Antero Resources Announces First Quarter 2025 Financial and Operating Results

, /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its first quarter 2025 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, 2025. 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 through April 30th Paul Rady, Chairman, CEO and President of Antero Resources commented, "Our first quarter 2025 results highlight the benefit of Antero's differentiated strategy in securing firm transportation capacity that sells the majority of our natural gas along the Gulf Coast LNG corridor. The faster than expected ramp-up of Gulf Coast LNG facilities led to record LNG demand and contributed to natural gas realizations at a $0.36 premium to NYMEX during the quarter. Bolstering our premium price realization outlook further, on the NGL side, we entered into firm sales agreements for approximately 90% of our LPG at the Marcus Hook, PA dock at an attractive double-digit premium to Mont Belvieu pricing for 2025. This contracted pricing is expected to deliver an approximate $2.00 per barrel premium to Mont Belvieu in 2025." Michael Kennedy, CFO of Antero Resources said, "Our ability to capture premium prices along with our best-in-class capital efficiency results in an attractive Free Cash Flow outlook. This outlook combined with our low debt levels allowed us to be opportunistic in our share repurchase program, starting it earlier than our previous forecast." Mr. Kennedy continued, "In addition, we reduced debt by over $200 million during the quarter. Looking ahead, we plan to actively manage our share repurchase program, accelerating buybacks when there are market opportunities. This plan also maintains our focus on further debt reduction as we are targeting an undrawn credit facility." 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 $337 million. Three Months Ended March 31, 2024 2025 Net cash provided by operating activities $ 261,610 457,739 Less: Capital expenditures (222,449) (206,145) Less: Distributions to non-controlling interests in Martica (23,617) (15,969) Free Cash Flow $ 15,544 235,625 Changes in Working Capital (1) (11,086) 101,019 Free Cash Flow before Changes in Working Capital $ 4,458 336,644 (1) Working capital adjustments in the first quarter of 2024 includes $14 million in net increases in current assets and liabilities and $3 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Working capital adjustments in the first quarter of 2025 includes $82 million in net decreases in current assets and liabilities and $19 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Share Repurchase Program From January 1st, 2025 to April 30th, 2025 Antero purchased 2.7 million shares at an average weighted price of $34.18 per share, or an aggregate $92 million. Antero has approximately $1 billion of capacity remaining on its current share repurchase program. Debt Reduction As of March 31, 2025 Antero's total debt was $1.29 billion. Net Debt to trailing twelve month Adjusted EBITDAX was 1.1x. During the quarter, Antero reduced total debt by $204 million. 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 $1.50 to $2.50 per barrel. 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 $3.07 per MMBtu with a ceiling of $5.96 per MMBtu. Antero did not enter into any new natural gas hedges for 2025. For more detail please see the presentation titled "Hedges and Guidance Presentation" on Antero's website. Natural Gas MMBtu/d Weighted Average Index Price ($/MMBtu) % of Estimated Natural Gas Production (1) 2025 NYMEX Henry Hub Swap 100,000 $ 3.12 4 % Weighted Average Index Natural Gas (MMBtu/d) Floor Price ($/MMBtu) Ceiling Price ($/MMBtu) % of Estimated Natural Gas Production (1) 2026 NYMEX Henry Hub Collars 320,000 $ 3.07 $ 5.96 14 % (1) 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 $4.01 per Mcf, a $0.36 per Mcf premium to the benchmark index price. Antero's average realized C3+ NGL price before hedges was $45.65 per barrel, a $1.66 per barrel premium to the benchmark index price. The following table details average net production and average realized prices for the three months ended March 31, 2025: Three Months Ended March 31, 2025 Natural Gas (MMcf/d) Oil (Bbl/d) C3+ NGLs (Bbl/d) Ethane (Bbl/d) Combined Natural Gas Equivalent (MMcfe/d) Average Net Production 2,162 9,467 113,656 82,689 3,397 Natural Gas Oil C3+ NGLs Ethane Combined Natural Gas Equivalent Average Realized Prices ($/Mcf) ($/Bbl) ($/Bbl) ($/Bbl) ($/Mcfe) Average realized prices before settled derivatives $ 4.01 59.08 45.65 12.70 4.55 Index price (1) $ 3.65 71.42 43.99 11.46 3.65 Premium / (Discount) to Index price $ 0.36 (12.34) 1.66 1.24 0.90 Settled commodity derivatives (2) $ (0.06) (0.11) — — (0.03) Average realized prices after settled derivatives $ 3.95 58.97 45.65 12.70 4.52 Premium / (Discount) to Index price $ 0.30 (12.45) 1.66 1.24 0.87 (1) Please see Antero's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, for more information on these index and average realized prices. (2) These commodity derivative instruments include contracts attributable to Martica Holdings LLC ("Martica"), Antero's consolidated variable interest entity. All gains or losses from Martica's derivative instruments are fully attributable to the noncontrolling interests in Martica, which includes portions of the natural gas and C3+ NGL and all oil derivative instruments during the three months ended March 31, 2025. All-in cash expense, which includes lease operating, gathering, compression, processing and transportation and production and ad valorem taxes was $2.56 per Mcfe in the first quarter, as compared to $2.44 per Mcfe during the first quarter of 2024. The increase was due primarily to higher gathering, compression, processing and transportation costs related to increased fuel costs as a result of higher natural gas prices. Net marketing expense was $0.06 per Mcfe during the first quarter of 2025, compared to $0.04 per Mcfe during the first quarter of 2024. 