BofA Stays Bullish on Antero Resources Corporation (AR), but Lowers Expectations

Antero Resources Corporation (NYSE:AR) is among the stocks under $50 to buy now. On January 16, BofA cut the price target on Antero Resources Corporation (NYSE:AR) to $39 from $47 and maintained a ‘Buy’ rating on the stock. According to TheFly, market optimism for natural gas has persisted for 18 months, but BofA anticipates the risk of oversupply in the coming year. This, coupled with reduced price guidance, results in a 12% average reduction in BofA’s price projections for the gas-levered E&P group.

Just a day earlier, Benchmark reiterated its ‘Hold’ rating on Antero Resources Corporation (NYSE:AR) right after the company’s debt issuance for the $2.8 billion acquisition of HG Energy II. The firm notes that this issuance of $750 million of 5.4% notes, along with the $800 million sale of its Ohio Utica assets, is to partially fund its purchase. The remaining half, on the other hand, will be paid through a $1.5 billion term loan with a three-year maturity.

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By the end of 2027, Antero Resources Corporation (NYSE:AR) will be able to fully repay the term loan, marking a clear path to debt reduction after this acquisition, concluded Benchmark.

Antero Resources Corporation (NYSE:AR) is a Colorado-based independent oil and natural gas company providing natural gas, natural gas liquids (NGLs), and oil properties. Incorporated in 2002, the company operates through three segments: Exploration and Production, Marketing, and Equity Method Investment in Antero Midstream.

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