Antero Resources Announces Third Quarter 2025 Financial and Operating Results

DENVER, Oct. 29, 2025 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its third 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 September 30, 2025.

Highlights:

Michael Kennedy, CEO and President of Antero Resources commented, "Antero's third quarter results yet again raised the bar for operational performance, as we set numerous drilling and completion records during the period. In addition, we completed several bolt-on acquisitions located in our core Marcellus acreage position in West Virginia. The transactions increase Antero's production and inventory and enhance our ability to capitalize on the significant demand increases expected for natural gas. Further, these transactions were financed through 2025's Free Cash Flow."

Mr. Kennedy continued, "We are excited to return to our dry gas acreage, where we have not drilled in over a decade. We spud a pad during the fourth quarter of 2025, which highlights our ability to quickly increase dry gas production to supply power for datacenters, other power generation projects or to sell into the local market if local basis were to tighten meaningfully. As a reminder, we have approximately 1,000 gross dry gas locations over approximately 100,000 net acres that are held by production which could see accelerated activity under these scenarios."

Brendan Krueger, CFO of Antero Resources said, "Our best-in-class low maintenance capital requirements has led to substantial Free Cash Flow in 2025. During the year, we used this Free Cash Flow to finance several bolt-on acquisitions, pay down $182 million of debt, and purchase $163 million of stock. These strategic transactions are immediately accretive on a per share basis across all key metrics including Free Cash Flow and Net Asset Value. Looking ahead, we will continue to focus on opportunistically adding to our position in the core of the West Virginia Marcellus, maintaining low absolute debt levels and repurchasing our stock."

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."

Strategic Initiatives

Acquisitions - Antero completed three separate acquisitions, all in its West Virginia development footprint, for approximately $260 million. These transactions include 75-100 MMcfe/d of net production and 10 net undeveloped locations. The acquisitions were funded with a portion of 2025 Free Cash Flow and were acquired at attractive valuations of more than 20% on a 2026 expected Free Cash Flow Yield basis. The transactions closed at the end of the third quarter and had minimal impact on quarterly results.

Expanded Leasing Efforts - Antero is increasing its land capital budget by $50 million in order to expand its position in the Marcellus Fairway in West Virginia. The Company added 79 incremental drilling locations year-to-date through its organic leasing program at an average cost of approximately $900,000 per location. The accelerated acreage acquisitions reflect the ongoing strong well performance and the success of the development program, which has expanded the core Marcellus fairway.

Dry Gas Development - Antero added a spot rig to spud a dry gas pad in the fourth quarter of 2025, with no change to its 2025 budget. This pad is expected to turn in line during the first quarter of 2026 and to act as a proof of concept on Antero's ability to quickly increase dry gas activity to supply power for datacenters, other power generation projects or to sell into the local market if local basis were to tighten meaningfully. Antero has approximately 1,000 gross dry gas locations and over 100,000 net acres entirely held-by-production, that could see accelerated activity under these scenarios.

Share Purchase Program - During the third quarter 2025, Antero purchased 1.5 million shares for an aggregate $51 million. Year-to-date, Antero has purchased approximately 4.7 million shares for an aggregate $163 million. Antero's share purchases were at a 6% discount to the year-to-date volume weighted average price per share through September 30, 2025. Antero has approximately $915 million of capacity remaining on its previously approved share repurchase program.

Natural Gas Hedge Program - Antero added natural gas swaps for the fourth quarter of 2025, and full years 2026 and 2027 in order to support its acquisitions and its dry and lean gas development program. The Company increased its fourth quarter 2025 natural gas swaps by approximately 550 BBtu/d, bringing its total to 646 BBtu/d at $3.70/MMBtu. Antero also added 600 BBtu/d of natural gas swaps for 2026 at $3.82/MMBtu and 100 BBtu/d of natural gas swaps for 2027 at $3.93/MMBtu. In addition, Antero restructured its natural gas costless collars for 2026, raising the floor price from $3.14 per MMBtu to $3.22 per MMBtu with a ceiling price of $5.83 per MMBtu. For more details, please see the presentation titled "Hedges and Guidance Presentation" on Antero's website. The hedges below are as of October 29, 2025.

