分组1 - Antero Resources reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.48 per share, compared to a loss of $0.19 per share a year ago, representing an earnings surprise of -27.08% [1] - The company posted revenues of $1.3 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.38%, and compared to year-ago revenues of $978.65 million [2] - Antero Resources shares have lost about 3.8% since the beginning of the year, while the S&P 500 has gained 8.3% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.62 on $1.35 billion in revenues, and for the current fiscal year, it is $2.90 on $5.48 billion in revenues [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 31% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8]

[Report Highlights and Management Commentary](index=1&type=section&id=Report%20Highlights%20and%20Management%20Commentary) Antero reported strong Q2 2025 results, increasing full-year production guidance while lowering capital expenditure forecasts, highlighting strong well performance, significant debt reduction, and opportunistic share buybacks, positioning the company to benefit from future growth in LNG exports and power demand driven by AI data centers Q2 2025 Key Metrics and Full-Year Guidance Updates | Metric | Q2 2025 Result / FY 2025 Guidance | | :--- | :--- | | **Q2 2025 Highlights** | | | Net Production | 3.4 Bcfe/d | | Net Income | $157 million | | Adjusted EBITDAX | $379 million (+151% YoY) | | Free Cash Flow | $262 million | | Debt Reduction (Quarter) | $187 million | | Share Purchases (Apr 1 - Jul 30) | 3.6 million shares for ~$126 million | | **Full-Year 2025 Guidance Updates** | | | Production Guidance | Increased to 3.4 - 3.45 Bcfe/d | | Drilling & Completion Capital | Decreased to $650 - $675 million | - CEO Paul Rady emphasized that **strong well performance** and **capital efficiency** allowed for **increased production guidance** with a **reduced capital budget**, highlighting Antero's strategic position to benefit from expected natural gas demand growth from **LNG exports** and **AI Data Centers**[3](index=3&type=chunk) - CFO Michael Kennedy stated that **strong Free Cash Flow** was used to pay down nearly **$200 million in debt** and buy back **$85 million in stock** during Q2, with year-to-date debt reduced by approximately **$400 million (30% of total)** and **$152 million of stock** purchased[3](index=3&type=chunk) [2025 Guidance Update](index=2&type=section&id=2025%20Guidance%20Update) The company increased its full-year 2025 production guidance to 3.4-3.45 Bcfe/d due to strong well performance and simultaneously decreased its drilling and completion capital budget to $650-$675 million, citing continued capital efficiency gains, with C3+ NGL realized price premium guidance also updated Revised Full Year 2025 Guidance | Full Year 2025 Guidance | Low | High | | :--- | :--- | :--- | | Net Daily Natural Gas Equivalent Production (Bcfe/d) | 3.4 | 3.45 | | Drilling and Completion Capital Budget ($MM) | $650 | $675 | | C3+ NGL Realized Price Premium vs Mont Belvieu ($/Bbl) | $1.00 | $2.00 | - The **increase in production guidance** is attributed to **stronger than expected well performance**[5](index=5&type=chunk) - The **decrease in the drilling and completion capital budget** is a result of **continued capital efficiency gains**[5](index=5&type=chunk) [Capital Management and Shareholder Returns](index=2&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) Antero generated $262 million in Free Cash Flow in Q2 2025, which was primarily allocated towards significant debt reduction and opportunistic share repurchases, reducing total debt by $187 million during the quarter and repurchasing $126 million in stock between April and July, demonstrating a balanced approach to capital allocation [Free Cash Flow](index=2&type=section&id=Free%20Cash%20Flow) The company generated $262 million in Free Cash Flow during Q2 2025, a significant turnaround from a negative $68 million in the same period last year, driven by a 243% year-over-year increase in net cash from operating activities Free Cash Flow (in thousands) | | Three Months Ended June 30, | | :--- | :--- | | | **2024** | **2025** | | Net cash provided by operating activities | $143,499 | $492,358 | | Less: Capital expenditures | ($192,385) | ($208,409) | | Less: Distributions to non-controlling interests in Martica | ($19,282) | ($21,512) | | **Free Cash Flow** | **($68,168)** | **$262,437** | [Share Purchase Program](index=2&type=section&id=Share%20Purchase%20Program) From April 1 to July 30, 2025, Antero repurchased 3.6 million shares for $126 million at an average price of $34.49 per