Antero Resources Announces First Quarter 2026 Financial and Operating Results
Rhea-AI Summary
Antero Resources (NYSE: AR) reported Q1 2026 results: record net production of 3.9 Bcfe/d (13% YoY), net income of $535M, Adjusted Net Income of $357M, Adjusted EBITDAX of $723M, and Adjusted Free Cash Flow of $657M.
The company closed the HG acquisition, expects ~700 MMcfe/d annual production uplift, reduced cash production expense guidance to $2.25–2.35/Mcfe, and raised ethane premium guidance to $2.00–3.00/Bbl.
AI-generated analysis. Not financial advice.
Positive
- Record production of 3.9 Bcfe/d, +13% year-over-year
- Adjusted Free Cash Flow of $657 million in Q1 2026
- Closed HG acquisition adding 385,000 net acres
- Expected ~700 MMcfe/d annual production uplift from transactions
- Raised ethane premium guidance to $2.00–$3.00 per barrel
- Reduced full-year cash production expense guidance to $2.25–$2.35/Mcfe
Negative
- Net Debt increased to $2.665 billion as of March 31, 2026
- All-in cash expense rose to $2.64 per Mcfe in Q1 2026
- Settled commodity derivatives reduced realized per‑Mcfe by $0.48
News Market Reaction – AR
On the day this news was published, AR gained 0.64%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
AR gained 0.94% while peers were mixed: CTRA and DVN rose (1.11%, 0.79%), OVV was up slightly, and PR and EXE dipped. The reaction appears more company-specific than sector-driven.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 11 | Q4 2025 results | Positive | -3.7% | Antero Midstream reported higher 2025 earnings and 2026 guidance including HG Midstream. |
| Feb 11 | Q4 2025 results | Positive | -3.7% | Antero Resources issued Q4 2025 results and 2026 guidance after HG Energy acquisition. |
| Oct 29 | Q3 2025 results | Positive | -5.0% | Q3 2025 earnings showed 3.4 Bcfe/d production and solid free cash flow metrics. |
| Oct 29 | Q3 2025 results | Positive | -5.0% | Antero Midstream reported Q3 2025 growth in income, EBITDA and free cash flow. |
| Jul 30 | Q2 2025 results | Positive | +3.3% | Antero Midstream posted strong Q2 2025 growth and raised full-year guidance. |
Earnings-related releases have often coincided with negative next-day moves, even when operational and financial metrics were strong.
Over the past year, Antero-related earnings news has highlighted steady production growth, rising cash generation and active capital allocation. Q3 and Q4 2025 results for Antero Resources featured production around 3.4–3.5 Bcfe/d and growing free cash flow, while Antero Midstream repeatedly reported higher EBITDA and free cash flow with modest leverage. Despite these positives, four of the last five earnings-tagged events saw share price declines, framing today’s strong Q1 2026 update against a history of cautious market reactions.
Historical Comparison
In the past five earnings-tagged events, average next-day move was -2.84%. Today’s pre-news gain of 0.94% stands in contrast to that typically negative pattern.
Earnings updates have tracked Antero’s shift from ~3.4–3.5 Bcfe/d in 2025 toward full-year 4.1 Bcfe/d 2026 guidance, supported by the HG acquisition and rising free cash flow.
Regulatory & Risk Context
Antero has an effective universal shelf on Form S-3ASR filed 2026-01-12, allowing issuance of common stock, preferred stock and senior debt from time to time. The shelf has been used at least 2 times via 424B5 supplements dated 2026-01-12 and 2026-01-15 for capital raising and balance sheet purposes.
Market Pulse Summary
This announcement highlights record Q1 2026 production of 3.9 Bcfe/d, net income of $535 million, and Adjusted Free Cash Flow of $657 million, supported by the HG acquisition and cost-reduction plans. Versus prior quarters, it continues a trend of rising volumes and cash generation. Investors may track execution on lower cash costs, integration of added 385,000 net acres, and future capital decisions under the effective S-3ASR shelf while monitoring leverage and Net Debt.
Key Terms
form 10-q regulatory
adjusted free cash flow financial
adjusted ebitdax financial
net debt financial
costless collars financial
nymex henry hub financial
senior notes financial
non-gaap financial measures financial
AI-generated analysis. Not financial advice.
