EX-99.1 2 tm2521983d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Antero Resources Announces Second Quarter 2025 Financial and Operating Results

 

Denver, Colorado, July 30, 2025—Antero Resources Corporation (NYSE: AR) (“Antero Resources,” “Antero,” or the “Company”) today announced its second quarter 2025 financial and operating results. The relevant consolidated financial statements are included in Antero Resources’ Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

 

Highlights:

 

·Net production averaged 3.4 Bcfe/d

oNatural gas production averaged 2.2 Bcf/d
oLiquids production averaged 200 MBbl/d

·Realized a pre-hedge natural gas equivalent price of $3.85 per Mcfe, which is a $0.41 per Mcfe premium to NYMEX
·Realized a pre-hedge C3+ NGL price of $37.92 per barrel
·Net income was $157 million and Adjusted Net Income was $110 million (Non-GAAP)
·Adjusted EBITDAX was $379 million (Non-GAAP) and net cash provided by operating activities was $492 million, increases of 151% and 243% compared to the prior year period, respectively
·Free Cash Flow was $262 million (Non-GAAP)
·Net Debt during the quarter was reduced by $187 million, to $1.1 billion (Non-GAAP)
·Purchased 3.6 million shares for approximately $126 million from April 1st through July 30th
·Published Antero’s Annual ESG Report highlighting emissions reduction progress and significant local economic impacts

 

2025 Full-Year Guidance Highlights:

 

·Increasing production guidance to 3.4 to 3.45 Bcfe/d, driven by strong well performance
·Decreasing drilling and completion capital guidance to $650 to $675 million, due to continuing capital efficiency gains

 

Paul Rady, Chairman, CEO and President of Antero Resources commented, “For the second consecutive year we increased production guidance, while also reducing our drilling and completion capital budget. This reflects continued strong well performance combined with improving on our peer leading capital efficiency.”

 

Mr. Rady continued, “Looking ahead, natural gas demand is expected to grow by more than 25% by 2030 driven by LNG export growth and increasing power demand fueled by AI Data Centers. With firm transportation capacity to the Gulf Coast LNG corridor and over 20 years of premium drilling inventory, Antero is uniquely positioned to benefit from both the significant new LNG capacity and the strong regional power demand growth that is anticipated by the end of the decade.”

 

Michael Kennedy, CFO of Antero Resources said, “Our best-in-class low maintenance capital requirements allows us to generate substantial Free Cash Flow in 2025. During the second quarter, we used this Free Cash Flow to pay down nearly $200 million of debt and purchase $85 million of stock. Year-to-date through July 30th, we purchased 4.4 million shares, or $152 million of stock. In addition, we have paid down approximately $400 million or 30% of our total debt in the first two quarters of the year. Going forward, we plan to actively manage our return of capital strategy, continuing to use buybacks opportunistically, while maintaining our focus on further debt reduction.”

 

For a discussion of the non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt please see “Non-GAAP Financial Measures.”

 

1

 

 

2025 Guidance Update

 

Antero is increasing its full year 2025 production guidance to 3.4 to 3.45 Bcfe/d. The higher than expected volumes are driven by stronger well performance. Antero is decreasing its full year 2025 drilling and completion capital budget to $650 to $675 million. The lower expected spend is a result of continued capital efficiency gains.

 

Antero is updating its full year C3+ NGL realized price guidance to a premium of $1.00 to $2.00 per barrel to reflect second quarter 2025 actuals. Antero still expects the company’s C3+ NGL pricing premium to average $1.50 to $2.50 per barrel during the second half of 2025.

 

   Full Year 2025 
   Revised 
Full Year 2025 Guidance  Low   High 
Net Daily Natural Gas Equivalent Production (Bcfe/d)   3.4    3.45 
Drilling and Completion Capital Budget ($MM)  $650   $675 
C3+ NGL Realized Price Premium vs Mont Belvieu ($/Bbl)  $1.00   $2.00 

 

Note: Any 2025 guidance items not discussed in this release are unchanged from previously stated guidance.

 

Free Cash Flow

 

During the second quarter of 2025, Free Cash Flow was $262 million.