share, representing an 8% discount to the volume-weighted average price during that period, with approximately $900 million remaining available under the current buyback authorization - Purchased **3.6 million shares** for an aggregate of **$126 million** between April 1, 2025, and July 30, 2025[10](index=10&type=chunk) - The company has approximately **$900 million** of capacity remaining on its current share purchase program[10](index=10&type=chunk) [Debt Reduction](index=2&type=section&id=Debt%20Reduction) Total debt was reduced to $1.1 billion as of June 30, 2025, reflecting a $187 million reduction during the second quarter, with year-to-date debt lowered by approximately $400 million, or 30% of the total, and the company's Net Debt to trailing twelve-month Adjusted EBITDAX ratio standing at a healthy 0.8x - Total debt was reduced by **$187 million** during Q2 2025, bringing the total to **$1.1 billion**[11](index=11&type=chunk) - Year-to-date debt reduction as of Q2 end was approximately **$400 million**, or **30% of total debt**[11](index=11&type=chunk) - Net Debt to trailing twelve-month Adjusted EBITDAX was **0.8x**[11](index=11&type=chunk) [Hedging and Financial Results](index=3&type=section&id=Hedging%20and%20Financial%20Results) Antero reported net income of $157 million for Q2 2025, with production averaging 3.4 Bcfe/d, realizing strong pre-hedge natural gas equivalent prices at a premium to NYMEX, and adding new costless collars for 2026 to manage future price risk, while all-in cash expenses increased year-over-year primarily due to higher fuel costs associated with rising natural gas prices [Natural Gas Hedge Program](index=2&type=section&id=Natural%20Gas%20Hedge%20Program) Antero added new natural gas costless collars for 2026, covering 500,000 MMBtu/d (21% of estimated production), with these hedges having a floor price of $3.14/MMBtu and a ceiling of $6.31/MMBtu, locking in attractive returns, and no new hedges added for 2025 Natural Gas Hedge Position | Period | Type | Volume (MMBtu/d) | Floor/Swap Price ($/MMBtu) | Ceiling Price ($/MMBtu) | % of Est. Production | | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 | NYMEX Henry Hub Swap | 100,000 | $3.12 | N/A | 4% | | 2026 | NYMEX Henry Hub Costless Collars | 500,000 | $3.14 | $6.31 | 21% | [Second Quarter 2025 Financial Results](index=3&type=section&id=Second%20Quarter%202025%20Financial%20Results) In Q2 2025, net production averaged 3.4 Bcfe/d, including 200 MBbl/d of liquids, with the company achieving a pre-hedge natural gas equivalent price of $3.85/Mcfe, and all-in cash expense increasing to $2.48/Mcfe from $2.36/Mcfe in Q2 2024, mainly due to higher gathering, compression, processing, and transportation costs linked to increased fuel costs Q2 2025 Average Net Production and Realized Prices (Pre-Hedge) | Category | Average Net Production | Average Realized Price | | :--- | :--- | :--- | | Natural Gas | 2,230 MMcf/d | $3.39 /Mcf | | Oil | 7,385 Bbl/d | $50.15 /Bbl | | C3+ NGLs | 116,571 Bbl/d | $37.92 /Bbl | | Ethane | 76,088 Bbl/d | $11.34 /Bbl | | **Total Equivalent** | **3,430 MMcfe/d** | **$3.85 /Mcfe** | - All-in cash expense increased to **$2.48 per Mcfe** in Q2 2025 from **$2.36 per Mcfe** in Q2 2024, primarily due to **higher gathering, compression, processing, and transportation costs** from **increased fuel costs**[16](index=16&type=chunk) [Operating and ESG Performance](index=4&type=section&id=Operating%20and%20ESG%20Performance) Operationally, Antero placed 18 new high-performing Marcellus wells online in Q2, with drilling and completion capital expenditures totaling $171 million, and also published its 2024 ESG report, highlighting significant progress in emissions reduction, with a 77% decrease in absolute methane emissions since 2019, and an 89% water recycling rate [Second Quarter 2025 Operating Results](index=4&type=section&id=Second%20Quarter%202025%20Operating%20Results) During the second quarter, Antero placed 18 horizontal Marcellus wells to sales, which featured an average lateral length of 13,500 feet and demonstrated strong initial performance, with a subset averaging 24 MMcfe/d per well after 60 days online - Placed **18 horizontal Marcellus wells** to sales in Q2 with an average lateral length of **13,500 feet**[17](index=17&type=chunk) - Eleven of these wells, online for approximately **60 days**, showed an average rate per well of **24 MMcfe/d**, including **1,200 Bbl/d of liquids**[17](index=17&type=chunk) [Second Quarter 2025 Capital Investment](index=4&type=section&id=Second%20Quarter%202025%20Capital%20Investment) Drilling and completion capital expenditures were $171 million