Antero Resources Q4 Earnings Beat Estimates on Higher Production

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]