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Antero Resources Announces Second Quarter 2024 Financial and Operating Results

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Antero Resources (NYSE: AR) reported its Q2 2024 results, highlighting a mixed performance.

Net production averaged 3.4 Bcfe/d, up 1% YoY. Natural gas production declined 4% to 2.1 Bcf/d, while liquids production rose 10% to 212 MBbl/d, now 37% of total production.

Realized natural gas equivalent price was $2.98 per Mcfe, a $1.09 premium to NYMEX. Reported a net loss of $66 million, with an adjusted net loss of $60 million (Non-GAAP). Adjusted EBITDAX was $151 million, and net cash from operations was $143 million.

Operational highlights include a record 11.9 completion stages per day and the second-highest production rate per well. Investment grade rating was achieved post upgrade from S&P.

Guidance for full-year 2024 was increased, with production expected between 3.375 to 3.425 Bcfe/d, driven by higher liquids volumes. C3+ NGL realized price guidance was raised, potentially boosting annual free cash flow by $60 million.

Despite financial losses, operational efficiency and strategic moves in NGL pricing remain strong points for Antero.

Antero Resources (NYSE: AR) ha riportato i risultati del secondo trimestre del 2024, evidenziando una performance mista.

La produzione netta è stata in media di 3,4 Bcfe/giorno, con un aumento dell'1% rispetto all'anno precedente. La produzione di gas naturale è diminuita del 4% a 2,1 Bcf/giorno, mentre la produzione di liquidi è aumentata del 10% a 212 MBbl/giorno, ora rappresentando il 37% della produzione totale.

Il prezzo equivalente del gas naturale realizato era di $2.98 per Mcfe, con un premio di $1.09 rispetto al NYMEX. È stata registrata una perdita netta di $66 milioni, con una perdita netta rettificata di $60 milioni (Non-GAAP). L'EBITDAX rettificato è stato di $151 milioni e il cash flow netto dalle operazioni è stato di $143 milioni.

Tra i punti salienti operativi spiccano un record di 11,9 fasi di completamento al giorno e il secondo tasso di produzione più alto per pozzo. È stata conseguita la valutazione di grado investimento dopo l'upgrade da parte di S&P.

La previsione per l'intero anno 2024 è stata aumentata, con una produzione attesa tra 3.375 e 3.425 Bcfe/giorno, sostenuta da volumi più elevati di liquidi. La guida sui prezzi realizzati per C3+ NGL è stata alzata, potenzialmente aumentando il flusso di cassa libero annuale di $60 milioni.

Nonostante le perdite finanziarie, l'efficienza operativa e le strategie nei prezzi NGL rimangono punti di forza per Antero.

Antero Resources (NYSE: AR) informó sus resultados del segundo trimestre de 2024, destacando un rendimiento mixto.

La producción neta promedió 3.4 Bcfe/día, un aumento del 1% interanual. La producción de gas natural decreció un 4% a 2.1 Bcf/día, mientras que la producción de líquidos aumentó un 10% a 212 MBbl/día, representando ahora el 37% de la producción total.

El precio equivalente de gas natural realizado fue de $2.98 por Mcfe, con una prima de $1.09 sobre NYMEX. Se reportó una pérdida neta de $66 millones, con una pérdida neta ajustada de $60 millones (Non-GAAP). El EBITDAX ajustado fue de $151 millones y el flujo de caja neto de las operaciones fue de $143 millones.

Los aspectos operativos destacados incluyen un récord de 11.9 etapas de finalización por día y la segunda tasa de producción más alta por pozo. Se logró una calificación de grado de inversión después de la mejora por parte de S&P.

La guía para todo el año 2024 fue incrementada, con una producción esperada entre 3.375 y 3.425 Bcfe/día, impulsada por volúmenes mayores de líquidos. La guía sobre el precio realizado de C3+ NGL se elevó, lo que podría aumentar el flujo de caja libre anual en $60 millones.

A pesar de las pérdidas financieras, la eficiencia operativa y los movimientos estratégicos en la fijación de precios de NGL siguen siendo puntos fuertes para Antero.

Antero Resources (NYSE: AR)는 2024년 2분기 실적을 발표하며 혼합 성과를 강조했습니다.

총 생산량은 하루 평균 3.4 Bcfe로, 전년 대비 1% 증가했습니다. 자연 가스 생산량은 4% 감소하여 2.1 Bcf/d가 되었고, 액체 생산량은 10% 증가하여 하루 212 MBbl로, 현재 총 생산량의 37%를 차지하고 있습니다.

실현된 자연 가스 등가 가격은 Mcfe당 $2.98로, NYMEX보다 $1.09 높은 가격입니다. 순 손실은 $66백만으로 보고되었으며, 조정된 순손실은 $60백만(비-GAAP)이었습니다. 조정된 EBITDAX는 $151백만, 운영에서 발생한 순 현금은 $143백만입니다.

작업 하이라이트에는 하루 11.9개의 완료 단계 기록과 우물당 두 번째로 높은 생산율이 포함됩니다. S&P로부터 등급 상승 후 투자 등급 평가를 달성했습니다.

2024년 전체 연도의 전망이 증가하여, 생산이 하루 3.375에서 3.425 Bcfe로 예상되며, 이는 더 높은 액체량에 의해 촉진됩니다. C3+ NGL 실현 가격 가이드도 인상되어 연간 자유 현금 흐름을 $60백만 증가시킬 가능성이 있습니다.

재정적 손실에도 불구하고, 운영 효율성과 NGL 가격 책정 전략은 Antero의 강점으로 남아 있습니다.

