Antero Resources Announces Third Quarter 2026 Financial and Operating Results

Antero expects its development plan to deliver high single digit production growth in 2027 despite near-term curtailments.

Rhea-AI Summary

Antero Resources (NYSE: AR) reported third-quarter 2026 net income of $367 million alongside record production and lower cash production expense. Production exceeded 4.2 billion cubic feet equivalent per day, up 23% year over year. Operating cash flow was $575 million; adjusted free cash flow, a non-GAAP measure, rose 137% to $215 million. Cash production expense fell to $2.05 per thousand cubic feet equivalent from $2.44 a year earlier.

Antero repurchased 1.6 million shares for approximately $56 million and completed premium-priced supply contracts covering 265 million cubic feet per day. The company expects fourth-quarter production of approximately 4.3 billion cubic feet equivalent per day, reflecting estimated curtailments of 15–20 billion cubic feet due to low regional pricing. Fourth-quarter drilling and completion spending is expected at $325–$350 million, within a targeted $1.2 billion 2026 budget.

29 points · 0 major

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Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter net income rose to $367 million from approximately $76.2 million a year earlier.
• Moderate pointRecord production exceeded 4.2 billion cubic feet equivalent daily, up 23% year over year.
• Moderate pointOperating cash flow reached $575 million, versus approximately $310.1 million in third-quarter 2025.
• Moderate pointAdjusted free cash flow of $215 million increased 137% year over year; non-GAAP measure.
• Moderate pointCash production expense fell 16% to $2.05 per thousand cubic feet equivalent, below guidance.
• Moderate pointUnhedged adjusted earnings margin rose 27% to $1.28 per thousand cubic feet equivalent from $1.01.
• Moderate pointPremium-priced supply contracts cover 265 million cubic feet daily at Clarington, Ohio.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Antero targets optimization exceeding 1 billion cubic feet daily, expected to add $50 million annualized free cash flow.
• Moderate point85% of overriding royalty distributions reverted July 1, 2026; estimated annualized free cash flow benefit: approximately $60 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Antero expects $140 million of its $300 million margin-enhancement target by mid-2027.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter production guidance is approximately 4.3 billion cubic feet equivalent daily.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Antero expects high single digit production growth in 2027 from its development plan.
• Moderate pointJuly acquisition added approximately 125 million cubic feet equivalent daily and 3,500 net undeveloped acres supporting 15 locations.

16 minor points

• Minor pointAdjusted net income reached $256 million, versus approximately $48.2 million a year earlier; non-GAAP measure.
• Minor pointAdjusted EBITDAX of $634 million, an adjusted earnings measure, increased 99% year over year; non-GAAP.
• Minor pointNet marketing expense fell to $0.04 per thousand cubic feet equivalent from $0.05 a year earlier.
• Minor pointShare repurchases totaled approximately $56 million for 1.6 million shares, averaging $34.15 per share.
• Minor point. Forward-looking: it has not happened yet and may not happen.Approximately $821 million remains under the repurchase program; Antero expects continued opportunistic purchases.
• Minor pointTransportation optimization agreements cover approximately 400 million cubic feet daily, adding $20 million annualized free cash flow.
• Minor point. Forward-looking: it has not happened yet and may not happen.Production-payment expiration on August 1, 2027 is expected to restore approximately 35 million cubic feet daily.
• Minor point. Forward-looking: it has not happened yet and may not happen.Production-payment expiration has an estimated annualized free cash flow benefit of approximately $30 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter development plans add two pads: one liquids-rich and one lean.
• Minor point22 Marcellus wells entered sales, with an average lateral length of 17,600 feet.
• Minor pointFive wells online approximately 60 days averaged 30 million cubic feet equivalent daily per well.
• Minor pointLongest completed lateral reached approximately 25,000 feet; pad daily production set a 273-million-cubic-foot company record.
• Minor pointDrilling speed averaged under 4 days per 10,000 feet across an entire pad, a company record.
• Minor pointHG asset drilling days per well decreased 47% compared with the prior operator.
• Minor pointHG asset completion stages per day increased 280% compared with the prior operator.
• Minor pointThird-quarter land investment added approximately 8,000 net acres, representing 35 incremental net drilling locations.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter curtailments are estimated at 15–20 billion cubic feet equivalent, driven by low regional pricing.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter drilling and completion spending is expected at $325–$350 million; targeted 2026 budget: $1.2 billion.
• Moderate pointJuly West Virginia property acquisition cost approximately $315 million. 2.4% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter gas prices are expected $0.15–$0.25 below NYMEX per thousand cubic feet.
• Minor pointThird-quarter production curtailments totaled approximately 10 billion cubic feet equivalent.