Swaps

Natural Gas

MMBtu/d

Weighted

Average Index

Price ($/MMBtu)

% of Estimated

Natural Gas

Production (1)

4Q 2025 NYMEX Henry Hub Swap

646,087

3.70

26 %

2026 NYMEX Henry Hub Swap

600,000

3.82

24 %

2027 NYMEX Henry Hub Swap

100,000

3.93

4 %

Weighted Average Index

Collars

Natural

Gas

(MMBtu/d)

Floor Price

($/MMBtu)

Ceiling Price

($/MMBtu)

% of Estimated

Natural Gas

Production (1)

2026 NYMEX Henry Hub Costless Collars

500,000

3.22

5.83

20 %

(1)

Based on the midpoint of Fourth Quarter 2025 production guidance (including BTU upgrade)

Fourth Quarter and Full Year 2025 Guidance Update

Antero expects fourth quarter 2025 production to increase to a range of 3.5 to 3.525 Bcfe/d, with the increase reflecting the acquisitions. Full year 2025 production is now expected to be at the high end of the 3.4 to 3.45 Bcfe/d range. The company is targeting this updated range as the new maintenance production level. Antero is increasing its full year 2025 land capital budget to $125 to $150 million to reflect expanded leasing in its core liquids rich Marcellus Fairway, with the fourth quarter 2025 expected to be in the range of $25 to $50 million. Antero is also revising its full year 2025 C3+ NGL realized price premium to Mont Belvieu to $0.75 to $1.00 per barrel. This premium during the fourth quarter of 2025 is expected at a range of $1.25 to $1.75 per barrel.

4Q25

Fourth Quarter 2025 Guidance

Low

High

Net Daily Natural Gas Equivalent Production (Bcfe/d)

3.5

3.525

C3+ NGL Realized Price Premium vs. Mont Belvieu ($/Bbl)

$1.25

$1.75

Land Capital Expenditures ($MM)

$25

$50

Full Year 2025

Revised

Full Year 2025 Guidance Updates

Low

High

Land Capital Budget ($MM)

$125

$150

C3+ NGL Realized Price Premium vs. Mont Belvieu ($/Bbl)

$0.75

$1.00

Note: Any 2025 guidance items not discussed in this release are unchanged from previously stated guidance.

Free Cash Flow

During the third quarter of 2025, Free Cash Flow was $91 million.

Three Months Ended

September 30,

2024

2025

Net cash provided by operating activities

166,177

310,090

Less: Capital expenditures

(173,630)

(202,659)

Less: Distributions to non-controlling interests in Martica

(15,736)

(16,525)

Free Cash Flow

(23,189)

90,906

Changes in Working Capital (1)

12,222

(21,311)

Free Cash Flow before Changes in Working Capital

(10,967)

69,595

(1)

Working capital adjustments in the third quarter of 2024 includes $11 million in net decreases in current assets and liabilities and $1 million in net decreases in accounts payable and accrued liabilities for additions to property and equipment. Working capital adjustments in the third quarter of 2025 includes $9 million in net increases in current assets and liabilities and $12 million in net increases in accounts payable and accrued liabilities for additions to property and equipment.

Third Quarter 2025 Financial Results

Net daily natural gas equivalent production in the third quarter averaged 3.4 Bcfe/d, including 206 MBbl/d of liquids. Antero's average realized natural gas price before hedges was $3.12 per Mcf, a $0.05 per Mcf premium to the benchmark index price. Antero's average realized C3+ NGL price before hedges was $36.60 per barrel, representing an $0.84 per barrel premium to the benchmark index price.

The following table details average net production and average realized prices for the three months ended September 30, 2025:

Three Months Ended September 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

2,195

6,728

114,076

84,870

3,429

Three Months Ended September 30, 2025

Natural Gas

Oil

C3+ NGLs

Ethane

Combined

Natural Gas

Equivalent

Average Realized Prices

($/Mcf)

($/Bbl)

($/Mcfe)

Average realized prices before settled derivatives

3.12

50.65

36.60

11.05

3.59

Index price (1)

3.07

64.93

35.76

9.72

3.07

Premium / (Discount) to Index price

0.05

(14.28)

0.84

1.33

0.52

Settled commodity derivatives

—

Average realized prices after settled derivatives

3.12

50.65

36.60

11.05

3.59

Premium / (Discount) to Index price

0.05

(14.28)

0.84

1.33

0.52

(1)

Please see Antero's Quarterly Report on Form 10-Q for the quarter ended September 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 $2.44 per Mcfe in the third quarter, as compared to $2.42 per Mcfe during the third quarter of 2024. Net marketing expense was $0.05 per Mcfe during the third quarter of 2025, flat from the third quarter of 2024.