Highlights:
- Net production averaged a company record 3.9 Bcfe/d, an increase of
13% from the year ago period- Natural gas production averaged 2.6 Bcf/d, an increase of
21% from the year ago period - Liquids production averaged 206 MBbl/d, in line with the year ago period
- Natural gas production averaged 2.6 Bcf/d, an increase of
- Realized a pre-hedge natural gas price of
$5.57 $0.53 - Realized a pre-hedge C3+ NGL price of
$37.83 $0.94 - Net income was
$535 million $357 million - Adjusted EBITDAX was
$723 million $859 million 32% and88% compared to the prior year period, respectively - Adjusted Free Cash Flow was
$657 million - Closed HG acquisition in early February and completed the Ohio Utica Shale divestiture in late February
- Full HG quarter impact during the second quarter of 2026 is expected to result in
6% production growth and15% lower cash costs per Mcfe from the first quarter of 2026
Michael Kennedy, CEO and President of Antero Resources commented, "During the first quarter we achieved record production, which was
Mr. Kennedy continued, "Looking ahead, the recent geopolitical events have highlighted the advantages of Antero's corporate strategy. We are the largest producer exporter of NGLs in the
Brendan Krueger, CFO of Antero Resources said, "During the first quarter we closed on the HG acquisition and began integration of the new asset. The impressive operational and financial achievements mentioned above led to realizations for natural gas, NGLs and ethane all coming in ahead of expectations during the quarter. This allowed us to reduce debt related to the HG acquisition ahead of our previously communicated targets. Importantly, as a result of the transactions, we expect our net production to increase by approximately 700 MMcfe/d on an annual basis. Additionally, the HG acquisition added 385,000 net acres and 400 drilling locations, while only increasing our Net Debt by
For a discussion of the non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDAX, Adjusted Free Cash Flow and Net Debt please see "Non-GAAP Financial Measures."
Cash Cost Reduction
Antero expects cash production expense for the remainder of 2026 to be
Second Quarter and Full-Year 2026 Guidance Update
Antero expects second quarter production to average 4.1 Bcfe/d, a
2026 Initial | 2026 Revised | |||||||||
Full Year 2026 Guidance Updates | Low | High | Low | High | ||||||
Ethane Realized Price Premium vs. Mont Belvieu ($/Bbl) | ||||||||||
Cash Production Expense ($/Mcfe)(1) | ||||||||||
(1) | Includes lease operating, gathering, compression, processing and transportation expenses ("GP&T") and production and ad valorem taxes. |
Note: Any 2026 guidance items not discussed in this release are unchanged from previously stated guidance.
Natural Gas Hedge Program
The following tables detail Antero's swap and collar hedge position as of the publication of April 24, 2026. For more information on Antero's hedge portfolio, including basis hedges, please see the presentation titled "Hedges and Guidance Presentation" on the Company's website.
Swaps | Natural Gas | Weighted | ||||||||||||||||||
April – December 2026 NYMEX Henry Hub Swap | 1,300,000 | $ | 3.91 | |||||||||||||||||
2027 NYMEX Henry Hub Swap | 935,000 | $ | 3.86 | |||||||||||||||||
Weighted Average Index | ||||||||||||||||||||
Collars | Natural Gas | Floor | Ceiling Price | |||||||||||||||||
April – December 2026 NYMEX Henry Hub Costless Collars | 575,000 | $ | 3.25 | $ | 5.66 | |||||||||||||||
2027 NYMEX Henry Hub Costless Collars | 80,000 | $ | 3.52 | $ | 4.64 | |||||||||||||||
Adjusted Free Cash Flow
During the first quarter of 2026, Adjusted Free Cash Flow was
Three Months Ended | |||||||
2025 | 2026 | ||||||
Net cash provided by operating activities | $ | 457,739 | 859,058 | ||||
Less: Capital expenditures | (206,145) | (206,101) | |||||
Less: Distributions to non-controlling interests in Martica | (15,969) | (17,650) | |||||
Plus: Transaction expense | — | 22,144 | |||||
Adjusted Free Cash Flow | $ | 235,625 | 657,451 | ||||
Changes in Working Capital | 101,019 | (224,134) | |||||
Adjusted Free Cash Flow before Changes in Working Capital | $ | 336,644 | 433,317 | ||||
First Quarter 2026 Financial Results
Net daily natural gas equivalent production in the first quarter averaged 3.9 Bcfe/d, including 206 MBbl/d of liquids. Antero's average realized natural gas price before hedges was
