DENVER, April 26,
2023 /PRNewswire/ -- Antero Resources Corporation
(NYSE: AR) ("Antero Resources," "Antero," or the
"Company") today announced its first quarter 2023 financial
and operating results. The relevant consolidated financial
statements are included in Antero Resources' Quarterly Report on
Form 10-Q for the quarter ended March
31, 2023.
First Quarter 2023 Highlights:
- Net production averaged 3.3 Bcfe/d, an increase of 3% year
over year
-
- Liquids production averaged 187 MBbl/d, an increase of 17%
from the year ago period
- Natural gas production averaged 2.2 Bcf/d, or a decline of
3% from the year ago period
- Realized a pre-hedge natural gas equivalent price of
$4.13 per Mcfe, a $0.71 per Mcfe premium to NYMEX pricing
-
- Realized C3+ NGL price of $42.95 per barrel, an 8% increase from the prior
quarter
- Realized pre-hedge natural gas price of $3.45 per Mcf, a $0.03 per Mcf premium to NYMEX pricing
- Liquids product revenue contributed 45% of total product
revenue
- Net income was $213 million,
Adjusted Net Income was $156 million
(Non-GAAP)
- Adjusted EBITDAX was $414
million (Non-GAAP); net cash provided by operating
activities was $344 million
- Free Cash Flow was $174
million (Non-GAAP)
- Purchased $87 million of
shares
- Averaged 11 completion stages per day per completion crew
during the first quarter, an increase of 36% compared to the 2022
average
- Achieved new world record of 12,340 lateral feet drilled in
24 hours during the quarter
- Added the equivalent of more than 50 incremental drilling
locations in the core liquids Marcellus area through organic
leasing
- Net Debt to trailing last twelve month Adjusted EBITDAX was
0.5x (Non-GAAP)
Paul Rady, Chairman, CEO and
President of Antero Resources commented, "Our first quarter results
highlight the outstanding execution by our employees and the
strength of our asset base. Antero's consistent and repeatable
operating performance reflects the high quality acreage position
that we have built over the past decade. Our development program
remains focused on our liquids-rich acreage, which provided an
attractive pricing uplift in the quarter through the strength in
NGL prices. During the quarter our operations team achieved a
number of new company and industry drilling and completion records,
including completion stages per day and a world record of lateral
feet drilled in a 24-hour period. In addition, we are beginning to
see service costs rollover and a decline in costs for raw materials
such as tubulars, fuel and sand. This rollover in costs combined
with our efficiency gains point to lower overall maintenance
capital requirements in 2024."
Mr. Rady continued, "Antero is a uniquely positioned natural gas
producer due to our ability to access the growing demand in the LNG
Corridor through our firm transportation portfolio. Our balance
sheet is strong at just 0.5x leverage. We have a diverse product
mix as a top NGL producer in the U.S with more than twenty years of
core drilling inventory. These attributes help us reduce volatility
in our financial results and provided protection against the
pullback in natural gas prices during the quarter."
Michael Kennedy, CFO of Antero
Resources said, "Driven by our steadfast commitment to debt
reduction in recent years, we entered 2023 in the strongest
financial position in company history. During the first quarter we
returned 50% of our Free Cash Flow through our share repurchase
program. Since the beginning of our share repurchase program in the
first quarter of 2022, we have now purchased approximately
$1 billion of shares, or 10% of
shares outstanding. In addition, we used the pullback in natural
gas prices to opportunistically execute an early termination of our
2024 natural gas hedges, which gives us greater exposure to higher
strip prices in 2024. We also completed an early buyout of a firm
transportation commitment that was unutilized, reducing our cost
structure. Looking ahead, we are well positioned with nearly half
our projected revenue in 2023 being generated from liquids sales
while maintaining significant exposure to U.S. LNG growth."
For a discussion of the non-GAAP financial measures including
Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt
please see "Non-GAAP Financial Measures."
Free Cash Flow
During the first quarter, Free Cash Flow was $174 million.
|
|
Three Months
Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Net cash provided by
operating activities
|
|
$
|
565,673
|
|
|
343,902
|
|
Less: Net cash used in
investing activities
|
|
|
(215,117)
|
|
|
(350,804)
|
|
Plus: Payments for
derivative monetizations
|
|
|
—
|
|
|
202,339
|
|
Plus: Contract
termination
|
|
|
8
|
|
|
29,550
|
|
Less: Proceeds from
sale of assets, net
|
|
|
(195)
|
|
|
(91)
|
|
Less: Distributions to
non-controlling interests in Martica
|
|
|
(35,757)
|
|
|
(51,339)
|
|
Free Cash
Flow
|
|
$
|
314,612
|
|
|
173,557
|
|
Changes in Working
Capital (1)
|
|
|
150,474
|
|
|
(149,765)
|
|
Free Cash Flow
before Changes in Working Capital
|
|
$
|
465,086
|
|
|
23,792
|
|
|
|
(1)
|
Working capital adjustments in the first quarter of
2022 include a $136.0 million net decrease in current assets and
current liabilities and a $14.5 million decrease in accounts
payable and accrued liabilities for additions to property and
equipment. Working capital adjustments in the first quarter
of 2023 include a $159.7 million net increase in current assets and
liabilities and a $9.9 million decrease in accounts payable and
accrued liabilities for additions to property and
equipment.