in Q2 2025, with an additional $26 million invested in land leasing, which added approximately 5,000 net acres and 20 incremental drilling locations, effectively replenishing the inventory used during the quarter - Drilling and completion capital expenditures for Q2 2025 were **$171 million**[18](index=18&type=chunk) - The company leased an additional **5,000 net acres** for **$26 million**, adding **20 incremental drilling locations**[18](index=18&type=chunk) [2024 ESG Report Highlights](index=4&type=section&id=2024%20ESG%20Report%20Highlights) Antero's 8th annual ESG report showcased significant environmental achievements, including a 77% reduction in absolute methane emissions and a 79% reduction in methane intensity since 2019, also reporting an 89% water recycling rate and remaining on track for its 2025 Net Zero Scope 1 emission goal - Decreased absolute methane emissions by **77%** and methane intensity by **79%** since 2019[23](index=23&type=chunk) - Recycled **89%** of wastewater during the year[23](index=23&type=chunk) - The company is on track to achieve its **2025 Net Zero Scope 1 GHG emission goal**[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section provides definitions and detailed reconciliations for key non-GAAP metrics used by management to evaluate performance, including Adjusted Net Income, Net Debt, Free Cash Flow, and Adjusted EBITDAX, which adjust for items such as unrealized derivative gains/losses, impairments, and equity-based compensation to provide what management believes is a clearer view of operational trends [Adjusted Net Income](index=4&type=section&id=Adjusted%20Net%20Income) Adjusted Net Income for Q2 2025 was $110.0 million, a substantial improvement from an Adjusted Net Loss of $74.4 million in Q2 2024, with the reconciliation from GAAP Net Income primarily adjusting for non-cash items like unrealized derivative gains/losses, as well as items like equity in earnings of unconsolidated affiliates and equity-based compensation Reconciliation of Net Income to Adjusted Net Income (in thousands) | | Three Months Ended June 30, | | :--- | :--- | | | **2024** | **2025** | | Net income (loss) attributable to Antero | ($79,806) | $156,585 | | Adjustments (Unrealized derivatives, impairments, etc.) | 5,359 | (48,592) | | **Adjusted Net Income (Loss)** | **($74,447)** | **$110,005** | [Net Debt](index=5&type=section&id=Net%20Debt) Net Debt, calculated as total long-term debt less cash, stood at $1.1 billion as of June 30, 2025, representing a significant decrease from $1.49 billion at the end of 2024, reflecting the company's focus on strengthening its balance sheet Net Debt Calculation (in thousands) | | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total long-term debt | $1,489,230 | $1,098,669 | | Less: Cash and cash equivalents | — | — | | **Net Debt** | **$1,489,230** | **$1,098,669** | [Adjusted EBITDAX](index=7&type=section&id=Adjusted%20EBITDAX) Adjusted EBITDAX for Q2 2025 was $379.5 million, marking a 151% increase from $151.4 million in Q2 2024, with the trailing twelve months ending June 30, 2025, Adjusted EBITDAX at approximately $1.45 billion, and the report providing detailed reconciliations from both GAAP Net Income and to Net Cash Provided by Operating Activities Reconciliation of Net Income to Adjusted EBITDAX (in thousands) | | Three Months Ended June 30, | | :--- | :--- | | | **2024** | **2025** | | Net income (loss) including noncontrolling interests | ($74,598) | $166,573 | | Adjustments (Interest, taxes, D&A, etc.) | 241,058 | 229,067 | | Martica related adjustments | (15,058) | (16,176) | | **Adjusted EBITDAX** | **$151,402** | **$379,464** | - For the twelve months ended June 30, 2025, Adjusted EBITDAX was **$1,447,728 thousand**[36](index=36&type=chunk) [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The condensed consolidated financial statements provide a detailed view of Antero's financial health, with the balance sheet as of June 30, 2025, showing total assets of $12.8 billion and a reduced total liability of $5.3 billion, and the income statement reflecting a significant turnaround with a net income of $156.6 million in Q2 2025 compared to a net loss of $79.8 million in Q2 2024, primarily driven by an 84% increase in natural gas sales revenue [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Antero reported total assets of $12.77 billion, a decrease from $13.01 billion at year-end 2024, driven by a reduction in total liabilities to $5.28 billion from $5.79 billion mainly due to lower long-term debt, consequently increasing total equity from $7.22 billion to $7.48 billion Balance Sheet Summary (in