The Rising Influence of Rising Affluence

[Timothy Smith]

$AR $AM - Antero Resources (AR -0.3%) says it agrees to supply 70MMBtu/day of liquefied natural gas to Chubu U.S. Gas Trading from the Freeport LNG terminal on the Texas Gulf coast.

AR says it will begin shipping volumes once Freeport LNG is placed into commercial service, which is expected to occur by year-end 2018 or early 2019.

AR also raises its quarterly distribution 8% Q/Q and sees distributable cash flow of $160M-$170M in 2015 vs. prior guidance of $150M-$160M with an expected DCF coverage ratio in excess of 1.2x, driven by higher than expected throughput volumes, lower property taxes and lower operating costs.

Antero Midstream Partners (AM +3.4%) increases its quarterly distribution to $0.205/unit and lifts 2015 EBITDA guidance by 6% to $180M-$190M.