10-Q

Fee

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                   

Commission file number: 001-36120

ANTERO RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	80-0162034
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
1615 Wynkoop Street, Denver, Colorado	80202
(Address of principal executive offices)	(Zip Code)

(303) 357-7310

(Registrant’s telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	AR	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes  ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒	Accelerated Filer ☐
Non-accelerated Filer ☐	Smaller Reporting Company ☐
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) ☐ Yes  ☒ No

The registrant had 300,135,248 shares of common stock outstanding as of April 21, 2023.

TABLE OF CONTENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS		1
PART I—FINANCIAL INFORMATION		3
Item 1.	Financial Statements (Unaudited)	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	41
Item 4.	Controls and Procedures	43
PART II—OTHER INFORMATION		44
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities	44
Item 4.	Mine Safety Disclosures	44
Item 6.	Exhibits	45
SIGNATURES		46

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Some of the information in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. When considering these forward-looking statements, investors should keep in mind the risk factors and other cautionary statements in this Quarterly Report on Form 10-Q. 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. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:

● our ability to execute our business strategy;

● our production and oil and gas reserves;

● our financial strategy, liquidity and capital required for our development program;

● our ability to obtain debt or equity financing on satisfactory terms to fund acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness;

● our ability to execute our return of capital program;

● natural gas, natural gas liquids (“NGLs”) and oil prices;

● impacts of geopolitical events, including the Russia-Ukraine conflict, and world health events, including the coronavirus (“COVID-19”) pandemic;

● timing and amount of future production of natural gas, NGLs and oil;

● our hedging strategy and results;

● our ability to meet minimum volume commitments and to utilize or monetize our firm transportation commitments;

● our future drilling plans;

● our projected well costs;

● competition;

● government regulations and changes in laws;

● pending legal or environmental matters;

● marketing of natural gas, NGLs and oil;

● leasehold or business acquisitions;

● costs of developing our properties;

● operations of Antero Midstream Corporation (“Antero Midstream”);

● our ability to achieve our greenhouse gas reduction targets and the costs associated therewith;

● general economic conditions;

● credit markets;

1

● uncertainty regarding our future operating results; and

● our other plans, objectives, expectations and intentions contained in this Quarterly Report on Form 10-Q.

We caution investors 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 our 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, 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 and world health events (including the COVID-19 pandemic), cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described or referenced under the heading “Item 1A. Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), which is on file with the Securities and Exchange Commission (“SEC”).

Reserve engineering is a process of estimating underground accumulations of natural gas, NGLs and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas, NGLs and oil that are ultimately recovered.

Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.

2

PART I—FINANCIAL INFORMATION

ANTERO RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

			(Unaudited)
	December 31,		March 31,
	2022		2023
Assets
Current assets:
Accounts receivable	$	35,488		30,207
Accrued revenue		707,685		379,337
Derivative instruments		1,900		6,242
Prepaid expenses and other current assets		42,452		21,856
Total current assets		787,525		437,642
Property and equipment:
Oil and gas properties, at cost (successful efforts method):
Unproved properties		997,715		1,013,780
Proved properties		13,234,777		13,450,257
Gathering systems and facilities		5,802		5,882
Other property and equipment		83,909		87,091
		14,322,203		14,557,010
Less accumulated depletion, depreciation and amortization		(4,683,399)		(4,771,093)
Property and equipment, net		9,638,804		9,785,917
Operating leases right-of-use assets		3,444,331		3,401,994
Derivative instruments		9,844		9,825
Investment in unconsolidated affiliate		220,429		219,515
Other assets		17,106		16,253
Total assets	$	14,118,039		13,871,146
Liabilities and Equity
Current liabilities:
Accounts payable	$	77,543		83,685
Accounts payable, related parties		80,708		99,784
Accrued liabilities		461,788		318,084
Revenue distributions payable		468,210		381,880
Derivative instruments		97,765		28,716
Short-term lease liabilities		556,636		553,532
Deferred revenue, VPP		30,552		29,757
Other current liabilities		1,707		2,103
Total current liabilities		1,774,909		1,497,541
Long-term liabilities:
Long-term debt		1,183,476		1,312,046
Deferred income tax liability, net		759,861		822,010
Derivative instruments		345,280		75,854
Long-term lease liabilities		2,889,854		2,851,571
Deferred revenue, VPP		87,813		81,075
Other liabilities		59,692		60,657
Total liabilities		7,100,885		6,700,754
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; 297,393 shares issued and 297,359 outstanding as of December 31, 2022, and 299,321 shares issued and outstanding as of March 31, 2023		2,974		2,993
Additional paid-in capital		5,838,848		5,806,031
Retained earnings		913,896		1,102,340
Treasury stock, at cost; 34 shares and zero shares as of December 31, 2022 and March 31, 2023, respectively		(1,160)		—
Total stockholders' equity		6,754,558		6,911,364
Noncontrolling interests		262,596		259,028
Total equity		7,017,154		7,170,392
Total liabilities and equity	$	14,118,039		13,871,146

See accompanying notes to unaudited condensed consolidated financial statements.

3

ANTERO RESOURCES CORPORATION

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

(In thousands, except per share amounts)

	Three Months Ended March 31,
	2022		2023
Revenue and other:
Natural gas sales	$	995,792		668,315
Natural gas liquids sales		660,305		495,435
Oil sales		63,294		51,811
Commodity derivative fair value gains (losses)		(1,011,380)		126,192
Marketing		69,038		58,529
Amortization of deferred revenue, VPP		9,272		7,533
Other revenue and income		519		533
Total revenue		786,840		1,408,348
Operating expenses:
Lease operating		17,780		29,321
Gathering, compression, processing and transportation		590,278		645,172
Production and ad valorem taxes		52,808		49,276
Marketing		98,896		81,361
Exploration and mine expenses		898		763
General and administrative (including equity-based compensation expense of $4,649 and $13,018 in 2022 and 2023, respectively)		35,691		57,261
Depletion, depreciation and amortization		168,388		167,582
Impairment of property and equipment		22,462		15,560
Accretion of asset retirement obligations		2,444		878
Contract termination		8		29,550
Loss (gain) on sale of assets		1,786		(91)
Other operating expense		—		225
Total operating expenses		991,439		1,076,858
Operating income (loss)		(204,599)		331,490
Other income (expense):
Interest expense, net		(37,713)		(25,700)
Equity in earnings of unconsolidated affiliate		25,178		17,681
Loss on early extinguishment of debt		(10,654)		—
Loss on convertible note inducement		—		(86)
Total other expense		(23,189)		(8,105)
Income (loss) before income taxes		(227,788)		323,385
Income tax benefit (expense)		53,092		(62,183)
Net income (loss) and comprehensive income (loss) including noncontrolling interests		(174,696)		261,202
Less: net income (loss) and comprehensive income (loss) attributable to noncontrolling interests		(18,277)		47,771
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation	$	(156,419)		213,431
Income (loss) per share—basic	$	(0.50)		0.72
Income (loss) per share—diluted	$	(0.50)		0.69
Weighted average number of shares outstanding:
Basic		314,081		296,763
Diluted		314,081		311,846

See accompanying notes to unaudited condensed consolidated financial statements.

4

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(In thousands)

					Additional		Retained Earnings
	Common Stock				Paid-in		(Accumulated		Treasury Stock				Noncontrolling		Total
	Shares		Amount		Capital		Deficit)		Shares		Amount		Interests		Equity
Balances, December 31, 2021		313,930	$	3,139		6,371,398		(617,377)		—	$	—		308,932		6,066,092
Equity component of 2026 Convertible Notes, net		—		—		(24,411)		3,229		—		—		—		(21,182)
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes		780		8		(10,385)		—		—		—		—		(10,377)
Repurchases and retirements of common stock		(3,690)		(37)		(74,745)		(25,263)		—		—				(100,045)
Equity-based compensation		—		—		4,649		—		—		—		—		4,649
Distributions to noncontrolling interests		—		—		—		—		—		—		(35,757)		(35,757)
Net loss and comprehensive loss		—		—		—		(156,419)				—		(18,277)		(174,696)
Balances, March 31, 2022		311,020	$	3,110		6,266,506		(795,830)		—	$	—		254,898		5,728,684
Balances, December 31, 2022		297,393	$	2,974		5,838,848		913,896		(34)	$	(1,160)		262,596		7,017,154
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes		514		5		(11,464)		—		—		—		—		(11,459)
Conversion of 2026 Convertible Notes		4,030		40		17,132		—								17,172
Repurchases and retirements of common stock		(2,616)		(26)		(51,503)		(24,987)		34		1,160		—		(75,356)
Equity-based compensation		—		—		13,018		—		—		—		—		13,018
Distributions to noncontrolling interests		—		—		—		—		—		—		(51,339)		(51,339)
Net income and comprehensive income		—		—		—		213,431		—		—		47,771		261,202
Balances, March 31, 2023		299,321	$	2,993		5,806,031		1,102,340		—	$	—		259,028		7,170,392

See accompanying notes to unaudited condensed consolidated financial statements.

5

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Three Months Ended March 31,
	2022		2023
Cash flows provided by (used in) operating activities:
Net income (loss) including noncontrolling interests	$	(174,696)		261,202
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation, amortization and accretion		170,832		168,460
Impairments		22,462		15,560
Commodity derivative fair value losses (gains)		1,011,380		(126,192)
Losses on settled commodity derivatives		(285,386)		(14,268)
Payments for derivative monetizations		—		(202,339)
Deferred income tax expense (benefit)		(57,383)		62,149
Equity-based compensation expense		4,649		13,018
Equity in earnings of unconsolidated affiliate		(25,178)		(17,681)
Dividends of earnings from unconsolidated affiliate		31,285		31,285
Amortization of deferred revenue		(9,272)		(7,533)
Amortization of debt issuance costs, debt discount and debt premium		1,451		871
Settlement of asset retirement obligations		(886)		(308)
Loss (gain) on sale of assets		1,786		(91)
Loss on early extinguishment of debt		10,654		—
Loss on convertible note inducement		—		86
Changes in current assets and liabilities:
Accounts receivable		33,244		5,282
Accrued revenue		(69,442)		328,349
Other current assets		(2,952)		20,596
Accounts payable including related parties		37,664		34,604
Accrued liabilities		(94,456)		(143,346)
Revenue distributions payable		(36,526)		(86,331)
Other current liabilities		(3,557)		529
Net cash provided by operating activities		565,673		343,902
Cash flows provided by (used in) investing activities:
Additions to unproved properties		(23,789)		(73,527)
Drilling and completion costs		(184,557)		(273,154)
Additions to other property and equipment		(7,530)		(4,631)
Proceeds from asset sales		195		91
Change in other assets		564		417
Net cash used in investing activities		(215,117)		(350,804)
Cash flows provided by (used in) financing activities:
Repurchases of common stock		(100,045)		(75,356)
Repayment of senior notes		(591,943)		—
Borrowings on bank credit facilities, net		387,700		145,300
Convertible note inducement		—		(86)
Distributions to noncontrolling interests in Martica Holdings LLC		(35,757)		(51,339)
Employee tax withholding for settlement of equity compensation awards		(10,377)		(11,459)
Other		(134)		(158)
Net cash provided by (used in) financing activities		(350,556)		6,902
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	$	80,454		43,239
Decrease in accounts payable and accrued liabilities for additions to property and equipment	$	(14,449)		(9,918)

See accompanying notes to unaudited condensed consolidated financial statements.

6

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(1) Organization

Antero Resources Corporation (individually referred to as “Antero” and together with its consolidated subsidiaries “Antero Resources,” or the “Company”) is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties in the Appalachian Basin in West Virginia and Ohio. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. The Company’s corporate headquarters is located in Denver, Colorado.

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2022 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position and accounting policies. The Company’s December 31, 2022 consolidated financial statements were included in Antero Resources’ 2022 Annual Report on Form 10-K, which was filed with the SEC.

These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2022 and March 31, 2023, results of operations and cash flows for the three months ended March 31, 2022 and 2023. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments and other factors.

(b) Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, its wholly owned subsidiaries and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements.

(c) Cash and Cash Equivalents

The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $28 million and $43 million, respectively. As of March 31, 2023, the book overdrafts included within accounts payable and revenue distributions payable were $46 million and $31 million, respectively.

(d) Income (Loss) Per Common Share

Income (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period. Income (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method. The Company includes restricted stock unit (“RSU”)

7

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

awards, performance share unit (“PSU”) awards and stock options in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effects of all equity awards and the 2026 Convertible Notes are anti-dilutive.

The following is a reconciliation of the Company’s income (loss) attributable to common stockholders for basic and diluted income (loss) per share (in thousands):

	Three Months Ended March 31,
	2022		2023
Net income (loss) attributable to Antero Resources Corporation—common shareholders	$	(156,419)		213,431
Add: Interest expense for 2026 Convertible Notes		—		616
Less: Tax-effect of interest expense for 2026 Convertible Notes		—		(132)
Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions	$	(156,419)		213,915
Income (loss) per share—basic	$	(0.50)		0.72
Income (loss) per share—diluted	$	(0.50)		0.69
Weighted average common shares outstanding—basic		314,081		296,763
Weighted average common shares outstanding—diluted		314,081		311,846

The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):

	Three Months Ended March 31,
	2022	2023
Basic weighted average number of shares outstanding	314,081	296,763
Add: Dilutive effect of RSUs	—	2,150
Add: Dilutive effect of PSUs	—	1,060
Add: Dilutive effect of 2026 Convertible Notes	—	11,873
Diluted weighted average number of shares outstanding	314,081	311,846
Weighted average number of outstanding securities excluded from calculation of diluted income (loss) per common share (1):
RSUs	4,878	969
PSUs	3,443	414
Stock options	351	324
2026 Convertible Notes	18,778	—

(1) The potential dilutive effects of these awards were excluded from the computation of income (loss) per common share—diluted because the inclusion of these awards would have been anti-dilutive.

(e) Recently Issued Accounting Standard

Convertible Debt Instruments

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the cash conversion model in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options, that require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. It is effective for interim and annual reporting periods beginning after December 31,

8

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

2021. The Company adopted the standard effective January 1, 2022 under the modified retrospective transition method, which impacts only the debt instruments outstanding on the adoption date.

Upon adoption of this new standard, the Company reclassified $24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $27 million, reduced deferred income tax liability by $6 million and reduced accumulated deficit by $3 million as of January 1, 2022. Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2023 is based on an effective interest rate of 4.9% as compared to 15.1% prior to the adoption of this new standard.

(3) Transactions

(a) Conveyance of Overriding Royalty Interest

On June 15, 2020, the Company announced the consummation of a transaction with an affiliate of Sixth Street Partners, LLC (“Sixth Street”) relating to certain overriding royalty interests across the Company’s existing asset base (the “ORRIs”).

The ORRIs include an overriding royalty interest of 1.25% in all of the Company’s operated proved developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”) as of April 1, 2020, and an overriding royalty interest of 3.75% in all of the Company’s undeveloped properties in West Virginia and Ohio (the “Development Override”) as of April 1, 2020. Wells turned to sales after April 1, 2020 and prior to the later of (a) the date on which the Company turns to sales 2.2 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override and (b) the earlier of (i) April 1, 2023 and (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override, are subject to the Development Override. As of April 1, 2023, the Company had turned to sales over 2.2 million lateral feet and less than 3.82 million lateral feet. As a result, wells turned to sales on or after April 1, 2023 will not be subject to the ORRIs.

The ORRIs also include an additional overriding royalty interest of 2.00% of the Company’s working interest in the properties underlying the Initial PDP Override (the “Incremental Override”). The Incremental Override (or a portion thereof, as applicable) may be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs are achieved through March 31, 2023. Any portion of the Incremental Override that may not be re-conveyed to the Company based on the Company failing to achieve such production volumes through March 31, 2023 will remain with Martica.

Prior to Sixth Street achieving an internal rate of return of 13% and 1.5x cash-on-cash return (the “Hurdle”), Sixth Street will receive all distributions in respect of the Initial PDP Override and the Development Override, and the Company will receive all distributions in respect of the Incremental Override, unless certain production targets are not achieved, in which case Sixth Street will receive some or all of the distributions in respect of the Incremental Override. Following Sixth Street achieving the Hurdle, the Company will receive 85% of the distributions in respect of the ORRIs to which Sixth Street was entitled immediately prior to the Hurdle being achieved.

(b) Drilling Partnership

On February 17, 2021, Antero Resources announced the formation of a drilling partnership with QL Capital Partners (“QL”), an affiliate of Quantum Energy Partners, for the Company’s 2021 through 2024 drilling program. Under the terms of the arrangement, each year in which QL participates represents an annual tranche, and QL will be conveyed a working interest in any wells spud by Antero Resources during such tranche year. For 2021, 2022 and 2023, Antero Resources and QL agreed to the estimated internal rate of return (“IRR”) of the Company’s capital budget for each annual tranche, and QL agreed to participate in the 2021, 2022, and 2023 tranches. For 2024, Antero Resources will propose a capital budget and estimated IRR for all wells to be spud during such year and, subject to the mutual agreement of the parties that the estimated IRR for the year exceeds a specified return, QL will be obligated to participate in such tranche. Antero Resources develops and manages the drilling program associated with each tranche, including the selection of wells. Additionally, for each annual tranche in which QL participates, Antero Resources and QL will enter into assignments, bills of sale and conveyances pursuant to which QL will be conveyed a proportionate working interest percentage in each well spud in that year, which conveyances will not be subject to any reversion.

Under the terms of the arrangement, QL funded 20% and 15% of development capital for wells spud in 2021 and 2022, respectively, and will fund development capital of (i) 15% for wells spud in 2023 and (ii) if they participate in 2024,

9

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

between 15% and 20% for wells spud in 2024, which funding amounts represent QL’s proportionate working interest in such wells. Additionally, Antero Resources may receive a carry in the form of a one-time payment from QL for each annual tranche if the IRR for such tranche exceeds certain specified returns, which will be determined no earlier than October 31 and no later than December 1 following the end of each tranche year. During the year ended December 31, 2022, the Company received a carry of $29 million attributable to the 2021 tranche. All of the wells spud during each calendar year period will be a separate annual tranche. Capital costs in excess of, and cost savings below, a specified percentage of budgeted amounts for each annual tranche will be for Antero Resources’ account. Subject to the preceding sentence, for any wells included in a tranche, QL is obligated and responsible for its working interest share of costs and liabilities, and is entitled to its working interest share of revenues, associated with such wells for the life of such wells.

The Company has accounted for the drilling partnership as a conveyance under ASC 932, Extractive Activities—Oil and Gas, and such conveyances are recorded in the unaudited condensed consolidated financial statements as QL obtains its proportionate working interest in each well. No gain or loss was recognized for the interests conveyed during the three months ended March 31, 2022 and 2023.

(4) Revenue

(a) Disaggregation of Revenue

The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments.

	Three Months Ended March 31,
	2022		2023		Reportable Segment
Revenues from contracts with customers:
Natural gas sales	$	995,792		668,315	Exploration and production
Natural gas liquids sales (ethane)		67,063		72,050	Exploration and production
Natural gas liquids sales (C3+ NGLs)		593,242		423,385	Exploration and production
Oil sales		63,294		51,811	Exploration and production
Marketing		69,038		58,529	Marketing
Other revenue		—		175	Exploration and production
Total revenue from contracts with customers		1,788,429		1,274,265
Income (loss) from derivatives, deferred revenue and other sources, net		(1,001,589)		134,083
Total revenue	$	786,840		1,408,348

(b) Transaction Price Allocated to Remaining Performance Obligations

For the Company’s product sales that have a contract term greater than one year, the Company utilized the practical expedient in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which does not require the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s product sales contracts, each unit of product delivered to the customer represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. For the Company’s product sales that have a contract term of one year or less, the Company utilized the practical expedient in ASC 606, which does not require the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

(c) Contract Balances

Under the Company’s sales contracts, the Company invoices customers after its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. As of December 31, 2022 and March 31, 2023, the Company’s receivables from contracts with customers were $708 million and $379 million, respectively.

10

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(5) Equity Method Investment

(a) Summary of Equity Method Investment

As of March 31, 2023, Antero owned 29.0% of Antero Midstream’s common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting.

The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands):

Balance as of December 31, 2022 (1)	$	220,429
Equity in earnings of unconsolidated affiliate		17,681
Dividends from unconsolidated affiliate		(31,285)
Elimination of intercompany profit		12,690
Balance as of March 31, 2023 (1)	$	219,515

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2022 and March 31, 2023 was $1.5 billion based on the quoted market share price of Antero Midstream.

(6) Accrued Liabilities

Accrued liabilities consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Capital expenditures	$	57,361		44,213
Gathering, compression, processing and transportation expenses		162,783		159,375
Marketing expenses		61,118		27,073
Interest expense, net		31,892		13,582
Production and ad valorem taxes		32,536		36,861
General and administrative expense		32,477		20,260
Derivative settlements payable		53,732		411
Other		29,889		16,309
Total accrued liabilities	$	461,788		318,084

(7) Long-Term Debt

Long-term debt consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Credit Facility (a)	$	34,800		180,100
8.375% senior notes due 2026 (c)		96,870		96,870
7.625% senior notes due 2029 (d)		407,115		407,115
5.375% senior notes due 2030 (e)		600,000		600,000
4.25% convertible senior notes due 2026 (f)		56,932		39,426
Total principal		1,195,717		1,323,511
Unamortized debt issuance costs		(12,241)		(11,465)
Long-term debt	$	1,183,476		1,312,046

(a) Senior Secured Revolving Credit Facility

Antero Resources has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of banks. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations. As of December 31, 2022 and March 31, 2023, the Credit Facility had a borrowing base of $3.5 billion and lender commitments of $1.5 billion. The borrowing base was re-

11

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

affirmed in the semi-annual redetermination in April 2023. The maturity date of the Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is 180 days prior to the earliest stated redemption date of any series of the Company’s then outstanding senior notes. As of March 31, 2023, the Credit Facility had an available borrowing capacity of $816 million.

The Credit Facility contains requirements with respect to leverage and current ratios, and certain covenants, including restrictions on our ability to incur debt and limitations on our ability to pay dividends unless certain customary conditions are met, in each case, subject to customary carve-outs and exceptions. Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2022 and March 31, 2023.

The Credit Facility provides for borrowing at either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the Credit Facility). The Credit Facility provides for interest only payments until maturity at which time all outstanding borrowings are due. Interest is payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of borrowing, plus an applicable margin rate under the Credit Facility. Interest at the time of borrowing is determined with reference to the Antero Resources’ then-current leverage ratio subject to certain exceptions. Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from 0.375% to 0.500% with respect to the Credit Facility, determined with reference to borrowing base utilization, subject to certain exceptions based on the leverage ratio then in effect. The Credit Facility includes fall away covenants, lower interest rates and reduced collateral requirements that Antero Resources may elect if Antero Resources is assigned an Investment Grade Rating (as defined in the Credit Facility).

As of December 31, 2022, Antero Resources had an outstanding balance under the Credit Facility of $35 million, with a weighted average interest rate of 6.42%, and outstanding letters of credit of $504 million. As of March 31, 2023, Antero Resources had an outstanding balance under the Credit Facility of $180 million, with a weighted average interest rate of 6.91%, and outstanding letters of credit of $504 million.

(b) 5.00% Senior Notes Due 2025

On December 21, 2016, Antero Resources issued $600 million of 5.00% senior notes due March 1, 2025 (the “2025 Notes”) at par. The Company repurchased or otherwise redeemed all of the 2025 Notes between 2020 and the first quarter of 2022, and the 2025 Notes were fully retired as of March 1, 2022. Interest on the 2025 Notes was payable on March 1 and September 1 of each year. See “—Debt Repurchase Program” below for more information.

(c) 8.375% Senior Notes Due 2026

On January 4, 2021, Antero Resources issued $500 million of 8.375% senior notes due July 15, 2026 (the “2026 Notes”) at par. The Company redeemed or otherwise repurchased $403 million principal amount of the 2026 Notes during 2021 and 2022, and as of March 31, 2023, $97 million principal amount of the 2026 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2026 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2026 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2026 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2026 Notes is payable on January 15 and July 15 of each year. Antero Resources may redeem all or part of the 2026 Notes at any time on or after January 15, 2024 at redemption prices ranging from 104.188% on or after January 15, 2024 to 100.00% on or after January 15, 2026. At any time prior to January 15, 2024, Antero Resources may also redeem the 2026 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2026 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2026 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2026 Notes, plus accrued and unpaid interest.

(d) 7.625% Senior Notes Due 2029

On January 26, 2021, Antero Resources issued $700 million of 7.625% senior notes due February 1, 2029 (the “2029 Notes”) at par. The Company redeemed or otherwise repurchased $293 million principal amount of the 2029 Notes during 2021 and 2022, and as of March 31, 2023, $407 million principal amount of the 2029 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2029 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2029 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2029 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its

12

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

future restricted subsidiaries. Interest on the 2029 Notes is payable on February 1 and August 1 of each year. Antero Resources may redeem all or part of the 2029 Notes at any time on or after February 1, 2024 at redemption prices ranging from 103.813% on or after February 1, 2024 to 100.00% on or after February 1, 2027. In addition, on or before February 1, 2024, Antero Resources may redeem up to 35% of the aggregate principal amount of the 2029 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 107.625% of the principal amount of the 2029 Notes, plus accrued and unpaid interest, which option the Company partially exercised on October 18, 2021 with its notice to redeem $116 million aggregate principal amount of outstanding 2029 Notes. At any time prior to February 1, 2024, Antero Resources may also redeem the 2029 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2029 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2029 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2029 Notes, plus accrued and unpaid interest.

(e) 5.375% Senior Notes Due 2030

On June 1, 2021, Antero Resources issued $600 million of 5.375% senior notes due March 1, 2030 (the “2030 Notes”) at par. The 2030 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2030 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2030 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2030 Notes is payable on March 1 and September 1 of each year. Antero Resources may redeem all or part of the 2030 Notes at any time on or after March 1, 2025 at redemption prices ranging from 102.688% on or after March 1, 2025 to 100.00% on or after March 1, 2028. In addition, on or before March 1, 2025, Antero Resources may redeem up to 35% of the aggregate principal amount of the 2030 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 105.375% of the principal amount of the 2030 Notes, plus accrued and unpaid interest. At any time prior to March 1, 2025, Antero Resources may also redeem the 2030 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2030 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2030 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2030 Notes, plus accrued and unpaid interest.

(f) 4.25% Convertible Senior Notes Due 2026

On August 21, 2020, Antero Resources issued $250 million in aggregate principal amount of 4.25% convertible senior notes due September 1, 2026 (the “2026 Convertible Notes”). On September 2, 2020, Antero Resources issued an additional $37.5 million of the 2026 Convertible Notes. Proceeds from the issuance of the 2026 Convertible Notes totaled $278.5 million, net of initial purchasers’ fees and issuance cost of $9 million. The Company extinguished $206 million principal amount of the 2026 Convertible Notes in 2021. In addition, between 2022 and the first quarter of 2023, $43 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms or induced into conversion by the Company. See “—Conversions and Inducements,” for more information. As of March 31, 2023, $39 million principal amount of the 2026 Convertible Notes remained outstanding. The 2026 Convertible Notes were issued pursuant to an indenture and are senior, unsecured obligations of Antero Resources. The 2026 Convertible Notes bear interest at a fixed rate of 4.25% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Each capitalized term used in this subsection but not otherwise defined in this Quarterly Report on Form 10-Q has the meaning as set forth in the indenture governing the 2026 Convertible Notes.

The initial conversion rate is 230.2026 shares of Antero Resources’ common stock per $1,000 principal amount of 2026 Convertible Notes, subject to adjustment upon the occurrence of specified events. As of March 31, 2023, the if-converted value of the 2026 Convertible Notes was $210 million, which exceeded the principal amount of the 2026 Convertible Notes by $170 million. The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted. Before May 1, 2026, noteholders will have the right to convert their 2026 Convertible Notes only upon the occurrence of the following events:

● during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2020, if the Last Reported Sale Price per share of Antero Resources’ common stock exceeds 130% of the Conversion Price for each of at least 20 Trading Days (whether or not consecutive) during

13

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter (the “Stock Price Condition”);

● during the five consecutive Business Days immediately after any 10 consecutive Trading Day period (such 10 consecutive Trading Day period, the “Measurement Period”) if the Trading Price per $1,000 principal amount of 2026 Convertible Notes, as determined following a request by a noteholder in accordance with the procedures set forth below, for each Trading Day of the Measurement Period was less than 98% of the product of the Last Reported Sales Price per share of common stock on such Trading Day and the conversion rate on such Trading Day;

● if Antero Resources calls any or all of the 2026 Convertible Notes for redemption, at any time prior to the close of business on the scheduled Trading Day immediately preceding the redemption date; or

● upon the occurrence of certain specified corporate events as set forth in the indenture governing the 2026 Convertible Notes.