Antero Resources (NYSE: AR) a publié ses résultats du deuxième trimestre 2024, mettant en évidence une performance mixte.

La production nette a moyen de 3,4 Bcfe/jour, en hausse de 1 % par rapport à l'année précédente. La production de gaz naturel a diminué de 4 % à 2,1 Bcf/jour, tandis que la production de liquides a augmenté de 10 % à 212 MBbl/jour, représentant désormais 37 % de la production totale.

Le prix réalisé de l'équivalent de gaz naturel était de 2,98 $ par Mcfe, avec une prime de 1,09 $ par rapport à NYMEX. Une perte nette de 66 millions $ a été rapportée, avec une perte nette ajustée de 60 millions $ (Non-GAAP). L'EBITDAX ajusté était de 151 millions $, et le flux de trésorerie net provenant des opérations était de 143 millions $.

Les faits saillants opérationnels comprennent un record de 11,9 étapes d'achèvement par jour et le deuxième taux de production le plus élevé par puits. La notation de qualité d'investissement a été atteinte après une amélioration de S&P.

Les prévisions pour l'année 2024 ont été relevées, avec une production attendue entre 3,375 et 3,425 Bcfe/jour, tirée par des volumes de liquides plus élevés. Les prévisions de prix réalisés pour C3+ NGL ont été augmentées, ce qui pourrait potentiellement augmenter le flux de trésorerie libre annuel de 60 millions $.

Malgré les pertes financières, l'efficacité opérationnelle et les mouvements stratégiques dans la tarification NGL restent des points forts pour Antero.

Antero Resources (NYSE: AR) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht, die eine gemischte Performance aufzeigen.

Die Nettoproduktion belief sich auf durchschnittlich 3,4 Bcfe/Tag, was einem Anstieg von 1% im Vergleich zum Vorjahr entspricht. Die Produktion von Erdgas ging um 4% auf 2,1 Bcf/Tag zurück, während die Flüssigproduktion um 10% auf 212 MBbl/Tag stieg, was nun 37% der Gesamtproduktion ausmacht.

Der realisierte Preis für Erdgasäquivalent betrug 2,98 $ pro Mcfe und lag damit $1,09 über dem NYMEX. Es wurde ein Nettverlust von 66 Millionen $ gemeldet, mit einem bereinigten Nettverlust von 60 Millionen $ (Non-GAAP). Das bereinigte EBITDAX betrug 151 Millionen $, und der Nettokapitalfluss aus dem Betrieb lag bei 143 Millionen $.

Zu den operativen Highlights gehören ein Rekord von 11,9 Fertigstellungsphasen pro Tag und die zweithöchste Produktionsrate pro Bohrloch. Nach einem Upgrade von S&P wurde eine Investment-Grade-Bewertung erreicht.

Die Prognose für das gesamte Jahr 2024 wurde angehoben, wobei die Produktion voraussichtlich zwischen 3,375 und 3,425 Bcfe/Tag liegen wird, angetrieben durch höhere Flüssigkeitsmengen. Die Preisanpassung für C3+ NGL wurde angehoben, was den jährlichen freien Cashflow um 60 Millionen $ steigern könnte.

Trotz finanzieller Verluste bleiben die operative Effizienz und strategische Maßnahmen in der NGL-Preisgestaltung starke Punkte für Antero.

Positive
  • Achieved investment grade rating from S&P.
  • Increased liquids production by 10% YoY.
  • Set records in completion stages and lateral feet per well.
  • Increased production guidance for 2024 to 3.375-3.425 Bcfe/d.
  • Raising C3+ NGL price guidance, potentially increasing annual free cash flow by $60 million.
Negative
  • Reported a net loss of $66 million.
  • Adjusted net loss of $60 million.
  • Natural gas production declined by 4% YoY.
  • Free cash flow deficit of $63 million in Q2 2024.

Insights

Antero Resources' Q2 2024 results present a mixed picture. While the company increased production and saw strong liquids growth, it still reported a net loss of $66 million. Some key points:

  • Production averaged 3.4 Bcfe/d, up 1% year-over-year, driven by a 10% increase in liquids production to 212 MBbl/d.
  • Realized natural gas price was $1.92 per Mcf, a slight premium to NYMEX.
  • C3+ NGL price realization was strong at $40.27 per barrel, benefiting from export capabilities.
  • Free Cash Flow was negative $63 million for the quarter.
  • The company achieved an investment grade credit rating, which should reduce interest expenses.

Antero increased its full-year production guidance and NGL price realization guidance, which is positive. However, the company continues to face challenges from low natural gas prices. Its focus on capital efficiency and liquids production is helping offset some of this pressure, but profitability remains elusive in the current price environment.

Antero's Q2 results highlight some key trends in the U.S. natural gas sector:

  • Focus on liquids: With natural gas prices remaining low, Antero is leaning heavily on its liquids production, which now accounts for 56% of revenue. This strategy is common among gas producers seeking to boost margins.
  • Export advantage: Antero's ability to export NGLs through the Marcus Hook terminal is providing a significant price premium, showcasing the importance of export infrastructure.
  • Operational efficiency: The company set new records for completion stages per day and lateral length, demonstrating ongoing efficiency gains in the industry.
  • Capital discipline: Despite production increases, Antero is maintaining its capital expenditure guidance, reflecting the industry-wide focus on capital efficiency.
  • ESG focus: The company's emphasis on methane reduction and community investment aligns with broader industry trends towards improved environmental and social performance.

