DENVER, Oct. 26,
2022 /PRNewswire/ -- Antero Resources
Corporation (NYSE: AR) ("Antero Resources," "Antero," or
the "Company") today announced its third quarter 2022
financial and operating results. The relevant consolidated
financial statements are included in Antero Resources' Quarterly
Report on Form 10-Q for the quarter ended September 30, 2022.
Third Quarter 2022 Highlights Include:
- Net production averaged 3.2 Bcfe/d, including 171 MBbl/d of
liquids
- Realized pre-hedge natural gas price of $8.69 per Mcf, a $0.49 per Mcf premium to NYMEX pricing
- Realized C3+ NGL price of $50.61 per barrel, or 55% of WTI
- Net income was $560 million,
Adjusted Net Income was $531 million
(Non-GAAP)
- Adjusted EBITDAX was $878
million (Non-GAAP); net cash provided by operating
activities was $1.1 billion
- Free Cash Flow was $797
million (Non-GAAP)
- Reduced total debt by $404
million during the quarter
- Purchased $382 million of
shares during the quarter
- Net Debt at quarter end was $1.17
billion (Non-GAAP)
- Net Debt to trailing last twelve month Adjusted EBITDAX
declined to 0.4x (Non-GAAP)
Paul Rady, Chairman, Chief
Executive Officer and President of Antero Resources commented,
"Antero's third quarter results reflect the Company's core
strengths that include access to premium priced markets through our
firm transportation portfolio and low absolute debt. At a time when
basis differentials are widening across the U.S., Antero's
differentiated strategy delivered a $0.49 per Mcf premium to NYMEX. Through our
direct sales contracts along the LNG corridor, we anticipate our
premium in basis pricing relative to NYMEX Henry Hub to increase
further as additional LNG facilities are placed in service. Today's
balance sheet strength and a strong Free Cash Flow outlook will
allow us to deliver significant capital returns to our shareholders
in the quarters ahead."
Mr. Rady continued, "We remain committed to maintaining our
leadership position in ESG. Our 2021 ESG achievements highlight our
continued focus on the communities where we live and operate, while
keeping our workforce safe. We have made tremendous progress on our
commitment to achieve Net Zero Scope 1 and 2 GHG emissions by 2025,
already reducing our peer-leading GHG emissions by 36% since 2019.
Our ability to provide lower carbon energy to both our communities
at home and abroad, directly improves the health, safety and
livelihood for people living in energy poverty."
Michael Kennedy, Chief Financial
Officer of Antero Resources said, "The $1
billion increase in our share repurchase authorization
highlights the confidence we have in our business strategy and the
significant Free Cash Flow that it generates."
Mr. Kennedy added, "Since the start of our debt reduction
program in the fourth quarter of 2019, we have reduced debt by
$2.6 billion, including $400 million during the third quarter and almost
$1 billion year to date. Because of
this aggressive focus on debt reduction, we are now poised to
return the majority of our Free Cash Flow to our shareholders."
For a discussion of the non-GAAP financial measures including
Adjusted Net Income, Adjusted EBITDAX, Free Cash Flow and Net Debt
please see "Non-GAAP Financial Measures."
2022 Debt Reduction
and Capital Return Program
|
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Three Months
Ended
September 30, 2022
|
|
Nine Months
Ended
September 30, 2022
|
|
Total shares purchased
(MM) (1)
|
|
10.5
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|
21.5
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|
|
|
|
|
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Share purchases
($MM)
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$382
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$740
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Absolute debt reduction
($MM)
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|
$404
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$953
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Total debt reduction
and capital return ($MM)
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$786
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$1,693
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(1)
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For the three and
nine months ended September 30, 2022, the total number of shares
purchased includes 0.03 million and 2.9 million shares,
respectively, of Antero common stock related to satisfying tax
withholding obligations incurred upon the vesting of restricted
stock units and performance share units held by our
employees.
|
Debt Reduction
As of September 30, 2022, Antero's
total debt was $1.17 billion. Net
Debt to trailing twelve month Adjusted EBITDAX was 0.4x. During the
third quarter, Antero reduced total debt by $404 million including a $62 million reduction in borrowings under the
credit facility, the repurchase of $300
million aggregate principal amount of its 2026 and 2029
Senior Notes pursuant to its tender offer, the repurchase of
$22 million aggregate principle
amount of senior notes in the open market and the redemption of
$20 million of its convertible
debt.
Increased Share Repurchase Program
On October 25, 2022, Antero's
Board of Directors authorized a $1
billion increase in the Company's share repurchase program
to $2 billion. During the third
quarter of 2022, Antero purchased 10.5 million shares at a weighted
average price of $36.56 per share for
$382 million. For the first nine
months of 2022, Antero purchased 21.5 million shares at a weighted
average price of $34.84 per share for
$740 million. Combined with the new
authorization, this results in $1.3
billion of remaining capacity under the share repurchase
program.
Free Cash Flow
During the third quarter, Antero generated $797 million of Free Cash Flow. Free Cash Flow
before Changes in Working Capital was $556
million.
