Antero Resources (NYSE: AR) boosts Q1 2026 profit, cash flow and guidance after HG acquisition
Rhea-AI Filing Summary
Antero Resources reported strong first quarter 2026 results driven by higher production and improved pricing. Net income attributable to the company rose to $535.2 million, up from $208.0 million a year earlier, while total revenue increased 44% to $1.95 billion. Net daily production averaged 3.9 Bcfe/d, 13% above the prior-year period, including 206 MBbl/d of liquids, and helped generate Adjusted EBITDAX of $723.4 million, up 32%.
Antero closed the HG acquisition during the quarter, adding 385,000 net acres, 400 drilling locations, and an expected 700 MMcfe/d of annual net production, while increasing Net Debt by $1.5 billion from year-end 2025. Adjusted Free Cash Flow rose to $657.5 million, supported by an average realized natural gas price of $5.57/Mcf, a premium to Henry Hub.
The company tightened its 2026 outlook, reaffirming full-year production of about 4.1 Bcfe/d (roughly 20% growth year-over-year), raising its expected ethane price premium to Mont Belvieu to $2.00–$3.00 per barrel, and lowering projected cash production expense to $2.25–$2.35 per Mcfe, reflecting expected efficiencies from the HG assets.
Positive
- Strong earnings and cash flow growth: Q1 2026 revenue rose 44% to $1.95 billion, net income attributable to Antero increased 157% to $535.2 million, and Adjusted Free Cash Flow nearly tripled to $657.5 million versus the prior year period.
- Higher production and improved margins: Net daily production grew 13% year-over-year to 3.9 Bcfe/d, while Adjusted EBITDAX increased 32% to $723.4 million, supported by natural gas and NGL realizations that exceeded benchmark index prices.
- Accretive HG acquisition and better 2026 outlook: The HG deal added 385,000 net acres, 400 drilling locations, and an expected 700 MMcfe/d of annual net production, enabling 2026 guidance with about 20% production growth, higher ethane price premiums, and lower projected cash production expense.
Negative
- Leverage increased materially with HG acquisition: Net Debt rose from $1.19 billion at December 31, 2025 to $2.66 billion at March 31, 2026, driven by the $2.79 billion cash acquisition and related financing.
- Higher interest burden and operating costs: Net interest expense increased 58% year-over-year to $37.0 million, and all-in cash expense rose to $2.64 per Mcfe from $2.56 per Mcfe, partly due to higher fuel costs linked to stronger gas prices.
Insights
Production-driven growth, strong cash generation, but higher leverage from HG acquisition.
Antero delivered a powerful operational quarter. Revenue grew 44% to $1.95B, while net income attributable to the company climbed to $535.2M. Production increased 13% to 3.9 Bcfe/d, supporting $723.4M in Adjusted EBITDAX, up 32%.
Cash generation was notable: Adjusted Free Cash Flow reached $657.5M, almost triple the prior year. Realized natural gas pricing of $5.57/Mcf exceeded the Henry Hub index by $0.53/Mcf, and C3+ NGLs realized $37.83/Bbl with a premium to the benchmark, underscoring marketing strength.
The HG acquisition is transformative in scale, adding 385,000 net acres and 400 drilling locations and expected to lift annual net production by about 700 MMcfe/d. However, Net Debt rose from $1.19B at December 31, 2025 to $2.66B at March 31, 2026, and interest expense increased 58%. The updated 2026 guidance—higher ethane premiums and lower cash production expense—suggests management expects these assets to be accretive to margins.
8-K Event Classification
Key Figures
Key Terms
Adjusted Free Cash Flow financial
Adjusted EBITDAX financial
Net Debt financial
costless collars financial
Variable Volume Production Payment (VPP) financial
noncontrolling interests financial
Earnings Snapshot
For full-year 2026, Antero expects approximately 4.1 Bcfe/d average production (about 20% growth year-over-year), ethane realized price premiums of $2.00–$3.00 per barrel above Mont Belvieu, and cash production expense of $2.25–$2.35 per Mcfe.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or Other
Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices) (Zip Code)
Registrant’s
Telephone Number, Including Area Code: (
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name
of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition |
On April 29, 2026, Antero Resources Corporation issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference herein, announcing its financial and operational results for the quarter ended March 31, 2026.