The following table details average net production and average realized prices for the three months ended March 31, 2026:
Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||
Natural | Oil (Bbl/d) | C3+ NGLs | Ethane | Combined | ||||||||||||||||||||||||||||
Average Net Production | 2,617 | 9,067 | 120,800 | 75,956 | 3,852 | |||||||||||||||||||||||||||
Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||
Combined | ||||||||||||||||||||||||||||||||
Natural | Natural Gas | |||||||||||||||||||||||||||||||
Gas | Oil | C3+ NGLs | Ethane | Equivalent | ||||||||||||||||||||||||||||
Average Realized Prices | ($/Mcf) | ($/Bbl) | ($/Bbl) | ($/Bbl) | ($/Mcfe) | |||||||||||||||||||||||||||
Average realized prices before settled derivatives | $ | 5.57 | 57.22 | 37.83 | 13.51 | 5.37 | ||||||||||||||||||||||||||
Index price (1) | $ | 5.04 | 71.93 | 36.89 | 9.87 | 5.04 | ||||||||||||||||||||||||||
Premium / (Discount) to Index price | $ | 0.53 | (14.71) | 0.94 | 3.64 | 0.33 | ||||||||||||||||||||||||||
Settled commodity derivatives | $ | (0.71) | — | 0.07 | — | (0.48) | ||||||||||||||||||||||||||
Average realized prices after settled derivatives | $ | 4.86 | 57.22 | 37.90 | 13.51 | 4.89 | ||||||||||||||||||||||||||
Premium / (Discount) to Index price | $ | (0.18) | (14.71) | 1.01 | 3.64 | (0.15) | ||||||||||||||||||||||||||
(1) | Please see Antero's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, 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
Operating Results
Antero placed 20 Marcellus wells to sales during the first quarter with an average lateral length of 11,652 feet. Thirteen of these wells have been on line for approximately 60 days with an average rate per well of 25 MMcfe/d, including 1,457 Bbl/d of liquids per well assuming
- Averaged 13.8 stages per day during the quarter, an increase from 13.4 completion stages per day average in 2025
- Established a company record for drilling days per well of just under 9 days, a
9% improvement from the average in 2025 - Turned-in-line first HG pad in late April, a 6-well pad located in the liquids-rich window with total lateral length drilled of 110,000 feet
First Quarter 2026 Capital Investment
Antero's drilling and completion capital expenditures for the three months ended March 31, 2026 were
Conference Call
A conference call is scheduled on Thursday, April 30, 2026 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 (
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):
Three Months Ended March 31, | |||||||
2025 | 2026 | ||||||
Net income and comprehensive income attributable to Antero Resources Corporation | $ | 207,971 | 535,216 | ||||
Net income and comprehensive income attributable to noncontrolling interests | 11,495 | 12,997 | |||||
Unrealized commodity derivative (gains) losses | 60,654 | (200,158) | |||||
Amortization of deferred revenue, VPP | (6,230) | (5,795) | |||||
Gain on sale of assets | (575) | (45,950) | |||||
Impairment of property and equipment | 5,618 | 948 | |||||
Equity-based compensation | 15,145 | 11,733 | |||||
Loss on early extinguishment of debt | 2,899 | 6,742 | |||||
Equity in earnings of unconsolidated affiliate | (28,661) | (30,118) | |||||
Contract termination and loss contingency | (1,308) | 12,035 | |||||
Transaction expense | — | 22,144 | |||||
Tax effect of reconciling items (1) | (10,387) | 50,240 | |||||
256,621 | 370,034 | ||||||
Martica adjustments (2) | (9,963) | (12,997) | |||||
Adjusted Net Income | $ | 246,658 | 357,037 | ||||
Diluted Weighted Average Common Shares Outstanding (3) | 314,798 | 311,426 | |||||
(1) | Deferred taxes were approximately |
(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 for the three months ended March 31, 2025 were 0.3 million. |
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, | March 31, | ||||||
2025 | 2026 | ||||||
Credit Facility | $ | 438,600 | 72,500 | ||||
Term Loan | — | 1,264,000 | |||||
365,353 | — | ||||||
600,000 | 600,000 | ||||||
— | 750,000 | ||||||
Unamortized debt issuance costs | (5,977) | (21,703) | |||||
Total long-term debt | $ | 1,397,976 | 2,664,797 | ||||
Less: Cash, cash equivalents and restricted cash | (210,000) | — | |||||
Net Debt | $ | 1,187,976 | 2,664,797 | ||||
Adjusted Free Cash Flow
Adjusted 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 Adjusted 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, plus transaction expenses.