Third Quarter 2025 Operating Results

Antero placed 16 Marcellus wells to sales during the third quarter with an average lateral length of 16,130 feet. Eleven of these wells have been on line for approximately 60 days with an average rate per well of 30 MMcfe/d, including 1,720 Bbl/d of liquids per well assuming 25% ethane recovery. In addition, Antero set a number of company drilling and completion records, including:

Third Quarter 2025 Capital Investment

Antero's drilling and completion capital expenditures for the three months ended September 30, 2025 were $172 million. In addition to capital invested in drilling and completion activities, the Company invested $42 million in land during the third quarter. Through this investment, Antero added approximately 7,000 net acres, representing 32 incremental drilling locations, doubling the 16 wells brought on line during the third quarter at an average cost of approximately $1.0 million 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. Year to date, Antero's organic leasing program has added 79 incremental drilling locations at an average cost of $900,000 per location.

Conference Call

A conference call is scheduled on Thursday, October 30, 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, November 6, 2025 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13750397. 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, November 6, 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 September 30,

2024

2025

Net income (loss) and comprehensive income (loss) attributable to Antero Resources

Corporation

(35,347)

76,179

Net income and comprehensive income attributable to noncontrolling interests

10,157

9,431

Unrealized commodity derivative gains

(14,100)

(40,812)

Amortization of deferred revenue, VPP

(6,812)

(6,368)

Loss (gain) on sale of assets

(1,297)

171

Impairment of property and equipment

13,455

12,228

Equity-based compensation

16,065

15,501

Loss on early extinguishment of debt

528

—

Equity in earnings of unconsolidated affiliate

(25,634)

(29,055)

Contract termination, loss contingency and settlements

(1,517)

12,571

Tax effect of reconciling items (1)

4,199

7,813

(40,303)

57,659

Martica adjustments (2)

(11,467)

(9,431)

Adjusted Net Income (Loss)

(51,770)

48,228

Diluted Weighted Average Common Shares Outstanding (3)

311,025

311,034

(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 September 30, 2024 were 5.2 million. Anti-dilutive weighted average shares outstanding for the three months ended September 30, 2025 were approximately zero.

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,

September 30,

2024

2025

Credit Facility

393,200

348,200

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

Unamortized debt issuance costs

(7,955)

(6,333)

Total long-term debt

1,489,230

1,307,220

Less: Cash and cash equivalents

—

Net Debt

1,489,230

1,307,220

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:

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 September 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 September 30,

2024

2025

Reconciliation of net income (loss) to Adjusted EBITDAX:

Net income (loss) and comprehensive income (loss) attributable to Antero Resources

Corporation

(35,347)

76,179

Net income and comprehensive income attributable to noncontrolling interests

10,157

9,431

Unrealized commodity derivative gains

(14,100)

(40,812)

Amortization of deferred revenue, VPP

(6,812)

(6,368)

Loss (gain) on sale of assets

(1,297)

171

Interest expense, net

28,278

18,232

Loss on early extinguishment of debt

528

—

Income tax expense (benefit)

(2,954)

43,330

Depletion, depreciation, amortization and accretion

190,264

189,724

Impairment of property and equipment

13,455

12,228

Exploration expense

671

844

Equity-based compensation expense

16,065

15,501

Equity in earnings of unconsolidated affiliate

(25,634)

(29,055)

Dividends from unconsolidated affiliate

31,314

31,313

Contract termination, loss contingency, transaction expense and other

(1,511)

12,885

203,077

333,603

Martica related adjustments (1)

(16,177)

(15,363)

Adjusted EBITDAX

186,900

318,240

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

Adjusted EBITDAX

186,900

318,240

Martica related adjustments (1)

16,177

15,363

Interest expense, net

(28,278)

(18,232)

Amortization of debt issuance costs and other

572

Exploration expense

(671)

(844)

Changes in current assets and liabilities

(10,615)

8,978

Contract termination, loss contingency, transaction expense and other

3,648

(13,457)

Other items

(1,556)

