Antero Resources Announces First Quarter 2025 Financial and Operating Results
Highlights:
-
Net production averaged 3.4 Bcfe/d
- Natural gas production averaged 2.2 Bcf/d
- Liquids production averaged 206 MBbl/d
-
Realized a pre-hedge natural gas equivalent price of
$4.55 per Mcfe, which is a$0.90 per Mcfe premium to NYMEX -
Realized a pre-hedge C3+ NGL price of
$45.65 per barrel, a$1.66 per barrel premium to Mont Belvieu pricing -
Net income was
$208 million and Adjusted Net Income was$247 million (Non-GAAP) -
Adjusted EBITDAX was
$549 million (Non-GAAP); net cash provided by operating activities was$458 million , increases of 110% and 75% compared to the prior year period, respectively -
Drilling and completion capital was
$157 million , 16% below the prior year period -
Free Cash Flow was
$337 million (Non-GAAP) -
Net Debt during the quarter was reduced by
$204 million , to$1.29 billion (Non-GAAP) -
Purchased 2.7 million shares for approximately
$92 million year-to-date throughApril 30 th
For a discussion of the non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt please see "Non-GAAP Financial Measures."
Free Cash Flow
During the first quarter of 2025, Free Cash Flow was
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Three Months Ended |
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2024 |
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2025 |
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Net cash provided by operating activities |
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$ |
261,610 |
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|
457,739 |
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Less: Capital expenditures |
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(222,449) |
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(206,145) |
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Less: Distributions to non-controlling interests in Martica |
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(23,617) |
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(15,969) |
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Free Cash Flow |
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$ |
15,544 |
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|
235,625 |
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Changes in Working Capital (1) |
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(11,086) |
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101,019 |
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Free Cash Flow before Changes in Working Capital |
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$ |
4,458 |
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|
336,644 |
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(1) |
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Working capital adjustments in the first quarter of 2024 includes |
Share Repurchase Program
From
Debt Reduction
As of
LPG Firm Sales Contracts
Antero entered into sales agreements for approximately 90% of its LPG export volumes for 2025 at a double-digit per cent per gallon premium to Mont Belvieu pricing. These locked-in firm sales do not have cancellation rights. As a result of these firm sales, the Company continues to expect full year 2025 C3+ NGL prices to average a premium to Mont Belvieu pricing in the range of
Lean Gas Hedge Program
Antero added new natural gas collars for 2026 with the amounts tied to the expected volumes from its lean gas (approximately 1200 BTU or less) pads planned through the end of 2026. Antero's portfolio includes lean gas development in its capital budget for high gas deliverability and midstream infrastructure availability. These wide collars lock in attractive rates of returns with a floor price of
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Natural Gas |
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Weighted |
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% of Estimated |
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2025 NYMEX Henry Hub Swap |
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100,000 |
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$ |
3.12 |
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4 % |
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Weighted Average Index |
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Natural |
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Floor Price |
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Ceiling Price |
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% of Estimated |
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2026 NYMEX Henry Hub Collars |
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320,000 |
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$ |
3.07 |
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$ |
5.96 |
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14 % |
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(1) |
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Based on the midpoint of 2025 natural gas guidance (including BTU upgrade) |
First Quarter 2025 Financial Results
Net daily natural gas equivalent production in the first quarter averaged 3.4 Bcfe/d, including 206 MBbl/d of liquids. Antero's average realized natural gas price before hedges was
The following table details average net production and average realized prices for the three months ended
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Three Months Ended |
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Natural |
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Oil |
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C3+ NGLs |
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Ethane |
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Combined |
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Average Net Production |
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2,162 |
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|
9,467 |
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113,656 |
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82,689 |
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|
3,397 |
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Natural |
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Oil |
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C3+ NGLs |
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Ethane |
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Combined |
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Average Realized Prices |
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($/Mcf) |
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($/Bbl) |
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($/Bbl) |
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($/Bbl) |
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($/Mcfe) |
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Average realized prices before settled derivatives |
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$ |
4.01 |
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59.08 |
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45.65 |
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12.70 |
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4.55 |
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Index price (1) |
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$ |
3.65 |
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71.42 |
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43.99 |
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11.46 |
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3.65 |
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Premium / (Discount) to Index price |
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$ |
0.36 |
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(12.34) |
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1.66 |
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1.24 |
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0.90 |
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Settled commodity derivatives (2) |
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$ |
(0.06) |
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(0.11) |
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— |
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— |
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(0.03) |
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Average realized prices after settled derivatives |
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$ |
3.95 |
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58.97 |
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45.65 |
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|
12.70 |
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|
4.52 |
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Premium / (Discount) to Index price |
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$ |
0.30 |
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(12.45) |
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|
1.66 |
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1.24 |
|
|
0.87 |
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(1) |
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Please see Antero's Quarterly Report on Form 10-Q for the quarter ended |
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(2) |
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These commodity derivative instruments include contracts attributable to |
All-in cash expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was
First Quarter 2025 Operating Results
Antero placed 26 horizontal Marcellus wells to sales during the first quarter with an average lateral length of 13,700 feet. Sixteen of these wells have been on line for approximately 60 days with an average rate per well of 32 MMcfe/d, including 1,458 Bbl/d of liquids per well assuming 25% ethane recovery.