From and after May 1, 2026, noteholders may convert their 2026 Convertible Notes at any time at their election until the close of business on the second scheduled Trading Day immediately before the maturity date.

Upon conversion, Antero Resources may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of Antero Resources’ common stock or a combination of cash and shares of Antero Resources’ common stock, at Antero Resources’ election, in the manner and subject to the terms and conditions provided in the indenture governing the 2026 Convertible Notes. The 2026 Convertible Notes have met the Stock Price Condition allowing holders of the 2026 Convertible Notes to exercise their conversion right as of March 31, 2023.

The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the 2026 Convertible Notes. In addition, following certain corporate events, as described in the indenture governing the 2026 Convertible Notes, that occur prior to the maturity date, Antero Resources will increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such a corporate event.

If certain corporate events that constitute a Fundamental Change occur, then noteholders may require Antero Resources to repurchase their 2026 Convertible Notes at a cash repurchase price equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase Date. The definition of Fundamental Change includes certain business combination transactions involving Antero Resources and certain de-listing events with respect to Antero Resources’ common stock.

Upon issuance, the Company separately accounted for the liability and equity components of the 2026 Convertible Notes.  The liability component was recorded at the estimated fair value of a similar debt instrument without the conversion feature.  The difference between the principal amount of the 2026 Convertible Notes and the estimated fair value of the liability component was recorded as a debt discount and was amortized to interest expense, together with debt issuance costs, over the term of the 2026 Convertible Notes using the effective interest method, with an effective interest rate of 15.1% per annum.  As of the issuance date, the fair value of the 2026 Convertible Notes was estimated at $172 million, resulting in a debt discount at inception of $116 million.  The equity component, representing the value of the conversion option, was computed by deducting the fair value of the liability component from the initial proceeds of the 2026 Convertible Notes issuance.  This equity component was recorded, net of deferred taxes and issuance costs, in additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity.

Transaction costs related to the 2026 Convertible Notes issuance were allocated to the liability and equity components based on their relative fair values.  Issuance costs attributable to the liability component were recorded within debt issuance costs on the condensed consolidated balance sheet and were amortized over the term of the 2026 Convertible Notes using the effective interest method.  Issuance costs attributable to the equity component were recorded as a charge to additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity.

Effective January 1, 2022, the Company adopted ASU 2020-06 whereby the Company reclassified the equity component of the 2026 Convertible Notes outstanding on such date, net of deferred income taxes and equity issuance costs, from additional paid-in capital to long-term debt. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

14

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Conversions and Inducements

During the three months ended March 31, 2023, $9 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms, and an additional $9 million aggregate principal amount of the 2026 Convertible Notes were induced into conversion by the Company. The Company elected to settle these conversions by issuing 4 million shares of common stock to the noteholders together with a cash inducement premium of $0.1 million.

The 2026 Convertible Notes consist of the following (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Principal	$	56,932		39,426
Less: unamortized debt issuance costs		(1,159)		(753)
Net carrying value	$	55,773		38,673

Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, and amortization of debt issuance costs totaled $1 million for each of the three months ended March 31, 2022 and 2023.

(g) Debt Repurchase Program

During the three months ended March 31, 2022, the Company redeemed the remaining $585 million aggregate principal amount of its 2025 Notes at a redemption price of 101.25% of the principal amount thereof, plus accrued and unpaid interest and recognized a loss on early debt extinguishment of $11 million.

(8) Asset Retirement Obligations

The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands):

Asset retirement obligations—December 31, 2022	$	59,485
Obligations incurred		248
Accretion expense		878
Settlement of obligations		(308)
Revisions to prior estimates		196
Asset retirement obligations—March 31, 2023	$	60,499

Asset retirement obligations are included in Other liabilities on the Company’s condensed consolidated balance sheets.

(9) Equity-Based Compensation and Cash Awards

On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which replaced the Antero Resources Corporation Long-Term Incentive Plan (the “2013 Plan”), and the 2020 Plan became effective as of such date. The 2020 Plan provides for grants of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, RSU awards, vested stock awards, dividend equivalent awards and other stock-based and cash awards. The terms and conditions of the awards granted are established by the Compensation Committee of Antero Resources’ Board of Directors. Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the 2020 Plan. No further awards will be granted under the 2013 Plan on or after June 17, 2020.

The 2020 Plan provides for the reservation of 10,050,000 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery from the 2013 Plan in accordance with the share recycling provisions described below. The share recycling provisions allow for all or any portion of an award (including an award granted under the 2013 Plan that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash or otherwise terminated without actual delivery of the shares to be considered not delivered and thus, available for new awards under the 2020 Plan. Further, any shares withheld or surrendered in payment of any taxes relating to awards that were

15

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

outstanding under either the 2013 Plan as of June 17, 2020 or are granted under the 2020 Plan (other than stock options and stock appreciation rights), will again be available for new awards under the 2020 Plan.

A total of 6,196,477 shares were available for future grant under the 2020 Plan as of March 31, 2023.

Antero Midstream Partners LP’s (“Antero Midstream Partners”) general partner was authorized to grant up to 10,000,000 common units representing limited partner interests in Antero Midstream Partners under the Antero Midstream Partners LP Long-Term Incentive Plan (the “AMP Plan”) to non-employee directors of its general partner and certain officers, employees and consultants of Antero Midstream Partners and its affiliates (which includes Antero Resources). Antero Resources deconsolidated Antero Midstream Partners on March 12, 2019, and on such date, each outstanding phantom unit award under the AMP Plan was assumed by Antero Midstream and converted into 1.8926 RSUs (all such RSUs, the “Converted AM RSU Awards”) under the Antero Midstream Corporation Long Term Incentive Plan (the “AM Plan”). Each RSU award under the AM Plan represented a right to receive one share of Antero Midstream common stock. As of March 31, 2023, all Converted AM RSU Awards were fully vested.

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):

	Three Months Ended March 31,
	2022		2023
RSU awards	$	2,720		7,262
PSU awards		1,419		5,405
Converted AM RSU Awards (1)		160		1
Equity awards issued to directors		350		350
Total expense	$	4,649		13,018

(1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. As of March 31, 2023, all Converted AM RSU Awards were fully vested, and there is no remaining unamortized expense attributable to these awards.

(a) Restricted Stock Unit Awards

A summary of RSU activity is as follows:

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Total awarded and unvested—December 31, 2022	4,676,219	$	15.29
Granted	1,425,619		25.98
Vested	(892,595)		3.20
Forfeited	(58,898)		22.46
Total awarded and unvested—March 31, 2023	5,150,345	$	20.27

As of March 31, 2023, there was $84 million of unamortized equity-based compensation expense related to unvested RSUs. That expense is expected to be recognized over a weighted average period of 2.5 years.

(b) Performance Share Unit Awards

Performance Share Unit Awards Based on Total Shareholder Return

In March 2023, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute total shareholder return determined as of the last day of each of three one-year performance periods ending on March 7, 2024, March 7, 2025 and March 7, 2026, and one cumulative three-year performance period ending on March 7, 2026, in each case, subject to certain continued employment criteria (“2023 Absolute TSR PSUs”). The number of shares of common stock that may ultimately be earned following the end of the cumulative three-year performance period with respect to the 2023 Absolute TSR PSUs ranges from zero to 200% of the target number of 2023

16

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Absolute TSR PSUs originally granted. Expense related to these PSUs is recognized on a graded-vested basis over the term of each performance period. Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period.

The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2023 Absolute TSR PSUs:

Dividend yield		—	%
Volatility		82	%
Risk-free interest rate		4.61	%
Weighted average fair value of awards granted—Absolute TSR	$	33.96

Performance Share Unit Awards Based on Leverage Ratio

In March 2023, the Company granted PSUs to certain of its senior management and executive officers that vest based on the Company’s total debt less cash and cash equivalents divided by the Company’s Adjusted EBITDAX (as defined in the award agreement) determined as of the last day of each of three one-year performance periods ending on December 31, 2023, December 31, 2024 and December 31, 2025, in each case, subject to certain continued employment criteria (“2023 Leverage Ratio PSUs”). The number of shares of common stock that may ultimately be earned following the end of the third performance period with respect to the 2023 Leverage Ratio PSUs ranges from zero to 200% of the target number of 2023 Leverage Ratio PSUs originally granted. Expense related to the 2023 Leverage Ratio PSUs is recognized on a graded-vested basis over the term of each performance period that reflects the number of shares of common stock that are expected to be issued at the end of each measurement period, and such expense is reversed if the likelihood of achieving the performance condition becomes improbable. As of March 31, 2023, the likelihood of achieving the performance conditions related to the 2023 Leverage Ratio PSUs was probable.

Summary Information for Performance Share Unit Awards

A summary of PSU activity is as follows:

		Weighted
	Number of	Average Grant
	Units	Date Fair Value
Total awarded and unvested—December 31, 2022	1,329,725	$	23.18
Granted	417,466		28.51
Vested	—		—
Total awarded and unvested—March 31, 2023	1,747,191	$	24.45

As of March 31, 2023, there was $41 million of unamortized equity-based compensation expense related to unvested PSUs. That expense is expected to be recognized over a weighted average period of 1.8 years.

(c) Converted AM RSU Awards

A summary of the Converted AM RSU Awards is as follows:

		Weighted
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2022	2,827	$	12.38
Vested	(2,827)		12.38
Total awarded and unvested—March 31, 2023	—	$	—

As of March 31, 2023, all Converted AM RSU Awards were fully vested resulting in no unamortized equity-based compensation expense.

17

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(d) Cash Awards

In January 2020, the Company granted cash awards of $3 million to certain executives under the 2013 Plan, and compensation expense for these awards was recognized ratably over the vesting period for each of three tranches through January 20, 2023. In July 2020, the Company granted additional cash awards in the aggregate of $3 million to certain non-executive employees under the 2020 Plan that vest ratably over four years. As of December 31, 2022 and March 31, 2023, the Company has recorded $1 million in Other liabilities in the condensed consolidated balance sheets related to unvested cash awards.

(10) Fair Value

The carrying values of accounts receivable and accounts payable as of December 31, 2022 and March 31, 2023 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2022 and March 31, 2023 approximated fair value because the variable interest rates are reflective of current market conditions.

The following table sets forth the fair value and carrying value of the senior notes and 2026 Convertible Notes (in thousands):

					(Unaudited)
	December 31, 2022				March 31, 2023
	Fair		Carrying		Fair		Carrying
	Value (1)		Value (2)		Value (1)		Value (2)
2026 Notes	$	100,987		96,123		100,987		96,179
2029 Notes		410,860		402,872		415,257		403,011
2030 Notes		556,260		593,908		556,500		594,083
2026 Convertible Notes		406,039		55,773		209,135		38,673
Total	$	1,474,146		1,148,676		1,281,879		1,131,946

(1) Fair values are based on Level 2 market data inputs.

(2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums.

See Note 9—Equity-Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.

(11) Derivative Instruments

The Company is exposed to certain risks relating to its ongoing business operations, and it may use derivative instruments to manage its commodity price risk.  In addition, the Company periodically enters into contracts that contain embedded features that are required to be bifurcated and accounted for separately as derivatives.

(a) Commodity Derivative Positions

The Company periodically enters into natural gas, NGLs and oil derivative contracts with counterparties to hedge the price risk associated with its production. These derivatives are not entered into for trading purposes. To the extent that changes occur in the market prices of natural gas, NGLs and oil, the Company is exposed to market risk on these open contracts. This market risk exposure is generally offset by the change in market prices of natural gas, NGLs and oil recognized upon the ultimate sale of the Company’s production.

The Company was party to various fixed price commodity swap contracts that settled during the three months ended March 31, 2022 and 2023. The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured. Under these swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company pays the difference to the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company receives the difference from the counterparty. In addition, the Company has entered into basis swap contracts in order to hedge the

18

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

difference between the New York Mercantile Exchange (“NYMEX”) index price and a local index price. Under these basis swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company receives the difference from the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company pays the difference to the counterparty.

The Company’s derivative contracts have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s statements of operations.

As of March 31, 2023, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	43,000	MMBtu/day	$	2.37	/MMBtu

The Company has a call option and an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the volumetric production payment transaction (“VPP”) properties. The put option was embedded within another contract, and since the embedded put option was not clearly and closely related to its host contract, the Company bifurcated this derivative instrument and reflects it at fair value in the unaudited condensed consolidated financial statements. As of March 31, 2023, the Company’s call option and embedded put option arrangements were as follows:

							Embedded
				Call Option			Put Option
Commodity / Settlement Period	Index	Contracted Volume		Strike Price			Strike Price
Natural Gas
April-December 2023	Henry Hub	55,000	MMBtu/day	$	2.466	/MMBtu	$	2.466	/MMBtu
January-December 2024	Henry Hub	53,000	MMBtu/day		2.477	/MMBtu		2.527	/MMBtu
January-December 2025	Henry Hub	44,000	MMBtu/day		2.564	/MMBtu		2.614	/MMBtu
January-December 2026	Henry Hub	32,000	MMBtu/day		2.629	/MMBtu		2.679	/MMBtu

As of March 31, 2023, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
April-December 2023	NYMEX to TCO	50,000	MMBtu/day	$	0.525	/MMBtu
January-December 2024	NYMEX to TCO	50,000	MMBtu/day		0.530	/MMBtu

19

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

As of March 31, 2023, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	33,955	MMBtu/day	$	2.35	/MMBtu
January-December 2024	Henry Hub	23,885	MMBtu/day		2.33	/MMBtu
January-March 2025	Henry Hub	18,021	MMBtu/day		2.53	/MMBtu
Natural Gasoline
April-December 2023	Mont Belvieu Natural Gasoline-OPIS Non-TET	240	Bbl/day		40.74	/Bbl
Oil
April-December 2023	West Texas Intermediate	88	Bbl/day		44.85	/Bbl
January-December 2024	West Texas Intermediate	43	Bbl/day		44.02	/Bbl
January-March 2025	West Texas Intermediate	39	Bbl/day		45.06	/Bbl

(b) Summary

The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the condensed consolidated balance sheets (in thousands).

				(Unaudited)
	Balance Sheet	December 31,		March 31,
	Location	2022		2023
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments	$	—		397
Embedded derivatives—current	Derivative instruments		1,900		5,845
Embedded derivatives—noncurrent	Derivative instruments		9,844		9,825
Total asset derivatives (1)			11,744		16,067
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current (2)	Derivative instruments		97,765		28,716
Commodity derivatives—noncurrent (2)	Derivative instruments		345,280		75,854
Total liability derivatives (1)			443,045		104,570
Net derivatives liability (1)		$	(431,301)		(88,503)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

(2) As of December 31, 2022, $47 million of commodity derivative liabilities, including $28 million of current commodity derivatives and $19 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of March 31, 2023, $19 million of commodity derivative liabilities, including $9 million of current commodity derivatives and $10 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

20

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands):

							(Unaudited)
	December 31, 2022						March 31, 2023
					Net Amounts of						Net Amounts of
	Gross		Gross		Assets		Gross		Gross		Assets
	Amounts		Amounts Offset		(Liabilities) on		Amounts		Amounts Offset		(Liabilities) on
	Recognized		Recognized		Balance Sheet		Recognized		Recognized		Balance Sheet
Commodity derivative assets	$	276		(276)		—	$	3,043		(2,646)		397
Embedded derivative assets		11,744		—		11,744		15,670		—		15,670
Commodity derivative liabilities		(443,321)		276		(443,045)		(107,216)		2,646		(104,570)

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands):

	Statement of
	Operations	Three Months Ended March 31,
	Location	2022		2023
Commodity derivative fair value gains (losses) (1)	Revenue	$	(994,483)		127,080
Embedded derivative fair value gains (losses) (1)	Revenue	$	(16,897)		(888)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

Commodity derivative fair value gains (losses) for the three months ended March 31, 2023, includes a loss of $202 million related to the early settlement of the Company’s natural gas swaption agreement.  The payment for this early settlement is classified as an operating cash flow on the Company’s condensed consolidated statement of cash flows.

(12) Leases

The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. Instead, the short-term leases are recognized in expense on a straight-line basis over the lease term.

Most leases include one or more options to renew, with renewal terms that can extend the lease from one to 20 years or more. The exercise of the lease renewal options is at the Company’s sole discretion. The depreciable lives of the leased assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Certain of the Company’s lease agreements include minimum payments based on a percentage of produced volumes over contractual levels and others include rental payments adjusted periodically for inflation.

The Company considers all contracts that have assets specified in the contract, either explicitly or implicitly, that the Company has substantially all of the capacity of the asset, and has the right to obtain substantially all of the economic benefits of that asset, without the lessor’s ability to have a substantive right to substitute that asset, as leased assets. For any contract deemed to include a leased asset, that asset is capitalized on the balance sheet as a right-of-use asset and a corresponding lease liability is recorded at the present value of the known future minimum payments of the contract using a discount rate on the date of commencement. The leased asset classification is determined at the date of recording as either operating or financing, depending upon certain criteria of the contract.

The discount rate used for present value calculations is the discount rate implicit in the contract. If an implicit rate is not determinable, a collateralized incremental borrowing rate is used at the date of commencement. As new leases commence or previous leases are modified the discount rate used in the present value calculation is the current period applicable discount rate.

21

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company has made an accounting policy election to adopt the practical expedient for combining lease and non-lease components on an asset class basis. This expedient allows the Company to combine non-lease components such as real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises with the lease component of a lease agreement on an asset class basis when the non-lease components of the agreement cannot be easily bifurcated from the lease payment. Currently, the Company is only applying this expedient to certain office space agreements.

(a) Supplemental Balance Sheet Information Related to Leases

The Company’s lease assets and liabilities consisted of the following items (in thousands):

				(Unaudited)
		December 31,		March 31,
Leases	Balance Sheet Classification	2022		2023
Operating Leases
Operating lease right-of-use assets:
Processing plants	Operating lease right-of-use assets	$	1,849,116		1,791,025
Drilling rigs and completion services	Operating lease right-of-use assets		85,405		68,932
Gas gathering lines and compressor stations (1)	Operating lease right-of-use assets		1,463,756		1,497,721
Office space	Operating lease right-of-use assets		41,822		40,790
Vehicles	Operating lease right-of-use assets		756		434
Other office and field equipment	Operating lease right-of-use assets		3,476		3,092
Total operating lease right-of-use assets		$	3,444,331		3,401,994
Short-term operating lease obligation	Short-term lease liabilities	$	556,137		552,806
Long-term operating lease obligation	Long-term lease liabilities		2,888,194		2,849,188
Total operating lease obligation		$	3,444,331		3,401,994
Finance Leases
Finance lease right-of-use assets:
Vehicles	Other property and equipment	$	2,159		3,109
Total finance lease right-of-use assets (2)		$	2,159		3,109
Short-term finance lease obligation	Short-term lease liabilities	$	499		726
Long-term finance lease obligation	Long-term lease liabilities		1,660		2,383
Total finance lease obligation		$	2,159		3,109

(1) Gas gathering lines and compressor stations includes $1.4 billion and $1.5 billon related to Antero Midstream as of December 31, 2022 and March 31, 2023, respectively. See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $1 million as of December 31, 2022 and March 31, 2023.

The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases, because Antero (i) is the sole customer of the assets and (ii) makes the decisions that most impact the economic performance of the assets.

22

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(b) Supplemental Information Related to Leases

Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands):

			Three Months Ended March 31,
Cost	Classification	Location	2022		2023
Operating lease cost	Statement of operations	Gathering, compression, processing and transportation	$	365,834		381,283
Operating lease cost	Statement of operations	General and administrative		2,867		2,937
Operating lease cost	Statement of operations	Contract termination		—		1,122
Operating lease cost	Statement of operations	Lease operating		45		21
Operating lease cost	Balance sheet	Proved properties (1)		7,759		39,770
Total operating lease cost			$	376,505		425,133
Finance lease cost:
Amortization of right-of-use assets	Statement of operations	Depletion, depreciation and amortization	$	118		92
Interest on lease liabilities	Statement of operations	Interest expense		14		114
Total finance lease cost			$	132		206
Short-term lease payments			$	48,760		37,701

(1) Capitalized costs related to drilling and completion activities.

(c) Supplemental Cash Flow Information Related to Leases

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):

	Three Months Ended March 31,
	2022		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	305,841		315,665
Operating cash flows from finance leases		—		114
Investing cash flows from operating leases		6,037		32,880
Financing cash flows from finance leases		134		158
Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	5,321		51,208
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)	$	(25,926)		40,130

(1) During the three months ended March 31, 2022, the weighted average discount rate for remeasured operating leases decreased from 6.3% as of December 31, 2021 to 3.6% as of March 31, 2022. During the three months ended March 31, 2023, the weighted average discount rate for remeasured operating leases increased from 5.2% as of December 31, 2022 to 5.8% as of March 31, 2023.

23

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(d) Maturities of Lease Liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2023 (in thousands):

	Operating Leases		Financing Leases		Total
2023	$	561,359		891		562,250
2024		685,290		1,181		686,471
2025		609,654		1,139		610,793
2026		556,196		804		557,000
2027		457,972		38		458,010
Thereafter		1,252,713		—		1,252,713
Total lease payments		4,123,184		4,053		4,127,237
Less: imputed interest		(721,190)		(944)		(722,134)
Total	$	3,401,994		3,109		3,405,103

(e) Lease Term and Discount Rate

The following table sets forth the Company’s weighted average remaining lease term and discount rate:

	December 31, 2022				March 31, 2023
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	7.2 years		3.5 years		7.0 years		3.5 years
Weighted average discount rate	5.3	%	7.4	%	5.6	%	8.0	%

(f) Related Party Lease Disclosure

The Company has gathering and compression service agreements with Antero Midstream that include: (i) the second amended and restated gathering and compression agreement dated December 8, 2019 (the “2019 gathering and compression agreement”), (ii) gathering and compression agreements from Antero Midstream’s acquisition of certain Marcellus gathering and compression assets (the “Marcellus gathering and compression agreements”) and (iii) a compression agreement from Antero Midstream’s acquisition of certain Utica compressors (the “Utica compression agreement” and, together with the 2019 gathering and compression agreement and the Marcellus gathering and compression agreements, the “gathering and compression agreements”). Pursuant to the gathering and compression agreements with Antero Midstream, the Company has dedicated substantially all of its current and future acreage in West Virginia, Ohio and Pennsylvania to Antero Midstream for gathering and compression services. The 2019 gathering and compression agreement has an initial term through 2038, the Marcellus gathering and compression agreements expire between 2024 and 2031, and the Utica compression agreement has two dedicated areas that expire in 2024 and 2030. Upon expiration of each of the Marcellus gathering and compression agreements and the Utica compression agreement, Antero Midstream will continue to provide gathering and compression services under the 2019 gathering and compression agreement.

Under the gathering and compression agreements, Antero Midstream receives a low-pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf and a compression fee per Mcf, as applicable, subject to annual adjustments based on the consumer price index. If and to the extent the Company requests that Antero Midstream construct new low pressure lines, high pressure lines and compressor stations, the 2019 gathering and compression agreement contains options at Antero Midstream’s election for either (i) minimum volume commitments that require Antero Resources to utilize or pay for 75% of the high pressure gathering capacity and 70% of the compression capacity of the requested capacity of such new construction for 10 years or (ii) a cost of service fee that allows the Antero Midstream to earn a 13% rate of return on such new construction over seven years. In addition, certain of the Marcellus gathering and compression agreements provide for a minimum volume commitment that requires the Company to utilize or pay for 25% of the capacity of new compressor station construction for 10 years.

The 2019 gathering and compression agreement includes a growth incentive fee program whereby low-pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain quarterly volumetric targets. The Company’s throughput gathered under the Marcellus gathering and compression agreements is not considered in low pressure gathering volume targets. Upon completion of the initial contract term, the 2019 gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an

24

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

anniversary of the effective date of the agreement, by either the Company or Antero Midstream on or before the 180th day prior to the anniversary of such effective date. The Company earned fee rebates for the three months ended March 31, 2022 and 2023 of $12 million.

Gathering and compression fees paid by Antero related to these agreements were $163 million and $176 million for the three months ended March 31, 2022 and 2023, respectively. As of December 31, 2022 and March 31, 2023, $59 million and $70 million, respectively, was included within Accounts payable, related parties on the condensed consolidated balance sheet as due to Antero Midstream related to these agreements.

(13) Commitments

The following table sets forth a schedule of future minimum payments for the Company’s contractual obligations, which include leases that have a lease term in excess of one year as of March 31, 2023 (in thousands):

			Processing,
			Gathering,
	Firm		Compression		Operating and		Imputed Interest
	Transportation		and Water Service		Financing Leases		for Leases		Other
	(a)		(b)		(c)		(c)		(d)		Total
Remainder of 2023	$	886,835		53,618		426,736		135,514		641		1,503,344
2024		1,145,151		62,892		532,603		153,869		—		1,894,515
2025		1,131,583		51,545		486,033		124,760		—		1,793,921
2026		1,129,147		18,368		459,014		97,985		—		1,704,514
2027		1,124,462		17,080		384,371		73,639		—		1,599,552
Thereafter		5,465,800		85,209		1,116,346		136,367		—		6,803,722
Total	$	10,882,978		288,712		3,405,103		722,134		641		15,299,568

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market. These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates or pay for any deficiencies at specified reservation fee rates. The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest.

(b) Processing, Gathering, Compression and Water Service Commitments

The Company has entered into various long-term gas processing, gathering, compression and water service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest.

(c) Operating and Finance Leases, including Imputed Interest

The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases. The values in the table represent the gross amounts that Antero Resources is committed to pay; however, the Company will record in its financial statements its proportionate share of costs based on its working interests. See Note 12—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases.

25

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(d) Other

The Company has entered into various land acquisition and sand supply agreements. Certain of these agreements contain minimum payment obligations over various terms. The values in the table represent the minimum payments due under these arrangements. None of these agreements were determined to be leases.

(e) Contract Terminations

The Company incurs costs associated with the delay or cancellation of certain contracts with third-parties. These costs are recorded in Contract termination and included in the statement of operations and comprehensive income (loss). During the three months ended March 31, 2023, the Company executed an early termination of its firm transportation commitment of 200,000 MMBtu per day on the Equitrans pipeline and made a cash payment of $24 million. There are no remaining payment obligations related to these delayed or cancelled contracts as of March 31, 2023.

(14) Contingencies

Environmental

In June 2018, the Company received a Notice of Violation (“NOV”) from the U.S. Environmental Protection Agency (“EPA”) Region III for alleged violations of the federal Clean Air Act and the West Virginia State Implementation Plan. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements. Separately, in June 2018, the Company received an information request from the EPA Region III pursuant to Section 114(a) of the Clean Air Act relating to the facilities that were inspected in September 2017 as well as additional Antero Resources facilities for the purpose of determining if the additional facilities have the same alleged compliance issues that were identified during the September 2017 inspections. Subsequently, the West Virginia Department of Environmental Protection (“WVDEP”) and the EPA Region V (covering Ohio facilities) each conducted its own inspections, and the Company has separately received NOVs from WVDEP and EPA Region V related to similar issues being investigated by the EPA Region III. The Company continues to negotiate with the EPA and WVDEP to resolve the issues alleged in the NOVs and the information request. The Company’s operations at these facilities are not suspended, and management does not expect these matters to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

Other

The Company is party to various other legal proceedings and claims in the ordinary course of its business. The Company believes that certain of these matters will be covered by insurance and that the outcome of other matters will not have a material adverse effect on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

In addition, pending litigation against operators in the Appalachian Basin, including the Company, could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that may be deducted from royalty payments, among other things. A ruling was recently received in an immaterial case to which the Company is a party, and the Company continues to analyze how this decision may impact other cases to which the Company is a party. The Company cannot predict how these issues may ultimately be resolved, and therefore is also unable to estimate any potential damages, if any, that may result.

