Antero Resources Announces Second Quarter 2025 Financial and Operating Results

, /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its second 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 June 30, 2025. Highlights: Net production averaged 3.4 Bcfe/d Natural gas production averaged 2.2 Bcf/d Liquids production averaged 200 MBbl/d Realized a pre-hedge natural gas equivalent price of $3.85 per Mcfe, which is a $0.41 per Mcfe premium to NYMEX Realized a pre-hedge C3+ NGL price of $37.92 per barrel Net income was $157 million and Adjusted Net Income was $110 million (Non-GAAP) Adjusted EBITDAX was $379 million (Non-GAAP) and net cash provided by operating activities was $492 million, increases of 151% and 243% compared to the prior year period, respectively Free Cash Flow was $262 million (Non-GAAP) Net Debt during the quarter was reduced by $187 million, to $1.1 billion (Non-GAAP) Purchased 3.6 million shares for approximately $126 million from April 1st through July 30th Published Antero's Annual ESG Report highlighting emissions reduction progress and significant local economic impacts 2025 Full-Year Guidance Highlights: Increasing production guidance to 3.4 to 3.45 Bcfe/d, driven by strong well performance Decreasing drilling and completion capital guidance to $650 to $675 million, due to continuing capital efficiency gains Paul Rady, Chairman, CEO and President of Antero Resources commented, "For the second consecutive year we increased production guidance, while also reducing our drilling and completion capital budget. This reflects continued strong well performance combined with improving on our peer leading capital efficiency." Mr. Rady continued, "Looking ahead, natural gas demand is expected to grow by more than 25% by 2030 driven by LNG export growth and increasing power demand fueled by AI Data Centers. With firm transportation capacity to the Gulf Coast LNG corridor and over 20 years of premium drilling inventory, Antero is uniquely positioned to benefit from both the significant new LNG capacity and the strong regional power demand growth that is anticipated by the end of the decade." Michael Kennedy, CFO of Antero Resources said, "Our best-in-class low maintenance capital requirements allows us to generate substantial Free Cash Flow in 2025. During the second quarter, we used this Free Cash Flow to pay down nearly $200 million of debt and purchase $85 million of stock. Year-to-date through July 30th, we purchased 4.4 million shares, or $152 million of stock. In addition, we have paid down approximately $400 million or 30% of our total debt in the first two quarters of the year. Going forward, we plan to actively manage our return of capital strategy, continuing to use buybacks opportunistically, while maintaining our focus on further debt reduction." 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." 2025 Guidance Update Antero is increasing its full year 2025 production guidance to 3.4 to 3.45 Bcfe/d. The higher than expected volumes are driven by stronger well performance. Antero is decreasing its full year 2025 drilling and completion capital budget to $650 to $675 million. The lower expected spend is a result of continued capital efficiency gains. Antero is updating its full year C3+ NGL realized price guidance to a premium of $1.00 to $2.00 per barrel to reflect second quarter 2025 actuals. Antero still expects the company's C3+ NGL pricing premium to average $1.50 to $2.50 per barrel during the second half of 2025. Full Year 2025 Revised Full Year 2025 Guidance Low High Net Daily Natural Gas Equivalent Production (Bcfe/d) 3.4 3.45 Drilling and Completion Capital Budget ($MM) $650 $675 C3+ NGL Realized Price Premium vs Mont Belvieu ($/Bbl) $1.00 $2.00 Note: Any 2025 guidance items not discussed in this release are unchanged from previously stated guidance. Free Cash Flow During the second quarter of 2025, Free Cash Flow was $262 million. Three Months Ended June 30, 2024 2025 Net cash provided by operating activities $ 143,499 492,358 Less: Capital expenditures (192,385) (208,409) Less: Distributions to non-controlling interests in Martica (19,282) (21,512) Free Cash Flow $ (68,168) 262,437 Changes in Working Capital (1) (11,700) (106,165) Free Cash Flow before Changes in Working Capital $ (79,868) 156,272 (1) Working capital adjustments in the second quarter of 2024 includes $11 million in net increases in current assets and liabilities and less than $1 million in net increases in accounts payable and accrued liabilities for additions to property and equipment. Working capital adjustments in the second quarter of 2025 includes $116 million in net increases in current assets and liabilities and $10 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Share Purchase Program From April 1, 2025 to July 30, 2025 Antero purchased 3.6 million shares at an average weighted price of $34.49 per share, or an aggregate $126 million. Antero's share purchases were at an 8% discount to the volume weighted average price per share of $37.29 per share during that same period. This illustrates the opportunistic strategy around the share buyback program. Antero has approximately $900 million of capacity remaining on its current share purchase program. Debt Reduction As of June 30, 2025 Antero's total debt was $1.1 billion. Net Debt to trailing twelve month Adjusted EBITDAX was 0.8x. During the quarter, Antero reduced total debt by $187 million. Year-to-date, as of the end of the second quarter, Antero reduced debt by approximately $400 million, or 30% of total debt. Natural Gas Hedge Program Antero added new natural gas costless collars for 2026. These wide collars lock in attractive rates of returns with a floor price of $3.14 per MMBtu and a ceiling price of $6.31 per MMBtu. Antero did not enter into any new natural gas hedges for 2025. For more detail please see the presentation titled "Hedges and Guidance Presentation" on Antero's website. Natural Gas MMBtu/d Weighted Average Index Price ($/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 Costless Collars 500,000 $ 3.14 $ 6.31 21 % (1) Based on the midpoint of 2025 natural gas guidance (including BTU upgrade) Second Quarter 2025 Financial Results Net daily natural gas equivalent production in the second quarter averaged 3.4 Bcfe/d, including 200 MBbl/d of liquids. Antero's average realized natural gas price before hedges was $3.39 per Mcf, a $0.05 per Mcf discount to the benchmark index price. Antero's realized natural gas price during the quarter was negatively impacted by maintenance in June on a Gulf Coast directed pipeline. This resulted in increased sales at a regional hub that is priced at a discount to the benchmark. Antero's average realized C3+ NGL price before hedges was $37.92 per barrel. The following table details average net production and average realized prices for the three months ended June 30, 2025: Three Months Ended June 30, 2025 Natural Gas (MMcf/d) Oil (Bbl/d) C3+ NGLs (Bbl/d) Ethane (Bbl/d) Combined Natural Gas Equivalent (MMcfe/d) Average Net Production 2,230 7,385 116,571 76,088 3,430 Three Months Ended June 30, 2025 Natural Gas Oil C3+ NGLs Ethane Combined Natural Gas Equivalent Average Realized Prices ($/Mcf) ($/Bbl) ($/Bbl) ($/Bbl) ($/Mcfe) Average realized prices before settled derivatives $ 3.39 50.15 37.92 11.34 3.85 Index price (1) $ 3.44 63.74 38.07 10.11 3.44 Premium / (Discount) to Index price $ (0.05) (13.59) (0.15) 1.23 0.41 Settled commodity derivatives $ (0.03) — — — (0.02) Average realized prices after settled derivatives $ 3.36 50.15 37.92 11.34 3.83 Premium / (Discount) to Index price $ (0.08) (13.59) (0.15) 1.23 0.39 (1) Please see Antero's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, 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 $2.48 per Mcfe in the second quarter, as compared to $2.36 per Mcfe during the second 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 second quarter of 2025, compared to $0.07 per Mcfe during the second quarter of 2024. Second Quarter 2025 Operating Results Antero placed 18 horizontal Marcellus wells to sales during the second quarter with an average lateral length of 13,500 feet. Eleven of these wells have been on line for approximately 60 days with an average rate per well of 24 MMcfe/d, including 1,200 Bbl/d of liquids per well assuming 25% ethane recovery. Second Quarter 2025 Capital Investment Antero's drilling and completion capital expenditures for the three months ended June 30, 2025 were $171 million. In addition to capital invested in drilling and completion activities, the Company leased $26 million in land during the second quarter. Through this leasing, Antero added approximately 5,000 net acres, representing 20 incremental drilling locations, replenishing the 18 wells brought on line during the second quarter at an average cost of approximately $820,000 per location. In addition to the incremental locations, Antero also acquired minerals in its Marcellus area of development to increase its net revenue interest in future drilling locations. 