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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
July 31, 2024
ANTERO RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
| Delaware |
|
001-36120 |
|
80-0162034 |
(State or Other
Jurisdiction
of Incorporation) |
|
(Commission
File Number) |
|
(I.R.S. Employer
Identification Number) |
1615 Wynkoop Street
Denver, Colorado 80202
(Address of Principal Executive Offices) (Zip Code)
Registrant’s
Telephone Number, Including Area Code: (303)
357-7310
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title
of each class |
Trading symbol(s) |
Name
of each exchange on which
registered |
| Common
Stock, par value $0.01 Per Share |
AR |
New
York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 |
Results of Operations and Financial Condition |
On July 31,
2024, Antero Resources Corporation issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated by
reference herein, announcing its financial and operational results for the quarter ended June 30, 2024.
The information
in this Current Report, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed
“filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to liabilities of that section, and is not incorporated by reference into any filing under the Securities Act of
1933, as amended, or the Exchange Act unless specifically identified therein as being incorporated therein by reference.
| Item 9.01 |
Financial Statements and Exhibits. |
(d) Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
ANTERO RESOURCES CORPORATION |
| |
|
| |
By: |
/s/ Michael N. Kennedy |
| |
|
Michael N. Kennedy |
| |
|
Chief Financial Officer and Senior Vice President – Finance |
Dated: July 31, 2024
Exhibit 99.1
Antero Resources Announces Second Quarter 2024
Financial and Operating Results
Denver,
Colorado, July 31, 2024—Antero Resources Corporation (NYSE: AR) (“Antero Resources,” “Antero,”
or the “Company”) today announced its second quarter 2024 financial and operating results. The relevant unaudited condensed
consolidated financial statements are included in Antero Resources’ Quarterly Report on Form 10-Q for the quarter ended June 30,
2024.
Second Quarter
2024 Highlights:
| · | Net production averaged 3.4 Bcfe/d, an increase of 1% from the year ago period |
| o | Natural gas production averaged 2.1 Bcf/d, a decline of 4% from the year ago period |
| o | Liquids production averaged 212 MBbl/d, an increase of 10% from the year ago period and which now represents
37% of total production |
| · | Realized a pre-hedge natural gas equivalent price of $2.98 per Mcfe, a $1.09 per Mcfe premium to NYMEX
pricing that averaged $1.89 per MMBtu |
| · | Net loss was $66 million, Adjusted Net Loss was $60 million (Non-GAAP) |
| · | Adjusted EBITDAX was $151 million (Non-GAAP); net cash provided by operating activities was $143 million |
| · | Averaged a record 11.9 completion stages per day in the quarter, including a monthly record of 12.8
stages per day during the month of May |
| · | Averaged a record of over 18,000 lateral feet per well for completed wells during the quarter, 16%
above the prior quarterly record |
| · | Recorded second highest production rate per well for a pad in company history, averaging 37 MMcfe/d
per well over 60 days |
| · | Achieved investment grade rating following upgrade from S&P and entered into new unsecured credit
facility |
| · | Published Antero’s 7th Annual ESG Report highlighting Antero’s economic contributions
to its communities of $1 billion in 2023 and a reduction in methane intensity by 78% and a reduction in Scope 1 and Scope 2 emissions
by 59% since 2019 |
2024 Full-Year Guidance Updates:
| · | Increasing production guidance range to 3.375 to 3.425 Bcfe/d driven by higher liquids volumes |
| o | Increase is despite deferring the turn in line of a five well drilled but uncompleted pad until the
end of this year from the third quarter previously |
| · | Increasing C3+ NGL realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont
Belvieu pricing, which is expected to increase annual Free Cash Flow by approximately $60 million relative to initial NGL pricing guidance |
Paul Rady, Chairman, CEO and President of Antero
Resources commented, “During the second quarter we continued to deliver strong capital efficiency results. We set a new quarterly
completion record of nearly 12 stages per day. These faster completion times have reduced our cycle times to approximately 140 days in
2024, a dramatic reduction of 67% from just five years ago. Looking ahead, we plan to defer turning in line a drilled but uncompleted
pad until the end of the year given current natural gas pricing. Despite this activity deferral, we increased our full year 2024 production
guidance for the second consecutive quarter as we continue to see strong capital efficiency gains and well performance.”
Michael Kennedy, CFO of Antero Resources said,
“Our quarterly financial results continue to benefit from our significant exposure to liquids prices. Although natural gas production
was down 4% from the year ago period, our liquids production increased 10% year-over-year, and now represents a record high 56% of our
total revenue. This increase in liquids production drove 34% Adjusted EBITDAX growth from the prior year period, despite natural gas prices
being down 10% over that time. In 2024, we made a strategic decision to increase C3+ NGL exposure to spot international prices where spreads
have increased to near record levels. Antero’s unconstrained access to international markets allows us to capture premiums to Mont
Belvieu and leads us to an additional increase in C3+ NGL pricing guidance for this year.”
Mr. Kennedy continued, “Antero’s
upgrade to an investment grade credit rating reflects our industry low maintenance capital requirements and our commitment to debt reduction
over the last several years. As a result of the capital efficiency gains, we were able to reduce our maintenance capital requirement by
over $200 million in 2024. Additionally, we have reduced debt by more than $2 billion since the start of our debt reduction program in
late 2019. We believe this peer-leading capital efficiency drives the lowest breakeven costs and positions Antero Resources as the premier
operator in Appalachia.”
For a discussion of the non-GAAP financial
measures including Adjusted Net Income (Loss), Adjusted EBITDAX, Free Cash Flow and Net Debt please see “Non-GAAP Financial Measures.”
2024 Guidance Update
Antero is increasing its full year 2024 production
guidance to 3.375 to 3.425 Bcfe/d, an increase at the midpoint of 25 MMcfe/d. The higher than expected volumes are driven by stronger
well performance, higher liquids volumes and capital efficiency gains.
