Hello, all! I'm in an Antero unit that went to sales on July 21. According to my contract, I'm supposed to begin getting royalties six months from the first day of the month after that, which would be February 1, 2015. I have heard that they are consistently late in paying royalties, and that they're behind on issuing division orders. Has anyone out there received a royalty (NOT signing bonus) payment from Antero? Anyone received a Division Order yet? Just curious if this is a good company to be dealing with. They seem to be a great producer. Thanks for anything anyone is willing to share. By the way, I'm in the Vorhies unit. The initial production numbers are up on their company presentation and they look pretty good!
Call Antero and ask to speak to a "Division Order Specialist". 303 357 7310. Have your well number available. If you don't know it, go to the state website (ODNR in Ohio). If you don't get what you want from the first person you speak with, don't hang up. Ask to speak with the person's supervisor and tell them you are prepared to wait. They may take your name/ph #, etc....and promise to call you back. If you don't get a call back, call again and remind them. The squeaky wheel gets the grease. Once you get the right person, demand a date when your division order will be mailed. It's BS that you don't have it if the well is in production!
Some Antero leases state that payment will begin (120 - 180 - ?) days after the product goes to sales.....and if the payment is not received within 45 days after the due date, Antero will pay you interest on the unpaid balance. My lease says 5% above prime per year on unpaid balance. Read your lease so you can remind the Division Order Specialist of what it says. They have access to your lease, but it would help if you knew what was in it also.
Lots of landowners in Noble County, Ohio are getting royalty checks, but they are way behind. A neighbor just got his first one 7 months late, but it contained all 7 months. I reviewed it, found a mistake for him to clear up with Antero (they did) and also compared the gross production numbers with the numbers they reported to the state for the quarters where numbers exist. They matched to the penny, so at least they are telling the same story to everyone lol... He has received the next month's royalty check, so it appears they have him fixed up OK.
All in all, I think Antero needs to expand their records department, at least for the initial rush of entries required right now. A little personal attention to those in your situation (a letter? a phone call?) would bring dividends. When they keep money in their own bank account that they have promised to pay the landowners, it spoils the good name they have built up over the past ~two years. It's kind of like WalMart delaying payment to their vendors.....it's a great business tactic (you never have to purchase your inventory) and you earn more $$ from the interest on the sale of merchandise while you withhold payment to the vendor. Antero seems to have take a page out of Sam Walton's playbook.....but I digress.... Good luck getting your money.
Great stuff, Hiker - thanks for responding. I think maybe the thing with Antero is that they are cash-thin - they've been buying up so much acreage that they probably have a cash flow problem. Their "out" in the contract I signed is that they can be late - but they have to pay that interest. The good thing about it is that they are now a publicly owned, traded company, which brings much greater scrutiny and transparency to what they're up to.
Hello Hiker: Great post, Lots of good info, we in Doddridge County WV have all the above problems. I call Denver (D.O) dept at least twice a month about certain wells that have been on line since Jan 2014, same answer> "Title Problems"..As I said in an earlier post, I think Antero has bitten off more than they can chew, lot's of leasing, lot's of well drilling, but scarce in the records dept, we all need to flood Denver with complaints.Thanks again for your post.
Agree, we all need to keep asking the questions and telling our neighbors in the same situation who to call, and maybe the HR department in Denver will respond with some new hires. I agree that they've bitten off way more than they can chew, which is way too bad for us guys.
They were doing so well in planning ahead with "takeaway" and reserving volume in the processing plants, rig reservations, pad preparation, purchasing the Beck/XTO leases, etc....but the "book keeping" department supporting the landowner after the gas began to flow has really fallen on its face. Classic example of an unbalanced team; the production guys on the front line are terrific, Turner Oil did a good job of getting the acreage, but the home office VP in charge of supporting the division order/royalty calculation, etc... just ain't got the horsepower...or the "fire in the belly"...or the "smarts" to get the job done. Get someone in there who can do the job I say. And, no bonus for him/her at year end either ha ha.....
Do you suppose this guy's bonus is based on how long he can delay royalty payments to landowners without incurring legal action?
Bluflame: Good one! I suppose anything is possible in the oil business? Antero so far has maintained a pretty good public face, so I'm hoping it's just poor planning on their part and not something devious.....but it really does stink.
My comment was strictly made tongue-in-cheek. However, I've seen stranger things happen during a long career in the business world!
I also have been impressed with Antero. Their investor presentations are really good, divulging lots of pertinent informtaion. I've been surprised to hear about their royalty payment problems, particularly since their lease terms give them six months grace period from first production. Others are three months or less.
Here's the problem with small/newer companies like Antero - all of their cash goes to buying up drilling rights. They then delay royalties, which they technically can do based on the contracts we sign. They do have to pay interest, but I talked to a guy today who has some acreage near Piedmont Lake that was drilled three years ago, and he JUST got his first royalty check.
I didn't know Antero drilled anything close to Piedmont lake, especially three years ago? It seems that their Ohio drilling program has only been in Monroe and Noble counties so far. Maybe he was talking about Chesapeake?
The maps on pages 4 & 25 of Antero's latest Investor Presentation seem to show Antero leased land at Piedmont Lake. Or at least in the NW corner of Belmont County where Piedmont Lake is located.