(48)

Net cash provided by operating activities

166,177

310,090

(1)

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

Twelve

Months Ended

September 30,

2025

Reconciliation of net income to Adjusted EBITDAX:

Net income and comprehensive income attributable to Antero Resources Corporation

590,384

Net income and comprehensive income attributable to noncontrolling interests

40,078

Unrealized commodity derivative gains

(19,799)

Amortization of deferred revenue, VPP

(25,708)

Loss on sale of assets

2,131

Interest expense, net

88,615

Loss on early extinguishment of debt

3,628

Income tax expense

41,750

Depletion, depreciation, amortization, and accretion

760,445

Impairment of property and equipment

52,618

Exploration

2,862

Equity-based compensation expense

63,670

Equity in earnings of unconsolidated affiliate

(112,204)

Dividends from unconsolidated affiliate

125,255

Contract termination, loss contingency, transaction expense and other

28,379

1,642,104

Martica related adjustments (1)

(63,036)

Adjusted EBITDAX

1,579,068

(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

September 30,

2024

2025

Drilling and completion costs (cash basis)

147,075

166,968

Change in accrued capital costs

893

4,792

Adjusted drilling and completion costs (accrual basis)

147,968

171,760

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 September 30, 2025.

ANTERO RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)

(Unaudited)

December 31,

September 30,

2024

2025

Assets

Current assets:

Accounts receivable

34,413

37,148

Accrued revenue

453,613

356,875

Derivative instruments

1,050

17,423

Prepaid expenses

12,423

9,347

Other current assets

6,047

7,001

Total current assets

507,546

427,794

Property and equipment:

Oil and gas properties, at cost (successful efforts method):

Unproved properties

879,483

883,387

Proved properties

14,395,680

14,892,584

Gathering systems and facilities

5,802

Other property and equipment

105,871

111,811

15,386,836

15,893,584

Less accumulated depletion, depreciation and amortization

(5,699,286)

(5,979,676)

Property and equipment, net

9,687,550

9,913,908

Operating leases right-of-use assets

2,549,398

2,266,976

Derivative instruments

1,296

638

Investment in unconsolidated affiliate

231,048

256,496

Other assets

33,212

46,245

Total assets

13,010,050

12,912,057

Liabilities and Equity

Current liabilities:

Accounts payable

62,213

61,087

Accounts payable, related parties

111,066

104,448

Accrued liabilities

402,591

305,000

Revenue distributions payable

315,932

361,255

Derivative instruments

31,792

—

Short-term lease liabilities

493,894

509,402

Deferred revenue, VPP

25,264

23,946

Other current liabilities

3,175

20,902

Total current liabilities

1,445,927

1,386,040

Long-term liabilities:

Long-term debt

1,489,230

1,307,220

Deferred income tax liability, net

693,341

839,097

Derivative instruments

17,233

24,820

Long-term lease liabilities

2,050,337

1,753,627

Deferred revenue, VPP

35,448

17,870

Other liabilities

62,001

65,776

Total liabilities

5,793,517

5,394,450

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 308,385 shares issued and

outstanding as of December 31, 2024 and September 30, 2025, respectively

3,111

3,083

Additional paid-in capital

5,909,373

5,854,090

Retained earnings

1,109,166

1,488,643

Total stockholders' equity

7,021,650

7,345,816

Noncontrolling interests

194,883

171,791

Total equity

7,216,533

7,517,607

Total liabilities and equity

13,010,050

12,912,057

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(In thousands, except per share amounts)

Three Months Ended September 30,

2024

2025

Revenue and other:

Natural gas sales

425,802

630,887

Natural gas liquids sales

504,200

470,392

Oil sales

52,724

31,351

Commodity derivative fair value gains

18,368

39,243

Marketing

47,160

34,902

Amortization of deferred revenue, VPP

6,812

6,368

Other revenue and income

854

851

Total revenue

1,055,920

1,213,994

Operating expenses:

Lease operating

29,597

32,415

Gathering, compression, processing and transportation

685,183

711,003

Production and ad valorem taxes

47,423

28,884

Marketing

62,144

51,068

Exploration

671

844

General and administrative (including equity-based compensation expense of $16,065 and

$15,501 in 2024 and 2025, respectively)