thousands) | | December 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | Total current assets | $507,546 | $427,534 | | Property and equipment, net | $9,687,550 | $9,655,880 | | **Total assets** | **$13,010,050** | **$12,766,073** | | Total current liabilities | $1,445,927 | $1,404,729 | | Long-term debt | $1,489,230 | $1,098,669 | | **Total liabilities** | **$5,793,517** | **$5,281,566** | | **Total equity** | **$7,216,533** | **$7,484,507** | [Condensed Consolidated Statements of Operations](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20(Loss)%20(Unaudited)) For Q2 2025, Antero reported total revenues of $1.30 billion and a net income attributable to the company of $156.6 million, or $0.50 per diluted share, marking a significant improvement from a net loss of $79.8 million, or ($0.26) per share, in Q2 2024, largely due to an 84% increase in natural gas sales revenue, which rose to $688.8 million Statement of Operations Summary (in thousands) | | Three Months Ended June 30, | | :--- | :--- | | | **2024** | **2025** | | Total revenue | $978,654 | $1,297,493 | | Total operating expenses | $1,058,740 | $1,092,610 | | Operating income (loss) | ($80,086) | $204,883 | | Net income (loss) attributable to Antero | ($79,806) | $156,585 | | Net income (loss) per common share—diluted | ($0.26) | $0.50 | [Condensed Consolidated Statements of Cash Flows](index=14&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) For the first six months of 2025, net cash from operating activities more than doubled to $950.1 million from $405.1 million in the prior-year period, with net cash used in investing activities stable at $405.4 million, and financing activities resulting in a cash outflow of $544.7 million, a reversal from a small inflow in 2024, driven by $141.7 million in senior note repayments and $85.0 million in common stock repurchases Statement of Cash Flows Summary (in thousands) | | Six Months Ended June 30, | | :--- | :--- | | | **2024** | **2025** | | Net cash provided by operating activities | $405,109 | $950,097 | | Net cash used in investing activities | ($414,125) | ($405,380) | | Net cash provided by (used in) financing activities | $9,016 | ($544,717) | | **Net increase in cash and cash equivalents** | **$—** | **$—** | [Selected Financial and Operating Data](index=15&type=section&id=Selected%20Financial%20and%20Operating%20Data) This section provides a year-over-year comparison of key financial and operational metrics for the second quarter, with key improvements including an 84% increase in natural gas sales revenue and a 151% growth in Adjusted EBITDAX to $379.5 million, and on a per-unit basis, the average realized natural gas price rising 77% to $3.39/Mcf before hedges, while average costs saw modest increases Q2 Year-over-Year Production and Price Comparison | Metric | Q2 2024 | Q2 2025 | % Change | | :--- | :--- | :--- | :--- | | Daily combined production (MMcfe/d) | 3,420 | 3,430 | * | | Avg. Natural Gas Price (per Mcf, pre-hedge) | $1.92 | $3.39 | 77% | | Avg. C3+ NGLs Price (per Bbl, pre-hedge) | $40.27 | $37.92 | (6)% | | Avg. Oil Price (per Bbl, pre-hedge) | $66.66 | $50.15 | (25)% | | **Weighted Avg. Combined Price (per Mcfe, pre-hedge)** | **$2.98** | **$3.85** | **29%** | Q2 Year-over-Year Average Costs (per Mcfe) | Cost Category | Q2 2024 | Q2 2025 | % Change | | :--- | :--- | :--- | :--- | | Lease operating | $0.10 | $0.12 | 20% | | Gathering and compression | $0.71 | $0.76 | 7% | | Processing | $0.87 | $0.91 | 5% | | Transportation | $0.55 | $0.58 | 5% |

[Cautionary Statement Regarding Forward-Looking Statements](index=3&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section outlines the nature of forward-looking statements within the report and the inherent risks that could cause actual results to differ materially - This report contains forward-looking statements concerning strategy, future operations, financial position, and other projections. These statements are identified by words like "may," "expect," "plan," and "project"[7](index=7&type=chunk) - Actual results could differ materially due to various risk factors, including but not limited to: natural gas, NGLs, and oil prices; ability to execute business and financial strategies; production levels and reserves; geopolitical events; hedging results; and regulatory changes[7](index=7&type=chunk)[9](index=9&type=chunk) - The company cautions that reserve estimates are inherently uncertain and depend on data quality, interpretation, and assumptions. Revisions may occur due to drilling results or changes in commodity prices[10](index=10&type=chunk) [PART I—FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the