The Company has not provided projected net cash provided by operating activities or a reconciliation of Adjusted 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.
Adjusted 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 Adjusted 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 Adjusted Free Cash Flow reported by different companies. Adjusted 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.
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 March 31, 2025 and 2026 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these adjustments are disclosed in the table below as Martica related adjustments.
Three Months Ended March 31, | |||||||
2025 | 2026 | ||||||
Reconciliation of net income to Adjusted EBITDAX: | |||||||
Net income and comprehensive income attributable to Antero Resources Corporation | $ | 207,971 | 535,216 | ||||
Net income and comprehensive income attributable to noncontrolling interests | 11,495 | 12,997 | |||||
Unrealized commodity derivative (gains) losses | 60,654 | (200,158) | |||||
Amortization of deferred revenue, VPP | (6,230) | (5,795) | |||||
Gain on sale of assets | (575) | (45,950) | |||||
Interest expense, net | 23,368 | 36,963 | |||||
Loss on early extinguishment of debt | 2,899 | 6,742 | |||||
Income tax expense | 54,400 | 145,508 | |||||
Depletion, depreciation, amortization and accretion | 187,291 | 207,302 | |||||
Impairment of property and equipment | 5,618 | 948 | |||||
Exploration expense | 668 | 792 | |||||
Equity-based compensation expense | 15,145 | 11,733 | |||||
Equity in earnings of unconsolidated affiliate | (28,661) | (30,118) | |||||
Dividends from unconsolidated affiliate | 31,314 | 31,314 | |||||
Contract termination, loss contingency and settlements | (1,308) | 12,035 | |||||
Transaction expense and other | 1,771 | 22,179 | |||||
565,820 | 741,708 | ||||||
Martica related adjustments (1) | (16,392) | (18,290) | |||||
Adjusted EBITDAX | $ | 549,428 | 723,418 | ||||
Reconciliation of our Adjusted EBITDAX to net cash provided by operating | |||||||
Adjusted EBITDAX | $ | 549,428 | 723,418 | ||||
Martica related adjustments (1) | 16,392 | 18,290 | |||||
Interest expense, net | (23,368) | (36,963) | |||||
Amortization of debt issuance costs and other | 466 | 420 | |||||
Exploration expense | (668) | (792) | |||||
Changes in current assets and liabilities | (81,748) | 179,857 | |||||
Contract termination, loss contingency and settlements | — | (1,198) | |||||
Transaction expense and other | (2,763) | (23,974) | |||||
Net cash provided by operating activities | $ | 457,739 | 859,058 | ||||
(1) | Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. |
Twelve | |||
Months Ended | |||
March 31, 2026 | |||
Reconciliation of net income to Adjusted EBITDAX: | |||
Net income and comprehensive income attributable to Antero Resources Corporation | $ | 961,663 | |
Net income and comprehensive income attributable to noncontrolling interests | 41,651 | ||
Unrealized commodity derivative gains | (388,929) | ||
Amortization of deferred revenue, VPP | (24,829) | ||
Gain on sale of assets | (45,641) | ||
Interest expense, net | 97,277 | ||
Loss on early extinguishment of debt | 7,471 | ||
Income tax expense | 306,975 | ||
Depletion, depreciation, amortization, and accretion | 773,578 | ||
Impairment of property and equipment | 24,688 | ||
Exploration | 3,114 | ||
Equity-based compensation expense | 57,400 | ||
Equity in earnings of unconsolidated affiliate | (99,941) | ||
Dividends from unconsolidated affiliate | 125,255 | ||
Contract termination, loss contingency and settlements | 41,355 | ||
Transaction expense and other | 26,948 | ||
1,908,035 | |||
Martica related adjustments (1) | (64,768) | ||
Adjusted EBITDAX | $ | 1,843,267 | |