54,627

56,944

Depletion, depreciation and amortization

189,266

188,778

Impairment of property and equipment

13,455

12,228

Accretion of asset retirement obligations

998

946

Contract termination, loss contingency and settlements

(1,517)

12,571

Loss (gain) on sale of assets

(1,297)

171

Other operating expense

342

Total operating expenses

1,080,892

1,095,877

Operating income (loss)

(24,972)

118,117

Other income (expense):

Interest expense, net

(28,278)

(18,232)

Equity in earnings of unconsolidated affiliate

25,634

29,055

Loss on early extinguishment of debt

(528)

—

Total other income (expense)

(3,172)

10,823

Income (loss) before income taxes

(28,144)

128,940

Income tax benefit (expense)

2,954

(43,330)

Net income (loss) and comprehensive income (loss) including noncontrolling interests

(25,190)

85,610

Less: net income and comprehensive income attributable to noncontrolling interests

10,157

9,431

Net income (loss) and comprehensive income (loss) attributable to Antero Resources

Corporation

(35,347)

76,179

Net income (loss) per common share—basic

(0.11)

0.25

Net income (loss) per common share—diluted

(0.11)

0.24

Weighted average number of common shares outstanding:

Basic

311,025

308,763

Diluted

311,025

311,034

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

Nine Months Ended September 30,

2024

2025

Cash flows provided by (used in) operating activities:

Net income (loss) including noncontrolling interests

(65,116)

471,649

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depletion, depreciation, amortization and accretion

570,928

565,546

Impairment of property and equipment

18,958

24,143

Commodity derivative fair value gains

(22,229)

(20,981)

Gains (losses) on settled commodity derivatives

11,530

(18,940)

Deferred income tax expense (benefit)

(14,221)

145,757

Equity-based compensation expense

49,293

46,501

Equity in earnings of unconsolidated affiliate

(69,862)

(88,279)

Dividends of earnings from unconsolidated affiliate

93,883

93,941

Amortization of deferred revenue

(20,289)

(18,896)

Amortization of debt issuance costs and other

1,900

913

Settlement of asset retirement obligations

(3,171)

(71)

Contract termination, loss contingency and settlements

5,143

11,429

Loss (gain) on sale of assets

(1,127)

142

Loss on early extinguishment of debt

528

3,628

Changes in current assets and liabilities:

Accounts receivable

16,463

(2,735)

Accrued revenue

81,628

96,738

Prepaid expenses and other current assets

8,486

2,122

Accounts payable including related parties

4,277

(2,679)

Accrued liabilities

(63,395)

(94,535)

Revenue distributions payable

(33,429)

45,323

Other current liabilities

1,108

(529)

Net cash provided by operating activities

571,286

1,260,187

Cash flows provided by (used in) investing activities:

Additions to unproved properties

(69,033)

(89,954)

Drilling and completion costs

(509,303)

(523,302)

Additions to other property and equipment

(10,128)

(3,957)

Acquisitions of oil and gas properties

—

(241,162)

Proceeds from asset sales

7,484

15,956

Change in other assets

(7,271)

(11,770)

Net cash used in investing activities

(588,251)

(854,189)

Cash flows provided by (used in) financing activities:

Repurchases of common stock

—

(136,321)

Repayment of senior notes

—

(141,733)

Borrowings on Credit Facility

3,331,800

3,641,800

Repayments on Credit Facility

(3,222,300)

(3,686,800)

Payment of debt issuance costs

(6,064)

(1,078)

Distributions to noncontrolling interests in Martica Holdings LLC

(58,635)

(54,006)

Employee tax withholding for settlement of equity-based compensation awards

(27,024)

(26,749)

Other

(812)

(1,111)

Net cash provided by (used in) financing activities

16,965

(405,998)

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

109,444

80,909

Decrease in accounts payable, accrued liabilities and other current liabilities for additions to property and

equipment

(4,574)

(17,248)

Increase in other current liabilities for acquisitions of oil and gas properties

—

15,951

The following table sets forth selected financial data for the three months ended September 30, 2024 and 2025 (in thousands):

(Unaudited)

Three Months Ended

Amount of

September 30,

Increase

Percent

2024

2025

(Decrease)

Change

Revenue:

Natural gas sales

425,802

630,887

205,085

Natural gas liquids sales

504,200

470,392

(33,808)

(7)