period ended June 30, 2025, reflect a significant turnaround to profitability driven by higher natural gas revenues, substantial increases in operating cash flow, and a stronger balance sheet with reduced debt and increased equity, alongside a correction for a prior period depletion error [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to $12.77 billion from $13.01 billion at year-end 2024, while total liabilities decreased to $5.28 billion from $5.79 billion due to reduced long-term debt, resulting in an increase in total equity from $7.22 billion to $7.48 billion Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | June 30, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $507,546 | $427,534 | | **Property and Equipment, net** | $9,687,550 | $9,655,880 | | **Total Assets** | **$13,010,050** | **$12,766,073** | | **Total Current Liabilities** | $1,445,927 | $1,404,729 | | **Long-Term Debt** | $1,489,230 | $1,098,669 | | **Total Liabilities** | **$5,793,517** | **$5,281,566** | | **Total Stockholders' Equity** | $7,021,650 | $7,305,622 | | **Total Equity** | **$7,216,533** | **$7,484,507** | [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant shift from net losses to net income, with $156.6 million in net income for Q2 2025 (vs. $79.8 million net loss in Q2 2024) and $364.6 million for H1 2025 (vs. $57.1 million net loss in H1 2024), primarily driven by increased natural gas sales revenue Statement of Operations Highlights (in thousands, except per share data) | Metric | Q2 2024 | Q2 2025 | H1 2024 | H1 2025 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $978,654 | $1,297,493 | $2,100,925 | $2,650,200 | | **Operating Income (Loss)** | ($80,086) | $204,883 | ($32,347) | $476,355 | | **Net Income (Loss) Attributable to Antero** | ($79,806) | $156,585 | ($57,076) | $364,556 | | **Diluted EPS** | ($0.26) | $0.50 | ($0.19) | $1.16 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash from operating activities more than doubled to $950.1 million from $405.1 million in the prior-year period due to higher revenues, funding stable investing activities at $405.4 million and a significant $544.7 million net use in financing for debt and share repurchases Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2025 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $405,109 | $950,097 | | **Net Cash Used in Investing Activities** | ($414,125) | ($405,380) | | **Net Cash Provided by (Used in) Financing Activities** | $9,016 | ($544,717) | [Notes to Financial Statements](index=13&type=section&id=Notes%20to%20Financial%20Statements) The notes detail accounting policies and line items, disclosing a new 2025 drilling partnership, significant debt reduction and share repurchases, derivative positions, a legal contingency for royalty lawsuits with a potential $400 million loss, and a corrected prior period depletion error - On December 11, 2024, the company entered into a new drilling partnership for 2025 with an unaffiliated third-party, who will fund a share of development capital for a **15% working interest** in wells spud during 2025[40](index=40&type=chunk) - During H1 2025, the company redeemed the remaining **$97 million** of its **8.375% senior notes** due 2026 and repurchased **$42 million** of its **7.625% senior notes** due 2029[59](index=59&type=chunk)[60](index=60&type=chunk) - The company faces a legal contingency from royalty underpayment lawsuits. Following a West Virginia Supreme Court ruling, the company estimates a reasonably possible loss of up to **$400 million** for leases not at issue in the specific case but potentially impacted by the ruling[125](index=125&type=chunk)[126](index=126&type=chunk) - An immaterial error in the quarterly calculation of depletion expense for prior periods was identified and corrected, decreasing retained earnings as of December 31, 2023, by **$80 million** and revising the previously reported Q2 2024 net loss from **$65.7 million** to **$79.8 million**[144](index=144&type=chunk)[145](index=145&type=chunk)[147](index=147&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant financial improvement in H1 2025 to higher realized natural gas prices, enabling continued capital returns via debt reduction and share repurchases, supported by strong operating cash flow and a revised downward capital budget, while acknowledging minimal hedge positions and ongoing commodity price and inflationary risks [Financing Highlights](index=53&type=section&id=Financing%20Highlights) In H1 2025, the company extended its Unsecured Credit Facility maturity to July 30, 2030, continued debt reduction by redeeming $97 