The information in this Current Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act unless specifically identified therein as being incorporated therein by reference.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit Number |
Description | |
| 99.1 | Antero Resources Corporation press release dated April 29, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| 2 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ANTERO RESOURCES CORPORATION | ||
| By: | /s/ Brendan E. Krueger | |
| Brendan E. Krueger | ||
| Chief Financial Officer and Senior Vice President – Finance and Treasurer | ||
Dated: April 29, 2026
| 3 |
Exhibit 99.1
Antero Resources Announces First Quarter 2026 Financial and Operating Results
Denver, Colorado, April 29, 2026—Antero Resources Corporation (NYSE: AR) (“Antero Resources,” “Antero,” or the “Company”) today announced its first 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 March 31, 2026.
Highlights:
| · | Net production averaged a company record 3.9 Bcfe/d, an increase of 13% from the year ago period |
| o | Natural gas production averaged 2.6 Bcf/d, an increase of 21% from the year ago period |
| o | Liquids production averaged 206 MBbl/d, in line with the year ago period |
| · | Realized a pre-hedge natural gas price of $5.57 per Mcf, a $0.53 per Mcf premium to NYMEX |
| · | Realized a pre-hedge C3+ NGL price of $37.83 per barrel, a $0.94 per barrel premium to the benchmark |
| · | Net income was $535 million and Adjusted Net Income was $357 million (Non-GAAP) |
| · | Adjusted EBITDAX was $723 million (Non-GAAP) and net cash provided by operating activities was $859 million, increases of 32% and 88% compared to the prior year period, respectively |
| · | Adjusted Free Cash Flow was $657 million (Non-GAAP) |
| · | 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 and 15% 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 13% above the year ago period. This production growth drove one of the highest quarterly EBITDAX and Free Cash Flow results in company history. These results reflect a tremendous performance from our operations team which navigated the harsh conditions of Winter Storm Fern without having to shut-in any volumes. This enabled Antero to deliver critical natural gas to the various regions that needed it most, a truly remarkable achievement by our people in the field.”
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 U.S., selling the majority of our NGL barrels into international markets. We expect recent global supply outages and disruptions to lead to increasing risk premiums for U.S. NGL barrels both in the near term and in the years ahead. At the same time, we have the highest LNG exposure among Appalachian producers, selling 2.3 Bcf/d of production to sales points along the LNG fairway. We are seeing growing interest from global NGL and LNG buyers that are looking to increase exposure to U.S. supply. This prioritization toward U.S. supply supports higher export utilization and more attractive price premiums at our sales points along the coasts. These attributes uniquely position us to benefit from today’s rising global demand for U.S. energy.”
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 $1.5 billion from the year-end 2025 level.”
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.”
1
Cash Cost Reduction
Antero expects cash production expense for the remainder of 2026 to be $2.20 to $2.30 per Mcfe. This reduced range reflects a $0.25 per Mcfe, or 10% reduction from the full-year average in 2025 and a $0.39 per Mcfe, or 15% reduction from the first quarter of 2026. Inclusive of G&A and net marketing expense the total cost reduction is expected to be $0.30 per Mcfe. The production and development of the HG assets are expected to result in cash production expenses remaining in that range going forward, assuming current natural gas strip pricing.
Second Quarter and Full-Year 2026 Guidance Update
Antero expects second quarter production to average 4.1 Bcfe/d, a 6% increase from the first quarter of 2026, driven by a full quarter of production from the HG acquisition. The second half of 2026 is expected to average approximately 4.2 Bcfe/d. This results in a full year average of approximately 4.1 Bcfe/d, unchanged from prior guidance. This annual guidance reflects approximately 20% growth year-over-year. The Company is increasing its ethane realized price premium to Mont Belvieu to $2.00 to $3.00 per barrel, reflecting a $1.00 per barrel increase at the midpoint from the prior guidance range. The Company is reducing its cash production expense guidance to a range of $2.25 to $2.35 per Mcfe, a $0.10 per Mcfe reduction at the midpoint. The lower cash production expense is due primarily to the impact of the integration of the lower production costs associated with the HG assets.
