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Antero Resources Corp

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:

  • Net production averaged a company record 3.9 Bcfe/d, an increase of 13% from the year ago period
    • Natural gas production averaged 2.6 Bcf/d, an increase of 21% from the year ago period
    • Liquids production averaged 206 MBbl/d, in line with the year ago period 
  • Realized a pre-hedge natural gas price of $5.57 per Mcf, a $0.53 per Mcf premium to NYMEX
  • Realized a pre-hedge C3+ NGL price of $37.83 per barrel, a $0.94 per barrel premium to the benchmark
  • Net income was $535 million and Adjusted Net Income was $357 million (Non-GAAP)
  • Adjusted EBITDAX was $723 million (Non-GAAP) and net cash provided by operating activities was $859 million, increases of 32% and 88% compared to the prior year period, respectively
  • Adjusted Free Cash Flow was $657 million (Non-GAAP)
  • Closed HG acquisition in early February and completed the Ohio Utica Shale divestiture in late February
  • Full HG quarter impact during the second quarter of 2026 is expected to result in 6% production growth and 15% lower cash costs per Mcfe from the first quarter of 2026

Michael Kennedy, CEO and President of Antero Resources commented, "During the first quarter we achieved record production, which was 13% above the year ago period. This production growth drove one of the highest quarterly EBITDAX and Free Cash Flow results in company history. These results reflect a tremendous performance from our operations team which navigated the harsh conditions of Winter Storm Fern without having to shut-in any volumes. This enabled Antero to deliver critical natural gas to the various regions that needed it most, a truly remarkable achievement by our people in the field."

Mr. Kennedy continued, "Looking ahead, the recent geopolitical events have highlighted the advantages of Antero's corporate strategy. We are the largest producer exporter of NGLs in the U.S., selling the majority of our NGL barrels into international markets.  We expect recent global supply outages and disruptions to lead to increasing risk premiums for U.S. NGL barrels both in the near term and in the years ahead. At the same time, we have the highest LNG exposure among Appalachian producers, selling 2.3 Bcf/d of production to sales points along the LNG fairway. We are seeing growing interest from global NGL and LNG buyers that are looking to increase exposure to U.S. supply. This prioritization toward U.S. supply supports higher export utilization and more attractive price premiums at our sales points along the coasts. These attributes uniquely position us to benefit from today's rising global demand for U.S. energy."

Brendan Krueger, CFO of Antero Resources said, "During the first quarter we closed on the HG acquisition and began integration of the new asset. The impressive operational and financial achievements mentioned above led to realizations for natural gas, NGLs and ethane all coming in ahead of expectations during the quarter. This allowed us to reduce debt related to the HG acquisition ahead of our previously communicated targets. Importantly, as a result of the transactions, we expect our net production to increase by approximately 700 MMcfe/d on an annual basis. Additionally, the HG acquisition added 385,000 net acres and 400 drilling locations, while only increasing our Net Debt by $1.5 billion from the year-end 2025 level."

For a discussion of the non-GAAP financial measures including Adjusted Net Income, Adjusted EBITDAX, Adjusted Free Cash Flow and Net Debt please see "Non-GAAP Financial Measures."

Cash Cost Reduction

Antero expects cash production expense for the remainder of 2026 to be $2.20 to $2.30 per Mcfe. This reduced range reflects a $0.25 per Mcfe, or 10% reduction from the full-year average in 2025 and a $0.39 per Mcfe, or 15% reduction from the first quarter of 2026. Inclusive of G&A and net marketing expense the total cost reduction is expected to be $0.30 per Mcfe. The production and development of the HG assets are expected to result in cash production expenses remaining in that range going forward, assuming current natural gas strip pricing.

Second Quarter and Full-Year 2026 Guidance Update

Antero expects second quarter production to average 4.1 Bcfe/d, a 6% increase from the first quarter of 2026, driven by a full quarter of production from the HG acquisition. The second half of 2026 is expected to average approximately 4.2 Bcfe/d. This results in a full year average of approximately 4.1 Bcfe/d, unchanged from prior guidance. This annual guidance reflects approximately 20% growth year-over-year. The Company is increasing its ethane realized price premium to Mont Belvieu to $2.00 to $3.00 per barrel, reflecting a $1.00 per barrel increase at the midpoint from the prior guidance range. The Company is reducing its cash production expense guidance to a range of $2.25 to $2.35 per Mcfe, a $0.10 per Mcfe reduction at the midpoint. The lower cash production expense is due primarily to the impact of the integration of the lower production costs associated with the HG assets.