 

   Three Months Ended June 30, 
   2024   2025 
Net cash provided by operating activities  $143,499    492,358 
Less: Capital expenditures   (192,385)   (208,409)
Less: Distributions to non-controlling interests in Martica   (19,282)   (21,512)
Free Cash Flow  $(68,168)   262,437 
Changes in Working Capital (1)   (11,700)   (106,165)
Free Cash Flow before Changes in Working Capital  $(79,868)   156,272 

 

(1)Working capital adjustments in the second quarter of 2024 includes $11 million in net increases in current assets and liabilities and less than $1 million in net increases in accounts payable and accrued liabilities for additions to property and equipment. Working capital adjustments in the second quarter of 2025 includes $116 million in net increases in current assets and liabilities and $10 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment.

 

Share Purchase Program

 

From April 1, 2025 to July 30, 2025 Antero purchased 3.6 million shares at an average weighted price of $34.49 per share, or an aggregate $126 million. Antero’s share purchases were at an 8% discount to the volume weighted average price per share of $37.29 per share during that same period. This illustrates the opportunistic strategy around the share buyback program. Antero has approximately $900 million of capacity remaining on its current share purchase program.

 

Debt Reduction

 

As of June 30, 2025 Antero’s total debt was $1.1 billion. Net Debt to trailing twelve month Adjusted EBITDAX was 0.8x. During the quarter, Antero reduced total debt by $187 million. Year-to-date, as of the end of the second quarter, Antero reduced debt by approximately $400 million, or 30% of total debt.

 

Natural Gas Hedge Program

 

Antero added new natural gas costless collars for 2026. These wide collars lock in attractive rates of returns with a floor price of $3.14 per MMBtu and a ceiling price of $6.31 per MMBtu. Antero did not enter into any new natural gas hedges for 2025. For more detail please see the presentation titled “Hedges and Guidance Presentation” on Antero’s website.

 

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   Natural Gas
MMBtu/d		   Weighted
Average Index
Price ($/MMBtu)		   % of Estimated
Natural Gas
Production (1)		 
2025 NYMEX Henry Hub Swap   100,000   $3.12    4%

 

       Weighted Average Index     
   Natural Gas
(MMBtu/d)		   Floor Price
($/MMBtu)		   Ceiling Price
($/MMBtu)		   % of Estimated
Natural Gas
Production (1)		 
2026 NYMEX Henry Hub Costless Collars   500,000   $3.14   $6.31    21%

 

(1)Based on the midpoint of 2025 natural gas guidance (including BTU upgrade)

 

Second Quarter 2025 Financial Results

 

Net daily natural gas equivalent production in the second quarter averaged 3.4 Bcfe/d, including 200 MBbl/d of liquids. Antero’s average realized natural gas price before hedges was $3.39 per Mcf, a $0.05 per Mcf discount to the benchmark index price. Antero’s realized natural gas price during the quarter was negatively impacted by maintenance in June on a Gulf Coast directed pipeline. This resulted in increased sales at a regional hub that is priced at a discount to the benchmark. Antero’s average realized C3+ NGL price before hedges was $37.92 per barrel.

 

The following table details average net production and average realized prices for the three months ended June 30, 2025:

 

   Three Months Ended June 30, 2025 
   Natural Gas
(MMcf/d)		   Oil
(Bbl/d)		   C3+ NGLs
(Bbl/d)		   Ethane
(Bbl/d)		   Combined
Natural Gas
Equivalent
(MMcfe/d)		 
Average Net Production   2,230    7,385    116,571    76,088    3,430 

 

   Three Months Ended June 30, 2025 
   Natural Gas   Oil   C3+ NGLs   Ethane   Combined
Natural Gas
Equivalent		 
Average Realized Prices  ($/Mcf)   ($/Bbl)   ($/Bbl)   ($/Bbl)   ($/Mcfe) 
Average realized prices before settled derivatives  $3.39    50.15    37.92    11.34    3.85 
Index price (1)  $3.44    63.74    38.07    10.11    3.44 
Premium / (Discount) to Index price  $(0.05)   (13.59)   (0.15)   1.23    0.41 
                          
Settled commodity derivatives  $(0.03)   —    —    —    (0.02)
Average realized prices after settled derivatives  $3.36    50.15    37.92    11.34    3.83 
Premium / (Discount) to Index price  $(0.08)   (13.59)   (0.15)   1.23    0.39 

 

(1)Please see Antero’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, for more information on these index and average realized prices.