While these strategies are helping Antero navigate a challenging price environment, the company's financial performance underscores the ongoing difficulties faced by natural gas producers in the current market.

For investors, Antero's Q2 results present a nuanced picture:

  • Positive factors: Production growth, strong liquids performance, operational efficiency gains and an improved credit rating are all encouraging signs.
  • Concerns: Continued net losses and negative free cash flow highlight ongoing profitability challenges in the current price environment.
  • Strategy: Antero's focus on liquids and export capabilities appears sound, but success remains heavily dependent on commodity price movements.
  • Balance sheet: The investment grade rating should reduce borrowing costs, but debt levels remain a consideration.
  • Guidance: Increased production and NGL price realization guidance is positive, but investors should monitor execution.

Looking ahead, Antero's performance will likely remain closely tied to natural gas and NGL prices. The company's operational improvements provide some cushion, but a significant turnaround in profitability may require more favorable commodity prices. Investors should weigh Antero's strong operational performance against the challenging market conditions when considering their position.

DENVER, July 31, 2024 /PRNewswire/ -- Antero Resources Corporation (NYSE: AR) ("Antero Resources," "Antero," or the "Company") today announced its second quarter 2024 financial and operating results. The relevant unaudited condensed consolidated financial statements are included in Antero Resources' Quarterly Report on Form 10-Q for the quarter ended June 30, 2024. 

Second Quarter 2024 Highlights:

  • Net production averaged 3.4 Bcfe/d, an increase of 1% from the year ago period
    • Natural gas production averaged 2.1 Bcf/d, a decline of 4% from the year ago period
    • Liquids production averaged 212 MBbl/d, an increase of 10% from the year ago period and which now represents 37% of total production
  • Realized a pre-hedge natural gas equivalent price of $2.98 per Mcfe, a $1.09 per Mcfe premium to NYMEX pricing that averaged $1.89 per MMBtu
  • Net loss was $66 million, Adjusted Net Loss was $60 million (Non-GAAP)
  • Adjusted EBITDAX was $151 million (Non-GAAP); net cash provided by operating activities was $143 million
  • Averaged a record 11.9 completion stages per day in the quarter, including a monthly record of 12.8 stages per day during the month of May
  • Averaged a record of over 18,000 lateral feet per well for completed wells during the quarter, 16% above the prior quarterly record
  • Recorded second highest production rate per well for a pad in company history, averaging 37 MMcfe/d per well over 60 days
  • Achieved investment grade rating following upgrade from S&P and entered into new unsecured credit facility
  • Published Antero's 7th Annual ESG Report highlighting Antero's economic contributions to its communities of $1 billion in 2023 and a reduction in methane intensity by 78% and a reduction in Scope 1 and Scope 2 emissions by 59% since 2019

2024 Full-Year Guidance Updates:

  • Increasing production guidance range to 3.375 to 3.425 Bcfe/d driven by higher liquids volumes
    • Increase is despite deferring the turn in line of a five well drilled but uncompleted pad until the end of this year from the third quarter previously
  • Increasing C3+ NGL realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont Belvieu pricing, which is expected to increase annual Free Cash Flow by approximately $60 million relative to initial NGL pricing guidance

Paul Rady, Chairman, CEO and President of Antero Resources commented, "During the second quarter we continued to deliver strong capital efficiency results. We set a new quarterly completion record of nearly 12 stages per day. These faster completion times have reduced our cycle times to approximately 140 days in 2024, a dramatic reduction of 67% from just five years ago. Looking ahead, we plan to defer turning in line a drilled but uncompleted pad until the end of the year given current natural gas pricing. Despite this activity deferral, we increased our full year 2024 production guidance for the second consecutive quarter as we continue to see strong capital efficiency gains and well performance."

Michael Kennedy, CFO of Antero Resources said, "Our quarterly financial results continue to benefit from our significant exposure to liquids prices. Although natural gas production was down 4% from the year ago period, our liquids production increased 10% year-over-year, and now represents a record high 56% of our total revenue. This increase in liquids production drove 34% Adjusted EBITDAX growth from the prior year period, despite natural gas prices being down 10% over that time. In 2024, we made a strategic decision to increase C3+ NGL exposure to spot international prices where spreads have increased to near record levels. Antero's unconstrained access to international markets allows us to capture premiums to Mont Belvieu and leads us to an additional increase in C3+ NGL pricing guidance for this year."

Mr. Kennedy continued, "Antero's upgrade to an investment grade credit rating reflects our industry low maintenance capital requirements and our commitment to debt reduction over the last several years.  As a result of the capital efficiency gains, we were able to reduce our maintenance capital requirement by over $200 million in 2024. Additionally, we have reduced debt by more than $2 billion since the start of our debt reduction program in late 2019. We believe this peer-leading capital efficiency drives the lowest breakeven costs and positions Antero Resources as the premier operator in Appalachia."

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

2024 Guidance Update 

Antero is increasing its full year 2024 production guidance to 3.375 to 3.425 Bcfe/d, an increase at the midpoint of 25 MMcfe/d. The higher than expected volumes are driven by stronger well performance, higher liquids volumes and capital efficiency gains. 

Antero is increasing its full year 2024 C3+ NGL realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont Belvieu, up from the previous guidance of a premium of $0.00 to $1.00 per barrel. This increase in NGL realized price guidance reflects higher expected realizations from take-in-kind transactions, primarily through more exposure to premium international prices during 2024. Antero has firm transportation capacity to sell its propane and butane at the Marcus Hook Export Terminal in Philadelphia, PA.  Antero entered into transactions during the second quarter at prices greater than a $0.10 per gallon premium to Mont Belvieu and this premium has further increased in the third quarter. This increasing premium reflects tight Gulf Coast export capacity and continued strong international demand out of Marcus Hook.