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Three Months
Ended
September 30,
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2021
|
|
2022
|
|
Net cash provided by
operating activities
|
|
$
|
312,680
|
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1,087,672
|
|
Less: Net cash used in
investing activities
|
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|
(202,577)
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(243,529)
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Less: Proceeds from
asset sales
|
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|
—
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(952)
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Less: Distributions to
non-controlling interests in Martica
|
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(18,755)
|
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|
(46,217)
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Free Cash
Flow
|
|
$
|
91,348
|
|
|
796,974
|
|
Changes in Working
Capital
|
|
|
30,651
|
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|
(241,136)
|
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Free Cash Flow
before Changes in Working Capital
|
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$
|
121,999
|
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555,838
|
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Borrowing Base Redetermination
The borrowing base under Antero Resources' credit facility was
reaffirmed at $3.5 billion in October
of 2022. Lender commitments under the credit facility remained at
$1.5 billion. As of September 30, 2022, Antero had $9 million drawn under its credit facility.
Guidance Update
Antero is revising its cash production expense guidance to a
range of $2.55 to $2.65 per Mcfe reflecting higher fuel costs and
ad valorem tax due to the increase in commodity prices.
Antero is also increasing its drilling and completion capital
expenditure guidance reflecting completion activity being pulled
into the fourth quarter and incremental inflationary pressure
related in part to higher services, diesel and steel costs.
Development optimization to retain preferred crews is expected to
result in an additional pad being completed in late December that
had originally been planned for the first quarter of 2023. Antero
now expects 72 wells to be completed in 2022, compared to initial
guidance of 60 to 65 wells. These additional well completions are
expected to lead to higher sequential production in the first
quarter of 2023.
Land capital guidance is increasing to a range of $125 to $150
million due to continued success in the organic leasing
program that has allowed Antero to increase its premium drilling
locations in its liquids-rich fairway. During the third quarter,
Antero added approximately 5,500 net acres which hold approximately
25 incremental drilling locations at an average cost of under
$1 million per location. During the
first nine months of 2022, Antero's organic leasing program has
added approximately 60 drilling locations in the core of the
Appalachia liquids area at an average cost of under $1 million per location, essentially offsetting
Antero's maintenance capital plan that assumes an average of 60 to
65 wells per year. In addition to the incremental locations added,
Antero also acquired minerals in its Marcellus area of development
to increase its net revenue interest in future drilling locations.
The Company believes this organic leasing program is the most cost
efficient approach to lengthening its core inventory position.
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Full Year 2022 –
Prior
|
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Full Year 2022 –
Revised
|
|
|
Full Year 2022
Guidance
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
Cash Production
Expense ($/Mcfe)
|
$2.40
|
|
$2.50
|
|
$2.55
|
|
$2.65
|
|
|
|
Drilling and
Completion Capital ($MM)
|
$725
|
|
$750
|
|
$775
|
|
$800
|
|
|
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Land Capital
($MM)
|
$100
|
|
$110
|
|
$125
|
|
$150
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Fourth Quarter 2022
Guidance
|
Low
|
|
High
|
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Cash Production
Expense ($/Mcfe)
|
$2.55
|
|
$2.65
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Production
(Bcfe/d)
|
3.25
|
|
3.35
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Note: Any 2022
projections not discussed in this release are unchanged from
previously stated guidance.
|
Third Quarter 2022 Financial Results
Net daily natural gas equivalent production in the third quarter
averaged 3.2 Bcfe/d, including 171 MBbl/d of liquids, as
detailed in the table below. Due to the ongoing commissioning of
the Shell Cracker and an NGL downstream pipeline outage at the
beginning of October that required volumes to be shut in
temporarily, Antero anticipates fourth quarter production volumes
will be 3.25 to 3.35 Bcfe/d. Full year 2022 production guidance
remains unchanged at a range of 3.2 to 3.3 Bcfe/d with expectations
to now be at the low end of the range.
Antero's average realized natural gas price before hedging was
$8.69 per Mcf, representing
a 102% increase compared to the prior year period. Antero realized
a $0.49 per Mcf premium to the
average NYMEX Henry Hub price. The realized natural gas price
benefited from higher premiums to NYMEX at the price hubs where
Antero sells its natural gas in the LNG fairway of the Gulf Coast.
Antero sells approximately 75% of its natural gas into these
premium priced NYMEX related hubs.