 

All-in cash expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was $2.48 per Mcfe in the second quarter, as compared to $2.36 per Mcfe during the second quarter of 2024. The increase was due primarily to higher gathering, compression, processing and transportation costs related to increased fuel costs as a result of higher natural gas prices. Net marketing expense was $0.06 per Mcfe during the second quarter of 2025, compared to $0.07 per Mcfe during the second quarter of 2024.

 

3

 

 

Second Quarter 2025 Operating Results

 

Antero placed 18 horizontal Marcellus wells to sales during the second quarter with an average lateral length of 13,500 feet. Eleven of these wells have been on line for approximately 60 days with an average rate per well of 24 MMcfe/d, including 1,200 Bbl/d of liquids per well assuming 25% ethane recovery.

 

Second Quarter 2025 Capital Investment

 

Antero’s drilling and completion capital expenditures for the three months ended June 30, 2025 were $171 million. In addition to capital invested in drilling and completion activities, the Company leased $26 million in land during the second quarter. Through this leasing, Antero added approximately 5,000 net acres, representing 20 incremental drilling locations, replenishing the 18 wells brought on line during the second quarter at an average cost of approximately $820,000 per location. In addition to the incremental locations, Antero also acquired minerals in its Marcellus area of development to increase its net revenue interest in future drilling locations.

 

2024 ESG Report Highlights

 

Antero published its 2024 ESG Report, marking the Company's 8th year reporting on its environmental, social and governance (ESG) performance. This year’s report highlights the Company’s emissions reduction progress, significant local economic impacts, increased water recycling rate and continued commitment to safety across our operations. The report can be found at www.anteroresources.com/esg.

 

·Decreased absolute methane emissions (metric tons) by 77% and methane intensity by 79% since 2019
·Reduced overall Scope 1 emissions and Scope 1 GHG intensity by 63% since 2019
·Recycled 89% of the wastewater during the year
·On track to achieve its 2025 Net Zero Scope 1 GHG emission goal due to the reduction in overall emissions and supplemented by the LPG stove initiative in Ghana that creates premium certified carbon offsets

 

Conference Call

 

A conference call is scheduled on Thursday, July 31, 2025 at 9:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow the discussion of the results. To participate in the call, dial in at 877-407-9079 (U.S.), or 201-493-6746 (International) and reference “Antero Resources.” A telephone replay of the call will be available until Thursday, August 7, 2025 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750396. To access the live webcast and view the related earnings conference call presentation, visit Antero's website at www.anteroresources.com. The webcast will be archived for replay until Thursday, August 7, 2025 at 9:00 am MT.

 

Presentation

 

An updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteroresources.com on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this press release.

 

Non-GAAP Financial Measures

 

Adjusted Net Income

 

Adjusted Net Income as set forth in this release represents net income, adjusted for certain items. Antero believes that Adjusted Net Income is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Adjusted Net Income is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net income as an indicator of financial performance. The GAAP measure most directly comparable to Adjusted Net Income is net income. The following table reconciles net income to Adjusted Net Income (in thousands):

 

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   Three Months Ended June 30, 
   2024   2025 
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation  $(79,806)   156,585 
Net income and comprehensive income attributable to noncontrolling interests   5,208    9,988 
Unrealized commodity derivative (gains) losses   11,479    (59,763)
Amortization of deferred revenue, VPP   (6,739)   (6,298)
Loss (gain) on sale of assets   (18)   546 
Impairment of property and equipment   313    6,297 
Equity-based compensation   17,151    15,855 
Loss on early extinguishment of debt   —    729 
Equity in earnings of unconsolidated affiliate   (20,881)   (30,563)
Contract termination, loss contingency and settlements   3,009    13,596 
Tax effect of reconciling items (1)   (938)   13,021 
    (71,222)   119,993 
Martica adjustments (2)   (3,225)   (9,988)
Adjusted Net Income (Loss)  $(74,447)   110,005 
           
Diluted Weighted Average Common Shares Outstanding (3)   310,806    313,184 

 

(1)Deferred taxes were approximately 22% for 2024 and 2025.
(2)Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above
(3)Diluted weighted average shares outstanding does not include securities that would have had an anti-dilutive effect on the computation of diluted earnings per share. Anti-dilutive weighted average shares outstanding were 5.8 million for the three months ended June 30, 2024. There were no material anti-dilutive weighted average shares outstanding for the three months ended June 30, 2025.