2026 Initial


2026 Revised

Full Year 2026 Guidance Updates



Low

High


Low


High

Ethane Realized Price Premium vs. Mont Belvieu ($/Bbl)



$1.00


$2.00


$2.00


$3.00

Cash Production Expense ($/Mcfe)(1)



$2.35


$2.45


$2.25


$2.35

(1)

Includes lease operating, gathering, compression, processing and transportation expenses ("GP&T") and production and ad valorem taxes.

Note: Any 2026 guidance items not discussed in this release are unchanged from previously stated guidance.

Natural Gas Hedge Program

The following tables detail Antero's swap and collar hedge position as of the publication of April 24, 2026. For more information on Antero's hedge portfolio, including basis hedges, please see the presentation titled "Hedges and Guidance Presentation" on the Company's website.

Swaps




Natural Gas
(MMBtu/d)



Weighted
Average
Index Price
($/MMBtu)




April – December 2026 NYMEX Henry Hub Swap


1,300,000


$

3.91




2027 NYMEX Henry Hub Swap


935,000


$

3.86




















Weighted Average Index



Collars




Natural Gas
(MMBtu/d)



 Floor
Price
($/MMBtu)



Ceiling Price
($/MMBtu)



April – December 2026 NYMEX Henry Hub Costless Collars


575,000


$

3.25


$

5.66



2027 NYMEX Henry Hub Costless Collars


80,000


$

3.52


$

4.64
























Adjusted Free Cash Flow

During the first quarter of 2026, Adjusted Free Cash Flow was $657 million.








Three Months Ended
March 31,




2025


2026


Net cash provided by operating activities


$

457,739



859,058


Less: Capital expenditures



(206,145)



(206,101)


Less: Distributions to non-controlling interests in Martica



(15,969)



(17,650)


Plus: Transaction expense



—



22,144


Adjusted Free Cash Flow


$

235,625



657,451


Changes in Working Capital



101,019



(224,134)


Adjusted Free Cash Flow before Changes in Working Capital


$

336,644



433,317


First Quarter 2026 Financial Results

Net daily natural gas equivalent production in the first quarter averaged 3.9 Bcfe/d, including 206 MBbl/d of liquids. Antero's average realized natural gas price before hedges was $5.57 per Mcf, a $0.53 per Mcf premium to the benchmark Henry Hub index price. Antero's average realized C3+ NGL price before hedges was $37.83 per barrel, representing a $0.94 per barrel premium to the benchmark index price.

The following table details average net production and average realized prices for the three months ended March 31, 2026:

















Three Months Ended March 31, 2026




Natural
Gas
(MMcf/d)


Oil

(Bbl/d)


C3+ NGLs
(Bbl/d)


Ethane
(Bbl/d)


Combined
Natural
Gas
Equivalent
(MMcfe/d)


Average Net Production



2,617



9,067



120,800



75,956



3,852
























Three Months Ended March 31, 2026

















Combined







Natural











Natural Gas






Gas


Oil


C3+ NGLs


Ethane


Equivalent




Average Realized Prices


($/Mcf)


($/Bbl)


($/Bbl)


($/Bbl)


($/Mcfe)




Average realized prices before settled derivatives


$

5.57



57.22



37.83



13.51



5.37




Index price (1)


$

5.04



71.93



36.89



9.87



5.04




Premium / (Discount) to Index price


$

0.53



(14.71)



0.94



3.64



0.33























Settled commodity derivatives


$

(0.71)



—



0.07



—



(0.48)




Average realized prices after settled derivatives


$

4.86



57.22



37.90



13.51



4.89




Premium / (Discount) to Index price


$

(0.18)



(14.71)



1.01



3.64



(0.15)





































(1)

Please see Antero's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, for more information on these index and average realized prices.

All-in cash expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was $2.64 per Mcfe in the first quarter, as compared to $2.56 per Mcfe during the first quarter of 2025. The increase compared to the prior year was due to higher fuel costs related to higher natural gas prices during the quarter. Net marketing expense was $0.06 per Mcfe during the first quarter of 2026, unchanged from the first quarter of 2025.

