Antero Resources(AR) - 2025 Q3 - Quarterly Results

Production and Operations - Net production averaged 3.4 Bcfe/d, including 2.2 Bcf/d of natural gas and 206 MBbl/d of liquids[4] - Fourth quarter 2025 production is expected to increase to a range of 3.5 to 3.525 Bcfe/d, with full year 2025 production now expected at the high end of the 3.4 to 3.45 Bcfe/d range[11] - The company set a record for the longest lateral drilled in its history at over 22,000 feet and averaged 14.5 completion stages per day[4] - Achieved a record of 22,000 lateral feet drilled, the longest in company history[21] - Averaged 14.5 completion stages per day, the highest for a quarter[21] - Established a record for continuous pumping hours at 349 hours[21] - Natural gas production increased by 1% from 200 Bcf in Q3 2024 to 202 Bcf in Q3 2025[51] Financial Performance - Net income was $76 million, with Adjusted Net Income of $48 million, and Adjusted EBITDAX of $318 million, reflecting increases of 70% and 87% compared to the prior year period[4] - Total revenue for the three months ended September 30, 2025, was $1,213,994, an increase of 14.9% compared to $1,055,920 for the same period in 2024[46] - Natural gas sales increased to $630,887 for the three months ended September 30, 2025, up from $425,802 in 2024, representing a growth of 48.2%[46] - Net income attributable to Antero Resources Corporation for the three months ended September 30, 2025, was $76,179, compared to a net loss of $35,347 in the same period of 2024[46] - Operating income for the three months ended September 30, 2025, was $118,117, a significant recovery from an operating loss of $24,972 in 2024[46] - Cash flows provided by operating activities for the nine months ended September 30, 2025, were $1,260,187, compared to $571,286 for the same period in 2024, indicating a substantial increase[48] - Total revenue increased by 15% from $1,055,920 in Q3 2024 to $1,213,994 in Q3 2025, with natural gas sales rising by 48% to $630,887[50] - Adjusted EBITDAX grew by 70% from $186,900 in Q3 2024 to $318,240 in Q3 2025[50] Cash Flow and Debt Management - Free Cash Flow for the third quarter was $91 million, contributing to debt reduction of $182 million and stock repurchases of $163 million during 2025[4][5] - Net Debt decreased from $1,489,230,000 in December 2024 to $1,307,220,000 by September 2025[25] - Total long-term debt decreased from $1,489,230,000 in December 2024 to $1,307,220,000 in September 2025[25] - The company experienced a significant increase in cash flows from financing activities, with a net cash used of $(405,998) in 2025 compared to $16,965 provided in 2024[48] Costs and Expenses - The all-in cash expense was $2.44 per Mcfe in the third quarter, slightly up from $2.42 per Mcfe during the same period in 2024[17] - Drilling and completion costs on a cash basis increased from $147,075,000 in Q3 2024 to $166,968,000 in Q3 2025[38] - Total operating expenses increased by 1% from $1,080,892 in Q3 2024 to $1,095,877 in Q3 2025[50] - Average costs for lease operating increased by 11% to $0.10 per Mcfe in Q3 2025[51] Strategic Initiatives - Antero completed approximately $260 million in strategic acquisitions, adding 75-100 MMcfe/d of net production and 10 net undeveloped locations[5] - The company is increasing its land capital budget by $50 million to expand its position in the Marcellus Fairway, adding 79 incremental drilling locations year-to-date[6] - Antero added natural gas swaps for 2026 and 2027, increasing its fourth quarter 2025 natural gas swaps to approximately 646 BBtu/d at $3.70/MMBtu[9] - The company expects continued improvements in capital efficiency and production targets in the future[39] Market and Pricing - Antero's average realized natural gas price before hedges was $3.12 per Mcf, a $0.05 per Mcf premium to the benchmark index price[15] - Average realized price for natural gas before derivative settlements rose by 46% to $3.12 per Mcf in Q3 2025[51] - Oil sales decreased by 41% from $52,724 in Q3 2024 to $31,351 in Q3 2025[50] - The company reported a significant increase in commodity derivative fair value gains, rising by 114% to $39,243 in Q3 2025[50] Taxation - The company reported a decrease in production and ad valorem taxes from $47,423 in 2024 to $28,884 in 2025, a reduction of 39.2%[46] - Production and ad valorem taxes decreased by 39% from $47,423 in Q3 2024 to $28,884 in Q3 2025[50]