(15) Related Parties

Substantially all of Antero Midstream’s revenues were and are derived from transactions with Antero Resources. See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments.

26

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(16) Reportable Segments

(a) Summary of Reportable Segments

The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

Exploration and Production

The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations.

Marketing

Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets.

Equity Method Investment in Antero Midstream

The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts.

27

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(b) Reportable Segments Financial Information

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

	Three Months Ended March 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	717,283		69,038		395		(395)		786,321
Intersegment		519		—		218,096		(218,096)		519
Total revenue		717,802		69,038		218,491		(218,491)		786,840
Operating expenses:
Lease operating		17,780		—		—		—		17,780
Gathering, compression, processing, transportation and water handling		590,278		—		42,012		(42,012)		590,278
General and administrative		35,691		—		17,931		(17,931)		35,691
Depletion, depreciation and amortization		168,388		—		28,300		(28,300)		168,388
Impairment of property and equipment		22,462		—		—		—		22,462
Other		57,944		98,896		1,094		(1,094)		156,840
Total operating expenses		892,543		98,896		89,337		(89,337)		991,439
Operating income (loss)	$	(174,741)		(29,858)		129,154		(129,154)		(204,599)
Equity in earnings of unconsolidated affiliates	$	25,178		—		23,232		(23,232)		25,178
Capital expenditures for segment assets	$	215,876		—		84,267		(84,267)		215,876

	Three Months Ended March 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	1,349,476		58,529		272		(272)		1,408,005
Intersegment		343		—		259,203		(259,203)		343
Total revenue		1,349,819		58,529		259,475		(259,475)		1,408,348
Operating expenses:
Lease operating		29,321		—		—		—		29,321
Gathering, compression, processing, transportation and water handling		645,172		—		57,873		(57,873)		645,172
General and administrative		57,261		—		17,347		(17,347)		57,261
Depletion, depreciation and amortization		167,582		—		35,196		(35,196)		167,582
Impairment of property and equipment		15,560		—		—		—		15,560
Other		56,838		105,124		714		(714)		161,962
Total operating expenses		971,734		105,124		111,130		(111,130)		1,076,858
Operating income (loss)	$	378,085		(46,595)		148,345		(148,345)		331,490
Equity in earnings of unconsolidated affiliates	$	17,681		—		24,456		(24,456)		17,681
Capital expenditures for segment assets	$	351,312		—		42,279		(42,279)		351,312

28

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The summarized assets of the Company’s reportable segments are as follows (in thousands):

	As of December 31, 2022
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	220,429		—		652,767		(652,767)		220,429
Total assets		14,081,077		36,962		5,791,320		(5,791,320)		14,118,039

	(Unaudited)
	As of March 31, 2023
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	219,515		—		643,118		(643,118)		219,515
Total assets		13,855,955		15,191		5,779,728		(5,779,728)		13,871,146

(17) Subsidiary Guarantors

Antero Resources’ senior notes are fully and unconditionally guaranteed by Antero Resources’ existing subsidiaries that guarantee the Credit Facility.  In the event a subsidiary guarantor is sold or disposed of (whether by merger, consolidation, the sale of a sufficient amount of its capital stock so that it no longer qualifies as a “Subsidiary” of Antero (as defined in the indentures governing the notes) or the sale of all or substantially all of its assets (other than by lease)) and whether or not the subsidiary guarantor is the surviving entity in such transaction to a person that is not Antero or a restricted subsidiary of Antero, such subsidiary guarantor will be released from its obligations under its subsidiary guarantee if the sale or other disposition does not violate the covenants set forth in the indentures governing the notes.

In addition, a subsidiary guarantor will be released from its obligations under the indentures and its guarantee, upon the release or discharge of the guarantee of other Indebtedness (as defined in the indentures governing the notes) that resulted in the creation of such guarantee, except a release or discharge by or as a result of payment under such guarantee; if Antero designates such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes.

The tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company.

29

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Balance Sheet
			(Unaudited)
	December 31, 2022		March 31, 2023
Current assets	$	739,104		408,791
Noncurrent assets		12,663,911		12,782,007
Total assets	$	13,403,015		13,190,798
Accounts payable, related parties	$	80,708		99,784
Other current liabilities		1,668,426		1,386,904
Total current liabilities		1,749,134		1,486,688
Noncurrent liabilities		5,306,539		5,192,664
Total liabilities	$	7,055,673		6,679,352
Statement of Operations
			Three Months Ended
			March 31, 2023
Revenues			$	1,348,658
Operating expenses				1,064,939
Income from operations				283,719
Net income and comprehensive income including noncontrolling interests				213,431
Net income and comprehensive income attributable to Antero Resources Corporation			$	213,431

30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results, and the differences can be material. Some of the key factors that could cause actual results to vary from our expectations include changes in natural gas, NGLs and oil prices, the timing of planned capital expenditures, our ability to fund our development programs, uncertainties in estimating proved reserves and forecasting production results, operational factors affecting the commencement or maintenance of producing wells, the condition of the capital markets generally, as well as our ability to access them, impacts of world health events, including the COVID-19 pandemic, and uncertainties regarding environmental regulations or litigation and other legal or regulatory developments affecting our business, as well as those factors discussed below, all of which are difficult to predict. In light of these risks, uncertainties and assumptions, the forward-looking events discussed may not occur. See “Cautionary Statement Regarding Forward-Looking Statements.” Also, see the risk factors and other cautionary statements described under the heading “Item 1A. Risk Factors.” We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.

In this section, references to “Antero,” the “Company,” “we,” “us,” and “our” refer to Antero Resources Corporation and its subsidiaries, unless otherwise indicated or the context otherwise requires.

Our Company

We are an independent oil and natural gas company engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. We focus on unconventional reservoirs, which can generally be characterized as fractured shale formations. Our management team has worked together for many years and has a successful track record of reserve and production growth as well as significant expertise in unconventional resource plays. Our strategy is to leverage our team’s experience delineating and developing natural gas resource plays to develop our reserves and production, primarily on our existing multi-year inventory of drilling locations.

We have assembled a portfolio of long-lived properties that are characterized by what we believe to be low geologic risk and repeatability. Our drilling opportunities are focused in the Appalachian Basin. As of March 31, 2023, we held approximately 512,000 net acres in the Appalachian Basin.

Market Conditions and Business Trends

Commodity Markets

Prices for natural gas, NGLs and oil that we produce significantly impact our revenues and cash flows. Natural gas, NGLs and oil benchmark prices decreased significantly during the three months ended March 31, 2023 as compared to the same period of 2022. As a result, we experienced a decrease in price realizations during the three months ended March 31, 2023. We monitor the economic factors that impact natural gas, NGLs and oil prices, including domestic and foreign supply and demand indicators, domestic and foreign commodity inventories, the actions of Organization of Petroleum Exporting Countries and other large producing nations and the current Russia-Ukraine conflict, among others. In the current economic environment, we expect that commodity prices for some or all of the commodities we produce could remain volatile. This volatility is beyond our control and may adversely impact our business, financial condition, results of operations and future cash flows.

The following table details the average benchmark natural gas and oil prices:

	Three Months Ended March 31,
	2022		2023
Henry Hub (1) ($/Mcf)	$	4.95		3.42
West Texas Intermediate (2) ($/Bbl)		94.29		76.13

(1) NYMEX first of month average natural gas price.

(2) Energy Information Administration calendar month average settled futures price.

31

Hedge Position

Antero Resources (Excluding Martica)

We are exposed to certain commodity price risks relating to our ongoing business operations, and we use derivative instruments as we deem necessary to manage such risks.  In addition, we periodically enter into contracts that contain embedded features that are required to be bifurcated and accounted for separately as derivatives. Due to our improved liquidity and leverage position as compared to past levels, the percentage of our expected production that we hedge has decreased. For the three months ended March 31, 2022 and 2023, 36% and 2%, respectively, of our production was hedged through fixed price commodity swaps. Assuming our 2023 production is the same as our production in 2022, 1% of our production for 2023 will be hedged through fixed price commodity swaps. The tables and narrative below exclude derivative instruments attributable to Martica, our consolidated VIE, since all gains or losses from such contracts are fully attributable to the noncontrolling interests in Martica.

As of March 31, 2023, our fixed price natural gas swap positions excluding Martica were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	12	Bcf	$	2.37	/MMBtu

As of March 31, 2023, our natural gas basis swap positions settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
April-December 2023	NYMEX to TCO	14	Bcf	$	0.525	/MMBtu
January-December 2024	NYMEX to TCO	18	Bcf		0.530	/MMBtu
		32	Bcf		0.53	/MMBtu

We have a call option and an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the VPP properties. As of March 31, 2023, our call option and embedded put option arrangements were as follows:

							Embedded
				Call Option			Put Option
Commodity / Settlement Period	Index	Contracted Volume		Strike Price			Strike Price
Natural Gas
April-December 2023	Henry Hub	15	Bcf	$	2.466	/MMBtu	$	2.466	/MMBtu
January-December 2024	Henry Hub	19	Bcf		2.477	/MMBtu		2.527	/MMBtu
January-December 2025	Henry Hub	16	Bcf		2.564	/MMBtu		2.614	/MMBtu
January-December 2026	Henry Hub	12	Bcf		2.629	/MMBtu		2.679	/MMBtu
		62	Bcf		2.525	/MMBtu		2.563	/MMBtu

In addition, we had a swaption agreement, which entitled the counterparty the right, but not the obligation, to enter into a fixed price swap agreement for 156 Bcf at a price of $2.77 per MMBtu for the year ending December 31, 2024. In January 2023, we executed an early settlement of this swaption agreement and made a cash payment of $202 million, which was funded by cash flows from operations and borrowings under our Credit Facility.

As of March 31, 2023, the estimated fair value of our commodity derivative contracts, excluding Martica, was a net liability of $70 million. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for more information.

32

Martica

Our consolidated VIE, Martica, also maintains a portfolio of fixed swap natural gas, NGLs and oil derivatives for the benefit of the noncontrolling interests in Martica. As such, all gains and losses attributable to Martica’s derivative portfolio are fully attributable to the noncontrolling interests in Martica. As of March 31, 2023, Martica’s fixed price natural gas, NGLs and oil swap positions were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	9	Bcf	$	2.35	/MMBtu
January-December 2024	Henry Hub	9	Bcf		2.33	/MMBtu
January-March 2025	Henry Hub	2	Bcf		2.53	/MMBtu
		20	Bcf		2.35	/MMBtu
Natural Gasoline
April-December 2023	Mont Belvieu Natural Gasoline-OPIS Non-TET	66,080	Bbl		40.74	/Bbl
Oil
April-December 2023	West Texas Intermediate	24,102	Bbl		44.85	/Bbl
January-December 2024	West Texas Intermediate	15,699	Bbl		44.02	/Bbl
January-March 2025	West Texas Intermediate	3,535	Bbl		45.06	/Bbl
		43,336	Bbl		44.57	/Bbl

As of March 31, 2023, the estimated fair value of Martica’s commodity derivative contracts was a net liability of $19 million. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for more information.

Economic Indicators

The economy is experiencing elevated inflation levels as a result of global supply and demand imbalances, where global demand continues to outpace current supplies. For example, the BLS Consumer Price Index (“CPI”) for all urban consumers increased 5% from March 2022 to March 2023 as compared to the Federal Reserve’s stated goal of 2%. In order to manage the inflation risk currently present in the United States’ economy, the Federal Reserve has utilized monetary policy in the form of interest rate increases in an effort to bring the inflation rate in line with its stated goal of 2% on a long-term basis.

The economy also continues to be impacted by the effects of global events and the aftermath of the COVID-19 pandemic, among other factors. These events have often caused global supply chain disruptions with additional pressure due to trade sanctions on Russia and other global trade restrictions, among others. However, our supply chain has not experienced any significant interruptions as a result of such events.

Inflationary pressures, particularly as they relate to certain of our long-term contracts with CPI-based adjustments, and supply chain disruptions have and could continue to result in increases to our operating and capital costs that are not fixed. For example, our 2023 capital budget reflects an approximate 10% increase in service cost inflation as compared to the year ended December 31, 2022. These economic variables are beyond our control and may adversely impact our business, financial condition, results of operations and future cash flows.

Results of Operations

We have three operating segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity; and (iii) midstream services through our equity method investment in Antero Midstream. Revenues from Antero Midstream’s operations were primarily derived from intersegment transactions for services provided to our exploration and production operations by Antero Midstream. All intersegment transactions were eliminated upon consolidation, including revenues from water handling services provided by Antero Midstream, which we capitalized as proved property development costs. Marketing revenues are primarily derived from activities to purchase and sell third-party natural gas and NGLs and to market and utilize excess firm transportation capacity. See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for more information.

33

Three Months Ended March 31, 2022 Compared to Three Months Ended March 31, 2023

The operating results of our reportable segments were as follows (in thousands):

	Three Months Ended March 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Revenue and other:
Natural gas sales	$	995,792		—		—		—		995,792
Natural gas liquids sales		660,305		—		—		—		660,305
Oil sales		63,294		—		—		—		63,294
Commodity derivative fair value losses		(1,011,380)		—		—		—		(1,011,380)
Gathering, compression and water handling		—		—		218,491		(218,491)		—
Marketing		—		69,038		—		—		69,038
Amortization of deferred revenue, VPP		9,272		—		—		—		9,272
Other revenue and income		519		—		—		—		519
Total revenue		717,802		69,038		218,491		(218,491)		786,840
Operating expenses:
Lease operating		17,780		—		—		—		17,780
Gathering and compression		201,462		—		17,182		(17,182)		201,462
Processing		190,601		—		—		—		190,601
Transportation		198,215		—		—		—		198,215
Water handling		—		—		24,830		(24,830)		—
Production and ad valorem taxes		52,808		—		—		—		52,808
Marketing		—		98,896		—		—		98,896
Exploration and mine expenses		898		—		—		—		898
General and administrative (excluding equity-based compensation)		31,042		—		15,099		(15,099)		31,042
Equity-based compensation		4,649		—		2,832		(2,832)		4,649
Depletion, depreciation and amortization		168,388		—		28,300		(28,300)		168,388
Impairment of property and equipment		22,462		—				—		22,462
Accretion of asset retirement obligations		2,444		—		64		(64)		2,444
Contract termination and other operating expenses		8		—		1,148		(1,148)		8
Loss (gain) on sale of assets		1,786		—		(118)		118		1,786
Total operating expenses		892,543		98,896		89,337		(89,337)		991,439
Operating income (loss)	$	(174,741)		(29,858)		129,154		(129,154)		(204,599)
Equity in earnings of unconsolidated affiliates	$	25,178		—		23,232		(23,232)		25,178

34

	Three Months Ended March 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Revenue and other:
Natural gas sales	$	668,315		—		—		—		668,315
Natural gas liquids sales		495,435		—		—		—		495,435
Oil sales		51,811		—		—		—		51,811
Commodity derivative fair value gains		126,192		—		—		—		126,192
Gathering, compression and water handling		—		—		259,475		(259,475)		—
Marketing		—		58,529		—		—		58,529
Amortization of deferred revenue, VPP		7,533		—		—		—		7,533
Other revenue and income		533		—		—		—		533
Total revenue		1,349,819		58,529		259,475		(259,475)		1,408,348
Operating expenses:
Lease operating		29,321		—		—		—		29,321
Gathering and compression		212,604		—		24,118		(24,118)		212,604
Processing		237,268		—		.		—		237,268
Transportation		195,300		—		—		—		195,300
Water handling		—		—		33,755		(33,755)		—
Production and ad valorem taxes		49,276		—		—		—		49,276
Marketing		—		81,361		—		—		81,361
Exploration and mine expenses		763		—		—		—		763
General and administrative (excluding equity-based compensation)		44,243		—		11,020		(11,020)		44,243
Equity-based compensation		13,018		—		6,327		(6,327)		13,018
Depletion, depreciation and amortization		167,582		—		35,196		(35,196)		167,582
Impairment of property and equipment		15,560		—		—		—		15,560
Accretion of asset retirement obligations		878		—		44		(44)		878
Gain on sale of assets		(91)		—		(245)		245		(91)
Contract termination and other operating expenses		6,012		23,763		915		(915)		29,775
Total operating expenses		971,734		105,124		111,130		(111,130)		1,076,858
Operating income (loss)	$	378,085		(46,595)		148,345		(148,345)		331,490
Equity in earnings of unconsolidated affiliates	$	17,681		—		24,456		(24,456)		17,681

35

Exploration and Production Segment

The following table sets forth selected operating data of the exploration and production segment:

					Amount of
	Three Months Ended March 31,				Increase		Percent
	2022		2023		(Decrease)		Change
Production data (1) (2):
Natural gas (Bcf)		199		194		(5)	(3)	%
C2 Ethane (MBbl)		4,005		6,141		2,136	53	%
C3+ NGLs (MBbl)		9,638		9,857		219	2	%
Oil (MBbl)		724		831		107	15	%
Combined (Bcfe)		285		295		10	4	%
Daily combined production (MMcfe/d)		3,165		3,274		109	3	%
Average prices before effects of derivative settlements (3):
Natural gas (per Mcf)	$	5.01		3.45		(1.56)	(31)	%
C2 Ethane (per Bbl) (4)	$	16.74		11.73		(5.01)	(30)	%
C3+ NGLs (per Bbl)	$	61.55		42.95		(18.60)	(30)	%
Oil (per Bbl)	$	87.45		62.35		(25.10)	(29)	%
Weighted Average Combined (per Mcfe)	$	6.04		4.13		(1.91)	(32)	%
Average realized prices after effects of derivative settlements (3):
Natural gas (per Mcf)	$	3.60		3.38		(0.22)	(6)	%
C2 Ethane (per Bbl) (4)	$	16.63		11.73		(4.90)	(29)	%
C3+ NGLs (per Bbl)	$	61.14		42.89		(18.25)	(30)	%
Oil (per Bbl)	$	86.76		61.90		(24.86)	(29)	%
Weighted Average Combined (per Mcfe)	$	5.03		4.08		(0.95)	(19)	%
Average costs (per Mcfe):
Lease operating	$	0.06		0.10		0.04	67	%
Gathering and compression	$	0.71		0.72		0.01	1	%
Processing	$	0.67		0.81		0.14	21	%
Transportation	$	0.70		0.66		(0.04)	(6)	%
Production and ad valorem taxes	$	0.19		0.17		(0.02)	(11)	%
Marketing expense, net	$	0.10		0.08		(0.02)	(20)	%
Depletion, depreciation, amortization and accretion	$	0.60		0.57		(0.03)	(5)	%
General and administrative (excluding equity-based compensation)	$	0.11		0.15		0.04	36	%

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

(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 prices reflect the before and after effects of our settled commodity derivatives. Our calculation of such after effects includes gains (losses) on settlements of commodity derivatives, which do not qualify for hedge accounting because we do not designate or document them as hedges for accounting purposes.

(4) The average realized price for the three months ended March 31, 2023 includes $6 million 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 would have been $10.76 per Bbl.

Natural gas sales. Revenues from sales of natural gas decreased from $996 million for the three months ended March 31, 2022 to $668 million for the three months ended March 31, 2023, a decrease of $328 million, or 33%. Lower commodity prices (excluding the effects of derivative settlements) during the three months ended March 31, 2023 accounted for an approximate $303 million decrease in year-over-year natural gas sales revenue (calculated as the change in the year-to-year average price times current year production volumes). Lower natural gas production volumes accounted for an approximate $25 million decrease in year-over-year natural gas sales revenue (calculated as the change in year-to-year volumes times the prior year average price).

NGLs sales. Revenues from sales of NGLs decreased from $660 million for the three months ended March 31, 2022 to $495 million for the three months ended March 31, 2023, a decrease of $165 million, or 25%. Lower commodity prices (excluding the effects of derivative settlements) during the three months ended March 31, 2023 accounted for an approximate $214 million decrease in year-over-year revenues (calculated as the change in the year-to-year average price times current year

36

production volumes). Higher NGLs production volumes accounted for an approximate $49 million increase in year-over-year NGLs revenues (calculated as the change in year-to-year volumes times the prior year average price).

Oil sales. Revenues from sales of oil decreased from $63 million for the three months ended March 31, 2022 to $52 million for the three months ended March 31, 2023, a decrease of $11 million, or 18%. Lower oil prices, excluding the effects of derivative settlements, accounted for an approximate $21 million decrease in year-over-year oil revenues (calculated as the change in the year-to-year average price times current year production volumes). Higher oil production volumes during the three months ended March 31, 2023 accounted for an approximate $10 million increase in year-over-year oil revenues (calculated as the change in year-to-year volumes times the prior year average price).

Commodity derivative fair value gains (losses). Our commodity derivatives included variable price swap contracts, swaptions, basis swap contracts, call options and embedded put options. Because we do not designate these derivatives as accounting hedges, they do not receive hedge accounting treatment. Consequently, all mark-to-market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our statements of operations. For the three months ended March 31, 2022 and 2023, our commodity hedges resulted in derivative fair value losses of $1.0 billion and fair value gains of $126 million, respectively. For the three months ended March 31, 2022, commodity derivative fair value losses included $285 million of cash payments on commodity settled derivatives losses. For the three months ended March 31, 2023, commodity derivative fair value gains included $14 million of cash payments on commodity derivative losses and $202 million cash payment for the early settlement of our swaption.

Commodity derivative fair value gains or losses vary based on future commodity prices and have no cash flow impact until the derivative contracts are settled or monetized prior to settlement. Derivative asset or liability positions at the end of any accounting period may reverse to the extent future commodity prices increase or decrease from their levels at the end of the accounting period, or as gains or losses are realized through settlement. Additionally, substantially all of our production is currently unhedged for 2023 and beyond, which limits our exposure to volatility in the fair value of our derivative instruments related to commodity price changes in the future.

Amortization of deferred revenue, VPP. Amortization of deferred revenues associated with the VPP decreased from $9 million for the three months ended March 31, 2022 to $8 million for the three months ended March 31, 2023, a decrease of $1 million or 19%, primarily due to lower production volumes attributable to the VPP properties between periods. Under the terms of the agreement, the production volumes are delivered at $1.61 per MMBtu over the contractual term.

Lease operating expense. Lease operating expense increased from $18 million, or $0.06 per Mcfe, for the three months ended March 31, 2022 to $29 million, or $0.10 per Mcfe for the three months ended March 31, 2023, an increase of $11 million or $0.04 per Mcfe, primarily due to higher oilfield service and produced water handling costs.

Gathering, compression, processing and transportation expense. Gathering, compression, processing and transportation expense increased from $590 million for the three months ended March 31, 2022 to $645 million for three months ended March 31, 2023, an increase of $55 million, or 9%. This fluctuation primarily resulted from the following:

● Gathering and compression costs on a per unit basis remained relatively consistent at $0.71 and $0.72 per Mcfe for the three months ended March 31, 2022 and 2023, respectively.

● Processing costs on a per unit basis increased from $0.67 per Mcfe for the three months ended March 31, 2022 to $0.81 per Mcfe for the three months ended March 31, 2023, primarily due to increased costs for NGLs processing and transportation, which include annual CPI-based and commodity based adjustments, as well as higher terminal fees and ethane transportation.

● Transportation costs on a per unit basis decreased from $0.70 per Mcfe for the three months ended March 31, 2022 to $0.66 per Mcfe for the three months ended March 31, 2023 primarily due to lower fuel costs as a result of lower commodity prices between periods.

Production and ad valorem tax expense.  Production and ad valorem taxes decreased from $53 million for the three months ended March 31, 2022 to $49 million for the three months ended March 31, 2023, a decrease of $4 million, or 7%, primarily due to lower commodity prices between periods, partially offset by higher production volumes between periods. Production and ad valorem taxes as a percentage of natural gas revenues increased from 5.3% for the three months ended March 31, 2022 to 7.4% for the three months ended March 31, 2023 primarily as a result of higher ad valorem taxes, which 2023 ad valorem taxes are based on commodity prices during 2022.

37

General and administrative expense. General and administrative expense (excluding equity-based compensation expense) increased from $31 million for the three months ended March 31, 2022 to $44 million for the three months ended March 31, 2023, an increase of $13 million, or 43%, primarily due to higher salary and wage expense, professional service fees, office operating costs and software license costs between periods. We had 521 and 599 employees as of three months ended March 31, 2022 and 2023, respectively. General and administrative expense on a per unit basis (excluding equity-based compensation) increased from $0.11 per Mcfe for the three months ended March 31, 2022 to $0.15 per Mcfe for the three months ended March 31, 2023 as a result of our higher overall general and administrative costs, partially offset by increased production volumes between periods.

Equity-based compensation expense. Noncash equity-based compensation expense increased from $5 million for the three months ended March 31, 2022 to $13 million for the three months ended March 31, 2023, an increase of $8 million, primarily due to an increase in the annual equity awards granted during the fourth quarter of 2022 and first quarter of 2023 as compared to prior years, which were temporarily and significantly reduced during 2020 and supplemented by our cash awards program. Our equity awards vest over three or four year service periods, and our equity incentive program began returning to normal levels in 2021. See Note 9—Equity Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for more information on equity-based compensation awards.

Depletion, depreciation and amortization expense (“DD&A expense”). DD&A expense remained relatively consistent at $168 million, or $0.60 per Mcfe, and $168 million, or $0.57 per Mcfe, for the three months ended March 31, 2022 and 2023, respectively. This decrease in DD&A expense per Mcfe between periods was primarily due to higher reserve volumes during the three months ended March 31, 2023.

Impairment of oil and gas properties. Impairment of oil and gas properties decreased from $22 million for the three months ended March 31, 2022 to $16 million for the three months ended March 31, 2023, a decrease of $6 million, or 31%, primarily related to lower impairments of expiring leases between periods. During both periods, we recognized impairments primarily related to expiring leases as well as design and initial costs related to pads we no longer plan to place into service.

Marketing Segment

Where feasible, we purchase and sell third-party natural gas and NGLs and market our excess firm transportation capacity, or engage third parties to conduct these activities on our behalf, in order to optimize the revenues from these transportation agreements. We have entered into long-term firm transportation agreements for a significant portion of our current and expected future production in order to secure guaranteed capacity to favorable markets.

Net marketing expense (calculated as marketing revenues less marketing expense) decreased from $30 million, or $0.10 per Mcfe, for the three months ended March 31, 2022 to $23 million, or $0.08 per Mcfe, for the three months ended March 31, 2023, primarily due to lower firm transportation commitments between periods.

Marketing revenue. Marketing revenue decreased from $69 million for the three months ended March 31, 2022 to $59 million for the three months ended March 31, 2023, a decrease of $10 million, or 15%, primarily due to decreased commodity prices and ethane marketing volumes between periods, partially offset by higher natural gas and oil marketing volumes. Lower ethane marketing volumes accounted for a $13 million decrease in year-over-year marketing revenues (calculated as the change in year-to-year volumes times the prior year average price), partially offset by increased oil marketing revenues of $3 million. Higher oil marketing volumes accounted for a $8 million increase in year-over-year marketing revenues (calculated as the change in year-to-year volumes times the prior year average price), and lower oil prices accounted for an approximate $5 million decrease in year-over-year marketing revenues (calculated as the change in the year-to-year average price times current year marketing volumes). Natural gas marketing revenue remained relatively consistent between periods with higher marketing volumes during the three months ended March 31, 2023 being fully offset by lower commodity prices during the same period.

Marketing expense. Marketing expense decreased from $99 million for the three months ended March 31, 2022 to $81 million for the three months ended March 31, 2023, a decrease of $18 million, or 18%. Marketing expense includes the cost of third-party purchased natural gas, NGLs and oil as well as firm transportation costs, including costs related to current excess firm capacity. The cost of third-party purchases decreased $6 million primarily due to lower commodity prices between periods, partially offset by higher natural gas and oil marketing volumes. Firm transportation costs were $32 million for the three months ended March 31, 2022 and $20 million for the three months ended March 31, 2023, a decrease of $12 million due to the reduction in firm transportation commitments and higher third-party marketed volumes between periods.

Contract termination expense. Our marketing segment did not incur any contract termination expense for the three months ended March 31, 2022. Contract termination expense attributable to our marketing segment for the three months ended

38

March 31, 2023, is due to a $24 million payment for the early termination of our firm transportation commitment of 200,000 MMBtu per day on the Equitrans pipeline.