| 2026 Initial | 2026 Revised | |||||||||||||||
| Full Year 2026 Guidance Updates | Low | High | Low | High | ||||||||||||
| Ethane Realized Price Premium vs. Mont Belvieu ($/Bbl) | $ | 1.00 | $ | 2.00 | $ | 2.00 | $ | 3.00 | ||||||||
| Cash Production Expense ($/Mcfe)(1) | $ | 2.35 | $ | 2.45 | $ | 2.25 | $ | 2.35 | ||||||||
| (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 (MMBtu/d) | Weighted Average Index Price ($/MMBtu) | ||||||
| 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 (MMBtu/d) | Floor Price ($/MMBtu) | Ceiling Price ($/MMBtu) | |||||||||
| 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 $657 million.
| Three Months Ended March 31, | ||||||||
| 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 | |||||
2
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 $5.57 per Mcf, a $0.53 per Mcf premium to the benchmark Henry Hub index price. Antero’s average realized C3+ NGL price before hedges was $37.83 per barrel, representing a $0.94 per barrel premium to the benchmark index price.
The following table details average net production and average realized prices for the three months ended March 31, 2026:
| Three Months Ended March 31, 2026 | ||||||||||||||||||||
| Natural Gas (MMcf/d) | Oil (Bbl/d) | C3+ NGLs (Bbl/d) | Ethane (Bbl/d) | Combined Natural Gas Equivalent (MMcfe/d) | ||||||||||||||||
| Average Net Production | 2,617 | 9,067 | 120,800 | 75,956 | 3,852 | |||||||||||||||
| Three Months Ended March 31, 2026 | ||||||||||||||||||||
| Combined | ||||||||||||||||||||
| Natural | Natural Gas | |||||||||||||||||||
| Gas | Oil | C3+ NGLs | Ethane | Equivalent | ||||||||||||||||
| Average Realized Prices | ($/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 $2.64 per Mcfe in the first quarter, as compared to $2.56 per Mcfe during the first quarter of 2025. The increase compared to the prior year was due to higher fuel costs related to higher natural gas prices during the quarter. Net marketing expense was $0.06 per Mcfe during the first quarter of 2026, unchanged from the first quarter of 2025.
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 25% ethane recovery. In addition, Antero had a number of notable company operating achievements, including:
| · | 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 $223 million. In addition to capital invested in drilling and completion activities, the Company invested $25 million in land during the first quarter. Through this investment, Antero added approximately 5,400 net acres, representing 24 incremental drilling locations at an average cost of approximately $900,000 per location.
3
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 (U.S.), or 201-493-6746 (International) and reference “Antero Resources.” A telephone replay of the call will be available until Thursday, May 7, 2026 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13758944. 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, May 7, 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 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 22% for 2025 and 2026. |
| (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. |
4
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 | ||||||
| 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 | (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. |
5
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 activities: | ||||||||
| 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. |
6
| 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 March 31, | ||||||||
| 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.
7
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 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, future financial position, the participation level of our drilling partner and the financial and production results to be achieved as a result of that drilling partnership, the other key assumptions underlying our projections, the impact of recently enacted legislation, and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. All forward-looking statements speak only as of the date of this release. Although Antero Resources believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.
Antero Resources cautions you that these forward-looking statements are subject to all of the risks and uncertainties, incidental to our business, most of which are difficult to predict and many of which are beyond the Antero Resources’ control. These risks include, but are not limited to, 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 Ukraine and the Middle East, and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading “Risk Factors” in Antero Resources’ Annual Report on Form 10-K for the year ended December 31, 2025 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
For more information, contact Daniel Katzenberg, Vice President - Investor Relations of Antero Resources at (303) 357-7219 or dkatzenberg@anteroresources.com.
8
ANTERO RESOURCES CORPORATION
Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
| (Unaudited) | ||||||||
| December 31, | 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, $0.01 par value; authorized - 50,000 shares; none issued | — | — | ||||||
| Common stock, $0.01 par value; authorized - 1,000,000 shares; 308,510 and 309,825 shares issued and outstanding as of December 31, 2025 and March 31, 2026, respectively | 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 | |||||
9
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 $15,145 and $11,733 in 2025 and 2026, respectively) | 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 | ||||||
10
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 and equipment | $ | (19,271 | ) | 44,277 | ||||
| Increase in accounts payable, related parties for acquisition of HG Production | $ | — | 10,809 | |||||
11
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 Corporation | 207,971 | 535,216 | 327,245 | 157 | % | |||||||||||
| Adjusted EBITDAX | $ | 549,428 | 723,418 | 173,990 | 32 | % | ||||||||||
| * | Not meaningful |
12
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. |
13