First Quarter 2025
Antero's drilling and completion capital expenditures for the three months ended
Conference Call
A conference call is scheduled on
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):
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Three Months Ended |
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2024 |
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2025 |
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Net income and comprehensive income attributable to |
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$ |
22,730 |
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|
207,971 |
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Net income and comprehensive income attributable to noncontrolling interests |
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|
11,942 |
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|
11,495 |
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Unrealized commodity derivative (gains) losses |
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(8,078) |
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60,654 |
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Amortization of deferred revenue, VPP |
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(6,738) |
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(6,230) |
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Loss (gain) on sale of assets |
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188 |
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(575) |
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Impairment of property and equipment |
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5,190 |
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5,618 |
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Equity-based compensation |
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16,077 |
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15,145 |
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Loss on early extinguishment of debt |
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— |
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2,899 |
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Equity in earnings of unconsolidated affiliate |
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(23,347) |
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(28,661) |
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Contract termination, loss contingency and settlements |
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2,039 |
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(1,308) |
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Tax effect of reconciling items (1) |
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3,189 |
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(10,387) |
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23,192 |
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256,621 |
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Martica adjustments (2) |
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(14,696) |
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(9,963) |
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Adjusted Net Income |
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$ |
8,496 |
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246,658 |
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Diluted Weighted Average Common Shares Outstanding (3) |
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312,503 |
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314,798 |
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(1) |
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Deferred taxes were approximately 22% for 2024 and 2025. |
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(2) |
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Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. |
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(3) |
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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 |
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):
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2024 |
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2025 |
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Credit Facility |
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$ |
393,200 |
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304,100 |
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8.375% senior notes due 2026 |
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96,870 |
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— |
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7.625% senior notes due 2029 |
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407,115 |
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388,475 |
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5.375% senior notes due 2030 |
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600,000 |
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600,000 |
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Unamortized debt issuance costs |
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(7,955) |
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(7,195) |
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Total long-term debt |
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$ |
1,489,230 |
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1,285,380 |
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Less: Cash and cash equivalents |
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— |
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— |
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Net Debt |
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$ |
1,489,230 |
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1,285,380 |
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Free Cash Flow
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 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.
The Company has not provided projected net cash provided by operating activities or a reconciliation of 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.
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 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 Free Cash Flow reported by different companies. Free Cash Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations.
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure that we define as net income, adjusted for certain items detailed below.
Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss, cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures, working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because this measure:
- is widely used by investors in the oil and natural gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors;
- helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating structure;
- is used by our management team for various purposes, including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting: and
- is used by our Board of Directors as a performance measure in determining executive compensation.
There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies.