|
Return of Capital Program
Antero purchased 3 million shares for $87
million during the first quarter of 2023. Since the
inception of the share repurchase program, Antero has purchased
30.4 million shares for approximately $1
billion, or 10% of common shares outstanding. The Company
currently has approximately $1.1
billion of remaining capacity under the share repurchase
program.
|
|
|
Program to
Date
1Q22 –
1Q23
|
|
|
First
Quarter
2023
|
|
Total shares purchased
(MM) (1)
|
|
|
30.4
|
|
|
3.0
|
|
Share purchases
($MM)
|
|
|
1,027
|
|
|
87
|
|
% of common shares
outstanding (2)
|
|
|
10 %
|
|
|
1 %
|
|
|
|
(1)
|
The total shares
purchased to date and three months ended March 31, 2022 and 2023
includes 2.5 million and 0.4 million shares of our common stock,
respectively, related to satisfying tax withholding obligations
incurred upon the vesting of equity awards held by our
employees.
|
(2)
|
Shares outstanding
as of December 31, 2021.
|
Early Hedge Settlement
In the first quarter of 2023, Antero executed an early
settlement of its 2024 natural gas swaptions that averaged
$2.77 per Mcf, for approximately
$200 million. The Company unwound the
2024 swaptions to gain full exposure to the higher expected strip
prices in 2024. Antero believes that the lower natural gas strip in
2023 will result in reduced industry drilling and completions,
which will provide support to higher natural gas prices ahead of
the expected LNG export demand growth beginning in 2024.
Firm Transportation Buyout
In the first quarter of 2023, Antero terminated a firm
transportation commitment related to an unutilized pipeline to
local Appalachian markets for $24
million. The termination of this contract was at a
discounted value to commitments through 2025 and reduces net
marketing expense by $13 million
annually.
Borrowing Base Redetermination
The borrowing base under Antero Resources' credit facility was
reaffirmed at $3.5 billion in April
of 2023. Lender commitments under the credit facility remained at
$1.5 billion.
First Quarter 2023 Financial Results
Net daily natural gas equivalent production in the first quarter
averaged 3.3 Bcfe/d, including 187 MBbl/d of liquids.
Total production increased 3% from the first quarter of 2022.
Compared to the year ago period, natural gas volumes decreased 3%,
which was more than offset by a 17% increase in liquids volumes.
Due to Antero's development focus on its liquids-rich Marcellus
acreage, all liquids components, oil, C3+ NGLs, and ethane
increased year over year.
Antero's average realized natural gas price before hedging was
$3.45 per Mcf, a
$0.03 per Mcf premium to the
average first-of-month ("FOM") NYMEX Henry Hub price. Antero
typically sells approximately 75% of its natural gas at
first-of-month pricing and the remaining 25% at gas daily pricing.
Gas daily prices averaged approximately 26% below FOM prices during
the first quarter, resulting in the compressed natural gas price
premium relative to Henry Hub. For full year 2023, the Company
expects natural gas realizations to be at a premium to NYMEX in the
range of $0.05 to $0.15 per Mcf compared to $0.10 to $0.20 per
Mcf in prior guidance. The decrease is driven by an expected lower
BTU uplift due to lower 2023 natural gas strip prices.
The following table details average net production and average
realized prices for the three months ended March 31, 2023:
|
|
Three Months Ended
March 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
Combined
|
|
|
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
|
|
(MMcf/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(MMcfe/d)
|
|
Average Net
Production
|
|
|
2,152
|
|
|
9,233
|
|
|
109,522
|
|
|
68,238
|
|
|
3,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
Average Realized
Prices
|
|
($/Mcf)
|
|
($/Bbl)
|
|
($/Bbl)
|
|
($/Bbl)
|
|
($/Mcfe)
|
|
Average realized prices
before settled derivatives
|
|
$
|
3.45
|
|
$
|
62.35
|
|
$
|
42.95
|
|
$
|
11.73
|
|
$
|
4.13
|
|
NYMEX average price
(1)
|
|
$
|
3.42
|
|
$
|
76.13
|
|
|
|
|
|
|
|
$
|
3.42
|
|
Premium / (Discount) to
NYMEX
|
|
$
|
0.03
|
|
$
|
(13.78)
|
|
|
|
|
|
|
|
$
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settled commodity
derivatives (2)
|
|
$
|
(0.07)
|
|
$
|
(0.45)
|
|
$
|
(0.06)
|
|
$
|
—
|
|
$
|
(0.05)
|
|
Average realized prices
after settled derivatives
|
|
$
|
3.38
|
|
$
|
61.90
|
|
$
|
42.89
|
|
$
|
11.73
|
|
$
|
4.08
|
|
Premium / (Discount) to
NYMEX
|
|
$
|
(0.04)
|
|
$
|
(14.23)
|
|
|
|
|
|
|
|
$
|
0.66
|
|
|
|
(1)
|
The average index
prices for natural gas and oil represent the New York Mercantile
Exchange average first-of-month price and the Energy Information
Administration 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 all oil and C3+ NGL
derivative instruments during the three months ended March 31,
2023.