Antero is increasing its full year 2024 C3+ NGL
realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont Belvieu, up from the previous guidance of a premium of
$0.00 to $1.00 per barrel. This increase in NGL realized price guidance reflects higher expected realizations from take-in-kind transactions,
primarily through more exposure to premium international prices during 2024. Antero has firm transportation capacity to sell its propane
and butane at the Marcus Hook Export Terminal in Philadelphia, PA. Antero entered into transactions during the second quarter at prices
greater than a $0.10 per gallon premium to Mont Belvieu and this premium has further increased in the third quarter. This increasing premium
reflects tight Gulf Coast export capacity and continued strong international demand out of Marcus Hook.
| | |
Full Year 2024 – | | |
Full Year 2024 – | | |
Full Year 2024 – | |
| | |
Initial | | |
Prior | | |
Revised | |
| Full Year 2024 Guidance | |
Low | | |
High | | |
Low | | |
High | | |
Low | | |
High | |
| Net Daily Natural Gas Equivalent Production (Bcfe/d) | |
| 3.3 | | |
| 3.4 | | |
| 3.35 | | |
| 3.4 | | |
| 3.375 | | |
| 3.425 | |
| C3+ NGL Realized Price – Expected Premium to Mont Belvieu ($/Bbl) | |
$ | (1.00 | ) | |
$ | 1.00 | | |
$ | 0.00 | | |
$ | 1.00 | | |
$ | 1.00 | | |
$ | 2.00 | |
| Free Cash Flow Impact | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
From C3+ NGL Price Increase (1) | |
| - | | |
| | | |
|
+$20 million
| | |
|
+$60 million
| |
| (1) | Based on the midpoint of C3+ NGL production guidance. |
Note: Any 2024 guidance items not
discussed in this release are unchanged from previously stated guidance.
Free Cash Flow
During the second quarter of 2024, Free Cash Flow
deficit was $63 million.
| | |
Three Months Ended June 30, | |
| | |
2023 | | |
2024 | |
| Net cash provided by operating activities | |
$ | 155,263 | | |
| 143,499 | |
| Less: Net cash used in investing activities | |
| (287,236 | ) | |
| (187,315 | ) |
| Less: Proceeds from sale of assets, net | |
| (220 | ) | |
| (55 | ) |
| Less: Distributions to non-controlling interests in Martica | |
| (31,745 | ) | |
| (19,282 | ) |
| Free Cash Flow | |
$ | (163,938 | ) | |
| (63,153 | ) |
| Changes in Working Capital (1) | |
| (52,709 | ) | |
| (11,700 | ) |
| Free Cash Flow before Changes in Working Capital | |
$ | (216,647 | ) | |
| (74,853 | ) |
| (1) | Working capital adjustments in the second quarter of 2023 includes $51 million in net increases in
current assets and liabilities and $2 million in net increases in accounts payable and accrued liabilities for additions to property and
equipment. Working capital adjustments in the second quarter of 2024 includes $11 million in net increases in current assets and liabilities
and less than $1 million in net increases in accounts payable and accrued liabilities for additions to property and equipment. |
Second Quarter 2024 Financial Results
Net
daily natural gas equivalent production in the second quarter averaged 3.4 Bcfe/d, including 212 MBbl/d of liquids. Antero’s
average realized natural gas price before hedging was $1.92 per Mcf, a $0.03 per Mcf premium to the average First-of-Month NYMEX Henry
Hub price.
The following table details average net production
and average realized prices for the three months ended June 30, 2024:
| | |
Three Months Ended June 30, 2024 | |
| | |
| | | |
| | | |
| | | |
| | | |
| Combined
Natural | |
| | |
| Natural Gas | | |
| Oil | | |
| C3+ NGLs | | |
| Ethane | | |
| Gas
Equivalent | |
| | |
| (MMcf/d) | | |
| (Bbl/d) | | |
| (Bbl/d) | | |
| (Bbl/d) | | |
| (MMcfe/d) | |
| Average Net Production | |
| 2,149 | | |
| 10,462 | | |
| 115,538 | | |
| 85,835 | | |
| 3,420 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| Combined | |
| | |
| | | |
| | | |
| | | |
| | | |
| Natural | |
| | |
| Natural Gas | | |
| Oil | | |
| C3+ NGLs | | |
| Ethane | | |
| Gas
Equivalent | |
| Average Realized Prices | |
| ($/Mcf) | | |
| ($/Bbl) | | |
| ($/Bbl) | | |
| ($/Bbl) | | |
| ($/Mcfe) | |
| Average realized prices before settled derivatives | |
$ | 1.92 | | |
| 66.66 | | |
| 40.27 | | |
| 8.42 | | |
| 2.98 | |
| NYMEX average price (1) | |
$ | 1.89 | | |
| 80.57 | | |
| | | |
| | | |
| 1.89 | |
| Premium / (Discount) to NYMEX | |
$ | 0.03 | | |
| (13.91 | ) | |
| | | |
| | | |
| 1.09 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| Settled commodity derivatives (2) | |
$ | 0.02 | | |
| (0.16 | ) | |
| 0.17 | | |
| — | | |
| 0.02 | |
| Average realized prices after settled derivatives | |
$ | 1.94 | | |
| 66.50 | | |
| 40.44 | | |
| 8.42 | | |
| 3.00 | |
| Premium / (Discount) to NYMEX | |
$ | 0.05 | | |
| (14.07 | ) | |
| | | |
| | | |
| 1.11 | |
| (1) | The average index prices for natural gas and oil represent the NYMEX average first-of-month price and calendar month average West
Texas Intermediate future price, respectively. |
| (2) | These commodity derivative instruments include contracts attributable to Martica Holdings LLC (“Martica”), Antero’s
consolidated variable interest entity. All gains or losses from Martica’s derivative instruments are fully attributable to the noncontrolling
interests in Martica, which includes portions of the natural gas and C3+ NGLs derivative instruments, as well as all oil derivative instruments
during the three months ended June 30, 2024. |
Antero’s average realized C3+ NGL price
was $40.27 per barrel. Antero shipped 53% of its total C3+ NGL net production on Mariner
East 2 (“ME2”) for export and realized
an $0.08 per gallon premium to Mont Belvieu pricing on these volumes at Marcus Hook, PA. Antero sold the remaining 47% of C3+ NGL net
production at a $0.06 per gallon discount to Mont Belvieu pricing at Hopedale, OH. The resulting blended price on 116 MBbl/d of net C3+
NGL production was a $0.02 per gallon premium, or $0.63 per barrel compared to Mont Belvieu pricing.
| | |
Three Months Ended June 30, 2024 | |
| | |
Pricing Point | |
Net C3+ NGL Production (Bbl/d) | | |
% by Destination | | |
Premium (Discount) To Mont Belvieu ($/Gal) | |
| Propane / Butane on ME2 - Exported to International Markets | |
Marcus Hook, PA | |
| 61,587 | | |
| 53 | % | |
$ | 0.08 | |
| Remaining C3+ NGL Volume – Sold Domestically | |
Hopedale, OH | |
| 53,951 | | |
| 47 | % | |
($ | 0.06 | ) |
| Total C3+ NGLs / Blended Premium | |
| |
| 115,538 | | |
| 100 | % | |
$ | 0.02 | |
| | |
| |
| | | |
| | | |
| | |
| Total C3+ NGLs Premium to Mont Belvieu ($/Bbl) | |
| |
| | | |
| | | |
$ | 0.63 | |
All-in
cash expense, which includes lease operating, gathering, compression, processing and transportation, production and ad valorem taxes was
$2.36 per Mcfe in the second quarter, as compared to $2.35 per Mcfe average during the second quarter of 2023. Lower transportation expense
was offset by higher gathering, compression and processing costs primarily related to CPI-based adjustments in 2024. Net marketing
expense was $0.07 per Mcfe in the second quarter, unchanged from the $0.07 per Mcfe during the second quarter of 2023. The increase in
net marketing expense from the first quarter of 2024 was related to higher unutilized expense during the second quarter of 2024 related
to maintenance on a third-party long-haul pipeline, which has since been completed. The company continues to forecast annual net marketing
expense to be in the range of $0.04 to $0.06 per Mcfe.