The GAAP measures most directly comparable to Adjusted EBITDAX are net income and net cash provided by operating activities. The following table represents a reconciliation of Antero's net income, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero's Adjusted EBITDAX to net cash provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three months ended
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Three Months Ended |
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2024 |
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2025 |
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Reconciliation of net income to Adjusted EBITDAX: |
|
|
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Net income and comprehensive income attributable to |
|
$ |
22,730 |
|
|
207,971 |
|
|
Net income and comprehensive income attributable to noncontrolling interests |
|
|
11,942 |
|
|
11,495 |
|
|
Unrealized commodity derivative (gains) losses |
|
|
(8,078) |
|
|
60,654 |
|
|
Amortization of deferred revenue, VPP |
|
|
(6,738) |
|
|
(6,230) |
|
|
Loss (gain) on sale of assets |
|
|
188 |
|
|
(575) |
|
|
Interest expense, net |
|
|
30,187 |
|
|
23,368 |
|
|
Loss on early extinguishment of debt |
|
|
— |
|
|
2,899 |
|
|
Income tax expense |
|
|
6,227 |
|
|
54,400 |
|
|
Depletion, depreciation, amortization and accretion |
|
|
191,251 |
|
|
187,291 |
|
|
Impairment of property and equipment |
|
|
5,190 |
|
|
5,618 |
|
|
Exploration expense |
|
|
602 |
|
|
668 |
|
|
Equity-based compensation expense |
|
|
16,077 |
|
|
15,145 |
|
|
Equity in earnings of unconsolidated affiliate |
|
|
(23,347) |
|
|
(28,661) |
|
|
Dividends from unconsolidated affiliate |
|
|
31,285 |
|
|
31,314 |
|
|
Contract termination, loss contingency, transaction expense and other |
|
|
2,020 |
|
|
463 |
|
|
|
|
|
279,536 |
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|
565,820 |
|
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Martica related adjustments (1) |
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|
(17,449) |
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|
(16,392) |
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Adjusted EBITDAX |
|
$ |
262,087 |
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|
549,428 |
|
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|
|
|
|
|
|
|
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|
Reconciliation of our Adjusted EBITDAX to net cash provided by operating |
|
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Adjusted EBITDAX |
|
$ |
262,087 |
|
|
549,428 |
|
|
Martica related adjustments (1) |
|
|
17,449 |
|
|
16,392 |
|
|
Interest expense, net |
|
|
(30,187) |
|
|
(23,368) |
|
|
Amortization of debt issuance costs and other |
|
|
715 |
|
|
466 |
|
|
Exploration expense |
|
|
(602) |
|
|
(668) |
|
|
Changes in current assets and liabilities |
|
|
14,361 |
|
|
(81,748) |
|
|
Contract termination, loss contingency, transaction expense and other |
|
|
(1,820) |
|
|
(1,771) |
|
|
Other items |
|
|
(393) |
|
|
(992) |
|
|
Net cash provided by operating activities |
|
$ |
261,610 |
|
|
457,739 |
|
|
|
|
|
|
|
|
(1) |
|
Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. |
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Twelve |
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Months Ended |
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Reconciliation of net income to Adjusted EBITDAX: |