 Full Year 2024 –


 Full Year 2024 –


 Full Year 2024 –


Initial


Prior

Revised

Full Year 2024 Guidance


Low


High


Low


High


Low


 High

Net Daily Natural Gas Equivalent Production (Bcfe/d)


 

3.3


 

3.4


 

3.35


 

3.4


 

3.375


 

3.425

C3+ NGL Realized Price – Expected Premium to Mont Belvieu ($/Bbl) 


 

($1.00)


 

$1.00


 

$0.00


 

$1.00


 

$1.00


 

$2.00

Free Cash Flow Impact

From C3+ NGL Price Increase (1)


-


 

+$20 million


 

+$60 million

















(1)  Based on the midpoint of C3+ NGL production guidance.

Note: Any 2024 guidance items not discussed in this release are unchanged from previously stated guidance.

Free Cash Flow

During the second quarter of 2024, Free Cash Flow deficit was $63 million.











Three Months Ended June 30,




2023


2024


Net cash provided by operating activities


$

155,263



143,499


Less: Net cash used in investing activities



(287,236)



(187,315)


Less: Proceeds from sale of assets, net



(220)



(55)


Less: Distributions to non-controlling interests in Martica



(31,745)



(19,282)


Free Cash Flow


$

(163,938)



(63,153)


Changes in Working Capital (1)



(52,709)



(11,700)


Free Cash Flow before Changes in Working Capital


$

(216,647)



(74,853)




(1)

Working capital adjustments in the second quarter of 2023 includes $51 million in net increases in current assets and liabilities and $2 million in net increases in accounts payable and accrued liabilities for additions to property and equipment.  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.

Second Quarter 2024 Financial Results

Net daily natural gas equivalent production in the second quarter averaged 3.4 Bcfe/d, including 212 MBbl/d of liquids. Antero's average realized natural gas price before hedging was $1.92 per Mcf, a $0.03 per Mcf premium to the average First-of-Month NYMEX Henry Hub price.

The following table details average net production and average realized prices for the three months ended June 30, 2024:





















Three Months Ended June 30, 2024













Combined Natural





Natural Gas


Oil


C3+ NGLs


Ethane


Gas Equivalent





(MMcf/d)


(Bbl/d)


(Bbl/d)


(Bbl/d)


(MMcfe/d)



Average Net Production



2,149



10,462



115,538



85,835



3,420






































Combined
















Natural




Natural Gas


Oil


C3+ NGLs


Ethane


Gas Equivalent


Average Realized Prices


($/Mcf)


($/Bbl)


($/Bbl)


($/Bbl)


($/Mcfe)


Average realized prices before settled derivatives


$

1.92



66.66



40.27



8.42



2.98


NYMEX average price (1)


$

1.89



80.57









1.89


Premium / (Discount) to NYMEX


$

0.03



(13.91)









1.09



















Settled commodity derivatives (2)


$

0.02



(0.16)



0.17





0.02


Average realized prices after settled derivatives


$

1.94



66.50



40.44



8.42



3.00


Premium / (Discount) to NYMEX


$

0.05



(14.07)









1.11


































(1)

The average index prices for natural gas and oil represent the NYMEX average first-of-month price and calendar month average West Texas Intermediate future price, respectively.

(2)

These commodity derivative instruments include contracts attributable to Martica Holdings LLC ("Martica"), Antero's consolidated variable interest entity. All gains or losses from Martica's derivative instruments are fully attributable to the noncontrolling interests in Martica, which includes portions of the natural gas and C3+ NGLs derivative instruments, as well as all oil derivative instruments during the three months ended June 30, 2024.

Antero's average realized C3+ NGL price was $40.27 per barrel. Antero shipped 53% of its total C3+ NGL net production on Mariner East 2 ("ME2") for export and realized an $0.08 per gallon premium to Mont Belvieu pricing on these volumes at Marcus Hook, PA. Antero sold the remaining 47% of C3+ NGL net production at a $0.06 per gallon discount to Mont Belvieu pricing at Hopedale, OH. The resulting blended price on 116 MBbl/d of net C3+ NGL production was a $0.02 per gallon premium, or $0.63 per barrel compared to Mont Belvieu pricing. 

Three Months Ended June 30, 2024





















Pricing Point


Net C3+ NGL

Production (Bbl/d)


% by Destination


Premium

(Discount)

To Mont Belvieu ($/Gal)

Propane / Butane on ME2 - Exported to International Markets

Marcus Hook, PA


61,587


53 %


$0.08

Remaining C3+ NGL Volume – Sold Domestically

Hopedale, OH


53,951


47 %


($0.06)

Total C3+ NGLs / Blended Premium  




115,538


100 %


$0.02










        Total C3+ NGLs Premium to Mont Belvieu ($/Bbl)








$0.63

 

All-in cash expense, which includes lease operating, gathering, compression, processing and transportation, production and ad valorem taxes was $2.36 per Mcfe in the second quarter, as compared to $2.35 per Mcfe average during the second quarter of 2023. Lower transportation expense was offset by higher gathering, compression and processing costs primarily related to CPI-based adjustments in 2024. Net marketing expense was $0.07 per Mcfe in the second quarter, unchanged from the $0.07 per Mcfe during the second quarter of 2023. The increase in net marketing expense from the first quarter of 2024 was related to higher unutilized expense during the second quarter of 2024 related to maintenance on a third-party long-haul pipeline, which has since been completed. The company continues to forecast annual net marketing expense to be in the range of $0.04 to $0.06 per Mcfe.