Second
Quarter 2024 Operating Results
Antero placed 11 horizontal Marcellus wells to
sales during the second quarter with an average lateral length of 18,172 feet.
Highlights:
| · | A six well pad had the second highest 60-day rate in company history, averaging 37 MMcfe/d per well with
approximately 2,044 Bbl/d of liquids assuming 25% ethane recovery. These wells have an average lateral length of 16,750 feet. |
| · | A five well pad had a 60-day rate averaging 34 MMcfe/d per well with approximately 2,103 Bbl/d of liquids
assuming 25% ethane recovery. These wells have an average lateral length of 19,878 feet. |
Second Quarter 2024 Capital Investment
Antero’s
drilling and completion capital expenditures for the three months ended June 30, 2024, were $164 million. The Company continues
to forecast total drilling and completion capital in 2024 to be in the range of $650 to $700 million. In addition to capital invested
in drilling and completion activities, the Company invested $21 million in land during the second quarter. During the quarter, Antero
added approximately 3,500 net acres, representing 13 incremental drilling locations at an average cost of approximately $750,000 per location.
The company continues to forecast total land capital in 2024 to be in the range of $75 million to $100 million.
Investment Grade Rating and New Credit Facility
On
May 15, 2024, S&P upgraded Antero’s corporate and issuer credit ratings to BBB- from BB+ with a stable outlook. The Company
has maintained an investment grade credit rating from Fitch Ratings since September of 2022. On July 30, 2024, Antero
entered into a new unsecured credit facility with lender commitments of $1.65 billion. With the investment grade rating, letters of credit
were reduced from $443 million to $120 million. Antero expects interest expense to decrease by $15 million on an annual basis and realized
over $350 million of increased liquidity as a result of the upgrade.
2023 ESG Report Highlights
On July 31, 2024, Antero published its 2023
ESG Report, marking the Company's 7th year reporting on its environmental, social and governance (ESG) performance. This year’s
report highlights the Company’s emissions reduction progress, significant local economic impacts, increased water recycling rate,
continued commitment to safety across our operations, and our innovative project to directly address energy poverty in Ghana.
| · | Contributed $1 billion in 2023 to local communities in which Antero operates, including; $816 million
in lease and royalty payments, $158 million in property and severance taxes, and $24 million invested in road infrastructure improvements |
| · | Reduced methane leak loss rate by 76% and Scope 1 GHG intensity by 63% since 2019 |
| · | Reduced methane intensity by 78% and its combined Scope 1 and 2 emissions by 59% since 2019, putting the
Company on target to achieve its Net Zero 2025 goal |
| · | Recycled 89% of the wastewater in 2023 and reduced wastewater injection volumes by 72% since 2019 |
| · | In 2024, Antero finalized a commercial agreement with Envirofit International to provide cleaner-burning
LPG stoves in Ghana, Africa. This strategic initiative will improve air quality and overall health for the Ghanaian residents utilizing
the stoves, while also providing the opportunity for thousands of Ghanaians to transition to a more modern, reliable and cost-effective
energy source. This project will generate significant employment opportunities through local manufacturing and distribution as well as
premium certified carbon offsets that are expected to help Antero achieve the Company's 2025 Net Zero Scope 1 GHG emissions goal. |
Commodity Derivative Positions
Antero did not enter into any new natural gas
or oil hedges during the second quarter of 2024.
Please
see Antero’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, for more information on all commodity
derivative positions. For detail on current commodity positions, please see the Hedge Profile presentations at www.anteroresources.com.
Conference Call
A conference call is scheduled on Thursday, August 1,
2024 at 9:00 am MT to discuss the financial and operational results. A brief Q&A session for security analysts will immediately follow
the discussion of the results. To participate in the call, dial in at 877-407-9079 (U.S.), or 201-493-6746 (International) and reference
“Antero Resources.” A telephone replay of the call will be available until Thursday, August 8, 2024 at 9:00 am MT at
877-660-6853 (U.S.) or 201-612-7415 (International) using the conference ID: 13743656. To access the live webcast and view the related
earnings conference call presentation, visit Antero's website at www.anteroresources.com. The webcast will be archived for replay until
Thursday, August 8, 2024 at 9:00 am MT.
Presentation
An
updated presentation will be posted to the Company's website before the conference call. The presentation can be found at www.anteroresources.com
on the homepage. Information on the Company's website does not constitute a portion of, and is not incorporated by reference
into this press release.
Non-GAAP Financial Measures
Adjusted Net Income (Loss)
Adjusted
Net Income (Loss) as set forth in this release represents net income (loss), adjusted for certain items. Antero believes that Adjusted
Net Income (Loss) is useful to investors in evaluating operational trends of the Company and its performance relative to other oil and
gas producing companies. Adjusted Net Income (Loss) is not a measure of financial performance under GAAP and should not be considered
in isolation or as a substitute for net income (loss) as an indicator of financial performance. The GAAP measure most directly comparable
to Adjusted Net Income (Loss) is net income (loss). The following table reconciles net loss to Adjusted Net Loss (in thousands):
| | |
Three Months Ended June 30, | |
| | |
2023 | | |
2024 | |
| Net loss and comprehensive loss attributable to Antero Resources Corporation | |
$ | (83,084 | ) | |
| (65,663 | ) |
| Net income and comprehensive income attributable to noncontrolling interests | |
| 15,151 | | |
| 5,208 | |
| Unrealized commodity derivative (gains) losses | |
| (4,803 | ) | |
| 11,479 | |
| Amortization of deferred revenue, VPP | |
| (7,618 | ) | |
| (6,739 | ) |
| Gain on sale of assets | |
| (220 | ) | |
| (18 | ) |
| Impairment of property and equipment | |
| 15,710 | | |
| 313 | |
| Equity-based compensation | |
| 13,512 | | |
| 17,151 | |
| Equity in earnings of unconsolidated affiliate | |
| (19,098 | ) | |
| (20,881 | ) |
| Contract termination and loss contingency | |
| 4,441 | | |
| 3,009 | |
| Tax effect of reconciling items (1) | |
| (414 | ) | |
| (938 | ) |
| | |
| (66,423 | ) | |
| (57,079 | ) |
| Martica adjustments (2) | |
| (17,255 | ) | |
| (3,225 | ) |
| Adjusted Net Loss | |
$ | (83,678 | ) | |
| (60,304 | ) |
| | |
| | | |
| | |
| Diluted Weighted Average Common Shares Outstanding (3) | |
| 300,141 | | |
| 310,806 | |
| (1) | Deferred taxes were approximately 21% and 22% for 2023 and 2024, respectively. |
| (2) | Adjustments reflect noncontrolling interest in Martica not otherwise adjusted in amounts above. |
| (3) | Diluted weighted average shares outstanding does not include securities that would have had an anti-dilutive
effect on the computation of diluted earnings per share. Anti-dilutive weighted average shares outstanding for the three months ended
June 30, 2023 and 2024 were 15.3 million and 5.8 million, respectively. |
Net Debt
Net Debt is calculated as total long-term debt
less cash and cash equivalents. Management uses Net Debt to evaluate the Company’s financial position, including its ability to
service its debt obligations.