|
|
|
|
Net income and comprehensive income attributable to Antero Resources Corporation |
|
$ |
242,467 |
|
Net income and comprehensive income attributable to noncontrolling interests |
|
|
36,024 |
|
Unrealized commodity derivative losses |
|
|
78,155 |
|
Amortization of deferred revenue, VPP |
|
|
(26,593) |
|
Loss on sale of assets |
|
|
99 |
|
Interest expense, net |
|
|
111,388 |
|
Loss on early extinguishment of debt |
|
|
3,427 |
|
Income tax benefit |
|
|
(70,012) |
|
Depletion, depreciation, amortization, and accretion |
|
|
761,867 |
|
Impairment of property and equipment |
|
|
47,861 |
|
Exploration |
|
|
2,684 |
|
Equity-based compensation expense |
|
|
65,530 |
|
Equity in earnings of unconsolidated affiliate |
|
|
(99,101) |
|
Dividends from unconsolidated affiliate |
|
|
125,226 |
|
Contract termination, loss contingency, transaction expense and other |
|
|
3,376 |
|
|
|
|
1,282,398 |
|
Martica related adjustments (1) |
|
|
(62,732) |
|
Adjusted EBITDAX |
|
$ |
1,219,666 |
|
|
|
|
|
|
|
(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):
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Three Months Ended |
||||
|
|
|
2024 |
|
2025 |
||
|
Drilling and completion costs (cash basis) |
|
$ |
188,905 |
|
|
175,134 |
|
Change in accrued capital costs |
|
|
(1,746) |
|
|
(17,982) |
|
Adjusted drilling and completion costs (accrual basis) |
|
$ |
187,159 |
|
|
157,152 |
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," 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
|
Condensed Consolidated Balance Sheets (In thousands, except per share amounts) |
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(Unaudited) |
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|
2024 |
|
2025 |
|
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|
Assets |
|
||||||
|
Current assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
$ |
34,413 |
|
|
40,385 |
|
|
Accrued revenue |
|
|
453,613 |
|
|
513,382 |
|
|
Derivative instruments |
|
|
1,050 |
|
|
358 |
|
|
Prepaid expenses |
|
|
12,423 |
|
|
12,693 |
|
|
Other current assets |
|
|
6,047 |
|
|
7,967 |
|
|
Total current assets |
|
|
507,546 |
|
|
574,785 |
|
|
Property and equipment: |
|
|
|
|
|
|
|
|
Oil and gas properties, at cost (successful efforts method): |
|
|
|
|
|
|
|
|
Unproved properties |
|
|
879,483 |
|
|
883,042 |
|
|
Proved properties |
|
|
14,395,680 |
|
|
14,444,544 |
|
|
Gathering systems and facilities |
|
|
5,802 |
|
|
5,802 |
|
|
Other property and equipment |
|
|
105,871 |
|
|
107,378 |
|
|
|
|
|
15,386,836 |
|
|
15,440,766 |
|
|
Less accumulated depletion, depreciation and amortization |
|
|
(5,699,286) |
|
|
(5,768,456) |
|
|
Property and equipment, net |
|
|
9,687,550 |
|
|
9,672,310 |
|
|
Operating leases right-of-use assets |
|
|
2,549,398 |
|
|
2,526,305 |
|
|
Derivative instruments |
|
|
1,296 |
|
|
778 |
|
|
Investment in unconsolidated affiliate |
|
|
231,048 |
|
|
239,672 |
|
|
Other assets |
|
|
33,212 |
|
|
35,471 |
|
|
Total assets |
|
$ |
13,010,050 |
|
|
13,049,321 |
|
|
Liabilities and Equity |
|
||||||
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
62,213 |
|
|
55,268 |
|
|
Accounts payable, related parties |
|
|
111,066 |
|
|
118,262 |
|
|
Accrued liabilities |
|
|
402,591 |
|
|
309,131 |
|
|
Revenue distributions payable |
|
|
315,932 |
|
|
364,219 |
|
|
Derivative instruments |
|