Antero Midstream Segment

Antero Midstream revenue. Revenue from the Antero Midstream segment increased from $218 million for the three months ended March 31, 2022 to $259 million for the three months ended March 31, 2023, an increase of $41 million, primarily due to increased throughput, fresh water delivery volumes and other fluid handling volumes between periods as well as higher low pressure, compression, high pressure and water handling fees primarily as a result of an annual CPI-based adjustments.

Antero Midstream operating expense. Total operating expense related to the Antero Midstream segment increased from $89 million for the three months ended March 31, 2022 to $111 million for the three months ended March 31, 2023, an increase of $22 million, primarily due to increased direct operating costs and depreciation expense during the three months ended March 31, 2023, partially offset by lower general and administrative costs between periods Direct operating costs increased between periods primarily as a result of 12 compressors that were acquired during the fourth quarter of 2022 and higher water trucking expense between periods. The increase in depreciation expense is primarily a result of a phased early retirement of an underutilized compressor station, which allows Antero Midstream to relocate and reuse the compressor units and equipment to (i) expand an existing compressor station and/or (ii) contribute to a new compressor station. There are certain costs associated with the underutilized compressor station that cannot be relocated or reused that will be depreciated over the first half of 2023. Antero Midstream also had incremental depreciation expense related to asset acquisitions completed during the fourth quarter of 2022 and gathering, compression and water handling assets placed in service between periods.

Items Not Allocated to Segments

Interest expense. Interest expense decreased from $38 million for the three months ended March 31, 2022 to $26 million for the three months ended March 31, 2023, a decrease of $12 million or 32%, primarily due to the reduction in debt as a result of the repurchase of certain of our unsecured senior notes between periods, partially offset by higher Credit Facility borrowings and benchmark interest rates during the three months ended March 31, 2023.

Loss on early extinguishment of debt. During the three months ended March 31, 2022, we redeemed the remaining $585 million aggregate principal amount of our 2025 Notes at a redemption price of 101.25% of par, plus accrued and unpaid interest, which resulted in a loss on early debt extinguishment of $11 million. There were no debt redemptions or repurchases during the three months ended March 31, 2023. See Note 7—Long-Term Debt to the unaudited condensed consolidated financial statements for more information.

Income tax benefit (expense). For the three months ended March 31, 2022, we had an income tax benefit of $53 million, with an effective tax rate of 23%, due to a loss before income taxes of $230 million. For the three months ended March 31, 2023, we had income tax expense of $62 million, with an effective tax rate of 19%, due to income before income taxes of $323 million. The decrease in the effective tax rate between periods was primarily due the impact of changes in state apportionment and a reduction to Pennsylvania’s corporate income tax rate enacted in the third quarter of 2022.

Capital Resources and Liquidity

Sources and Uses of Cash

Our primary sources of liquidity have been through net cash provided by operating activities, borrowings under our Credit Facility, issuances of debt and equity securities and additional contributions from our asset sales program, including our drilling partnership. Our primary use of cash has been for the exploration, development and acquisition of oil and natural gas properties. As we develop our reserves, we continually monitor what capital resources, including equity and debt financings, are available to meet our future financial obligations, planned capital expenditure activities and liquidity requirements. Our future success in growing our proved reserves and production will be highly dependent on net cash provided by operating activities and the capital resources available to us.

Based on strip prices as of March 31, 2023, we believe that net cash provided by operating activities and available borrowings under the Credit Facility will be sufficient to meet our cash requirements, including normal operating needs, debt service obligations, capital expenditures and commitments and contingencies for at least the next 12 months.

39

Cash Flows

The following table summarizes our cash flows (in thousands):

	Three Months Ended March 31,
	2022		2023
Net cash provided by operating activities	$	565,673		343,902
Net cash used in investing activities		(215,117)		(350,804)
Net cash provided by (used in) financing activities		(350,556)		6,902
Net increase in cash and cash equivalents	$	—		—

Operating activities. Net cash provided by operating activities was $566 million and $344 million for the three months ended March 31, 2022 and 2023, respectively. Net cash provided by operating activities decreased primarily due to lower commodity prices, a $202 million payment for early settlement of our swaption agreement and increased gathering compression, processing and transportation expenses, lease operating expenses, general and administrative expenses (excluding equity-based compensation expense) and contract termination expense, partially offset by increased production and decreased net marketing expense and production and ad valorem taxes between periods.

Our net operating cash flows are sensitive to many variables, the most significant of which is the volatility of natural gas, NGLs and oil prices, as well as volatility in the cash flows attributable to settlement of our commodity derivatives. Prices for natural gas, NGLs and oil are primarily determined by prevailing market conditions. Regional and worldwide economic activity, weather, infrastructure capacity to reach markets, storage capacity and other variables influence the market conditions for these products. These factors are beyond our control and are difficult to predict.

Investing activities. Net cash used in investing activities increased from $215 million for the three months ended March 31, 2022 to $351 million for the three months ended March 31, 2023, primarily due to an increase in capital expenditures of $135 million between periods. The increase in capital expenditures between periods is primarily due to increased completions activity, higher fresh water delivery and drilling costs and increased land purchases between periods.

Financing activities. Net cash flows used in financing activities for the three months ended March 31, 2022 were $351 million, as compared to $7 million in net cash flows provided by financing activities for the three months ended March 31, 2023. During the three months ended March 31, 2022, we (i) redeemed $585 million aggregate principal amount of our 2025 Notes at 101.25% of the principal amount thereof, (ii) repurchased 4 million shares of our common stock at a total cost of $100 million, (iii) distributed $36 million to the noncontrolling interests in Martica and (iv) paid $10 million in employee withholding taxes for vested equity-based awards. Additionally, we borrowed $388 million, net, on our Credit Facility during the three months ended March 31, 2022. During the three months ended March 31, 2023, we borrowed $145 million, net, on our Credit Facility, partially offset by the repurchase of 3 million shares of our common stock at a total cost of $75 million, distributions to the noncontrolling interests in Martica of $51 million and payments for employee withholding taxes for vested equity-based awards of $11 million.

2023 Capital Budget and Capital Spending

On February 15, 2023, we announced a net capital budget for 2023 of $1.025 billion to $1.075 billion. Our budget includes: a range of $875 million to $925 million for drilling and completion and $150 million for leasehold expenditures. We do not budget for acquisitions. During 2023, we plan to complete 60 to 65 net horizontal wells in the Appalachian Basin. We periodically review our capital expenditures and adjust our budget and its allocation based on liquidity, drilling results, leasehold acquisition opportunities and commodity prices.

For the three months ended March 31, 2023, our total consolidated capital expenditures were $342 million, including drilling and completion costs of $267 million, leasehold acquisitions of $72 million, and other capital expenditures of $3 million.

Debt Agreements

See Note 7—Long Term Debt to the unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q and to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the 2022 Form 10-K for information on our senior notes.

40

Critical Accounting Policies and Estimates

The discussion and analysis of our financial condition and results of operations are based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. Certain accounting policies involve judgments and uncertainties to such an extent that there is reasonable likelihood that materially different amounts could have been reported under different conditions, or if different assumptions had been used. We evaluate our estimates and assumptions on a regular basis. We base our estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates and assumptions used in preparation of our unaudited condensed consolidated financial statements. Our more significant accounting policies and estimates include the successful efforts method of accounting for our production activities, estimates of natural gas, NGLs and oil reserve quantities and standardized measure of future cash flows and impairment of proved properties. We provide an expanded discussion of our more significant accounting policies, estimates and judgments in the 2022 Form 10-K. We believe these accounting policies reflect our more significant estimates and assumptions used in the preparation of our unaudited condensed consolidated financial statements. Also, see Note 2—Summary of Significant Accounting Policies to the consolidated financial statements, included in the 2022 Form 10-K, for a discussion of additional accounting policies and estimates made by management.

We evaluate the carrying amount of our proved natural gas, NGLs and oil properties for impairment for the Utica and Marcellus Shale properties, by property, when events or changes in circumstances indicate that a property’s carrying amount may not be recoverable. Under GAAP for successful efforts accounting, if the carrying amount exceeds the estimated undiscounted future net cash flows (measured using future prices), we estimate the fair value of our proved properties and record an impairment charge for any excess of the carrying amount of the properties over the estimated fair value of the properties.

Based on future prices as of March 31, 2023, the estimated undiscounted future net cash flows exceeded the carrying amount and no further evaluation was required. We have not recorded any impairment expenses associated with our proved properties during the three months ended March 31, 2022 and 2023.

Estimated undiscounted future net cash flows are sensitive to commodity price swings and a decline in prices could result in the carrying amount exceeding the estimated undiscounted future net cash flows at the end of a future reporting period, which would require us to further evaluate if an impairment charge would be necessary. If future prices decline from March 31, 2023, the fair value of our properties may be below their carrying amounts and an impairment charge may be necessary. We are unable, however, to predict future commodity prices with any reasonable certainty.

New Accounting Pronouncements

See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements for information on new accounting pronouncements.

Off-Balance Sheet Arrangements

See Note 13—Commitments to the unaudited condensed consolidated financial statements for further information on off balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The primary objective of the following information is to provide forward-looking quantitative and qualitative information about our potential exposure to market risk. The term “market risk” refers to the risk of loss arising from adverse changes in natural gas, NGLs and oil prices, as well as interest rates. These disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses. This forward-looking information provides indicators of how we view and manage our ongoing market risk exposures.

Commodity Hedging Activities

Our primary market risk exposure is in the price we receive for our natural gas, NGLs and oil production. Pricing is primarily driven by spot regional market prices applicable to our U.S. natural gas production and the prevailing worldwide price for oil. Pricing for natural gas, NGLs and oil has, historically, been volatile and unpredictable, and we expect this

41

volatility to continue in the future. The prices we receive for our production depend on many factors outside of our control, including volatility in the differences between commodity prices at sales points and the applicable index price.

To mitigate some of the potential negative impact on our cash flows caused by changes in commodity prices, we may enter into financial derivative instruments for a portion of our natural gas, NGLs and oil production when management believes that favorable future prices can be secured.

Our financial hedging activities are intended to support natural gas, NGLs and oil prices at targeted levels and to manage our exposure to natural gas, NGLs and oil price fluctuations. These contracts may include commodity price swaps whereby we will receive a fixed price and pay a variable market price to the contract counterparty, collars that set a floor and ceiling price for the hedged production, basis differential swaps or embedded options. These contracts are financial instruments and do not require or allow for physical delivery of the hedged commodity.

As of March 31, 2023, we had in place natural gas swaps and basis swaps, as well as a call option and embedded put option covering portions of our projected production. Substantially all of our derivative arrangements terminate by December 31, 2023. Our commodity hedge position as of March 31, 2023 is summarized in Note 11—Derivative Instruments to our unaudited condensed consolidated financial statements. Under the Credit Facility, we are permitted to hedge up to 75% of our projected production for the next 60 months. We may enter into hedge contracts with a term greater than 60 months, and for no longer than 72 months, for up to 65% of our estimated production. Based on our production and our fixed price swap contracts, call option and embedded put option that settled during the three months ended March 31, 2023, our revenues would have decreased by $36 million for each $0.10 decrease per MMBtu in natural gas prices and $1.00 decrease per Bbl in oil and NGLs prices, excluding the effects of changes in the fair value of our derivative positions which remain open as of March 31, 2023.

All derivative instruments, other than those that meet the normal purchase and normal sale scope exception or other derivative scope exceptions, are recorded at fair market value in accordance with GAAP and are included in our consolidated balance sheets as assets or liabilities. The fair values of our derivative instruments are adjusted for non-performance risk. Because we do not designate these derivatives as accounting hedges, they do not receive hedge accounting treatment; therefore, all mark-to-market gains or losses, as well as cash receipts or payments on settled derivative instruments, are recognized in our statements of operations. We present total gains or losses on commodity derivatives (for both settled derivatives and derivative positions which remain open) within operating revenues as “Commodity derivative fair value gains (losses).”

Mark-to-market adjustments of derivative instruments cause earnings volatility but have no cash flow impact relative to changes in market prices until the derivative contracts are settled or monetized prior to settlement. We expect continued volatility in the fair value of our derivative instruments. Our cash flows are impacted when the associated derivative contracts are settled or monetized by making or receiving payments to or from the counterparty. As of December 31, 2022 and March 31, 2023, the estimated fair value of our commodity derivative instruments was a net liability$431 million and $89 million, respectively, comprised of current and noncurrent assets and liabilities.

Due to our improved liquidity and leverage position as compared to past levels, the percentage of our expected production that we hedge has decreased. For the three months ended March 31, 2022 and 2023, 36% and 2%, respectively, of our production was hedged through fixed price commodity swaps. Assuming our 2023 production is the same as our production in 2022, 1% of our production for 2023 will be hedged through fixed price commodity swaps.

Counterparty and Customer Credit Risk

Our principal exposures to credit risk are through receivables resulting from the following: the sale of our natural gas, NGLs and oil production ($364 million as of March 31, 2023), which we market to energy companies, end users and refineries, and commodity derivative contracts ($16 million as of March 31, 2023).

We are subject to credit risk due to the concentration of our receivables from several significant customers for sales of natural gas, NGLs and oil. We generally do not require our customers to post collateral. The inability or failure of our significant customers to meet their obligations to us, or their insolvency or liquidation, may adversely affect our financial results.

In addition, by using derivative instruments that are not traded on an exchange to hedge exposures to changes in commodity prices, we expose ourselves to the credit risk of our counterparties. Credit risk is the potential failure of a counterparty to perform under the terms of a derivative contract. When the fair value of a derivative contract is positive, the counterparty is expected to owe us, which creates credit risk. To minimize the credit risk in derivative instruments, it is our policy to enter into derivative contracts only with counterparties that are creditworthy financial institutions that management

42

deems to be competent and competitive market makers. The creditworthiness of our counterparties is subject to periodic review. We have commodity hedges in place with three different counterparties, one of which are lenders under the Credit Facility. As of March 31, 2023, substantially all of our derivative assets were with one counterparty that is not affiliated with our Credit Facility. The estimated fair value of our commodity derivative assets has been risk-adjusted using a discount rate based upon the counterparties’ respective published credit default swap rates (if available, or if not available, a discount rate based on the applicable Reuters bond rating) as of March 31, 2023 for each of the European and American banks. We believe that all of our counterparties currently are acceptable credit risks. Other than as provided by the Credit Facility, we are not required to provide credit support or collateral to any of our counterparties under our derivative contracts, nor are they required to provide credit support to us. As of March 31, 2023, we did not have any past-due receivables from, or payables to, any of the counterparties to our derivative contracts.

Interest Rate Risks

Our primary exposure to interest rate risk results from outstanding borrowings under the Credit Facility, which has a floating interest rate. The average annualized interest rate incurred on the Credit Facility for borrowings during the three months ended March 31, 2023 was 6.78%. We estimate that a 1.0% increase in the applicable average interest rates for the three months ended March 31, 2023 would have resulted in an estimated $0.4 million increase in interest expense.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(b) under the Exchange Act, we have evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Our disclosure controls and procedures are designed to provide reasonable assurance that the information required to be disclosed by us in reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosures and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based upon that evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of March 31, 2023 at a level of reasonable assurance.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

43

PART II—OTHER INFORMATION

Item 1. Legal Proceedings

The information required by this item is included in Note 14—Contingencies to our unaudited condensed consolidated financial statements and is incorporated herein.

Item 1A. Risk Factors

We are subject to certain risks and hazards due to the nature of the business activities we conduct. For a discussion of these risks, see “Item 1A.  Risk Factors” in the 2022 Form 10-K. There have been no material changes to the risks described in such report. We may experience additional risks and uncertainties not currently known to us. Furthermore, as a result of developments occurring in the future, conditions that we currently deem to be immaterial may also materially and adversely affect us.

Item 2. Unregistered Sales of Equity Securities

Issuer Purchases of Equity Securities

The following table sets forth our share purchase activity for each period presented:

				Total Number	Approximate
				of Shares	Dollar Value
				Repurchased	of Shares
				as Part of	that May
	Total Number			Publicly	Yet be Purchased
	of Shares	Average Price		Announced	Under the Plan
Period	Purchased (1)	Paid Per Share		Plans	($ in thousands)
January 1, 2023 - January 31, 2023	2,940,407	$	29.21	2,581,827		1,234,929
February 1, 2023 - February 28, 2023	32,735		27.92	—		1,234,929
March 1, 2023 - March 31, 2023	—		—	—		1,234,929
Total	2,973,142	$	29.20	2,581,827

(1) The total number of shares purchased includes shares of our common stock transferred to us in order to satisfy tax withholding obligations incurred upon the vesting of equity awards held by our employees.

Item 4. Mine Safety Disclosures

The required disclosure under Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 C.F.R Section 229.104) is included in Exhibit 95.1 to this Quarterly Report on Form 10-Q.

44

Item 6. Exhibits

Exhibit Number	Description of Exhibit
3.1	Amended and Restated Certificate of Incorporation of Antero Resources Corporation (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K (Commission File No. 001-36120) filed on October 17, 2013).
3.2	Second Amended and Restated Bylaws of Antero Resources Corporation, dated February 14, 2023 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 10-K (Commission File No. 001-36120) filed on February 15, 2023).
31.1*	Certification of the Company’s Chief Executive Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 7241).
31.2*	Certification of the Company’s Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 7241).
32.1*	Certification of the Company’s Chief Executive Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 1350).
32.2*	Certification of the Company’s Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. Section 1350).
95.1*	Federal Mine Safety and Health Act Information.
101*	The following financial information from this Quarterly Report on Form 10-Q of Antero Resources Corporation for the quarter ended March 31, 2023 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Condensed Consolidated Statements of Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements, tagged as blocks of text.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

The exhibits marked with the asterisk symbol (*) are filed or furnished with this Quarterly Report on Form 10-Q.

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ANTERO RESOURCES CORPORATION
By:	/s/ MICHAEL N. KENNEDY
	Michael N. Kennedy
	Chief Financial Officer and Senior Vice President–Finance
Date:	April 26, 2023

46

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Paul M. Rady, President and Chief Executive Officer of Antero Resources Corporation, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 of Antero Resources Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 26, 2023

/s/ Paul M. Rady

Paul M. Rady

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

I, Michael N. Kennedy, Chief Financial Officer and Senior Vice President – Finance of Antero Resources Corporation, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 of Antero Resources Corporation (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 26, 2023

/s/ Michael N. Kennedy

Michael N. Kennedy

Chief Financial Officer and Senior Vice President – Finance

EX-32.1

Exhibit 32.1

CERTIFICATION OF
CHIEF EXECUTIVE OFFICER
OF ANTERO RESOURCES CORPORATION
PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Quarterly Report on Form 10-Q of Antero Resources Corporation for the quarter ended March 31, 2023, I, Paul M. Rady, President and Chief Executive Officer of Antero Resources Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. This Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 fairly presents, in all material respects, the financial condition and results of operations of Antero Resources Corporation for the periods presented therein.

Date: April 26, 2023

/s/ Paul M. Rady

Paul M. Rady

President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF
CHIEF FINANCIAL OFFICER
OF ANTERO RESOURCES CORPORATION
PURSUANT TO 18 U.S.C. SECTION 1350

In connection with this Quarterly Report on Form 10-Q of Antero Resources Corporation for the quarter ended March 31, 2023, I, Michael N. Kennedy, Chief Financial Officer and Senior Vice President – Finance of Antero Resources Corporation, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. This Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 fairly presents, in all material respects, the financial condition and results of operations of Antero Resources Corporation for the periods presented therein.

Date: April 26, 2023

/s/ Michael N. Kennedy

Michael N. Kennedy

Chief Financial Officer and Senior Vice President – Finance

EX-95.1

Exhibit 95.1

Federal Mine Safety and Health Act Information

The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) requires issuers to include in periodic reports filed with the SEC certain information relating to citations or orders for violations of standards under the Federal Mine Safety and Health Act of 1977, as amended by the Federal Mine Improvement and New Emergency Response Act of 2006 relating to mines in the United States. The Company owns the Appalachia Sand & Gravel sand mine, MSHA Mine ID No. 33-04769, located in Washington, Ohio. Operations at the mine are conducted by a third party.

During the three months ended March 31, 2023, there were no violations, citations, or orders, related assessments or legal actions, or any mining-related fatalities or similar events, requiring disclosure pursuant to Section 1503(a) of the Dodd-Frank Act.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 21, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-36120
Entity Registrant Name	ANTERO RESOURCES CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	80-0162034
Entity Address, Address Line One	1615 Wynkoop Street
Entity Address, City or Town	Denver
Entity Address, State or Province	CO
Entity Address, Postal Zip Code	80202
City Area Code	303
Local Phone Number	357-7310
Title of 12(b) Security	Common Stock, par value $0.01
Trading Symbol	AR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		300,135,248
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001433270
Amendment Flag	false

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Accounts receivable	$ 30,207	$ 35,488
Accrued revenue	379,337	707,685
Derivative instruments	6,242	1,900
Prepaid expenses and other current assets	21,856	42,452
Total current assets	437,642	787,525
Oil and gas properties, at cost (successful efforts method):
Unproved properties	1,013,780	997,715
Proved properties	13,450,257	13,234,777
Gathering systems and facilities	5,882	5,802
Other property and equipment	87,091	83,909
Property and equipment, gross	14,557,010	14,322,203
Less accumulated depletion, depreciation, and amortization	(4,771,093)	(4,683,399)
Property and equipment, net	9,785,917	9,638,804
Operating leases right-of-use assets	3,401,994	3,444,331
Derivative instruments	9,825	9,844
Investment in unconsolidated affiliate	219,515	220,429
Other assets	16,253	17,106
Total assets	13,871,146	14,118,039
Current liabilities:
Accounts payable	83,685	77,543
Accounts payable, related parties	99,784	80,708
Accrued liabilities	318,084	461,788
Revenue distributions payable	381,880	468,210
Derivative instruments	28,716	97,765
Short-term lease liabilities	553,532	556,636
Deferred revenue, VPP	29,757	30,552
Other current liabilities	2,103	1,707
Total current liabilities	1,497,541	1,774,909
Long-term liabilities:
Long-term debt	1,312,046	1,183,476
Deferred income tax liability, net	822,010	759,861
Derivative instruments	75,854	345,280
Long-term lease liabilities	2,851,571	2,889,854
Deferred revenue, VPP	81,075	87,813
Other liabilities	60,657	59,692
Total liabilities	6,700,754	7,100,885
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued
Common stock, $0.01 par value; authorized - 1,000,000 shares; 297,393 shares issued and 297,359 outstanding as of December 31, 2022, and 299,321 shares issued and outstanding as of March 31, 2023	2,993	2,974
Additional paid-in capital	5,806,031	5,838,848
Retained earnings	1,102,340	913,896
Treasury stock, at cost; 34 shares and zero shares as of December 31, 2022 and March 31, 2023, respectively		(1,160)
Total stockholders' equity	6,911,364	6,754,558
Noncontrolling interests	259,028	262,596
Total equity	7,170,392	7,017,154
Total liabilities and equity	$ 13,871,146	$ 14,118,039

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2023	Dec. 31, 2022
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	50,000	50,000
Preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	1,000,000	1,000,000
Common stock, shares issued	299,321	297,393
Common stock, shares outstanding	299,321	297,359
Treasury stock, shares	0	34

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue and other:
Total revenue	$ 1,408,348	$ 786,840
Operating expenses:
Lease operating	29,321	17,780
Production and ad valorem taxes	49,276	52,808
General and administrative (including equity-based compensation expense of $4,649 and $13,018 in 2022 and 2023, respectively)	57,261	35,691
Depletion, depreciation and amortization	167,582	168,388
Impairment of property and equipment	15,560	22,462
Accretion of asset retirement obligations	878	2,444
Contract termination	29,550	8
Loss (gain) on sale of assets	(91)	1,786
Other operating expense	225
Total operating expenses	1,076,858	991,439
Operating income (loss)	331,490	(204,599)
Other income (expense):
Interest expense, net	(25,700)	(37,713)
Equity in earnings of unconsolidated affiliate	17,681	25,178
Loss on early extinguishment of debt		(10,654)
Loss on convertible note inducement	(86)
Total other expense	(8,105)	(23,189)
Income (loss) before income taxes	323,385	(227,788)
Income tax benefit (expense)	(62,183)	53,092
Net income (loss) and comprehensive income (loss) including noncontrolling interests	261,202	(174,696)
Less: net income and comprehensive income attributable to noncontrolling interests	47,771	(18,277)
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation	$ 213,431	$ (156,419)
Income (loss) per share-basic (in dollars per share)	$ 0.72	$ (0.50)
Income (loss) per share-diluted (in dollars per share)	$ 0.69	$ (0.50)
Weighted average number of shares outstanding:
Basic (in shares)	296,763	314,081
Diluted (in shares)	311,846	314,081
Natural gas sales
Revenue and other:
Total revenue	$ 668,315	$ 995,792
Natural gas liquids sales
Revenue and other:
Total revenue	495,435	660,305
Oil sales
Revenue and other:
Total revenue	51,811	63,294
Gathering, compression, water handling and treatment, processing, and transportation
Operating expenses:
Cost of goods and services sold	645,172	590,278
Marketing.
Revenue and other:
Total revenue	58,529	69,038
Operating expenses:
Cost of goods and services sold	81,361	98,896
Commodity derivative fair value gains (losses)
Revenue and other:
Total revenue	126,192	(1,011,380)
Amortization of deferred revenue, VPP
Revenue and other:
Total revenue	7,533	9,272
Other revenue and income
Revenue and other:
Total revenue	533	519
Exploration and mine expenses
Operating expenses:
Cost of goods and services sold	$ 763	$ 898

XML

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
Equity-based compensation expense	$ 13,018	$ 4,649

XML

Condensed Consolidated Statement of Equity - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit).	Treasury Stock	Noncontrolling Interests	Total
Balances at Dec. 31, 2021	$ 3,139	$ 6,371,398	$ (617,377)		$ 308,932	$ 6,066,092
Balances (in shares) at Dec. 31, 2021	313,930
Increase (Decrease) in Stockholders' Equity
Equity component of 2026 Convertible Notes, net		(24,411)	3,229			(21,182)
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes	$ 8	(10,385)				(10,377)
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares)	780
Repurchases and retirements of common stock	$ (37)	(74,745)	(25,263)			(100,045)
Repurchases and retirements of common stock (in shares)	(3,690)
Equity-based compensation		4,649				4,649
Distributions to non-controlling interest					(35,757)	(35,757)
Net income (loss) and comprehensive income (loss)			(156,419)		(18,277)	(174,696)
Balance at Mar. 31, 2022	$ 3,110	6,266,506	(795,830)		254,898	5,728,684
Balance (in shares) at Mar. 31, 2022	311,020
Balances at Dec. 31, 2022	$ 2,974	5,838,848	913,896	$ (1,160)	262,596	7,017,154
Balances (in shares) at Dec. 31, 2022	297,393			(34)
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes	$ 5	(11,464)				(11,459)
Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes (in shares)	514
Conversion of 2026 Convertible Notes	$ 40	17,132				17,172
Conversion of 2026 Convertible Notes (in shares)	4,030
Repurchases and retirements of common stock	$ (26)	(51,503)	(24,987)	$ 1,160		(75,356)
Repurchases and retirements of common stock (in shares)	(2,616)			34
Equity-based compensation		13,018				13,018
Distributions to non-controlling interest					(51,339)	(51,339)
Net income (loss) and comprehensive income (loss)			213,431		47,771	261,202
Balance at Mar. 31, 2023	$ 2,993	$ 5,806,031	$ 1,102,340		$ 259,028	$ 7,170,392
Balance (in shares) at Mar. 31, 2023	299,321

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows provided by (used in) operating activities:
Net income (loss) including noncontrolling interests	$ 261,202	$ (174,696)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation, amortization and accretion	168,460	170,832
Impairments	15,560	22,462
Commodity derivative fair value gains (losses)	(126,192)	1,011,380
Losses on settled commodity derivatives	(14,268)	(285,386)
Payments for derivative monetizations	(202,339)
Deferred income tax expense (benefit)	62,149	(57,383)
Equity-based compensation expense	13,018	4,649
Equity in earnings of unconsolidated affiliate	(17,681)	(25,178)
Dividends of earnings from unconsolidated affiliate	31,285	31,285
Amortization of deferred revenue	(7,533)	(9,272)
Amortization of debt issuance costs, debt discount, debt premium and other	871	1,451
Settlement of asset retirement obligations	(308)	(886)
Loss (gain) on sale of assets	(91)	1,786
Loss on early extinguishment of debt		10,654
Loss on convertible note inducement	86
Changes in current assets and liabilities:
Accounts receivable	5,282	33,244
Accrued revenue	328,349	(69,442)
Other current assets	20,596	(2,952)
Accounts payable including related parties	34,604	37,664
Accrued liabilities	(143,346)	(94,456)
Revenue distributions payable	(86,331)	(36,526)
Other current liabilities	529	(3,557)
Net cash provided by operating activities	343,902	565,673
Cash flows provided by (used in) investing activities:
Additions to unproved properties	(73,527)	(23,789)
Drilling and completion costs	(273,154)	(184,557)
Additions to other property and equipment	(4,631)	(7,530)
Proceeds from asset sales	91	195
Change in other assets	417	564
Net cash used in investing activities	(350,804)	(215,117)
Cash flows provided by (used in) financing activities:
Repurchases of common stock	(75,356)	(100,045)
Repayment of senior notes		(591,943)
Borrowings on bank credit facilities, net	145,300	387,700
Convertible note inducement	(86)
Distributions to noncontrolling interests in Martica Holdings LLC	(51,339)	(35,757)
Employee tax withholding for settlement of equity compensation awards	(11,459)	(10,377)
Other	(158)	(134)
Net cash provided by (used in) financing activities	6,902	(350,556)
Net increase in cash and cash equivalents	0	0
Cash and cash equivalents, beginning of period	0	0
Cash and cash equivalents, end of period	0	0
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	43,239	80,454
Decrease in accounts payable and accrued liabilities for additions to property and equipment	$ (9,918)	$ (14,449)

XML

Organization

3 Months Ended

Mar. 31, 2023

Organization

Organization

(1) Organization

Antero Resources Corporation (individually referred to as “Antero” and together with its consolidated subsidiaries “Antero Resources,” or the “Company”) is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties in the Appalachian Basin in West Virginia and Ohio. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. The Company’s corporate headquarters is located in Denver, Colorado.