The following table reconciles consolidated total
long-term debt to Net Debt as used in this release (in thousands):
| | |
December 31, | | |
June 30, | |
| | |
2023 | | |
2024 | |
| Credit Facility | |
$ | 417,200 | | |
| 496,000 | |
| 8.375% senior notes due 2026 | |
| 96,870 | | |
| 96,870 | |
| 7.625% senior notes due 2029 | |
| 407,115 | | |
| 407,115 | |
| 5.375% senior notes due 2030 | |
| 600,000 | | |
| 600,000 | |
| 4.250% convertible senior notes due 2026 | |
| 26,386 | | |
| — | |
| Unamortized debt issuance costs | |
| (9,975 | ) | |
| (8,777 | ) |
| Total long-term debt | |
$ | 1,537,596 | | |
| 1,591,208 | |
| Less: Cash and cash equivalents | |
| — | | |
| — | |
| Net Debt | |
$ | 1,537,596 | | |
| 1,591,208 | |
Free Cash Flow
Free Cash Flow is a measure of financial performance
not calculated under GAAP and should not be considered in isolation or as a substitute for cash flow from operating, investing, or financing
activities, as an indicator of cash flow or as a measure of liquidity. The Company defines Free Cash Flow as net cash provided by operating
activities, less net cash used in investing activities, which includes drilling and completion capital and leasehold capital, plus payments
for derivative monetization, less proceeds from asset sales or derivative monetization and less distributions to non-controlling interests
in Martica.
The Company has not provided projected net cash
provided by operating activities or a reconciliation of Free Cash Flow to projected net cash provided by operating activities, the most
comparable financial measure calculated in accordance with GAAP. The Company is unable to project net cash provided by operating activities
for any future period because this metric includes the impact of changes in operating assets and liabilities related to the timing of
cash receipts and disbursements that may not relate to the period in which the operating activities occurred. The Company is unable to
project these timing differences with any reasonable degree of accuracy without unreasonable efforts.
Free Cash Flow is a useful indicator of the Company’s
ability to internally fund its activities, service or incur additional debt and estimate our ability to return capital to shareholders.
There are significant limitations to using Free Cash Flow as a measure of performance, including the inability to analyze the effect of
certain recurring and non-recurring items that materially affect the Company’s net income, the lack of comparability of results
of operations of different companies and the different methods of calculating Free Cash Flow reported by different companies. Free Cash
Flow does not represent funds available for discretionary use because those funds may be required for debt service, land acquisitions
and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations.
Adjusted EBITDAX
Adjusted EBITDAX is a non-GAAP financial measure
that we define as net income (loss), adjusted for certain items detailed below.
Adjusted EBITDAX as used and defined by us, may
not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance
with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss,
cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance
with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures,
working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds
may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and
obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because
this measure:
| · | is widely used by investors in the oil and natural gas industry to measure operating performance without
regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting
methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors; |
| · | helps investors to more meaningfully evaluate and compare the results of our operations from period to
period by removing the effect of our capital and legal structure from our operating structure; |
| · | is used by our management team for various purposes, including as a measure of our operating performance,
in presentations to our Board of Directors, and as a basis for strategic planning and forecasting: and |
| · | is used by our Board of Directors as a performance measure in determining executive compensation. |
There are significant limitations to using Adjusted
EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that
materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different
methods of calculating Adjusted EBITDAX reported by different companies.
The GAAP measures most directly comparable to
Adjusted EBITDAX are net income (loss) and net cash provided by operating activities. The following table represents a reconciliation
of Antero’s net income (loss), including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of Antero’s Adjusted
EBITDAX to net cash provided by operating activities per our condensed consolidated statements of cash flows, in each case, for the three
months ended June 30, 2023 and 2024 (in thousands). Adjusted EBITDAX also excludes the noncontrolling interests in Martica, and these
adjustments are disclosed in the table below as Martica related adjustments.