5 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter cash production expense is expected at $2.10–$2.20 per thousand cubic feet equivalent.
• Minor pointThird-quarter drilling and completion spending totaled $324 million, alongside $35 million invested in land.
• Minor pointThird-quarter natural gas realized $2.63 before hedges, $0.32 below its index per thousand cubic feet.
• Minor pointThird-quarter oil realized $70.17 per barrel, $15.62 below its index.
• Minor pointThird-quarter heavier natural gas liquids realized $42.18 before hedges, $2.30 below their index per barrel.

News Explained

Antero expects to achieve $140 million of its $300 million margin-enhancement target by mid-2027 through estimated annualized free-cash-flow increases. The estimates include $50 million from transport optimization, $60 million from ORRI reversion (85% of distributions had reverted by July 1, 2026), and $30 million when VPP volumes revert at its August 1, 2027 expiration.

Key Figures

Net production: Over 4.2 Bcfe/d; up 23% Net income: $367 million Adjusted EBITDAX: $634 million; up 99% +5 more

Net production

Over 4.2 Bcfe/d; up 23%

Q3 2026; company record, year over year

Net income

$367 million

Q3 2026

Adjusted EBITDAX

$634 million; up 99%

Q3 2026, Non-GAAP; compared with the prior year period

Adjusted Free Cash Flow

$215 million; up 137%

Q3 2026, Non-GAAP; compared with the year-ago period

Cash operating costs

$2.05 per Mcfe; down 16%

Q3 2026; compared with the year-ago period

Margin enhancement target

$140 million of a $300 million target

Expected by mid-2027

Share repurchases

1.6 million shares for approximately $56 million

During Q3 2026

Drilling and completion capital budget

$325 million to $350 million

Q4 2026 guidance

Previous Earnings Reports

1 past event · Latest: Jul 29

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1. Jul 29

   Quarterly earnings

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   Reported Q2 production growth, earnings, cash flow and lower operating costs.

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Key Terms

non-gaap, ebitdax, overriding royalty interest, volumetric production payment

4 terms

non-gaap financial

"Adjusted EBITDAX was $634 million (Non-GAAP)"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

ebitdax financial

"Adjusted EBITDAX was $634 million (Non-GAAP)"

EBITDAX is a measure of a company's operating profit that adds back interest, taxes, depreciation, amortization and exploration costs to net income. Think of it as the cash-generating power of a business before financing, tax effects, non-cash accounting charges and the variable cost of searching for new reserves—useful for comparing companies whose exploration spending or accounting treatments differ. Investors use it to assess core operating performance and short-term cash flow potential without those distortions.

overriding royalty interest financial

"The Overriding Royalty Interest ("ORRI") sold in 2020 achieved its return hurdles"

An overriding royalty interest is a contractual right to receive a fixed percentage of production revenue from an oil, gas, or mineral lease without paying operating or development costs. Think of it like owning a slice of a bakery’s daily sales — you get a steady cut of revenue but don’t own the oven or pay the bills. For investors, it means predictable cash flow exposure to commodity prices and production levels with lower operational risk but limited upside from cost reductions.

volumetric production payment financial

"The Volumetric Production Payment ("VPP") transaction sold in 2020 expires"

A volumetric production payment (VPP) is a financing agreement in which an investor pays an upfront sum in exchange for the right to receive a fixed physical quantity of a company’s future production (for example barrels of oil, tonnes of ore, or doses of a drug) or the cash equivalent of that quantity until that volume is delivered. Unlike a percentage royalty or streaming deal, a VPP entitles the buyer to a specified volume (not a fixed share of revenue) and ends when the contracted volume has been delivered or a defined term expires; the seller retains ownership and operating control while receiving immediate capital. VPPs are often structured with price or quality adjustments, delivery schedules, and limits on duration, and they are treated legally and accounting-wise closer to a financed sale of future production rather than an ongoing profit-sharing arrangement.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DENVER, Oct. 28, 2026 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its third quarter 2026 financial and operating results. The relevant consolidated financial statements are included in Antero Resources' Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. 