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

(2) Summary of Significant Accounting Policies

(a) Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2022 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position and accounting policies. The Company’s December 31, 2022 consolidated financial statements were included in Antero Resources’ 2022 Annual Report on Form 10-K, which was filed with the SEC.

These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2022 and March 31, 2023, results of operations and cash flows for the three months ended March 31, 2022 and 2023. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments and other factors.

(b) Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, its wholly owned subsidiaries and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements.

(c) Cash and Cash Equivalents

The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $28 million and $43 million, respectively. As of March 31, 2023, the book overdrafts included within accounts payable and revenue distributions payable were $46 million and $31 million, respectively.

(d) Income (Loss) Per Common Share

Income (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period. Income (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method. The Company includes restricted stock unit (“RSU”)

awards, performance share unit (“PSU”) awards and stock options in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effects of all equity awards and the 2026 Convertible Notes are anti-dilutive.

The following is a reconciliation of the Company’s income (loss) attributable to common stockholders for basic and diluted income (loss) per share (in thousands):

	Three Months Ended March 31,
	2022		2023
Net income (loss) attributable to Antero Resources Corporation—common shareholders	$	(156,419)		213,431
Add: Interest expense for 2026 Convertible Notes		—		616
Less: Tax-effect of interest expense for 2026 Convertible Notes		—		(132)
Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions	$	(156,419)		213,915
Income (loss) per share—basic	$	(0.50)		0.72
Income (loss) per share—diluted	$	(0.50)		0.69
Weighted average common shares outstanding—basic		314,081		296,763
Weighted average common shares outstanding—diluted		314,081		311,846

The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):

	Three Months Ended March 31,
	2022	2023
Basic weighted average number of shares outstanding	314,081	296,763
Add: Dilutive effect of RSUs	—	2,150
Add: Dilutive effect of PSUs	—	1,060
Add: Dilutive effect of 2026 Convertible Notes	—	11,873
Diluted weighted average number of shares outstanding	314,081	311,846
Weighted average number of outstanding securities excluded from calculation of diluted income (loss) per common share (1):
RSUs	4,878	969
PSUs	3,443	414
Stock options	351	324
2026 Convertible Notes	18,778	—

(1) The potential dilutive effects of these awards were excluded from the computation of income (loss) per common share—diluted because the inclusion of these awards would have been anti-dilutive.

(e) Recently Issued Accounting Standard

Convertible Debt Instruments

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the cash conversion model in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options, that require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. It is effective for interim and annual reporting periods beginning after December 31,

2021. The Company adopted the standard effective January 1, 2022 under the modified retrospective transition method, which impacts only the debt instruments outstanding on the adoption date.

Upon adoption of this new standard, the Company reclassified $24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $27 million, reduced deferred income tax liability by $6 million and reduced accumulated deficit by $3 million as of January 1, 2022. Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2023 is based on an effective interest rate of 4.9% as compared to 15.1% prior to the adoption of this new standard.

XML

Transactions

3 Months Ended

Mar. 31, 2023

Transactions

Transactions

(3) Transactions

(a) Conveyance of Overriding Royalty Interest

On June 15, 2020, the Company announced the consummation of a transaction with an affiliate of Sixth Street Partners, LLC (“Sixth Street”) relating to certain overriding royalty interests across the Company’s existing asset base (the “ORRIs”).

The ORRIs include an overriding royalty interest of 1.25% in all of the Company’s operated proved developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”) as of April 1, 2020, and an overriding royalty interest of 3.75% in all of the Company’s undeveloped properties in West Virginia and Ohio (the “Development Override”) as of April 1, 2020. Wells turned to sales after April 1, 2020 and prior to the later of (a) the date on which the Company turns to sales 2.2 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override and (b) the earlier of (i) April 1, 2023 and (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override, are subject to the Development Override. As of April 1, 2023, the Company had turned to sales over 2.2 million lateral feet and less than 3.82 million lateral feet. As a result, wells turned to sales on or after April 1, 2023 will not be subject to the ORRIs.

The ORRIs also include an additional overriding royalty interest of 2.00% of the Company’s working interest in the properties underlying the Initial PDP Override (the “Incremental Override”). The Incremental Override (or a portion thereof, as applicable) may be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs are achieved through March 31, 2023. Any portion of the Incremental Override that may not be re-conveyed to the Company based on the Company failing to achieve such production volumes through March 31, 2023 will remain with Martica.

Prior to Sixth Street achieving an internal rate of return of 13% and 1.5x cash-on-cash return (the “Hurdle”), Sixth Street will receive all distributions in respect of the Initial PDP Override and the Development Override, and the Company will receive all distributions in respect of the Incremental Override, unless certain production targets are not achieved, in which case Sixth Street will receive some or all of the distributions in respect of the Incremental Override. Following Sixth Street achieving the Hurdle, the Company will receive 85% of the distributions in respect of the ORRIs to which Sixth Street was entitled immediately prior to the Hurdle being achieved.

(b) Drilling Partnership

On February 17, 2021, Antero Resources announced the formation of a drilling partnership with QL Capital Partners (“QL”), an affiliate of Quantum Energy Partners, for the Company’s 2021 through 2024 drilling program. Under the terms of the arrangement, each year in which QL participates represents an annual tranche, and QL will be conveyed a working interest in any wells spud by Antero Resources during such tranche year. For 2021, 2022 and 2023, Antero Resources and QL agreed to the estimated internal rate of return (“IRR”) of the Company’s capital budget for each annual tranche, and QL agreed to participate in the 2021, 2022, and 2023 tranches. For 2024, Antero Resources will propose a capital budget and estimated IRR for all wells to be spud during such year and, subject to the mutual agreement of the parties that the estimated IRR for the year exceeds a specified return, QL will be obligated to participate in such tranche. Antero Resources develops and manages the drilling program associated with each tranche, including the selection of wells. Additionally, for each annual tranche in which QL participates, Antero Resources and QL will enter into assignments, bills of sale and conveyances pursuant to which QL will be conveyed a proportionate working interest percentage in each well spud in that year, which conveyances will not be subject to any reversion.

Under the terms of the arrangement, QL funded 20% and 15% of development capital for wells spud in 2021 and 2022, respectively, and will fund development capital of (i) 15% for wells spud in 2023 and (ii) if they participate in 2024,

between 15% and 20% for wells spud in 2024, which funding amounts represent QL’s proportionate working interest in such wells. Additionally, Antero Resources may receive a carry in the form of a one-time payment from QL for each annual tranche if the IRR for such tranche exceeds certain specified returns, which will be determined no earlier than October 31 and no later than December 1 following the end of each tranche year. During the year ended December 31, 2022, the Company received a carry of $29 million attributable to the 2021 tranche. All of the wells spud during each calendar year period will be a separate annual tranche. Capital costs in excess of, and cost savings below, a specified percentage of budgeted amounts for each annual tranche will be for Antero Resources’ account. Subject to the preceding sentence, for any wells included in a tranche, QL is obligated and responsible for its working interest share of costs and liabilities, and is entitled to its working interest share of revenues, associated with such wells for the life of such wells.

The Company has accounted for the drilling partnership as a conveyance under ASC 932, Extractive Activities—Oil and Gas, and such conveyances are recorded in the unaudited condensed consolidated financial statements as QL obtains its proportionate working interest in each well. No gain or loss was recognized for the interests conveyed during the three months ended March 31, 2022 and 2023.

XML

Revenue

3 Months Ended

Mar. 31, 2023

Revenue

Revenue

(4) Revenue

(a) Disaggregation of Revenue

The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments.

	Three Months Ended March 31,
	2022		2023		Reportable Segment
Revenues from contracts with customers:
Natural gas sales	$	995,792		668,315	Exploration and production
Natural gas liquids sales (ethane)		67,063		72,050	Exploration and production
Natural gas liquids sales (C3+ NGLs)		593,242		423,385	Exploration and production
Oil sales		63,294		51,811	Exploration and production
Marketing		69,038		58,529	Marketing
Other revenue		—		175	Exploration and production
Total revenue from contracts with customers		1,788,429		1,274,265
Income (loss) from derivatives, deferred revenue and other sources, net		(1,001,589)		134,083
Total revenue	$	786,840		1,408,348

(b) Transaction Price Allocated to Remaining Performance Obligations

For the Company’s product sales that have a contract term greater than one year, the Company utilized the practical expedient in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which does not require the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s product sales contracts, each unit of product delivered to the customer represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. For the Company’s product sales that have a contract term of one year or less, the Company utilized the practical expedient in ASC 606, which does not require the disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less.

(c) Contract Balances

Under the Company’s sales contracts, the Company invoices customers after its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. As of December 31, 2022 and March 31, 2023, the Company’s receivables from contracts with customers were $708 million and $379 million, respectively.

XML

Equity Method Investment

3 Months Ended

Mar. 31, 2023

Equity Method Investment

Equity Method Investment

(5) Equity Method Investment

(a) Summary of Equity Method Investment

As of March 31, 2023, Antero owned 29.0% of Antero Midstream’s common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting.

The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands):

Balance as of December 31, 2022 (1)	$	220,429
Equity in earnings of unconsolidated affiliate		17,681
Dividends from unconsolidated affiliate		(31,285)
Elimination of intercompany profit		12,690
Balance as of March 31, 2023 (1)	$	219,515

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2022 and March 31, 2023 was $1.5 billion based on the quoted market share price of Antero Midstream.

XML

Accrued Liabilities

3 Months Ended

Mar. 31, 2023

Accrued Liabilities

Accrued Liabilities

(6) Accrued Liabilities

Accrued liabilities consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Capital expenditures	$	57,361		44,213
Gathering, compression, processing and transportation expenses		162,783		159,375
Marketing expenses		61,118		27,073
Interest expense, net		31,892		13,582
Production and ad valorem taxes		32,536		36,861
General and administrative expense		32,477		20,260
Derivative settlements payable		53,732		411
Other		29,889		16,309
Total accrued liabilities	$	461,788		318,084

XML

Long-Term Debt

3 Months Ended

Mar. 31, 2023

Long-Term Debt.

Long-Term Debt

(7) Long-Term Debt

Long-term debt consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Credit Facility (a)	$	34,800		180,100
8.375% senior notes due 2026 (c)		96,870		96,870
7.625% senior notes due 2029 (d)		407,115		407,115
5.375% senior notes due 2030 (e)		600,000		600,000
4.25% convertible senior notes due 2026 (f)		56,932		39,426
Total principal		1,195,717		1,323,511
Unamortized debt issuance costs		(12,241)		(11,465)
Long-term debt	$	1,183,476		1,312,046

(a) Senior Secured Revolving Credit Facility

Antero Resources has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of banks. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations. As of December 31, 2022 and March 31, 2023, the Credit Facility had a borrowing base of $3.5 billion and lender commitments of $1.5 billion. The borrowing base was re-

affirmed in the semi-annual redetermination in April 2023. The maturity date of the Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is 180 days prior to the earliest stated redemption date of any series of the Company’s then outstanding senior notes. As of March 31, 2023, the Credit Facility had an available borrowing capacity of $816 million.

The Credit Facility contains requirements with respect to leverage and current ratios, and certain covenants, including restrictions on our ability to incur debt and limitations on our ability to pay dividends unless certain customary conditions are met, in each case, subject to customary carve-outs and exceptions. Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2022 and March 31, 2023.

The Credit Facility provides for borrowing at either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the Credit Facility). The Credit Facility provides for interest only payments until maturity at which time all outstanding borrowings are due. Interest is payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of borrowing, plus an applicable margin rate under the Credit Facility. Interest at the time of borrowing is determined with reference to the Antero Resources’ then-current leverage ratio subject to certain exceptions. Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from 0.375% to 0.500% with respect to the Credit Facility, determined with reference to borrowing base utilization, subject to certain exceptions based on the leverage ratio then in effect. The Credit Facility includes fall away covenants, lower interest rates and reduced collateral requirements that Antero Resources may elect if Antero Resources is assigned an Investment Grade Rating (as defined in the Credit Facility).

As of December 31, 2022, Antero Resources had an outstanding balance under the Credit Facility of $35 million, with a weighted average interest rate of 6.42%, and outstanding letters of credit of $504 million. As of March 31, 2023, Antero Resources had an outstanding balance under the Credit Facility of $180 million, with a weighted average interest rate of 6.91%, and outstanding letters of credit of $504 million.

(b) 5.00% Senior Notes Due 2025

On December 21, 2016, Antero Resources issued $600 million of 5.00% senior notes due March 1, 2025 (the “2025 Notes”) at par. The Company repurchased or otherwise redeemed all of the 2025 Notes between 2020 and the first quarter of 2022, and the 2025 Notes were fully retired as of March 1, 2022. Interest on the 2025 Notes was payable on March 1 and September 1 of each year. See “—Debt Repurchase Program” below for more information.

(c) 8.375% Senior Notes Due 2026

On January 4, 2021, Antero Resources issued $500 million of 8.375% senior notes due July 15, 2026 (the “2026 Notes”) at par. The Company redeemed or otherwise repurchased $403 million principal amount of the 2026 Notes during 2021 and 2022, and as of March 31, 2023, $97 million principal amount of the 2026 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2026 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2026 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2026 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2026 Notes is payable on January 15 and July 15 of each year. Antero Resources may redeem all or part of the 2026 Notes at any time on or after January 15, 2024 at redemption prices ranging from 104.188% on or after January 15, 2024 to 100.00% on or after January 15, 2026. At any time prior to January 15, 2024, Antero Resources may also redeem the 2026 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2026 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2026 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2026 Notes, plus accrued and unpaid interest.

(d) 7.625% Senior Notes Due 2029

On January 26, 2021, Antero Resources issued $700 million of 7.625% senior notes due February 1, 2029 (the “2029 Notes”) at par. The Company redeemed or otherwise repurchased $293 million principal amount of the 2029 Notes during 2021 and 2022, and as of March 31, 2023, $407 million principal amount of the 2029 Notes remained outstanding. See “—Debt Repurchase Program” below for more information. The 2029 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2029 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2029 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its

future restricted subsidiaries. Interest on the 2029 Notes is payable on February 1 and August 1 of each year. Antero Resources may redeem all or part of the 2029 Notes at any time on or after February 1, 2024 at redemption prices ranging from 103.813% on or after February 1, 2024 to 100.00% on or after February 1, 2027. In addition, on or before February 1, 2024, Antero Resources may redeem up to 35% of the aggregate principal amount of the 2029 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 107.625% of the principal amount of the 2029 Notes, plus accrued and unpaid interest, which option the Company partially exercised on October 18, 2021 with its notice to redeem $116 million aggregate principal amount of outstanding 2029 Notes. At any time prior to February 1, 2024, Antero Resources may also redeem the 2029 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2029 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2029 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2029 Notes, plus accrued and unpaid interest.

(e) 5.375% Senior Notes Due 2030

On June 1, 2021, Antero Resources issued $600 million of 5.375% senior notes due March 1, 2030 (the “2030 Notes”) at par. The 2030 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2030 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2030 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2030 Notes is payable on March 1 and September 1 of each year. Antero Resources may redeem all or part of the 2030 Notes at any time on or after March 1, 2025 at redemption prices ranging from 102.688% on or after March 1, 2025 to 100.00% on or after March 1, 2028. In addition, on or before March 1, 2025, Antero Resources may redeem up to 35% of the aggregate principal amount of the 2030 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 105.375% of the principal amount of the 2030 Notes, plus accrued and unpaid interest. At any time prior to March 1, 2025, Antero Resources may also redeem the 2030 Notes, in whole or in part, at a price equal to 100% of the principal amount of the 2030 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2030 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101% of the principal amount of the 2030 Notes, plus accrued and unpaid interest.

(f) 4.25% Convertible Senior Notes Due 2026

On August 21, 2020, Antero Resources issued $250 million in aggregate principal amount of 4.25% convertible senior notes due September 1, 2026 (the “2026 Convertible Notes”). On September 2, 2020, Antero Resources issued an additional $37.5 million of the 2026 Convertible Notes. Proceeds from the issuance of the 2026 Convertible Notes totaled $278.5 million, net of initial purchasers’ fees and issuance cost of $9 million. The Company extinguished $206 million principal amount of the 2026 Convertible Notes in 2021. In addition, between 2022 and the first quarter of 2023, $43 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms or induced into conversion by the Company. See “—Conversions and Inducements,” for more information. As of March 31, 2023, $39 million principal amount of the 2026 Convertible Notes remained outstanding. The 2026 Convertible Notes were issued pursuant to an indenture and are senior, unsecured obligations of Antero Resources. The 2026 Convertible Notes bear interest at a fixed rate of 4.25% per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Each capitalized term used in this subsection but not otherwise defined in this Quarterly Report on Form 10-Q has the meaning as set forth in the indenture governing the 2026 Convertible Notes.

The initial conversion rate is 230.2026 shares of Antero Resources’ common stock per $1,000 principal amount of 2026 Convertible Notes, subject to adjustment upon the occurrence of specified events. As of March 31, 2023, the if-converted value of the 2026 Convertible Notes was $210 million, which exceeded the principal amount of the 2026 Convertible Notes by $170 million. The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted. Before May 1, 2026, noteholders will have the right to convert their 2026 Convertible Notes only upon the occurrence of the following events:

● during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2020, if the Last Reported Sale Price per share of Antero Resources’ common stock exceeds 130% of the Conversion Price for each of at least 20 Trading Days (whether or not consecutive) during

the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter (the “Stock Price Condition”);

● during the five consecutive Business Days immediately after any 10 consecutive Trading Day period (such 10 consecutive Trading Day period, the “Measurement Period”) if the Trading Price per $1,000 principal amount of 2026 Convertible Notes, as determined following a request by a noteholder in accordance with the procedures set forth below, for each Trading Day of the Measurement Period was less than 98% of the product of the Last Reported Sales Price per share of common stock on such Trading Day and the conversion rate on such Trading Day;

● if Antero Resources calls any or all of the 2026 Convertible Notes for redemption, at any time prior to the close of business on the scheduled Trading Day immediately preceding the redemption date; or

● upon the occurrence of certain specified corporate events as set forth in the indenture governing the 2026 Convertible Notes.

From and after May 1, 2026, noteholders may convert their 2026 Convertible Notes at any time at their election until the close of business on the second scheduled Trading Day immediately before the maturity date.

Upon conversion, Antero Resources may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of Antero Resources’ common stock or a combination of cash and shares of Antero Resources’ common stock, at Antero Resources’ election, in the manner and subject to the terms and conditions provided in the indenture governing the 2026 Convertible Notes. The 2026 Convertible Notes have met the Stock Price Condition allowing holders of the 2026 Convertible Notes to exercise their conversion right as of March 31, 2023.

The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the 2026 Convertible Notes. In addition, following certain corporate events, as described in the indenture governing the 2026 Convertible Notes, that occur prior to the maturity date, Antero Resources will increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such a corporate event.

If certain corporate events that constitute a Fundamental Change occur, then noteholders may require Antero Resources to repurchase their 2026 Convertible Notes at a cash repurchase price equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase Date. The definition of Fundamental Change includes certain business combination transactions involving Antero Resources and certain de-listing events with respect to Antero Resources’ common stock.

Upon issuance, the Company separately accounted for the liability and equity components of the 2026 Convertible Notes.  The liability component was recorded at the estimated fair value of a similar debt instrument without the conversion feature.  The difference between the principal amount of the 2026 Convertible Notes and the estimated fair value of the liability component was recorded as a debt discount and was amortized to interest expense, together with debt issuance costs, over the term of the 2026 Convertible Notes using the effective interest method, with an effective interest rate of 15.1% per annum.  As of the issuance date, the fair value of the 2026 Convertible Notes was estimated at $172 million, resulting in a debt discount at inception of $116 million.  The equity component, representing the value of the conversion option, was computed by deducting the fair value of the liability component from the initial proceeds of the 2026 Convertible Notes issuance.  This equity component was recorded, net of deferred taxes and issuance costs, in additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity.

Transaction costs related to the 2026 Convertible Notes issuance were allocated to the liability and equity components based on their relative fair values.  Issuance costs attributable to the liability component were recorded within debt issuance costs on the condensed consolidated balance sheet and were amortized over the term of the 2026 Convertible Notes using the effective interest method.  Issuance costs attributable to the equity component were recorded as a charge to additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity.

Effective January 1, 2022, the Company adopted ASU 2020-06 whereby the Company reclassified the equity component of the 2026 Convertible Notes outstanding on such date, net of deferred income taxes and equity issuance costs, from additional paid-in capital to long-term debt. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

Conversions and Inducements

During the three months ended March 31, 2023, $9 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms, and an additional $9 million aggregate principal amount of the 2026 Convertible Notes were induced into conversion by the Company. The Company elected to settle these conversions by issuing 4 million shares of common stock to the noteholders together with a cash inducement premium of $0.1 million.

The 2026 Convertible Notes consist of the following (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Principal	$	56,932		39,426
Less: unamortized debt issuance costs		(1,159)		(753)
Net carrying value	$	55,773		38,673

Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, and amortization of debt issuance costs totaled $1 million for each of the three months ended March 31, 2022 and 2023.

(g) Debt Repurchase Program

During the three months ended March 31, 2022, the Company redeemed the remaining $585 million aggregate principal amount of its 2025 Notes at a redemption price of 101.25% of the principal amount thereof, plus accrued and unpaid interest and recognized a loss on early debt extinguishment of $11 million.

XML

Asset Retirement Obligations

3 Months Ended

Mar. 31, 2023

Asset Retirement Obligations

Asset Retirement Obligations

(8) Asset Retirement Obligations

The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands):

Asset retirement obligations—December 31, 2022	$	59,485
Obligations incurred		248
Accretion expense		878
Settlement of obligations		(308)
Revisions to prior estimates		196
Asset retirement obligations—March 31, 2023	$	60,499

Asset retirement obligations are included in Other liabilities on the Company’s condensed consolidated balance sheets.

XML

Equity-Based Compensation and Cash Awards

3 Months Ended

Mar. 31, 2023

Equity-Based Compensation and Cash Awards

Equity-Based Compensation and Cash Awards

(9) Equity-Based Compensation and Cash Awards

On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which replaced the Antero Resources Corporation Long-Term Incentive Plan (the “2013 Plan”), and the 2020 Plan became effective as of such date. The 2020 Plan provides for grants of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, RSU awards, vested stock awards, dividend equivalent awards and other stock-based and cash awards. The terms and conditions of the awards granted are established by the Compensation Committee of Antero Resources’ Board of Directors. Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the 2020 Plan. No further awards will be granted under the 2013 Plan on or after June 17, 2020.

The 2020 Plan provides for the reservation of 10,050,000 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery from the 2013 Plan in accordance with the share recycling provisions described below. The share recycling provisions allow for all or any portion of an award (including an award granted under the 2013 Plan that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash or otherwise terminated without actual delivery of the shares to be considered not delivered and thus, available for new awards under the 2020 Plan. Further, any shares withheld or surrendered in payment of any taxes relating to awards that were

outstanding under either the 2013 Plan as of June 17, 2020 or are granted under the 2020 Plan (other than stock options and stock appreciation rights), will again be available for new awards under the 2020 Plan.

A total of 6,196,477 shares were available for future grant under the 2020 Plan as of March 31, 2023.

Antero Midstream Partners LP’s (“Antero Midstream Partners”) general partner was authorized to grant up to 10,000,000 common units representing limited partner interests in Antero Midstream Partners under the Antero Midstream Partners LP Long-Term Incentive Plan (the “AMP Plan”) to non-employee directors of its general partner and certain officers, employees and consultants of Antero Midstream Partners and its affiliates (which includes Antero Resources). Antero Resources deconsolidated Antero Midstream Partners on March 12, 2019, and on such date, each outstanding phantom unit award under the AMP Plan was assumed by Antero Midstream and converted into 1.8926 RSUs (all such RSUs, the “Converted AM RSU Awards”) under the Antero Midstream Corporation Long Term Incentive Plan (the “AM Plan”). Each RSU award under the AM Plan represented a right to receive one share of Antero Midstream common stock. As of March 31, 2023, all Converted AM RSU Awards were fully vested.

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):

	Three Months Ended March 31,
	2022		2023
RSU awards	$	2,720		7,262
PSU awards		1,419		5,405
Converted AM RSU Awards (1)		160		1
Equity awards issued to directors		350		350
Total expense	$	4,649		13,018

(1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. As of March 31, 2023, all Converted AM RSU Awards were fully vested, and there is no remaining unamortized expense attributable to these awards.

(a) Restricted Stock Unit Awards

A summary of RSU activity is as follows:

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Total awarded and unvested—December 31, 2022	4,676,219	$	15.29
Granted	1,425,619		25.98
Vested	(892,595)		3.20
Forfeited	(58,898)		22.46
Total awarded and unvested—March 31, 2023	5,150,345	$	20.27

As of March 31, 2023, there was $84 million of unamortized equity-based compensation expense related to unvested RSUs. That expense is expected to be recognized over a weighted average period of 2.5 years.

(b) Performance Share Unit Awards

Performance Share Unit Awards Based on Total Shareholder Return

In March 2023, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute total shareholder return determined as of the last day of each of three one-year performance periods ending on March 7, 2024, March 7, 2025 and March 7, 2026, and one cumulative three-year performance period ending on March 7, 2026, in each case, subject to certain continued employment criteria (“2023 Absolute TSR PSUs”). The number of shares of common stock that may ultimately be earned following the end of the cumulative three-year performance period with respect to the 2023 Absolute TSR PSUs ranges from zero to 200% of the target number of 2023

Absolute TSR PSUs originally granted. Expense related to these PSUs is recognized on a graded-vested basis over the term of each performance period. Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period.

The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2023 Absolute TSR PSUs:

Dividend yield		—	%
Volatility		82	%
Risk-free interest rate		4.61	%
Weighted average fair value of awards granted—Absolute TSR	$	33.96

Performance Share Unit Awards Based on Leverage Ratio

In March 2023, the Company granted PSUs to certain of its senior management and executive officers that vest based on the Company’s total debt less cash and cash equivalents divided by the Company’s Adjusted EBITDAX (as defined in the award agreement) determined as of the last day of each of three one-year performance periods ending on December 31, 2023, December 31, 2024 and December 31, 2025, in each case, subject to certain continued employment criteria (“2023 Leverage Ratio PSUs”). The number of shares of common stock that may ultimately be earned following the end of the third performance period with respect to the 2023 Leverage Ratio PSUs ranges from zero to 200% of the target number of 2023 Leverage Ratio PSUs originally granted. Expense related to the 2023 Leverage Ratio PSUs is recognized on a graded-vested basis over the term of each performance period that reflects the number of shares of common stock that are expected to be issued at the end of each measurement period, and such expense is reversed if the likelihood of achieving the performance condition becomes improbable. As of March 31, 2023, the likelihood of achieving the performance conditions related to the 2023 Leverage Ratio PSUs was probable.