The following table details average net production and average
realized prices for the three months ended September 30, 2022:
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Three Months Ended
September 30, 2022
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Combined
|
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Natural
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Natural
Gas
|
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Oil
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C3+
NGLs
|
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Ethane
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Gas
Equivalent
|
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(MMcf/d)
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(Bbl/d)
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(Bbl/d)
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(Bbl/d)
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(MMcfe/d)
|
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Average Net
Production
|
|
|
2,172
|
|
|
8,734
|
|
|
108,153
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54,460
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|
3,200
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Combined
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Natural
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Natural
Gas
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Oil
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C3+
NGLs
|
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Ethane
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Gas
Equivalent
|
|
Average Realized
Prices
|
|
($/Mcf)
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|
($/Bbl)
|
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($/Bbl)
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($/Bbl)
|
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($/Mcfe)
|
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Average realized prices
before settled derivatives
|
|
$
|
8.69
|
|
$
|
83.41
|
|
$
|
50.61
|
|
$
|
23.40
|
|
$
|
8.23
|
|
Average index price
(1)
|
|
$
|
8.20
|
|
$
|
91.55
|
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$
|
8.20
|
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Premium / (Discount) to
average index price
|
|
$
|
0.49
|
|
$
|
(8.14)
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$
|
0.03
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Settled commodity
derivatives (2)
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$
|
(3.18)
|
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$
|
(0.65)
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$
|
(0.34)
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$
|
(2.17)
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Average realized prices
after settled derivatives
|
|
$
|
5.51
|
|
$
|
82.76
|
|
$
|
50.27
|
|
$
|
23.40
|
|
$
|
6.06
|
|
Premium / (Discount) to
average index price
|
|
$
|
(2.69)
|
|
$
|
(8.79)
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|
|
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|
|
|
$
|
(2.14)
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(1)
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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
settled futures price, respectively.
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(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
September 30, 2022.
|
Antero's average realized C3+ NGL price was $50.61 per barrel. Antero shipped 61% 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 39% of C3+ NGL net production at a
$0.09 per gallon discount to Mont
Belvieu pricing at Hopedale, OH.
The resulting blended price on 108 MBbl/d of net C3+ NGL production
was in line with Mont Belvieu pricing.
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|
|
Three Months Ended
September 30, 2022
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Pricing
Point
|
|
Net C3+
NGL
Production
(Bbl/d)
|
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% by
Destination
|
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Premium
(Discount)
To Mont Belvieu
($/Gal)
|
Propane / Butane
exported on ME2
|
Marcus Hook,
PA
|
|
65,833
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|
61 %
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|
$0.07
|
Remaining C3+ NGL
volume
|
Hopedale, OH
|
|
42,320
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39 %
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($0.09)
|
Total C3+ NGLs/Blended
Premium
|
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|
|
108,153
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100 %
|
|
$0.00
|
All-in cash expense, which includes lease operating, gathering,
compression, processing and transportation, production and ad
valorem taxes was $2.84 per Mcfe in
the third quarter, a 21% increase compared to $2.35 per Mcfe average during the third quarter
of 2021. The increase was due primarily to higher natural gas and
fuel costs that impacted gathering, processing and transportation
costs and an increase in production taxes as a result of higher
commodity prices during the quarter. Fourth quarter cash production
expense is expected to decline sequentially to a range of
$2.55 to $2.65 per Mcfe, driven by lower commodity prices
and lower volumes being shipped on Mariner East 2.
Net marketing expense was $0.09
per Mcfe in the third quarter, a decrease from $0.11 per Mcfe during the third quarter of 2021
due to lower firm transportation commitments from the year ago
period.
Third Quarter 2022 Operating Update
Antero placed 22 horizontal Marcellus wells to sales during the
third quarter with an average lateral length of 13,600 feet. Ten of
these wells have been on line for at least 60 days and the average
60-day rate per well was 27.4 MMcfe/d, including an Antero record
of approximately 1,509 Bbl/d of liquids per well assuming 25%
ethane recovery. The remaining 12 wells were completed in September
and will contribute to the volume increase in the fourth
quarter.
Third Quarter 2022 Capital Investment
Antero's accrued drilling and completion capital expenditures
for the three months ended September 30,
2022, were $227 million. For a
reconciliation of accrued capital expenditures to cash capital
expenditures, see the table in the Non-GAAP Financial Measures
section.
In addition to capital invested in drilling and completion
costs, the Company invested $46
million in land during the third quarter.
Commodity Derivative Positions
Antero did not enter into any new natural gas, NGL or oil hedges
during the third quarter of 2022. The following table details
Antero's realized hedge loss for the three months ended
September 30, 2022:
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Volume
(MMBtu/d)
|
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Price
($/MMBtu)
|
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Realized
Hedge Loss
($MM)
|
Fixed Price
Swaps
|
|
1,106
|
|
$2.48
|
|
$582
|
Overriding Royalty
Interest Transaction Swaps (1)
|
|
42
|
|
$2.39
|
|
$22
|
Volumetric
Production Payment Transaction Swaps (2)
|
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|
59
|
|
$2.55
|
|
$31
|
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1,207
|
|
|
|
$635
|
Note: Excludes basis
swap positions.
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(1)
|
Represents hedges
related to the Overriding Royalty Interest transaction that was
completed in the second quarter of 2020. The hedge losses are
fully
attributable to the noncontrolling interest in Martica and are
netted out of the distributions attributable to the noncontrolling
interest owner.
