Antero Resources — Jul 30, 2025 release
Fiscal 2025 second-quarter results · 8-K Item 2.02 · Exhibit 99.1 · 0001104659-25-072212
Showing in the filing
C3+ NGL Realized Price Premium vs Mont Belvieu ($/Bbl)
“$1.00”
Period
FY2025
Measure
Company-defined measure
Source
Guidance table
All guidance in this release · 7
Net Daily Natural Gas Equivalent Production … for FY2025
“3.4 to 3.45”
Production for FY2025
“3.4 to 3.45 Bcfe/d”
Drilling and completion capital budget for FY2025
“$650 to $675 million”
Drilling and Completion Capital Budget ($MM) for FY2025
“$650”
C3+ NGL realized price premium to Mont Belvieu for FY2025
“$1.00 to $2.00 per barrel”
C3+ NGL Realized Price Premium vs Mont Belvi… for FY2025
“$1.00”
C3+ NGL pricing premium to Mont Belvieu for FY2025
“$1.50 to $2.50 per barrel”
Exhibit 99.1 · full document
EXHIBIT 99.1
Exhibit 99.1
Antero Resources Announces Second Quarter 2025
Financial and Operating Results
Denver, Colorado, July 30, 2025—Antero
Resources Corporation (NYSE: AR) (“Antero Resources,” “Antero,” or the “Company”) today announced
its second quarter 2025 financial and operating results. The relevant consolidated financial statements are included in Antero Resources’
Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.
Highlights:
· Net production averaged 3.4 Bcfe/d
o Natural gas production averaged 2.2 Bcf/d
o Liquids production averaged 200 MBbl/d
· Realized a pre-hedge natural gas equivalent
price of $3.85 per Mcfe, which is a $0.41 per Mcfe premium to NYMEX
· Realized a pre-hedge C3+ NGL price of $37.92
per barrel
· Net income was $157 million and Adjusted Net
Income was $110 million (Non-GAAP)
· Adjusted EBITDAX was $379 million (Non-GAAP)
and net cash provided by operating activities was $492 million, increases of 151% and 243% compared to the prior year period, respectively
· Free Cash Flow was $262 million (Non-GAAP)
· Net Debt during the quarter was reduced by
$187 million, to $1.1 billion (Non-GAAP)
· Purchased 3.6 million shares for approximately
$126 million from April 1 st through July 30 th
· Published Antero’s Annual ESG Report
highlighting emissions reduction progress and significant local economic impacts
2025 Full-Year
Guidance Highlights:
· Increasing production guidance to 3.4 to 3.45
Bcfe/d, driven by strong well performance
· Decreasing drilling and completion capital
guidance to $650 to $675 million, due to continuing capital efficiency gains
Paul Rady, Chairman, CEO and President of Antero
Resources commented, “For the second consecutive year we increased production guidance, while also reducing our drilling and completion
capital budget. This reflects continued strong well performance combined with improving on our peer leading capital efficiency.”
Mr. Rady continued, “Looking ahead,
natural gas demand is expected to grow by more than 25% by 2030 driven by LNG export growth and increasing power demand fueled by AI Data
Centers. With firm transportation capacity to the Gulf Coast LNG corridor and over 20 years of premium drilling inventory, Antero is uniquely
positioned to benefit from both the significant new LNG capacity and the strong regional power demand growth that is anticipated by the
end of the decade.”
Michael Kennedy, CFO of Antero Resources said,
“Our best-in-class low maintenance capital requirements allows us to generate substantial Free Cash Flow in 2025. During the second
quarter, we used this Free Cash Flow to pay down nearly $200 million of debt and purchase $85 million of stock. Year-to-date through July 30 th ,
we purchased 4.4 million shares, or $152 million of stock. In addition, we have paid down approximately $400 million or 30% of our total
debt in the first two quarters of the year. Going forward, we plan to actively manage our return of capital strategy, continuing to use
buybacks opportunistically, while maintaining our focus on further debt reduction.”
For a discussion of the non-GAAP financial
measures including Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt please see “Non-GAAP Financial Measures.”
1
2025 Guidance Update
Antero is increasing its full year 2025 production
guidance to 3.4 to 3.45 Bcfe/d. The higher than expected volumes are driven by stronger well performance. Antero is decreasing its full
year 2025 drilling and completion capital budget to $650 to $675 million. The lower expected spend is a result of continued capital efficiency
gains.