Highlights:

• Net production was a company record at over 4.2 Bcfe/d, an increase of 23% from the year ago period
• Net income was $367 million and Adjusted Net Income was $256 million (Non-GAAP)
• Adjusted EBITDAX was $634 million (Non-GAAP), an increase of 99% compared to the prior year period
• Net cash provided by operating activities was $575 million
• Adjusted Free Cash Flow was $215 million (Non-GAAP), an increase of 137% compared to the year ago period
• Total cash operating costs were below the low end of the guidance range at $2.05 per Mcfe, a decrease of $0.39 per Mcfe, or 16%, from the year ago period
• Purchased 1.6 million shares for approximately $56 million
• Completed longest horizontal lateral length in company history at approximately 25,000 feet

Strategic Updates:

• Completed 265 MMcf/d of premium priced supply contracts tied to growing in-basin demand at Clarington, Ohio
• Optimized 400 MMcf/d of firm transportation in the third quarter of 2026; targeting 1 Bcf/d of optimization in 2027

Michael Kennedy, CEO and President of Antero Resources commented, "It has been a remarkable year for Antero. Over the last twelve months we have grown our net production by nearly 1 Bcfe/d though accretive transactions and efficiency gains. We also reduced our cost structure by approximately $0.40 per Mcfe, driving higher margins for our business. We accomplished all of this while also reducing our share count by over 5 million shares and maintaining leverage at approximately 1.0x. We believe our business strategy of product diversity, reduced cost structure and prudent hedging will decrease earnings volatility and drive peer-leading Free Cash Flow per share growth."

Brendan Krueger, CFO of Antero Resources said, "In just the first year of our margin enhancement initiative, we have made substantial progress. For the third quarter of 2026, we reduced our cash cost structure to $2.05 per Mcfe, compared to $2.44 per Mcfe in the third quarter of 2025, a decrease of $0.39 per Mcfe. This drove a 27% improvement in our unhedged EBITDAX margin to $1.28 per Mcfe for the third quarter of 2026 from $1.01 per Mcfe in the third quarter of 2025. This increase in margin was achieved despite NYMEX natural gas prices declining 4%."

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."

Margin Enhancement Update

During the third quarter Antero began executing on its margin enhancement initiatives. Antero expects to achieve $140 million of its $300 million target by mid-2027. This includes $50 million through the optimization of its firm transportation portfolio, $60 million from the reversion of the Overriding Royalty Interest and $30 million from the expiration of the Volumetric Production Payment.

Natural Gas Firm Transportation Optimization - During the third quarter, driven by significant end-user demand, Antero entered into firm transportation optimization agreements related to approximately 400 MMcf/d of natural gas. The impact of these agreements is a $20 million annualized increase of Free Cash Flow. Antero is commencing a formal process in the fourth quarter of 2026, targeting the optimization of over 1 Bcf/d of natural gas, which is expected to result in an annualized Free Cash Flow increase of $50 million.

Overriding Royalty Interests Reversion – The Overriding Royalty Interest ("ORRI") sold in 2020 achieved its return hurdles in the second quarter of 2026. As of July 1, 2026, 85% of the ORRI distributions have reverted to Antero. The estimated impact of the reversion on annualized Free Cash Flow is approximately $60 million.

Volumetric Production Payment - The Volumetric Production Payment ("VPP") transaction sold in 2020 expires on August 1, 2027. At expiration, VPP volumes will revert to Antero, resulting in an increase in net production of approximately 35 MMcf/d of natural gas. The estimated impact of the reversion on annualized Free Cash Flow is approximately $30 million.

Regional Natural Gas Sales Agreements

In addition to the progress made on the $300 million margin enhancement initiatives detailed above, Antero entered into 265 MMcf/d of supply contracts that support the growing in-basin demand at the Clarington, Ohio market. These transactions highlight Antero's ability to achieve significant incremental margin improvement driven by demand-pull sales agreements.

Share Repurchase Program

During the quarter, Antero purchased 1.6 million shares for approximately $56 million, for an average weighted price of $34.15 per share. Antero has approximately $821 million of capacity remaining under its share repurchase program. Antero expects to continue opportunistically repurchasing shares.

Fourth Quarter 2026 Guidance Update

Antero expects fourth quarter 2026 production to be approximately 4.3 Bcfe/d, reflecting an estimated 15 to 20 Bcfe of curtailments, driven by low regional pricing.  

Natural gas realized price guidance for the fourth quarter is expected to be a $(0.15) - $(0.25) per Mcf differential to NYMEX, reflecting seasonally lower in-basin pricing. Cash production expense during the fourth quarter is expected to be in the range of $2.10 to $2.20 per Mcfe.

The drilling and completion capital budget is expected to be in the range of $325 to $350 million during the fourth quarter of 2026, as the company is targeting a $1.2 billion drilling and completion capital budget for 2026. This development plan is expected to result in high single digit production growth in 2027. Antero's capital plan reflects the completion of one incremental liquids-rich pad in the 1300 BTU window and one incremental lean pad during the fourth quarter of 2026.

