Antero Resources LLC, preparing to become a publicly traded explorer, already oversees one of the biggest operations in the Appalachian Basin, and it wants to keep it that way by building a 150-mile-long water sourcing and distribution pipeline that would feed drilling sites across West Virginia and into Ohio.

The water trunk line, set to be completed in December, begins at the Ohio River in Pleasants County, WV, and would carry water supplies northeast to drilling sites across the state. Water containment facilities and withdrawal points are planned in, among other places, Middle Island, Richie, Salem and West Fork. Estimated costs for the West Virginia system are projected to be at least $375 million, including $215 million in 2013 capital costs.

Antero, now backed by Warburg Pincus LLC, in June launched a nearly $1 billion initial public offering to go public (see NGI, Aug. 12).

More than “30% of wells drilled in 2013 and up to 90% of wells drilled in 2014” would use the water infrastructure, the operator noted. Water used in hydraulic fracturing would fall to an estimated $2.00/barrel from $6.00, a cost savings of up to $600,000 per well, Antero said. The system, which would provide a “reliable, year-round water supply, is expected to not only increase operational efficiency but reduce water truck traffic.

Antero isn’t only using in-house water supplies to increase its operations efficiencies, according to management. Multi-well pad drilling being implemented “saves up to $200,000 per well by reducing rig moves.” Shallow rigs also are being used to drill to the “kick-off point” of the resources, saving another $250,000 or more per well.

And the producer is going with the gal that brought it to the dance: it expects most of its rigs to be natural gas-powered by the end of this year, saving up to $50,000 per well in fuel costs and emissions reductions.

The company issued its second quarter financial and operational results earlier this month. Proved reserves at the end of June were 6.3 Tcfe, 47% higher than at the end of 2012, assuming ethane rejection, which excluded from the proved reserves 178 million b/d. Proved, probable and possible (3P) reserves in aggregate were 27.7 Tcfe at the end of June, 28% higher than at the end of 2012. The 3P reserves at the end of the second quarter included 18.7 Tcfe in the Marcellus Shale, 5.3 Tcfe in the Utica shale and 3.8 Tcfe in the Upper Devonian Shale, which lies above the Utica.

Net production in 2Q2013 increased 115% to 42 Bcfe from a year ago and was 20% higher than in 1Q2013. Twenty-six new wells were brought on line between April and June. Net daily production averaged 458 MMcfe/d, mostly natural gas, which comprised 433 MMcf/d (95%) of the total, along with 3,891 b/d (4%) of NGLs and 269 b/d (1%) of crude oil. Net daily liquids production of 4,160 b/d increased 74% from the first three months of this year.

Current estimated net daily production is comprised of 533 MMcf/d of gas and 8,400 b/d of NGLs and condensate. Antero in the second period completed 32 net wells in the Marcellus and Utica and it has 54 net operated wells in various stages of completion.

Net income in 2Q2013 was $131 million, including $181 million of unrealized hedging gains. Excluding one-time items, Antero earned $34 million in the period, versus $8 million in 2Q2012. Revenues climbed year/year to $387 million from $39 million. Cash flow from continuing operations jumped 195% from a year ago to $92 million.

In the Marcellus, Antero is operating 15 drilling rigs, all in northern West Virginia, including three intermediate rigs that are to drill the vertical section of some horizontal wells to the kick-off point at about 6,000 feet. Current output from the play is 620 MMcf/d gross. One rig is to be moved to the Utica Shale by the end of September, where Antero now is using three rigs. A fifth rig is scheduled by the end of the year.