Antero is updating its full year C3+ NGL realized
price guidance to a premium of $1.00 to $2.00 per barrel to reflect second quarter 2025 actuals. Antero still expects the company’s
C3+ NGL pricing premium to average $1.50 to $2.50 per barrel during the second half of 2025.
Full Year 2025
Revised
Full Year 2025 Guidance
Low
High
Net Daily Natural Gas Equivalent Production (Bcfe/d)
3.4
3.45
Drilling and Completion Capital Budget ($MM)
$ 650
$ 675
C3+ NGL Realized Price Premium vs Mont Belvieu ($/Bbl)
$ 1.00
$ 2.00
Note: Any 2025 guidance items not
discussed in this release are unchanged from previously stated guidance.
Free Cash Flow
During the second quarter of 2025, Free Cash Flow
was $262 million.
Three Months Ended June 30,
2024
2025
Net cash provided by operating activities
$ 143,499
492,358
Less: Capital expenditures
(192,385 )
(208,409 )
Less: Distributions to non-controlling interests in Martica
(19,282 )
(21,512 )
Free Cash Flow
$ (68,168 )
262,437
Changes in Working Capital (1)
(11,700 )
(106,165 )
Free Cash Flow before Changes in Working Capital
$ (79,868 )
156,272
(1) Working capital adjustments in the second quarter of 2024 includes $11 million in net increases in current assets and liabilities
and less than $1 million in net increases in accounts payable and accrued liabilities for additions to property and equipment. Working
capital adjustments in the second quarter of 2025 includes $116 million in net increases in current assets and liabilities and $10 million
in net decreases in accounts payable and accrued liabilities for additions to property and equipment.
Share Purchase Program
From April 1, 2025 to July 30, 2025
Antero purchased 3.6 million shares at an average weighted price of $34.49 per share, or an aggregate $126 million. Antero’s share
purchases were at an 8% discount to the volume weighted average price per share of $37.29 per share during that same period. This illustrates
the opportunistic strategy around the share buyback program. Antero has approximately $900 million of capacity remaining on its current
share purchase program.
Debt Reduction
As of June 30, 2025 Antero’s total
debt was $1.1 billion. Net Debt to trailing twelve month Adjusted EBITDAX was 0.8x. During the quarter, Antero reduced total debt by $187
million. Year-to-date, as of the end of the second quarter, Antero reduced debt by approximately $400 million, or 30% of total debt.
Natural Gas Hedge Program
Antero added new natural gas costless collars
for 2026. These wide collars lock in attractive rates of returns with a floor price of $3.14 per MMBtu and a ceiling price of $6.31 per
MMBtu. Antero did not enter into any new natural gas hedges for 2025. For more detail please see the presentation titled “Hedges
and Guidance Presentation” on Antero’s website.
2
Natural Gas MMBtu/d
Weighted Average Index Price ($/MMBtu)
% of Estimated Natural Gas Production (1)
2025 NYMEX Henry Hub Swap
100,000
$ 3.12
4 %
Weighted Average Index
Natural Gas (MMBtu/d)
Floor Price ($/MMBtu)
Ceiling Price ($/MMBtu)
% of Estimated Natural Gas Production (1)
2026 NYMEX Henry Hub Costless Collars
500,000
$ 3.14
$ 6.31
21 %
(1) Based on the midpoint of 2025 natural gas guidance (including BTU upgrade)
Second Quarter 2025 Financial Results
Net daily natural gas equivalent production in
the second quarter averaged 3.4 Bcfe/d, including 200 MBbl/d of liquids. Antero’s average realized natural gas price before hedges
was $3.39 per Mcf, a $0.05 per Mcf discount to the benchmark index price. Antero’s realized natural gas price during the quarter
was negatively impacted by maintenance in June on a Gulf Coast directed pipeline. This resulted in increased sales at a regional
hub that is priced at a discount to the benchmark. Antero’s average realized C3+ NGL price before hedges was $37.92 per barrel.