|
Antero's average realized C3+ NGL price was $42.95 per barrel. Antero shipped 40% of its
total C3+ NGL net production on Mariner East 2 for export and
realized a $0.07 per gallon premium
to Mont Belvieu pricing on these volumes at Marcus Hook, PA. Antero sold the remaining 60%
of C3+ NGL net production at a $0.03
per gallon discount to Mont Belvieu pricing at Hopedale, OH. The resulting blended price on
110 MBbl/d of net C3+ NGL production was a $0.01 per gallon premium to Mont Belvieu
pricing.
|
Three Months Ended
March 31, 2023
|
|
|
Pricing
Point
|
|
Net C3+
NGL
Production
(Bbl/d)
|
|
% by
Destination
|
|
Premium
(Discount)
To Mont Belvieu
($/Gal)
|
Propane / Butane
exported on ME2
|
Marcus Hook,
PA
|
|
44,204
|
|
40 %
|
|
$0.07
|
Remaining C3+ NGL
volume
|
Hopedale, OH
|
|
65,318
|
|
60 %
|
|
($0.03)
|
Total C3+ NGLs/Blended
Premium
|
|
|
|
109,522
|
|
100 %
|
|
$0.01
|
All-in cash expense, which includes lease operating, gathering,
compression, processing, and transportation, production and ad
valorem taxes was $2.46 per Mcfe in
the first quarter, a 6% increase compared to $2.33 per Mcfe average during the first quarter
of 2022. The increase was due primarily to higher processing costs
related to an annual CPI-based adjustment. Net marketing expense
was $0.08 per Mcfe in the first
quarter, a decrease from $0.10 per
Mcfe during the first quarter of 2022. The decrease in net
marketing expense was due to reduced firm transportation
commitments between periods.
First Quarter 2023 Capital Investment
Antero's accrued drilling and completion capital expenditures
for the three months ended March 31,
2023, were $267 million.
During the first quarter, Antero achieved a company record of 16
completion stages for a single completion crew in a 24-hour period
and averaged 11 completion stages per day per completion crew for
the quarter. The Company completed 1,323 of 4,209 stages, or 31%,
of its 2023 budgeted completion stages during the first quarter.
The Company continues to forecast drilling and completion capital
in 2023 to be in the range of $875 to
$925 million.
In addition to capital invested in drilling and completion
activities, the Company invested $72
million in land during the first quarter. As previously
communicated, Antero's first quarter land spend is expected to be
approximately 50% of the 2023 guidance of $150 million. During the quarter, Antero
added approximately 12,000 net acres, representing over 50
incremental drilling locations at an average cost of $1 million per location. Antero's organic leasing
efforts focus on acreage in close proximity to its current
development plan. These incremental locations nearly offset
Antero's maintenance capital plan that requires an average of 60 to
65 wells per year. In addition to the incremental locations, Antero
also acquired minerals in its Marcellus area of development to
increase its net revenue interest in future drilling locations.
These efforts allow Antero to increase the average lateral length
in its development program, which is expected to average 14,500
feet for wells drilled in 2023, or 7% longer than the 2022 average.
The Company believes this organic leasing program is the most cost
efficient approach to lengthening its core inventory position.
Note: Any 2023 guidance items not discussed in this release are
unchanged from previously stated guidance.
Commodity Derivative Positions
Antero did not enter into any new natural gas, NGL or oil hedges
during the first quarter of 2023.
Please see Antero's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2023, 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, April 27, 2023 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, May 4, 2023 at 9:00 am MT at 877-660-6853 (U.S.) or 201-612-7415
(International) using the conference ID: 13734438. 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, May 4, 2023 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
Adjusted Net Income as set forth in this release represents net
income, adjusted for certain items. Antero believes that Adjusted
Net Income 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 is not a measure of
financial performance under GAAP and should not be considered in
isolation or as a substitute for net income as an indicator of
financial performance. The GAAP measure most directly comparable to
Adjusted Net Income is net income. The following table reconciles
net income to Adjusted Net Income (in thousands):
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(156,419)
|
|
|
213,431
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(18,277)
|
|
|
47,771
|
|
Unrealized commodity
derivative (gains) losses
|
|
|
725,994
|
|
|
(342,799)
|
|
Payments for
derivative monetizations
|
|
|
—
|
|
|
202,339
|
|
Amortization of
deferred revenue, VPP
|
|
|
(9,272)
|
|
|
(7,533)
|
|
Loss (gain) on sale of
assets
|
|
|
1,786
|
|
|
(91)
|
|
Impairment of property
and equipment
|
|
|
22,462
|
|
|
15,560
|
|
Equity-based
compensation
|
|
|
4,649
|
|
|
13,018
|
|
Loss on early
extinguishment of debt
|
|
|
10,654
|
|
|
—
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
86
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(25,178)
|
|
|
(17,681)
|
|
Contract
termination
|
|
|
8
|
|
|
29,550
|
|
Tax effect of
reconciling items (1)
|
|
|
(169,716)
|
|
|
23,115
|
|
|
|
|
386,691
|
|
|
176,766
|
|
Martica adjustments
(2)
|
|
|
(26,430)
|
|
|
(20,423)
|
|
Adjusted Net
Income
|
|
$
|
360,261
|
|
|
156,343
|
|
|
|
|
|
|
|
|
|
Diluted Weighted
Average Shares Outstanding
|
|
|
314,081
|
|
|
311,846
|
|
|
(1) Deferred
taxes were approximately 23% and 21% for 2022 and 2023,
respectively.