2024 ESG Report Highlights Antero published its 2024 ESG Report, marking the Company's 8th year reporting on its environmental, social and governance (ESG) performance. This year's report highlights the Company's emissions reduction progress, significant local economic impacts, increased water recycling rate and continued commitment to safety across our operations. The report can be found at www.anteroresources.com/esg. Decreased absolute methane emissions (metric tons) by 77% and methane intensity by 79% since 2019 Reduced overall Scope 1 emissions and Scope 1 GHG intensity by 63% since 2019 Recycled 89% of the wastewater during the year On track to achieve its 2025 Net Zero Scope 1 GHG emission goal due to the reduction in overall emissions and supplemented by the LPG stove initiative in Ghana that creates premium certified carbon offsets Conference Call A conference call is scheduled on Thursday, July 31, 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, August 7, 2025 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750396. 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, August 7, 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 June 30, 2024 2025 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (79,806) 156,585 Net income and comprehensive income attributable to noncontrolling interests 5,208 9,988 Unrealized commodity derivative (gains) losses 11,479 (59,763) Amortization of deferred revenue, VPP (6,739) (6,298) Loss (gain) on sale of assets (18) 546 Impairment of property and equipment 313 6,297 Equity-based compensation 17,151 15,855 Loss on early extinguishment of debt — 729 Equity in earnings of unconsolidated affiliate (20,881) (30,563) Contract termination, loss contingency and settlements 3,009 13,596 Tax effect of reconciling items (1) (938) 13,021 (71,222) 119,993 Martica adjustments (2) (3,225) (9,988) Adjusted Net Income (Loss) $ (74,447) 110,005 Diluted Weighted Average Common Shares Outstanding (3) 310,806 313,184 (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 were 5.8 million for the three months ended June 30, 2024. There were no material anti-dilutive weighted average shares outstanding for the three months ended June 30, 2025. 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, June 30, 2024 2025 Credit Facility $ 393,200 140,000 8.375% senior notes due 2026 96,870 — 7.625% senior notes due 2029 407,115 365,353 5.375% senior notes due 2030 600,000 600,000 Unamortized debt issuance costs (7,955) (6,684) Total long-term debt $ 1,489,230 1,098,669 Less: Cash and cash equivalents — — Net Debt $ 1,489,230 1,098,669 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 June 30, 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 June 30, 2024 2025 Reconciliation of net income (loss) to Adjusted EBITDAX: Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (79,806) 156,585 Net income and comprehensive income attributable to noncontrolling interests 5,208 9,988 Unrealized commodity derivative (gains) losses 11,479 (59,763) Amortization of deferred revenue, VPP (6,739) (6,298) Loss (gain) on sale of assets (18) 546 Interest expense, net 32,681 19,954 Loss on early extinguishment of debt — 729 Income tax expense (benefit) (17,288) 48,190 Depletion, depreciation, amortization and accretion 189,413 188,531 Impairment of property and equipment 313 6,297 Exploration expense 643 648 Equity-based compensation expense 17,151 15,855 Equity in earnings of unconsolidated affiliate (20,881) (30,563) Dividends from unconsolidated affiliate 31,284 31,314 Contract termination, loss contingency, transaction expense