The following table details average net production
and average realized prices for the three months ended June 30, 2025:
Three Months Ended June 30, 2025
Natural Gas (MMcf/d)
Oil (Bbl/d)
C3+ NGLs (Bbl/d)
Ethane (Bbl/d)
Combined Natural Gas Equivalent (MMcfe/d)
Average Net Production
2,230
7,385
116,571
76,088
3,430
Three Months Ended June 30, 2025
Natural Gas
Oil
C3+ NGLs
Ethane
Combined Natural Gas Equivalent
Average Realized Prices
($/Mcf)
($/Bbl)
($/Bbl)
($/Bbl)
($/Mcfe)
Average realized prices before settled derivatives
$ 3.39
50.15
37.92
11.34
3.85
Index price (1)
$ 3.44
63.74
38.07
10.11
3.44
Premium / (Discount) to Index price
$ (0.05 )
(13.59 )
(0.15 )
1.23
0.41
Settled commodity derivatives
$ (0.03 )
—
—
—
(0.02 )
Average realized prices after settled derivatives
$ 3.36
50.15
37.92
11.34
3.83
Premium / (Discount) to Index price
$ (0.08 )
(13.59 )
(0.15 )
1.23
0.39
(1) Please see Antero’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025,
for more information on these index and average realized prices.
All-in cash expense, which includes lease operating,
gathering, compression, processing and transportation and production and ad valorem taxes was $2.48 per Mcfe in the second quarter, as
compared to $2.36 per Mcfe during the second quarter of 2024. The increase was due primarily to higher gathering, compression, processing
and transportation costs related to increased fuel costs as a result of higher natural gas prices. Net marketing expense was $0.06 per
Mcfe during the second quarter of 2025, compared to $0.07 per Mcfe during the second quarter of 2024.
3
Second Quarter 2025 Operating Results
Antero placed 18 horizontal Marcellus wells to
sales during the second quarter with an average lateral length of 13,500 feet . Eleven of these wells have been on line for approximately
60 days with an average rate per well of 24 MMcfe/d, including 1,200 Bbl/d of liquids per well assuming 25% ethane recovery .
Second Quarter 2025 Capital Investment
Antero’s drilling and completion capital
expenditures for the three months ended June 30, 2025 were $171 million. In addition to capital invested in drilling and completion
activities, the Company leased $26 million in land during the second quarter. Through this leasing, Antero added approximately 5,000 net
acres, representing 20 incremental drilling locations, replenishing the 18 wells brought on line during the second quarter at an average
cost of approximately $820,000 per location. In addition to the incremental locations, Antero also acquired minerals in its Marcellus
area of development to increase its net revenue interest in future drilling locations.
2024 ESG Report Highlights
Antero published its 2024 ESG Report, marking
the Company's 8th year reporting on its environmental, social and governance (ESG) performance. This year’s report highlights the
Company’s emissions reduction progress, significant local economic impacts, increased water recycling rate and continued commitment
to safety across our operations. The report can be found at www.anteroresources.com/esg .
· Decreased absolute methane emissions (metric
tons) by 77% and methane intensity by 79% since 2019
· Reduced overall Scope 1 emissions and Scope 1
GHG intensity by 63% since 2019
· Recycled 89% of the wastewater during the year
· On track to achieve its 2025 Net Zero Scope 1
GHG emission goal due to the reduction in overall emissions and supplemented by the LPG stove initiative in Ghana that creates premium
certified carbon offsets
Conference Call
A conference call is scheduled on Thursday, July 31,
2025 at 9:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow
the discussion of the results. To participate in the call, dial in at 877-407-9079 (U.S.), or 201-493-6746 (International) and reference
“Antero Resources.” A telephone replay of the call will be available until Thursday, August 7, 2025 at 9:00 am MT at
877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750396. To access the live webcast and view the related
earnings conference call presentation, visit Antero's website at www.anteroresources.com. The webcast will be archived for replay until
Thursday, August 7, 2025 at 9:00 am MT.
Presentation
An updated presentation will be posted to the
Company's website before the conference call. The presentation can be found at www.anteroresources.com
on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference into this
press release.
Non-GAAP Financial Measures
Adjusted Net Income
Adjusted Net Income as set forth in this release
represents net income, adjusted for certain items. Antero believes that Adjusted Net Income is useful to investors in evaluating operational
trends of the Company and its performance relative to other oil and gas producing companies. Adjusted Net Income is not a measure of financial
performance under GAAP and should not be considered in isolation or as a substitute for net income as an indicator of financial performance.
