Antero Family at the Wells Fargo Symposium

Posted on December 22, 2020 by Florian Buschek

Antero Resources AM (disclosure: long) and Midstream AM (disclosure: position only indirectly via AR) attended the vitual Wells Fargo Symposium and gave some great details. A couple of notes (there might be some errors):

So to recap: AR wants to delever, AM not, since as long as AR is alive AM cannot go bust. AM can therefore keep all the leverage while AR has most to gain from firming up the balance sheet. In that sense AM is a play on the dividend and possible rerating to a more normal dividend yield (higher). There is no direct commodity price exposure.
AR is a bet on deleveraging and commodity prices. It is maximally levered to NGLs and fully hedged on NatGas. AR is also strongly financially levered and the reduction of debt will accrue to the equity.
AR also owns a huge chunk of AM so there is also a “sum of the parts” argument.

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