Immaterial Correction of Prior Period Error

6 Months Ended

Jun. 30, 2025

Immaterial Correction of Prior Period Error

Immaterial Correction of Prior Period Error

(17) Immaterial Correction of Prior Period Error

In the course of preparing our consolidated financial statements for the year ended December 31, 2024, the Company identified an error in the quarterly calculations related to depletion expense of the Company’s proved oil and gas properties. This error had the effect of incorrectly reporting depletion expense amounts in prior periods, which resulted in incorrectly reporting depletion, depreciation and amortization expense and income tax (expense) benefit in prior periods.

After considering the guidance in Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and FASB ASC Topic 250, Accounting Changes and Error Corrections, the Company evaluated the materiality of these amounts quantitatively and qualitatively and concluded that the error was not material to any of the Company’s prior annual or interim period financial statements. The unaudited condensed consolidated financial statements for the three and six months ended June 30, 2024 in this Quarterly Report on Form 10-Q, have been revised in accordance with SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, in order to reflect these corrections. The corrections reflect the adjustments to depletion, depreciation and amortization expense and income tax (expense) benefit described above, as well as the resulting adjustments to accumulated depletion, depreciation and amortization, deferred income tax liabilities, net and retained earnings (accumulated deficit). Retained earnings as of December 31, 2023 reflected in the accompanying consolidated statements of equity has been decreased by $80 million from its previously reported balance of $1.1 billion to the corrected balance of $1.1 billion to reflect the impact of correcting this error for the years ended December 31, 2021, 2022 and 2023. The correction of this error also impacted certain non-cash line items within the operating activities section of the consolidated statements of cash flows; however, these corrections did not change previously reported net cash provided by operating activities for any period.

In addition to correcting the unaudited condensed consolidated financial statements, we have also corrected the following notes to the unaudited condensed consolidated financial statements for the effects of this error: (i) Note 2 — Summary of Significant Accounting Policies and (ii) Note 16 — Reportable Segments.

The following table presents the effect of the corrections on selected line items from the previously reported unaudited condensed consolidated financial statements as of June 30, 2024 (in thousands, except per share amounts):

	Statement of Operations and Comprehensive Loss
	Three Months Ended June 30, 2024
	As Previously				As
	Reported		Corrections		Corrected
Depletion, depreciation and amortization	$	170,536		18,097		188,633
Total operating expenses		1,040,643		18,097		1,058,740
Operating loss		(61,989)		(18,097)		(80,086)
Loss before income taxes		(73,789)		(18,097)		(91,886)
Income tax benefit		13,334		3,954		17,288
Net loss, including noncontrolling interest		(60,455)		(14,143)		(74,598)
Net loss and comprehensive loss attributable to Antero Resources Corporation		(65,663)		(14,143)		(79,806)
Loss per common share—basic	$	(0.21)		(0.05)		(0.26)
Loss per common share—diluted	$	(0.21)		(0.05)		(0.26)

	Statement of Operations and Comprehensive Loss
	Six Months Ended June 30, 2024
	As Previously				As
	Reported		Corrections		Corrected
Depletion, depreciation and amortization	$	343,590		35,518		379,108
Total operating expenses		2,097,754		35,518		2,133,272
Operating income (loss)		3,171		(35,518)		(32,347)
Loss before income taxes		(15,469)		(35,518)		(50,987)
Income tax benefit		3,301		7,760		11,061
Net loss, including noncontrolling interest		(12,168)		(27,758)		(39,926)
Net loss and comprehensive loss attributable to Antero Resources Corporation		(29,318)		(27,758)		(57,076)
Loss per common share—basic	$	(0.10)		(0.09)		(0.19)
Loss per common share—diluted	$	(0.10)		(0.09)		(0.19)