Antero Resources Announces First Quarter 2026 Financial and Operating Results

Antero Resources Announces First Quarter 2026 Financial and Operating Results DENVER, April 29, 2026 /PRNewswire/ -- 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:

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."

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

$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

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)

($/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:

First Quarter 2026 Capital Investment

Antero's drilling and completion capital expenditures for the three months ended March 31, 2026 were $222 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.

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.

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

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:

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

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.

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.

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.

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

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

Total operating expenses

1,081,235

1,215,674

Operating income

271,472

729,452

Other income (expense):

Interest expense, net

(23,368)

(36,963)

Equity in earnings of unconsolidated affiliate

28,661

30,118

Loss on early extinguishment of debt

(2,899)

(6,742)

Transaction expense

—

(22,144)

Total other income (expense)

2,394

(35,731)

Income before income taxes

273,866

693,721

Income tax expense

(54,400)

(145,508)

Net income and comprehensive income including noncontrolling interests

219,466

548,213

Less: net income and comprehensive income attributable to noncontrolling interests

11,495

12,997

Net income and comprehensive income attributable to Antero Resources Corporation

207,971

535,216

Net income per common share—basic

0.67

1.73

Net income per common share—diluted

0.66

1.72

Weighted average number of common shares outstanding:

Basic

311,328

308,933

Diluted

314,798

311,426

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Three Months Ended March 31,

2025

2026

Cash flows provided by (used in) operating activities:

Net income including noncontrolling interests

219,466

548,213

Adjustments to reconcile net income to net cash provided by operating activities:

Depletion, depreciation, amortization and accretion

187,291

207,302

Impairment of property and equipment

5,618

948

Commodity derivative fair value losses (gains)

71,671

(35,023)

Losses on settled commodity derivatives

(11,017)

(165,135)

Deferred income tax expense

53,462

143,820

Equity-based compensation expense

15,145

11,733

Equity in earnings of unconsolidated affiliate

(28,661)

(30,118)

Dividends of earnings from unconsolidated affiliate

31,314

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

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

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

Amortization of deferred revenue, VPP

6,230

5,795

(435)

(7)

Other revenue and income

818

827

Total revenue

1,352,707

1,945,126

592,419

Operating expenses:

Lease operating

33,986

44,529

10,543

Gathering and compression

236,134

269,113

32,979

Processing

261,155

287,768

26,613

Transportation

197,728

232,225

34,497

Production and ad valorem taxes

55,299

80,997

25,698

Marketing

42,770

62,553

19,783

Exploration

668

792

124

General and administrative (excluding equity-based compensation)

47,300

51,607

4,307

Equity-based compensation

15,145

11,733

(3,412)

(23)

Depletion, depreciation and amortization

186,352

206,239

19,887

Impairment of property and equipment

5,618

948

(4,670)

(83)

Accretion of asset retirement obligations

939

1,063

124

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

(2)

(8)

Total operating expenses

1,081,235

1,215,674

134,439

Operating income

271,472

729,452

457,980

169

Other income (expense):

Interest expense, net

(23,368)

(36,963)

(13,595)

Equity in earnings of unconsolidated affiliate

28,661

30,118

1,457

Loss on early extinguishment of debt

(2,899)

(6,742)

(3,843)

133

Transaction expenses

—

(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

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

* Not meaningful

The following table sets forth selected financial data for the three months ended March 31, 2025 and 2026:

Three Months Ended

Amount of

March 31,

Increase

Percent

2025

2026

(Decrease)

Change

Production data (1) (2):

Natural gas (Bcf)

195

236

C2 Ethane (MBbl)

7,442

6,836

(606)

(8)

C3+ NGLs (MBbl)

10,229

10,872

643

Oil (MBbl)

852

816

(36)

(4)

Combined (Bcfe)

306

347

Daily combined production (MMcfe/d)

3,397

3,852

455

Average prices before effects of derivative settlements (3):

Natural gas (per Mcf)

4.01

5.57

1.56

C2 Ethane (per Bbl)

12.70

13.51

0.81

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

Average realized prices after effects of derivative settlements (3):

Natural gas (per Mcf)

3.95

4.86

0.91

C2 Ethane (per Bbl)

12.70

13.51

0.81

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

Average costs (per Mcfe):

Lease operating

0.11

0.13

0.02

Gathering and compression

0.77

0.78

0.01

Processing

0.85

0.83

(0.02)

(2)

Transportation

0.65

0.67

0.02

Production and ad valorem taxes

0.18

0.23

0.05

Marketing expense, net

0.06

—

General and administrative (excluding equity-based compensation)

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.

SOURCE Antero Resources Corporation