The Rising Influence of Rising Affluence

[mr_o]

Antero (AR)

Have followed Antero for a long time and recently became much more interested after their Jan 5th presentation. My issue with them in the past was their aggressive overspending to increase production but as of their latest update they plan on spending within cashflow while growing 20% a year, with projections of doubling cashflow by 2020.

I put some faith in management's projections due to AR's significant hedging profile (and firm takeaway capacity to better end markets). In a sense they have the ability to manufacture gas with a much more defined set of input/output variables than most other producers.