Form 8-K
8-K — ANTERO RESOURCES Corp
Accession: 0001104659-26-119693
Filed: 2026-10-28
Period: 2026-10-28
CIK: 0001433270
SIC: 1311 (CRUDE PETROLEUM & NATURAL GAS)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — tm2628427d1_8k.htm (Primary)
EX-99.1 — EXHIBIT 99.1 (tm2628427d1_ex99-1.htm)
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8-K — FORM 8-K
8-K (Primary)
Filename: tm2628427d1_8k.htm · Sequence: 1
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0001433270
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2026-10-28
2026-10-28
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
October 28, 2026
ANTERO RESOURCES CORPORATION
(Exact name of registrant as specified in its
charter)
Delaware
001-36120
80-0162034
(State or Other
Jurisdiction
of Incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification Number)
1615 Wynkoop Street
Denver, Colorado 80202
(Address of Principal Executive Offices) (Zip Code)
Registrant’s
Telephone Number, Including Area Code: (303)
357-7310
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
Common Stock, par value $0.01 Per Share
AR
New York Stock Exchange
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 October 28,
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 September 30, 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 October 28, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
1
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: October 28, 2026
2
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2628427d1_ex99-1.htm · Sequence: 2
Exhibit 99.1
Antero Resources Announces Third Quarter 2026
Financial and Operating Results
Denver, Colorado, October 28, 2026—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.”
1
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
2
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 $29.36 per barrel.
3
The following table details average net production
and average realized prices for the three months ended September 30, 2026:
Three Months Ended September 30, 2026
Natural Gas
(MMcf/d)
Oil
(Bbl/d)
C3+ NGLs
(Bbl/d)
Ethane
(Bbl/d)
Combined
Natural Gas
Equivalent
(MMcfe/d)
Average Net Production
2,904
6,924
124,109
90,576
4,234
Three Months Ended September 30, 2026
Natural
Gas
Oil
C3+ NGLs
Ethane
Combined
Natural Gas
Equivalent
Average Realized Prices
($/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.
4
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
5
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.
6
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.
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,”
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.
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,
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
9
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
10
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
11
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
12
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.
13
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-Subsection d1-1
+ Details
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dei_SecurityExchangeName
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
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dei_SolicitingMaterial
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- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
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Data Type:
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Balance Type:
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- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
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