| | |
Three Months Ended June 30, | |
| | |
2023 | | |
2024 | |
| Reconciliation of net loss to Adjusted EBITDAX: | |
| | |
| |
| Net loss and comprehensive loss attributable to Antero Resources Corporation | |
$ | (83,084 | ) | |
| (65,663 | ) |
| Net income and comprehensive income attributable to noncontrolling interests | |
| 15,151 | | |
| 5,208 | |
| Unrealized commodity derivative (gains) losses | |
| (4,803 | ) | |
| 11,479 | |
| Amortization of deferred revenue, VPP | |
| (7,618 | ) | |
| (6,739 | ) |
| Gain on sale of assets | |
| (220 | ) | |
| (18 | ) |
| Interest expense, net | |
| 27,928 | | |
| 32,681 | |
| Income tax benefit | |
| (29,833 | ) | |
| (13,334 | ) |
| Depletion, depreciation, amortization and accretion | |
| 172,610 | | |
| 171,316 | |
| Impairment of property and equipment | |
| 15,710 | | |
| 313 | |
| Exploration expense | |
| 743 | | |
| 643 | |
| Equity-based compensation expense | |
| 13,512 | | |
| 17,151 | |
| Equity in earnings of unconsolidated affiliate | |
| (19,098 | ) | |
| (20,881 | ) |
| Dividends from unconsolidated affiliate | |
| 31,284 | | |
| 31,284 | |
| Contract termination, loss contingency, transaction expense and other | |
| 4,444 | | |
| 3,020 | |
| | |
| 136,726 | | |
| 166,460 | |
| Martica related adjustments (1) | |
| (23,625 | ) | |
| (15,058 | ) |
| Adjusted EBITDAX | |
$ | 113,101 | | |
| 151,402 | |
| | |
| | | |
| | |
| Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: | |
| | | |
| | |
| Adjusted EBITDAX | |
$ | 113,101 | | |
| 151,402 | |
| Martica related adjustments (1) | |
| 23,625 | | |
| 15,058 | |
| Interest expense, net | |
| (27,928 | ) | |
| (32,681 | ) |
| Amortization of debt issuance costs and other | |
| 861 | | |
| 613 | |
| Exploration expense | |
| (743 | ) | |
| (643 | ) |
| Changes in current assets and liabilities | |
| 51,144 | | |
| 11,392 | |
| Contract termination, loss contingency, transaction expense and other | |
| (4,444 | ) | |
| (214 | ) |
| Other items | |
| (353 | ) | |
| (1,428 | ) |
| Net cash provided by operating activities | |
$ | 155,263 | | |
| 143,499 | |
| (1) | Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. |
Drilling and Completion Capital Expenditures
For a reconciliation between cash paid for drilling
and completion capital expenditures and drilling and completion accrued capital expenditures during the period, please see the capital
expenditures section below (in thousands):
| | |
Three Months Ended
June 30, | |
| | |
2023 | | |
2024 | |
| Drilling and completion costs (cash basis) | |
$ | 244,437 | | |
| 173,323 | |
| Change in accrued capital costs | |
| 2,316 | | |
| (9,116 | ) |
| Adjusted drilling and completion costs (accrual basis) | |
$ | 246,753 | | |
| 164,207 | |
Notwithstanding their use for comparative purposes,
the Company’s non-GAAP financial measures may not be comparable to similarly titled measures employed by other companies.
Antero
Resources is an independent natural gas and natural gas liquids company engaged in the acquisition, development and production of unconventional
properties located in the Appalachian Basin in West Virginia and Ohio. In conjunction with its affiliate, Antero Midstream Corporation
(NYSE: AM), Antero is one of the most integrated natural gas producers in the U.S. The Company’s website is located at www.anteroresources.com.
This release includes "forward-looking
statements." Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under Antero
Resources’ control. All statements, except for statements of historical fact, made in this release regarding activities, events
or developments Antero Resources expects, believes or anticipates will or may occur in the future, such as those regarding our strategy,
future operations, financial position, estimated revenues and losses, projected costs, anticipated reductions in letters of credit and
interest expense, prospects, plans and objectives of management, return of capital, expected results, future commodity prices, future
production targets, including those related to certain levels of production, future earnings, leverage targets and debt repayment, future
capital spending plans, improved and/or increasing capital efficiency, estimated realized natural gas, NGL and oil prices, impacts of
geopolitical and world health events, expected drilling and development plans, projected well costs and cost savings initiatives, future
financial position, the participation level of our drilling partner and the financial and production results to be achieved as a result
of that drilling partnership, the other key assumptions underlying our projections, and future marketing opportunities, are forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934. All forward-looking statements speak only as of the date of this release. Although Antero Resources believes that the plans, intentions
and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions
or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast
in such statements. Except as required by law, Antero Resources expressly disclaims any obligation to and does not intend to publicly
update or revise any forward-looking statements.
Antero Resources cautions you that these forward-looking
statements are subject to all of the risks and uncertainties, incident to the exploration for and development, production, gathering and
sale of natural gas, NGLs and oil, most of which are difficult to predict and many of which are beyond the Antero Resources’ control.
These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruption, availability and
cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks,
marketing and transportation risks, regulatory changes or changes in law, the uncertainty inherent in estimating natural gas, NGLs and
oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts
of interest among our stockholders, impacts of geopolitical and world health events, cybersecurity risks, our ability to achieve Net Zero
Scope 1 and Scope 2 GHG emissions and the costs associated therewith, the state of markets for, and availability of, verified quality