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(2)
|
Represents hedges
related to the Volumetric Production Payment transaction that was
completed in the third quarter of 2020.
|
Please see Antero's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022, 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, October 27, 2022 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, November 3, 2022 at
9:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13726232. 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, November 3,
2022 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 (loss), 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 (loss). The
following table reconciles net income (loss) to Adjusted Net Income
(in thousands):
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|
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|
|
Three Months Ended
September 30,
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|
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2021
|
|
2022
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(549,318)
|
|
|
559,759
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(17,257)
|
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|
34,748
|
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Unrealized commodity
derivative (gains) losses
|
|
|
834,334
|
|
|
(109,424)
|
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Amortization of
deferred revenue, VPP
|
|
|
(11,404)
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(9,478)
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Loss (gain) on sale of
assets
|
|
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(539)
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214
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Impairment of oil and
gas properties
|
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26,253
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|
33,924
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Equity-based
compensation
|
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|
5,298
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|
10,402
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Loss on early
extinguishment of debt
|
|
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16,567
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|
30,307
|
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Loss on convertible
note inducement
|
|
|
—
|
|
|
169
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(21,450)
|
|
|
(14,972)
|
|
Contract
termination
|
|
|
3,370
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|
|
17,995
|
|
Tax effect of
reconciling items (1)
|
|
|
(205,127)
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|
9,486
|
|
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|
80,727
|
|
|
563,130
|
|
Martica adjustments
(2)
|
|
|
(20,166)
|
|
|
(31,984)
|
|
Adjusted Net
Income
|
|
$
|
60,561
|
|
|
531,146
|
|
|
|
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Diluted Weighted
Average Shares Outstanding (3)
|
|
|
313,790
|
|
|
325,997
|
|
(1)
|
Deferred taxes were
24% and 23% for 2021 and 2022, 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 (loss) per share. Anti-dilutive weighted average
shares outstanding for the three months ended September 30, 2021
and 2022 were 28 million and 0.3 million,
respectively.
|
Net Debt
Net Debt is calculated as total 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):
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|
|
|
|
|
|
|
|
December
31,
|
|
September 30,
|
|
|
|
2021
|
|
2022
|
|
Credit
Facility
|
|
$
|
—
|
|
|
9,000
|
|
5.000% senior notes due
2025
|
|
|
584,635
|
|
|
—
|
|
8.375% senior notes due
2026
|
|
|
325,000
|
|
|
103,892
|
|
7.625% senior notes due
2029
|
|
|
584,000
|
|
|
415,837
|
|
5.375% senior notes due
2030
|
|
|
600,000
|
|
|
600,000
|
|
4.250% convertible
senior notes due 2026
|
|
|
81,570
|
|
|
56,932
|
|
Unamortized discount,
net
|
|
|
(27,772)
|
|
|
—
|
|
Unamortized debt
issuance costs
|
|
|
(21,989)
|
|
|
(12,833)
|
|
Total long-term
debt
|
|
$
|
2,125,444
|
|
|
1,172,828
|
|
Less: Cash and cash
equivalents
|
|
|
—
|
|
|
—
|
|
Net Debt
|
|
$
|
2,125,444
|
|
|
1,172,828
|
|
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, less proceeds from asset sales 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 and years ended September 30,
2021 and 2022. 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
September 30,
|
|
|
|
2021
|
|
2022
|
|
Reconciliation of
net income (loss) to Adjusted EBITDAX:
|
|
|
|
|
|
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(549,318)
|
|
|
559,759
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(17,257)
|
|
|
34,748
|
|
Unrealized commodity
derivative (gains) losses
|
|
|
834,334
|
|
|
(109,424)
|
|
Amortization of
deferred revenue, VPP
|
|
|
(11,404)
|
|
|
(9,478)
|
|
Loss (gain) on sale of
assets
|
|
|
(539)
|
|
|
214
|
|
Interest expense,
net
|
|
|
45,414
|
|
|
28,326
|
|
Loss on early
extinguishment of debt
|
|
|
16,567
|
|
|
30,307
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
169
|
|
Income tax expense
(benefit)
|
|
|
(158,656)
|
|
|
135,823
|
|
Depletion,
depreciation, amortization and accretion
|
|
|
183,638
|
|
|
170,237
|
|
Impairment of oil and
gas properties
|
|
|
26,253
|
|
|
33,924
|
|
Exploration
expense
|
|
|
235
|
|
|
1,263
|
|
Equity-based
compensation expense
|
|
|
5,298
|
|
|
10,402
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(21,450)
|
|
|
(14,972)
|
|
Dividends from
unconsolidated affiliate
|
|
|
31,285
|
|
|
31,285
|
|
Contract termination,
transaction expense and other
|
|
|
3,996
|
|
|
18,080
|
|
|
|
|
388,396
|
|
|
920,663
|
|
Martica related
adjustments (1)
|
|
|
(30,197)
|
|
|
(42,563)
|
|
Adjusted
EBITDAX
|
|
$
|
358,199
|
|
|
878,100
|
|
|
|
|
|
|
|
|
|
Reconciliation of
our Adjusted EBITDAX to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
358,199
|
|
|
878,100
|
|
Martica related
adjustments (1)
|
|
|
30,197
|
|
|
42,563
|
|
Interest expense,
net
|
|
|
(45,414)
|
|
|
(28,326)
|
|
Exploration
expense
|
|
|
(235)
|
|
|
(1,263)
|
|
Changes in current
assets and liabilities
|
|
|
(28,316)
|
|
|
213,999
|
|
Transaction
expense
|
|
|
(626)
|
|
|
—
|
|
Contract termination
expense
|
|
|
(3,370)
|
|
|
(17,995)
|
|
Other items
|
|
|
2,245
|
|
|
594
|
|
Net cash provided by
operating activities
|
|
$
|
312,680
|
|
|
1,087,672
|
|
|
|
(1)
|
Adjustments reflect
noncontrolling interests in Martica not otherwise adjusted in
amounts above.