 

Net Debt

 

Net Debt is calculated as total long-term debt less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to service its debt obligations.

 

The following table reconciles consolidated total long-term debt to Net Debt as used in this release (in thousands):

 

   December 31,   June 30, 
   2024   2025 
Credit Facility  $393,200    140,000 
8.375% senior notes due 2026   96,870    — 
7.625% senior notes due 2029   407,115    365,353 
5.375% senior notes due 2030   600,000    600,000 
Unamortized debt issuance costs   (7,955)   (6,684)
Total long-term debt  $1,489,230    1,098,669 
Less: Cash and cash equivalents   —    — 
Net Debt  $1,489,230    1,098,669 

 

Free Cash Flow

 

Free Cash Flow is a measure of financial performance not calculated under GAAP and should not be considered in isolation or as a substitute for cash flow from operating, investing, or financing activities, as an indicator of cash flow or as a measure of liquidity. The Company defines Free Cash Flow as net cash provided by operating activities, less capital expenditures, which includes additions to unproved properties, drilling and completion costs and additions to other property and equipment, less distributions to non-controlling interests in Martica.

 

The Company has not provided projected net cash provided by operating activities or a reconciliation of Free Cash Flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy without unreasonable efforts.

 

Free Cash Flow is a useful indicator of the Company’s ability to internally fund its activities, service or incur additional debt and estimate our ability to return capital to shareholders. There are significant limitations to using Free Cash Flow as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company’s net income, the lack of comparability of results of operations of different companies and the different methods of calculating Free Cash Flow reported by different companies. Free Cash Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations.

 

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Adjusted EBITDAX

 

Adjusted EBITDAX is a non-GAAP financial measure that we define as net income, adjusted for certain items detailed below.

 

Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss, cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures, working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because this measure:

 

·is widely used by investors in the oil and natural gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors;

 

·helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating structure;

 

·is used by our management team for various purposes, including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting: and

 

·is used by our Board of Directors as a performance measure in determining executive compensation.

 

There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies.

 

The GAAP measures most directly comparable to Adjusted EBITDAX are net income and net cash provided by operating activities. The following table represents a reconciliation of Antero’s net income, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero’s Adjusted EBITDAX to net cash provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three months ended June 30, 2024 and 2025 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these adjustments are disclosed in the table below as Martica related adjustments.

 

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   Three Months Ended June 30, 
   2024   2025 
Reconciliation of net income (loss) to Adjusted EBITDAX:          
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation  $(79,806)   156,585 
Net income and comprehensive income attributable to noncontrolling interests   5,208    9,988 
Unrealized commodity derivative (gains) losses   11,479    (59,763)
Amortization of deferred revenue, VPP   (6,739)   (6,298)
Loss (gain) on sale of assets   (18)   546 
Interest expense, net   32,681    19,954 
Loss on early extinguishment of debt   —    729 
Income tax expense (benefit)   (17,288)   48,190 
Depletion, depreciation, amortization and accretion   189,413    188,531 
Impairment of property and equipment   313    6,297 
Exploration expense   643    648 
Equity-based compensation expense   17,151    15,855 
Equity in earnings of unconsolidated affiliate   (20,881)   (30,563)
Dividends from unconsolidated affiliate   31,284    31,314 
Contract termination, loss contingency, transaction expense and other   3,020    13,627 
    166,460    395,640 
Martica related adjustments (1)   (15,058)   (16,176)
Adjusted EBITDAX  $151,402    379,464 
           
Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities:          
Adjusted EBITDAX  $151,402    379,464 
Martica related adjustments (1)   15,058    16,176 
Interest expense, net   (32,681)   (19,954)
Amortization of debt issuance costs and other   613    356 
Exploration expense   (643)   (648)
Changes in current assets and liabilities   11,392    116,475 
Contract termination, loss contingency, transaction expense and other   (214)   (318)
Other items   (1,428)   807 
Net cash provided by operating activities  $143,499    492,358 

 

(1)Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above.

