Core Points - Antero Resources Corporation and Antero Midstream Corporation announced the transition of Co-Founder Paul M. Rady to Chairman Emeritus, effective immediately [1] - The Boards of Directors praised Mr. Rady for his leadership, commitment to the oil and gas industry, and philanthropic efforts [2] - Mr. Rady has significantly contributed to shareholder value, with the combined enterprise value of Antero companies at approximately $24.0 billion [3] Company Overview - Antero Resources holds approximately 526,000 net acres in the Appalachian Basin, with estimated proved reserves of 17.9 trillion cubic feet equivalent (Tcfe) at year-end 2024 [4] - The company produced over 3.4 billion cubic feet equivalent per day (Bcfe/d) during the three months ended June 30, 2025, making it the fifth largest producer of natural gas and natural gas liquids (NGLs) in the U.S. [4] - Antero Midstream, formed in 2012, has developed a comprehensive midstream energy infrastructure, including 413 miles of low-pressure gathering pipeline and 295 miles of high-pressure gathering pipeline [5] Leadership Transition - Mr. Rady expressed gratitude towards employees and shareholders, emphasizing confidence in the future leadership under Mike Kennedy [6] - He highlighted the companies' strong positioning in the Appalachian Basin and his intention to focus on family, health, and philanthropy in his new role [6]

Core Viewpoint - Antero Resources Corporation and Antero Midstream Corporation have appointed Michael N. Kennedy as the new Chief Executive Officer and President, succeeding Paul M. Rady, who transitions to Chairman Emeritus [1][3]. Company Leadership Changes - Michael N. Kennedy has been with Antero since 2013, serving as Chief Financial Officer since 2021 and has extensive experience in the oil and gas industry [2][3]. - Paul M. Rady will now serve as Chairman Emeritus after transitioning from his previous roles [1][3]. - Benjamin A. Hardesty will take over as Chairman of the Board for Antero Resources, while David H. Keyte will serve as Chairman for Antero Midstream [3]. Board and Management Team Adjustments - Yvette K. Schultz will join the Board of Directors of Antero Midstream, having served as General Counsel since 2017 [4][5]. - Brendan E. Krueger will be named Chief Financial Officer and SVP—Finance of Antero Resources, while also serving as SVP—Finance of Antero Midstream [6][8]. - Justin J. Agnew will become Chief Financial Officer of Antero Midstream, having held various roles since 2014 [7][8]. Company Overview - Antero Resources is focused on the acquisition, development, and production of unconventional natural gas and natural gas liquids in the Appalachian Basin [8]. - Antero Midstream operates and develops midstream assets, including gathering, compression, processing, and fractionation, primarily servicing Antero Resources' properties [8].