carbon offsets and the other risks described under the heading "Item 1A. Risk Factors" in Antero Resources’ Annual Report
on Form 10-K for the year ended December 31, 2023 and the Quarterly Report on Form 10-Q for the quarter ended June 30,
2024.
For more information, contact Daniel Katzenberg,
Director - Finance and Investor Relations of Antero Resources at (303) 357-7219 or dkatzenberg@anteroresources.com.
ANTERO RESOURCES CORPORATION
Condensed Consolidated Balance
Sheets
(In thousands, except per share amounts)
| | |
| | |
(Unaudited) | |
| | |
December 31, | | |
June 30, | |
| | |
2023 | | |
2024 | |
| Assets |
|
|
|
|
|
|
| Current assets: | |
| | | |
| | |
| Accounts receivable | |
$ | 42,619 | | |
| 23,552 | |
| Accrued revenue | |
| 400,805 | | |
| 362,451 | |
| Derivative instruments | |
| 5,175 | | |
| 2,440 | |
| Prepaid expenses | |
| 12,901 | | |
| 9,789 | |
| Other current assets | |
| 14,192 | | |
| 10,758 | |
| Total current assets | |
| 475,692 | | |
| 408,990 | |
| Property and equipment: | |
| | | |
| | |
| Oil and gas properties, at cost (successful efforts method): | |
| | | |
| | |
| Unproved properties | |
| 974,642 | | |
| 963,023 | |
| Proved properties | |
| 13,908,804 | | |
| 14,179,028 | |
| Gathering systems and facilities | |
| 5,802 | | |
| 5,802 | |
| Other property and equipment | |
| 98,668 | | |
| 106,684 | |
| | |
| 14,987,916 | | |
| 15,254,537 | |
| Less accumulated depletion, depreciation and amortization | |
| (5,063,274 | ) | |
| (5,296,438 | ) |
| Property and equipment, net | |
| 9,924,642 | | |
| 9,958,099 | |
| Operating leases right-of-use assets | |
| 2,965,880 | | |
| 2,797,447 | |
| Derivative instruments | |
| 5,570 | | |
| 3,176 | |
| Investment in unconsolidated affiliate | |
| 222,255 | | |
| 223,552 | |
| Other assets | |
| 25,375 | | |
| 24,579 | |
| Total assets | |
$ | 13,619,414 | | |
| 13,415,843 | |
| Liabilities and Equity |
|
|
|
|
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
$ | 38,993 | | |
| 38,229 | |
| Accounts payable, related parties | |
| 86,284 | | |
| 97,455 | |
| Accrued liabilities | |
| 381,340 | | |
| 365,347 | |
| Revenue distributions payable | |
| 361,782 | | |
| 329,375 | |
| Derivative instruments | |
| 15,236 | | |
| 22,756 | |
| Short-term lease liabilities | |
| 540,060 | | |
| 525,636 | |
| Deferred revenue, VPP | |
| 27,101 | | |
| 26,153 | |
| Other current liabilities | |
| 1,295 | | |
| 1,061 | |
| Total current liabilities | |
| 1,452,091 | | |
| 1,406,012 | |
| Long-term liabilities: | |
| | | |
| | |
| Long-term debt | |
| 1,537,596 | | |
| 1,591,208 | |
| Deferred income tax liability, net | |
| 834,268 | | |
| 830,826 | |
| Derivative instruments | |
| 32,764 | | |
| 23,516 | |
| Long-term lease liabilities | |
| 2,428,450 | | |
| 2,268,031 | |
| Deferred revenue, VPP | |
| 60,712 | | |
| 48,184 | |
| Other liabilities | |
| 59,431 | | |
| 56,107 | |
| Total liabilities | |
| 6,405,312 | | |
| 6,223,884 | |
| Commitments and contingencies | |
| | | |
| | |
| Equity: | |
| | | |
| | |
| Stockholders' equity: | |
| | | |
| | |
| Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued | |
| — | | |
| — | |
| Common stock, $0.01 par value; authorized - 1,000,000 shares; 303,544 and 310,988 shares issued and outstanding as of December 31, 2023 and June 30, 2024, respectively | |
| 3,035 | | |
| 3,110 | |
| Additional paid-in capital | |
| 5,846,541 | | |
| 5,879,390 | |
| Retained earnings | |
| 1,131,828 | | |
| 1,102,510 | |
| Total stockholders' equity | |
| 6,981,404 | | |
| 6,985,010 | |
| Noncontrolling interests | |
| 232,698 | | |
| 206,949 | |
| Total equity | |
| 7,214,102 | | |
| 7,191,959 | |
| Total liabilities and equity | |
$ | 13,619,414 | | |
| 13,415,843 | |
ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Operations
and Comprehensive Income (Unaudited)
(In thousands, except per share amounts)
| | |
Three Months Ended June 30, | |
| | |
2023 | | |
2024 | |
| Revenue and other: | |
| | | |
| | |
| Natural gas sales | |
$ | 437,130 | | |
| 374,568 | |
| Natural gas liquids sales | |
| 397,733 | | |
| 489,191 | |
| Oil sales | |
| 57,962 | | |
| 63,458 | |
| Commodity derivative fair value gains (losses) | |
| 8,284 | | |
| (5,585 | ) |
| Marketing | |
| 43,793 | | |
| 49,418 | |
| Amortization of deferred revenue, VPP | |
| 7,618 | | |
| 6,739 | |
| Other revenue and income | |
| 785 | | |
| 865 | |
| Total revenue | |
| 953,305 | | |
| 978,654 | |
| Operating expenses: | |
| | | |
| | |
| Lease operating | |
| 28,748 | | |
| 29,759 | |
| Gathering, compression, processing and transportation | |
| 663,975 | | |
| 663,442 | |
| Production and ad valorem taxes | |
| 36,158 | | |
| 41,933 | |
| Marketing | |
| 66,175 | | |
| 70,807 | |
| Exploration | |
| 743 | | |
| 643 | |
| General and administrative (including equity-based compensation expense of $13,512 and $17,151 in 2023 and 2024, respectively) | |
| 53,901 | | |
| 59,428 | |
| Depletion, depreciation and amortization | |
| 171,406 | | |
| 170,536 | |
| Impairment of property and equipment | |
| 15,710 | | |
| 313 | |
| Accretion of asset retirement obligations | |
| 1,204 | | |
| 780 | |
| Contract termination and loss contingency | |
| 4,441 | | |
| 3,009 | |
| Gain on sale of assets | |
| (220 | ) | |
| (18 | ) |
| Other operating expense | |
| — | | |
| 11 | |
| Total operating expenses | |
| 1,042,241 | | |
| 1,040,643 | |
| Operating loss | |
| (88,936 | ) | |
| (61,989 | ) |
| Other income (expense): | |
| | | |
| | |
| Interest expense, net | |
| (27,928 | ) | |
| (32,681 | ) |
| Equity in earnings of unconsolidated affiliate | |
| 19,098 | | |
| 20,881 | |
| Total other expense | |
| (8,830 | ) | |
| (11,800 | ) |
| Loss before income taxes | |
| (97,766 | ) | |
| (73,789 | ) |
| Income tax benefit | |
| 29,833 | | |
| 13,334 | |
| Net loss and comprehensive loss including noncontrolling interests | |
| (67,933 | ) | |
| (60,455 | ) |
| Less: net income and comprehensive income attributable to noncontrolling interests | |