|
|
|
|
|
|
|
Twelve
|
|
|
Months
Ended
|
|
|
September 30,
|
|
|
2022
|
Reconciliation of
net income to Adjusted EBITDAX:
|
|
|
|
Net income and
comprehensive income attributable to Antero Resources
Corporation
|
|
$
|
2,069,860
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
120,005
|
Unrealized commodity
derivative gains
|
|
|
(702,965)
|
Amortization of
deferred revenue, VPP
|
|
|
(39,528)
|
Loss on sale of
assets
|
|
|
2,666
|
Interest expense,
net
|
|
|
144,000
|
Loss on early
extinguishment of debt
|
|
|
55,730
|
Loss on convertible
note inducement
|
|
|
169
|
Income tax
expense
|
|
|
571,793
|
Depletion,
depreciation, amortization, and accretion
|
|
|
693,984
|
Impairment of oil and
gas properties
|
|
|
100,654
|
Exploration
|
|
|
3,497
|
Equity-based
compensation expense
|
|
|
28,470
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(74,327)
|
Dividends from
unconsolidated affiliate
|
|
|
125,138
|
Contract termination,
transaction expense and other
|
|
|
20,450
|
|
|
|
3,119,596
|
Martica related
adjustments (1)
|
|
|
(161,101)
|
Adjusted
EBITDAX
|
|
$
|
2,958,495
|
|
|
(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
September 30,
|
|
|
|
2021
|
|
2022
|
|
Drilling and completion
costs (cash basis)
|
|
$
|
173,943
|
|
|
195,587
|
|
Change in accrued
capital costs
|
|
|
(6,313)
|
|
|
31,539
|
|
Adjusted drilling and
completion costs (accrual basis)
|
|
$
|
167,630
|
|
|
227,126
|
|
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 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, lack of availability of
drilling and production equipment and services, environmental
risks, drilling and other operating risks, regulatory changes, the
uncertainty inherent in estimating natural gas and oil reserves and
in projecting future rates of production, cash flow and access to
capital, the timing of development expenditures, impacts of world
health event, 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
September 30, 2022.
ANTERO RESOURCES
CORPORATION
Condensed Consolidated
Balance Sheets
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
September 30,
|
|
|
|
2021
|
|
2022
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
$
|
78,998
|
|
|
23,770
|
|
Accrued
revenue
|
|
|
591,442
|
|
|
924,343
|
|
Derivative
instruments
|
|
|
757
|
|
|
954
|
|
Other current
assets
|
|
|
14,922
|
|
|
28,587
|
|
Total current
assets
|
|
|
686,119
|
|
|
977,654
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
Oil and gas
properties, at cost (successful efforts method):
|
|
|
|
|
|
|
|
Unproved
properties
|
|
|
1,042,118
|
|
|
999,273
|
|
Proved
properties
|
|
|
12,646,303
|
|
|
13,103,294
|
|
Gathering systems and
facilities
|
|
|
5,802
|
|
|
5,802
|
|
Other property and
equipment
|
|
|
116,522
|
|
|
129,853
|
|
|
|
|
13,810,745
|
|
|
14,238,222
|
|
Less accumulated
depletion, depreciation and amortization
|
|
|
(4,283,700)
|
|
|
(4,587,529)
|
|
Property and
equipment, net
|
|
|
9,527,045
|
|
|
9,650,693
|
|
Operating leases
right-of-use assets
|
|
|
3,419,912
|
|
|
3,541,576
|
|
Derivative
instruments
|
|
|
14,369
|
|
|
7,327
|
|
Investment in
unconsolidated affiliate
|
|
|
232,399
|
|
|
222,882
|
|
Other assets
|
|
|
16,684
|
|
|
13,246
|
|
Total
assets
|
|
$
|
13,896,528
|
|
|
14,413,378
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
24,819
|
|
|
103,640
|
|
Accounts payable,
related parties
|
|
|
76,240
|
|
|
74,584
|
|
Accrued
liabilities
|
|
|
457,244
|
|
|
497,547
|
|
Revenue distributions
payable
|
|
|
444,873
|
|
|
682,327
|
|
Derivative
instruments
|
|
|
559,851
|
|
|
612,237
|
|
Short-term lease
liabilities
|
|
|
456,347
|
|
|
535,347
|
|
Deferred revenue,
VPP
|
|
|
37,603
|
|
|
32,330
|
|
Other current
liabilities
|
|
|
11,140
|
|
|
6,010
|
|
Total current
liabilities
|
|
|
2,068,117
|
|
|
2,544,022
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,125,444
|
|
|
1,172,828
|
|
Deferred income tax
liability, net
|
|
|
318,126
|
|
|
619,342
|
|
Derivative
instruments
|
|
|
181,806
|
|
|
445,481
|
|
Long-term lease
liabilities
|
|