|
(2) Adjustments
reflect noncontrolling interest in Martica not otherwise adjusted
in amounts above.
|
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,
|
|
March 31,
|
|
|
|
2022
|
|
2023
|
|
Credit
Facility
|
|
$
|
34,800
|
|
|
180,100
|
|
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
|
|
|
56,932
|
|
|
39,426
|
|
Unamortized debt
issuance costs
|
|
|
(12,241)
|
|
|
(11,465)
|
|
Total long-term
debt
|
|
$
|
1,183,476
|
|
|
1,312,046
|
|
Less: Cash and cash
equivalents
|
|
|
—
|
|
|
—
|
|
Net Debt
|
|
$
|
1,183,476
|
|
|
1,312,046
|
|
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 early contract termination or
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 return of capital. 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
consolidated statements of cash flows, in each case, for the three
months ended March 31, 2022 and 2023.
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
March 31,
|
|
|
2022
|
|
2023
|
Reconciliation of net income (loss) to Adjusted
EBITDAX:
|
|
|
|
|
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(156,419)
|
|
|
213,431
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(18,277)
|
|
|
47,771
|
Unrealized commodity
derivative (gains) losses
|
|
|
725,994
|
|
|
(342,799)
|
Payments for
derivative monetizations
|
|
|
—
|
|
|
202,339
|
Amortization of
deferred revenue, VPP
|
|
|
(9,272)
|
|
|
(7,533)
|
Loss (gain) on sale of
assets
|
|
|
1,786
|
|
|
(91)
|
Interest expense,
net
|
|
|
37,713
|
|
|
25,700
|
Loss on early
extinguishment of debt
|
|
|
10,654
|
|
|
—
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
86
|
Income tax expense
(benefit)
|
|
|
(53,092)
|
|
|
62,183
|
Depletion,
depreciation, amortization and accretion
|
|
|
170,832
|
|
|
168,460
|
Impairment of property
and equipment
|
|
|
22,462
|
|
|
15,560
|
Exploration
expenses
|
|
|
898
|
|
|
754
|
Equity-based
compensation expense
|
|
|
4,649
|
|
|
13,018
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(25,178)
|
|
|
(17,681)
|
Dividends from
unconsolidated affiliate
|
|
|
31,285
|
|
|
31,285
|
Contract termination,
transaction expense and other
|
|
|
48
|
|
|
32,418
|
|
|
|
744,083
|
|
|
444,901
|
Martica related
adjustments (1)
|
|
|
(37,201)
|
|
|
(31,132)
|
Adjusted
EBITDAX
|
|
$
|
706,882
|
|
|
413,769
|
|
|
|
|
|
|
|
Reconciliation of our Adjusted EBITDAX to net cash
provided by operating activities:
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
706,882
|
|
|
413,769
|
Martica related
adjustments (1)
|
|
|
37,201
|
|
|
31,132
|
Interest expense,
net
|
|
|
(37,713)
|
|
|
(25,700)
|
Amortization of debt
issuance costs, debt discount, debt premium and other
|
|
|
1,451
|
|
|
871
|
Exploration
expenses
|
|
|
(898)
|
|
|
(754)
|
Changes in current
assets and liabilities
|
|
|
(136,025)
|
|
|
159,683
|
Contract termination,
transaction expense and other
|
|
|
(48)
|
|
|
(32,418)
|
Payments for
derivative monetizations
|
|
|
—
|
|
|
(202,339)
|
Other items
|
|
|
(5,177)
|
|
|
(342)
|
Net cash provided by
operating activities
|
|
$
|
565,673
|
|
|
343,902
|
|
|
Twelve
|
|
|
Months Ended
|
|
|
March 31,
|
|
|
2023
|
Reconciliation of net income to Adjusted
EBITDAX:
|
|
|
|
Net income and
comprehensive income attributable to Antero Resources
Corporation
|
|
$
|
2,268,621
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
193,249
|
Unrealized commodity
derivative gains
|
|
|
(1,364,022)
|
Payments for
derivative monetizations
|
|
|
202,339
|
Amortization of
deferred revenue, VPP
|
|
|
(35,864)
|
Gain on sale of
assets
|
|
|
(1,406)
|
Interest expense,
net
|
|
|
113,359
|
Loss on early
extinguishment of debt
|
|
|
35,373
|
Loss on convertible
note inducement
|
|
|
255
|
Income tax
expense
|
|
|
563,967
|
Depletion,
depreciation, amortization, and accretion
|
|
|
682,855
|
Impairment of property
and equipment
|
|
|
142,829
|
Exploration
expense
|
|
|
3,507
|
Equity-based
compensation expense
|
|
|
43,812
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(64,830)
|
Dividends from
unconsolidated affiliate
|
|
|
125,138
|
Contract termination,
transaction expense and other
|
|
|
57,658
|
|
|
|
2,966,840
|
Martica related
adjustments (1)
|
|
|
(157,012)
|
Adjusted
EBITDAX
|
|
$
|
2,809,828
|
|
(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
March 31,
|
|
|
2022
|
|
2023
|
Drilling and completion
costs (cash basis)
|
|
$
|
184,557
|
|
|
273,154
|
Change in accrued
capital costs
|
|
|
(9,744)
|
|
|
(6,236)
|
Adjusted drilling and
completion costs (accrual basis)
|
|
$
|
174,813
|
|
|
266,918
|
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 (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, prospects, plans and objectives of
management, return of capital, expected results, future
commodity prices, future production targets, realizing potential
future fee rebates or reductions, 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, 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 disruption,
lack of availability of drilling and production equipment and
services 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 world health events,
(including the COVID-19 pandemic), cybersecurity risks, our ability
to achieve our greenhouse gas reduction targets 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' Quarterly
Report on Form 10-Q for the quarter ended March 31, 2023.