Summary Information for Performance Share Unit Awards

A summary of PSU activity is as follows:

		Weighted
	Number of	Average Grant
	Units	Date Fair Value
Total awarded and unvested—December 31, 2022	1,329,725	$	23.18
Granted	417,466		28.51
Vested	—		—
Total awarded and unvested—March 31, 2023	1,747,191	$	24.45

As of March 31, 2023, there was $41 million of unamortized equity-based compensation expense related to unvested PSUs. That expense is expected to be recognized over a weighted average period of 1.8 years.

(c) Converted AM RSU Awards

A summary of the Converted AM RSU Awards is as follows:

		Weighted
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2022	2,827	$	12.38
Vested	(2,827)		12.38
Total awarded and unvested—March 31, 2023	—	$	—

As of March 31, 2023, all Converted AM RSU Awards were fully vested resulting in no unamortized equity-based compensation expense.

(d) Cash Awards

In January 2020, the Company granted cash awards of $3 million to certain executives under the 2013 Plan, and compensation expense for these awards was recognized ratably over the vesting period for each of three tranches through January 20, 2023. In July 2020, the Company granted additional cash awards in the aggregate of $3 million to certain non-executive employees under the 2020 Plan that vest ratably over four years. As of December 31, 2022 and March 31, 2023, the Company has recorded $1 million in Other liabilities in the condensed consolidated balance sheets related to unvested cash awards.

XML

Fair Value

3 Months Ended

Mar. 31, 2023

Fair Value.

Fair Value

(10) Fair Value

The carrying values of accounts receivable and accounts payable as of December 31, 2022 and March 31, 2023 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2022 and March 31, 2023 approximated fair value because the variable interest rates are reflective of current market conditions.

The following table sets forth the fair value and carrying value of the senior notes and 2026 Convertible Notes (in thousands):

					(Unaudited)
	December 31, 2022				March 31, 2023
	Fair		Carrying		Fair		Carrying
	Value (1)		Value (2)		Value (1)		Value (2)
2026 Notes	$	100,987		96,123		100,987		96,179
2029 Notes		410,860		402,872		415,257		403,011
2030 Notes		556,260		593,908		556,500		594,083
2026 Convertible Notes		406,039		55,773		209,135		38,673
Total	$	1,474,146		1,148,676		1,281,879		1,131,946

(1) Fair values are based on Level 2 market data inputs.

(2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums.

See Note 9—Equity-Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.

XML

Derivative Instruments

3 Months Ended

Mar. 31, 2023

Derivative Instruments.

Derivative Instruments

(11) Derivative Instruments

The Company is exposed to certain risks relating to its ongoing business operations, and it may use derivative instruments to manage its commodity price risk.  In addition, the Company periodically enters into contracts that contain embedded features that are required to be bifurcated and accounted for separately as derivatives.

(a) Commodity Derivative Positions

The Company periodically enters into natural gas, NGLs and oil derivative contracts with counterparties to hedge the price risk associated with its production. These derivatives are not entered into for trading purposes. To the extent that changes occur in the market prices of natural gas, NGLs and oil, the Company is exposed to market risk on these open contracts. This market risk exposure is generally offset by the change in market prices of natural gas, NGLs and oil recognized upon the ultimate sale of the Company’s production.

The Company was party to various fixed price commodity swap contracts that settled during the three months ended March 31, 2022 and 2023. The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured. Under these swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company pays the difference to the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company receives the difference from the counterparty. In addition, the Company has entered into basis swap contracts in order to hedge the

difference between the New York Mercantile Exchange (“NYMEX”) index price and a local index price. Under these basis swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company receives the difference from the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company pays the difference to the counterparty.

The Company’s derivative contracts have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s statements of operations.

As of March 31, 2023, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	43,000	MMBtu/day	$	2.37	/MMBtu

The Company has a call option and an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the volumetric production payment transaction (“VPP”) properties. The put option was embedded within another contract, and since the embedded put option was not clearly and closely related to its host contract, the Company bifurcated this derivative instrument and reflects it at fair value in the unaudited condensed consolidated financial statements. As of March 31, 2023, the Company’s call option and embedded put option arrangements were as follows:

							Embedded
				Call Option			Put Option
Commodity / Settlement Period	Index	Contracted Volume		Strike Price			Strike Price
Natural Gas
April-December 2023	Henry Hub	55,000	MMBtu/day	$	2.466	/MMBtu	$	2.466	/MMBtu
January-December 2024	Henry Hub	53,000	MMBtu/day		2.477	/MMBtu		2.527	/MMBtu
January-December 2025	Henry Hub	44,000	MMBtu/day		2.564	/MMBtu		2.614	/MMBtu
January-December 2026	Henry Hub	32,000	MMBtu/day		2.629	/MMBtu		2.679	/MMBtu

As of March 31, 2023, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
April-December 2023	NYMEX to TCO	50,000	MMBtu/day	$	0.525	/MMBtu
January-December 2024	NYMEX to TCO	50,000	MMBtu/day		0.530	/MMBtu

As of March 31, 2023, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows:

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	33,955	MMBtu/day	$	2.35	/MMBtu
January-December 2024	Henry Hub	23,885	MMBtu/day		2.33	/MMBtu
January-March 2025	Henry Hub	18,021	MMBtu/day		2.53	/MMBtu
Natural Gasoline
April-December 2023	Mont Belvieu Natural Gasoline-OPIS Non-TET	240	Bbl/day		40.74	/Bbl
Oil
April-December 2023	West Texas Intermediate	88	Bbl/day		44.85	/Bbl
January-December 2024	West Texas Intermediate	43	Bbl/day		44.02	/Bbl
January-March 2025	West Texas Intermediate	39	Bbl/day		45.06	/Bbl

(b) Summary

The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the condensed consolidated balance sheets (in thousands).

				(Unaudited)
	Balance Sheet	December 31,		March 31,
	Location	2022		2023
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments	$	—		397
Embedded derivatives—current	Derivative instruments		1,900		5,845
Embedded derivatives—noncurrent	Derivative instruments		9,844		9,825
Total asset derivatives (1)			11,744		16,067
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current (2)	Derivative instruments		97,765		28,716
Commodity derivatives—noncurrent (2)	Derivative instruments		345,280		75,854
Total liability derivatives (1)			443,045		104,570
Net derivatives liability (1)		$	(431,301)		(88,503)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

(2) As of December 31, 2022, $47 million of commodity derivative liabilities, including $28 million of current commodity derivatives and $19 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of March 31, 2023, $19 million of commodity derivative liabilities, including $9 million of current commodity derivatives and $10 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands):

							(Unaudited)
	December 31, 2022						March 31, 2023
					Net Amounts of						Net Amounts of
	Gross		Gross		Assets		Gross		Gross		Assets
	Amounts		Amounts Offset		(Liabilities) on		Amounts		Amounts Offset		(Liabilities) on
	Recognized		Recognized		Balance Sheet		Recognized		Recognized		Balance Sheet
Commodity derivative assets	$	276		(276)		—	$	3,043		(2,646)		397
Embedded derivative assets		11,744		—		11,744		15,670		—		15,670
Commodity derivative liabilities		(443,321)		276		(443,045)		(107,216)		2,646		(104,570)

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands):

	Statement of
	Operations	Three Months Ended March 31,
	Location	2022		2023
Commodity derivative fair value gains (losses) (1)	Revenue	$	(994,483)		127,080
Embedded derivative fair value gains (losses) (1)	Revenue	$	(16,897)		(888)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

Commodity derivative fair value gains (losses) for the three months ended March 31, 2023, includes a loss of $202 million related to the early settlement of the Company’s natural gas swaption agreement.  The payment for this early settlement is classified as an operating cash flow on the Company’s condensed consolidated statement of cash flows.

XML

Leases

3 Months Ended

Mar. 31, 2023

Leases

Leases

(12) Leases

The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. Instead, the short-term leases are recognized in expense on a straight-line basis over the lease term.

Most leases include one or more options to renew, with renewal terms that can extend the lease from one to 20 years or more. The exercise of the lease renewal options is at the Company’s sole discretion. The depreciable lives of the leased assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Certain of the Company’s lease agreements include minimum payments based on a percentage of produced volumes over contractual levels and others include rental payments adjusted periodically for inflation.

The Company considers all contracts that have assets specified in the contract, either explicitly or implicitly, that the Company has substantially all of the capacity of the asset, and has the right to obtain substantially all of the economic benefits of that asset, without the lessor’s ability to have a substantive right to substitute that asset, as leased assets. For any contract deemed to include a leased asset, that asset is capitalized on the balance sheet as a right-of-use asset and a corresponding lease liability is recorded at the present value of the known future minimum payments of the contract using a discount rate on the date of commencement. The leased asset classification is determined at the date of recording as either operating or financing, depending upon certain criteria of the contract.

The discount rate used for present value calculations is the discount rate implicit in the contract. If an implicit rate is not determinable, a collateralized incremental borrowing rate is used at the date of commencement. As new leases commence or previous leases are modified the discount rate used in the present value calculation is the current period applicable discount rate.

The Company has made an accounting policy election to adopt the practical expedient for combining lease and non-lease components on an asset class basis. This expedient allows the Company to combine non-lease components such as real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises with the lease component of a lease agreement on an asset class basis when the non-lease components of the agreement cannot be easily bifurcated from the lease payment. Currently, the Company is only applying this expedient to certain office space agreements.

(a) Supplemental Balance Sheet Information Related to Leases

The Company’s lease assets and liabilities consisted of the following items (in thousands):

				(Unaudited)
		December 31,		March 31,
Leases	Balance Sheet Classification	2022		2023
Operating Leases
Operating lease right-of-use assets:
Processing plants	Operating lease right-of-use assets	$	1,849,116		1,791,025
Drilling rigs and completion services	Operating lease right-of-use assets		85,405		68,932
Gas gathering lines and compressor stations (1)	Operating lease right-of-use assets		1,463,756		1,497,721
Office space	Operating lease right-of-use assets		41,822		40,790
Vehicles	Operating lease right-of-use assets		756		434
Other office and field equipment	Operating lease right-of-use assets		3,476		3,092
Total operating lease right-of-use assets		$	3,444,331		3,401,994
Short-term operating lease obligation	Short-term lease liabilities	$	556,137		552,806
Long-term operating lease obligation	Long-term lease liabilities		2,888,194		2,849,188
Total operating lease obligation		$	3,444,331		3,401,994
Finance Leases
Finance lease right-of-use assets:
Vehicles	Other property and equipment	$	2,159		3,109
Total finance lease right-of-use assets (2)		$	2,159		3,109
Short-term finance lease obligation	Short-term lease liabilities	$	499		726
Long-term finance lease obligation	Long-term lease liabilities		1,660		2,383
Total finance lease obligation		$	2,159		3,109

(1) Gas gathering lines and compressor stations includes $1.4 billion and $1.5 billon related to Antero Midstream as of December 31, 2022 and March 31, 2023, respectively. See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $1 million as of December 31, 2022 and March 31, 2023.

The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases, because Antero (i) is the sole customer of the assets and (ii) makes the decisions that most impact the economic performance of the assets.

(b) Supplemental Information Related to Leases

Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands):

			Three Months Ended March 31,
Cost	Classification	Location	2022		2023
Operating lease cost	Statement of operations	Gathering, compression, processing and transportation	$	365,834		381,283
Operating lease cost	Statement of operations	General and administrative		2,867		2,937
Operating lease cost	Statement of operations	Contract termination		—		1,122
Operating lease cost	Statement of operations	Lease operating		45		21
Operating lease cost	Balance sheet	Proved properties (1)		7,759		39,770
Total operating lease cost			$	376,505		425,133
Finance lease cost:
Amortization of right-of-use assets	Statement of operations	Depletion, depreciation and amortization	$	118		92
Interest on lease liabilities	Statement of operations	Interest expense		14		114
Total finance lease cost			$	132		206
Short-term lease payments			$	48,760		37,701

(1) Capitalized costs related to drilling and completion activities.

(c) Supplemental Cash Flow Information Related to Leases

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):

	Three Months Ended March 31,
	2022		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	305,841		315,665
Operating cash flows from finance leases		—		114
Investing cash flows from operating leases		6,037		32,880
Financing cash flows from finance leases		134		158
Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	5,321		51,208
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)	$	(25,926)		40,130

(1) During the three months ended March 31, 2022, the weighted average discount rate for remeasured operating leases decreased from 6.3% as of December 31, 2021 to 3.6% as of March 31, 2022. During the three months ended March 31, 2023, the weighted average discount rate for remeasured operating leases increased from 5.2% as of December 31, 2022 to 5.8% as of March 31, 2023.

(d) Maturities of Lease Liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2023 (in thousands):

	Operating Leases		Financing Leases		Total
2023	$	561,359		891		562,250
2024		685,290		1,181		686,471
2025		609,654		1,139		610,793
2026		556,196		804		557,000
2027		457,972		38		458,010
Thereafter		1,252,713		—		1,252,713
Total lease payments		4,123,184		4,053		4,127,237
Less: imputed interest		(721,190)		(944)		(722,134)
Total	$	3,401,994		3,109		3,405,103

(e) Lease Term and Discount Rate

The following table sets forth the Company’s weighted average remaining lease term and discount rate:

	December 31, 2022				March 31, 2023
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	7.2 years		3.5 years		7.0 years		3.5 years
Weighted average discount rate	5.3	%	7.4	%	5.6	%	8.0	%

(f) Related Party Lease Disclosure

The Company has gathering and compression service agreements with Antero Midstream that include: (i) the second amended and restated gathering and compression agreement dated December 8, 2019 (the “2019 gathering and compression agreement”), (ii) gathering and compression agreements from Antero Midstream’s acquisition of certain Marcellus gathering and compression assets (the “Marcellus gathering and compression agreements”) and (iii) a compression agreement from Antero Midstream’s acquisition of certain Utica compressors (the “Utica compression agreement” and, together with the 2019 gathering and compression agreement and the Marcellus gathering and compression agreements, the “gathering and compression agreements”). Pursuant to the gathering and compression agreements with Antero Midstream, the Company has dedicated substantially all of its current and future acreage in West Virginia, Ohio and Pennsylvania to Antero Midstream for gathering and compression services. The 2019 gathering and compression agreement has an initial term through 2038, the Marcellus gathering and compression agreements expire between 2024 and 2031, and the Utica compression agreement has two dedicated areas that expire in 2024 and 2030. Upon expiration of each of the Marcellus gathering and compression agreements and the Utica compression agreement, Antero Midstream will continue to provide gathering and compression services under the 2019 gathering and compression agreement.

Under the gathering and compression agreements, Antero Midstream receives a low-pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf and a compression fee per Mcf, as applicable, subject to annual adjustments based on the consumer price index. If and to the extent the Company requests that Antero Midstream construct new low pressure lines, high pressure lines and compressor stations, the 2019 gathering and compression agreement contains options at Antero Midstream’s election for either (i) minimum volume commitments that require Antero Resources to utilize or pay for 75% of the high pressure gathering capacity and 70% of the compression capacity of the requested capacity of such new construction for 10 years or (ii) a cost of service fee that allows the Antero Midstream to earn a 13% rate of return on such new construction over seven years. In addition, certain of the Marcellus gathering and compression agreements provide for a minimum volume commitment that requires the Company to utilize or pay for 25% of the capacity of new compressor station construction for 10 years.

The 2019 gathering and compression agreement includes a growth incentive fee program whereby low-pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain quarterly volumetric targets. The Company’s throughput gathered under the Marcellus gathering and compression agreements is not considered in low pressure gathering volume targets. Upon completion of the initial contract term, the 2019 gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an

anniversary of the effective date of the agreement, by either the Company or Antero Midstream on or before the 180th day prior to the anniversary of such effective date. The Company earned fee rebates for the three months ended March 31, 2022 and 2023 of $12 million.

Gathering and compression fees paid by Antero related to these agreements were $163 million and $176 million for the three months ended March 31, 2022 and 2023, respectively. As of December 31, 2022 and March 31, 2023, $59 million and $70 million, respectively, was included within Accounts payable, related parties on the condensed consolidated balance sheet as due to Antero Midstream related to these agreements.

XML

Commitments

3 Months Ended

Mar. 31, 2023

Commitments

Commitments

(13) Commitments

The following table sets forth a schedule of future minimum payments for the Company’s contractual obligations, which include leases that have a lease term in excess of one year as of March 31, 2023 (in thousands):

			Processing,
			Gathering,
	Firm		Compression		Operating and		Imputed Interest
	Transportation		and Water Service		Financing Leases		for Leases		Other
	(a)		(b)		(c)		(c)		(d)		Total
Remainder of 2023	$	886,835		53,618		426,736		135,514		641		1,503,344
2024		1,145,151		62,892		532,603		153,869		—		1,894,515
2025		1,131,583		51,545		486,033		124,760		—		1,793,921
2026		1,129,147		18,368		459,014		97,985		—		1,704,514
2027		1,124,462		17,080		384,371		73,639		—		1,599,552
Thereafter		5,465,800		85,209		1,116,346		136,367		—		6,803,722
Total	$	10,882,978		288,712		3,405,103		722,134		641		15,299,568

(a) Firm Transportation

The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market. These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates or pay for any deficiencies at specified reservation fee rates. The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest.

(b) Processing, Gathering, Compression and Water Service Commitments

The Company has entered into various long-term gas processing, gathering, compression and water service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column.

The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest.

(c) Operating and Finance Leases, including Imputed Interest

The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases. The values in the table represent the gross amounts that Antero Resources is committed to pay; however, the Company will record in its financial statements its proportionate share of costs based on its working interests. See Note 12—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases.

(d) Other

The Company has entered into various land acquisition and sand supply agreements. Certain of these agreements contain minimum payment obligations over various terms. The values in the table represent the minimum payments due under these arrangements. None of these agreements were determined to be leases.

(e) Contract Terminations

The Company incurs costs associated with the delay or cancellation of certain contracts with third-parties. These costs are recorded in Contract termination and included in the statement of operations and comprehensive income (loss). During the three months ended March 31, 2023, the Company executed an early termination of its firm transportation commitment of 200,000 MMBtu per day on the Equitrans pipeline and made a cash payment of $24 million. There are no remaining payment obligations related to these delayed or cancelled contracts as of March 31, 2023.

XML

Contingencies

3 Months Ended

Mar. 31, 2023

Contingencies

Contingencies

(14) Contingencies

Environmental

In June 2018, the Company received a Notice of Violation (“NOV”) from the U.S. Environmental Protection Agency (“EPA”) Region III for alleged violations of the federal Clean Air Act and the West Virginia State Implementation Plan. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements. Separately, in June 2018, the Company received an information request from the EPA Region III pursuant to Section 114(a) of the Clean Air Act relating to the facilities that were inspected in September 2017 as well as additional Antero Resources facilities for the purpose of determining if the additional facilities have the same alleged compliance issues that were identified during the September 2017 inspections. Subsequently, the West Virginia Department of Environmental Protection (“WVDEP”) and the EPA Region V (covering Ohio facilities) each conducted its own inspections, and the Company has separately received NOVs from WVDEP and EPA Region V related to similar issues being investigated by the EPA Region III. The Company continues to negotiate with the EPA and WVDEP to resolve the issues alleged in the NOVs and the information request. The Company’s operations at these facilities are not suspended, and management does not expect these matters to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows.

Other

The Company is party to various other legal proceedings and claims in the ordinary course of its business. The Company believes that certain of these matters will be covered by insurance and that the outcome of other matters will not have a material adverse effect on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

In addition, pending litigation against operators in the Appalachian Basin, including the Company, could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that may be deducted from royalty payments, among other things. A ruling was recently received in an immaterial case to which the Company is a party, and the Company continues to analyze how this decision may impact other cases to which the Company is a party. The Company cannot predict how these issues may ultimately be resolved, and therefore is also unable to estimate any potential damages, if any, that may result.

XML

Related Parties

3 Months Ended

Mar. 31, 2023

Related Parties

Related Parties

(15) Related Parties

Substantially all of Antero Midstream’s revenues were and are derived from transactions with Antero Resources. See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments.

XML

Reportable Segments

3 Months Ended

Mar. 31, 2023

Reportable Segments

Reportable Segments

(16) Reportable Segments

(a) Summary of Reportable Segments

The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s production revenues are attributable to customers located in the United States; however, some of the Company’s production revenues are attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures and labor costs, as applicable. General and administrative expenses related to the marketing segment are not allocated because they are immaterial. Other income, income taxes and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

Exploration and Production

The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations.

Marketing

Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets.

Equity Method Investment in Antero Midstream

The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts.

(b) Reportable Segments Financial Information

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

	Three Months Ended March 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	717,283		69,038		395		(395)		786,321
Intersegment		519		—		218,096		(218,096)		519
Total revenue		717,802		69,038		218,491		(218,491)		786,840
Operating expenses:
Lease operating		17,780		—		—		—		17,780
Gathering, compression, processing, transportation and water handling		590,278		—		42,012		(42,012)		590,278
General and administrative		35,691		—		17,931		(17,931)		35,691
Depletion, depreciation and amortization		168,388		—		28,300		(28,300)		168,388
Impairment of property and equipment		22,462		—		—		—		22,462
Other		57,944		98,896		1,094		(1,094)		156,840
Total operating expenses		892,543		98,896		89,337		(89,337)		991,439
Operating income (loss)	$	(174,741)		(29,858)		129,154		(129,154)		(204,599)
Equity in earnings of unconsolidated affiliates	$	25,178		—		23,232		(23,232)		25,178
Capital expenditures for segment assets	$	215,876		—		84,267		(84,267)		215,876

	Three Months Ended March 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	1,349,476		58,529		272		(272)		1,408,005
Intersegment		343		—		259,203		(259,203)		343
Total revenue		1,349,819		58,529		259,475		(259,475)		1,408,348
Operating expenses:
Lease operating		29,321		—		—		—		29,321
Gathering, compression, processing, transportation and water handling		645,172		—		57,873		(57,873)		645,172
General and administrative		57,261		—		17,347		(17,347)		57,261
Depletion, depreciation and amortization		167,582		—		35,196		(35,196)		167,582
Impairment of property and equipment		15,560		—		—		—		15,560
Other		56,838		105,124		714		(714)		161,962
Total operating expenses		971,734		105,124		111,130		(111,130)		1,076,858
Operating income (loss)	$	378,085		(46,595)		148,345		(148,345)		331,490
Equity in earnings of unconsolidated affiliates	$	17,681		—		24,456		(24,456)		17,681
Capital expenditures for segment assets	$	351,312		—		42,279		(42,279)		351,312

The summarized assets of the Company’s reportable segments are as follows (in thousands):

	As of December 31, 2022
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	220,429		—		652,767		(652,767)		220,429
Total assets		14,081,077		36,962		5,791,320		(5,791,320)		14,118,039

	(Unaudited)
	As of March 31, 2023
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	219,515		—		643,118		(643,118)		219,515
Total assets		13,855,955		15,191		5,779,728		(5,779,728)		13,871,146

XML

Subsidiary Guarantors

3 Months Ended

Mar. 31, 2023

Subsidiary Guarantors

Subsidiary Guarantors

(17) Subsidiary Guarantors

Antero Resources’ senior notes are fully and unconditionally guaranteed by Antero Resources’ existing subsidiaries that guarantee the Credit Facility.  In the event a subsidiary guarantor is sold or disposed of (whether by merger, consolidation, the sale of a sufficient amount of its capital stock so that it no longer qualifies as a “Subsidiary” of Antero (as defined in the indentures governing the notes) or the sale of all or substantially all of its assets (other than by lease)) and whether or not the subsidiary guarantor is the surviving entity in such transaction to a person that is not Antero or a restricted subsidiary of Antero, such subsidiary guarantor will be released from its obligations under its subsidiary guarantee if the sale or other disposition does not violate the covenants set forth in the indentures governing the notes.

In addition, a subsidiary guarantor will be released from its obligations under the indentures and its guarantee, upon the release or discharge of the guarantee of other Indebtedness (as defined in the indentures governing the notes) that resulted in the creation of such guarantee, except a release or discharge by or as a result of payment under such guarantee; if Antero designates such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes.

The tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company.

Balance Sheet
			(Unaudited)
	December 31, 2022		March 31, 2023
Current assets	$	739,104		408,791
Noncurrent assets		12,663,911		12,782,007
Total assets	$	13,403,015		13,190,798
Accounts payable, related parties	$	80,708		99,784
Other current liabilities		1,668,426		1,386,904
Total current liabilities		1,749,134		1,486,688
Noncurrent liabilities		5,306,539		5,192,664
Total liabilities	$	7,055,673		6,679,352
Statement of Operations
			Three Months Ended
			March 31, 2023
Revenues			$	1,348,658
Operating expenses				1,064,939
Income from operations				283,719
Net income and comprehensive income including noncontrolling interests				213,431
Net income and comprehensive income attributable to Antero Resources Corporation			$	213,431

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Basis of Presentation

(a) Basis of Presentation

These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2022 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position and accounting policies. The Company’s December 31, 2022 consolidated financial statements were included in Antero Resources’ 2022 Annual Report on Form 10-K, which was filed with the SEC.

These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2022 and March 31, 2023, results of operations and cash flows for the three months ended March 31, 2022 and 2023. The Company has no items of other comprehensive income or loss; therefore, its net income or loss is equal to its comprehensive income or loss. Operating results for the period ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments and other factors.

Principles of Consolidation

(b) Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, its wholly owned subsidiaries and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements.

Cash and Cash Equivalents

(c) Cash and Cash Equivalents

The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $28 million and $43 million, respectively. As of March 31, 2023, the book overdrafts included within accounts payable and revenue distributions payable were $46 million and $31 million, respectively.

Earnings (Loss) Per Common Share

(d) Income (Loss) Per Common Share

Income (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period. Income (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method. The Company includes restricted stock unit (“RSU”)

awards, performance share unit (“PSU”) awards and stock options in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards. During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effects of all equity awards and the 2026 Convertible Notes are anti-dilutive.

The following is a reconciliation of the Company’s income (loss) attributable to common stockholders for basic and diluted income (loss) per share (in thousands):

	Three Months Ended March 31,
	2022		2023
Net income (loss) attributable to Antero Resources Corporation—common shareholders	$	(156,419)		213,431
Add: Interest expense for 2026 Convertible Notes		—		616
Less: Tax-effect of interest expense for 2026 Convertible Notes		—		(132)
Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions	$	(156,419)		213,915
Income (loss) per share—basic	$	(0.50)		0.72
Income (loss) per share—diluted	$	(0.50)		0.69
Weighted average common shares outstanding—basic		314,081		296,763
Weighted average common shares outstanding—diluted		314,081		311,846

The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):

	Three Months Ended March 31,
	2022	2023
Basic weighted average number of shares outstanding	314,081	296,763
Add: Dilutive effect of RSUs	—	2,150
Add: Dilutive effect of PSUs	—	1,060
Add: Dilutive effect of 2026 Convertible Notes	—	11,873
Diluted weighted average number of shares outstanding	314,081	311,846
Weighted average number of outstanding securities excluded from calculation of diluted income (loss) per common share (1):
RSUs	4,878	969
PSUs	3,443	414
Stock options	351	324
2026 Convertible Notes	18,778	—

(1) The potential dilutive effects of these awards were excluded from the computation of income (loss) per common share—diluted because the inclusion of these awards would have been anti-dilutive.

Recently Issued Accounting Standard

(e) Recently Issued Accounting Standard

Convertible Debt Instruments

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which eliminates the cash conversion model in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options, that require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. It is effective for interim and annual reporting periods beginning after December 31,

2021. The Company adopted the standard effective January 1, 2022 under the modified retrospective transition method, which impacts only the debt instruments outstanding on the adoption date.

Upon adoption of this new standard, the Company reclassified $24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $27 million, reduced deferred income tax liability by $6 million and reduced accumulated deficit by $3 million as of January 1, 2022. Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2023 is based on an effective interest rate of 4.9% as compared to 15.1% prior to the adoption of this new standard.