|
2,964,115
|
|
|
3,007,636
|
|
Deferred revenue,
VPP
|
|
|
118,366
|
|
|
95,514
|
|
Other
liabilities
|
|
|
54,462
|
|
|
58,293
|
|
Total
liabilities
|
|
|
7,830,436
|
|
|
7,943,116
|
|
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; 313,930 shares and
303,131 shares issued and
outstanding as of December 31, 2021 and
September 30, 2022, respectively
|
|
|
3,139
|
|
|
3,031
|
|
Additional paid-in
capital
|
|
|
6,371,398
|
|
|
5,941,977
|
|
Retained earnings
(accumulated deficit)
|
|
|
(617,377)
|
|
|
266,468
|
|
Total stockholders'
equity
|
|
|
5,757,160
|
|
|
6,211,476
|
|
Noncontrolling
interests
|
|
|
308,932
|
|
|
258,786
|
|
Total
equity
|
|
|
6,066,092
|
|
|
6,470,262
|
|
Total liabilities and
equity
|
|
$
|
13,896,528
|
|
|
14,413,378
|
|
ANTERO RESOURCES
CORPORATION
Condensed Consolidated
Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended September 30,
|
|
|
|
2021
|
|
2022
|
|
Revenue and
other:
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
884,669
|
|
|
1,736,039
|
|
Natural gas liquids
sales
|
|
|
598,327
|
|
|
620,816
|
|
Oil sales
|
|
|
56,734
|
|
|
67,025
|
|
Commodity derivative
fair value losses
|
|
|
(1,250,466)
|
|
|
(530,523)
|
|
Marketing
|
|
|
232,685
|
|
|
159,985
|
|
Amortization of
deferred revenue, VPP
|
|
|
11,404
|
|
|
9,478
|
|
Other
income
|
|
|
530
|
|
|
1,804
|
|
Total
revenue
|
|
|
533,883
|
|
|
2,064,624
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
25,363
|
|
|
27,453
|
|
Gathering,
compression, processing and transportation
|
|
|
628,225
|
|
|
716,388
|
|
Production and ad
valorem taxes
|
|
|
52,219
|
|
|
92,998
|
|
Marketing
|
|
|
266,751
|
|
|
185,377
|
|
Exploration and mine
expenses
|
|
|
235
|
|
|
2,975
|
|
General and
administrative (including equity-based compensation expense of
$5,298 and
$10,402 in 2021 and 2022,
respectively)
|
|
|
32,442
|
|
|
42,903
|
|
Depletion,
depreciation and amortization
|
|
|
182,810
|
|
|
169,607
|
|
Impairment of oil and
gas properties
|
|
|
26,253
|
|
|
33,924
|
|
Accretion of asset
retirement obligations
|
|
|
828
|
|
|
630
|
|
Contract
termination
|
|
|
3,370
|
|
|
17,995
|
|
(Gain) loss on sale of
assets
|
|
|
(539)
|
|
|
214
|
|
Total operating
expenses
|
|
|
1,217,957
|
|
|
1,290,464
|
|
Operating income
(loss)
|
|
|
(684,074)
|
|
|
774,160
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(45,414)
|
|
|
(28,326)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
21,450
|
|
|
14,972
|
|
Loss on early
extinguishment of debt
|
|
|
(16,567)
|
|
|
(30,307)
|
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
(169)
|
|
Transaction
expense
|
|
|
(626)
|
|
|
—
|
|
Total other
expense
|
|
|
(41,157)
|
|
|
(43,830)
|
|
Income (loss) before
income taxes
|
|
|
(725,231)
|
|
|
730,330
|
|
Income tax benefit
(expense)
|
|
|
158,656
|
|
|
(135,823)
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(566,575)
|
|
|
594,507
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling
interests
|
|
|
(17,257)
|
|
|
34,748
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(549,318)
|
|
|
559,759
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share—basic
|
|
$
|
(1.75)
|
|
|
1.83
|
|
Income (loss) per
share—diluted
|
|
$
|
(1.75)
|
|
|
1.72
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
313,790
|
|
|
305,343
|
|
Diluted
|
|
|
313,790
|
|
|
325,997
|
|
ANTERO RESOURCES
CORPORATION
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
2021
|
|
2022
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
including noncontrolling interests
|
|
$
|
(1,112,130)
|
|
|
1,231,844
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depletion,
depreciation, amortization and accretion
|
|
|
567,113
|
|
|
515,268
|
|
Impairments
|
|
|
69,618
|
|
|
79,749
|
|
Commodity derivative
fair value losses
|
|
|
2,260,062
|
|
|
1,807,565
|
|
Losses on settled
commodity derivatives
|
|
|
(481,083)
|
|
|
(1,484,660)
|
|
Payments for
derivative monetizations
|
|
|
(4,569)
|
|
|
—
|
|
Deferred income tax
expense (benefit)
|
|
|
(337,568)
|
|
|
307,326
|
|
Equity-based
compensation expense