World record for lateral feet drilled in 24-hours is based on
information provided by Baker Hughes.
ANTERO RESOURCES
CORPORATION Condensed Consolidated Balance Sheets
(In thousands, except per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
March 31,
|
|
|
|
2022
|
|
2023
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
$
|
35,488
|
|
|
30,207
|
|
Accrued
revenue
|
|
|
707,685
|
|
|
379,337
|
|
Derivative
instruments
|
|
|
1,900
|
|
|
6,242
|
|
Prepaid expenses and
other current assets
|
|
|
42,452
|
|
|
21,856
|
|
Total current
assets
|
|
|
787,525
|
|
|
437,642
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
Oil and gas
properties, at cost (successful efforts method):
|
|
|
|
|
|
|
|
Unproved
properties
|
|
|
997,715
|
|
|
1,013,780
|
|
Proved
properties
|
|
|
13,234,777
|
|
|
13,450,257
|
|
Gathering systems and
facilities
|
|
|
5,802
|
|
|
5,882
|
|
Other property and
equipment
|
|
|
83,909
|
|
|
87,091
|
|
|
|
|
14,322,203
|
|
|
14,557,010
|
|
Less accumulated
depletion, depreciation and amortization
|
|
|
(4,683,399)
|
|
|
(4,771,093)
|
|
Property and
equipment, net
|
|
|
9,638,804
|
|
|
9,785,917
|
|
Operating leases
right-of-use assets
|
|
|
3,444,331
|
|
|
3,401,994
|
|
Derivative
instruments
|
|
|
9,844
|
|
|
9,825
|
|
Investment in
unconsolidated affiliate
|
|
|
220,429
|
|
|
219,515
|
|
Other assets
|
|
|
17,106
|
|
|
16,253
|
|
Total
assets
|
|
$
|
14,118,039
|
|
|
13,871,146
|
|
Liabilities and
Equity
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
77,543
|
|
|
83,685
|
|
Accounts payable,
related parties
|
|
|
80,708
|
|
|
99,784
|
|
Accrued
liabilities
|
|
|
461,788
|
|
|
318,084
|
|
Revenue distributions
payable
|
|
|
468,210
|
|
|
381,880
|
|
Derivative
instruments
|
|
|
97,765
|
|
|
28,716
|
|
Short-term lease
liabilities
|
|
|
556,636
|
|
|
553,532
|
|
Deferred revenue,
VPP
|
|
|
30,552
|
|
|
29,757
|
|
Other current
liabilities
|
|
|
1,707
|
|
|
2,103
|
|
Total current
liabilities
|
|
|
1,774,909
|
|
|
1,497,541
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
1,183,476
|
|
|
1,312,046
|
|
Deferred income tax
liability, net
|
|
|
759,861
|
|
|
822,010
|
|
Derivative
instruments
|
|
|
345,280
|
|
|
75,854
|
|
Long-term lease
liabilities
|
|
|
2,889,854
|
|
|
2,851,571
|
|
Deferred revenue,
VPP
|
|
|
87,813
|
|
|
81,075
|
|
Other
liabilities
|
|
|
59,692
|
|
|
60,657
|
|
Total
liabilities
|
|
|
7,100,885
|
|
|
6,700,754
|
|
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; 297,393 shares issued and
297,359 outstanding as of
December 31, 2022, and 299,321 shares
issued and outstanding as of March 31, 2023
|
|
|
2,974
|
|
|
2,993
|
|
Additional paid-in
capital
|
|
|
5,838,848
|
|
|
5,806,031
|
|
Retained
earnings
|
|
|
913,896
|
|
|
1,102,340
|
|
Treasury stock, at
cost; 34 shares and zero shares as of December 31, 2022 and
March 31, 2023, respectively
|
|
|
(1,160)
|
|
|
—
|
|
Total stockholders'
equity
|
|
|
6,754,558
|
|
|
6,911,364
|
|
Noncontrolling
interests
|
|
|
262,596
|
|
|
259,028
|
|
Total
equity
|
|
|
7,017,154
|
|
|
7,170,392
|
|
Total liabilities and
equity
|
|
$
|
14,118,039
|
|
|
13,871,146
|
|
ANTERO RESOURCES
CORPORATION
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss) (Unaudited)
(In thousands, except per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Revenue and
other:
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
995,792
|
|
|
668,315
|
|
Natural gas liquids
sales
|
|
|
660,305
|
|
|
495,435
|
|
Oil sales
|
|
|
63,294
|
|
|
51,811
|
|
Commodity derivative
fair value gains (losses)
|
|
|
(1,011,380)
|
|
|
126,192
|
|
Marketing
|
|
|
69,038
|
|
|
58,529
|
|
Amortization of
deferred revenue, VPP
|
|
|
9,272
|
|
|
7,533
|
|
Other revenue and
income
|
|
|
519
|
|
|