Second Quarter 2024 Operating Results

Antero placed 11 horizontal Marcellus wells to sales during the second quarter with an average lateral length of 18,172 feet.

Highlights:

  • A six well pad had the second highest 60-day rate in company history, averaging 37 MMcfe/d per well with approximately 2,044 Bbl/d of liquids assuming 25% ethane recovery. These wells have an average lateral length of 16,750 feet.
  • A five well pad had a 60-day rate averaging 34 MMcfe/d per well with approximately 2,103 Bbl/d of liquids assuming 25% ethane recovery. These wells have an average lateral length of 19,878 feet.

Second Quarter 2024 Capital Investment

Antero's drilling and completion capital expenditures for the three months ended June 30, 2024, were $164 million. The Company continues to forecast total drilling and completion capital in 2024 to be in the range of $650 to $700 million.  In addition to capital invested in drilling and completion activities, the Company invested $21 million in land during the second quarter. During the quarter, Antero added approximately 3,500 net acres, representing 13 incremental drilling locations at an average cost of approximately $750,000 per location. These incremental locations more than offset the wells Antero turned to sales during the second quarter of 2024. The company continues to forecast total land capital in 2024 to be in the range of $75 million to $100 million.

Investment Grade Rating and New Credit Facility

On May 15, 2024, S&P upgraded Antero's corporate and issuer credit ratings to BBB- from BB+ with a stable outlook. The Company has maintained an investment grade credit rating from Fitch Ratings since September of 2022.  On July 30, 2024, Antero entered into a new unsecured credit facility with lender commitments of $1.65 billion. With the investment grade rating, letters of credit were reduced from $443 million to $120 million. Antero expects interest expense to decrease by $15 million on an annual basis and realized over $350 million of increased liquidity as a result of the upgrade.

2023 ESG Report Highlights

On July 31, 2024, Antero published its 2023 ESG Report, marking the Company's 7th 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, continued commitment to safety across our operations, and our innovative project to directly address energy poverty in Ghana.

  • Contributed $1 billion in 2023 to local communities in which Antero operates, including; $816 million in lease and royalty payments, $158 million in property and severance taxes, and $24 million invested in road infrastructure improvements
  • Reduced methane leak loss rate by 76% and Scope 1 GHG intensity by 63% since 2019
  • Reduced methane intensity by 78% and its combined Scope 1 and 2 emissions by 59% since 2019, putting the Company on target to achieve its Net Zero 2025 goal
  • Recycled 89% of the wastewater in 2023 and reduced wastewater injection volumes by 72% since 2019
  • In 2024, Antero finalized a commercial agreement with Envirofit International to provide cleaner-burning LPG stoves in Ghana, Africa. This strategic initiative will improve air quality and overall health for the Ghanaian residents utilizing the stoves, while also providing the opportunity for thousands of Ghanaians to transition to a more modern, reliable and cost-effective energy source. This project will generate significant employment opportunities through local manufacturing and distribution as well as premium certified carbon offsets that are expected to help Antero achieve the Company's 2025 Net Zero Scope 1 GHG emissions goal.

Commodity Derivative Positions

Antero did not enter into any new natural gas or oil hedges during the second quarter of 2024.

Please see Antero's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, for more information on all commodity derivative positions.  For detail on current commodity positions, please see the Hedge Profile presentations at www.anteroresources.com.

Conference Call

A conference call is scheduled on Thursday, August 1, 2024 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 8, 2024 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13743656. 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 8, 2024 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 (Loss)  

Adjusted Net Income (Loss) as set forth in this release represents net income (loss), adjusted for certain items. Antero believes that Adjusted Net Income (Loss) 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 (Loss) is not a measure of financial performance under GAAP and should not be considered in isolation or as a substitute for net income (loss) as an indicator of financial performance. The GAAP measure most directly comparable to Adjusted Net Income (Loss) is net income (loss). The following table reconciles net loss to Adjusted Net Loss (in thousands):











Three Months Ended June 30,




2023


2024


Net loss and comprehensive loss attributable to Antero Resources Corporation


$

(83,084)



(65,663)


Net income and comprehensive income attributable to noncontrolling interests



15,151



5,208


Unrealized commodity derivative (gains) losses



(4,803)



11,479


Amortization of deferred revenue, VPP



(7,618)



(6,739)


Gain on sale of assets



(220)



(18)


Impairment of property and equipment



15,710



313


Equity-based compensation



13,512



17,151


Equity in earnings of unconsolidated affiliate



(19,098)



(20,881)


Contract termination and loss contingency



4,441



3,009


Tax effect of reconciling items (1)



(414)



(938)





(66,423)



(57,079)


Martica adjustments (2)



(17,255)



(3,225)


Adjusted Net Loss


$

(83,678)



(60,304)










Diluted Weighted Average Common Shares Outstanding (3)



300,141



310,806




(1)

Deferred taxes were approximately 21% and 22% for 2023 and 2024, respectively.

(2)

Adjustments reflect noncontrolling interest 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 June 30, 2023 and 2024 were 15.3 million and 5.8 million, respectively.

 

Net Debt

Net Debt is calculated as total long-term debt less cash and cash equivalents. Management uses Net Debt to evaluate the Company's financial position, including its ability to service its debt obligations.

