Financial Data and Key Metrics Changes - In 2024, Antero Resources Corporation achieved a full drilling and completion capital of $620 million, which is $55 million or 8% below initial guidance and nearly $300 million below 2023's CapEx of $909 million [7] - Production averaged over 3.4 Bcf equivalent per day, which is 2% above initial guidance [8] - The company generated positive free cash flow of $73 million in 2024 despite being unhedged at a $2.27 natural gas price [28] Business Line Data and Key Metrics Changes - Drilling efficiency improved, reducing the average time to drill a well to just ten days in 2024, a nearly 30% improvement compared to 2022 [9] - Completion stages per day averaged 12.2 in 2024, with a record of 13.2 in Q4 2024, representing a 53% increase compared to 2022 [10] - The company expects production to be 50 million cubic feet per day higher than prior targets for 2025 [29] Market Data and Key Metrics Changes - Antero realized a $1.41 per barrel premium over Mont Belvieu in 2024, with Q4 2024 averaging $3.09 per barrel [12] - U.S. propane exports averaged 1.8 million barrels per day year-to-date in 2025, a 9% increase compared to the same period last year [16] - Natural gas storage is currently 111 Bcf below the five-year average, indicating a tightening inventory [21] Company Strategy and Development Direction - The company plans to use free cash flow to first pay down its credit facility and senior notes, then return to a 50-50 debt reduction and capital return strategy via share buybacks [33] - Antero is focused on maintaining a low-cost structure and maximizing exposure to rising prices through its firm transportation agreements [34] - The company is strategically positioned to benefit from increasing LNG demand and expects significant calls on natural gas over the next twelve months [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving higher prices in 2025 and 2026 due to supportive fundamentals and low rig counts [22] - The company anticipates a substantial year-over-year increase in free cash flow for 2025, projecting over $1.6 billion based on current strip pricing [32] - Management highlighted the importance of maintaining flexibility in capital structure and the potential for share buybacks once debt is reduced [80] Other Important Information - Antero's marketing strategy has enhanced pricing by selling more products to key distributors and end users [15] - The company has locked in almost all domestic propane sales and a significant portion of export sales at attractive premiums [15] - The anticipated startup of new LNG facilities is expected to significantly increase demand for natural gas [25] Q&A Session Summary Question: Can you discuss the gas macro situation and Antero's ability to respond to increased demand? - Management indicated that the ability to grow production is limited to local basins and emphasized their strategy of not selling local gas [39] Question: Can you provide details on the drilling partnership mentioned in the 10-K? - Management confirmed the continuation of a drilling JV that allows for operational efficiencies and a consistent program [42] Question: What is the current status of your well completions and production guidance? - Management confirmed that they brought on sixteen wells in January and have one duct pad with seven wells expected in Q3 [48] Question: How do you view your inventory and midstream runway? - Management stated that they have a strong inventory and are well-positioned for long-term liquids drilling [58] Question: What are your thoughts on return of capital and share buybacks? - Management plans to focus on debt repayment first, followed by a balanced approach to share buybacks [80]

Core Viewpoint - Antero Resources has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Antero Resources is projected to earn $3.11 per share for the fiscal year ending December 2025, reflecting a substantial year-over-year increase of 1381% [8]. - Over the past three months, the Zacks Consensus Estimate for Antero Resources has risen by 46.3%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Antero Resources to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [10].

Antero Resources (AR) Q4 2024 Earnings Call February 13, 2025 11:00 AM ET Company Participants Brendan Krueger - CFO, VP of Finance & TreasurerPaul Rady - President, Chairman & CEODavid Cannelongo - Senior Vice President of Liquids Marketing & TransportationJustin Fowler - Senior Vice President of Gas Marketing and TransportationMichael Kennedy - SVP, Finance & CFOArun Jayaram - Vice PresidentJohn Freeman - Managing DirectorCarlos Escalante - Senior AssociateNeil Mehta - Head of Americas Natural Resources E ...

February 13th, 2025 Antero Resources (NYSE: AR) Fourth Quarter 2024 Earnings Call Presentation Legal Disclaimer This presentation includes "forward-looking statements." Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under AR's control. All statements, except for statements of historical fact, made in this presentation regarding activities, events or developments AR expects, believes or anticipates will or may occur in the future, such as those regar ...