The table below highlights the 2027 and 2028 natural gas hedges that were added during the third quarter, supporting the completion of the lean pad during the fourth quarter of 2026.

Swaps	Volumes as of June 30, 2026 (MMBtu/d)	Volumes as of September 30, 2026 (MMBtu/d)	Volumes added during 3Q 2026 (MMBtu/d)	Weighted Average Price of Added Volumes ($/MMBtu)
January – December 2027	935,000	1,082,000	147,000	$3.54
January – December 2028	265,000	398,000	133,000	$3.49

 

Fourth Quarter 2026 Guidance
Net Daily Natural Gas Equivalent Production (Bcfe/d)			4.3
Natural Gas Realized Price – Expected Discount to NYMEX ($/Mcf)			($0.15) to ($0.25)
Cash Production Expense ($/Mcfe)			$2.10 to $2.20
D&C Capital Expenditures ($MM)			$325 to $350

Natural Gas Hedge Program

The following tables detail Antero's natural gas swap and collar hedge position as of September 30, 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 or Antero's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

Swaps						Natural Gas (MMBtu/d)								Weighted Average Index Price ($/MMBtu)
October – December 2026 NYMEX Henry Hub Swap						1,378,000						$		3.91
2027 NYMEX Henry Hub Swap						1,082,000						$		3.82
2028 NYMEX Henry Hub Swap						398,000						$		3.48
									Weighted Average Index
Collars				Natural Gas (MMBtu/d)					Floor Price ($/MMBtu)						Ceiling Price ($/MMBtu)
October – December 2026 NYMEX Henry Hub Costless Collars				584,000				$	3.27				$		5.65
2027 NYMEX Henry Hub Costless Collars				81,000				$	3.52				$		4.63

Adjusted Free Cash Flow

During the third quarter of 2026, Adjusted Free Cash Flow was $215 million.

		Three Months Ended September 30,
		2025			2026
Net cash provided by operating activities		$	310,090			575,201
Less: Capital expenditures			(202,659)			(360,447)
Less: Distributions to non-controlling interests in Martica			(16,525)			—
Plus: Transaction expense			—			552
Adjusted Free Cash Flow		$	90,906			215,306
Changes in Working Capital			(21,311)			(3,115)
Adjusted Free Cash Flow before Changes in Working Capital		$	69,595			212,191

Third Quarter 2026 Financial Results

Net daily natural gas equivalent production in the third quarter averaged 4.2 Bcfe/d, including 222 MBbl/d of liquids. During the third quarter, Antero had curtailments of approximately 10 Bcfe of production. Antero's average realized natural gas price before hedges was $2.63 per Mcf. Antero's average realized C3+ NGL price before hedges was $42.18 per barrel and its C2+ NGL price before hedges was $29.36 per barrel.

The following table details average net production and average realized prices for the three months ended September 30, 2026:

 

 

 

		Three Months Ended September 30, 2026
		Natural Gas  (MMcf/d)			Oil (Bbl/d)			C3+ NGLs (Bbl/d)			Ethane (Bbl/d)			Combined Natural Gas Equivalent  (MMcfe/d)
Average Net Production			2,904			6,924			124,109			90,576			4,234
			Three Months Ended September 30, 2026
		Natural Gas			Oil			C3+ NGLs			Ethane			Combined Natural Gas Equivalent
Average Realized Prices		($/Mcf)			($/Bbl)			($/Bbl)			($/Bbl)			($/Mcfe)
Average realized prices before settled derivatives		$	2.63			70.17			42.18			11.79			3.41
Index price (1)		$	2.95			85.79			44.48			10.21			2.95
Premium / (Discount) to Index price		$	(0.32)			(15.62)			(2.30)			1.58			0.46
Settled commodity derivatives		$	0.52			—			(0.36)			—			0.35
Average realized prices after settled derivatives		$	3.15			70.17			41.82			11.79			3.76
Premium / (Discount) to Index price		$	0.20			(15.62)			(2.66)			1.58			0.81

 

(1)  Please see Antero's Quarterly Report on Form 10-Q for the quarter ended September 30, 2026, for more information on these index and average realized prices.

Cash production expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was $2.05 per Mcfe in the third quarter, as compared to $2.44 per Mcfe during the third quarter of 2025. The decrease compared to the prior year reflects continued momentum with the integration of HG Energy and the optimization of firm transportation agreements. Net marketing expense was $0.04 per Mcfe during the third quarter of 2026, compared to $0.05 per Mcfe during the third quarter of 2025.