Financial Data and Key Metrics Changes - Antero Resources increased its production guidance while reducing capital expenditures (CapEx) for the second consecutive year, with maintenance production targets rising 5% from under 3.3 Bcf equivalent per day to over 3.4 Bcf equivalent per day, while maintenance capital requirements declined by 26% from $900 million to $663 million [5][6] - The company reported $260 million of free cash flow in the second quarter, with nearly $200 million used to reduce debt, resulting in a total debt reduction of 30% or $400 million year to date [20][21] Business Line Data and Key Metrics Changes - Antero's realized C3 plus price averaged $37.92 per barrel in the second quarter, with expectations for attractive premiums to the NGL benchmark in the second half of the year [8][9] - C3 plus realizations improved year over year as a percentage of WTI, averaging 59% of WTI in 2025 compared to 50% in 2024 [9][10] Market Data and Key Metrics Changes - The company anticipates that new Gulf Coast export capacity will lead to higher exports and a rebalancing of inventories, further strengthening Mont Belvieu NGL prices [12] - Overall U.S. LPG exports averaged over 1.8 million barrels per day, which is 6% higher than the same period last year [12] Company Strategy and Development Direction - Antero plans to continue targeting maintenance capital at future growth opportunities tied to regional demand increases, with a focus on maintaining a low absolute debt position to provide flexibility [22][23] - The company is uniquely positioned to participate in both LNG export growth and expected regional power demand growth due to its extensive resource base and integrated midstream assets [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive demand trends for natural gas, with expectations for significant demand growth driven by new LNG facilities and regional power demand [14][17] - The company does not expect to pay any material cash taxes for the next three years due to tax attributes and recent tax changes [35][36] Other Important Information - Antero has hedged approximately 20% of its expected natural gas volumes through 2026 with costless collars, lowering its 2026 free cash flow breakeven to $1.75 per Mcf [6][7] - The company has a strong focus on maintaining capital efficiency, with the lowest maintenance capital per Mcfe among its peers at $0.53 per Mcfe [5][6] Q&A Session Summary Question: Implications of Gulf Coast LPG export capacity on pricing - Management expects modest dock premiums but overall higher benchmark prices due to increased export capacity [26] Question: Mix of buybacks and debt reduction - The company plans to be opportunistic, balancing debt reduction and share buybacks based on market conditions [28][29] Question: Maintenance CapEx outlook for 2026 - Management indicated the ability to continue reducing maintenance CapEx while increasing production [32] Question: Tax impact on cash flow - The company expects a similar uplift from recent tax changes, allowing for better treatment of interest expenses and bonus depreciation [35][36] Question: Future of in-basin demand projects - Management is optimistic about the potential for new in-basin demand projects but will only pursue those that are accretive to overall pricing [78][79] Question: Shareholder returns and potential dividends - The company is focused on debt reduction and share buybacks, with no immediate plans for dividends but open to future considerations based on market conditions [85][86]

Production & Capital Efficiency - Antero Resources (AR) anticipates increased production and reduced capital expenditure (Capex) due to operating efficiencies and strong well performance[7] - AR's 2025 estimated D&C capital is $663 million, a decrease from the 2023 guidance of $900 million[8] - AR's maintenance capital efficiency is projected at $0.65, lower than the peer average of $0.73[8] Hedging Strategy - Approximately 20% of AR's 2026 estimated natural gas production is hedged using wide two-way collars[10] - The hedge strategy for 2026 includes a floor of $3.14/MMBtu and a ceiling of $6.31/MMBtu[10] NGL Pricing & Exports - AR anticipates higher C3+ NGL premiums to Mont Belvieu in the second half of 2025[12] - New capacity additions are expected to increase U S Gulf Coast LPG exports in the second half of 2025[14] Natural Gas Pricing & Demand - AR has the highest exposure to NYMEX-linked pricing, leading to better natural gas realized pricing[22] - Approximately 8 Bcf/d of new LNG capacity is expected to be added from 2025 to 2027[18] - Regional natural gas demand is increasing due to power demand and data center projects, with a total of 4,980 MMcf/d under construction, FID, or waiting on FID[20] Financial Position - AR has reduced its debt by approximately $2.7 billion since 2019[28] - AR's debt maturity schedule shows no near-term maturities, with credit facility maturity extended to 2030[28] - AR's Adjusted EBITDAX for the three months ended June 30, 2025, was $379.464 million, compared to $151.402 million for the same period in 2024[37]