| 15,151 | | |
| 5,208 | |
| Net loss and comprehensive loss attributable to Antero Resources Corporation | |
$ | (83,084 | ) | |
| (65,663 | ) |
| | |
| | | |
| | |
| Loss per common share—basic | |
$ | (0.28 | ) | |
| (0.21 | ) |
| Loss per common share—diluted | |
$ | (0.28 | ) | |
| (0.21 | ) |
| | |
| | | |
| | |
| Weighted average number of common shares outstanding: | |
| | | |
| | |
| Basic | |
| 300,141 | | |
| 310,806 | |
| Diluted | |
| 300,141 | | |
| 310,806 | |
ANTERO RESOURCES CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| | |
| | |
| |
| | |
Six Months Ended June 30, | |
| | |
2023 | | |
2024 | |
| Cash flows provided by (used in) operating activities: | |
| | | |
| | |
| Net income (loss) including noncontrolling interests | |
$ | 193,269 | | |
| (12,168 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |
| | | |
| | |
| Depletion, depreciation, amortization and accretion | |
| 341,070 | | |
| 345,146 | |
| Impairments | |
| 31,270 | | |
| 5,503 | |
| Commodity derivative fair value gains | |
| (134,476 | ) | |
| (3,861 | ) |
| Gains (losses) on settled commodity derivatives | |
| (10,787 | ) | |
| 7,262 | |
| Payments for derivative monetizations | |
| (202,339 | ) | |
| — | |
| Deferred income tax expense (benefit) | |
| 32,288 | | |
| (3,442 | ) |
| Equity-based compensation expense | |
| 26,530 | | |
| 33,228 | |
| Equity in earnings of unconsolidated affiliate | |
| (36,779 | ) | |
| (44,228 | ) |
| Dividends of earnings from unconsolidated affiliate | |
| 62,569 | | |
| 62,569 | |
| Amortization of deferred revenue | |
| (15,151 | ) | |
| (13,477 | ) |
| Amortization of debt issuance costs and other | |
| 1,732 | | |
| 1,328 | |
| Settlement of asset retirement obligations | |
| (633 | ) | |
| (1,680 | ) |
| Contract termination and loss contingency | |
| — | | |
| 3,006 | |
| Loss (gain) on sale of assets | |
| (311 | ) | |
| 170 | |
| Loss on convertible note inducement | |
| 86 | | |
| — | |
| Changes in current assets and liabilities: | |
| | | |
| | |
| Accounts receivable | |
| (1,399 | ) | |
| 19,067 | |
| Accrued revenue | |
| 384,245 | | |
| 38,354 | |
| Prepaid expenses and other current assets | |
| 21,294 | | |
| 6,547 | |
| Accounts payable including related parties | |
| 12,701 | | |
| 6,616 | |
| Accrued liabilities | |
| (102,668 | ) | |
| (14,830 | ) |
| Revenue distributions payable | |
| (108,723 | ) | |
| (32,406 | ) |
| Other current liabilities | |
| 5,377 | | |
| 2,405 | |
| Net cash provided by operating activities | |
| 499,165 | | |
| 405,109 | |
| Cash flows provided by (used in) investing activities: | |
| | | |
| | |
| Additions to unproved properties | |
| (110,447 | ) | |
| (43,571 | ) |
| Drilling and completion costs | |
| (517,591 | ) | |
| (362,228 | ) |
| Additions to other property and equipment | |
| (9,058 | ) | |
| (9,035 | ) |
| Proceeds from asset sales | |
| 311 | | |
| 418 | |
| Change in other assets | |
| (1,255 | ) | |
| 291 | |
| Net cash used in investing activities | |
| (638,040 | ) | |
| (414,125 | ) |
| Cash flows provided by (used in) financing activities: | |
| | | |
| | |
| Repurchases of common stock | |
| (75,356 | ) | |
| — | |
| Borrowings on Credit Facility | |
| 2,533,300 | | |
| 1,950,000 | |
| Repayments on Credit Facility | |
| (2,208,200 | ) | |
| (1,871,200 | ) |
| Convertible note inducement | |
| (86 | ) | |
| — | |
| Distributions to noncontrolling interests in Martica Holdings LLC | |
| (83,084 | ) | |
| (42,899 | ) |
| Employee tax withholding for settlement of equity-based compensation awards | |
| (27,357 | ) | |
| (26,355 | ) |
| Other | |
| (342 | ) | |
| (530 | ) |
| Net cash provided by financing activities | |
| 138,875 | | |
| 9,016 | |
| Net increase in cash and cash equivalents | |
| — | | |
| — | |
| Cash and cash equivalents, beginning of period | |
| — | | |
| — | |
| Cash and cash equivalents, end of period | |
$ | — | | |
| — | |
| | |
| | | |
| | |
| Supplemental disclosure of cash flow information: | |
| | | |
| | |
| Cash paid during the period for interest | |
$ | 51,927 | | |
| 63,512 | |
| Decrease in accounts payable and accrued liabilities for additions to property and equipment | |
$ | (8,353 | ) | |
| (2,967 | ) |
The following table sets forth selected financial data for the three
months ended June 30, 2023 and 2024:
| | |
(Unaudited) | | |
| | |
| |
| | |
Three Months Ended | | |
Amount of | | |
| |
| | |
June 30, | | |
Increase | | |
Percent | |
| | |
2023 | | |
2024 | | |
(Decrease) | | |
Change | |
| Revenue: | |
| | |
| | |
| | |
| |
| Natural gas sales | |
$ | 437,130 | | |
| 374,568 | | |
| (62,562 | ) | |
| (14 | )% |
| Natural gas liquids sales | |
| 397,733 | | |
| 489,191 | | |
| 91,458 | | |
| 23 | % |
| Oil sales | |
| 57,962 | | |
| 63,458 | | |
| 5,496 | | |
| 9 | % |
| Commodity derivative fair value gains (losses) | |
| 8,284 | | |
| (5,585 | ) | |
| (13,869 | ) | |
| * | |
| Marketing | |
| 43,793 | | |
| 49,418 | | |
| 5,625 | | |
| 13 | % |
| Amortization of deferred revenue, VPP | |
| 7,618 | | |
| 6,739 | | |
| (879 | ) | |
| (12 | )% |
| Other revenue and income | |
| 785 | | |
| 865 | | |
| 80 | | |
| 10 | % |
| Total revenue | |
| 953,305 | | |
| 978,654 | | |
| 25,349 | | |
| 3 | % |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Lease operating | |
| 28,748 | | |
| 29,759 | | |
| 1,011 | | |
| 4 | % |
| Gathering and compression | |
| 211,691 | | |
| 222,139 | | |
| 10,448 | | |
| 5 | % |
| Processing | |
| 262,642 | | |
| 269,985 | | |
| 7,343 | | |
| 3 | % |
| Transportation | |
| 189,642 | | |
| 171,318 | | |
| (18,324 | ) | |
| (10 | )% |
| Production and ad valorem taxes | |
| 36,158 | | |
| 41,933 | | |
| 5,775 | | |
| 16 | % |
| Marketing | |
| 66,175 | | |
| 70,807 | | |
| 4,632 | | |
| 7 | % |
| Exploration | |
| 743 | | |
| 643 | | |
| (100 | ) | |
| (13 | )% |
| General and administrative (excluding equity-based compensation) | |
| 40,389 | | |
| 42,277 | | |
| 1,888 | | |
| 5 | % |
| Equity-based compensation | |
| 13,512 | | |