Operating Results

Antero placed 22 Marcellus wells to sales during the third quarter with an average lateral length of 17,600 feet. Five of these wells have been online for approximately 60 days with an average rate per well of 30 MMcfe/d. In addition, Antero had a number of notable company operating achievements, including:

• Completed longest lateral in company history at approximately 25,000 feet
• Achieved company record for daily production on a pad at 273 MMcf/d
• Set drilling speed record averaging under 4 days per 10,000 feet drilled on an entire pad
• Continued drilling and completion improvement on HG asset, accomplishing a 47% decrease on drilling days per well and a 280% increase in completion stages per day compared to the prior operator

Third Quarter 2026 Capital Investment

Antero's drilling and completion capital expenditures for the three months ended September 30, 2026 were $324 million. In addition to capital invested in drilling and completion activities, the Company invested $35 million in land during the third quarter. Through this investment, Antero added approximately 8,000 net acres, representing 35 incremental net drilling locations at an average cost of approximately $750,00 per location.

Acquisitions – In July 2026, as previously disclosed, Antero acquired properties in its West Virginia development footprint for approximately $315 million. These acquired properties include approximately 125 MMcfe/d of net production and 3,500 of net undeveloped acres supporting 15 locations.

Conference Call

A conference call is scheduled on Thursday, October 29, 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 (U.S.), or +1 201-493-6746 (International) and reference "Antero Resources." A telephone replay of the call will be available until Thursday, November 5, 2026 at 9:00 am MT at 877-660-6853 (U.S.) or +1 201-612-7415 (International) using the conference ID: 13758946. 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, November 5, 2026 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):

		Three Months Ended September 30,
		2025			2026
Net income and comprehensive income attributable to Antero Resources Corporation		$	76,179			367,140
Net income and comprehensive income attributable to noncontrolling interests			9,431			—
Unrealized commodity derivative gains			(40,812)			(53,006)
Amortization of deferred revenue, VPP			(6,368)			(5,924)
Loss (gain) on sale of assets			171			(1,153)
Impairment of property and equipment			12,228			1,555
Equity-based compensation			15,501			13,152
Equity in earnings of unconsolidated affiliate			(29,055)			(110,710)
Contract termination and loss contingency			12,571			12,991
Transaction expense			—			552
Tax effect of reconciling items (1)			7,813			31,352
			57,659			255,949
Martica adjustments (2)			(9,431)			—
Adjusted Net Income		$	48,228			255,949
Diluted Weighted Average Common Shares Outstanding			311,034			308,626

 

(1) Deferred taxes were approximately 22% for 2025 and 2026.

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

Net Debt

Net Debt is calculated as total 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 Debt to Net Debt as used in this release (in thousands):

		September 30, 2025			September 30, 2026
Commercial paper		$	—			451,000
Credit Facility			348,200			—
Term Loan			—			1,000,000
7.625% senior notes due 2029			365,353			—
5.375% senior notes due 2030			600,000			600,000
5.400% senior notes due 2036			—			750,000
Unamortized debt issuance costs			(6,333)			(19,188)
Total debt		$	1,307,220			2,781,812
Less: Cash, cash equivalents and restricted cash			—			—
Net Debt		$	1,307,220			2,781,812

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 September 30, 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 September 30,
		2025			2026
Reconciliation of net income to Adjusted EBITDAX:
Net income and comprehensive income attributable to Antero Resources Corporation		$	76,179			367,140
Net income and comprehensive income attributable to noncontrolling interests			9,431			—
Unrealized commodity derivative gains			(40,812)			(53,006)
Amortization of deferred revenue, VPP			(6,368)			(5,924)
Gain on sale of assets			171			(1,153)
Interest expense, net			18,232			38,430
Loss on early extinguishment of debt			—			—
Income tax expense			43,330			96,371
Depletion, depreciation, amortization and accretion			189,724			242,163
Impairment of property and equipment			12,228			1,555
Exploration expense			844			911
Equity-based compensation expense			15,501			13,152
Equity in earnings of unconsolidated affiliate			(29,055)			(110,710)
Dividends from unconsolidated affiliate			31,313			31,313
Contract termination, loss contingency and settlements			12,571			12,991
Transaction expense and other			314			645
			333,603			633,878
Martica related adjustments (1)			(15,363)			—
Adjusted EBITDAX		$	318,240			633,878
Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities:
Adjusted EBITDAX		$	318,240			633,878
Martica related adjustments (1)			15,363			—
Interest expense, net			(18,232)			(38,430)
Amortization of debt issuance costs and other			90			382
Exploration expense			(844)			(911)
Changes in current assets and liabilities			8,978			(9,324)
Contract termination, loss contingency and settlements			(13,143)			(6,379)
Transaction expense and other			(362)			(4,015)
Net cash provided by operating activities		$	310,090			575,201

 

(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 September 30,
		2025			2026
Drilling and completion costs (cash basis)		$	166,968			311,888
Change in accrued capital costs			4,792			11,676
Adjusted drilling and completion costs (accrual basis)		$	171,760			323,564

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," or "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 and hedging strategies, future operating and hedging 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 Ukraine, Venezuela 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, 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 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, 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 events and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described or referenced under the heading "Risk Factors" in Antero Resources' Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2026.