Core Viewpoint - Antero Resources Corporation reported strong adjusted earnings for Q4 2024, exceeding estimates, but total revenues fell short of expectations and decreased year-over-year Financial Performance - Adjusted earnings for Q4 2024 were 48 cents per share, surpassing the Zacks Consensus Estimate of 26 cents and up from 22 cents a year ago [1] - Total quarterly revenues were $1,169 million, missing the Zacks Consensus Estimate of $1,173 million and down from $1,194 million year-over-year [1] Production Overview - Total production in Q4 was 316 billion cubic feet equivalent (Bcfe), slightly higher than 315 Bcfe a year ago and above the estimate of 310 Bcfe [3] - Natural gas production was 196 Bcf, down 7% from 210 Bcf year-over-year and below the estimate of 201 Bcf [3] - Oil production amounted to 850 thousand barrels (MBbls), a decrease of 26% from 1,154 MBbls a year ago and below the estimate of 1,083 MBbls [4] - C2 Ethane production increased by 58% to 8,518 MBbls from 5,406 MBbls year-over-year, exceeding the estimate of 6,571 MBbls [4] - C3+ NGLs production was 10,563 MBbls, down 3% from 10,918 MBbls a year ago but higher than the estimate of 10,534 MBbls [5] Price Realizations - Weighted natural-gas-equivalent price realization was $3.64 per thousand cubic feet equivalent (Mcfe), up from $3.52 year-over-year and above the estimate of $3.47 [6] - Realized natural gas prices increased 2% to $2.77 per Mcf from $2.72 a year ago, exceeding the estimate of $2.62 [6] - Oil price realization was $57.80 per barrel (Bbl), down from $64.77 year-over-year and below the estimate of $59.54 [7] - Realized price for C3+ NGLs rose to $44.29 per Bbl from $37.72 a year ago, above the estimate of $41.41 [7] - Realized price for C2 Ethane increased to $10.31 per Bbl from $9.13 year-over-year, exceeding the estimate of $10.23 [7] Operating Expenses - Total operating expenses increased to $1,110 million from $1,055 million year-over-year, above the estimate of $1,071 million [8] - Average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents a year ago [8] - Gathering and compression costs were 71 cents per Mcfe, 3% higher than the prior year [8] - Transportation expenses declined 3% year-over-year to 60 cents per Mcfe, while processing costs increased 8% to 85 cents per Mcfe [9] Capital Expenditures and Financials - In Q4, Antero Resources spent $120 million on drilling and completion operations [10] - As of December 31, 2024, the company had no cash and cash equivalents and a long-term debt of $1.49 billion [10] Guidance - For 2025, Antero Resources expects its drilling and completion capital budget to be between $650 million and $700 million [11] - The company estimates production to be in the range of 3.35-3.45 Bcfe per day, driven by higher liquid volumes [11]

Group 1 - The article discusses the analysis of oil and gas companies, specifically highlighting Antero Resources and its competitive position in the market [1][2] - Cold weather patterns are beneficial for Antero Resources as they reduce supply, potentially increasing prices [2] - The oil and gas industry is characterized as a cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis includes a comprehensive breakdown of companies' balance sheets, competitive positions, and development prospects [1] - The service provided offers insights that are not available on free platforms, indicating a value-added component for subscribers [1]

Core Insights - Antero Resources reported a revenue of $1.17 billion for the quarter ended December 2024, reflecting a 2.1% decrease year-over-year, while EPS increased to $0.58 from $0.22 in the previous year [1] - The revenue was slightly below the Zacks Consensus Estimate by 0.33%, but the EPS exceeded expectations by 87.10% compared to the consensus estimate of $0.31 [1] Financial Performance - Average Net Production per day for Oil was 9,239 BBL/D, lower than the analyst estimate of 9,964.05 BBL/D [4] - Average Net Production per day for Natural Gas was 2,131 million cubic feet, slightly below the estimate of 2,155.09 million cubic feet [4] - Average realized prices for Natural Gas were $2.76 per thousand cubic feet, slightly above the estimated $2.74 [4] - Average realized prices for Oil were $57.69 per barrel, below the estimated $58.12 [4] - Total production of Oil was 850 MBBL, under the estimate of 915.95 MBBL [4] - Total production of Natural Gas was 196 Bcf, slightly below the estimate of 197.65 Bcf [4] Revenue Breakdown - Natural Gas sales amounted to $543.79 million, down 4.7% year-over-year and below the estimate of $546.87 million [4] - Oil sales were reported at $49.13 million, a significant decline of 34.3% year-over-year, also below the estimate of $52.92 million [4] - Natural Gas Liquids sales increased to $555.72 million, representing a 20.5% year-over-year growth, exceeding the estimate of $532.16 million [4] - Marketing revenue was $33.97 million, down 50% year-over-year and below the estimate of $46.49 million [4] Stock Performance - Antero Resources shares returned +3.7% over the past month, compared to the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Antero Resources reported quarterly earnings of $0.58 per share, significantly exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.22 per share a year ago, indicating a strong performance in the oil and natural gas sector [1][2]. Financial Performance - The company achieved revenues of $1.17 billion for the quarter ended December 2024, which was slightly below the Zacks Consensus Estimate by 0.33%, and a decrease from $1.19 billion in the same quarter last year [2]. - Antero Resources has surpassed consensus EPS estimates two times over the last four quarters, demonstrating a positive trend in earnings performance [2]. Stock Performance - Antero Resources shares have increased approximately 14.2% since the beginning of the year, outperforming the S&P 500's gain of 3.2%, indicating strong market performance [3]. - The stock currently holds a Zacks Rank 2 (Buy), suggesting expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.68, with projected revenues of $1.3 billion, and for the current fiscal year, the EPS estimate is $3.11 on revenues of $5.31 billion [7]. - The trend of estimate revisions for Antero Resources has been favorable ahead of the earnings release, which could influence future stock movements [6][5]. Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the top 19% of over 250 Zacks industries, suggesting a favorable environment for companies within this sector [8].