 

   Twelve 
   Months Ended 
   June 30, 2025 
Reconciliation of net income to Adjusted EBITDAX:     
Net income and comprehensive income attributable to Antero Resources Corporation  $478,858 
Net income and comprehensive income attributable to noncontrolling interests   40,804 
Unrealized commodity derivative losses   6,913 
Amortization of deferred revenue, VPP   (26,152)
Loss on sale of assets   663 
Interest expense, net   98,661 
Loss on early extinguishment of debt   4,156 
Income tax benefit   (4,534)
Depletion, depreciation, amortization, and accretion   760,985 
Impairment of property and equipment   53,845 
Exploration   2,689 
Equity-based compensation expense   64,234 
Equity in earnings of unconsolidated affiliate   (108,783)
Dividends from unconsolidated affiliate   125,256 
Contract termination, loss contingency, transaction expense and other   13,983 
    1,511,578 
Martica related adjustments (1)   (63,850)
Adjusted EBITDAX  $1,447,728 

 

(1)Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above.

 

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Drilling and Completion Capital Expenditures

 

For a reconciliation between cash paid for drilling and completion capital expenditures and drilling and completion accrued capital expenditures during the period, please see the capital expenditures section below (in thousands):

 

   Three Months Ended June 30, 
   2024   2025 
Drilling and completion costs (cash basis)  $173,323    181,200 
Change in accrued capital costs   (9,116)   (10,531)
Adjusted drilling and completion costs (accrual basis)  $164,207    170,669 

 

Notwithstanding their use for comparative purposes, the Company’s non-GAAP financial measures may not be comparable to similarly titled measures employed by other companies.

 

This release includes "forward-looking statements." Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” “goal,” “target,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Resources’ control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Resources expects, believes or anticipates will or may occur in the future, such as those regarding our financial strategy, future operating results, financial position, estimated revenues and losses, projected costs, estimated realized natural gas, NGL and oil prices, prospects, plans and objectives of management, return of capital program, expected results, impacts of geopolitical, including the conflicts in Ukraine and in the Middle East, and world health events, future commodity prices, future production targets, including those related to certain levels of production, future earnings, leverage targets and debt repayment, future capital spending plans, improved and/or increasing capital efficiency, expected drilling and development plans, projected well costs and cost savings initiatives, operations of Antero Midstream, future financial position, the participation level of our drilling partner and the financial and production results to be achieved as a result of that drilling partnership, the other key assumptions underlying our projections, the impact of recently enacted legislation, and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this release. Although Antero Resources believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

 

Antero Resources cautions you that these forward-looking statements are subject to all of the risks and uncertainties, incidental to our business, most of which are difficult to predict and many of which are beyond the Antero Resources’ control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, changes in emission calculation methods, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of geopolitical, including the conflicts in Ukraine and the Middle East, and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading " Risk Factors" in Antero Resources’ Annual Report on Form 10-K for the year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.

 

For more information, contact Daniel Katzenberg, Director - Finance and Investor Relations of Antero Resources at (303) 357-7219 or dkatzenberg@anteroresources.com.

 

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ANTERO RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

 

