Antero Resources Q2 Earnings Miss on Higher Expenses, Revenues Beat

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]