(1) | Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. |
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 | ||||||
2025 | 2026 | |||||
Drilling and completion costs (cash basis) | $ | 175,134 | 184,551 | |||
Change in accrued capital costs | (17,982) | 37,073 | ||||
Adjusted drilling and completion costs (accrual basis) | $ | 157,152 | 221,624 | |||
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, our ability to integrate acquired assets and achieve the intended operational, financial and strategic benefits from any such transactions, 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 events, including the conflicts in
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, risks associated with the successful integration and future performance of acquired assets and operations, 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
ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
December 31, | March 31, | ||||||
2025 | 2026 | ||||||
Assets | |||||||
Current assets: | |||||||
Restricted cash | $ | 210,000 | — | ||||
Accounts receivable | 33,773 | 32,449 | |||||
Accrued revenue | 473,453 | 454,199 | |||||
Derivative instruments | 68,913 | 163,386 | |||||
Prepaid expenses | 14,554 | 13,621 | |||||
Current assets held for sale | 20,269 | — | |||||
Other current assets | 10,818 | 14,273 | |||||
Total current assets | 831,780 | 677,928 | |||||
Property and equipment: | |||||||
Oil and gas properties, at cost (successful efforts method): | |||||||
Unproved properties | 796,705 | 1,110,301 | |||||
Proved properties | 14,049,003 | 16,936,783 | |||||
Other property and equipment | 113,020 | 118,728 | |||||
14,958,728 | 18,165,812 | ||||||
Less accumulated depletion, depreciation and amortization | (5,753,416) | (5,956,634) | |||||
Property and equipment, net | 9,205,312 | 12,209,178 | |||||
Operating leases right-of-use assets | 2,132,509 | 2,090,310 | |||||
Derivative instruments | 12,524 | 50,812 | |||||
Investment in unconsolidated affiliate | 245,653 | 253,164 | |||||
Assets held for sale | 754,737 | — | |||||
Other assets | 62,892 | 68,054 | |||||
Total assets | $ | 13,245,407 | 15,349,446 | ||||
Liabilities and Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 49,514 | 77,965 | ||||
Accounts payable, related parties | 101,454 | 138,084 | |||||
Accrued liabilities | 338,847 | 372,850 | |||||
Revenue distributions payable | 384,777 | 521,927 | |||||
Derivative instruments | — | 5,143 | |||||
Short-term lease liabilities | 516,256 | 536,304 | |||||
Deferred revenue, VPP | 23,502 | 23,647 | |||||
Current liabilities held for sale | 62,310 | — | |||||
Other current liabilities | 26,653 | 17,262 | |||||
Total current liabilities | 1,503,313 | 1,693,182 | |||||
Long-term liabilities: | |||||||
Long-term debt | 1,397,976 | 2,664,797 | |||||
Deferred income tax liability, net | 907,306 | 1,141,934 | |||||
Derivative instruments | — | 7,380 | |||||
Long-term lease liabilities | 1,612,288 | 1,549,564 | |||||
Deferred revenue, VPP | 11,946 | 6,006 | |||||
Liabilities held for sale | 39,789 | — | |||||
Other liabilities | 57,140 | 63,370 | |||||
Total liabilities | 5,529,758 | 7,126,233 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Stockholders' equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 3,085 | 3,098 | |||||
Additional paid-in capital | 5,865,447 | 5,842,435 | |||||
Retained earnings | 1,682,295 | 2,217,511 | |||||
Total stockholders' equity | 7,550,827 | 8,063,044 | |||||
Noncontrolling interests | 164,822 | 160,169 | |||||
Total equity | 7,715,649 | 8,223,213 | |||||
Total liabilities and equity | $ | 13,245,407 | 15,349,446 | ||||
ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) | |||||||
Three Months Ended March 31, | |||||||
2025 | 2026 | ||||||
Revenue and other: | |||||||
