Antero Resources (AR) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 production of 3.9 Bcfe/d, up 13% year-over-year, driven by the HG acquisition, operational excellence during Winter Storm Fern, and strategic asset integration.

• Closed the $2.8 billion HG acquisition, adding nearly 400,000 net acres and 400 drilling locations, and completed the $800 million Utica Shale divestiture, streamlining the asset base and funding debt repayment.

• Net income attributable to shareholders rose to $535 million for Q1 2026, up from $208 million in Q1 2025, with revenue increasing 44% to $1.95 billion, driven by higher natural gas prices and increased production.

• Realized significant price premiums for natural gas and NGLs, with strong international exposure and export growth.

• Integration of HG assets is ahead of schedule, with the first HG pad delivering strong returns and high net royalty interests.

Financial highlights

• Adjusted Free Cash Flow reached $657 million, the second highest in company history, surpassing acquisition funding targets by $250 million.

• Total revenue for Q1 2026 was $1.95 billion, up 44% from $1.35 billion in Q1 2025.

• Adjusted EBITDAX was $723 million, a 32% increase year-over-year, with net cash provided by operating activities at $859 million.

• Net debt as of March 31, 2026, was $2.66 billion, up from $1.19 billion at year-end 2025, primarily due to the HG acquisition.

• Operating income increased 169% to $729 million from $271 million year-over-year.

Outlook and guidance

• 2026 production guidance set at 4.1 Bcfe/d, reflecting 20% year-over-year growth, with over 60% of 2026 natural gas volumes hedged and one-third hedged for 2027.

• Cash production expense guidance reduced to $2.25–$2.35/Mcfe, with further reductions expected from HG asset integration.

• CapEx guidance for 2026 is $1.0–$1.3 billion, with plans to complete 70–80 net horizontal wells in the Appalachian Basin.

• Leverage target of 1x expected by mid-2026, six months ahead of prior expectations.

• Management expects operating cash flow and available credit to cover all obligations and capital needs for at least the next 12 months.