The GAAP measure most directly comparable to Adjusted Net Income is net income. The following table reconciles net income to Adjusted
Net Income (in thousands):
4
Three Months Ended June 30,
2024
2025
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
$ (79,806 )
156,585
Net income and comprehensive income attributable to noncontrolling interests
5,208
9,988
Unrealized commodity derivative (gains) losses
11,479
(59,763 )
Amortization of deferred revenue, VPP
(6,739 )
(6,298 )
Loss (gain) on sale of assets
(18 )
546
Impairment of property and equipment
313
6,297
Equity-based compensation
17,151
15,855
Loss on early extinguishment of debt
—
729
Equity in earnings of unconsolidated affiliate
(20,881 )
(30,563 )
Contract termination, loss contingency and settlements
3,009
13,596
Tax effect of reconciling items (1)
(938 )
13,021
(71,222 )
119,993
Martica adjustments (2)
(3,225 )
(9,988 )
Adjusted Net Income (Loss)
$ (74,447 )
110,005
Diluted Weighted Average Common Shares Outstanding (3)
310,806
313,184
(1) Deferred taxes were approximately 22% for 2024 and 2025.
(2) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above
(3) Diluted weighted average shares outstanding does not include securities that would have had an anti-dilutive
effect on the computation of diluted earnings per share. Anti-dilutive weighted average shares outstanding were 5.8 million for the three
months ended June 30, 2024. There were no material anti-dilutive weighted average shares outstanding for the three months ended June 30,
2025.
Net Debt
Net Debt is calculated as total long-term debt
less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to
service its debt obligations.
The following table reconciles consolidated total
long-term debt to Net Debt as used in this release (in thousands):
December 31,
June 30,
2024
2025
Credit Facility
$ 393,200
140,000
8.375% senior notes due 2026
96,870
—
7.625% senior notes due 2029
407,115
365,353
5.375% senior notes due 2030
600,000
600,000
Unamortized debt issuance costs
(7,955 )
(6,684 )
Total long-term debt
$ 1,489,230
1,098,669
Less: Cash and cash equivalents
—
—
Net Debt
$ 1,489,230
1,098,669
Free Cash Flow
Free Cash Flow is a measure of financial performance
not calculated under GAAP and should not be considered in isolation or as a substitute for cash flow from operating, investing, or financing
activities, as an indicator of cash flow or as a measure of liquidity. The Company defines Free Cash Flow as net cash provided by operating
activities, less capital expenditures, which includes additions to unproved properties, drilling and completion costs and additions to
other property and equipment, less distributions to non-controlling interests in Martica.
The Company has not provided projected net cash
provided by operating activities or a reconciliation of Free Cash Flow to projected net cash provided by operating activities, the most
comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities
for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of
cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to
project these timing differences with any reasonable degree of accuracy without unreasonable efforts.
Free Cash Flow is a useful indicator of the Company’s
ability to internally fund its activities, service or incur additional debt and estimate our ability to return capital to shareholders.
There are significant limitations to using Free Cash Flow as a measure of performance, including the inability to analyze the effect of
certain recurring and non-recurring items that materially affect the Company’s net income, the lack of comparability of results
of operations of different companies and the different methods of calculating Free Cash Flow reported by different companies. Free Cash
Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions
and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations.
5
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure
that we define as net income, adjusted for certain items detailed below.
Adjusted EBITDAX as used and defined by us, may
not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance
with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss,
cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance
with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures,
working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds
may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and
obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because
this measure:
· is widely used by investors in the oil and natural
gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially
from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets
were acquired, among other factors;
· helps investors to more meaningfully evaluate
and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating
structure;
· is used by our management team for various purposes,
including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning
and forecasting: and
· is used by our Board of Directors as a performance
measure in determining executive compensation.
There are significant limitations to using Adjusted
EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that
materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different
methods of calculating Adjusted EBITDAX reported by different companies.
The GAAP measures most directly comparable to
Adjusted EBITDAX are net income and net cash provided by operating activities. The following table represents a reconciliation of Antero’s
net income, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero’s Adjusted EBITDAX to net cash
provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three months ended June 30,
2024 and 2025 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these adjustments are disclosed
in the table below as Martica related adjustments.