million of 2026 Notes and repurchasing $42 million of 2029 Notes, and bought back $85 million in common stock - The maturity date of the Unsecured Credit Facility was extended by one year to **July 30, 2030**[153](index=153&type=chunk) - In H1 2025, the company redeemed the remaining **$97 million** of its 2026 Notes and repurchased **$42 million** of its 2029 Notes[154](index=154&type=chunk) - Under its share repurchase program, the company bought back approximately **2.5 million shares** for **$85 million** in H1 2025, with **$966 million** of capacity remaining as of June 30, 2025[155](index=155&type=chunk) [Results of Operations](index=56&type=section&id=Results%20of%20Operations) Q2 2025 revenue significantly increased due to a 77% rise in realized natural gas prices, leading to $205 million operating income (vs. $80 million loss in Q2 2024), with similar trends for H1 2025 showing a 72% natural gas price increase driving a shift to $476 million operating income (vs. $32 million loss in H1 2024), despite modest increases in operating costs Production and Realized Prices (Q2 2024 vs Q2 2025) | Metric | Q2 2024 | Q2 2025 | % Change | | :--- | :--- | :--- | :--- | | **Daily Production (MMcfe/d)** | 3,420 | 3,430 | * | | **Avg. Realized Gas Price ($/Mcf)** | $1.92 | $3.39 | 77% | | **Avg. Realized C3+ NGLs Price ($/Bbl)** | $40.27 | $37.92 | (6)% | | **Avg. Realized Oil Price ($/Bbl)** | $66.66 | $50.15 | (25)% | | **Weighted Avg. Price ($/Mcfe)** | $2.98 | $3.85 | 29% | - Natural gas sales revenue for Q2 2025 increased by **$314 million (84%)** year-over-year, primarily driven by higher commodity prices[173](index=173&type=chunk) - Gathering, compression, processing, and transportation expenses increased by **$39 million (6%)** in Q2 2025 compared to Q2 2024, mainly due to higher fuel costs from increased natural gas prices and annual CPI-based rate adjustments[181](index=181&type=chunk)[182](index=182&type=chunk) - A loss contingency of **$11 million** was recorded in Q2 2025, contributing to an increase in contract termination and settlement expenses[189](index=189&type=chunk) [Capital Resources and Liquidity](index=75&type=section&id=Capital%20Resources%20and%20Liquidity) The company's liquidity, primarily from operating cash flow and its credit facility, saw H1 2025 operating cash flow surge to $950 million from $405 million, funding $405 million in investing activities and $545 million net use in financing for debt and share repurchases, leading to a revised $725-$775 million 2025 net capital budget due to efficiencies Cash Flow Summary (Six Months Ended June 30, in thousands) | Cash Flow Activity | 2024 | 2025 | | :--- | :--- | :--- | | Net cash provided by operating activities | $405,109 | $950,097 | | Net cash used in investing activities | ($414,125) | ($405,380) | | Net cash provided by (used in) financing activities | $9,016 | ($544,717) | - The revised 2025 net capital budget is **$725 million to $775 million**, a decrease reflecting drilling and completion efficiencies, with a plan to complete **60 to 65 net horizontal wells**[240](index=240&type=chunk) - Total consolidated capital expenditures for H1 2025 were **$387 million**, including **$328 million** for drilling and completion[241](index=241&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=79&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is commodity price volatility for natural gas, NGLs, and oil, with minimal hedging at 4% of production for H1 2025, alongside interest rate risk on its variable-rate credit facility and credit risk from counterparties, where sensitivity analyses indicate a $0.10/MMBtu gas price decrease would reduce revenue by $74 million and a 1% interest rate increase would raise interest expense by $1 million for H1 2025 - The company's production is largely unhedged, with only **4%** of production hedged for the six months ended June 30, 2025[251](index=251&type=chunk) - A hypothetical **$0.10 decrease per MMBtu** in natural gas prices and a **$1.00 decrease per Bbl** in oil and NGLs prices would have decreased revenues by **$74 million** for the six months ended June 30, 2025[253](index=253&type=chunk) - The company is exposed to interest rate risk on its Credit Facility, where a **1.0% increase** in average interest rates for H1 2025 would have increased interest expense by an estimated **$1 million**[260](index=260&type=chunk) - Credit risk exposure includes **$368 million** in receivables from the sale of production and **$2 million** in derivative assets as of June 30, 2025[256](index=256&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025, with no material changes to