|
|
|
15,189
|
|
|
23,222
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(57,621)
|
|
|
(54,863)
|
|
Dividends of earnings
from unconsolidated affiliate
|
|
|
105,325
|
|
|
93,854
|
|
Amortization of
deferred revenue
|
|
|
(33,833)
|
|
|
(28,125)
|
|
Amortization of debt
issuance costs, debt discount and debt premium
|
|
|
10,122
|
|
|
3,458
|
|
Settlement of asset
retirement obligations
|
|
|
—
|
|
|
(946)
|
|
(Gain) loss on sale of
assets
|
|
|
(2,827)
|
|
|
2,071
|
|
Loss on early
extinguishment of debt
|
|
|
82,836
|
|
|
45,375
|
|
Loss on convertible
note inducement and equitizations
|
|
|
50,777
|
|
|
169
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(11,336)
|
|
|
55,229
|
|
Accrued
revenue
|
|
|
(227,207)
|
|
|
(332,900)
|
|
Other current
assets
|
|
|
(5,695)
|
|
|
(13,664)
|
|
Accounts payable
including related parties
|
|
|
39,108
|
|
|
59,222
|
|
Accrued
liabilities
|
|
|
124,382
|
|
|
36,632
|
|
Revenue distributions
payable
|
|
|
117,819
|
|
|
237,453
|
|
Other current
liabilities
|
|
|
16,470
|
|
|
(7,222)
|
|
Net cash provided by
operating activities
|
|
|
1,184,952
|
|
|
2,576,057
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to unproved
properties
|
|
|
(48,960)
|
|
|
(120,139)
|
|
Drilling and
completion costs
|
|
|
(447,899)
|
|
|
(589,093)
|
|
Additions to other
property and equipment
|
|
|
(14,082)
|
|
|
(12,188)
|
|
Proceeds from asset
sales
|
|
|
3,192
|
|
|
1,147
|
|
Change in other
assets
|
|
|
2,371
|
|
|
1,910
|
|
Change in other
liabilities
|
|
|
(77)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(505,455)
|
|
|
(718,363)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
(675,412)
|
|
Issuance of senior
notes
|
|
|
1,800,000
|
|
|
—
|
|
Repayment of senior
notes
|
|
|
(1,424,354)
|
|
|
(1,011,313)
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
(919,500)
|
|
|
9,000
|
|
Payment of debt
issuance costs
|
|
|
(22,814)
|
|
|
(814)
|
|
Sale of noncontrolling
interest
|
|
|
51,000
|
|
|
—
|
|
Distributions to
noncontrolling interests in Martica Holdings LLC
|
|
|
(64,783)
|
|
|
(113,515)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(12,706)
|
|
|
(65,029)
|
|
Convertible note
inducement and equitizations
|
|
|
(85,648)
|
|
|
(169)
|
|
Other
|
|
|
(692)
|
|
|
(442)
|
|
Net cash used in
financing activities
|
|
|
(679,497)
|
|
|
(1,857,694)
|
|
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
|
|
$
|
130,947
|
|
|
148,668
|
|
Increase in accounts
payable and accrued liabilities for additions to property and
equipment
|
|
$
|
33,547
|
|
|
23,633
|
|
The following table sets forth unaudited selected financial data
for the three months ended September 30,
2021 and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
884,669
|
|
|
1,736,039
|
|
|
851,370
|
|
96
|
%
|
Natural gas liquids
sales
|
|
|
598,327
|
|
|
620,816
|
|
|
22,489
|
|
4
|
%
|
Oil sales
|
|
|
56,734
|
|
|
67,025
|
|
|
10,291
|
|
18
|
%
|
Commodity derivative
fair value losses
|
|
|
(1,250,466)
|
|
|
(530,523)
|
|
|
719,943
|
|
(58)
|
%
|
Marketing
|
|
|
232,685
|
|
|
159,985
|
|
|
(72,700)
|
|
(31)
|
%
|
Amortization of
deferred revenue, VPP
|
|
|
11,404
|
|
|
9,478
|
|
|
(1,926)
|
|
(17)
|
%
|
Other
income
|
|
|
530
|
|
|
1,804
|
|
|
1,274
|
|
240
|
%
|
Total
revenue
|
|
|
533,883
|
|
|
2,064,624
|
|
|
1,530,741
|
|
287
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
25,363
|
|
|
27,453
|
|
|
2,090
|
|
8
|
%
|
Gathering and
compression
|
|
|
218,815
|
|
|
239,868
|
|
|
21,053
|
|
10
|
%
|
Processing
|
|
|
207,093
|
|
|
241,347
|
|
|
34,254
|
|
17
|
%
|
Transportation
|
|
|
202,317
|
|
|
235,173
|
|
|
32,856
|
|
16
|
%
|
Production and ad
valorem taxes
|
|
|
52,219
|
|
|
92,998
|
|
|
40,779
|
|
78
|
%
|
Marketing
|
|
|
266,751
|
|
|
185,377
|
|
|
(81,374)
|
|
(31)
|
%
|
Exploration and mine
expenses
|
|
|
235
|
|
|
2,975
|
|
|
2,740
|
|
*
|
|
Impairment of oil and
gas properties
|
|
|
26,253
|
|
|
33,924
|
|
|
7,671
|
|
29
|
%
|
Depletion,
depreciation and amortization
|
|
|
182,810
|
|
|
169,607
|
|
|
(13,203)
|
|
(7)