533
|
|
Total
revenue
|
|
|
786,840
|
|
|
1,408,348
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
17,780
|
|
|
29,321
|
|
Gathering,
compression, processing and transportation
|
|
|
590,278
|
|
|
645,172
|
|
Production and ad
valorem taxes
|
|
|
52,808
|
|
|
49,276
|
|
Marketing
|
|
|
98,896
|
|
|
81,361
|
|
Exploration and mine
expenses
|
|
|
898
|
|
|
763
|
|
General and
administrative (including equity-based compensation expense of
$4,649 and
$13,018 in 2022 and 2023,
respectively)
|
|
|
35,691
|
|
|
57,261
|
|
Depletion,
depreciation and amortization
|
|
|
168,388
|
|
|
167,582
|
|
Impairment of property
and equipment
|
|
|
22,462
|
|
|
15,560
|
|
Accretion of asset
retirement obligations
|
|
|
2,444
|
|
|
878
|
|
Contract
termination
|
|
|
8
|
|
|
29,550
|
|
Loss (gain) on
sale of assets
|
|
|
1,786
|
|
|
(91)
|
|
Other operating
expense
|
|
|
—
|
|
|
225
|
|
Total operating
expenses
|
|
|
991,439
|
|
|
1,076,858
|
|
Operating income
(loss)
|
|
|
(204,599)
|
|
|
331,490
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(37,713)
|
|
|
(25,700)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
25,178
|
|
|
17,681
|
|
Loss on early
extinguishment of debt
|
|
|
(10,654)
|
|
|
—
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
(86)
|
|
Total other
expense
|
|
|
(23,189)
|
|
|
(8,105)
|
|
Income (loss) before
income taxes
|
|
|
(227,788)
|
|
|
323,385
|
|
Income tax benefit
(expense)
|
|
|
53,092
|
|
|
(62,183)
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(174,696)
|
|
|
261,202
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
(18,277)
|
|
|
47,771
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(156,419)
|
|
|
213,431
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share—basic
|
|
$
|
(0.50)
|
|
|
0.72
|
|
Income (loss) per
share—diluted
|
|
$
|
(0.50)
|
|
|
0.69
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
314,081
|
|
|
296,763
|
|
Diluted
|
|
|
314,081
|
|
|
311,846
|
|
ANTERO RESOURCES
CORPORATION Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2022
|
|
2023
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
including noncontrolling interests
|
|
$
|
(174,696)
|
|
|
261,202
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depletion,
depreciation, amortization and accretion
|
|
|
170,832
|
|
|
168,460
|
|
Impairments
|
|
|
22,462
|
|
|
15,560
|
|
Commodity derivative
fair value losses (gains)
|
|
|
1,011,380
|
|
|
(126,192)
|
|
Losses on settled
commodity derivatives
|
|
|
(285,386)
|
|
|
(14,268)
|
|
Payments for
derivative monetizations
|
|
|
—
|
|
|
(202,339)
|
|
Deferred income tax
expense (benefit)
|
|
|
(57,383)
|
|
|
62,149
|
|
Equity-based
compensation expense
|
|
|
4,649
|
|
|
13,018
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(25,178)
|
|
|
(17,681)
|
|
Dividends of earnings
from unconsolidated affiliate
|
|
|
31,285
|
|
|
31,285
|
|
Amortization of
deferred revenue
|
|
|
(9,272)
|
|
|
(7,533)
|
|
Amortization of debt
issuance costs, debt discount and debt premium
|
|
|
1,451
|
|
|
871
|
|
Settlement of asset
retirement obligations
|
|
|
(886)
|
|
|
(308)
|
|
Loss (gain) on sale of
assets
|
|
|
1,786
|
|
|
(91)
|
|
Loss on early
extinguishment of debt
|
|
|
10,654
|
|
|
—
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
86
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
33,244
|
|
|
5,282
|
|
Accrued
revenue
|
|
|
(69,442)
|
|
|
328,349
|
|
Other current
assets
|
|
|
(2,952)
|
|
|
20,596
|
|
Accounts payable
including related parties
|
|
|
37,664
|
|
|
34,604
|
|
Accrued
liabilities
|
|
|
(94,456)
|
|
|
(143,346)
|
|
Revenue distributions
payable
|
|
|
(36,526)
|
|
|
(86,331)
|
|
Other current
liabilities
|
|
|
(3,557)
|
|
|
529
|
|
Net cash provided by