internal control over financial reporting during Q2 2025 - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of **June 30, 2025**[261](index=261&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended **June 30, 2025**, that have materially affected, or are reasonably likely to materially affect, internal controls[262](index=262&type=chunk) [PART II—OTHER INFORMATION](index=82&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, with details on environmental matters and significant royalty underpayment lawsuits incorporated by reference from Note 14 of the financial statements - Information regarding legal proceedings is detailed in **Note 14—Contingencies** to the unaudited condensed consolidated financial statements[264](index=264&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes have occurred to the risk factors described in the **2024 Form 10-K**[265](index=265&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=83&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities) During Q2 2025, the company repurchased a total of 2,478,661 shares at an average price of $34.37 per share, encompassing shares under its publicly announced plan and those withheld for employee tax obligations Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Avg. Price Paid | Shares Repurchased Under Plan | Approx. Value Remaining in Plan ($ in thousands) | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 1,826,936 | $33.76 | 1,593,290 | $986,867 | | May 2025 | 486,570 | $35.70 | 415,077 | $972,034 | | June 2025 | 165,155 | $37.29 | 163,771 | $965,935 | | **Total** | **2,478,661** | **$34.37** | **2,172,138** | **N/A** | - The company's board has authorized a share repurchase program for up to **$2.0 billion** of its outstanding common stock[267](index=267&type=chunk) [Other Information](index=83&type=section&id=Item%205%20Other%20Information) Effective July 30, 2025, the company extended the maturity date of its Unsecured Credit Facility by one year from July 30, 2029, to July 30, 2030, utilizing the first of two available one-year extensions - Effective **July 30, 2025**, the maturity date of the Unsecured Credit Facility was extended by one year to **July 30, 2030**[268](index=268&type=chunk) [Exhibits](index=84&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Sections 302 and 906, and financial statements formatted in iXBRL - The filing includes CEO and CFO certifications pursuant to **Sarbanes-Oxley Sections 302 and 906**, and iXBRL data files for the financial statements[270](index=270&type=chunk) [Signatures](index=85&type=section&id=SIGNATURES) - The report is duly authorized and signed on **July 30, 2025**, by **Michael N. Kennedy**, Chief Financial Officer and Senior Vice President – Finance[272](index=272&type=chunk)[273](index=273&type=chunk)

2025 Guidance Update Antero is increasing its full year 2025 production guidance to 3.4 to 3.45 Bcfe/d. The higher than expected volumes are driven by stronger well performance. Antero is decreasing its full year 2025 drilling and completion capital budget to $650 to $675 million. The lower expected spend is a result of continued capital efficiency gains. Antero is updating its full year C3+ NGL realized price guidance to a premium of $1.00 to $2.00 per barrel to reflect second quarter 2025 actuals. Antero ...

Core Viewpoint - The article emphasizes the importance of patience in investing, highlighting that making money requires time and a strategic approach, as illustrated by the Rule of 72 [1] Summary by Relevant Sections - The Rule of 72 is introduced as a method to estimate the time required for an investment to double, which underscores the necessity of patience in the investment process [1]

Core Viewpoint - Antero Resources (AR) is anticipated to report a significant year-over-year increase in earnings driven by higher revenues, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on July 30, with a consensus EPS estimate of $0.48 per share, reflecting a year-over-year increase of +352.6%. Revenues are projected to reach $1.29 billion, up 31.6% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 12.83% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates the prediction of an earnings beat [12]. Historical Performance - Antero Resources has only beaten consensus EPS estimates once in the last four quarters, with a recent surprise of -13.33% when it reported earnings of $0.78 per share against an expectation of $0.90 [13][14]. Investment Considerations - While the company does not appear to be a strong candidate for an earnings beat, investors are advised to consider other factors before making investment decisions [17].

