Antero Resources(US:AR)2025-10-29 20:17Financial Performance - For the three months ended September 30, 2025, total revenue was $1,055,920,000, compared to $1,008,760,000 for the same period in 2024[171]. - Total revenue for the three months ended September 30, 2025, was $1,213,994, with significant contributions from natural gas and NGLs sales[1]. - Operating income for the three months ended September 30, 2025, was a loss of $24,972,000, compared to a loss of $9,988,000 in Q3 2024[171]. - Operating income for the period was $118,117, reflecting a combination of revenue and operating expenses[1]. - Natural gas sales revenue increased by $205 million, or 48%, from $426 million in Q3 2024 to $631 million in Q3 2025, driven by higher commodity prices[177]. - NGLs sales revenue decreased by $34 million, or 7%, from $504 million in Q3 2024 to $470 million in Q3 2025, primarily due to lower C3+ NGLs prices and production volumes[178]. - Oil sales revenue decreased by $22 million, or 41%, from $53 million in Q3 2024 to $31 million in Q3 2025, attributed to lower production volumes and commodity prices[181]. - Total revenue for the nine months ended September 30, 2025, was $3.86 billion, compared to $3.77 billion for the same period in 2024, reflecting a slight increase[216]. - Natural gas sales revenue increased from $1.3 billion for the nine months ended September 30, 2024, to $2.1 billion for the same period in 2025, a 65% increase[216]. - NGLs sales revenue remained consistent at $1.5 billion for both the nine months ended September 30, 2024, and 2025, with a slight increase of $21 million due to higher commodity prices[217]. - Oil sales revenue decreased from $181 million for the nine months ended September 30, 2024, to $115 million for the same period in 2025, a 36% decrease[219]. Costs and Expenses - Average costs for lease operating expenses increased from $0.09 per Mcfe in Q3 2024 to $0.10 per Mcfe in Q3 2025, a rise of 11%[185]. - Gathering, compression, processing, and transportation expenses rose by $26 million, or 4%, from $685 million in Q3 2024 to $711 million in Q3 2025[186]. - Total operating expenses increased from $3,021 million in Q3 2024 to $3,214 million in Q3 2025[208]. - General and administrative expenses increased from $39 million in Q3 2024 to $41 million in Q3 2025, an increase of $2 million or 7%[190]. - Marketing expenses decreased from $62 million in Q3 2024 to $51 million in Q3 2025, a decrease of $11 million or 18%[199]. - Production and ad valorem tax expenses decreased from $47 million in Q3 2024 to $29 million in Q3 2025, a reduction of $18 million or 39%[189]. - Depletion, depreciation, and amortization expense remained consistent at $189 million for both Q3 2024 and Q3 2025[192]. - Impairment of oil and gas properties was $13 million in Q3 2024 and $12 million in Q3 2025, indicating stability in impairment costs[193]. - Lease operating expenses increased from $88 million to $104 million, or $0.09 to $0.11 per Mcfe, primarily due to higher oilfield service costs[223]. - Gathering, compression, processing, and transportation expenses increased from $2.0 billion to $2.1 billion, a 4% increase[224]. - General and administrative expenses (excluding equity-based compensation) rose from $121 million to $130 million, an 8% increase[227]. - Depletion, depreciation and amortization (DD&A) expense remained consistent at $568 million for the nine months ended September 30, 2024, and $563 million for the same period in 2025[229]. - Impairment of oil and gas properties increased from $19 million in 2024 to $24 million in 2025, primarily due to higher impairments of expiring leases[230]. - Contract termination and other operating expenses rose from $4 million in 2024 to $25 million in 2025, an increase of $21 million due to loss contingencies[231]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased from $571 million in 2024 to $1.26 billion in 2025, primarily due to higher natural gas revenues[246]. - Net cash used in investing activities increased from $588 million in 2024 to $854 million in 2025, mainly due to asset acquisitions of $241 million[248]. - Total consolidated capital expenditures for the nine months ended September 30, 2025, were $604 million, including $500 million for drilling and completion[252]. - The revised net capital budget for 2025 is $775 million to $825 million, with $650 million to $675 million allocated for drilling and completion[250]. Debt and Interest - The company redeemed $97 million of its 2026 Notes at a redemption price of 102.094% and repurchased $42 million of its 2029 Notes at approximately 103%[158]. - Interest expense decreased from $28 million in Q3 2024 to $18 million in Q3 2025, a decrease of $10 million or 36%[202]. - Interest expense decreased from $91 million in 2024 to $62 million in 2025, a reduction of $29 million or 32%[239]. - The average annualized interest rate incurred on the Credit Facility for borrowings during the nine months ended September 30, 2025, was 6.0%[272]. - A 1.0% increase in average interest rates would have resulted in an estimated $2 million increase in interest expense[272]. Market Conditions - Average benchmark natural gas prices increased from $2.16/Mcf in Q3 2024 to $3.07/Mcf in Q3 2025, while oil prices decreased from $75.09/Bbl to $64.93/Bbl in the same period[162]. - The Federal Reserve increased the federal funds interest rate by 5.25% between 2022 and 2023 to manage inflation, which began to approach the target of 2% in late 2024[167]. - The company experienced increased operating and capital costs due to inflationary pressures and supply chain disruptions[169]. - A $0.10 decrease per MMBtu in natural gas prices would decrease revenues by $112 million, while a $1.00 decrease per Bbl in oil and NGLs prices would also have a significant impact[265]. Hedging and Derivatives - The company hedged 4% of its production through commodity derivatives for the nine months ended September 30, 2025[165]. - The estimated fair value of the company's commodity derivative contracts was a net liability of $7 million as of September 30, 2025[165]. - The company hedges its production using various financial derivative instruments, including commodity price swaps and collars[264]. - As of September 30, 2025, the company had commodity hedges in place with seven different counterparties[271]. - The company does not require credit support or collateral from its counterparties under derivative contracts as of September 30, 2025[271]. - The company had derivative assets of $5 million with bank counterparties under its Unsecured Credit Facility as of September 30, 2025[271].