|
31,792 |
|
|
84,054 |
|
|
Short-term lease liabilities |
|
|
493,894 |
|
|
515,880 |
|
|
Deferred revenue, VPP |
|
|
25,264 |
|
|
24,830 |
|
|
Other current liabilities |
|
|
3,175 |
|
|
13,702 |
|
|
Total current liabilities |
|
|
1,445,927 |
|
|
1,485,346 |
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Long-term debt |
|
|
1,489,230 |
|
|
1,285,380 |
|
|
Deferred income tax liability, net |
|
|
693,341 |
|
|
746,803 |
|
|
Derivative instruments |
|
|
17,233 |
|
|
24,416 |
|
|
Long-term lease liabilities |
|
|
2,050,337 |
|
|
2,005,829 |
|
|
Deferred revenue, VPP |
|
|
35,448 |
|
|
29,653 |
|
|
Other liabilities |
|
|
62,001 |
|
|
63,111 |
|
|
Total liabilities |
|
|
5,793,517 |
|
|
5,640,538 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, |
|
|
— |
|
|
— |
|
|
Common stock, |
|
|
3,111 |
|
|
3,115 |
|
|
Additional paid-in capital |
|
|
5,909,373 |
|
|
5,902,893 |
|
|
Retained earnings |
|
|
1,109,166 |
|
|
1,312,366 |
|
|
Total stockholders' equity |
|
|
7,021,650 |
|
|
7,218,374 |
|
|
Noncontrolling interests |
|
|
194,883 |
|
|
190,409 |
|
|
Total equity |
|
|
7,216,533 |
|
|
7,408,783 |
|
|
Total liabilities and equity |
|
$ |
13,010,050 |
|
|
13,049,321 |
|
|
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) |
|||||||
|
|
|||||||
|
|
|
Three Months Ended |
|
||||
|
|
|
2024 |
|
2025 |
|
||
|
Revenue and other: |
|
|
|
|
|
|
|
|
Natural gas sales |
|
$ |
474,133 |
|
|
780,005 |
|
|
Natural gas liquids sales |
|
|
517,862 |
|
|
561,432 |
|
|
Oil sales |
|
|
64,717 |
|
|
50,335 |
|
|
Commodity derivative fair value gains (losses) |
|
|
9,446 |
|
|
(71,671) |
|
|
Marketing |
|
|
48,520 |
|
|
25,558 |
|
|
Amortization of deferred revenue, VPP |
|
|
6,738 |
|
|
6,230 |
|
|
Other revenue and income |
|
|
855 |
|
|
818 |
|
|
Total revenue |
|
|
1,122,271 |
|
|
1,352,707 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Lease operating |
|
|
29,121 |
|
|
33,986 |
|
|
Gathering, compression, processing and transportation |
|
|
672,281 |
|
|
695,017 |
|
|
Production and ad valorem taxes |
|
|
58,168 |
|
|
55,299 |
|
|
Marketing |
|
|
59,813 |
|
|
42,770 |
|
|
Exploration |
|
|
602 |
|
|
668 |
|
|
General and administrative (including equity-based compensation expense of |
|
|
55,862 |
|
|
62,445 |
|
|
Depletion, depreciation and amortization |
|
|
190,475 |
|
|
186,352 |
|
|
Impairment of property and equipment |
|
|
5,190 |
|
|
5,618 |
|
|
Accretion of asset retirement obligations |
|
|
776 |
|
|
939 |
|
|
Contract termination, loss contingency and settlements |
|
|
2,039 |
|
|
(1,308) |
|
|
Loss (gain) on sale of assets |
|
|
188 |
|
|
(575) |
|
|
Other operating expense |
|
|
17 |
|
|
24 |
|
|
Total operating expenses |
|
|
1,074,532 |
|
|
1,081,235 |
|
|
Operating income |
|
|
47,739 |
|
|
271,472 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(30,187) |
|
|
(23,368) |
|
|
Equity in earnings of unconsolidated affiliate |
|
|
23,347 |
|
|
28,661 |
|
|
Loss on early extinguishment of debt |
|
|
— |
|
|
(2,899) |
|
|
Total other income (expense) |
|
|
(6,840) |
|
|
2,394 |
|
|
Income before income taxes |
|
|
40,899 |
|
|
273,866 |
|
|
Income tax expense |
|
|
(6,227) |
|
|
(54,400) |
|
|
Net income and comprehensive income including noncontrolling interests |
|
|
34,672 |
|
|
219,466 |
|
|
Less: net income and comprehensive income attributable to noncontrolling interests |
|
|
11,942 |
|
|
11,495 |
|
|