ANTERO RESOURCES CORPORATION
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
					(Unaudited)
		December 31,			September 30,
		2025			2026
Assets
Current assets:
Restricted cash		$	210,000			—
Accounts receivable			33,773			25,739
Accrued revenue			473,453			427,407
Derivative instruments			68,913			293,308
Prepaid expenses			14,554			11,810
Current assets held for sale			20,269			—
Other current assets			10,818			6,846
Total current assets			831,780			765,110
Property and equipment:
Oil and gas properties, at cost (successful efforts method):
Unproved properties			796,705			1,134,012
Proved properties			14,049,003			17,538,866
Other property and equipment			113,020			140,178
			14,958,728			18,813,056
Less accumulated depletion, depreciation and amortization			(5,753,416)			(6,323,760)
Property and equipment, net			9,205,312			12,489,296
Operating leases right-of-use assets			2,132,509			1,875,398
Derivative instruments			12,524			11,680
Investment in unconsolidated affiliate			245,653			348,005
Assets held for sale			754,737			—
Other assets			62,892			90,002
Total assets		$	13,245,407			15,579,491
Liabilities and Equity
Current liabilities:
Accounts payable		$	49,514			59,169
Accounts payable, related parties			101,454			118,618
Accrued liabilities			338,847			318,441
Revenue distributions payable			384,777			445,798
Commercial paper			—			451,000
Derivative instruments			—			1,192
Short-term lease liabilities			516,256			517,276
Deferred revenue, VPP			23,502			17,869
Current liabilities held for sale			62,310			—
Other current liabilities			26,653			15,688
Total current liabilities			1,503,313			1,945,051
Long-term liabilities:
Long-term debt			1,397,976			2,330,812
Deferred income tax liability, net			907,306			1,220,991
Derivative instruments			—			20,214
Long-term lease liabilities			1,612,288			1,353,877
Deferred revenue, VPP			11,946			—
Liabilities held for sale			39,789			—
Other liabilities			57,140			67,149
Total liabilities			5,529,758			6,938,094
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; 308,510 and 307,125 shares issued and      outstanding as of December 31, 2025 and September 30, 2026, respectively			3,085			3,072
Additional paid-in capital			5,865,447			5,816,691
Retained earnings			1,682,295			2,821,634
Total stockholders' equity			7,550,827			8,641,397
Noncontrolling interests			164,822			—
Total equity			7,715,649			8,641,397
Total liabilities and equity		$	13,245,407			15,579,491

 

ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In thousands, except per share amounts)
		Three Months Ended September 30,
		2025			2026
Revenue and other:
Natural gas sales		$	630,887			702,721
Natural gas liquids sales			470,392			579,842
Oil sales			31,351			44,698
Commodity derivative fair value gains			39,243			188,567
Marketing			34,902			40,102
Amortization of deferred revenue, VPP			6,368			5,924
Other revenue and income			851			983
Total revenue			1,213,994			1,562,837
Operating expenses:
Lease operating			32,415			44,121
Gathering, compression, processing and transportation			711,003			726,019
Production and ad valorem taxes			28,884			30,920
Marketing			51,068			55,708
Exploration			844			911
General and administrative (including equity-based compensation expense of $15,501 and      $13,152 in 2025 and 2026, respectively)			56,944			57,795
Depletion, depreciation and amortization			188,778			241,167
Impairment of property and equipment			12,228			1,555
Accretion of asset retirement obligations			946			996
Contract termination, loss contingency and settlements			12,571			12,991
Loss (gain) on sale of assets			171			(1,153)
Other operating expense			25			24
Total operating expenses			1,095,877			1,171,054
Operating income			118,117			391,783
Other income (expense):
Interest expense, net			(18,232)			(38,430)
Equity in earnings of unconsolidated affiliate			29,055			110,710
Transaction expense			—			(552)
Total other income			10,823			71,728
Income before income taxes			128,940			463,511
Income tax expense			(43,330)			(96,371)
Net income and comprehensive income including noncontrolling interests			85,610			367,140
Less: net income and comprehensive income attributable to noncontrolling interests			9,431			—
Net income and comprehensive income attributable to Antero Resources Corporation		$	76,179			367,140
Net income per common share—basic		$	0.25			1.19
Net income per common share—diluted		$	0.24			1.19
Weighted average number of common shares outstanding:
Basic			308,763			307,408
Diluted			311,034			308,626