Natural gas sales | $ | 780,005 | 1,311,476 | ||||
Natural gas liquids sales | 561,432 | 503,649 | |||||
Oil sales | 50,335 | 46,695 | |||||
Commodity derivative fair value gains (losses) | (71,671) | 35,023 | |||||
Marketing | 25,558 | 41,661 | |||||
Amortization of deferred revenue, VPP | 6,230 | 5,795 | |||||
Other revenue and income | 818 | 827 | |||||
Total revenue | 1,352,707 | 1,945,126 | |||||
Operating expenses: | |||||||
Lease operating | 33,986 | 44,529 | |||||
Gathering, compression, processing and transportation | 695,017 | 789,106 | |||||
Production and ad valorem taxes | 55,299 | 80,997 | |||||
Marketing | 42,770 | 62,553 | |||||
Exploration | 668 | 792 | |||||
General and administrative (including equity-based compensation expense of | 62,445 | 63,340 | |||||
Depletion, depreciation and amortization | 186,352 | 206,239 | |||||
Impairment of property and equipment | 5,618 | 948 | |||||
Accretion of asset retirement obligations | 939 | 1,063 | |||||
Contract termination, loss contingency and settlements | (1,308) | 12,035 | |||||
Gain on sale of assets | (575) | (45,950) | |||||
Other operating expense | 24 | 22 | |||||
Total operating expenses | 1,081,235 | 1,215,674 | |||||
Operating income | 271,472 | 729,452 | |||||
Other income (expense): | |||||||
Interest expense, net | (23,368) | (36,963) | |||||
Equity in earnings of unconsolidated affiliate | 28,661 | 30,118 | |||||
Loss on early extinguishment of debt | (2,899) | (6,742) | |||||
Transaction expense | — | (22,144) | |||||
Total other income (expense) | 2,394 | (35,731) | |||||
Income before income taxes | 273,866 | 693,721 | |||||
Income tax expense | (54,400) | (145,508) | |||||
Net income and comprehensive income including noncontrolling interests | 219,466 | 548,213 | |||||
Less: net income and comprehensive income attributable to noncontrolling interests | 11,495 | 12,997 | |||||
Net income and comprehensive income attributable to Antero Resources Corporation | $ | 207,971 | 535,216 | ||||
Net income per common share—basic | $ | 0.67 | 1.73 | ||||
Net income per common share—diluted | $ | 0.66 | 1.72 | ||||
Weighted average number of common shares outstanding: | |||||||
Basic | 311,328 | 308,933 | |||||
Diluted | 314,798 | 311,426 | |||||
ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | |||||||
Three Months Ended March 31, | |||||||
2025 | 2026 | ||||||
Cash flows provided by (used in) operating activities: | |||||||
Net income including noncontrolling interests | $ | 219,466 | 548,213 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depletion, depreciation, amortization and accretion | 187,291 | 207,302 | |||||
Impairment of property and equipment | 5,618 | 948 | |||||
Commodity derivative fair value losses (gains) | 71,671 | (35,023) | |||||
Losses on settled commodity derivatives | (11,017) | (165,135) | |||||
Deferred income tax expense | 53,462 | 143,820 | |||||
Equity-based compensation expense | 15,145 | 11,733 | |||||
Equity in earnings of unconsolidated affiliate | (28,661) | (30,118) | |||||
Dividends of earnings from unconsolidated affiliate | 31,314 | 31,314 | |||||
Amortization of deferred revenue | (6,230) | (5,795) | |||||
Amortization of debt issuance costs and other | 466 | 420 | |||||
Settlement of asset retirement obligations | (54) | (107) | |||||
Contract termination, loss contingency and settlements | (1,308) | 10,837 | |||||
Gain on sale of assets | (575) | (45,950) | |||||
Loss on early extinguishment of debt | 2,899 | 6,742 | |||||
Changes in current assets and liabilities: | |||||||
Accounts receivable | (5,972) | 1,302 | |||||
Accrued revenue | (59,769) | 49,149 | |||||
Prepaid expenses and other current assets | (2,190) | 4,596 | |||||
Accounts payable including related parties | 11,995 | 60,720 | |||||