6
Three Months Ended June 30,
2024
2025
Reconciliation of net income (loss) to Adjusted EBITDAX:
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
$ (79,806 )
156,585
Net income and comprehensive income attributable to noncontrolling interests
5,208
9,988
Unrealized commodity derivative (gains) losses
11,479
(59,763 )
Amortization of deferred revenue, VPP
(6,739 )
(6,298 )
Loss (gain) on sale of assets
(18 )
546
Interest expense, net
32,681
19,954
Loss on early extinguishment of debt
—
729
Income tax expense (benefit)
(17,288 )
48,190
Depletion, depreciation, amortization and accretion
189,413
188,531
Impairment of property and equipment
313
6,297
Exploration expense
643
648
Equity-based compensation expense
17,151
15,855
Equity in earnings of unconsolidated affiliate
(20,881 )
(30,563 )
Dividends from unconsolidated affiliate
31,284
31,314
Contract termination, loss contingency, transaction expense and other
3,020
13,627
166,460
395,640
Martica related adjustments (1)
(15,058 )
(16,176 )
Adjusted EBITDAX
$ 151,402
379,464
Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities:
Adjusted EBITDAX
$ 151,402
379,464
Martica related adjustments (1)
15,058
16,176
Interest expense, net
(32,681 )
(19,954 )
Amortization of debt issuance costs and other
613
356
Exploration expense
(643 )
(648 )
Changes in current assets and liabilities
11,392
116,475
Contract termination, loss contingency, transaction expense and other
(214 )
(318 )
Other items
(1,428 )
807
Net cash provided by operating activities
$ 143,499
492,358
(1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above.
Twelve
Months Ended
June 30, 2025
Reconciliation of net income to Adjusted EBITDAX:
Net income and comprehensive income attributable to Antero Resources Corporation
$ 478,858
Net income and comprehensive income attributable to noncontrolling interests
40,804
Unrealized commodity derivative losses
6,913
Amortization of deferred revenue, VPP
(26,152 )
Loss on sale of assets
663
Interest expense, net
98,661
Loss on early extinguishment of debt
4,156
Income tax benefit
(4,534 )
Depletion, depreciation, amortization, and accretion
760,985
Impairment of property and equipment
53,845
Exploration
2,689
Equity-based compensation expense
64,234
Equity in earnings of unconsolidated affiliate
(108,783 )
Dividends from unconsolidated affiliate
125,256
Contract termination, loss contingency, transaction expense and other
13,983
1,511,578
Martica related adjustments (1)
(63,850 )
Adjusted EBITDAX
$ 1,447,728
(1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above.
7
Drilling and Completion Capital Expenditures
For a reconciliation between cash paid for drilling
and completion capital expenditures and drilling and completion accrued capital expenditures during the period, please see the capital
expenditures section below (in thousands):
Three Months Ended June 30,
2024
2025
Drilling and completion costs (cash basis)
$ 173,323
181,200
Change in accrued capital costs
(9,116 )
(10,531 )
Adjusted drilling and completion costs (accrual basis)
$ 164,207
170,669
Notwithstanding their use for comparative purposes,
the Company’s non-GAAP financial measures may not be comparable to similarly titled measures employed by other companies.
This release includes "forward-looking
statements." Words such as “may,” “assume,” “forecast,” “position,” “predict,”
“strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,”
“believe,” “project,” “budget,” “potential,” or “continue,” “goal,”
“target,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements
contain such identifying words. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are
not under Antero Resources’ control. All statements, except for statements of historical fact, made in this release regarding activities,
events or developments Antero Resources expects, believes or anticipates will or may occur in the future, such as those regarding our
financial strategy, future operating results, financial position, estimated revenues and losses, projected costs, estimated realized natural
gas, NGL and oil prices, prospects, plans and objectives of management, return of capital program, expected results, impacts of geopolitical,
including the conflicts in Ukraine and in the Middle East, and world health events, future commodity prices, future production targets,
including those related to certain levels of production, future earnings, leverage targets and debt repayment, future capital spending
plans, improved and/or increasing capital efficiency, expected drilling and development plans, projected well costs and cost savings initiatives,
operations of Antero Midstream, future financial position, the participation level of our drilling partner and the financial and production
results to be achieved as a result of that drilling partnership, the other key assumptions underlying our projections, the impact of recently
enacted legislation, and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s
current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements
speak only as of the date of this release. Although Antero Resources believes that the plans, intentions and expectations reflected in
or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will
be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.
Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly update or revise any
forward-looking statements.
Antero Resources cautions you that these forward-looking
statements are subject to all of the risks and uncertainties, incidental to our business, most of which are difficult to predict and many
of which are beyond the Antero Resources’ control. These risks include, but are not limited to, commodity price volatility, inflation,
supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks,
drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, changes in
emission calculation methods, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates
of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders,
impacts of geopolitical, including the conflicts in Ukraine and the Middle East, and world health events, cybersecurity risks, the state
of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading " Risk Factors"
in Antero Resources’ Annual Report on Form 10-K for the year ended December 31, 2024 and the Quarterly Report on Form 10-Q
for the quarter ended June 30, 2025.