operating activities
|
|
|
565,673
|
|
|
343,902
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to unproved
properties
|
|
|
(23,789)
|
|
|
(73,527)
|
|
Drilling and
completion costs
|
|
|
(184,557)
|
|
|
(273,154)
|
|
Additions to other
property and equipment
|
|
|
(7,530)
|
|
|
(4,631)
|
|
Proceeds from asset
sales
|
|
|
195
|
|
|
91
|
|
Change in other
assets
|
|
|
564
|
|
|
417
|
|
Net cash used in
investing activities
|
|
|
(215,117)
|
|
|
(350,804)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(100,045)
|
|
|
(75,356)
|
|
Repayment of senior
notes
|
|
|
(591,943)
|
|
|
—
|
|
Borrowings on bank
credit facilities, net
|
|
|
387,700
|
|
|
145,300
|
|
Convertible note
inducement
|
|
|
—
|
|
|
(86)
|
|
Distributions to
noncontrolling interests in Martica Holdings LLC
|
|
|
(35,757)
|
|
|
(51,339)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(10,377)
|
|
|
(11,459)
|
|
Other
|
|
|
(134)
|
|
|
(158)
|
|
Net cash provided by
(used in) financing activities
|
|
|
(350,556)
|
|
|
6,902
|
|
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
|
|
$
|
80,454
|
|
|
43,239
|
|
Decrease in accounts
payable and accrued liabilities for additions to property and
equipment
|
|
$
|
(14,449)
|
|
|
(9,918)
|
|
The following table sets forth selected financial data for the
three months ended March 31, 2022 and
2023:
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percent
|
|
|
|
2022
|
|
2023
|
|
(Decrease)
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
995,792
|
|
|
668,315
|
|
|
(327,477)
|
|
(33)
|
%
|
Natural gas liquids
sales
|
|
|
660,305
|
|
|
495,435
|
|
|
(164,870)
|
|
(25)
|
%
|
Oil sales
|
|
|
63,294
|
|
|
51,811
|
|
|
(11,483)
|
|
(18)
|
%
|
Commodity derivative
fair value gains (losses)
|
|
|
(1,011,380)
|
|
|
126,192
|
|
|
1,137,572
|
|
(112)
|
%
|
Marketing
|
|
|
69,038
|
|
|
58,529
|
|
|
(10,509)
|
|
(15)
|
%
|
Amortization of
deferred revenue, VPP
|
|
|
9,272
|
|
|
7,533
|
|
|
(1,739)
|
|
(19)
|
%
|
Other revenue and
income
|
|
|
519
|
|
|
533
|
|
|
14
|
|
3
|
%
|
Total
revenue
|
|
|
786,840
|
|
|
1,408,348
|
|
|
621,508
|
|
79
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
17,780
|
|
|
29,321
|
|
|
11,541
|
|
65
|
%
|
Gathering and
compression
|
|
|
201,462
|
|
|
212,604
|
|
|
11,142
|
|
6
|
%
|
Processing
|
|
|
190,601
|
|
|
237,268
|
|
|
46,667
|
|
24
|
%
|
Transportation
|
|
|
198,215
|
|
|
195,300
|
|
|
(2,915)
|
|
(1)
|
%
|
Production and ad
valorem taxes
|
|
|
52,808
|
|
|
49,276
|
|
|
(3,532)
|
|
(7)
|
%
|
Marketing
|
|
|
98,896
|
|
|
81,361
|
|
|
(17,535)
|
|
(18)
|
%
|
Exploration and mine
expenses
|
|
|
898
|
|
|
763
|
|
|
(135)
|
|
(15)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
|
31,042
|
|
|
44,243
|
|
|
13,201
|
|
43
|
%
|
Equity-based
compensation
|
|
|
4,649
|
|
|
13,018
|
|
|
8,369
|
|
180
|
%
|
Depletion,
depreciation and amortization
|
|
|
168,388
|
|
|
167,582
|
|
|
(806)
|
|
*
|
|
Impairment of property
and equipment
|
|
|
22,462
|
|
|
15,560
|
|
|
(6,902)
|
|
(31)
|
%
|
Accretion of asset
retirement obligations
|
|
|
2,444
|
|
|
878
|
|
|
(1,566)
|
|
(64)
|
%
|
Contract
termination
|
|
|
8
|
|
|
29,550
|
|
|
29,542
|
|
*
|
|
Loss (gain) on sale of
assets
|
|
|
1,786
|
|
|
(91)
|
|
|
(1,877)
|
|
*
|
|
Other operating
expense
|
|
|
—
|
|
|
225
|
|
|
225
|
|
*
|
|
Total operating
expenses
|
|
|
991,439
|
|
|
1,076,858
|
|
|
85,419
|
|
9
|
%
|
Operating income
(loss)
|
|
|
(204,599)
|
|
|
331,490
|
|
|
536,089
|
|
*
|
|
Other earnings
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(37,713)
|
|
|
(25,700)
|
|
|
12,013
|
|
(32)
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
25,178
|
|
|
17,681
|
|
|
(7,497)
|
|
(30)
|
%
|
Loss on early
extinguishment of debt
|
|
|
(10,654)
|
|