Accrued liabilities | (86,552) | (46,571) | |||||
Revenue distributions payable | 48,286 | 120,021 | |||||
Other current liabilities | 12,454 | (9,360) | |||||
Net cash provided by operating activities | 457,739 | 859,058 | |||||
Cash flows provided by (used in) investing activities: | |||||||
Additions to unproved properties | (30,407) | (16,922) | |||||
Drilling and completion costs | (175,134) | (184,551) | |||||
Additions to other property and equipment | (604) | (4,628) | |||||
Acquisition of HG Production | — | (2,794,308) | |||||
Acquisitions of oil and gas properties | — | (7,631) | |||||
Proceeds from asset sales | 575 | 737,123 | |||||
Change in other assets | (2,321) | (12,569) | |||||
Net cash used in investing activities | (207,891) | (2,283,486) | |||||
Cash flows provided by (used in) financing activities: | |||||||
Issuance of senior notes | — | 750,000 | |||||
Repayment of senior notes | (118,046) | (369,997) | |||||
Borrowings on Term Loan | — | 1,500,000 | |||||
Repayments on Term Loan | — | (236,000) | |||||
Borrowings on Credit Facility | 1,308,400 | 2,079,800 | |||||
Repayments on Credit Facility | (1,397,500) | (2,445,900) | |||||
Repurchases of common stock | (10,094) | — | |||||
Payment of debt issuance costs | — | (10,838) | |||||
Distributions to noncontrolling interests in Martica Holdings LLC | (15,969) | (17,650) | |||||
Employee tax withholding for settlement of equity-based compensation awards | (16,298) | (34,732) | |||||
Other | (341) | (255) | |||||
Net cash provided by (used in) financing activities | (249,848) | 1,214,428 | |||||
Net decrease in cash, cash equivalents and restricted cash | — | (210,000) | |||||
Cash, cash equivalents and restricted cash, beginning of period | — | 210,000 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | — | — | ||||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for interest | $ | 43,078 | 50,616 | ||||
Increase (decrease) in accounts payable, accrued liabilities and other current liabilities for additions to property | $ | (19,271) | 44,277 | ||||
Increase in accounts payable, related parties for acquisition of HG Production | $ | — | 10,809 | ||||
The following table sets forth selected financial data for the three months ended March 31, 2025 and 2026 (in thousands):
Three Months Ended | Amount of | |||||||||||
March 31, | Increase | Percent | ||||||||||
2025 | 2026 | (Decrease) | Change | |||||||||
Operating revenues and other: | ||||||||||||
Natural gas sales | $ | 780,005 | 1,311,476 | 531,471 | 68 | % | ||||||
Natural gas liquids sales | 561,432 | 503,649 | (57,783) | (10) | % | |||||||
Oil sales | 50,335 | 46,695 | (3,640) | (7) | % | |||||||
Commodity derivative fair value gains (losses) | (71,671) | 35,023 | 106,694 | * | ||||||||
Marketing | 25,558 | 41,661 | 16,103 | 63 | % | |||||||
Amortization of deferred revenue, VPP | 6,230 | 5,795 | (435) | (7) | % | |||||||
Other revenue and income | 818 | 827 | 9 | 1 | % | |||||||
Total revenue | 1,352,707 | 1,945,126 | 592,419 | 44 | % | |||||||
Operating expenses: | ||||||||||||
Lease operating | 33,986 | 44,529 | 10,543 | 31 | % | |||||||
Gathering and compression | 236,134 | 269,113 | 32,979 | 14 | % | |||||||
Processing | 261,155 | 287,768 | 26,613 | 10 | % | |||||||
Transportation | 197,728 | 232,225 | 34,497 | 17 | % | |||||||
Production and ad valorem taxes | 55,299 | 80,997 | 25,698 | 46 | % | |||||||
Marketing | 42,770 | 62,553 | 19,783 | 46 | % | |||||||
Exploration | 668 | 792 | 124 | 19 | % | |||||||
General and administrative (excluding equity-based compensation) | 47,300 | 51,607 | 4,307 | 9 | % | |||||||
Equity-based compensation | 15,145 | 11,733 | (3,412) | (23) | % | |||||||
Depletion, depreciation and amortization | 186,352 | 206,239 | 19,887 | 11 | % | |||||||