For more information, contact Daniel Katzenberg,
Director - Finance and Investor Relations of Antero Resources at (303) 357-7219 or dkatzenberg@anteroresources.com.
8
ANTERO RESOURCES CORPORATION
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
(Unaudited)
December 31,
June 30,
2024
2025
Assets
Current assets:
Accounts receivable
$ 34,413
31,650
Accrued revenue
453,613
367,895
Derivative instruments
1,050
1,137
Prepaid expenses
12,423
9,591
Other current assets
6,047
17,261
Total current assets
507,546
427,534
Property and equipment:
Oil and gas properties, at cost (successful efforts method):
Unproved properties
879,483
883,170
Proved properties
14,395,680
14,540,908
Gathering systems and facilities
5,802
5,802
Other property and equipment
105,871
109,318
15,386,836
15,539,198
Less accumulated depletion, depreciation and amortization
(5,699,286 )
(5,883,318 )
Property and equipment, net
9,687,550
9,655,880
Operating leases right-of-use assets
2,549,398
2,397,054
Derivative instruments
1,296
947
Investment in unconsolidated affiliate
231,048
249,163
Other assets
33,212
35,495
Total assets
$ 13,010,050
12,766,073
Liabilities and Equity
Current liabilities:
Accounts payable
$ 62,213
39,901
Accounts payable, related parties
111,066
107,293
Accrued liabilities
402,591
312,832
Revenue distributions payable
315,932
364,053
Derivative instruments
31,792
34,019
Short-term lease liabilities
493,894
514,292
Deferred revenue, VPP
25,264
24,390
Other current liabilities
3,175
7,949
Total current liabilities
1,445,927
1,404,729
Long-term liabilities:
Long-term debt
1,489,230
1,098,669
Deferred income tax liability, net
693,341
795,816
Derivative instruments
17,233
15,635
Long-term lease liabilities
2,050,337
1,878,718
Deferred revenue, VPP
35,448
23,794
Other liabilities
62,001
64,205
Total liabilities
5,793,517
5,281,566
Commitments and contingencies
Equity:
Stockholders' equity:
Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued
—
—
Common stock, $0.01 par value; authorized - 1,000,000 shares; 311,165 and 309,869 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively
3,111
3,098
Additional paid-in capital
5,909,373
5,867,226
Retained earnings
1,109,166
1,435,298
Total stockholders' equity
7,021,650
7,305,622
Noncontrolling interests
194,883
178,885
Total equity
7,216,533
7,484,507
Total liabilities and equity
$ 13,010,050
12,766,073
9
ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss) (Unaudited)
(In thousands, except per share amounts)
Three Months Ended June 30,
2024
2025
Revenue and other:
Natural gas sales
$ 374,568
688,753
Natural gas liquids sales
489,191
480,757
Oil sales
63,458
33,700
Commodity derivative fair value gains (losses)
(5,585 )
53,409
Marketing
49,418
33,743
Amortization of deferred revenue, VPP
6,739
6,298
Other revenue and income
865
833
Total revenue
978,654
1,297,493
Operating expenses:
Lease operating
29,759
37,244
Gathering, compression, processing and transportation
663,442
701,722
Production and ad valorem taxes
41,933
34,830
Marketing
70,807
51,988
Exploration
643
648
General and administrative (including equity-based compensation expense of $17,151 and $15,855 in 2024 and 2025, respectively)
59,428
57,183
Depletion, depreciation and amortization
188,633
187,589
Impairment of property and equipment
313
6,297
Accretion of asset retirement obligations
780
942
Contract termination, loss contingency and settlements
3,009
13,596
Loss (gain) on sale of assets
(18 )
546
Other operating expense
11
25
Total operating expenses
1,058,740
1,092,610
Operating income (loss)
(80,086 )
204,883
Other income (expense):
Interest expense, net
(32,681 )
(19,954 )
Equity in earnings of unconsolidated affiliate
20,881
30,563
Loss on early extinguishment of debt
—
(729 )
Total other income (expense)
(11,800 )
9,880
Income (loss) before income taxes
(91,886 )
214,763
Income tax benefit (expense)
17,288
(48,190 )
Net income (loss) and comprehensive income (loss) including noncontrolling interests
(74,598 )
166,573
Less: net income and comprehensive income attributable to noncontrolling interests