Production and Reserves - Antero Resources reported net production averaging 3.4 Bcfe/d in Q4 2024, with natural gas production at 2.1 Bcf/d (7% decrease) and liquids production at 217 MBbl/d (14% increase) compared to the previous year[5]. - Estimated proved reserves at year-end 2024 were 17.9 Tcfe, with 77% classified as proved developed reserves, totaling 13.7 Tcfe[18][19]. - Antero placed 5 horizontal Marcellus wells to sales in Q4 2024, with an average rate per well of 34 MMcfe/d, including 1,650 Bbl/d of liquids per well[23]. - The company added approximately 4,200 net acres in Q4 2024, representing 15 incremental drilling locations at an average cost of $950,000 per location[17]. - Antero's estimated future development cost for 4.2 Tcfe of proved undeveloped reserves is $0.44 per Mcfe, requiring an estimated $1.8 billion of future development capital over the next five years[20]. Financial Performance - The company achieved Free Cash Flow of $159 million in Q4 2024, with net income of $150 million and Adjusted Net Income of $181 million[15]. - Adjusted Net Income for Q4 2024 was $149,649, a 83% increase from $81,839 in Q4 2023[26]. - Adjusted EBITDAX for Q4 2024 was $331,936, compared to $322,446 in Q4 2023, reflecting a slight increase of 3%[38]. - Free Cash Flow for the year ended December 31, 2024, was $849,288, down from $994,721 in 2023[38]. - Net income attributable to Antero Resources Corporation for the year ended December 31, 2024, was $57,226,000, down from $198,404,000 in 2023, a decrease of 71.2%[49]. - Operating income for the year ended December 31, 2024, was $460,000, a significant drop from $396,247,000 in 2023[49]. - The company reported a net income per common share—diluted of $0.48 for the three months ended December 31, 2024, compared to $0.26 for the same period in 2023[49]. - The company reported a net income attributable to noncontrolling interests of $9,164 for Q4 2024, down from $21,169 in Q4 2023[26]. - Net income for the year ended December 31, 2023, was $297,329, a decrease of 85.1% compared to $1,998,837 in 2022[52]. Revenue and Sales - Total revenue for the year ended December 31, 2024, was $4,681,972,000, a decrease of 6.7% from $4,325,596,000 in 2023[49]. - Natural gas sales decreased to $1,818,297,000 in 2024 from $2,192,349,000 in 2023, representing a decline of 17.0%[49]. - Natural gas liquids sales increased to $2,066,975,000 in 2024 from $1,836,950,000 in 2023, reflecting a growth of 12.5%[49]. - Total operating expenses for the three months ended December 31, 2023, were $1,055,815, an increase of 5% from $1,110,972 in 2024[54]. Costs and Expenditures - Antero's capital expenditures for drilling and completion in Q4 2024 were $120 million, with an additional $22 million invested in land[17]. - Drilling and completion costs on a cash basis for Q4 2024 were $105,552, significantly lower than $204,494 in Q4 2023[39]. - The company anticipates future capital spending plans to improve capital efficiency and reduce costs[42]. Debt and Equity - Net Debt decreased from $1,537,596 in 2023 to $1,489,230 in 2024, indicating improved financial position[28]. - The total long-term debt as of December 31, 2024, was $1,489,230, a decrease from $1,537,596 in 2023[28]. - Total liabilities decreased to $5,793,517,000 in 2024 from $6,383,025,000 in 2023, a reduction of 9.2%[47]. - Stockholders' equity increased to $7,216,533,000 in 2024 from $7,134,214,000 in 2023, an increase of 1.2%[47]. Market Conditions and Pricing - The company anticipates a realized natural gas price premium of $0.10 to $0.20 per Mcf to NYMEX and a C3+ NGL price premium of $1.50 to $2.50 per barrel to Mont Belvieu in 2025[9]. - The average realized natural gas price before hedges in Q4 2024 was $2.77 per Mcf, reflecting a $0.02 discount to the benchmark index price[13]. - Average realized price for natural gas (per Mcf) for the three months ended December 31, 2023, was $2.68, up 3% from $2.76 in 2024[55]. Impairments and Adjustments - The company experienced a significant increase in impairment of property and equipment, rising to $28,475,000 in Q4 2024 from $6,556,000 in Q4 2023[49]. - The company reported a significant increase in impairment of property and equipment, rising 334% to $28,475 for the three months ended December 31, 2024[54]. Strategic Focus - The company is focused on expanding its operations in the Appalachian Basin, enhancing its position as a leading natural gas producer in the U.S.[41].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 1615 Wynkoop Street, Denver, Colorado (Address of principal executive offices) 80-0162034 (IRS Employer Identification No.) 80202 (Zip Code) (303) 357-7310 (Registrant's telephone number, ...