Why Antero Resources Stock Rose as Much as 12% Today
Shares of U.S. exploration and production company Antero Resources (NYSE: AR) jumped as much as 12% on Jan. 11. Holding firm to most of the gain, the stock was up by 11% or so at 2:30 p.m. EST. Company news was the key driver.
Some background here is important. Antero Resources, like so many U.S.-focused drillers, has a fairly leveraged balance sheet. Its financial debt-to-equity ratio is around three times versus roughly 0.25 times for integrated energy goliath Chevron. Thus, dealing with debt is a big issue for Antero, given the lingering low prices for oil and natural gas (though they are well off of the lows witnessed during early 2020).
Image source: Getty Images.
Source Fool.com