5,208
9,988
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
$ (79,806 )
156,585
Net income (loss) per common share—basic
$ (0.26 )
0.50
Net income (loss) per common share—diluted
$ (0.26 )
0.50
Weighted average number of common shares outstanding:
Basic
310,806
310,323
Diluted
310,806
313,184
10
ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Six Months Ended June 30,
2024
2025
Cash flows provided by (used in) operating activities:
Net income (loss) including noncontrolling interests
$ (39,926 )
386,039
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation, amortization and accretion
380,664
375,822
Impairments
5,503
11,915
Commodity derivative fair value losses (gains)
(3,861 )
18,262
Gains (losses) on settled commodity derivatives
7,262
(17,371 )
Deferred income tax expense (benefit)
(11,202 )
102,475
Equity-based compensation expense
33,228
31,000
Equity in earnings of unconsolidated affiliate
(44,228 )
(59,224 )
Dividends of earnings from unconsolidated affiliate
62,569
62,628
Amortization of deferred revenue
(13,477 )
(12,528 )
Amortization of debt issuance costs and other
1,328
823
Settlement of asset retirement obligations
(1,680 )
(71 )
Contract termination, loss contingency and settlements
3,006
12,001
Loss (gain) on sale of assets
170
(29 )
Loss on early extinguishment of debt
—
3,628
Changes in current assets and liabilities:
Accounts receivable
19,067
2,763
Accrued revenue
38,354
85,718
Prepaid expenses and other current assets
6,547
(8,382 )
Accounts payable including related parties
6,616
(15,139 )
Accrued liabilities
(14,830 )
(85,528 )
Revenue distributions payable
(32,406 )
48,121
Other current liabilities
2,405
7,174
Net cash provided by operating activities
405,109
950,097
Cash flows provided by (used in) investing activities:
Additions to unproved properties
(43,571 )
(56,640 )
Drilling and completion costs
(362,228 )
(356,334 )
Additions to other property and equipment
(9,035 )
(1,580 )
Proceeds from asset sales
418
11,522
Change in other assets
291
(2,348 )
Net cash used in investing activities
(414,125 )
(405,380 )
Cash flows provided by (used in) financing activities:
Repurchases of common stock
—
(84,966 )
Repayment of senior notes
—
(141,733 )
Borrowings on Credit Facility
1,950,000
2,291,800
Repayments on Credit Facility
(1,871,200 )
(2,545,000 )
Distributions to noncontrolling interests in Martica Holdings LLC
(42,899 )
(37,481 )
Employee tax withholding for settlement of equity-based compensation awards
(26,355 )
(26,618 )
Other
(530 )
(719 )
Net cash provided by (used in) financing activities
9,016
(544,717 )
Net increase in cash and cash equivalents
—
—
Cash and cash equivalents, beginning of period
—
—
Cash and cash equivalents, end of period
$ —
—
Supplemental disclosure of cash flow information:
Cash paid during the period for interest
$ 63,512
48,043
Decrease in accounts payable and accrued liabilities for additions to property and equipment
$ (2,967 )
(29,581 )
11
The following table sets forth selected financial data for the three
months ended June 30, 2024 and 2025 (in thousands):
(Unaudited)
Three Months Ended
Amount of
June 30,
Increase
Percent
2024
2025
(Decrease)
Change
Revenue:
Natural gas sales
$ 374,568
688,753
314,185
84 %
Natural gas liquids sales
489,191
480,757
(8,434 )
(2 )%
Oil sales
63,458
33,700
(29,758 )
(47 )%
Commodity derivative fair value gains (losses)
(5,585 )
53,409
58,994
*
Marketing
49,418
33,743
(15,675 )
(32 )%
Amortization of deferred revenue, VPP
6,739
6,298
(441 )
(7 )%
Other revenue and income
865
833
(32 )
(4 )%
Total revenue
978,654
1,297,493
318,839
33 %
Operating expenses:
Lease operating
29,759
37,244
7,485
25 %
Gathering and compression
222,139
236,830
14,691
7 %
Processing
269,985
284,040
14,055
5 %
Transportation
171,318
180,852
9,534
6 %
Production and ad valorem taxes
41,933
34,830
(7,103 )
(17 )%
Marketing
70,807
51,988
(18,819 )
(27 )%
Exploration
643
648
5
1 %
General and administrative (excluding equity-based compensation)
42,277
41,328
(949 )
(2 )%
Equity-based compensation
17,151
15,855
(1,296 )
