Antero Resources (AR) investor relations material

Executive summary

• Record Q3 production of 4.234 Bcfe/d, up 23% YoY; cash production costs fell 16% to $2.05/Mcfe and unhedged Adjusted EBITDAX margin rose 27% to $1.28/Mcfe.

• Adjusted EBITDAX reached $633.9 million, up 99% YoY; Adjusted Free Cash Flow was $215.3 million, up from $90.9 million.

• Revenue was $1.563 billion and net income attributable to shareholders was $367 million; commodity derivative gains and a midstream litigation gain influenced results.

Financial highlights

• Revenue was $1.563 billion, up 29% YoY; operating income was $392 million versus $118 million, and diluted EPS was $1.19 versus $0.24.

• Adjusted EBITDAX was $633.9 million versus $318.2 million; Adjusted Free Cash Flow was $215.3 million versus $90.9 million.

• Net cash provided by operating activities was $575 million; Q3 revenue included $189 million of commodity derivative fair-value gains and a $377 million midstream litigation gain.

• Natural gas sales were $703 million, NGL sales $580 million and oil sales $45 million; Henry Hub averaged $2.95/Mcf versus $3.07/Mcf YoY.

• Nine-month revenue was $5.07 billion and net income attributable to shareholders was $1.18 billion; operating cash flow was $1.87 billion.

Outlook and guidance

• Q4 production guidance is 4.3 Bcfe/d, including 15–20 Bcfe of expected curtailments; cash production expense is guided at $2.10–$2.20/Mcfe.

• Q4 realized natural gas pricing is expected at a $0.15–$0.25/Mcf discount to NYMEX; D&C capital guidance is $325–$350 million.

• 2027 production growth is expected to be high single digits versus average 2026 production; the planned program remains 3 rigs and 2 completion crews.

• The margin program targets $300 million by year-end 2028, with $140 million expected by mid-2027; management sees potential to double the target beyond 2028.

• Q4 free cash flow is expected to be roughly double Q3 at indicated NGL prices; 2027 EBITDA was projected above $3 billion at then-current prices.