       (Unaudited) 
   December 31,   June 30, 
   2024   2025 
Assets          
Current assets:          
Accounts receivable  $34,413    31,650 
Accrued revenue   453,613    367,895 
Derivative instruments   1,050    1,137 
Prepaid expenses   12,423    9,591 
Other current assets   6,047    17,261 
Total current assets   507,546    427,534 
Property and equipment:          
Oil and gas properties, at cost (successful efforts method):          
Unproved properties   879,483    883,170 
Proved properties   14,395,680    14,540,908 
Gathering systems and facilities   5,802    5,802 
Other property and equipment   105,871    109,318 
    15,386,836    15,539,198 
Less accumulated depletion, depreciation and amortization   (5,699,286)   (5,883,318)
Property and equipment, net   9,687,550    9,655,880 
Operating leases right-of-use assets   2,549,398    2,397,054 
Derivative instruments   1,296    947 
Investment in unconsolidated affiliate   231,048    249,163 
Other assets   33,212    35,495 
Total assets  $13,010,050    12,766,073 
Liabilities and Equity          
Current liabilities:          
Accounts payable  $62,213    39,901 
Accounts payable, related parties   111,066    107,293 
Accrued liabilities   402,591    312,832 
Revenue distributions payable   315,932    364,053 
Derivative instruments   31,792    34,019 
Short-term lease liabilities   493,894    514,292 
Deferred revenue, VPP   25,264    24,390 
Other current liabilities   3,175    7,949 
Total current liabilities   1,445,927    1,404,729 
Long-term liabilities:          
Long-term debt   1,489,230    1,098,669 
Deferred income tax liability, net   693,341    795,816 
Derivative instruments   17,233    15,635 
Long-term lease liabilities   2,050,337    1,878,718 
Deferred revenue, VPP   35,448    23,794 
Other liabilities   62,001    64,205 
Total liabilities   5,793,517    5,281,566 
Commitments and contingencies          
Equity:          
Stockholders' equity:          
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued   —    — 
Common stock, $0.01 par value; authorized - 1,000,000 shares; 311,165 and 309,869 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively   3,111    3,098 
Additional paid-in capital   5,909,373    5,867,226 
Retained earnings   1,109,166    1,435,298 
Total stockholders' equity   7,021,650    7,305,622 
Noncontrolling interests   194,883    178,885 
Total equity   7,216,533    7,484,507 
Total liabilities and equity  $13,010,050    12,766,073 

 

9

 

 

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(In thousands, except per share amounts)

 

   Three Months Ended June 30, 
   2024   2025 
Revenue and other:          
Natural gas sales  $374,568    688,753 
Natural gas liquids sales   489,191    480,757 
Oil sales   63,458    33,700 
Commodity derivative fair value gains (losses)   (5,585)   53,409 
Marketing   49,418    33,743 
Amortization of deferred revenue, VPP   6,739    6,298 
Other revenue and income   865    833 
Total revenue   978,654    1,297,493 
Operating expenses:          
Lease operating   29,759    37,244 
Gathering, compression, processing and transportation   663,442    701,722 
Production and ad valorem taxes   41,933    34,830 
Marketing   70,807    51,988 
Exploration   643    648 
General and administrative (including equity-based compensation expense of $17,151 and $15,855 in 2024 and 2025, respectively)   59,428    57,183 
Depletion, depreciation and amortization   188,633    187,589 
Impairment of property and equipment   313    6,297 
Accretion of asset retirement obligations   780    942 
Contract termination, loss contingency and settlements   3,009    13,596 
Loss (gain) on sale of assets   (18)   546 
Other operating expense   11    25 
Total operating expenses   1,058,740    1,092,610 
Operating income (loss)   (80,086)   204,883 
Other income (expense):          
Interest expense, net   (32,681)   (19,954)
Equity in earnings of unconsolidated affiliate   20,881    30,563 
Loss on early extinguishment of debt   —    (729)
Total other income (expense)   (11,800)   9,880 
Income (loss) before income taxes   (91,886)   214,763 
Income tax benefit (expense)   17,288    (48,190)
Net income (loss) and comprehensive income (loss) including noncontrolling interests   (74,598)   166,573 
Less: net income and comprehensive income attributable to noncontrolling interests   5,208    9,988 
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation  $(79,806)   156,585 
           
Net income (loss) per common share—basic  $(0.26)   0.50 
Net income (loss) per common share—diluted  $(0.26)   0.50 
           
Weighted average number of common shares outstanding:          
Basic   310,806    310,323 
Diluted   310,806    313,184 

 

10

 

 

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

 

