Antero Resources Announces Fourth Quarter 2023 Results, Year End Reserves and 2024 Guidance

Core Viewpoint Antero Resources Corporation reported strong financial and operational results for the fourth quarter and full year of 2023, highlighting increased production, improved capital efficiency, and a positive outlook for 2024 driven by anticipated demand growth in the LNG sector. Financial Highlights - Fourth quarter net production averaged 3.4 Bcfe/d, a 6% increase year-over-year [2] - Realized a pre-hedge natural gas equivalent price of $3.52 per Mcfe, a $0.64 per Mcfe premium to NYMEX pricing [2] - Net income for the fourth quarter was $95 million, with adjusted net income of $71 million [2] - Adjusted EBITDAX was $322 million, and net cash provided by operating activities was $312 million [2] - Free cash flow before changes in working capital was $90 million [9] Production and Reserves - Full year 2023 net production averaged 3.4 Bcfe/d, a 6% increase from the prior year [3] - Liquids production averaged 193 MBbl/d, a 14% increase from the prior year [3] - Estimated proved reserves increased to 18.1 Tcfe at year-end 2023, with proved developed reserves at 13.8 Tcfe, a 2% increase from the prior year [3][19] - Estimated future development cost for 4.3 Tcfe of proved undeveloped reserves is $0.42 per Mcfe [3] 2024 Guidance - Net production is expected to average between 3.3 and 3.4 Bcfe/d, with natural gas production projected to decline by 3% [4] - Liquids production is expected to increase by 2% from the prior year [4] - The drilling and completion capital budget is set at $650 to $700 million, a decrease of 26% from 2023 [4] - Land capital budget is projected at $75 to $100 million, down 41% from 2023 [4] Operational Efficiency - The company achieved a record average lateral length drilled of over 17,000 feet per well in the fourth quarter [2] - Completion stages per day averaged 11 stages, a 39% increase from the prior year [3] - The corporate decline rate has significantly decreased, leading to a reduction in maintenance capital for 2024 [4] Market Position and Outlook - The company is well-positioned to benefit from the anticipated surge in LNG demand, with a firm transportation portfolio that delivers 100% of its natural gas out of basin [3] - By the end of 2025, total exports, including LNG and Mexico pipeline flows, are expected to increase by nearly 8 Bcf/d, outpacing supply growth [3] - The CFO noted that significant leverage to NGL prices, which have increased over 15% from the fourth quarter of 2023, enhances the 2024 outlook [3]