Antero Resources (AR) Q1 Earnings Beat on Higher Production

Core Viewpoint - Antero Resources Corporation reported mixed financial results for the first quarter of 2024, with adjusted earnings beating estimates but significantly declining year-over-year, while revenues also surpassed expectations but fell compared to the previous year [1]. Production Summary - Total production in Q1 2024 was 312 billion cubic feet equivalent (Bcfe), a 6% increase from 295 Bcfe a year ago, exceeding estimates of 297 Bcfe [2]. - Natural gas production, which constituted 65% of total production, reached 202 Bcf, up 4% from 194 Bcf year-over-year and above the estimate of 197 Bcf [2]. - Oil production increased by 25% to 1,035 thousand barrels (MBbls) from 831 MBbls in the prior year [2]. - C2 Ethane production was 6,760 MBbls, a 10% increase from 6,141 MBbls year-over-year, though below the estimate of 7,108 MBbls [2]. - C3+ NGLs production was 10,564 MBbls, up 7% from 9,857 MBbls reported a year ago, surpassing the estimate of 10,254 MBbls [2]. Realized Prices Summary - The weighted natural-gas-equivalent price realization was $3.39 per thousand cubic feet equivalent (Mcfe), down from $4.13 a year ago, but above the estimate of $2.75 Mcfe [3]. - Realized natural gas prices fell 32% to $2.35 per Mcf from $3.45 year-over-year, exceeding the estimate of $2.24 per Mcf [3]. - Oil price realization was $62.53 per barrel (Bbl), slightly up from $62.35 a year ago but below the estimate of $65.43 per Bbl [3]. - C3+ NGLs realized price increased to $43.05 per Bbl from $42.95 year-over-year, while C2 Ethane realized price decreased 21% to $9.32 per Bbl from $11.73 [3]. Operating Expenses Summary - Total operating expenses decreased to $1.06 billion from $1.08 billion year-over-year, slightly above the estimate of $1.02 million [4]. - Average lease operating costs were 9 cents per Mcfe, down 10% from 10 cents year-over-year [4]. - Transportation expenses declined 6% to 62 cents per Mcfe, while processing costs increased 1% to 82 cents per Mcfe [4]. Capital Expenditures & Financials - Antero Resources spent $187 million on drilling and completion operations in Q1 2024 and reported no cash and cash equivalents as of March 31, 2024, with long-term debt at $1.51 billion [5]. Guidance - For 2024, Antero Resources raised its net daily natural gas-equivalent production guidance to 3.35-3.4 Bcfe/d, including higher liquid volumes, and lowered cash production expense guidance to $2.40-$2.50 per Mcfe [6].