|
—
|
|
|
10,654
|
|
*
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
(86)
|
|
|
(86)
|
|
*
|
|
Total other
expense
|
|
|
(23,189)
|
|
|
(8,105)
|
|
|
15,084
|
|
(65)
|
%
|
Income (loss) before
income taxes
|
|
|
(227,788)
|
|
|
323,385
|
|
|
551,173
|
|
*
|
|
Income tax benefit
(expense)
|
|
|
53,092
|
|
|
(62,183)
|
|
|
(115,275)
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(174,696)
|
|
|
261,202
|
|
|
435,898
|
|
*
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling
interests
|
|
|
(18,277)
|
|
|
47,771
|
|
|
66,048
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero
Resources Corporation
|
|
$
|
(156,419)
|
|
|
213,431
|
|
|
369,850
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
706,882
|
|
|
413,769
|
|
|
(293,113)
|
|
(41)
|
%
|
The following table sets forth selected financial data for the
three months ended March 31, 2022 and
2023:
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percent
|
|
|
|
2022
|
|
2023
|
|
(Decrease)
|
|
Change
|
|
Production data
(1) (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
|
|
199
|
|
|
194
|
|
|
(5)
|
|
(3)
|
%
|
C2 Ethane
(MBbl)
|
|
|
4,005
|
|
|
6,141
|
|
|
2,136
|
|
53
|
%
|
C3+ NGLs
(MBbl)
|
|
|
9,638
|
|
|
9,857
|
|
|
219
|
|
2
|
%
|
Oil (MBbl)
|
|
|
724
|
|
|
831
|
|
|
107
|
|
15
|
%
|
Combined
(Bcfe)
|
|
|
285
|
|
|
295
|
|
|
10
|
|
4
|
%
|
Daily combined
production (MMcfe/d)
|
|
|
3,165
|
|
|
3,274
|
|
|
109
|
|
3
|
%
|
Average prices
before effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
5.01
|
|
|
3.45
|
|
|
(1.56)
|
|
(31)
|
%
|
C2 Ethane (per Bbl)
(4)
|
|
$
|
16.74
|
|
|
11.73
|
|
|
(5.01)
|
|
(30)
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
61.55
|
|
|
42.95
|
|
|
(18.60)
|
|
(30)
|
%
|
Oil (per
Bbl)
|
|
$
|
87.45
|
|
|
62.35
|
|
|
(25.10)
|
|
(29)
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
6.04
|
|
|
4.13
|
|
|
(1.91)
|
|
(32)
|
%
|
Average realized
prices after effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
3.60
|
|
|
3.38
|
|
|
(0.22)
|
|
(6)
|
%
|
C2 Ethane (per Bbl)
(4)
|
|
$
|
16.63
|
|
|
11.73
|
|
|
(4.90)
|
|
(29)
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
61.14
|
|
|
42.89
|
|
|
(18.25)
|
|
(30)
|
%
|
Oil (per
Bbl)
|
|
$
|
86.76
|
|
|
61.90
|
|
|
(24.86)
|
|
(29)
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
5.03
|
|
|
4.08
|
|
|
(0.95)
|
|
(19)
|
%
|
Average costs (per
Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.06
|
|
|
0.10
|
|
|
0.04
|
|
67
|
%
|
Gathering and
compression
|
|
$
|
0.71
|
|
|
0.72
|
|
|
0.01
|
|
1
|
%
|
Processing
|
|
$
|
0.67
|
|
|
0.81
|
|
|
0.14
|
|
21
|
%
|
Transportation
|
|
$
|
0.70
|
|
|
0.66
|
|
|
(0.04)
|
|
(6)
|
%
|
Production and ad
valorem taxes
|
|
$
|
0.19
|
|
|
0.17
|
|
|
(0.02)
|
|
(11)
|
%
|
Marketing expense,
net
|
|
$
|
0.10
|
|
|
0.08
|
|
|
(0.02)
|
|
(20)
|
%
|
Depletion,
depreciation, amortization and accretion
|
|
$
|
0.60
|
|
|
0.57
|
|
|
(0.03)
|
|
(5)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
$
|
0.11
|
|
|
0.15
|
|
|
0.04
|
|
36
|
%
|
|
|
(1)
|
Production data
excludes volumes related to the VPP.
|
(1)
|
|
(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 prices reflect
the before and after effects of our settled commodity
derivatives. Our calculation of such after effects includes
gains on settlements of commodity derivatives, which do not qualify
for hedge accounting because we do not designate or document them
as hedges for accounting purposes.
|
(4)
|
The average realized
price for the three months ended March 31, 2023 includes $6 million
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 would have been $10.76 per
Bbl.
|
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SOURCE Antero Resources Corporation