   Six Months Ended June 30, 
   2024   2025 
Cash flows provided by (used in) operating activities:          
Net income (loss) including noncontrolling interests  $(39,926)   386,039 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depletion, depreciation, amortization and accretion   380,664    375,822 
Impairments   5,503    11,915 
Commodity derivative fair value losses (gains)   (3,861)   18,262 
Gains (losses) on settled commodity derivatives   7,262    (17,371)
Deferred income tax expense (benefit)   (11,202)   102,475 
Equity-based compensation expense   33,228    31,000 
Equity in earnings of unconsolidated affiliate   (44,228)   (59,224)
Dividends of earnings from unconsolidated affiliate   62,569    62,628 
Amortization of deferred revenue   (13,477)   (12,528)
Amortization of debt issuance costs and other   1,328    823 
Settlement of asset retirement obligations   (1,680)   (71)
Contract termination, loss contingency and settlements   3,006    12,001 
Loss (gain) on sale of assets   170    (29)
Loss on early extinguishment of debt   —    3,628 
Changes in current assets and liabilities:          
Accounts receivable   19,067    2,763 
Accrued revenue   38,354    85,718 
Prepaid expenses and other current assets   6,547    (8,382)
Accounts payable including related parties   6,616    (15,139)
Accrued liabilities   (14,830)   (85,528)
Revenue distributions payable   (32,406)   48,121 
Other current liabilities   2,405    7,174 
Net cash provided by operating activities   405,109    950,097 
Cash flows provided by (used in) investing activities:          
Additions to unproved properties   (43,571)   (56,640)
Drilling and completion costs   (362,228)   (356,334)
Additions to other property and equipment   (9,035)   (1,580)
Proceeds from asset sales   418    11,522 
Change in other assets   291    (2,348)
Net cash used in investing activities   (414,125)   (405,380)
Cash flows provided by (used in) financing activities:          
Repurchases of common stock   —    (84,966)
Repayment of senior notes   —    (141,733)
Borrowings on Credit Facility   1,950,000    2,291,800 
Repayments on Credit Facility   (1,871,200)   (2,545,000)
Distributions to noncontrolling interests in Martica Holdings LLC   (42,899)   (37,481)
Employee tax withholding for settlement of equity-based compensation awards   (26,355)   (26,618)
Other   (530)   (719)
Net cash provided by (used in) financing activities   9,016    (544,717)
Net increase in cash and cash equivalents   —    — 
Cash and cash equivalents, beginning of period   —    — 
Cash and cash equivalents, end of period  $—    — 
           
Supplemental disclosure of cash flow information:          
Cash paid during the period for interest  $63,512    48,043 
Decrease in accounts payable and accrued liabilities for additions to property and equipment  $(2,967)   (29,581)

 

11

 

 

The following table sets forth selected financial data for the three months ended June 30, 2024 and 2025 (in thousands):

 

   (Unaudited)         
   Three Months Ended   Amount of     
   June 30,   Increase   Percent 
   2024   2025   (Decrease)   Change 
Revenue:                    
Natural gas sales  $374,568    688,753    314,185    84%
Natural gas liquids sales   489,191    480,757    (8,434)   (2)%
Oil sales   63,458    33,700    (29,758)   (47)%
Commodity derivative fair value gains (losses)   (5,585)   53,409    58,994    * 
Marketing   49,418    33,743    (15,675)   (32)%
Amortization of deferred revenue, VPP   6,739    6,298    (441)   (7)%
Other revenue and income   865    833    (32)   (4)%
Total revenue   978,654    1,297,493    318,839    33%
Operating expenses:                    
Lease operating   29,759    37,244    7,485    25%
Gathering and compression   222,139    236,830    14,691    7%
Processing   269,985    284,040    14,055    5%
Transportation   171,318    180,852    9,534    6%
Production and ad valorem taxes   41,933    34,830    (7,103)   (17)%
Marketing   70,807    51,988    (18,819)   (27)%
Exploration   643    648    5    1%
General and administrative (excluding equity-based compensation)   42,277    41,328    (949)   (2)%
Equity-based compensation   17,151    15,855    (1,296)   (8)%
Depletion, depreciation and amortization   188,633    187,589    (1,044)   (1)%
Impairment of property and equipment   313    6,297    5,984    1,912%
Accretion of asset retirement obligations   780    942    162    21%
Contract termination and loss contingency   3,009    13,596    10,587    352%
Loss (gain) on sale of assets   (18)   546    564    * 
Other operating expense   11    25    14    127%
Total operating expenses   1,058,740    1,092,610    33,870    3%
Operating income (loss)   (80,086)   204,883    284,969    * 
Other earnings (expenses):                    
Interest expense, net   (32,681)   (19,954)   12,727    (39)%
Equity in earnings of unconsolidated affiliate   20,881    30,563    9,682    46%
Loss on early extinguishment of debt   —    (729)   (729)   * 
Total other income (expense)   (11,800)   9,880    21,680    * 
Income (loss) before income taxes   (91,886)   214,763    306,649    * 
Income tax (expense) benefit   17,288    (48,190)   (65,478)   * 
Net income (loss) and comprehensive income (loss) including noncontrolling interests   (74,598)   166,573    241,171    * 
Less: net income and comprehensive income attributable to noncontrolling interests   5,208    9,988    4,780    92%
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation  $(79,806)   156,585    236,391    * 
                     
