DENVER, Jan. 29, 2018 /PRNewswire/ — Antero Resources (NYSE: AR) (“Antero” or the “Company”) announced today that the Company and its Board of Directors are working with its financial and legal advisors to evaluate various potential measures to address the discount in trading value of Antero’s stock relative to some of the premier U.S. large capitalization upstream independents that have a similar profile in terms of leverage, capital efficiency, production growth and free cash flow generation. The potential measures to be evaluated include the return of capital to shareholders.
Over the past several months, Antero conducted a shareholder outreach program in order to solicit feedback from its largest shareholders as to how the Company can improve its corporate governance and compensation practices. At Antero’s recent Analyst Day in New York, the Company announced its intent to redesign the 2018 compensation plan based on the feedback received in its shareholder outreach program. Additionally, at the Analyst Day Antero presented a five year outlook based on strip pricing that featured highly efficient capital spending, strong corporate level returns, low leverage, free cash flow generation and scale. This outlook highlighted the valuation discount relative to some of the premier U.S. large capitalization upstream independents. Antero’s management team and its Board of Directors are charged with analyzing the merits of potential actions to increase shareholder value.
Commenting on the announcement, Paul Rady, Chairman and CEO, said, “Antero is unique among its Appalachian peers and much of the large capitalization upstream sector with regard to shareholder alignment, in that Antero is run by co-founders who own a significant stake in the Company. This evaluation of potential measures to address our valuation discount is a high priority within our organization and we intend to pursue it with rigor. We have received constructive input from some of our largest shareholders and we will continue to welcome input from our shareholders as part of the evaluation announced today. Management and the Board are committed to evaluating any prudent ideas for increasing long-term shareholder value.”
The Company has not set a definitive timetable for completion of this evaluation and there can be no assurances that any initiatives or actions will be announced or completed in the future.