 

ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
		Nine Months Ended September 30,
		2025			2026
Cash flows provided by (used in) operating activities:
Net income including noncontrolling interests		$	471,649			1,201,770
Adjustments to reconcile net income to net cash provided by operating activities:
Depletion, depreciation, amortization and accretion			565,546			677,702
Impairment of property and equipment			24,143			6,958
Commodity derivative fair value gains			(20,981)			(384,223)
Gains (losses) on settled commodity derivatives			(18,940)			104,647
Deferred income tax expense			145,757			313,685
Equity-based compensation expense			46,501			38,151
Equity in earnings of unconsolidated affiliate			(88,279)			(170,207)
Dividends of earnings from unconsolidated affiliate			93,941			93,941
Amortization of deferred revenue			(18,896)			(17,579)
Amortization of debt issuance costs and other			913			1,335
Settlement of asset retirement obligations			(71)			(119)
Contract termination, loss contingency and settlements			11,429			8,765
Loss (gain) on sale of assets			142			(61,719)
Loss on early extinguishment of debt			3,628			6,742
Changes in current assets and liabilities:
Accounts receivable			(2,735)			7,164
Accrued revenue			96,738			61,299
Prepaid expenses and other current assets			2,122			23,366
Accounts payable including related parties			(2,679)			912
Accrued liabilities			(94,535)			(72,419)
Revenue distributions payable			45,323			43,902
Other current liabilities			(529)			(10,965)
Net cash provided by operating activities			1,260,187			1,873,108
Cash flows provided by (used in) investing activities:
Additions to unproved properties			(89,954)			(79,283)
Drilling and completion costs			(523,302)			(804,260)
Additions to other property and equipment			(3,957)			(23,721)
Acquisition of HG Production			—			(2,803,195)
Acquisitions of oil and gas properties			(241,162)			(321,792)
Proceeds from asset sales			15,956			755,142
Change in other assets			(11,770)			(31,463)
Net cash used in investing activities			(854,189)			(3,308,572)
Cash flows provided by (used in) financing activities:
Issuances and borrowings of debt			3,641,800			10,923,493
Repayments of debt			(3,828,533)			(9,531,090)
Repurchases of common stock			(136,321)			(93,589)
Payment of debt issuance costs			(1,078)			(12,291)
Distributions to noncontrolling interests in Martica Holdings LLC			(54,006)			(24,996)
Employee tax withholding for settlement of equity-based compensation awards			(26,749)			(35,005)
Other			(1,111)			(1,058)
Net cash provided by (used in) financing activities			(405,998)			1,225,464
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		$	80,909			128,279
Increase (decrease) in accounts payable, accrued liabilities and other current liabilities for additions to property      and equipment		$	(17,248)			46,921
Increase in other current liabilities for acquisitions of oil and gas properties		$	15,951			—
In-kind liquidating distribution to noncontrolling interests		$	—			160,583

The following table sets forth selected financial data for the three months ended September 30, 2025 and 2026 (in thousands):

			(Unaudited)
		Three Months Ended						Amount of
		September 30,						Increase			Percent
		2025			2026			(Decrease)			Change
Revenue:
Natural gas sales		$	630,887			702,721			71,834		11	%
Natural gas liquids sales			470,392			579,842			109,450		23	%
Oil sales			31,351			44,698			13,347		43	%
Commodity derivative fair value gains			39,243			188,567			149,324		381	%
Marketing			34,902			40,102			5,200		15	%
Amortization of deferred revenue, VPP			6,368			5,924			(444)		(7)	%
Other revenue and income			851			983			132		16	%
Total revenue			1,213,994			1,562,837			348,843		29	%
Operating expenses:
Lease operating			32,415			44,121			11,706		36	%
Gathering and compression			231,413			270,055			38,642		17	%
Processing			289,035			310,030			20,995		7	%
Transportation			190,555			145,934			(44,621)		(23)	%
Production and ad valorem taxes			28,884			30,920			2,036		7	%
Marketing			51,068			55,708			4,640		9	%
Exploration			844			911			67		8	%
General and administrative (excluding equity-based compensation)			41,443			44,643			3,200		8	%
Equity-based compensation			15,501			13,152			(2,349)		(15)	%
Depletion, depreciation and amortization			188,778			241,167			52,389		28	%
Impairment of property and equipment			12,228			1,555			(10,673)		(87)	%
Accretion of asset retirement obligations			946			996			50		5	%
Contract termination and loss contingency			12,571			12,991			420		3	%
Loss (gain) on sale of assets			171			(1,153)			(1,324)		*
Other operating expense			25			24			(1)		(4)	%
Total operating expenses			1,095,877			1,171,054			75,177		7	%
Operating income			118,117			391,783			273,666		232	%
Other earnings (expenses):
Interest expense, net			(18,232)			(38,430)			(20,198)		111	%
Equity in earnings of unconsolidated affiliate			29,055			110,710			81,655		281	%
Transaction expenses			—			(552)			(552)		*
Total other income			10,823			71,728			60,905		563	%
Income before income taxes			128,940			463,511			334,571		259	%
Income tax expense			(43,330)			(96,371)			(53,041)		122	%
Net income and comprehensive income including noncontrolling interests			85,610			367,140			281,530		329	%
Less: net income and comprehensive income attributable to      noncontrolling interests			9,431			—			(9,431)		*
Net income and comprehensive income attributable to Antero      Resources Corporation		$	76,179			367,140			290,961		382	%
Adjusted EBITDAX		$	318,240			633,878			315,638		99	%