Net income and comprehensive income attributable to |
|
$ |
22,730 |
|
|
207,971 |
|
|
|
|
|
|
|
|
|
|
|
Net income per common share—basic |
|
$ |
0.07 |
|
|
0.67 |
|
|
Net income per common share—diluted |
|
$ |
0.07 |
|
|
0.66 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
304,943 |
|
|
311,328 |
|
|
Diluted |
|
|
312,503 |
|
|
314,798 |
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) |
|||||||
|
|
|||||||
|
|
|
Three Months Ended |
|
||||
|
|
|
2024 |
|
2025 |
|
||
|
Cash flows provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Net income including noncontrolling interests |
|
$ |
34,672 |
|
|
219,466 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depletion, depreciation, amortization and accretion |
|
|
191,251 |
|
|
187,291 |
|
|
Impairments |
|
|
5,190 |
|
|
5,618 |
|
|
Commodity derivative fair value losses (gains) |
|
|
(9,446) |
|
|
71,671 |
|
|
Gains (losses) on settled commodity derivatives |
|
|
1,368 |
|
|
(11,017) |
|
|
Deferred income tax expense |
|
|
6,156 |
|
|
53,462 |
|
|
Equity-based compensation expense |
|
|
16,077 |
|
|
15,145 |
|
|
Equity in earnings of unconsolidated affiliate |
|
|
(23,347) |
|
|
(28,661) |
|
|
Dividends of earnings from unconsolidated affiliate |
|
|
31,285 |
|
|
31,314 |
|
|
Amortization of deferred revenue |
|
|
(6,738) |
|
|
(6,230) |
|
|
Amortization of debt issuance costs and other |
|
|
715 |
|
|
466 |
|
|
Settlement of asset retirement obligations |
|
|
(322) |
|
|
(54) |
|
|
Contract termination, loss contingency and settlements |
|
|
200 |
|
|
(1,308) |
|
|
Loss (gain) on sale of assets |
|
|
188 |
|
|
(575) |
|
|
Loss on early extinguishment of debt |
|
|
— |
|
|
2,899 |
|
|
Changes in current assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
2,498 |
|
|
(5,972) |
|
|
Accrued revenue |
|
|
74,587 |
|
|
(59,769) |
|
|
Prepaid expenses and other current assets |
|
|
(2,701) |
|
|
(2,190) |
|
|
Accounts payable including related parties |
|
|
3,244 |
|
|
11,995 |
|
|
Accrued liabilities |
|
|
(60,825) |
|
|
(86,552) |
|
|
Revenue distributions payable |
|
|
(3,222) |
|
|
48,286 |
|
|
Other current liabilities |
|
|
780 |
|
|
12,454 |
|
|
Net cash provided by operating activities |
|
|
261,610 |
|
|
457,739 |
|
|
Cash flows provided by (used in) investing activities: |
|
|
|
|
|
|
|
|
Additions to unproved properties |
|
|
(27,044) |
|
|
(30,407) |
|
|
Drilling and completion costs |
|
|
(188,905) |
|
|
(175,134) |
|
|
Additions to other property and equipment |
|
|
(6,500) |
|
|
(604) |
|
|
Proceeds from asset sales |
|
|
363 |
|
|
575 |
|
|
Change in other assets |
|
|
(4,724) |
|
|
(2,321) |
|
|
Net cash used in investing activities |
|
|
(226,810) |
|
|
(207,891) |
|
|
Cash flows provided by (used in) financing activities: |
|
|
|
|
|
|
|
|
Repurchases of common stock |
|
|
— |
|
|
(10,094) |
|
|
Repayment of senior notes |
|
|
— |
|
|
(118,046) |
|
|
Borrowings on Credit Facility |
|
|
1,125,700 |
|
|
1,308,400 |
|
|
Repayments on Credit Facility |
|
|
(1,127,600) |
|
|
(1,397,500) |
|
|
Distributions to noncontrolling interests in |
|
|
(23,617) |
|
|
(15,969) |
|
|
Employee tax withholding for settlement of equity-based compensation awards |
|
|
(9,024) |
|
|
(16,298) |
|
|
Other |
|
|
(259) |
|
|
(341) |
|
|
Net cash used in financing activities |
|
|
(34,800) |
|
|
(249,848) |
|
|
Net increase in cash and cash equivalents |
|
|
— |
|
|
— |
|