XML

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2023

Summary of Significant Accounting Policies

Reconciliation of earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share

The following is a reconciliation of the Company’s income (loss) attributable to common stockholders for basic and diluted income (loss) per share (in thousands):

	Three Months Ended March 31,
	2022		2023
Net income (loss) attributable to Antero Resources Corporation—common shareholders	$	(156,419)		213,431
Add: Interest expense for 2026 Convertible Notes		—		616
Less: Tax-effect of interest expense for 2026 Convertible Notes		—		(132)
Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions	$	(156,419)		213,915
Income (loss) per share—basic	$	(0.50)		0.72
Income (loss) per share—diluted	$	(0.50)		0.69
Weighted average common shares outstanding—basic		314,081		296,763
Weighted average common shares outstanding—diluted		314,081		311,846

Reconciliation of basic weighted average shares outstanding to diluted weighted average shares outstanding

The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):

	Three Months Ended March 31,
	2022	2023
Basic weighted average number of shares outstanding	314,081	296,763
Add: Dilutive effect of RSUs	—	2,150
Add: Dilutive effect of PSUs	—	1,060
Add: Dilutive effect of 2026 Convertible Notes	—	11,873
Diluted weighted average number of shares outstanding	314,081	311,846
Weighted average number of outstanding securities excluded from calculation of diluted income (loss) per common share (1):
RSUs	4,878	969
PSUs	3,443	414
Stock options	351	324
2026 Convertible Notes	18,778	—

(1) The potential dilutive effects of these awards were excluded from the computation of income (loss) per common share—diluted because the inclusion of these awards would have been anti-dilutive.

XML

Revenue (Tables)

3 Months Ended

Mar. 31, 2023

Revenue

Schedule of disaggregation of revenue

The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments.

	Three Months Ended March 31,
	2022		2023		Reportable Segment
Revenues from contracts with customers:
Natural gas sales	$	995,792		668,315	Exploration and production
Natural gas liquids sales (ethane)		67,063		72,050	Exploration and production
Natural gas liquids sales (C3+ NGLs)		593,242		423,385	Exploration and production
Oil sales		63,294		51,811	Exploration and production
Marketing		69,038		58,529	Marketing
Other revenue		—		175	Exploration and production
Total revenue from contracts with customers		1,788,429		1,274,265
Income (loss) from derivatives, deferred revenue and other sources, net		(1,001,589)		134,083
Total revenue	$	786,840		1,408,348

XML

Equity Method Investment (Tables)

3 Months Ended

Mar. 31, 2023

Antero Midstream Corporation

Equity Method Investments

Schedule of reconciliation of investments in unconsolidated affiliates and summarized financial information

The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands):

Balance as of December 31, 2022 (1)	$	220,429
Equity in earnings of unconsolidated affiliate		17,681
Dividends from unconsolidated affiliate		(31,285)
Elimination of intercompany profit		12,690
Balance as of March 31, 2023 (1)	$	219,515

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2022 and March 31, 2023 was $1.5 billion based on the quoted market share price of Antero Midstream.

XML

Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Liabilities

Schedule of accrued liabilities

Accrued liabilities consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Capital expenditures	$	57,361		44,213
Gathering, compression, processing and transportation expenses		162,783		159,375
Marketing expenses		61,118		27,073
Interest expense, net		31,892		13,582
Production and ad valorem taxes		32,536		36,861
General and administrative expense		32,477		20,260
Derivative settlements payable		53,732		411
Other		29,889		16,309
Total accrued liabilities	$	461,788		318,084

XML

Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2023

Long-Term Debt

Schedule of long-term debt

Long-term debt consisted of the following items (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Credit Facility (a)	$	34,800		180,100
8.375% senior notes due 2026 (c)		96,870		96,870
7.625% senior notes due 2029 (d)		407,115		407,115
5.375% senior notes due 2030 (e)		600,000		600,000
4.25% convertible senior notes due 2026 (f)		56,932		39,426
Total principal		1,195,717		1,323,511
Unamortized debt issuance costs		(12,241)		(11,465)
Long-term debt	$	1,183,476		1,312,046

4.25% convertible senior notes due 2026

Long-Term Debt

Schedule of long-term debt

The 2026 Convertible Notes consist of the following (in thousands):

			(Unaudited)
	December 31,		March 31,
	2022		2023
Principal	$	56,932		39,426
Less: unamortized debt issuance costs		(1,159)		(753)
Net carrying value	$	55,773		38,673

XML

Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2023

Asset Retirement Obligations

Schedule of reconciliation of asset retirement obligations

The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands):

Asset retirement obligations—December 31, 2022	$	59,485
Obligations incurred		248
Accretion expense		878
Settlement of obligations		(308)
Revisions to prior estimates		196
Asset retirement obligations—March 31, 2023	$	60,499

XML

Equity-Based Compensation and Cash Awards (Tables)

3 Months Ended

Mar. 31, 2023

Equity-Based Compensation and Cash Awards

Schedule of equity-based compensation expense

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):

	Three Months Ended March 31,
	2022		2023
RSU awards	$	2,720		7,262
PSU awards		1,419		5,405
Converted AM RSU Awards (1)		160		1
Equity awards issued to directors		350		350
Total expense	$	4,649		13,018

(1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs. As of March 31, 2023, all Converted AM RSU Awards were fully vested, and there is no remaining unamortized expense attributable to these awards.

Summary of RSU award activity

		Weighted
		Average
	Number of	Grant Date
	Shares	Fair Value
Total awarded and unvested—December 31, 2022	4,676,219	$	15.29
Granted	1,425,619		25.98
Vested	(892,595)		3.20
Forfeited	(58,898)		22.46
Total awarded and unvested—March 31, 2023	5,150,345	$	20.27

Schedule of weighted average fair value assumptions used for PSUs granted

Dividend yield		—	%
Volatility		82	%
Risk-free interest rate		4.61	%
Weighted average fair value of awards granted—Absolute TSR	$	33.96

Summary of PSU award activity

		Weighted
	Number of	Average Grant
	Units	Date Fair Value
Total awarded and unvested—December 31, 2022	1,329,725	$	23.18
Granted	417,466		28.51
Vested	—		—
Total awarded and unvested—March 31, 2023	1,747,191	$	24.45

Schedule of Converted AM RSU Awards

		Weighted
		Average
	Number of	Grant Date
	Units	Fair Value
Total awarded and unvested—December 31, 2022	2,827	$	12.38
Vested	(2,827)		12.38
Total awarded and unvested—March 31, 2023	—	$	—

XML

Fair value (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value.

Schedule of fair value and carrying value of the senior notes and 2026 Convertible Notes

					(Unaudited)
	December 31, 2022				March 31, 2023
	Fair		Carrying		Fair		Carrying
	Value (1)		Value (2)		Value (1)		Value (2)
2026 Notes	$	100,987		96,123		100,987		96,179
2029 Notes		410,860		402,872		415,257		403,011
2030 Notes		556,260		593,908		556,500		594,083
2026 Convertible Notes		406,039		55,773		209,135		38,673
Total	$	1,474,146		1,148,676		1,281,879		1,131,946

(1) Fair values are based on Level 2 market data inputs.

(2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums.

See Note 9—Equity-Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards. See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.

XML

Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of outstanding commodity derivatives for Antero Resources Corporation

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	43,000	MMBtu/day	$	2.37	/MMBtu

Schedule of call option and embedded put option arrangements

							Embedded
				Call Option			Put Option
Commodity / Settlement Period	Index	Contracted Volume		Strike Price			Strike Price
Natural Gas
April-December 2023	Henry Hub	55,000	MMBtu/day	$	2.466	/MMBtu	$	2.466	/MMBtu
January-December 2024	Henry Hub	53,000	MMBtu/day		2.477	/MMBtu		2.527	/MMBtu
January-December 2025	Henry Hub	44,000	MMBtu/day		2.564	/MMBtu		2.614	/MMBtu
January-December 2026	Henry Hub	32,000	MMBtu/day		2.629	/MMBtu		2.679	/MMBtu

Schedule of natural gas basis swap positions which settle on pricing index to basis differential of NYMEX to TCO

				Weighted Average
Commodity / Settlement Period	Index to Basis Differential	Contracted Volume		Hedged Differential
Natural Gas
April-December 2023	NYMEX to TCO	50,000	MMBtu/day	$	0.525	/MMBtu
January-December 2024	NYMEX to TCO	50,000	MMBtu/day		0.530	/MMBtu

Summary of the fair values of derivative instruments, which are not designated as hedges for accounting purposes

				(Unaudited)
	Balance Sheet	December 31,		March 31,
	Location	2022		2023
Asset derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current	Derivative instruments	$	—		397
Embedded derivatives—current	Derivative instruments		1,900		5,845
Embedded derivatives—noncurrent	Derivative instruments		9,844		9,825
Total asset derivatives (1)			11,744		16,067
Liability derivatives not designated as hedges for accounting purposes:
Commodity derivatives—current (2)	Derivative instruments		97,765		28,716
Commodity derivatives—noncurrent (2)	Derivative instruments		345,280		75,854
Total liability derivatives (1)			443,045		104,570
Net derivatives liability (1)		$	(431,301)		(88,503)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

(2) As of December 31, 2022, $47 million of commodity derivative liabilities, including $28 million of current commodity derivatives and $19 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of March 31, 2023, $19 million of commodity derivative liabilities, including $9 million of current commodity derivatives and $10 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

Schedule of gross amounts of recognized derivative assets and liabilities, the amounts offset under netting arrangements with counterparties, and the resulting net amounts

The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands):

							(Unaudited)
	December 31, 2022						March 31, 2023
					Net Amounts of						Net Amounts of
	Gross		Gross		Assets		Gross		Gross		Assets
	Amounts		Amounts Offset		(Liabilities) on		Amounts		Amounts Offset		(Liabilities) on
	Recognized		Recognized		Balance Sheet		Recognized		Recognized		Balance Sheet
Commodity derivative assets	$	276		(276)		—	$	3,043		(2,646)		397
Embedded derivative assets		11,744		—		11,744		15,670		—		15,670
Commodity derivative liabilities		(443,321)		276		(443,045)		(107,216)		2,646		(104,570)

Summary of derivative fair value gains (losses)

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands):

	Statement of
	Operations	Three Months Ended March 31,
	Location	2022		2023
Commodity derivative fair value gains (losses) (1)	Revenue	$	(994,483)		127,080
Embedded derivative fair value gains (losses) (1)	Revenue	$	(16,897)		(888)

(1) The fair value of derivative instruments was determined using Level 2 inputs.

VIE, Martica

Schedule of outstanding commodity derivatives

				Weighted
				Average
Commodity / Settlement Period	Index	Contracted Volume		Price
Natural Gas
April-December 2023	Henry Hub	33,955	MMBtu/day	$	2.35	/MMBtu
January-December 2024	Henry Hub	23,885	MMBtu/day		2.33	/MMBtu
January-March 2025	Henry Hub	18,021	MMBtu/day		2.53	/MMBtu
Natural Gasoline
April-December 2023	Mont Belvieu Natural Gasoline-OPIS Non-TET	240	Bbl/day		40.74	/Bbl
Oil
April-December 2023	West Texas Intermediate	88	Bbl/day		44.85	/Bbl
January-December 2024	West Texas Intermediate	43	Bbl/day		44.02	/Bbl
January-March 2025	West Texas Intermediate	39	Bbl/day		45.06	/Bbl

XML

Leases (Tables)

3 Months Ended

Mar. 31, 2023

Leases

Summary of supplemental balance sheet information related to leases

The Company’s lease assets and liabilities consisted of the following items (in thousands):

				(Unaudited)
		December 31,		March 31,
Leases	Balance Sheet Classification	2022		2023
Operating Leases
Operating lease right-of-use assets:
Processing plants	Operating lease right-of-use assets	$	1,849,116		1,791,025
Drilling rigs and completion services	Operating lease right-of-use assets		85,405		68,932
Gas gathering lines and compressor stations (1)	Operating lease right-of-use assets		1,463,756		1,497,721
Office space	Operating lease right-of-use assets		41,822		40,790
Vehicles	Operating lease right-of-use assets		756		434
Other office and field equipment	Operating lease right-of-use assets		3,476		3,092
Total operating lease right-of-use assets		$	3,444,331		3,401,994
Short-term operating lease obligation	Short-term lease liabilities	$	556,137		552,806
Long-term operating lease obligation	Long-term lease liabilities		2,888,194		2,849,188
Total operating lease obligation		$	3,444,331		3,401,994
Finance Leases
Finance lease right-of-use assets:
Vehicles	Other property and equipment	$	2,159		3,109
Total finance lease right-of-use assets (2)		$	2,159		3,109
Short-term finance lease obligation	Short-term lease liabilities	$	499		726
Long-term finance lease obligation	Long-term lease liabilities		1,660		2,383
Total finance lease obligation		$	2,159		3,109

(1) Gas gathering lines and compressor stations includes $1.4 billion and $1.5 billon related to Antero Midstream as of December 31, 2022 and March 31, 2023, respectively. See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $1 million as of December 31, 2022 and March 31, 2023.

Summary of costs associated with operating leases and finance leases

Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands):

			Three Months Ended March 31,
Cost	Classification	Location	2022		2023
Operating lease cost	Statement of operations	Gathering, compression, processing and transportation	$	365,834		381,283
Operating lease cost	Statement of operations	General and administrative		2,867		2,937
Operating lease cost	Statement of operations	Contract termination		—		1,122
Operating lease cost	Statement of operations	Lease operating		45		21
Operating lease cost	Balance sheet	Proved properties (1)		7,759		39,770
Total operating lease cost			$	376,505		425,133
Finance lease cost:
Amortization of right-of-use assets	Statement of operations	Depletion, depreciation and amortization	$	118		92
Interest on lease liabilities	Statement of operations	Interest expense		14		114
Total finance lease cost			$	132		206
Short-term lease payments			$	48,760		37,701

(1) Capitalized costs related to drilling and completion activities.

Summary of supplemental cash flow information related to leases

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):

	Three Months Ended March 31,
	2022		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	305,841		315,665
Operating cash flows from finance leases		—		114
Investing cash flows from operating leases		6,037		32,880
Financing cash flows from finance leases		134		158
Noncash activities:
Right-of-use assets obtained in exchange for new operating lease obligations	$	5,321		51,208
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)	$	(25,926)		40,130

(1) During the three months ended March 31, 2022, the weighted average discount rate for remeasured operating leases decreased from 6.3% as of December 31, 2021 to 3.6% as of March 31, 2022. During the three months ended March 31, 2023, the weighted average discount rate for remeasured operating leases increased from 5.2% as of December 31, 2022 to 5.8% as of March 31, 2023.

Summary of maturities of operating lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2023 (in thousands):

	Operating Leases		Financing Leases		Total
2023	$	561,359		891		562,250
2024		685,290		1,181		686,471
2025		609,654		1,139		610,793
2026		556,196		804		557,000
2027		457,972		38		458,010
Thereafter		1,252,713		—		1,252,713
Total lease payments		4,123,184		4,053		4,127,237
Less: imputed interest		(721,190)		(944)		(722,134)
Total	$	3,401,994		3,109		3,405,103

Summary of maturities of financing lease liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2023 (in thousands):

	Operating Leases		Financing Leases		Total
2023	$	561,359		891		562,250
2024		685,290		1,181		686,471
2025		609,654		1,139		610,793
2026		556,196		804		557,000
2027		457,972		38		458,010
Thereafter		1,252,713		—		1,252,713
Total lease payments		4,123,184		4,053		4,127,237
Less: imputed interest		(721,190)		(944)		(722,134)
Total	$	3,401,994		3,109		3,405,103

Summary of weighted-average remaining lease term and discount rate

	December 31, 2022				March 31, 2023
	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Weighted average remaining lease term	7.2 years		3.5 years		7.0 years		3.5 years
Weighted average discount rate	5.3	%	7.4	%	5.6	%	8.0	%

XML

Commitments (Tables)

3 Months Ended

Mar. 31, 2023

Commitments

Schedule of future minimum payments which include leases that have remaining lease terms in excess of one year

The following table sets forth a schedule of future minimum payments for the Company’s contractual obligations, which include leases that have a lease term in excess of one year as of March 31, 2023 (in thousands):

			Processing,
			Gathering,
	Firm		Compression		Operating and		Imputed Interest
	Transportation		and Water Service		Financing Leases		for Leases		Other
	(a)		(b)		(c)		(c)		(d)		Total
Remainder of 2023	$	886,835		53,618		426,736		135,514		641		1,503,344
2024		1,145,151		62,892		532,603		153,869		—		1,894,515
2025		1,131,583		51,545		486,033		124,760		—		1,793,921
2026		1,129,147		18,368		459,014		97,985		—		1,704,514
2027		1,124,462		17,080		384,371		73,639		—		1,599,552
Thereafter		5,465,800		85,209		1,116,346		136,367		—		6,803,722
Total	$	10,882,978		288,712		3,405,103		722,134		641		15,299,568

XML

Reportable Segments (Tables)

3 Months Ended

Mar. 31, 2023

Reportable Segments

Schedule of operating results and assets of reportable segments

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

	Three Months Ended March 31, 2022
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	717,283		69,038		395		(395)		786,321
Intersegment		519		—		218,096		(218,096)		519
Total revenue		717,802		69,038		218,491		(218,491)		786,840
Operating expenses:
Lease operating		17,780		—		—		—		17,780
Gathering, compression, processing, transportation and water handling		590,278		—		42,012		(42,012)		590,278
General and administrative		35,691		—		17,931		(17,931)		35,691
Depletion, depreciation and amortization		168,388		—		28,300		(28,300)		168,388
Impairment of property and equipment		22,462		—		—		—		22,462
Other		57,944		98,896		1,094		(1,094)		156,840
Total operating expenses		892,543		98,896		89,337		(89,337)		991,439
Operating income (loss)	$	(174,741)		(29,858)		129,154		(129,154)		(204,599)
Equity in earnings of unconsolidated affiliates	$	25,178		—		23,232		(23,232)		25,178
Capital expenditures for segment assets	$	215,876		—		84,267		(84,267)		215,876

	Three Months Ended March 31, 2023
					Equity Method
	Exploration				Investment in		Elimination of
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Sales and revenues:
Third-party	$	1,349,476		58,529		272		(272)		1,408,005
Intersegment		343		—		259,203		(259,203)		343
Total revenue		1,349,819		58,529		259,475		(259,475)		1,408,348
Operating expenses:
Lease operating		29,321		—		—		—		29,321
Gathering, compression, processing, transportation and water handling		645,172		—		57,873		(57,873)		645,172
General and administrative		57,261		—		17,347		(17,347)		57,261
Depletion, depreciation and amortization		167,582		—		35,196		(35,196)		167,582
Impairment of property and equipment		15,560		—		—		—		15,560
Other		56,838		105,124		714		(714)		161,962
Total operating expenses		971,734		105,124		111,130		(111,130)		1,076,858
Operating income (loss)	$	378,085		(46,595)		148,345		(148,345)		331,490
Equity in earnings of unconsolidated affiliates	$	17,681		—		24,456		(24,456)		17,681
Capital expenditures for segment assets	$	351,312		—		42,279		(42,279)		351,312

The summarized assets of the Company’s reportable segments are as follows (in thousands):

	As of December 31, 2022
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	220,429		—		652,767		(652,767)		220,429
Total assets		14,081,077		36,962		5,791,320		(5,791,320)		14,118,039

	(Unaudited)
	As of March 31, 2023
							Elimination of
					Equity Method		Intersegment
	Exploration				Investment in		Transactions and
	and				Antero		Unconsolidated		Consolidated
	Production		Marketing		Midstream		Affiliate		Total
Investments in unconsolidated affiliates	$	219,515		—		643,118		(643,118)		219,515
Total assets		13,855,955		15,191		5,779,728		(5,779,728)		13,871,146

XML

Subsidiary Guarantors (Tables)

3 Months Ended

Mar. 31, 2023

Subsidiary Guarantors

Schedule of summarized financial information of Antero and its guarantor subsidiaries

The tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands). The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company.

Balance Sheet
			(Unaudited)
	December 31, 2022		March 31, 2023
Current assets	$	739,104		408,791
Noncurrent assets		12,663,911		12,782,007
Total assets	$	13,403,015		13,190,798
Accounts payable, related parties	$	80,708		99,784
Other current liabilities		1,668,426		1,386,904
Total current liabilities		1,749,134		1,486,688
Noncurrent liabilities		5,306,539		5,192,664
Total liabilities	$	7,055,673		6,679,352
Statement of Operations
			Three Months Ended
			March 31, 2023
Revenues			$	1,348,658
Operating expenses				1,064,939
Income from operations				283,719
Net income and comprehensive income including noncontrolling interests				213,431
Net income and comprehensive income attributable to Antero Resources Corporation			$	213,431

XML

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Accounts Payable
Basis of Presentation
Book overdrafts	$ 46	$ 28
Revenue distributions payable
Basis of Presentation
Book overdrafts	$ 31	$ 43

XML

Summary of Significant Accounting Policies - Reconciliation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary of Significant Accounting Policies
Net income (loss) attributable to Antero Resources Corporation-common shareholders	$ 213,431	$ (156,419)
Add: Interest expense for 2026 Convertible Notes	616
Less: Tax-effect of interest expense for 2026 Convertible Notes	(132)
Net income (loss) attributable to Antero Resources Corporation-common shareholders and assumed conversions	$ 213,915	$ (156,419)
Income (loss) per share-basic (in dollars per share)	$ 0.72	$ (0.50)
Income (loss) per share-diluted (in dollars per share)	$ 0.69	$ (0.50)
Weighted average common shares outstanding-basic (in shares)	296,763	314,081
Weighted average common shares outstanding-diluted (in shares)	311,846	314,081

XML

Summary of Significant Accounting Policies - Reconciliation of Weighted Average Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings per share and New Accounting Principle
Basic weighted average number of shares outstanding	296,763	314,081
Diluted weighted average number of shares outstanding	311,846	314,081
RSUs
Earnings per share and New Accounting Principle
Add: Dilutive effect	2,150
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share	969	4,878
PSUs
Earnings per share and New Accounting Principle
Add: Dilutive effect	1,060
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share	414	3,443
Stock options
Earnings per share and New Accounting Principle
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share	324	351
4.25% convertible senior notes due 2026
Earnings per share and New Accounting Principle
Add: Dilutive effect	11,873
Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share		18,778

XML

Summary of Significant Accounting Policies - Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jan. 01, 2023	Dec. 31, 2022	Jan. 01, 2022	Dec. 31, 2021	Aug. 21, 2020
Recently Issued Accounting Standards
Additional paid-in capital	$ 5,806,031		$ 5,838,848
Long-term debt	1,312,046		1,183,476
Deferred income tax liability, net	822,010		759,861
Retained earnings	1,102,340		913,896
4.25% convertible senior notes due 2026
Recently Issued Accounting Standards
Long-term debt	$ 38,673		$ 55,773
Effective interest rate (as a percent)					15.10%	15.10%
Accounting Standards Update 2020-06 | Adjustment Effect
Recently Issued Accounting Standards
Additional paid-in capital				$ (24,000)
Long-term debt				27,000
Deferred income tax liability, net				(6,000)
Retained earnings				$ 3,000
Accounting Standards Update 2020-06 | Adjustment Effect | 4.25% convertible senior notes due 2026
Recently Issued Accounting Standards
Effective interest rate (as a percent)		4.90%

XML

Transactions (Details) ft in Thousands, $ in Millions			3 Months Ended		12 Months Ended
	Apr. 01, 2023 ft	Jun. 15, 2020 ft	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)	Feb. 17, 2021
ORRI
Transactions
Initial PDP Override (as a percent)		1.25%
Development Override (as a percent)		3.75%
Horizontal wells turned to sales, threshold one (in lateral feet)		2,200
Horizontal wells turned to sales, threshold two (in lateral feet)		3,820
Incremental override (percentage)		2.00%
Percentage of distributions received		85.00%
ORRI | Minimum
Transactions
Horizontal wells turned to sales	2,200
ORRI | Maximum
Transactions
Horizontal wells turned to sales	3,820
ORRI | Sixth Street
Transactions
Internal rate of return threshold		13.00%
Cash on cash return threshold		150.00%
Drilling Partnership | QL
Transactions
Cash contribution | $					$ 29
Percent of total development capital spending in current year funded by drilling partner						20.00%
Percent of total development capital spending in the next year to be funded by drilling partner						15.00%
Percent of total development capital spending in year two to be funded by drilling partner						15.00%
Gain (loss) on interests conveyed | $			$ 0	$ 0
Drilling Partnership | QL | Minimum
Transactions
Percent of total development capital spending in year three to be funded by drilling partner						15.00%
Drilling Partnership | QL | Maximum
Transactions
Percent of total development capital spending in year three to be funded by drilling partner						20.00%

XML

Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue
Revenue	$ 1,274,265	$ 1,788,429
Income (loss) from derivatives, deferred revenue and other sources	134,083	(1,001,589)
Total revenue	1,408,348	786,840
Natural gas sales
Disaggregation of Revenue
Total revenue	668,315	995,792
Oil sales
Disaggregation of Revenue
Total revenue	51,811	63,294
Marketing
Disaggregation of Revenue
Total revenue	58,529	69,038
Exploration and production | Natural gas sales
Disaggregation of Revenue
Revenue	668,315	995,792
Exploration and production | Natural gas liquids sales (ethane)
Disaggregation of Revenue
Revenue	72,050	67,063
Exploration and production | Natural gas liquids sales (C3+ NGLs)
Disaggregation of Revenue
Revenue	423,385	593,242
Exploration and production | Oil sales
Disaggregation of Revenue
Revenue	51,811	63,294
Exploration and production | Other
Disaggregation of Revenue
Revenue	175
Marketing | Marketing
Disaggregation of Revenue
Revenue	$ 58,529	$ 69,038

XML

Revenue - Transaction Price Allocation and Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Revenue
Original expected duration	true
Receivables from contracts with customers	$ 379,337	$ 707,685

XML

Equity Method Investment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Investments in unconsolidated affiliates
Equity in earnings of unconsolidated affiliate	$ 17,681	$ 25,178
Dividends from unconsolidated affiliate	$ (31,285)	$ (31,285)
Antero Midstream Corporation
Equity Method Investments
Ownership percentage	29.00%
Investments in unconsolidated affiliates
Balance at beginning of period	$ 220,429
Equity in earnings of unconsolidated affiliate	17,681
Dividends from unconsolidated affiliate	(31,285)
Elimination of intercompany profit	12,690
Balance at end of period	$ 219,515
Fair value of investment			$ 1,500,000

XML

Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities
Capital expenditures	$ 44,213	$ 57,361
Gathering, compression, processing, and transportation expenses	159,375	162,783
Marketing expenses	27,073	61,118
Interest expense, net	13,582	31,892
Production and ad valorem taxes	36,861	32,536
General and administrative expense	20,260	32,477
Derivative settlements payable	411	53,732
Other	16,309	29,889
Total accrued liabilities	$ 318,084	$ 461,788

