67
  5.96
  6.25
  6.57
  6.89
  7.24
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.19
  10.70
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.21
  20.17
PV of cash for distribution, $m
  -1,132
  -1,223
  -1,311
  -1,380
  -1,428
  -1,453
  -1,456
  -1,197
  -894
  -599
  -323
  -74
  142
  319
  455
  552
  610
  634
  628
  599
  552
  493
  428
  361
  297
  237
  184
  139
  102
  73
Current shareholders' claim on cash, %
  78.2
  64.7
  56.2
  51.0
  47.9
  46.4
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3
  46.3

Antero Resources Corporation is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company's segments include the exploration, development and production of natural gas, NGLs and oil; gathering and processing; water handling and treatment, and marketing of excess firm transportation capacity. The Company's subsidiary, Antero Midstream Partners LP (Antero Midstream) is a master limited partnership, which owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream, as well as by third party gathering and compression arrangements. It also has access to additional low-pressure and high-pressure pipelines.

FINANCIAL RATIOS  of  Antero Resources (AR)

Valuation Ratios
P/E Ratio -5.3
Price to Sales 2.7
Price to Book 0.7
Price to Tangible Book
Price to Cash Flow 3.6
Price to Free Cash Flow -3.6
Growth Rates
Sales Growth Rate -58.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6.3%
Cap. Spend. - 3 Yr. Gr. Rate -1.4%
Financial Strength
Quick Ratio NaN
Current Ratio 0
LT Debt to Equity 75.1%
Total Debt to Equity 75.1%
Interest Coverage -4
Management Effectiveness
Return On Assets -5%
Ret/ On Assets - 3 Yr. Avg. 4%
Return On Total Capital -7.9%
Ret/ On T. Cap. - 3 Yr. Avg. 3.7%
Return On Equity -13.9%
Return On Equity - 3 Yr. Avg. 7.1%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 92.9%
Gross Margin - 3 Yr. Avg. 95.2%
EBITDA Margin -11.8%
EBITDA Margin - 3 Yr. Avg. 38.9%
Operating Margin -60.3%
Oper. Margin - 3 Yr. Avg. 10.9%
Pre-Tax Margin -75.7%
Pre-Tax Margin - 3 Yr. Avg. 1.8%
Net Profit Margin -51.5%
Net Profit Margin - 3 Yr. Avg. -0.9%
Effective Tax Rate 39.9%
Eff/ Tax Rate - 3 Yr. Avg. 38.9%
Payout Ratio 0%

AR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AR stock intrinsic value calculation we used $3655.574 million for the last fiscal year's total revenue generated by Antero Resources. The default revenue input number comes from 0001 income statement of Antero Resources. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AR stock valuation model: a) initial revenue growth rate of 25.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.9%, whose default value for AR is calculated based on our internal credit rating of Antero Resources, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Antero Resources.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AR stock the variable cost ratio is equal to 31.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2224 million in the base year in the intrinsic value calculation for AR stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.5% for Antero Resources.

Corporate tax rate of 27% is the nominal tax rate for Antero Resources. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AR stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AR are equal to 345.5%.

Life of production assets of 26.3 years is the average useful life of capital assets used in Antero Resources operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AR is equal to -10.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $8149.181 million for Antero Resources - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 317.086 million for Antero Resources is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Antero Resources at the current share price and the inputted number of shares is $4.5 billion.

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COMPANY NEWS

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▶ Antero Resources: 2Q Earnings Snapshot   [07:28PM  Associated Press]
▶ As America's hiring spree continues, these Denver companies are leading the charge   [Jul-16-18 04:35PM  American City Business Journals]
▶ Antero Resources Corporation to Host Earnings Call   [Apr-26-18 09:40AM  ACCESSWIRE]
▶ Antero Resources: 1Q Earnings Snapshot   [Apr-25-18 05:51PM  Associated Press]
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▶ Should You Buy Antero Resources Corporation (NYSE:AR)?   [Feb-14-18 01:39PM  Simply Wall St.]
▶ Antero Resources tops Street 4Q forecasts   [Feb-13-18 05:43PM  Associated Press]
▶ Antero Resources Earnings Preview   [08:03AM  Benzinga]
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▶ 9 Best Energy Stocks To Own Before Earnings   [Feb-01-18 10:13AM  Benzinga]
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▶ Antero Resources Announcement to Shareholders   [Jan-29-18 04:15PM  PR Newswire]
▶ Expectations for EQTs Upcoming Earnings   [Jan-25-18 04:58PM  Market Realist]

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