Group 1 - Natural gas prices are currently range bound due to excessive production, with recent production levels reaching 112.5 billion cubic feet (bcf) per day, slightly above past daily highs of 111 bcf [1] - The increase in production has significantly impacted storage levels, indicating a potential oversupply in the market [1]

Core Viewpoint - Antero Resources plans to release its second quarter 2025 earnings on July 30, 2025, after market close, followed by a conference call on July 31, 2025, to discuss financial and operational results [1][2]. Group 1: Earnings Release and Conference Call - The second quarter 2025 earnings release will be issued on July 30, 2025, after the close of trading on the New York Stock Exchange [1]. - A conference call is scheduled for July 31, 2025, at 9:00 am MT to discuss the results, with a Q&A session for analysts following the discussion [2]. - Participants can join the call by dialing specific numbers for U.S. and international callers, and a replay will be available until August 7, 2025 [2]. Group 2: Company Overview - Antero Resources is an independent company focused on natural gas and natural gas liquids, primarily operating in the Appalachian Basin in West Virginia and Ohio [3]. - The company is highly integrated with its affiliate, Antero Midstream, making it one of the most integrated natural gas producers in the U.S. [3].

Industry Overview - The U.S. Energy Information Administration (EIA) reported a natural gas storage build of 55 billion cubic feet (Bcf) for the week ending June 27, bringing total inventories to 2,953 Bcf, which is above expert expectations and continues an 11-week trend of larger-than-average additions [1][8] - Current storage levels are 6.2% above the five-year average but nearly 6% below last year's levels, indicating potential for supply tightening if cooling demand remains strong [6] Demand Dynamics - Total natural gas usage, including LNG exports, is projected to exceed 106 Bcf per day, up from 103.7 Bcf per day the previous week, driven by hot weather and increased demand for cooling [4] - LNG exports are gradually recovering, averaging 15.4 Bcf per day in early July, despite some minor roadblocks due to softer global prices [4] Price Movements - Natural gas prices have been volatile, with U.S. natural gas futures for August delivery dropping 2.26% to $3.44 per million British thermal units (MMBtu) following the EIA's storage report, reflecting concerns over excess supply [5] - Spot prices recently reached a three-year high for June, averaging $3.02/MMBtu, indicating traders are closely monitoring weather patterns for potential demand increases [5] Investment Opportunities - Companies such as Expand Energy (EXE), Coterra Energy (CTRA), and Antero Resources (AR) are highlighted as potential investment opportunities due to their strong fundamentals and positioning in the natural gas market [3][8] - Expand Energy has become the largest natural gas producer in the U.S. and is well-positioned to benefit from increasing demand, with a projected 461.7% year-over-year surge in 2025 earnings per share [9][10] - Coterra Energy, with a significant share of natural gas in its production, has an expected earnings growth rate of 29.1% over the next three to five years, outperforming the industry average [11][12] - Antero Resources, a leading natural gas producer, has a strong production outlook with a projected 1,457.1% year-over-year growth in 2025 earnings per share [13][14]

Core Viewpoint - The energy sector is undergoing significant transformation, with traditional fossil fuels remaining essential while transitioning to lower-carbon energy sources. This shift presents substantial growth opportunities for various energy companies in both traditional and emerging markets [1][2]. Group 1: Traditional Energy Companies - Antero Resources is a leading natural gas producer in the U.S., particularly in the Appalachian region, with the largest and lowest-cost inventory, positioning it well for a projected 116% increase in natural gas demand by the end of the decade [4][5]. - Diamondback Energy has established a significant resource base in the Permian Basin, with nearly 900,000 net acres and 8,400 remaining drilling locations that are economically viable at $50 per barrel of oil, ensuring a long growth runway [9][10]. - Kinetik Holdings focuses on the Permian Basin's natural gas gathering and pipeline systems, with expectations of robust growth driven by rising regional production and a high-yielding dividend exceeding 7% [13][14]. Group 2: Lower-Carbon Energy Companies - Bloom Energy provides resilient power solutions through its distributed generation platform, converting natural gas, biogas, or hydrogen into electricity, and is well-positioned to meet growing demand from AI and industrial electrification [6][7]. - Clearway Energy operates a portfolio of clean power assets and benefits from long-term power purchase agreements, allowing for predictable cash flow and a current dividend yield of 5.5% [8]. - Enphase Energy is the leading supplier of microinverter-based solar-plus storage systems, targeting a growing market opportunity estimated at $25.4 billion [11][12]. Group 3: Innovative Energy Technologies - NextDecade is constructing the Rio Grande LNG export facility, with Phase 1 expected to start service in 2027, and is exploring carbon-capture opportunities [15]. - NuScale Power is developing small modular reactor technology, aiming to meet the increasing power needs of data centers, with a significant market opportunity [16]. - QuantumScape is innovating in energy storage with solid-state lithium metal batteries, projecting demand to exceed 1 terawatt-hour per year by 2040, representing a substantial market opportunity [18].