|
Cash and cash equivalents, beginning of period |
|
|
— |
|
|
— |
|
|
Cash and cash equivalents, end of period |
|
$ |
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid during the period for interest |
|
$ |
48,252 |
|
|
43,078 |
|
|
Decrease in accounts payable and accrued liabilities for additions to property and equipment |
|
$ |
(3,275) |
|
|
(19,271) |
|
The following table sets forth selected financial data for the three months ended
|
|
|
Three Months Ended |
|
Amount of |
|
|
|
|||||
|
|
|
|
|
Increase |
|
Percent |
|
|||||
|
|
|
2024 |
|
2025 |
|
(Decrease) |
|
Change |
|
|||
|
Operating revenues and other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
|
$ |
474,133 |
|
|
780,005 |
|
|
305,872 |
|
65 |
% |
|
Natural gas liquids sales |
|
|
517,862 |
|
|
561,432 |
|
|
43,570 |
|
8 |
% |
|
Oil sales |
|
|
64,717 |
|
|
50,335 |
|
|
(14,382) |
|
(22) |
% |
|
Commodity derivative fair value gains (losses) |
|
|
9,446 |
|
|
(71,671) |
|
|
(81,117) |
|
* |
|
|
Marketing |
|
|
48,520 |
|
|
25,558 |
|
|
(22,962) |
|
(47) |
% |
|
Amortization of deferred revenue, VPP |
|
|
6,738 |
|
|
6,230 |
|
|
(508) |
|
(8) |
% |
|
Other revenue and income |
|
|
855 |
|
|
818 |
|
|
(37) |
|
(4) |
% |
|
Total revenue |
|
|
1,122,271 |
|
|
1,352,707 |
|
|
230,436 |
|
21 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
|
29,121 |
|
|
33,986 |
|
|
4,865 |
|
17 |
% |
|
Gathering and compression |
|
|
223,530 |
|
|
236,134 |
|
|
12,604 |
|
6 |
% |
|
Processing |
|
|
255,795 |
|
|
261,155 |
|
|
5,360 |
|
2 |
% |
|
Transportation |
|
|
192,956 |
|
|
197,728 |
|
|
4,772 |
|
2 |
% |
|
Production and ad valorem taxes |
|
|
58,168 |
|
|
55,299 |
|
|
(2,869) |
|
(5) |
% |
|
Marketing |
|
|
59,813 |
|
|
42,770 |
|
|
(17,043) |
|
(28) |
% |
|
Exploration |
|
|
602 |
|
|
668 |
|
|
66 |
|
11 |
% |
|
General and administrative (excluding equity-based compensation) |
|
|
39,785 |
|
|
47,300 |
|
|
7,515 |
|
19 |
% |
|
Equity-based compensation |
|
|
16,077 |
|
|
15,145 |
|
|
(932) |
|
(6) |
% |
|
Depletion, depreciation and amortization |
|
|
190,475 |
|
|
186,352 |
|
|
(4,123) |
|
(2) |
% |
|
Impairment of property and equipment |
|
|
5,190 |
|
|
5,618 |
|
|
428 |
|
8 |
% |
|
Accretion of asset retirement obligations |
|
|
776 |
|
|
939 |
|
|
163 |
|
21 |
% |
|
Contract termination, loss contingency and settlements |
|
|
2,039 |
|
|
(1,308) |
|
|
(3,347) |
|
* |
|
|
Gain (loss) on sale of assets |
|
|
188 |
|
|
(575) |
|
|
(763) |
|
* |
|
|
Other expense |
|
|
17 |
|
|
24 |
|
|
7 |
|
41 |
% |
|
Total operating expenses |
|
|
1,074,532 |
|
|
1,081,235 |
|
|
6,703 |
|
1 |
% |
|
Operating income |
|
|
47,739 |
|
|
271,472 |
|
|
223,733 |
|
469 |
% |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(30,187) |
|
|
(23,368) |
|
|
6,819 |
|
(23) |
% |
|
Equity in earnings of unconsolidated affiliate |
|
|
23,347 |
|
|
28,661 |
|
|
5,314 |
|
23 |
% |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
(2,899) |
|
|
(2,899) |
|
* |
|
|
Total other income (expense) |
|
|
(6,840) |
|
|
2,394 |
|
|
9,234 |
|
* |
|
|
Income before income taxes |
|
|
40,899 |
|
|
273,866 |
|
|
232,967 |
|
570 |
% |
|
Income tax expense |
|
|
(6,227) |
|
|
(54,400) |
|
|
(48,173) |
|
774 |
% |
|
Net income and comprehensive income including noncontrolling interests |
|
|
34,672 |
|
|
219,466 |
|
|
184,794 |
|
533 |
% |
|
Less: net income and comprehensive income attributable to noncontrolling interests |