|
%
|
Accretion of asset
retirement obligations
|
|
|
828
|
|
|
630
|
|
|
(198)
|
|
(24)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
|
27,144
|
|
|
32,501
|
|
|
5,357
|
|
20
|
%
|
Equity-based
compensation
|
|
|
5,298
|
|
|
10,402
|
|
|
5,104
|
|
96
|
%
|
Contract
termination
|
|
|
3,370
|
|
|
17,995
|
|
|
14,625
|
|
*
|
|
Gain (loss) on sale of
assets
|
|
|
(539)
|
|
|
214
|
|
|
753
|
|
*
|
|
Total operating
expenses
|
|
|
1,217,957
|
|
|
1,290,464
|
|
|
72,507
|
|
6
|
%
|
Operating income
(loss)
|
|
|
(684,074)
|
|
|
774,160
|
|
|
1,458,234
|
|
*
|
|
Other earnings
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(45,414)
|
|
|
(28,326)
|
|
|
17,088
|
|
(38)
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
21,450
|
|
|
14,972
|
|
|
(6,478)
|
|
(30)
|
%
|
Loss on early
extinguishment of debt
|
|
|
(16,567)
|
|
|
(30,307)
|
|
|
(13,740)
|
|
83
|
%
|
Loss on convertible
note inducement
|
|
|
—
|
|
|
(169)
|
|
|
(169)
|
|
*
|
|
Transaction
expenses
|
|
|
(626)
|
|
|
—
|
|
|
626
|
|
*
|
|
Total other
expense
|
|
|
(41,157)
|
|
|
(43,830)
|
|
|
(2,673)
|
|
6
|
%
|
Income (loss) before
income taxes
|
|
|
(725,231)
|
|
|
730,330
|
|
|
1,455,561
|
|
*
|
|
Income tax benefit
(expense)
|
|
|
158,656
|
|
|
(135,823)
|
|
|
(294,479)
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(566,575)
|
|
|
594,507
|
|
|
1,161,082
|
|
*
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
(17,257)
|
|
|
34,748
|
|
|
52,005
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(549,318)
|
|
|
559,759
|
|
|
1,109,077
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
358,199
|
|
|
878,100
|
|
|
519,901
|
|
145
|
%
|
The following table sets forth selected operating data for the
three months ended September 30, 2021
and 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Production data
(1) (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
|
|
205
|
|
|
200
|
|
|
(5)
|
|
(2)
|
%
|
C2 Ethane
(MBbl)
|
|
|
4,372
|
|
|
5,010
|
|
|
638
|
|
15
|
%
|
C3+ NGLs
(MBbl)
|
|
|
10,258
|
|
|
9,950
|
|
|
(308)
|
|
(3)
|
%
|
Oil (MBbl)
|
|
|
932
|
|
|
804
|
|
|
(128)
|
|
(14)
|
%
|
Combined
(Bcfe)
|
|
|
299
|
|
|
294
|
|
|
(5)
|
|
(2)
|
%
|
Daily combined
production (MMcfe/d)
|
|
|
3,247
|
|
|
3,200
|
|
|
(47)
|
|
(1)
|
%
|
Average prices
before effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
4.31
|
|
|
8.69
|
|
|
4.38
|
|
102
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
13.25
|
|
|
23.40
|
|
|
10.15
|
|
77
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
52.68
|
|
|
50.61
|
|
|
(2.07)
|
|
(4)
|
%
|
Oil (per
Bbl)
|
|
$
|
60.87
|
|
|
83.41
|
|
|
22.54
|
|
37
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
5.15
|
|
|
8.23
|
|
|
3.08
|
|
60
|
%
|
Average realized
prices after effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
3.00
|
|
|
5.51
|
|
|
2.51
|
|
84
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
13.25
|
|
|
23.40
|
|
|
10.15
|
|
77
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
38.67
|
|
|
50.27
|
|
|
11.60
|
|
30
|
%
|
Oil (per
Bbl)
|
|
$
|
56.31
|
|
|
82.76
|
|
|
26.45
|
|
47
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
3.79
|
|
|
6.06
|
|
|
2.27
|
|
60
|
%
|
Average costs (per
Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.08
|
|
|
0.09
|
|
|
0.01
|
|
13
|
%
|
Gathering and
compression
|
|
$
|
0.73
|
|
|
0.81
|
|
|
0.08
|
|
11
|
%
|
Processing
|
|
$
|
0.69
|
|
|
0.82
|
|
|
0.13
|
|
19
|
%
|
Transportation
|
|
$
|
0.68
|
|
|
0.80
|
|
|
0.12
|
|
18
|
%
|
Production and ad
valorem taxes
|
|
$
|
0.17
|
|
|
0.32
|
|
|
0.15
|
|
88
|
%
|
Marketing (revenue)
expense, net
|
|
$
|
0.11
|
|
|
0.09
|
|
|
(0.02)
|
|
(18)
|
%
|
Depletion,
depreciation, amortization and accretion
|
|
$
|
0.61
|
|
|
0.58
|
|
|
(0.03)
|
|
(5)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
$
|
0.09
|
|
|
0.11
|
|
|
0.02
|
|
22
|
%
|
(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 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.
|
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SOURCE Antero Resources Corporation