Operating Results

Antero placed 20 Marcellus wells to sales during the first quarter with an average lateral length of 11,652 feet. Thirteen of these wells have been on line for approximately 60 days with an average rate per well of 25 MMcfe/d, including 1,457 Bbl/d of liquids per well assuming 25% ethane recovery. In addition, Antero had a number of notable company operating achievements, including:

  • Averaged 13.8 stages per day during the quarter, an increase from 13.4 completion stages per day average in 2025
  • Established a company record for drilling days per well of just under 9 days, a 9% improvement from the average in 2025
  • Turned-in-line first HG pad in late April, a 6-well pad located in the liquids-rich window with total lateral length drilled of 110,000 feet

First Quarter 2026 Capital Investment

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



600,000


5.400% senior notes due 2036



—



750,000


Unamortized debt issuance costs



(5,977)



(21,703)


Total long-term debt


$

1,397,976



2,664,797


Less: Cash, cash equivalents and restricted cash



(210,000)



—


Net Debt


$

1,187,976



2,664,797


Adjusted Free Cash Flow

Adjusted Free Cash Flow is a measure of financial performance not calculated under GAAP and should not be considered in isolation or as a substitute for cash flow from operating, investing, or financing activities, as an indicator of cash flow or as a measure of liquidity. The Company defines Adjusted Free Cash Flow as net cash provided by operating activities, less capital expenditures, which includes additions to unproved properties, drilling and completion costs and additions to other property and equipment, less distributions to non-controlling interests in Martica, plus transaction expenses.

The Company has not provided projected net cash provided by operating activities or a reconciliation of Adjusted Free Cash Flow to projected net cash provided by operating activities, the most comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to project these timing differences with any reasonable degree of accuracy without unreasonable efforts.

Adjusted Free Cash Flow is a useful indicator of the Company's ability to internally fund its activities, service or incur additional debt and estimate our ability to return capital to shareholders. There are significant limitations to using Adjusted Free Cash Flow as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company's net income, the lack of comparability of results of operations of different companies and the different methods of calculating Adjusted Free Cash Flow reported by different companies. Adjusted Free Cash Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations.

Adjusted EBITDAX

Adjusted EBITDAX is a non-GAAP financial measure that we define as net income, adjusted for certain items detailed below. 

Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss, cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures, working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because this measure:

  • is widely used by investors in the oil and natural gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors;
  • helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating structure;
  • is used by our management team for various purposes, including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting; and
  • is used by our Board of Directors as a performance measure in determining executive compensation. 

There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies.

The GAAP measures most directly comparable to Adjusted EBITDAX are net income and net cash provided by operating activities. The following table represents a reconciliation of Antero's net income, including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero's Adjusted EBITDAX to net cash provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three months ended March 31, 2025 and 2026 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these adjustments are disclosed in the table below as Martica related adjustments.








Three Months Ended March 31,




2025


2026


Reconciliation of net income to Adjusted EBITDAX:








Net income and comprehensive income attributable to Antero Resources Corporation


$

207,971



535,216


Net income and comprehensive income attributable to noncontrolling interests



11,495



12,997


Unrealized commodity derivative (gains) losses



60,654



(200,158)


Amortization of deferred revenue, VPP



(6,230)



(5,795)


Gain on sale of assets



(575)



(45,950)


Interest expense, net



23,368



36,963


Loss on early extinguishment of debt



2,899



6,742


Income tax expense



54,400



145,508


Depletion, depreciation, amortization and accretion



187,291



207,302


Impairment of property and equipment



5,618



948


Exploration expense



668



792


Equity-based compensation expense



15,145



11,733


Equity in earnings of unconsolidated affiliate



(28,661)



(30,118)


Dividends from unconsolidated affiliate



31,314



31,314


Contract termination, loss contingency and settlements



(1,308)



12,035


Transaction expense and other



1,771



22,179





565,820



741,708


Martica related adjustments (1)



(16,392)



(18,290)


Adjusted EBITDAX


$

549,428



723,418










Reconciliation of our Adjusted EBITDAX to net cash provided by operating
activities:








Adjusted EBITDAX


$

549,428



723,418


Martica related adjustments (1)



16,392



18,290


Interest expense, net



(23,368)



(36,963)


Amortization of debt issuance costs and other



466



420


Exploration expense



(668)



(792)


Changes in current assets and liabilities



(81,748)



179,857


Contract termination, loss contingency and settlements



—



(1,198)


Transaction expense and other



(2,763)



(23,974)


Net cash provided by operating activities


$

457,739



859,058


(1)

Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. 