 

*   Not meaningful

The following table sets forth selected operating data for the three months ended September 30, 2025 and 2026:

		Three Months Ended						Amount of
		September 30,						Increase			Percent
		2025			2026			(Decrease)			Change
Production data (1) (2):
Natural gas (Bcf)			202			267			65		32	%
C2 Ethane (MBbl)			7,808			8,333			525		7	%
C3+ NGLs (MBbl)			10,495			11,418			923		9	%
Oil (MBbl)			619			637			18		3	%
Combined (Bcfe)			315			390			75		24	%
Daily combined production (MMcfe/d)			3,429			4,234			805		23	%
Average prices before effects of derivative settlements (3):
Natural gas (per Mcf)		$	3.12			2.63			(0.49)		(16)	%
C2 Ethane (per Bbl) (4)		$	11.05			11.79			0.74		7	%
C3+ NGLs (per Bbl)		$	36.60			42.18			5.58		15	%
Oil (per Bbl)		$	50.65			70.17			19.52		39	%
Weighted Average Combined (per Mcfe)		$	3.59			3.41			(0.18)		(5)	%
Average realized prices after effects of derivative settlements (3):
Natural gas (per Mcf)		$	3.12			3.15			0.03		1	%
C2 Ethane (per Bbl) (4)		$	11.05			11.79			0.74		7	%
C3+ NGLs (per Bbl)		$	36.60			41.82			5.22		14	%
Oil (per Bbl)		$	50.65			70.17			19.52		39	%
Weighted Average Combined (per Mcfe)		$	3.59			3.76			0.17		5	%
Average costs (per Mcfe):
Lease operating		$	0.10			0.11			0.01		10	%
Gathering and compression		$	0.73			0.69			(0.04)		(5)	%
Processing		$	0.92			0.80			(0.12)		(13)	%
Transportation		$	0.60			0.37			(0.23)		(38)	%
Production and ad valorem taxes		$	0.09			0.08			(0.01)		(11)	%
Marketing expense, net		$	0.05			0.04			(0.01)		(20)	%
General and administrative (excluding equity-based compensation)		$	0.13			0.11			(0.02)		(15)	%
Depletion, depreciation, amortization and accretion		$	0.60			0.62			0.02		3	%

 

(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.
(4)	The average realized price for the three months ended September 30, 2025 includes less than $1 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 for the three months ended September 30, 2025 would have been $11.02 per Bbl.

 

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SOURCE Antero Resources Corporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Antero Resources' third-quarter 2026 earnings and cash flow?

Antero reported $367 million in net income and $575 million in operating cash flow for third-quarter 2026. Adjusted net income was $256 million, and adjusted free cash flow was $215 million; both adjusted figures are non-GAAP measures.

What natural gas hedges did Antero Resources add during third-quarter 2026?

Antero added 147,000 million British thermal units per day of 2027 swaps at a weighted average $3.54 per million British thermal units and 133,000 for 2028 at $3.49. These additions support completion of the lean pad during fourth-quarter 2026.

What natural gas hedge prices does Antero Resources have for late 2026 and 2027?

Antero's Henry Hub swaps cover 1,378,000 million British thermal units daily at $3.91 for October–December 2026 and 1,082,000 at $3.82 for 2027. Costless collars, which set price floors and ceilings, cover 584,000 daily at $3.27–$5.65 for October–December 2026 and 81,000 at $3.52–$4.63 for 2027. Prices are per million British thermal units.