and other 3,020 13,627 166,460 395,640 Martica related adjustments (1) (15,058) (16,176) Adjusted EBITDAX $ 151,402 379,464 Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: Adjusted EBITDAX $ 151,402 379,464 Martica related adjustments (1) 15,058 16,176 Interest expense, net (32,681) (19,954) Amortization of debt issuance costs and other 613 356 Exploration expense (643) (648) Changes in current assets and liabilities 11,392 116,475 Contract termination, loss contingency, transaction expense and other (214) (318) Other items (1,428) 807 Net cash provided by operating activities $ 143,499 492,358 (1) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. Twelve Months Ended June 30, 2025 Reconciliation of net income to Adjusted EBITDAX: Net income and comprehensive income attributable to Antero Resources Corporation $ 478,858 Net income and comprehensive income attributable to noncontrolling interests 40,804 Unrealized commodity derivative losses 6,913 Amortization of deferred revenue, VPP (26,152) Loss on sale of assets 663 Interest expense, net 98,661 Loss on early extinguishment of debt 4,156 Income tax benefit (4,534) Depletion, depreciation, amortization, and accretion 760,985 Impairment of property and equipment 53,845 Exploration 2,689 Equity-based compensation expense 64,234 Equity in earnings of unconsolidated affiliate (108,783) Dividends from unconsolidated affiliate 125,256 Contract termination, loss contingency, transaction expense and other 13,983 1,511,578 Martica related adjustments (1) (63,850) Adjusted EBITDAX $ 1,447,728 (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 June 30, 2024 2025 Drilling and completion costs (cash basis) $ 173,323 181,200 Change in accrued capital costs (9,116) (10,531) Adjusted drilling and completion costs (accrual basis) $ 164,207 170,669 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, 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, including the conflicts in Ukraine 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, 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, 2024 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) (Unaudited) December 31, June 30, 2024 2025 Assets Current assets: Accounts receivable $ 34,413 31,650 Accrued revenue 453,613 367,895 Derivative instruments 1,050 1,137 Prepaid expenses 12,423 9,591 Other current assets 6,047 17,261 Total current assets 507,546 427,534 Property and equipment: Oil and gas properties, at cost (successful efforts method): Unproved properties 879,483 883,170 Proved properties 14,395,680 14,540,908 Gathering systems and facilities 5,802 5,802 Other property and equipment 105,871 109,318 15,386,836 15,539,198 Less accumulated depletion, depreciation and amortization (5,699,286) (5,883,318) Property and equipment, net 9,687,550 9,655,880 Operating leases right-of-use assets 2,549,398 2,397,054 Derivative instruments 1,296 947 Investment in unconsolidated affiliate 231,048 249,163 Other assets 33,212 35,495 Total assets $ 13,010,050 12,766,073 Liabilities and Equity Current liabilities: Accounts payable $ 62,213 39,901 Accounts payable, related parties 111,066 107,293 Accrued liabilities 402,591 312,832 Revenue distributions payable 315,932 364,053 Derivative instruments 31,792 34,019 Short-term lease liabilities 493,894 514,292 Deferred revenue, VPP 25,264 24,390 Other current liabilities 3,175 7,949 Total current liabilities 1,445,927 1,404,729 Long-term liabilities: Long-term debt 1,489,230 1,098,669 Deferred income tax liability, net 693,341 795,816 Derivative instruments 17,233 15,635 Long-term lease liabilities 2,050,337 1,878,718 Deferred revenue, VPP 35,448 23,794 Other liabilities 62,001 64,205 Total liabilities 5,793,517 5,281,566 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 309,869 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively 3,111 3,098 Additional paid-in capital 5,909,373 5,867,226 Retained earnings 1,109,166 1,435,298 Total stockholders' equity 7,021,650 7,305,622 Noncontrolling interests 194,883 178,885 Total equity 7,216,533 7,484,507 Total liabilities and equity $ 13,010,050 12,766,073 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, 2024 2025 Revenue and other: Natural gas sales $ 374,568 