XML

Long-Term Debt (Details) $ in Thousands, shares in Millions					1 Months Ended	3 Months Ended		12 Months Ended	15 Months Ended
	Jun. 01, 2021 USD ($)	Jan. 26, 2021 USD ($)	Jan. 04, 2021 USD ($)	Aug. 21, 2020 USD ($) D	Sep. 02, 2020 USD ($)	Mar. 31, 2023 USD ($) shares	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Oct. 18, 2021 USD ($)	Dec. 21, 2016 USD ($)
Long-Term Debt
Total principal						$ 1,323,511			$ 1,323,511	$ 1,195,717
Unamortized debt issuance costs						(11,465)			(11,465)	(12,241)
Long-term debt						1,312,046			1,312,046	1,183,476
Aggregate principal amount converted						17,172
Loss on convertible note equitizations						86
Gain (loss) on extinguishment of debt repurchased							$ (10,654)
Credit Facility
Long-Term Debt
Credit facility						180,100			180,100	34,800
Current borrowing base						3,500,000			3,500,000	3,500,000
Lender commitments						$ 1,500,000			1,500,000	1,500,000
Debt maturity threshold days						180 days
Available borrowing capacity						$ 816,000			816,000
Outstanding letters of credit						$ 504,000			$ 504,000	$ 504,000
Weighted average interest rate (as a percent)						6.91%			6.91%	6.42%
Credit Facility | Minimum
Long-Term Debt
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent)						0.375%
Credit Facility | Maximum
Long-Term Debt
Commitment fees on the unused portion during any period that is not an Investment Grade Period (as a percent)						0.50%
5.00% senior notes due 2025
Long-Term Debt
Senior notes												$ 600,000
Interest rate (as a percent)												5.00%
Issue price as percentage of par value												100.00%
5.00% senior notes due 2025 | Debt Repurchase Program
Long-Term Debt
Amount of debt repurchased							585,000
Gain (loss) on extinguishment of debt repurchased							$ (11,000)
Percentage of redeemed amount							101.25%
8.375% Senior Notes Due 2026
Long-Term Debt
Senior notes			$ 500,000			$ 96,870			$ 96,870	$ 96,870
Interest rate (as a percent)			8.375%			8.375%			8.375%	8.375%
Issue price as percentage of par value			100.00%
Redemption price of the debt instrument in the event of change of control (as a percent)			101.00%
Amount of debt repurchased										$ 403,000
8.375% Senior Notes Due 2026 | On or after January 15, 2024
Long-Term Debt
Redemption price			104.188%
8.375% Senior Notes Due 2026 | On or after January 15, 2026
Long-Term Debt
Redemption price			100.00%
8.375% Senior Notes Due 2026 | Prior to January 15, 2024
Long-Term Debt
Redemption price			100.00%
7.625% Senior Notes Due 2029
Long-Term Debt
Senior notes		$ 700,000				$ 407,115			$ 407,115	$ 407,115
Interest rate (as a percent)		7.625%				7.625%			7.625%	7.625%
Issue price as percentage of par value		100.00%
Redemption price of the debt instrument in the event of change of control (as a percent)		101.00%
Amount of debt repurchased										$ 293,000	$ 116,000
7.625% Senior Notes Due 2029 | On or after February 1, 2024
Long-Term Debt
Redemption price		103.813%
7.625% Senior Notes Due 2029 | On or after February 1, 2027
Long-Term Debt
Redemption price		100.00%
7.625% Senior Notes Due 2029 | On or before February 1, 2024
Long-Term Debt
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent)		107.625%
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings		35.00%
7.625% Senior Notes Due 2029 | Prior to February 1, 2024
Long-Term Debt
Redemption price		100.00%
5.375% senior notes due 2030
Long-Term Debt
Senior notes	$ 600,000					$ 600,000			$ 600,000	$ 600,000
Interest rate (as a percent)	5.375%					5.375%			5.375%	5.375%
Issue price as percentage of par value	100.00%
Redemption price of the debt instrument in the event of change of control (as a percent)	101.00%
5.375% senior notes due 2030 | On or after March 1, 2025
Long-Term Debt
Redemption price	102.688%
5.375% senior notes due 2030 | On or after March 1, 2028
Long-Term Debt
Redemption price	100.00%
5.375% senior notes due 2030 | On or Before March 1, 2025
Long-Term Debt
Redemption price of the debt instrument if redeemed with the proceeds of certain equity offerings (as a percent)	105.375%
Percentage of the principal amount of the debt instrument which the entity may redeem with the proceeds from certain equity offerings	35.00%
5.375% senior notes due 2030 | Prior to March 1, 2025
Long-Term Debt
Redemption price	100.00%
4.25% convertible senior notes due 2026
Long-Term Debt
Convertible senior notes				$ 250,000	$ 37,500	$ 39,426			$ 39,426	$ 56,932
Unamortized discount, net				$ (116,000)
Unamortized debt issuance costs						(753)			(753)	(1,159)
Long-term debt						$ 38,673			$ 38,673	$ 55,773
Interest rate (as a percent)				4.25%		4.25%			4.25%	4.25%
Amount of debt converted								$ 206,000	$ 43,000
Issuance of convertible notes					278,500
Payments of deferred financing costs					$ 9,000
Conversion rate				230.2026
If-converted value						$ 210,000			210,000
If-converted value above principal amount						170,000			$ 170,000
Aggregate principal amount converted						9,000
Aggregate principal amount induced into conversion						$ 9,000
Shares issued to cover conversions (in shares) | shares						4
Cash inducement premium						$ 100
Effective interest rate (as a percent)				15.10%				15.10%
Interest expense							$ 1,000
4.25% convertible senior notes due 2026 | Convertible debt threshold minimum percentage
Long-Term Debt
Stock price trigger				98.00%
Trading days | D				5
Consecutive trading days | D				10
4.25% convertible senior notes due 2026 | Convertible debt threshold maximum percentage
Long-Term Debt
Stock price trigger				130.00%
Trading days | D				20
Consecutive trading days | D				30
4.25% convertible senior notes due 2026 | Fair value
Long-Term Debt
Fair value				$ 172,000

XML

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Asset Retirement Obligations
Asset retirement obligations - beginning of period	$ 59,485
Obligations incurred	248
Accretion expense	878
Settlement of obligations	(308)	$ (886)
Revisions to prior estimates	196
Asset retirement obligations - end of period	$ 60,499

XML

Equity-Based Compensation and Cash Awards (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 12, 2019	Mar. 31, 2023	Mar. 31, 2022	Jun. 17, 2020	Mar. 11, 2019
Stock-based compensation expense
Equity based compensation expense recognized		$ 13,018	$ 4,649
2020 Plan
Stock-based compensation expense
Number of stock-based compensation awards authorized				10,050,000
Number of shares available for future grant under the Plan		6,196,477
AMP Plan
Stock-based compensation expense
Number of stock-based compensation awards authorized					10,000,000
AMC Plan RSUs
Stock-based compensation expense
Conversion rate	1.8926
RSUs
Stock-based compensation expense
Equity based compensation expense recognized		$ 7,262	2,720
PSUs
Stock-based compensation expense
Equity based compensation expense recognized		5,405	1,419
Converted AM RSU Awards
Stock-based compensation expense
Equity based compensation expense recognized		1	160
Equity awards issued to directors
Stock-based compensation expense
Equity based compensation expense recognized		$ 350	$ 350

XML

Equity-Based Compensation and Cash Awards - Restricted Stock and RSU Awards (Details) - RSUs $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) $ / shares shares
Number of shares
Total awarded and unvested at the beginning of the period (in shares) | shares	4,676,219
Granted (in shares) | shares	1,425,619
Vested (in shares) | shares	(892,595)
Forfeited (in shares) | shares	(58,898)
Total awarded and unvested at the end of the period (in shares) | shares	5,150,345
Weighted average grant date fair value
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares	$ 15.29
Granted (in dollars per share) | $ / shares	25.98
Vested (in dollars per share) | $ / shares	3.20
Forfeited (in dollars per share) | $ / shares	22.46
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares	$ 20.27
Unamortized equity-based compensation expense | $	$ 84
Weighted average period for recognizing unrecognized stock-based compensation expense	2 years 6 months

XML

Equity-Based Compensation and Cash Awards - PSU awards (Details) $ / shares in Units, $ in Millions	1 Months Ended			3 Months Ended
	Mar. 31, 2023 USD ($) period $ / shares shares	Jul. 31, 2020 USD ($)	Jan. 31, 2020 USD ($) tranche	Mar. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($)
Cash Awards
Unvested cash awards recorded in other liabilities | $	$ 1			$ 1	$ 1
2013 Plan
Cash Awards
Cash awards granted | $			$ 3
Number of tranches related to cash awards | tranche			3
2020 Plan
Cash Awards
Cash awards granted | $		$ 3
Vesting period for cash awards		4 years
PSUs
Number of units
Total awarded and unvested at the beginning of the period (in shares) | shares				1,329,725
Granted (in shares) | shares				417,466
Total awarded and unvested at the end of the period (in shares) | shares	1,747,191			1,747,191
Weighted average grant date fair value
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares				$ 23.18
Granted (in dollars per share) | $ / shares				28.51
Total awarded and unvested at the end of the period (in dollars per share) | $ / shares	$ 24.45			$ 24.45
Additional disclosures
Unamortized equity-based compensation expense | $	$ 41			$ 41
Weighted average period for recognizing unrecognized stock-based compensation expense				1 year 9 months 18 days
PSU Awards Based on Absolute TSR
Weighted-average assumptions used to calculate fair value of performance share units granted
Volatility (as a percent)				82.00%
Risk-free interest rate (as a percent)				4.61%
Weighted average fair value of awards granted - Absolute TSR | $ / shares				$ 33.96
PSU Awards Based on Absolute TSR | Minimum
Stock-based compensation
Number of PSUs that may vest, as a percent	0.00%
PSU Awards Based on Absolute TSR | Maximum
Stock-based compensation
Number of PSUs that may vest, as a percent	200.00%
PSU Awards Based on Absolute TSR | One Year Period
Stock-based compensation
Service period	1 year
Number of performance periods | period	3
PSU Awards Based on Absolute TSR | Three Year Period
Stock-based compensation
Service period	3 years
Number of cumulative performance periods | period	1
2023 PSU Awards Based on Leverage Ratio
Stock-based compensation
Service period	1 year
Number of performance periods | period	3
2023 PSU Awards Based on Leverage Ratio | Minimum
Stock-based compensation
Number of PSUs that may vest, as a percent	0.00%
2023 PSU Awards Based on Leverage Ratio | Maximum
Stock-based compensation
Number of PSUs that may vest, as a percent	200.00%

XML

Equity-Based Compensation and Cash Awards - Converted AM RSU Awards (Details) - Converted AM RSU Awards	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of units
Total awarded and unvested at the beginning of the period (in shares) | shares	2,827
Vested (in shares) | shares	(2,827)
Weighted average grant date fair value
Total awarded and unvested at the beginning of the period (in dollars per share) | $ / shares	$ 12.38
Vested (in dollars per share) | $ / shares	$ 12.38

XML

Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair value | Level 2 market data
Financial Instruments
Value	$ 1,281,879	$ 1,474,146
Fair value | Level 2 market data | 8.375% Senior Notes Due 2026
Financial Instruments
Value	100,987	100,987
Fair value | Level 2 market data | 7.625% Senior Notes Due 2029
Financial Instruments
Value	415,257	410,860
Fair value | Level 2 market data | 5.375% senior notes due 2030
Financial Instruments
Value	556,500	556,260
Fair value | Level 2 market data | 4.25% convertible senior notes due 2026
Financial Instruments
Value	209,135	406,039
Carrying value
Financial Instruments
Value	1,131,946	1,148,676
Carrying value | 8.375% Senior Notes Due 2026
Financial Instruments
Value	96,179	96,123
Carrying value | 7.625% Senior Notes Due 2029
Financial Instruments
Value	403,011	402,872
Carrying value | 5.375% senior notes due 2030
Financial Instruments
Value	594,083	593,908
Carrying value | 4.25% convertible senior notes due 2026
Financial Instruments
Value	$ 38,673	$ 55,773

XML

Derivative Instruments - Commodity derivatives (Details)	Mar. 31, 2023 MMBTU / d bbl / d $ / bbl $ / MMBTU
Natural gas. | Henry Hub | April-December 2023
Derivative Instruments
Notional amount | MMBTU / d	55,000
Natural gas. | Henry Hub | January-December 2024
Derivative Instruments
Notional amount | MMBTU / d	53,000
Natural gas. | Henry Hub | January-December 2025
Derivative Instruments
Notional amount | MMBTU / d	44,000
Natural gas. | Henry Hub | January-December 2026
Derivative Instruments
Notional amount | MMBTU / d	32,000
Natural gas. | NYMEX to TCO | April-December 2023
Derivative Instruments
Notional amount | MMBTU / d	50,000
Weighted average hedged differential	0.525
Natural gas. | NYMEX to TCO | January-December 2024
Derivative Instruments
Notional amount | MMBTU / d	50,000
Weighted average hedged differential	0.530
Swaps | Natural gas. | Henry Hub | April-December 2023
Derivative Instruments
Notional amount | MMBTU / d	43,000
Weighted average index price	2.37
Swaps | Natural gas. | Henry Hub | April-December 2023 | VIE, Martica
Derivative Instruments
Notional amount | MMBTU / d	33,955
Weighted average index price	2.35
Swaps | Natural gas. | Henry Hub | January-December 2024 | VIE, Martica
Derivative Instruments
Notional amount | MMBTU / d	23,885
Weighted average index price	2.33
Swaps | Natural gas. | Henry Hub | January-March 2025 | VIE, Martica
Derivative Instruments
Notional amount | MMBTU / d	18,021
Weighted average index price	2.53
Swaps | Natural Gasoline | Mont Belvieu Natural Gasoline-OPIS Non-TET | April-December 2023 | VIE, Martica
Derivative Instruments
Notional amount | bbl / d	240
Weighted average index price | $ / bbl	40.74
Swaps | Oil | West Texas Intermediate | April-December 2023 | VIE, Martica
Derivative Instruments
Notional amount | bbl / d	88
Weighted average index price | $ / bbl	44.85
Swaps | Oil | West Texas Intermediate | January-December 2024 | VIE, Martica
Derivative Instruments
Notional amount | bbl / d	43
Weighted average index price | $ / bbl	44.02
Swaps | Oil | West Texas Intermediate | January-March 2025 | VIE, Martica
Derivative Instruments
Notional amount | bbl / d	39
Weighted average index price | $ / bbl	45.06
Call option and embedded put option | Natural gas. | Put option | Henry Hub | April-December 2023
Derivative Instruments
Strike price	2.466
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2024
Derivative Instruments
Strike price	2.527
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2025
Derivative Instruments
Strike price	2.614
Call option and embedded put option | Natural gas. | Put option | Henry Hub | January-December 2026
Derivative Instruments
Strike price	2.679
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | April-December 2023
Derivative Instruments
Strike price	2.466
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2024
Derivative Instruments
Strike price	2.477
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2025
Derivative Instruments
Strike price	2.564
Call option and embedded put option | Natural gas. | Call Option | Henry Hub | January-December 2026
Derivative Instruments
Strike price	2.629

XML

Derivative Instruments - Fair value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair value of derivative instruments
Current portion of fair value of derivative assets	$ 6,242	$ 1,900
Noncurrent portion of fair value of derivative assets	9,825	9,844
Current portion of fair value of derivative liabilities	28,716	97,765
Noncurrent portion of fair value of derivative liabilities	75,854	345,280
Derivatives not designated as hedges for accounting purposes
Fair value of derivative instruments
Total asset derivatives	16,067	11,744
Total liability derivatives	104,570	443,045
Net derivatives liability	(88,503)	(431,301)
Derivatives not designated as hedges for accounting purposes | Commodity derivatives
Fair value of derivative instruments
Current portion of fair value of derivative assets	397
Current portion of fair value of derivative liabilities	28,716	97,765
Noncurrent portion of fair value of derivative liabilities	75,854	345,280
Derivatives not designated as hedges for accounting purposes | Commodity derivatives | VIE, Martica
Fair value of derivative instruments
Current portion of fair value of derivative liabilities	9,000	28,000
Noncurrent portion of fair value of derivative liabilities	10,000	19,000
Total liability derivatives	19,000	47,000
Derivatives not designated as hedges for accounting purposes | Embedded derivatives
Fair value of derivative instruments
Current portion of fair value of derivative assets	5,845	1,900
Noncurrent portion of fair value of derivative assets	$ 9,825	$ 9,844

XML

Derivative Instruments - Assets and liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commodity derivatives
Commodity derivative assets
Gross amounts on balance sheet	$ 3,043	$ 276
Gross amounts offset on balance sheet	(2,646)	(276)
Total asset derivatives	397
Commodity derivative liabilities
Gross amounts on balance sheet	(107,216)	(443,321)
Gross amounts offset on balance sheet	2,646	276
Total liability derivatives	(104,570)	(443,045)
Embedded derivatives
Commodity derivative assets
Gross amounts on balance sheet	15,670	11,744
Total asset derivatives	$ 15,670	$ 11,744

XML

Derivative Instruments - Fair value gains (losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Summary of realized and unrealized gains (losses) on derivative instruments
Derivative fair value gains (losses)	$ 126,192	$ (1,011,380)
Payments for derivative monetizations	202,339
Commodity derivatives
Summary of realized and unrealized gains (losses) on derivative instruments
Payments for derivative monetizations	202,000
Commodity derivatives | Revenue.
Summary of realized and unrealized gains (losses) on derivative instruments
Derivative fair value gains (losses)	127,080	(994,483)
Embedded derivatives | Revenue.
Summary of realized and unrealized gains (losses) on derivative instruments
Derivative fair value gains (losses)	$ (888)	$ (16,897)

XML

Leases (Details)	3 Months Ended
	Mar. 31, 2023
Leases
Options to renew - Operating lease	true
Minimum
Leases
Renewal terms - Operating lease	1 year
Maximum
Leases
Renewal terms - Operating lease	20 years

XML

Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Lease Assets
Operating leases right-of-use assets	$ 3,401,994	$ 3,444,331
Short-term operating lease obligation	$ 552,806	$ 556,137
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Operating And Finance Lease Liability Current	Operating And Finance Lease Liability Current
Long-term operating lease obligation	$ 2,849,188	$ 2,888,194
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating And Finance Lease Liability Noncurrent	Operating And Finance Lease Liability Noncurrent
Total operating lease obligation	$ 3,401,994	$ 3,444,331
Finance leases, right of use assets	3,109	2,159
Short-term finance lease obligation	$ 726	$ 499
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Operating And Finance Lease Liability Current	Operating And Finance Lease Liability Current
Long-term finance lease obligation	$ 2,383	$ 1,660
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating And Finance Lease Liability Noncurrent	Operating And Finance Lease Liability Noncurrent
Total finance lease obligation	$ 3,109	$ 2,159
Finance leases, accumulated amortization	1,000	1,000
Vehicles
Lease Assets
Operating leases right-of-use assets	$ 434	$ 756
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets
Finance leases, right of use assets	$ 3,109	$ 2,159
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Other, Gross	Property, Plant and Equipment, Other, Gross
Other office and field equipment
Lease Assets
Operating leases right-of-use assets	$ 3,092	$ 3,476
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets
Processing plants
Lease Assets
Operating leases right-of-use assets	$ 1,791,025	$ 1,849,116
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets
Drilling rigs and completion services
Lease Assets
Operating leases right-of-use assets	$ 68,932	$ 85,405
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets
Gas gathering lines and compressor stations
Lease Assets
Operating leases right-of-use assets	$ 1,497,721	$ 1,463,756
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets
Gas gathering lines and compressor stations | Antero Midstream Corporation
Lease Assets
Operating leases right-of-use assets	$ 1,500,000	$ 1,400,000
Office space
Lease Assets
Operating leases right-of-use assets	$ 40,790	$ 41,822
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating leases right-of-use assets	Operating leases right-of-use assets

XML

Leases - Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Leases
Total operating lease cost	$ 425,133	$ 376,505
Total finance lease cost	206	132
Short-term lease payments	37,701	48,760
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	315,665	305,841
Operating cash flows from finance leases	114
Investing cash flows from operating leases	32,880	6,037
Financing cash flows from finance leases	158	134
Right-of-use assets obtained in exchange for new operating lease obligations	51,208	5,321
Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net	$ 40,130	$ (25,926)
Weighted average discount rate for remeasured operating leases (as a percent)	5.80%	3.60%	5.20%	6.30%
Proved properties
Leases
Total operating lease cost	$ 39,770	$ 7,759
Gathering, compression, water handling and treatment, processing, and transportation
Leases
Total operating lease cost	381,283	365,834
General and administrative.
Leases
Total operating lease cost	2,937	2,867
Contract termination
Leases
Total operating lease cost	1,122
Lease operating.
Leases
Total operating lease cost	21	45
Depletion, depreciation and amortization
Leases
Amortization of right-of-use assets	92	118
Interest expense
Leases
Interest on lease liabilities	$ 114	$ 14

XML

Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Future minimum payments for operating lease liabilities
Remainder of 2023	$ 561,359
2024	685,290
2025	609,654
2026	556,196
2027	457,972
Thereafter	1,252,713
Total lease payments	4,123,184
Less: imputed interest	(721,190)
Total operating lease obligation	3,401,994	$ 3,444,331
Future minimum payments for financing lease liabilities
Remainder of 2023	891
2024	1,181
2025	1,139
2026	804
2027	38
Total lease payments	4,053
Less: imputed interest	(944)
Total finance lease obligation	3,109	$ 2,159
Future minimum payments for total lease liabilities
Remainder of 2023	562,250
2024	686,471
2025	610,793
2026	557,000
2027	458,010
Thereafter	1,252,713
Total lease payments	4,127,237
Less: imputed interest	(722,134)
Total	$ 3,405,103

XML

Leases - Lease Term and Discount Rate (Details)	Mar. 31, 2023	Dec. 31, 2022
Leases
Weighted-average remaining lease term: Operating lease	7 years	7 years 2 months 12 days
Weighted-average discount rate: Operating lease	5.60%	5.30%
Weighted-average remaining lease term: Finance lease	3 years 6 months	3 years 6 months
Weighted-average discount rate: Finance lease	8.00%	7.40%

XML

Leases - Related Party Lease Disclosure (Details) - USD ($) $ in Thousands		3 Months Ended
	Dec. 08, 2019	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Leases
Accounts payable, related parties		$ 99,784		$ 80,708
Antero Midstream Corporation
Leases
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction for high pressure lines (as a percent)	75.00%
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction of compressor stations (as a percent)	70.00%
Term of lease	10 years
Notice period	180 days
Rebate received		12,000
Gathering and compression fees paid		176,000	$ 163,000
Accounts payable, related parties		$ 70,000		$ 59,000
Percentage of rate of return	13.00%
Term for rate of return on constructions	7 years
Antero Midstream Corporation | Marcellus
Leases
Minimum volume commitments that require Antero to utilize or pay certain percentage of the capacity of new construction of compressor stations (as a percent)	25.00%
Term of lease	10 years

XML

Commitments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) MMBTU / d	Mar. 31, 2023 USD ($)
Future minimum payments
Remainder of 2023		$ 1,503,344
2024		1,894,515
2025		1,793,921
2026		1,704,514
2027		1,599,552
Thereafter		6,803,722
Total		15,299,568
Commitments
Early termination of commitment per day (in MMBtu/d) | MMBTU / d	200,000
Cash payment for early termination	$ 24,000
Firm transportation
Future minimum payments
Remainder of 2023		886,835
2024		1,145,151
2025		1,131,583
2026		1,129,147
2027		1,124,462
Thereafter		5,465,800
Total		10,882,978
Processing, Gathering, Compression and Water Service
Future minimum payments
Remainder of 2023		53,618
2024		62,892
2025		51,545
2026		18,368
2027		17,080
Thereafter		85,209
Total		288,712
Land payment obligations
Future minimum payments
Remainder of 2023		426,736
2024		532,603
2025		486,033
2026		459,014
2027		384,371
Thereafter		1,116,346
Total		3,405,103
Operating and Financing Leases
Future minimum payments
Remainder of 2023		135,514
2024		153,869
2025		124,760
2026		97,985
2027		73,639
Thereafter		136,367
Total		722,134
Imputed Interest for Leases
Future minimum payments
Remainder of 2023		641
Total		$ 641

XML

Reportable Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Operating results and assets of reportable segments
Number of reportable segments | segment	3
Sales and revenues:
Sales and revenues - Third-party	$ 1,408,005	$ 786,321
Sales and revenues - Intersegment	343	519
Revenues	1,408,348	786,840
Operating expenses:
Lease operating	29,321	17,780
General and administrative	57,261	35,691
Depletion, depreciation and amortization	167,582	168,388
Impairment of oil and gas properties	15,560	22,462
Other	161,962	156,840
Total operating expenses	1,076,858	991,439
Operating income (loss)	331,490	(204,599)
Equity in earnings of unconsolidated affiliate	17,681	25,178
Capital expenditures for segment assets	351,312	215,876
Investments in unconsolidated affiliates	219,515		$ 220,429
Total assets	13,871,146		14,118,039
Gathering, compression, water handling and treatment, processing, and transportation
Operating expenses:
Cost of goods and services sold	645,172	590,278
Operating segments | Exploration and production
Sales and revenues:
Sales and revenues - Third-party	1,349,476	717,283
Sales and revenues - Intersegment	343	519
Revenues	1,349,819	717,802
Operating expenses:
Lease operating	29,321	17,780
General and administrative	57,261	35,691
Depletion, depreciation and amortization	167,582	168,388
Impairment of oil and gas properties	15,560	22,462
Other	56,838	57,944
Total operating expenses	971,734	892,543
Operating income (loss)	378,085	(174,741)
Equity in earnings of unconsolidated affiliate	17,681	25,178
Capital expenditures for segment assets	351,312	215,876
Investments in unconsolidated affiliates	219,515		220,429
Total assets	13,855,955		14,081,077
Operating segments | Exploration and production | Gathering, compression, water handling and treatment, processing, and transportation
Operating expenses:
Cost of goods and services sold	645,172	590,278
Operating segments | Marketing
Sales and revenues:
Sales and revenues - Third-party	58,529	69,038
Revenues	58,529	69,038
Operating expenses:
Other	105,124	98,896
Total operating expenses	105,124	98,896
Operating income (loss)	(46,595)	(29,858)
Total assets	15,191		36,962
Operating segments | Antero Midstream Corporation
Sales and revenues:
Sales and revenues - Third-party	272	395
Sales and revenues - Intersegment	259,203	218,096
Revenues	259,475	218,491
Operating expenses:
General and administrative	17,347	17,931
Depletion, depreciation and amortization	35,196	28,300
Other	714	1,094
Total operating expenses	111,130	89,337
Operating income (loss)	148,345	129,154
Equity in earnings of unconsolidated affiliate	24,456	23,232
Capital expenditures for segment assets	42,279	84,267
Investments in unconsolidated affiliates	643,118		652,767
Total assets	5,779,728		5,791,320
Operating segments | Antero Midstream Corporation | Gathering, compression, water handling and treatment, processing, and transportation
Operating expenses:
Cost of goods and services sold	57,873	42,012
Elimination of intersegment transaction
Sales and revenues:
Sales and revenues - Third-party	(272)	(395)
Sales and revenues - Intersegment	(259,203)	(218,096)
Revenues	(259,475)	(218,491)
Operating expenses:
General and administrative	(17,347)	(17,931)
Depletion, depreciation and amortization	(35,196)	(28,300)
Other	(714)	(1,094)
Total operating expenses	(111,130)	(89,337)
Operating income (loss)	(148,345)	(129,154)
Equity in earnings of unconsolidated affiliate	(24,456)	(23,232)
Capital expenditures for segment assets	(42,279)	(84,267)
Investments in unconsolidated affiliates	(643,118)		(652,767)
Total assets	(5,779,728)		$ (5,791,320)
Elimination of intersegment transaction | Gathering, compression, water handling and treatment, processing, and transportation
Operating expenses:
Cost of goods and services sold	$ (57,873)	$ (42,012)

XML

Subsidiary Guarantors - Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Total current assets	$ 437,642	$ 787,525
Total assets	13,871,146	14,118,039
Liabilities and Stockholders' Equity
Accounts payable, related parties	99,784	80,708
Other current liabilities	2,103	1,707
Total current liabilities	1,497,541	1,774,909
Total liabilities	6,700,754	7,100,885
Parent (Antero) And Guarantor Subsidiaries
Current assets:
Other current assets	408,791	739,104
Noncurrent assets	12,782,007	12,663,911
Total assets	13,190,798	13,403,015
Liabilities and Stockholders' Equity
Accounts payable, related parties	99,784	80,708
Other current liabilities	1,386,904	1,668,426
Total current liabilities	1,486,688	1,749,134
Noncurrent liabilities	5,192,664	5,306,539
Total liabilities	$ 6,679,352	$ 7,055,673

XML

Subsidiary Guarantors - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Operations
Revenues	$ 1,274,265	$ 1,788,429
Operating expenses	1,076,858	991,439
Income (loss) from operations	331,490	(204,599)
Net income and comprehensive income including noncontrolling interests	261,202	(174,696)
Net income and comprehensive income attributable to Antero Resources Corporation	213,431	$ (156,419)
Parent (Antero) And Guarantor Subsidiaries
Statement of Operations
Revenues	1,348,658
Operating expenses	1,064,939
Income (loss) from operations	283,719
Net income and comprehensive income including noncontrolling interests	213,431
Net income and comprehensive income attributable to Antero Resources Corporation	$ 213,431