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 Capital Investment Antero's drilling and completion capital expenditures for the three months ended March 31, 2025 were $157 million. In addition to capital invested in drilling and completion activities, the Company leased $30 million in land during the first quarter. Through this leasing, Antero added approximately 6,000 net acres, representing 26 incremental drilling locations, replenishing the 26 wells brought on line during the first quarter at an average cost of approximately $850,000 per location. Conference Call A conference call is scheduled on Thursday, May 1, 2025 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 8, 2025 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750395. 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 8, 2025 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, 2024 2025 Net income and comprehensive income attributable to Antero Resources Corporation $ 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) Impairment of property and equipment 5,190 5,618 Equity-based compensation 16,077 15,145 Loss on early extinguishment of debt — 2,899 Equity in earnings of unconsolidated affiliate (23,347) (28,661) Contract termination, loss contingency and settlements 2,039 (1,308) Tax effect of reconciling items (1) 3,189 (10,387) 23,192 256,621 Martica adjustments (2) (14,696) (9,963) Adjusted Net Income $ 8,496 246,658 Diluted Weighted Average Common Shares Outstanding (3) 312,503 314,798 (1) Deferred taxes were approximately 22% for 2024 and 2025. (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, 2024 and 2025 were 0.6 million and 0.3 million, respectively. 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, 2024 2025 Credit Facility $ 393,200 304,100 8.375% senior notes due 2026 96,870 — 7.625% senior notes due 2029 407,115 388,475 5.375% senior notes due 2030 600,000 600,000 Unamortized debt issuance costs (7,955) (7,195) Total long-term debt $ 1,489,230 1,285,380 Less: Cash and cash equivalents — — Net Debt $ 1,489,230 1,285,380 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 March 31, 2024 and 2025 (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, 2024 2025 Reconciliation of net income to Adjusted EBITDAX: Net income and comprehensive income attributable to Antero Resources Corporation $ 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 2,020 463 279,536 565,820 Martica related adjustments (1) (17,449) (16,392) Adjusted EBITDAX $ 262,087 549,428 Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: 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. Twelve Months Ended March 31, 2025 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): Three Months Ended March 31, 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 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 strategy, future operations, financial position, estimated revenues and losses, projected costs, estimated realized natural gas, NGL and oil prices, anticipated reductions in letters of credit and interest expense, prospects, plans and objectives of management, return of capital, expected results, impacts of geopolitical 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, 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, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil, 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, commodity price volatility, inflation, supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of geopolitical 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, 2024 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) December 31, March 31, 2024 2025 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, $0.01 par value; authorized - 50,000 shares; none issued — — Common stock, $0.01 par value; authorized - 1,000,000 shares; 311,165 and 311,584 shares issued and outstanding as of December 31, 2024 and March 31, 2025, respectively 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 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 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 $16,077 and $15,145 in 2024 and 2025, respectively) 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 Antero Resources Corporation $ 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 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Three Months Ended March 31, 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 Martica Holdings LLC (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 March 31, 2024 and 2025 (in thousands): Three Months Ended Amount of March 31, 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 Antero Resources Corporation 22,730 207,971 185,241 815 % Adjusted EBITDAX $ 262,087 549,428 287,341 110 % The following table sets forth selected financial data for the three months ended March 31, 2024 and 2025: (Unaudited) Three Months Ended Amount of March 31, 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 March 31, 2024 includes $2 million of proceeds related to a take-or-pay contract. Excluding the effect of these proceeds, the average realized price for ethane before and after the effects of derivatives for the three months ended March 31, 2024 would have been $9.07 per Bbl. SOURCE Antero Resources Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Antero Resources Announces First Quarter 2025 Financial and Operating Results

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