The following table reconciles consolidated total long-term debt to Net Debt as used in this release (in thousands):











December 31,


June 30,




2023


2024


Credit Facility


$

417,200



496,000


8.375% senior notes due 2026



96,870



96,870


7.625% senior notes due 2029



407,115



407,115


5.375% senior notes due 2030



600,000



600,000


4.250% convertible senior notes due 2026



26,386




Unamortized debt issuance costs



(9,975)



(8,777)


Total long-term debt


$

1,537,596



1,591,208


Less: Cash and cash equivalents






Net Debt


$

1,537,596



1,591,208


 

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 net cash used in investing activities, which includes drilling and completion capital and leasehold capital, plus payments for derivative monetization, less proceeds from asset sales or derivative monetization and 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 (loss), 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 (loss) and net cash provided by operating activities.  The following table represents a reconciliation of Antero's net income (loss), 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, 2023 and 2024 (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,




2023


2024


Reconciliation of net loss to Adjusted EBITDAX:








Net loss and comprehensive loss attributable to Antero Resources Corporation


$

(83,084)



(65,663)


Net income and comprehensive income attributable to noncontrolling interests



15,151



5,208


Unrealized commodity derivative (gains) losses



(4,803)



11,479


Amortization of deferred revenue, VPP



(7,618)



(6,739)


Gain on sale of assets



(220)



(18)


Interest expense, net



27,928



32,681


Income tax benefit



(29,833)



(13,334)


Depletion, depreciation, amortization and accretion



172,610



171,316


Impairment of property and equipment



15,710



313


Exploration expense



743



643


Equity-based compensation expense



13,512



17,151


Equity in earnings of unconsolidated affiliate



(19,098)



(20,881)


Dividends from unconsolidated affiliate



31,284



31,284


Contract termination, loss contingency, transaction expense and other



4,444



3,020





136,726



166,460


Martica related adjustments (1)



(23,625)



(15,058)


Adjusted EBITDAX


$

113,101



151,402










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








Adjusted EBITDAX


$

113,101



151,402


Martica related adjustments (1)



23,625



15,058


Interest expense, net



(27,928)



(32,681)


Amortization of debt issuance costs and other



861



613


Exploration expense



(743)



(643)


Changes in current assets and liabilities



51,144



11,392


Contract termination, loss contingency, transaction expense and other



(4,444)



(214)


Other items



(353)



(1,428)


Net cash provided by operating activities


$

155,263



143,499




(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,



2023


2024

Drilling and completion costs (cash basis)


$

244,437



173,323

Change in accrued capital costs



2,316



(9,116)

Adjusted drilling and completion costs (accrual basis)


$

246,753



164,207

 

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.

Antero Resources is an independent natural gas and natural gas liquids company engaged in the acquisition, development and production of unconventional properties located in the Appalachian Basin in West Virginia and Ohio. In conjunction with its affiliate, Antero Midstream Corporation (NYSE: AM), Antero is one of the most integrated natural gas producers in the U.S.  The Company's website is located at www.anteroresources.com.

This  release includes "forward-looking statements." Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero Resources' control. All statements, except for statements of historical fact, made in this release regarding activities, events or developments Antero Resources expects, believes or anticipates will or may occur in the future, such as those regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, anticipated reductions in letters of credit and interest expense, prospects, plans and objectives of management,  return of capital, expected results, 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, estimated realized natural gas, NGL and oil prices, impacts of geopolitical and world health events, expected drilling and development plans, projected well costs and cost savings initiatives, future financial position, the participation level of our drilling partner and the financial and production results to be achieved as a result of that drilling partnership, the other key assumptions underlying our projections, and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All forward-looking statements speak only as of the date of this release. Although Antero Resources believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.

Antero Resources cautions you that these forward-looking statements are subject to all of the risks and uncertainties, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil, most of which are difficult to predict and many of which are beyond the Antero Resources' control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of geopolitical and world health events, cybersecurity risks, our ability to achieve Net Zero Scope 1 and Scope 2 GHG emissions and the costs associated therewith, the state of markets for, and availability of, verified quality carbon offsets and the other risks described under the heading "Item 1A. Risk Factors" in Antero Resources' Annual Report on Form 10-K for the year ended December 31, 2023 and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024.

ANTERO RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands, except per share amounts)







(Unaudited)




December 31,


June 30,




2023


2024


Assets


Current assets:








Accounts receivable


$

42,619



23,552


Accrued revenue



400,805



362,451


Derivative instruments



5,175



2,440


Prepaid expenses



12,901



9,789


Other current assets



14,192



10,758


Total current assets



475,692



408,990


Property and equipment:








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








Unproved properties



974,642



963,023


Proved properties



13,908,804



14,179,028


Gathering systems and facilities



5,802



5,802


Other property and equipment



98,668



106,684





14,987,916



15,254,537


Less accumulated depletion, depreciation and amortization



(5,063,274)



(5,296,438)


Property and equipment, net



9,924,642



9,958,099


Operating leases right-of-use assets



2,965,880



2,797,447


Derivative instruments



5,570



3,176


Investment in unconsolidated affiliate



222,255



223,552


Other assets



25,375



24,579


Total assets


$

13,619,414



13,415,843


Liabilities and Equity


Current liabilities:








Accounts payable


$

38,993



38,229


Accounts payable, related parties



86,284



97,455


Accrued liabilities



381,340



365,347


Revenue distributions payable



361,782



329,375


Derivative instruments



15,236



22,756


Short-term lease liabilities



540,060



525,636


Deferred revenue, VPP



27,101



26,153


Other current liabilities



1,295



1,061


Total current liabilities



1,452,091



1,406,012


Long-term liabilities:








Long-term debt



1,537,596



1,591,208


Deferred income tax liability, net



834,268



830,826


Derivative instruments



32,764



23,516


Long-term lease liabilities



2,428,450



2,268,031


Deferred revenue, VPP



60,712



48,184


Other liabilities



59,431



56,107


Total liabilities



6,405,312



6,223,884


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; 303,544 and 310,988 shares issued and
outstanding as of December 31, 2023 and June 30, 2024, respectively



3,035



3,110


Additional paid-in capital



5,846,541



5,879,390


Retained earnings



1,131,828



1,102,510


Total stockholders' equity



6,981,404



6,985,010


Noncontrolling interests



232,698



206,949


Total equity



7,214,102



7,191,959


Total liabilities and equity


$

13,619,414



13,415,843


 

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except per share amounts)












Three Months Ended June 30,




2023


2024


Revenue and other:








Natural gas sales


$

437,130



374,568


Natural gas liquids sales



397,733



489,191


Oil sales



57,962



63,458


Commodity derivative fair value gains (losses)



8,284



(5,585)


Marketing



43,793



49,418


Amortization of deferred revenue, VPP



7,618



6,739


Other revenue and income



785



865


Total revenue



953,305



978,654


Operating expenses:








Lease operating



28,748



29,759


Gathering, compression, processing and transportation



663,975



663,442


Production and ad valorem taxes



36,158



41,933


Marketing



66,175



70,807


Exploration



743



643


General and administrative (including equity-based compensation expense of $13,512 and
$17,151 in 2023 and 2024, respectively)



53,901



59,428


Depletion, depreciation and amortization



171,406



170,536


Impairment of property and equipment



15,710



313


Accretion of asset retirement obligations



1,204



780


Contract termination and loss contingency



4,441



3,009


Gain on sale of assets



(220)



(18)


Other operating expense





11


Total operating expenses



1,042,241



1,040,643


Operating loss



(88,936)



(61,989)


Other income (expense):








Interest expense, net



(27,928)



(32,681)


Equity in earnings of unconsolidated affiliate



19,098



20,881


Total other expense



(8,830)



(11,800)


Loss before income taxes



(97,766)



(73,789)


Income tax benefit



29,833



13,334


Net loss and comprehensive loss including noncontrolling interests



(67,933)



(60,455)


Less: net income and comprehensive income attributable to noncontrolling interests



15,151



5,208


Net loss and comprehensive loss attributable to Antero Resources Corporation


$

(83,084)



(65,663)










Loss per common share—basic


$

(0.28)



(0.21)


Loss per common share—diluted


$

(0.28)



(0.21)










Weighted average number of common shares outstanding:








Basic



300,141



310,806


Diluted



300,141



310,806


 

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)












Six Months Ended June 30,




2023


2024


Cash flows provided by (used in) operating activities:








Net income (loss) including noncontrolling interests


$

193,269



(12,168)


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








Depletion, depreciation, amortization and accretion



341,070



345,146


Impairments



31,270



5,503


Commodity derivative fair value gains



(134,476)



(3,861)


Gains (losses) on settled commodity derivatives



(10,787)



7,262


Payments for derivative monetizations



(202,339)




Deferred income tax expense (benefit)



32,288



(3,442)


Equity-based compensation expense



26,530



33,228


Equity in earnings of unconsolidated affiliate



(36,779)



(44,228)


Dividends of earnings from unconsolidated affiliate



62,569



62,569


Amortization of deferred revenue



(15,151)



(13,477)


Amortization of debt issuance costs and other



1,732



1,328


Settlement of asset retirement obligations



(633)



(1,680)


Contract termination and loss contingency





3,006


Loss (gain) on sale of assets



(311)



170


Loss on convertible note inducement



86




Changes in current assets and liabilities:








Accounts receivable



(1,399)



19,067


Accrued revenue



384,245



38,354


Prepaid expenses and other current assets



21,294



6,547


Accounts payable including related parties



12,701



6,616


Accrued liabilities



(102,668)



(14,830)


Revenue distributions payable



(108,723)



(32,406)


Other current liabilities



5,377



2,405


Net cash provided by operating activities



499,165



405,109


Cash flows provided by (used in) investing activities:








Additions to unproved properties



(110,447)



(43,571)


Drilling and completion costs



(517,591)



(362,228)


Additions to other property and equipment



(9,058)



(9,035)


Proceeds from asset sales



311



418


Change in other assets



(1,255)



291


Net cash used in investing activities



(638,040)



(414,125)


Cash flows provided by (used in) financing activities:








Repurchases of common stock



(75,356)




Borrowings on Credit Facility



2,533,300



1,950,000


Repayments on Credit Facility



(2,208,200)



(1,871,200)


Convertible note inducement



(86)




Distributions to noncontrolling interests in Martica Holdings LLC



(83,084)



(42,899)


Employee tax withholding for settlement of equity-based compensation awards



(27,357)



(26,355)


Other



(342)



(530)


Net cash provided by financing activities



138,875



9,016


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


$

51,927



63,512


Decrease in accounts payable and accrued liabilities for additions to property and equipment


$

(8,353)



(2,967)


 

The following table sets forth selected financial data for the three months ended June 30, 2023 and 2024:

















(Unaudited)









Three Months Ended


Amount of






June 30,


Increase


Percent




2023


2024


(Decrease)


Change


Revenue:













Natural gas sales


$

437,130



374,568



(62,562)


(14)

%

Natural gas liquids sales



397,733



489,191



91,458


23

%

Oil sales



57,962



63,458



5,496


9

%

Commodity derivative fair value gains (losses)