Core Insights - Antero Resources Corporation (AR) reported second-quarter 2025 adjusted earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.48, but improving from a loss of $0.19 per share in the same quarter last year [1][9] - Total quarterly revenues reached $1,297 million, exceeding the Zacks Consensus Estimate of $1,255 million and increasing from $979 million year-over-year [1][9] Production Overview - Total production for the second quarter was 312 billion cubic feet equivalent (Bcfe), slightly up from 311 Bcfe a year ago but below the estimate of 315 Bcfe [3] - Natural gas production, which accounted for 65% of total production, was 203 Bcf, a 4% increase from 196 Bcf year-over-year, but slightly below the estimate of 204 Bcf [3] - Oil production decreased by 29% to 672 thousand barrels (MBbls) from 952 MBbls in the prior year, also falling short of the estimate of 927 MBbls [4] - C2 Ethane production was 6,924 MBbls, down 11% from 7,811 MBbls year-over-year, and below the estimate of 7,042 MBbls [4] - C3+ NGLs production increased by 1% to 10,608 MBbls from 10,514 MBbls reported a year ago, slightly below the estimate of 10,614 MBbls [5] Price Realization - Weighted natural-gas-equivalent price realization was $3.85 per thousand cubic feet equivalent (Mcfe), higher than $2.98 a year ago but below the estimate of $4.30 [6] - Realized prices for natural gas rose 77% to $3.39 per Mcf from $1.92 year-over-year, exceeding the estimate of $3.38 per Mcf [6] - Oil price realization was $50.15 per barrel (Bbl), down from $66.66 a year ago and below the estimate of $51.03 per Bbl [7] - Realized price for C3+ NGLs decreased to $37.92 per Bbl from $40.27 year-over-year, also below the estimate of $38.33 per Bbl [7] - Realized price for C2 Ethane increased to $11.34 per Bbl from $8.42 year-over-year, surpassing the estimate of $8.07 per Bbl [7] Operating Expenses - Total operating expenses rose to $1,093 million from $1,059 million in the prior year, slightly above the estimate of $1,064.5 million [8] - Average lease operating costs increased by 20% to $0.12 per Mcfe from $0.10 year-over-year [10] - Gathering and compression costs were $0.76 per Mcfe, up 7% from the previous year [10] - Transportation expenses rose 5% year-over-year to $0.58 per Mcfe, while processing costs also increased by 5% to $0.91 per Mcfe [10] Capital Expenditures & Financials - Antero Resources spent $171 million on drilling and completion operations in the second quarter [11] - As of June 30, 2025, the company had no cash and cash equivalents and reported long-term debt of $1.1 billion [11] Outlook - Antero Resources raised its production guidance for the year to 3.4-3.45 Bcfe/d from the previous range of 3.35-3.45 Bcfe/d [12] - The full-year drilling and completion capital budget was reduced to $650-$675 million [12]

Group 1 - Antero Resources has posted a premium to its natural gas benchmark, likely achieving one of the best prices in the industry for producers in the lower 48 states [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis of oil and gas companies includes a breakdown of balance sheets, competitive positions, and development prospects [1]

Core Insights - Antero Resources reported $1.3 billion in revenue for Q2 2025, a 32.6% year-over-year increase, with an EPS of $0.35 compared to -$0.19 a year ago, indicating significant improvement in financial performance [1] - The revenue exceeded the Zacks Consensus Estimate of $1.26 billion by 3.38%, while the EPS fell short of the consensus estimate of $0.48 by 27.08% [1] Financial Performance Metrics - Average Net Production per day for Natural Gas was 2,230 million cubic feet, slightly above the estimated 2,210.91 million cubic feet [4] - Average Net Production per day for Oil was 7,385 BBL/D, significantly below the estimated 10,082.96 BBL/D [4] - Combined Natural Gas Equivalent production averaged 3,430 MMcfe/D, close to the estimated 3,442.80 MMcfe/D [4] - Natural gas production was reported at 203 Bcf, exceeding the estimated 201.69 Bcf [4] - Average realized price for Oil was $50.15, lower than the estimated $51.68 [4] - Average realized price for Natural Gas was $3.36 per thousand cubic feet, slightly below the estimated $3.42 [4] - Oil production was reported at 672 MBBL, significantly lower than the estimated 920.37 MBBL [4] - Combined production was 312 Bcfe, slightly below the estimated 313.63 Bcfe [4] Revenue Breakdown - Natural gas sales revenue was $688.75 million, surpassing the estimated $679.51 million, reflecting an 83.9% year-over-year increase [4] - Natural gas liquids sales revenue was $480.76 million, slightly below the estimated $485.49 million, showing a 1.7% decrease year-over-year [4] - Oil sales revenue was $33.7 million, significantly below the estimated $46.05 million, representing a 46.9% year-over-year decline [4] - Marketing revenue was reported at $33.74 million, also below the estimated $57.43 million [4] Stock Performance - Antero Resources' shares have returned -10.4% over the past month, contrasting with the Zacks S&P 500 composite's +3.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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)