 




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



24



22


Total operating expenses



1,081,235



1,215,674


Operating income



271,472



729,452


Other income (expense):








Interest expense, net



(23,368)



(36,963)


Equity in earnings of unconsolidated affiliate



28,661



30,118


Loss on early extinguishment of debt



(2,899)



(6,742)


Transaction expense



—



(22,144)


Total other income (expense)



2,394



(35,731)


Income before income taxes



273,866



693,721


Income tax expense



(54,400)



(145,508)


Net income and comprehensive income including noncontrolling interests



219,466



548,213


Less: net income and comprehensive income attributable to noncontrolling interests



11,495



12,997


Net income and comprehensive income attributable to Antero Resources Corporation


$

207,971



535,216










Net income per common share—basic


$

0.67



1.73


Net income per common share—diluted


$

0.66



1.72










Weighted average number of common shares outstanding:








Basic



311,328



308,933


Diluted



314,798



311,426


 

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)











Three Months Ended March 31,




2025


2026


Cash flows provided by (used in) operating activities:








Net income including noncontrolling interests


$

219,466



548,213


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








Depletion, depreciation, amortization and accretion



187,291



207,302


Impairment of property and equipment



5,618



948


Commodity derivative fair value losses (gains)



71,671



(35,023)


Losses on settled commodity derivatives



(11,017)



(165,135)


Deferred income tax expense



53,462



143,820


Equity-based compensation expense



15,145



11,733


Equity in earnings of unconsolidated affiliate



(28,661)



(30,118)


Dividends of earnings from unconsolidated affiliate



31,314



31,314


Amortization of deferred revenue



(6,230)



(5,795)


Amortization of debt issuance costs and other



466



420


Settlement of asset retirement obligations



(54)



(107)


Contract termination, loss contingency and settlements



(1,308)



10,837


Gain on sale of assets



(575)



(45,950)


Loss on early extinguishment of debt



2,899



6,742


Changes in current assets and liabilities:








Accounts receivable



(5,972)



1,302


Accrued revenue



(59,769)



49,149


Prepaid expenses and other current assets



(2,190)



4,596


Accounts payable including related parties



11,995



60,720


Accrued liabilities



(86,552)



(46,571)


Revenue distributions payable



48,286



120,021


Other current liabilities



12,454



(9,360)


Net cash provided by operating activities



457,739



859,058


Cash flows provided by (used in) investing activities:








Additions to unproved properties



(30,407)



(16,922)


Drilling and completion costs



(175,134)



(184,551)


Additions to other property and equipment



(604)



(4,628)


Acquisition of HG Production



—



(2,794,308)


Acquisitions of oil and gas properties



—



(7,631)


Proceeds from asset sales



575



737,123


Change in other assets



(2,321)



(12,569)


Net cash used in investing activities



(207,891)



(2,283,486)


Cash flows provided by (used in) financing activities:








Issuance of senior notes



—



750,000


Repayment of senior notes



(118,046)



(369,997)


Borrowings on Term Loan



—



1,500,000


Repayments on Term Loan



—



(236,000)


Borrowings on Credit Facility



1,308,400



2,079,800


Repayments on Credit Facility



(1,397,500)



(2,445,900)


Repurchases of common stock



(10,094)



—


Payment of debt issuance costs



—



(10,838)


Distributions to noncontrolling interests in Martica Holdings LLC



(15,969)



(17,650)


Employee tax withholding for settlement of equity-based compensation awards



(16,298)



(34,732)


Other



(341)



(255)


Net cash provided by (used in) financing activities



(249,848)



1,214,428


Net decrease in cash, cash equivalents and restricted cash



—



(210,000)


Cash, cash equivalents and restricted cash, beginning of period



—



210,000


Cash, cash equivalents and restricted cash, end of period


$

—



—










Supplemental disclosure of cash flow information:








Cash paid during the period for interest


$

43,078



50,616


Increase (decrease) in accounts payable, accrued liabilities and other current liabilities for additions to property
     and equipment


$

(19,271)



44,277


Increase in accounts payable, related parties for acquisition of HG Production


$

—



10,809


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













Three Months Ended


Amount of






March 31,


Increase


Percent




2025


2026


(Decrease)


Change


Operating revenues and other:













Natural gas sales


$

780,005



1,311,476



531,471


68

%

Natural gas liquids sales



561,432



503,649



(57,783)


(10)

%

Oil sales



50,335



46,695



(3,640)


(7)

%

Commodity derivative fair value gains (losses)



(71,671)



35,023



106,694


*


Marketing



25,558



41,661



16,103


63

%

Amortization of deferred revenue, VPP



6,230



5,795



(435)


(7)

%

Other revenue and income



818



827



9


1

%

Total revenue



1,352,707



1,945,126



592,419


44

%

Operating expenses:













Lease operating



33,986



44,529



10,543


31

%

Gathering and compression



236,134



269,113



32,979


14

%

Processing



261,155



287,768



26,613


10

%

Transportation



197,728



232,225



34,497


17

%

Production and ad valorem taxes



55,299



80,997



25,698


46

%

Marketing



42,770



62,553



19,783


46

%

Exploration



668



792



124


19

%

General and administrative (excluding equity-based compensation)



47,300



51,607



4,307


9

%

Equity-based compensation



15,145



11,733



(3,412)


(23)

%

Depletion, depreciation and amortization



186,352



206,239



19,887


11

%

Impairment of property and equipment



5,618



948



(4,670)


(83)

%

Accretion of asset retirement obligations



939



1,063



124


13

%

Contract termination, loss contingency and settlements



(1,308)



12,035



13,343


*


Gain on sale of assets



(575)



(45,950)



(45,375)


7,891

%

Other expense



24



22



(2)


(8)

%

Total operating expenses



1,081,235



1,215,674



134,439


12

%

Operating income



271,472



729,452



457,980


169

%

Other income (expense):













Interest expense, net



(23,368)



(36,963)



(13,595)


58

%

Equity in earnings of unconsolidated affiliate



28,661



30,118



1,457


5

%

Loss on early extinguishment of debt



(2,899)



(6,742)



(3,843)


133

%

Transaction expenses



—



(22,144)



(22,144)


*


Total other income (expense)



2,394



(35,731)



(38,125)


*


Income before income taxes



273,866



693,721



419,855


153

%

Income tax expense



(54,400)



(145,508)



(91,108)


167

%

Net income and comprehensive income including noncontrolling interests



219,466



548,213



328,747


150

%

Less: net income and comprehensive income attributable to noncontrolling interests



11,495



12,997



1,502


13

%

Net income and comprehensive income attributable to Antero Resources
     Corporation



207,971



535,216



327,245


157

%














Adjusted EBITDAX


$

549,428



723,418



173,990


32

%

*   Not meaningful

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














Three Months Ended


Amount of







March 31,


Increase


Percent





2025


2026


(Decrease)


Change



Production data (1) (2) :














Natural gas (Bcf)



195



236



41


21

%


C2 Ethane (MBbl)



7,442



6,836



(606)


(8)

%


C3+ NGLs (MBbl)



10,229



10,872



643


6

%


Oil (MBbl)



852



816



(36)


(4)

%


Combined (Bcfe)



306



347



41


13

%


Daily combined production (MMcfe/d)



3,397



3,852



455


13

%


Average prices before effects of derivative settlements (3) :














Natural gas (per Mcf)


$

4.01



5.57



1.56


39

%


C2 Ethane (per Bbl)


$

12.70



13.51



0.81


6

%


C3+ NGLs (per Bbl)


$

45.65



37.83



(7.82)


(17)

%


Oil (per Bbl)


$

59.08



57.22



(1.86)


(3)

%


Weighted Average Combined (per Mcfe)


$

4.55



5.37



0.82


18

%


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














Natural gas (per Mcf)


$

3.95



4.86



0.91


23

%


C2 Ethane (per Bbl)


$

12.70



13.51



0.81


6

%


C3+ NGLs (per Bbl)


$

45.65



37.90



(7.75)


(17)

%


Oil (per Bbl)


$

58.97



57.22



(1.75)


(3)

%


Weighted Average Combined (per Mcfe)


$

4.52



4.89



0.37


8

%


Average costs (per Mcfe):














Lease operating


$

0.11



0.13



0.02


18

%


Gathering and compression


$

0.77



0.78



0.01


1

%


Processing


$

0.85



0.83



(0.02)


(2)

%


Transportation


$

0.65



0.67



0.02


3

%


Production and ad valorem taxes


$

0.18



0.23



0.05


28

%


Marketing expense, net


$

0.06



0.06



—


*



General and administrative (excluding equity-based compensation)


$

0.15



0.15



—


*



Depletion, depreciation, amortization and accretion


$

0.61



0.60



(0.01)


(2)

%


*   Not meaningful

(1)

Production data excludes volumes related to VPP transaction.

(2)

Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts.  This ratio is an estimate of the equivalent energy content of the products and may not reflect their relative economic value.

(3)

Average prices reflect the before and after effects of our settled commodity derivatives.  Our calculation of such after effects includes gains (losses) on settlements of commodity derivatives, which do not qualify for hedge accounting because we do not designate or document them as hedges for accounting purposes.

 

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SOURCE Antero Resources Corporation