| 17,151 | | |
| 3,639 | | |
| 27 | % |
| Depletion, depreciation and amortization | |
| 171,406 | | |
| 170,536 | | |
| (870 | ) | |
| (1 | )% |
| Impairment of property and equipment | |
| 15,710 | | |
| 313 | | |
| (15,397 | ) | |
| (98 | )% |
| Accretion of asset retirement obligations | |
| 1,204 | | |
| 780 | | |
| (424 | ) | |
| (35 | )% |
| Contract termination and loss contingency | |
| 4,441 | | |
| 3,009 | | |
| (1,432 | ) | |
| (32 | )% |
| Gain on sale of assets | |
| (220 | ) | |
| (18 | ) | |
| 202 | | |
| (92 | )% |
| Other operating expense | |
| — | | |
| 11 | | |
| 11 | | |
| * | |
| Total operating expenses | |
| 1,042,241 | | |
| 1,040,643 | | |
| (1,598 | ) | |
| * | |
| Operating loss | |
| (88,936 | ) | |
| (61,989 | ) | |
| 26,947 | | |
| (30 | )% |
| Other earnings (expenses): | |
| | | |
| | | |
| | | |
| | |
| Interest expense, net | |
| (27,928 | ) | |
| (32,681 | ) | |
| (4,753 | ) | |
| 17 | % |
| Equity in earnings of unconsolidated affiliate | |
| 19,098 | | |
| 20,881 | | |
| 1,783 | | |
| 9 | % |
| Total other expense | |
| (8,830 | ) | |
| (11,800 | ) | |
| (2,970 | ) | |
| 34 | % |
| Loss before income taxes | |
| (97,766 | ) | |
| (73,789 | ) | |
| 23,977 | | |
| (25 | )% |
| Income tax benefit | |
| 29,833 | | |
| 13,334 | | |
| (16,499 | ) | |
| (55 | )% |
| Net loss and comprehensive loss including noncontrolling interests | |
| (67,933 | ) | |
| (60,455 | ) | |
| 7,478 | | |
| (11 | )% |
| Less: net income and comprehensive income attributable to noncontrolling interests | |
| 15,151 | | |
| 5,208 | | |
| (9,943 | ) | |
| (66 | )% |
| Net loss and comprehensive loss attributable to Antero Resources Corporation | |
$ | (83,084 | ) | |
| (65,663 | ) | |
| 17,421 | | |
| (21 | )% |
| | |
| | | |
| | | |
| | | |
| | |
| Adjusted EBITDAX | |
$ | 113,101 | | |
| 151,402 | | |
| 38,301 | | |
| 34 | % |
* Not meaningful
The following table sets forth selected financial data for the three
months ended June 30, 2023 and 2024:
| | |
Three Months Ended | | |
Amount of | | |
| |
| | |
June 30, | | |
Increase | | |
Percent | |
| | |
2023 | | |
2024 | | |
(Decrease) | | |
Change | |
| Production data (1) (2): | |
| | | |
| | | |
| | | |
| | |
| Natural gas (Bcf) | |
| 204 | | |
| 196 | | |
| (8 | ) | |
| (4 | )% |
| C2 Ethane (MBbl) | |
| 6,414 | | |
| 7,811 | | |
| 1,397 | | |
| 22 | % |
| C3+ NGLs (MBbl) | |
| 10,175 | | |
| 10,514 | | |
| 339 | | |
| 3 | % |
| Oil (MBbl) | |
| 971 | | |
| 952 | | |
| (19 | ) | |
| (2 | )% |
| Combined (Bcfe) | |
| 309 | | |
| 311 | | |
| 2 | | |
| 1 | % |
| Daily combined production (MMcfe/d) | |
| 3,400 | | |
| 3,420 | | |
| 20 | | |
| 1 | % |
| Average prices before effects of derivative settlements (3): | |
| | | |
| | | |
| | | |
| | |
| Natural gas (per Mcf) | |
$ | 2.14 | | |
| 1.92 | | |
| (0.22 | ) | |
| (10 | )% |
| C2 Ethane (per Bbl) (4) | |
$ | 7.82 | | |
| 8.42 | | |
| 0.60 | | |
| 8 | % |
| C3+ NGLs (per Bbl) | |
$ | 34.16 | | |
| 40.27 | | |
| 6.11 | | |
| 18 | % |
| Oil (per Bbl) | |
$ | 59.69 | | |
| 66.66 | | |
| 6.97 | | |
| 12 | % |
| Weighted Average Combined (per Mcfe) | |
$ | 2.89 | | |
| 2.98 | | |
| 0.09 | | |
| 3 | % |
| Average realized prices after effects of derivative settlements (3): | |
| | | |
| | | |
| | | |
| | |
| Natural gas (per Mcf) | |
$ | 2.16 | | |
| 1.94 | | |
| (0.22 | ) | |
| (10 | )% |
| C2 Ethane (per Bbl) (4) | |
$ | 7.82 | | |
| 8.42 | | |
| 0.60 | | |
| 8 | % |
| C3+ NGLs (per Bbl) | |
$ | 34.11 | | |
| 40.44 | | |
| 6.33 | | |
| 19 | % |
| Oil (per Bbl) | |
$ | 59.40 | | |
| 66.50 | | |
| 7.10 | | |
| 12 | % |
| Weighted Average Combined (per Mcfe) | |
$ | 2.90 | | |
| 3.00 | | |
| 0.10 | | |
| 3 | % |
| Average costs (per Mcfe): | |
| | | |
| | | |
| | | |
| | |
| Lease operating | |
$ | 0.09 | | |
| 0.10 | | |
| 0.01 | | |
| 11 | % |
| Gathering and compression | |
$ | 0.68 | | |
| 0.71 | | |
| 0.03 | | |
| 4 | % |
| Processing | |
$ | 0.85 | | |
| 0.87 | | |
| 0.02 | | |
| 2 | % |
| Transportation | |
$ | 0.61 | | |
| 0.55 | | |
| (0.06 | ) | |
| (10 | )% |
| Production and ad valorem taxes | |
$ | 0.12 | | |
| 0.13 | | |
| 0.01 | | |
| 8 | % |
| Marketing expense, net | |
$ | 0.07 | | |
| 0.07 | | |
| — | | |
| * | |
| General and administrative (excluding equity-based compensation) | |
$ | 0.13 | | |
| 0.14 | | |
| 0.01 | | |
| 8 | % |
| Depletion, depreciation, amortization and accretion | |
$ | 0.56 | | |
| 0.55 | | |
| (0.01 | ) | |
| (2 | )% |
* Not meaningful
| (1) | Production volumes exclude volumes related to VPP transaction. |
| (2) | Oil and NGLs production was converted at 6 Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate
of the equivalent energy content of the products and may not reflect their relative economic value. |
| (3) | Average sales prices shown in the table reflect both the before and after effects of the Company’s settled commodity derivatives.
The calculation of such after effects includes gains on settlements of commodity derivatives, which do not qualify for hedge accounting
because the Company does not designate or document them as hedges for accounting purposes. Oil and NGLs production was converted at 6
Mcf per Bbl to calculate total Bcfe production and per Mcfe amounts. This ratio is an estimate of the equivalent energy content of the
products and does not necessarily reflect their relative economic value. |
| (4) | The average realized price for the three months ended June 30, 2023 and 2024 includes $1 million and $0.1 million, respectively,
of proceeds related to a take-or-pay contract. Excluding the effect of these proceeds, the average realized price for ethane before and
after the effects of derivatives for the three months ended June 30, 2023 and 2024 would have been $7.65 per Bbl and $8.41 per Bbl,
respectively. |
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Antero Resources (NYSE:AR)
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From Nov 2024 to Dec 2024
Antero Resources (NYSE:AR)
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From Dec 2023 to Dec 2024
