Antero Resources(AR) - 2025 Q1 - Quarterly Results

Financial Performance - Net income was $208 million, and Adjusted Net Income was$ 247 million, reflecting increases of 110% and 75% in Adjusted EBITDAX to $549 million[4]. - Free Cash Flow for the quarter was$ 337 million, significantly up from $15.5 million in the prior year[5][6]. - Total revenue increased from$ 1,122,271 in Q1 2024 to $1,352,707 in Q1 2025, representing a growth of 20.5%[43]. - Natural gas sales surged from$ 474,133 in Q1 2024 to $780,005 in Q1 2025, an increase of 64.3%[43]. - Operating income rose significantly from$ 47,739 in Q1 2024 to $271,472 in Q1 2025, marking an increase of 468.5%[43]. - Net income attributable to Antero Resources Corporation increased from$ 22,730 in Q1 2024 to $207,971 in Q1 2025, a growth of 817.5%[43]. - Cash flows from operating activities improved from$ 261,610 in Q1 2024 to $457,739 in Q1 2025, an increase of 75.0%[45]. - Adjusted EBITDAX for the three months ended March 31, 2025, was$ 549,428, up from $262,087 in the same period of 2024, indicating a 109% growth[33]. - For the twelve months ended March 31, 2025, Adjusted EBITDAX totaled$ 1,219,666, compared to $1,282,398 for the previous year, showing a decrease of about 4.9%[34]. Production and Operations - Net production averaged 3.4 Bcfe/d, including 2.2 Bcf/d of natural gas and 206 MBbl/d of liquids[4]. - The company placed 26 horizontal Marcellus wells to sales with an average rate of 32 MMcfe/d per well[16]. - Drilling and completion capital expenditures were$ 157 million, 16% lower than the prior year[4][17]. - Daily combined production decreased by 1%, from 3,426 MMcfe/d in Q1 2024 to 3,397 MMcfe/d in Q1 2025[47]. - Drilling and completion costs (cash basis) decreased from $188,905 in Q1 2024 to$ 175,134 in Q1 2025, a reduction of approximately 7.5%[36]. Debt and Equity - Total debt was reduced by $204 million during the quarter, bringing net debt down to$ 1.29 billion[8]. - Antero purchased 2.7 million shares for approximately $92 million year-to-date, with$ 1 billion capacity remaining in the share repurchase program[7]. - Stockholders' equity increased from $7,021,650 in December 2024 to$ 7,218,374 in March 2025, an increase of 2.8%[41]. - Total liabilities decreased from $5,793,517 in December 2024 to$ 5,640,538 in March 2025, a reduction of 2.6%[41]. Costs and Expenses - Lease operating costs per Mcfe increased by 22%, from $0.09 in Q1 2024 to$ 0.11 in Q1 2025[47]. - Total operating expenses increased by 1%, from $1,074,532 in Q1 2024 to$ 1,081,235 in Q1 2025[46]. - Interest expense, net, decreased from $30,187 in Q1 2024 to$ 23,368 in Q1 2025, a decline of approximately 22.5%[33]. Market and Pricing - Realized a pre-hedge natural gas equivalent price of $4.55 per Mcfe, a$ 0.90 per Mcfe premium to NYMEX[12]. - Average realized price for natural gas increased by 67%, from $2.36 per Mcf in Q1 2024 to$ 3.95 per Mcf in Q1 2025[47]. - Antero entered into firm sales agreements for approximately 90% of its LPG export volumes for 2025 at a double-digit premium to Mont Belvieu pricing[9]. Other Financial Metrics - The company reported a commodity derivative fair value loss of $71,671 in Q1 2025 compared to a gain of$ 9,446 in Q1 2024[43]. - The company experienced unrealized commodity derivative gains of $60,654 in Q1 2025, compared to losses of$ 8,078 in Q1 2024, indicating a significant turnaround[33]. - Changes in current assets and liabilities resulted in a negative impact of $81,748 for the three months ended March 31, 2025, compared to a positive impact of$ 14,361 in the same period of 2024[33]. - The company cautions that forward-looking statements are subject to risks including commodity price volatility and regulatory changes, which could materially affect future performance[37].