8,284



(5,585)



(13,869)


*


Marketing



43,793



49,418



5,625


13

%

Amortization of deferred revenue, VPP



7,618



6,739



(879)


(12)

%

Other revenue and income



785



865



80


10

%

Total revenue



953,305



978,654



25,349


3

%

Operating expenses:













Lease operating



28,748



29,759



1,011


4

%

Gathering and compression



211,691



222,139



10,448


5

%

Processing



262,642



269,985



7,343


3

%

Transportation



189,642



171,318



(18,324)


(10)

%

Production and ad valorem taxes



36,158



41,933



5,775


16

%

Marketing



66,175



70,807



4,632


7

%

Exploration



743



643



(100)


(13)

%

General and administrative (excluding equity-based compensation)



40,389



42,277



1,888


5

%

Equity-based compensation



13,512



17,151



3,639


27

%

Depletion, depreciation and amortization



171,406



170,536



(870)


(1)

%

Impairment of property and equipment



15,710



313



(15,397)


(98)

%

Accretion of asset retirement obligations



1,204



780



(424)


(35)

%

Contract termination and loss contingency



4,441



3,009



(1,432)


(32)

%

Gain on sale of assets



(220)



(18)



202


(92)

%

Other operating expense





11



11


*


Total operating expenses



1,042,241



1,040,643



(1,598)


*


Operating loss



(88,936)



(61,989)



26,947


(30)

%

Other earnings (expenses):













Interest expense, net



(27,928)



(32,681)



(4,753)


17

%

Equity in earnings of unconsolidated affiliate



19,098



20,881



1,783


9

%

Total other expense



(8,830)



(11,800)



(2,970)


34

%

Loss before income taxes



(97,766)



(73,789)



23,977


(25)

%

Income tax benefit



29,833



13,334



(16,499)


(55)

%

Net loss and comprehensive loss including noncontrolling interests



(67,933)



(60,455)



7,478


(11)

%

Less: net income and comprehensive income attributable to noncontrolling interests



15,151



5,208



(9,943)


(66)

%

Net loss and comprehensive loss attributable to Antero Resources Corporation


$

(83,084)



(65,663)



17,421


(21)

%














Adjusted EBITDAX


$

113,101



151,402



38,301


34

%


*   Not meaningful

 

The following table sets forth selected financial data for the three months ended June 30, 2023 and 2024:
















Three Months Ended


Amount of






June 30,


Increase


Percent




2023


2024


(Decrease)


Change


Production data (1) (2):













Natural gas (Bcf)



204



196



(8)


(4)

%

C2 Ethane (MBbl)



6,414



7,811



1,397


22

%

C3+ NGLs (MBbl)



10,175



10,514



339


3

%

Oil (MBbl)



971



952



(19)


(2)

%

Combined (Bcfe)



309



311



2


1

%

Daily combined production (MMcfe/d)



3,400



3,420



20


1

%

Average prices before effects of derivative settlements (3):













Natural gas (per Mcf)


$

2.14



1.92



(0.22)


(10)

%

C2 Ethane (per Bbl) (4)


$

7.82



8.42



0.60


8

%

C3+ NGLs (per Bbl)


$

34.16



40.27



6.11


18

%

Oil (per Bbl)


$

59.69



66.66



6.97


12

%

Weighted Average Combined (per Mcfe)


$

2.89



2.98



0.09


3

%

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













Natural gas (per Mcf)


$

2.16



1.94



(0.22)


(10)

%

C2 Ethane (per Bbl) (4)


$

7.82



8.42



0.60


8

%

C3+ NGLs (per Bbl)


$

34.11



40.44



6.33


19

%

Oil (per Bbl)


$

59.40



66.50



7.10


12

%

Weighted Average Combined (per Mcfe)


$

2.90



3.00



0.10


3

%

Average costs (per Mcfe):













Lease operating


$

0.09



0.10



0.01


11

%

Gathering and compression


$

0.68



0.71



0.03


4

%

Processing


$

0.85



0.87



0.02


2

%

Transportation


$

0.61



0.55



(0.06)


(10)

%

Production and ad valorem taxes


$

0.12



0.13



0.01


8

%

Marketing expense, net


$

0.07



0.07




*


General and administrative (excluding equity-based compensation)


$

0.13



0.14



0.01


8

%

Depletion, depreciation, amortization and accretion


$

0.56



0.55



(0.01)


(2)

%



*

Not meaningful

(1)

Production volumes exclude 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, 2023 and 2024 includes $1 million and $0.1 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, 2023 and 2024 would have been $7.65 per Bbl and $8.41 per Bbl, respectively.

 

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SOURCE Antero Resources Corporation

FAQ

What were Antero Resources' Q2 2024 production figures?

Net production averaged 3.4 Bcfe/d, with natural gas production at 2.1 Bcf/d and liquids production at 212 MBbl/d.

How did Antero Resources perform financially in Q2 2024?

Antero reported a net loss of $66 million and an adjusted net loss of $60 million in Q2 2024.

What is Antero Resources' updated full-year 2024 production guidance?

Antero increased its full-year 2024 production guidance to 3.375-3.425 Bcfe/d.

What changes were made to Antero Resources' C3+ NGL price guidance for 2024?

Antero raised its C3+ NGL realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont Belvieu pricing.

What operational efficiencies did Antero Resources achieve in Q2 2024?

Antero set records in completion stages per day and lateral feet per well, and achieved the second-highest production rate per well.

Antero Midstream Corporation

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