- Antero Resources Corporation announced its second quarter 2025 financial and operating results on July 30, 2025. - Net production averaged 3.4 Bcfe/d with natural gas production at 2.2 Bcf/d and liquids production at 200 MBbl/d. - The company realized a pre-hedge natural gas equivalent price of $3.85 per Mcfe, a $0.41 premium to NYMEX. - Net income was $157 million and Adjusted Net Income was $110 million. - Adjusted EBITDAX stood at $379 million and net cash from operating activities was $492 million, showing increases of 151% and 243% year-over-year respectively. - Free Cash Flow amounted to $262 million. - The company reduced net debt by $187 million to $1.1 billion. - Antero purchased 3.6 million shares for about $126 million from April 1st to July 30th. - The 2025 production guidance was increased to 3.4 to 3.45 Bcfe/d due to strong well performance. - Drilling and completion capital guidance was decreased to $650 to $675 million, citing capital efficiency gains. - CEO Paul Rady highlighted the company's increased production guidance and reduced capital budget as indicators of strong performance. - Natural gas demand is projected to grow by more than 25% by 2030 driven by LNG export growth and increasing power demand. - CFO Michael Kennedy emphasized the company's ability to generate substantial Free Cash Flow and its commitment to debt reduction and share buybacks. - Antero updated its full-year C3+ NGL realized price guidance to a premium of $1.00 to $2.00 per barrel. - All-in cash expenses for the quarter were $2.48 per Mcfe, reflecting increased gathering and transportation costs. - Antero placed 18 horizontal Marcellus wells to sales during the quarter, achieving an average rate of 24 MMcfe/d per well. - Capital expenditures for drilling and completion activities totaled $171 million, alongside $26 million spent on leasing additional land. - The 2024 ESG Report highlighted significant emissions reductions and increased water recycling efforts. - A conference call is scheduled for July 31, 2025, at 9:00 am MT to discuss the financial and operational results.

Antero Resources Announces Second Quarter 2025 Financial and Operating Results

News provided by Antero Resources Corporation

Jul 30, 2025, 16:15 ET

DENVER, July 30, 2025 /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/dNatural 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.