Adjusted EBITDAX  $151,402    379,464    228,062    151%

 

* Not meaningful

 

12

 

 

The following table sets forth selected financial data for the three months ended June 30, 2024 and 2025:

 

   (Unaudited)         
   Three Months Ended   Amount of     
   June 30,   Increase   Percent 
   2024   2025   (Decrease)   Change 
Production data (1) (2):                    
Natural gas (Bcf)   196    203    7    4%
C2 Ethane (MBbl)   7,811    6,924    (887)   (11)%
C3+ NGLs (MBbl)   10,514    10,608    94    1%
Oil (MBbl)   952    672    (280)   (29)%
Combined (Bcfe)   311    312    1    * 
Daily combined production (MMcfe/d)   3,420    3,430    10    * 
Average prices before effects of derivative settlements (3):                    
Natural gas (per Mcf)  $1.92    3.39    1.47    77%
C2 Ethane (per Bbl) (4)  $8.42    11.34    2.92    35%
C3+ NGLs (per Bbl)  $40.27    37.92    (2.35)   (6)%
Oil (per Bbl)  $66.66    50.15    (16.51)   (25)%
Weighted Average Combined (per Mcfe)  $2.98    3.85    0.87    29%
Average realized prices after effects of derivative settlements (3):                    
Natural gas (per Mcf)  $1.94    3.36    1.42    73%
C2 Ethane (per Bbl) (4)  $8.42    11.34    2.92    35%
C3+ NGLs (per Bbl)  $40.44    37.92    (2.52)   (6)%
Oil (per Bbl)  $66.50    50.15    (16.35)   (25)%
Weighted Average Combined (per Mcfe)  $3.00    3.83    0.83    28%
Average costs (per Mcfe):                    
Lease operating  $0.10    0.12    0.02    20%
Gathering and compression  $0.71    0.76    0.05    7%
Processing  $0.87    0.91    0.04    5%
Transportation  $0.55    0.58    0.03    5%
Production and ad valorem taxes  $0.13    0.11    (0.02)   (15)%
Marketing expense, net  $0.07    0.06    (0.01)   (14)%
General and administrative (excluding equity-based compensation)  $0.14    0.13    (0.01)   (7)%
Depletion, depreciation, amortization and accretion  $0.61    0.60    (0.01)   (2)%

 

* Not meaningful

 

(1)Production data excludes volumes related to VPP transaction.

 

(2)Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate of the equivalent energy content of the products and may not reflect their relative economic value.

 

(3)Average sales prices shown in the table reflect both the before and after effects of the Company’s settled commodity derivatives. The calculation of such after effects includes gains on settlements of commodity derivatives, which do not qualify for hedge accounting because the Company does not designate or document them as hedges for accounting purposes. Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate of the equivalent energy content of the products and does not necessarily reflect their relative economic value.

 

(4)The average realized price for the three months ended June 30, 2024 and 2025 includes $0.1 million and $0.5 million, respectively, of proceeds related to a take-or-pay contract. Excluding the effect of these proceeds, the average realized price for ethane before and after the effects of derivatives for the three months ended June 30, 2024 and 2025 would have been $8.41 per Bbl and $11.27 per Bbl, respectively.

 

13