|
|
11,942 |
|
|
11,495 |
|
|
(447) |
|
(4) |
% |
|
Net income and comprehensive income attributable to |
|
|
22,730 |
|
|
207,971 |
|
|
185,241 |
|
815 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDAX |
|
$ |
262,087 |
|
|
549,428 |
|
|
287,341 |
|
110 |
% |
|
|
|
|
|
|
* |
Not meaningful |
The following table sets forth selected financial data for the three months ended
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|||
|
|
|
Three Months Ended |
|
Amount of |
|
|
|
|||||
|
|
|
|
|
Increase |
|
Percent |
|
|||||
|
|
|
2024 |
|
2025 |
|
(Decrease) |
|
Change |
|
|||
|
Production data (1) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (Bcf) |
|
|
202 |
|
|
195 |
|
|
(7) |
|
(3) |
% |
|
C2 Ethane (MBbl) |
|
|
6,760 |
|
|
7,442 |
|
|
682 |
|
10 |
% |
|
C3+ NGLs (MBbl) |
|
|
10,564 |
|
|
10,229 |
|
|
(335) |
|
(3) |
% |
|
Oil (MBbl) |
|
|
1,035 |
|
|
852 |
|
|
(183) |
|
(18) |
% |
|
Combined (Bcfe) |
|
|
312 |
|
|
306 |
|
|
(6) |
|
(2) |
% |
|
Daily combined production (MMcfe/d) |
|
|
3,426 |
|
|
3,397 |
|
|
(29) |
|
(1) |
% |
|
Average prices before effects of derivative settlements (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
|
$ |
2.35 |
|
|
4.01 |
|
|
1.66 |
|
71 |
% |
|
C2 Ethane (per Bbl) (4) |
|
$ |
9.32 |
|
|
12.70 |
|
|
3.38 |
|
36 |
% |
|
C3+ NGLs (per Bbl) |
|
$ |
43.05 |
|
|
45.65 |
|
|
2.60 |
|
6 |
% |
|
Oil (per Bbl) |
|
$ |
62.53 |
|
|
59.08 |
|
|
(3.45) |
|
(6) |
% |
|
Weighted Average Combined (per Mcfe) |
|
$ |
3.39 |
|
|
4.55 |
|
|
1.16 |
|
34 |
% |
|
Average realized prices after effects of derivative settlements (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per Mcf) |
|
$ |
2.36 |
|
|
3.95 |
|
|
1.59 |
|
67 |
% |
|
C2 Ethane (per Bbl) (4) |
|
$ |
9.32 |
|
|
12.70 |
|
|
3.38 |
|
36 |
% |
|
C3+ NGLs (per Bbl) |
|
$ |
43.03 |
|
|
45.65 |
|
|
2.62 |
|
6 |
% |
|
Oil (per Bbl) |
|
$ |
62.39 |
|
|
58.97 |
|
|
(3.42) |
|
(5) |
% |
|
Weighted Average Combined (per Mcfe) |
|
$ |
3.39 |
|
|
4.52 |
|
|
1.13 |
|
33 |
% |
|
Average costs (per Mcfe): |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease operating |
|
$ |
0.09 |
|
|
0.11 |
|
|
0.02 |
|
22 |
% |
|
Gathering and compression |
|
$ |
0.72 |
|
|
0.77 |
|
|
0.05 |
|
7 |
% |
|
Processing |
|
$ |
0.82 |
|
|
0.85 |
|
|
0.03 |
|
4 |
% |
|
Transportation |
|
$ |
0.62 |
|
|
0.65 |
|
|
0.03 |
|
5 |
% |
|
Production and ad valorem taxes |
|
$ |
0.19 |
|
|
0.18 |
|
|
(0.01) |
|
(5) |
% |
|
Marketing expense, net |
|
$ |
0.04 |
|
|
0.06 |
|
|
0.02 |
|
50 |
% |
|
General and administrative (excluding equity-based compensation) |
|
$ |
0.13 |
|
|
0.15 |
|
|
0.02 |
|
15 |
% |
|
Depletion, depreciation, amortization and accretion |
|
$ |
0.61 |
|
|
0.61 |
|
|
— |
|
* |
|
|
|
||
|
|
* |
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 sales prices shown in the table reflect both the before and after effects of the Company's settled commodity derivatives. The calculation of such after effects includes gains on settlements of commodity derivatives, which do not qualify for hedge accounting because the Company does not designate or document them as hedges for accounting purposes. 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 does not necessarily reflect their relative economic value. |
|
|
(4) |
The average realized price for the three months ended |
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