Impairment of property and equipment | 5,618 | 948 | (4,670) | (83) | % | |||||||
Accretion of asset retirement obligations | 939 | 1,063 | 124 | 13 | % | |||||||
Contract termination, loss contingency and settlements | (1,308) | 12,035 | 13,343 | * | ||||||||
Gain on sale of assets | (575) | (45,950) | (45,375) | 7,891 | % | |||||||
Other expense | 24 | 22 | (2) | (8) | % | |||||||
Total operating expenses | 1,081,235 | 1,215,674 | 134,439 | 12 | % | |||||||
Operating income | 271,472 | 729,452 | 457,980 | 169 | % | |||||||
Other income (expense): | ||||||||||||
Interest expense, net | (23,368) | (36,963) | (13,595) | 58 | % | |||||||
Equity in earnings of unconsolidated affiliate | 28,661 | 30,118 | 1,457 | 5 | % | |||||||
Loss on early extinguishment of debt | (2,899) | (6,742) | (3,843) | 133 | % | |||||||
Transaction expenses | — | (22,144) | (22,144) | * | ||||||||
Total other income (expense) | 2,394 | (35,731) | (38,125) | * | ||||||||
Income before income taxes | 273,866 | 693,721 | 419,855 | 153 | % | |||||||
Income tax expense | (54,400) | (145,508) | (91,108) | 167 | % | |||||||
Net income and comprehensive income including noncontrolling interests | 219,466 | 548,213 | 328,747 | 150 | % | |||||||
Less: net income and comprehensive income attributable to noncontrolling interests | 11,495 | 12,997 | 1,502 | 13 | % | |||||||
Net income and comprehensive income attributable to Antero Resources | 207,971 | 535,216 | 327,245 | 157 | % | |||||||
Adjusted EBITDAX | $ | 549,428 | 723,418 | 173,990 | 32 | % | ||||||
* Not meaningful |
The following table sets forth selected financial data for the three months ended March 31, 2025 and 2026:
Three Months Ended | Amount of | ||||||||||||
March 31, | Increase | Percent | |||||||||||
2025 | 2026 | (Decrease) | Change | ||||||||||
Production data (1) (2): | |||||||||||||
Natural gas (Bcf) | 195 | 236 | 41 | 21 | % | ||||||||
C2 Ethane (MBbl) | 7,442 | 6,836 | (606) | (8) | % | ||||||||
C3+ NGLs (MBbl) | 10,229 | 10,872 | 643 | 6 | % | ||||||||
Oil (MBbl) | 852 | 816 | (36) | (4) | % | ||||||||
Combined (Bcfe) | 306 | 347 | 41 | 13 | % | ||||||||
Daily combined production (MMcfe/d) | 3,397 | 3,852 | 455 | 13 | % | ||||||||
Average prices before effects of derivative settlements (3): | |||||||||||||
Natural gas (per Mcf) | $ | 4.01 | 5.57 | 1.56 | 39 | % | |||||||
C2 Ethane (per Bbl) | $ | 12.70 | 13.51 | 0.81 | 6 | % | |||||||
C3+ NGLs (per Bbl) | $ | 45.65 | 37.83 | (7.82) | (17) | % | |||||||
Oil (per Bbl) | $ | 59.08 | 57.22 | (1.86) | (3) | % | |||||||
Weighted Average Combined (per Mcfe) | $ | 4.55 | 5.37 | 0.82 | 18 | % | |||||||
Average realized prices after effects of derivative settlements (3): | |||||||||||||
Natural gas (per Mcf) | $ | 3.95 | 4.86 | 0.91 | 23 | % | |||||||
C2 Ethane (per Bbl) | $ | 12.70 | 13.51 | 0.81 | 6 | % | |||||||
C3+ NGLs (per Bbl) | $ | 45.65 | 37.90 | (7.75) | (17) | % | |||||||
Oil (per Bbl) | $ | 58.97 | 57.22 | (1.75) | (3) | % | |||||||
Weighted Average Combined (per Mcfe) | $ | 4.52 | 4.89 | 0.37 | 8 | % | |||||||
Average costs (per Mcfe): | |||||||||||||
Lease operating | $ | 0.11 | 0.13 | 0.02 | 18 | % | |||||||
Gathering and compression | $ | 0.77 | 0.78 | 0.01 | 1 | % | |||||||
Processing | $ | 0.85 | 0.83 | (0.02) | (2) | % | |||||||
Transportation | $ | 0.65 | 0.67 | 0.02 | 3 | % | |||||||
Production and ad valorem taxes | $ | 0.18 | 0.23 | 0.05 | 28 | % | |||||||
Marketing expense, net | $ | 0.06 | 0.06 | — | * | ||||||||
General and administrative (excluding equity-based compensation) | $ | 0.15 | 0.15 | — | * | ||||||||
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 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. |
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SOURCE Antero Resources Corporation