688,753 Natural gas liquids sales 489,191 480,757 Oil sales 63,458 33,700 Commodity derivative fair value gains (losses) (5,585) 53,409 Marketing 49,418 33,743 Amortization of deferred revenue, VPP 6,739 6,298 Other revenue and income 865 833 Total revenue 978,654 1,297,493 Operating expenses: Lease operating 29,759 37,244 Gathering, compression, processing and transportation 663,442 701,722 Production and ad valorem taxes 41,933 34,830 Marketing 70,807 51,988 Exploration 643 648 General and administrative (including equity-based compensation expense of $17,151 and $15,855 in 2024 and 2025, respectively) 59,428 57,183 Depletion, depreciation and amortization 188,633 187,589 Impairment of property and equipment 313 6,297 Accretion of asset retirement obligations 780 942 Contract termination, loss contingency and settlements 3,009 13,596 Loss (gain) on sale of assets (18) 546 Other operating expense 11 25 Total operating expenses 1,058,740 1,092,610 Operating income (loss) (80,086) 204,883 Other income (expense): Interest expense, net (32,681) (19,954) Equity in earnings of unconsolidated affiliate 20,881 30,563 Loss on early extinguishment of debt — (729) Total other income (expense) (11,800) 9,880 Income (loss) before income taxes (91,886) 214,763 Income tax benefit (expense) 17,288 (48,190) Net income (loss) and comprehensive income (loss) including noncontrolling interests (74,598) 166,573 Less: net income and comprehensive income attributable to noncontrolling interests 5,208 9,988 Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (79,806) 156,585 Net income (loss) per common share—basic $ (0.26) 0.50 Net income (loss) per common share—diluted $ (0.26) 0.50 Weighted average number of common shares outstanding: Basic 310,806 310,323 Diluted 310,806 313,184 ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Six Months Ended June 30, 2024 2025 Cash flows provided by (used in) operating activities: Net income (loss) including noncontrolling interests $ (39,926) 386,039 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depletion, depreciation, amortization and accretion 380,664 375,822 Impairments 5,503 11,915 Commodity derivative fair value losses (gains) (3,861) 18,262 Gains (losses) on settled commodity derivatives 7,262 (17,371) Deferred income tax expense (benefit) (11,202) 102,475 Equity-based compensation expense 33,228 31,000 Equity in earnings of unconsolidated affiliate (44,228) (59,224) Dividends of earnings from unconsolidated affiliate 62,569 62,628 Amortization of deferred revenue (13,477) (12,528) Amortization of debt issuance costs and other 1,328 823 Settlement of asset retirement obligations (1,680) (71) Contract termination, loss contingency and settlements 3,006 12,001 Loss (gain) on sale of assets 170 (29) Loss on early extinguishment of debt — 3,628 Changes in current assets and liabilities: Accounts receivable 19,067 2,763 Accrued revenue 38,354 85,718 Prepaid expenses and other current assets 6,547 (8,382) Accounts payable including related parties 6,616 (15,139) Accrued liabilities (14,830) (85,528) Revenue distributions payable (32,406) 48,121 Other current liabilities 2,405 7,174 Net cash provided by operating activities 405,109 950,097 Cash flows provided by (used in) investing activities: Additions to unproved properties (43,571) (56,640) Drilling and completion costs (362,228) (356,334) Additions to other property and equipment (9,035) (1,580) Proceeds from asset sales 418 11,522 Change in other assets 291 (2,348) Net cash used in investing activities (414,125) (405,380) Cash flows provided by (used in) financing activities: Repurchases of common stock — (84,966) Repayment of senior notes — (141,733) Borrowings on Credit Facility 1,950,000 2,291,800 Repayments on Credit Facility (1,871,200) (2,545,000) Distributions to noncontrolling interests in Martica Holdings LLC (42,899) (37,481) Employee tax withholding for settlement of equity-based compensation awards (26,355) (26,618) Other (530) (719) Net cash provided by (used in) financing activities 9,016 (544,717) 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 $ 63,512 48,043 Decrease in accounts payable and accrued liabilities for additions to property and equipment $ (2,967) (29,581) The following table sets forth selected financial data for the three months ended June 30, 2024 and 2025 (in thousands): (Unaudited) Three Months Ended Amount of June 30, Increase Percent 2024 2025 (Decrease) Change Revenue: Natural gas sales $ 374,568 688,753 314,185 84 % Natural gas liquids sales 489,191 480,757 (8,434) (2) % Oil sales 63,458 33,700 (29,758) (47) % Commodity derivative fair value gains (losses) (5,585) 53,409 58,994 * Marketing 49,418 33,743 (15,675) (32) % Amortization of deferred revenue, VPP 6,739 6,298 (441) (7) % Other revenue and income 865 833 (32) (4) % Total revenue 978,654 1,297,493 318,839 33 % Operating expenses: Lease operating 29,759 37,244 7,485 25 % Gathering and compression 222,139 236,830 14,691 7 % Processing 269,985 284,040 14,055 5 % Transportation 171,318 180,852 9,534 6 % Production and ad valorem taxes 41,933 34,830 (7,103) (17) % Marketing 70,807 51,988 (18,819) (27) % Exploration 643 648 5 1 % General and administrative (excluding equity-based compensation) 42,277 41,328 (949) (2) % Equity-based compensation 17,151 15,855 (1,296) (8) % Depletion, depreciation and amortization 188,633 187,589 (1,044) (1) % Impairment of property and equipment 313 6,297 5,984 1,912 % Accretion of asset retirement obligations 780 942 162 21 % Contract termination and loss contingency 3,009 13,596 10,587 352 % Loss (gain) on sale of assets (18) 546 564 * Other operating expense 11 25 14 127 % Total operating expenses 1,058,740 1,092,610 33,870 3 % Operating income (loss) (80,086) 204,883 284,969 * Other earnings (expenses): Interest expense, net (32,681) (19,954) 12,727 (39) % Equity in earnings of unconsolidated affiliate 20,881 30,563 9,682 46 % Loss on early extinguishment of debt — (729) (729) * Total other income (expense) (11,800) 9,880 21,680 * Income (loss) before income taxes (91,886) 214,763 306,649 * Income tax (expense) benefit 17,288 (48,190) (65,478) * Net income (loss) and comprehensive income (loss) including noncontrolling interests (74,598) 166,573 241,171 * Less: net income and comprehensive income attributable to noncontrolling interests 5,208 9,988 4,780 92 % Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation $ (79,806) 156,585 236,391 * Adjusted EBITDAX $ 151,402 379,464 228,062 151 % * Not meaningful The following table sets forth selected financial data for the three months ended June 30, 2024 and 2025: (Unaudited) Three Months Ended Amount of June 30, Increase Percent 2024 2025 (Decrease) Change Production data (1) (2): Natural gas (Bcf) 196 203 7 4 % C2 Ethane (MBbl) 7,811 6,924 (887) (11) % C3+ NGLs (MBbl) 10,514 10,608 94 1 % Oil (MBbl) 952 672 (280) (29) % Combined (Bcfe) 311 312 1 * Daily combined production (MMcfe/d) 3,420 3,430 10 * Average prices before effects of derivative settlements (3): Natural gas (per Mcf) $ 1.92 3.39 1.47 77 % C2 Ethane (per Bbl) (4) $ 8.42 11.34 2.92 35 % C3+ NGLs (per Bbl) $ 40.27 37.92 (2.35) (6) % Oil (per Bbl) $ 66.66 50.15 (16.51) (25) % Weighted Average Combined (per Mcfe) $ 2.98 3.85 0.87 29 % Average realized prices after effects of derivative settlements (3): Natural gas (per Mcf) $ 1.94 3.36 1.42 73 % C2 Ethane (per Bbl) (4) $ 8.42 11.34 2.92 35 % C3+ NGLs (per Bbl) $ 40.44 37.92 (2.52) (6) % Oil (per Bbl) $ 66.50 50.15 (16.35) (25) % Weighted Average Combined (per Mcfe) $ 3.00 3.83 0.83 28 % Average costs (per Mcfe): Lease operating $ 0.10 0.12 0.02 20 % Gathering and compression $ 0.71 0.76 0.05 7 % Processing $ 0.87 0.91 0.04 5 % Transportation $ 0.55 0.58 0.03 5 % Production and ad valorem taxes $ 0.13 0.11 (0.02) (15) % Marketing expense, net $ 0.07 0.06 (0.01) (14) % General and administrative (excluding equity-based compensation) $ 0.14 0.13 (0.01) (7) % 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 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 June 30, 2024 and 2025 includes $0.1 million and $0.5 million, respectively, 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 June 30, 2024 and 2025 would have been $8.41 per Bbl and $11.27 per Bbl, respectively. 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 Second Quarter 2025 Financial and Operating Results

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