Oil sales

52,724

31,351

(21,373)

(41)

Commodity derivative fair value gains

18,368

39,243

20,875

114

Marketing

47,160

34,902

(12,258)

(26)

Amortization of deferred revenue, VPP

6,812

6,368

(444)

(7)

Other revenue and income

854

851

(3)

Total revenue

1,055,920

1,213,994

158,074

Operating expenses:

Lease operating

29,597

32,415

2,818

Gathering and compression

226,224

231,413

5,189

Processing

276,569

289,035

12,466

Transportation

182,390

190,555

8,165

Production and ad valorem taxes

47,423

28,884

(18,539)

(39)

Marketing

62,144

51,068

(11,076)

(18)

Exploration

671

844

173

General and administrative (excluding equity-based compensation)

38,562

41,443

2,881

Equity-based compensation

16,065

15,501

(564)

(4)

Depletion, depreciation and amortization

189,266

188,778

(488)

Impairment of property and equipment

13,455

12,228

(1,227)

(9)

Accretion of asset retirement obligations

998

946

(52)

(5)

Contract termination and loss contingency

(1,517)

12,571

14,088

Loss (gain) on sale of assets

(1,297)

171

1,468

Other operating expense

342

(317)

(93)

Total operating expenses

1,080,892

1,095,877

14,985

Operating income (loss)

(24,972)

118,117

143,089

Other earnings (expenses):

Interest expense, net

(28,278)

(18,232)

10,046

(36)

Equity in earnings of unconsolidated affiliate

25,634

29,055

3,421

Loss on early extinguishment of debt

(528)

—

528

Total other income (expense)

(3,172)

10,823

13,995

Income (loss) before income taxes

(28,144)

128,940

157,084

Income tax (expense) benefit

2,954

(43,330)

(46,284)

Net income (loss) and comprehensive income (loss) including noncontrolling interests

(25,190)

85,610

110,800

Less: net income and comprehensive income attributable to noncontrolling interests

10,157

9,431

(726)

(7)

Net income (loss) and comprehensive income (loss) attributable to Antero Resources

Corporation

(35,347)

76,179

111,526

Adjusted EBITDAX

186,900

318,240

131,340

* Not meaningful

The following table sets forth selected financial data for the three months ended September 30, 2024 and 2025:

Three Months Ended

Amount of

September 30,

Increase

Percent

2024

2025

(Decrease)

Change

Production data (1) (2):

Natural gas (Bcf)

200

202

C2 Ethane (MBbl)

7,302

7,808

506

C3+ NGLs (MBbl)

10,793

10,495

(298)

(3)

Oil (MBbl)

856

619

(237)

(28)

Combined (Bcfe)

313

315

Daily combined production (MMcfe/d)

3,406

3,429

Average prices before effects of derivative settlements (3):

Natural gas (per Mcf)

2.13

3.12

0.99

C2 Ethane (per Bbl) (4)

8.01

11.05

3.04

C3+ NGLs (per Bbl)

41.30

36.60

(4.70)

(11)

Oil (per Bbl)

61.59

50.65

(10.94)

(18)

Weighted Average Combined (per Mcfe)

3.14

3.59

0.45

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

Natural gas (per Mcf)

2.14

3.12

0.98

C2 Ethane (per Bbl) (4)

8.01

11.05

3.04

C3+ NGLs (per Bbl)

41.56

36.60

(4.96)

(12)

Oil (per Bbl)

61.46

50.65

(10.81)

(18)

Weighted Average Combined (per Mcfe)

3.15

3.59

0.44

Average costs (per Mcfe):

Lease operating

0.09

0.10

0.01

Gathering and compression

0.72

0.73

0.01

Processing

0.88

0.92

0.04

Transportation

0.58

0.60

0.02

Production and ad valorem taxes

0.15

0.09

(0.06)

(40)

Marketing expense, net

0.05

—

General and administrative (excluding equity-based compensation)

0.12

0.13

0.01

Depletion, depreciation, amortization and accretion

0.61

0.60

(0.01)

(2)

* Not meaningful

(1)

Production data excludes volumes related to VPP transaction.

(2)

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

(3)

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

(4)

The average realized price for the three months ended September 30, 2025 includes less than $1 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 September 30, 2025 would have been $11.02 per Bbl.

SOURCE Antero Resources Corporation