(8 )%
Depletion, depreciation and amortization
188,633
187,589
(1,044 )
(1 )%
Impairment of property and equipment
313
6,297
5,984
1,912 %
Accretion of asset retirement obligations
780
942
162
21 %
Contract termination and loss contingency
3,009
13,596
10,587
352 %
Loss (gain) on sale of assets
(18 )
546
564
*
Other operating expense
11
25
14
127 %
Total operating expenses
1,058,740
1,092,610
33,870
3 %
Operating income (loss)
(80,086 )
204,883
284,969
*
Other earnings (expenses):
Interest expense, net
(32,681 )
(19,954 )
12,727
(39 )%
Equity in earnings of unconsolidated affiliate
20,881
30,563
9,682
46 %
Loss on early extinguishment of debt
—
(729 )
(729 )
*
Total other income (expense)
(11,800 )
9,880
21,680
*
Income (loss) before income taxes
(91,886 )
214,763
306,649
*
Income tax (expense) benefit
17,288
(48,190 )
(65,478 )
*
Net income (loss) and comprehensive income (loss) including noncontrolling interests
(74,598 )
166,573
241,171
*
Less: net income and comprehensive income attributable to noncontrolling interests
5,208
9,988
4,780
92 %
Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation
$ (79,806 )
156,585
236,391
*
Adjusted EBITDAX
$ 151,402
379,464
228,062
151 %
* Not meaningful
12
The following table sets forth selected financial data for the three
months ended June 30, 2024 and 2025:
(Unaudited)
Three Months Ended
Amount of
June 30,
Increase
Percent
2024
2025
(Decrease)
Change
Production data (1) (2) :
Natural gas (Bcf)
196
203
7
4 %
C2 Ethane (MBbl)
7,811
6,924
(887 )
(11 )%
C3+ NGLs (MBbl)
10,514
10,608
94
1 %
Oil (MBbl)
952
672
(280 )
(29 )%
Combined (Bcfe)
311
312
1
*
Daily combined production (MMcfe/d)
3,420
3,430
10
*
Average prices before effects of derivative settlements (3) :
Natural gas (per Mcf)
$ 1.92
3.39
1.47
77 %
C2 Ethane (per Bbl) (4)
$ 8.42
11.34
2.92
35 %
C3+ NGLs (per Bbl)
$ 40.27
37.92
(2.35 )
(6 )%
Oil (per Bbl)
$ 66.66
50.15
(16.51 )
(25 )%
Weighted Average Combined (per Mcfe)
$ 2.98
3.85
0.87
29 %
Average realized prices after effects of derivative settlements (3) :
Natural gas (per Mcf)
$ 1.94
3.36
1.42
73 %
C2 Ethane (per Bbl) (4)
$ 8.42
11.34
2.92
35 %
C3+ NGLs (per Bbl)
$ 40.44
37.92
(2.52 )
(6 )%
Oil (per Bbl)
$ 66.50
50.15
(16.35 )
(25 )%
Weighted Average Combined (per Mcfe)
$ 3.00
3.83
0.83
28 %
Average costs (per Mcfe):
Lease operating
$ 0.10
0.12
0.02
20 %
Gathering and compression
$ 0.71
0.76
0.05
7 %
Processing
$ 0.87
0.91
0.04
5 %
Transportation
$ 0.55
0.58
0.03
5 %
Production and ad valorem taxes
$ 0.13
0.11
(0.02 )
(15 )%
Marketing expense, net
$ 0.07
0.06
(0.01 )
(14 )%
General and administrative (excluding equity-based compensation)
$ 0.14
0.13
(0.01 )
(7 )%
Depletion, depreciation, amortization and accretion
$ 0.61
0.60
(0.01 )
(2 )%
* Not meaningful
(1) Production data excludes volumes related to VPP transaction.
(2) Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate
of the equivalent energy content of the products and may not reflect their relative economic value.
(3) Average sales prices shown in the table reflect both the before and after effects of the Company’s settled commodity derivatives.
The calculation of such after effects includes gains on settlements of commodity derivatives, which do not qualify for hedge accounting
because the Company does not designate or document them as hedges for accounting purposes. Oil and NGLs production was converted at 6
Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate of the equivalent energy content of the
products and does not necessarily reflect their relative economic value.
(4) The average realized price for the three months ended June 30, 2024 and 2025 includes $0.1 million and $0.5 million, respectively,
of proceeds related to a take-or-pay contract. Excluding the effect of these proceeds, the average realized price for ethane before and
after the effects of derivatives for the three months ended June 30, 2024 and 2025 would have been $8.41 per Bbl and $11.27 per Bbl,
respectively.
13
the item shown at left
other guidance in this release
Text is the filed exhibit, verbatim.