DENVER, April 28, 2021 /PRNewswire/ -- Antero
Resources Corporation (NYSE: AR) ("Antero Resources", "Antero",
or the "Company") today announced its first quarter 2021 financial
and operational results. The relevant consolidated financial
statements are included in Antero Resource's Quarterly Report on
Form 10-Q for the quarter ended March
31, 2021.
First Quarter 2021 Highlights Include:
- Net production averaged 3,322 MMcfe/d, including 170,000
Bbl/d of liquids
- Realized natural gas equivalent price averaged $4.03 per Mcfe, a $1.34 per Mcfe premium to NYMEX pricing
-
- Realized C3+ NGL prices averaged $40.72 per barrel, or 70% of WTI, a 91% increase
from the year ago period
- Net loss was $15 million;
Adjusted Net Income was $183 million
(Non-GAAP)
- Adjusted EBITDAX was $519
million (Non-GAAP); net cash provided by operating
activities was $564 million
- Drilling and completion capital expenditures were
$141 million, a 54% decrease compared
to the prior year period
- Free Cash Flow was $416
million (Non-GAAP)
- Net Debt at quarter end was $2.57
billion, a $433 million
reduction from year end 2020 (Non-GAAP)
- Net Debt to last twelve months Adjusted EBITDAX declined to
2.0x
- Borrowing base under the credit facility remains unchanged
at $2.85 billion
- Established a new U.S. record for lateral feet drilled in 24
hours at 12,118 feet
- Completion stages per day increased 19% from the 2020
average of 8.0 stages per day to 9.5 stages per day
Paul Rady, Chairman and Chief
Executive Officer of Antero Resources commented, "Antero's first
quarter financial results highlight our significant exposure to
rising commodity prices. As the second largest NGL producer
and the largest NGL exporter in the U.S., our results benefited
from strong international demand for LPG that resulted in C3+ NGL
prices that were nearly double the prices realized last year.
This quarter's exceptional financial performance also benefited
from our natural gas firm transportation portfolio that enabled us
to sell natural gas at a $0.41 per
Mcf premium to NYMEX."
Mr. Rady continued, "Antero's differentiated business model
focuses on liquids rich development and a firm transportation
portfolio that provides flow assurance and enables best in class
price realizations. In combination, these structural
advantages generated Free Cash Flow of more than $400 million during the first quarter.
Based on today's strip prices, we forecast over $600 million in Free Cash Flow in 2021, which we
will use for additional debt reduction."
Glen Warren, President, and Chief
Financial Officer of Antero Resources said, "Since the start of our
debt reduction program in the fourth quarter of 2019 we have
reduced debt by $1.2 billion,
including $433 million during the
first quarter of 2021 alone. This rapid debt repayment has
allowed us to reduce our leverage to 2.0x this quarter and
positions us to be well below 2-times in the coming quarters.
Additionally, we expect to achieve our goal of absolute debt under
$2 billion in 2022, based on today's
strip prices. Once these balance sheet objectives are
accomplished, we will be opportunistic in further debt pay down and
begin to return capital 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."
First Quarter 2021 Free Cash Flow
Antero generated $416 million in
Free Cash Flow after adjusting for working capital changes.
Free Cash Flow before Changes in Working Capital was $320 million during the first quarter.
|
|
Three Months
Ended March
31,
|
|
|
|
2020
|
|
2021
|
|
Net cash provided by
operating activities
|
|
$
|
200,677
|
|
|
563,731
|
|
Less: Net cash used
in investing activities
|
|
|
(311,681)
|
|
|
(122,975)
|
|
Less: Distributions
to non-controlling interests in Martica
|
|
|
—
|
|
|
(24,699)
|
|
Free Cash
Flow
|
|
$
|
(111,004)
|
|
|
416,051
|
|
Changes in Working
Capital(1)
|
|
|
(18,403)
|
|
|
96,777
|
|
Free Cash Flow
before Changes in Working Capital
|
|
$
|
(129,407)
|
|
|
319,688
|
|
|
|
(1)
|
Working capital
adjustments in 2021 include $60.5 million in changes in current
assets and liabilities and $35.9 million in accounts payable and
accrued liabilities for additions to property and equipment. See
the cash flow statement in this release for details.
|
Firm Transportation Mitigation
During the first quarter of 2021, Antero was able to utilize its
firm transportation portfolio to deliver natural gas volumes that
realized a $0.41 per Mcf premium to
NYMEX Henry Hub gas prices. In addition, the firm transport
delivered a net marketing gain during the quarter of $3 million, or $0.01 per Mcfe.
NGL Hedges
In order to lock in 2021 Free Cash Flow, Antero added C3+ NGL
hedges focused on the summer months of this year. The summer
months historically experience lower seasonal demand and weaker
pricing. Hedges were executed on propane, normal butane,
isobutane and pentane volumes. Antero has hedged
approximately 45% of expected C3+ NGL volumes during the second and
third quarters of 2021 at an average price of $36 per barrel as of March
31, 2021. This compares to a C3+ average realized
price of approximately $18.75 per
barrel during the second and third quarters of 2020. Antero
is unhedged on the majority of its fourth quarter 2021 and all 2022
C3+ NGL production as fundamentals remain strong for improved
pricing during these periods. Please see the hedging table on page
5 for more details on Antero's hedge position.
First Quarter 2021 Financial Results
For the three months ended March 31,
2021, Antero reported a GAAP net loss of $15 million, or $0.05 per diluted share, compared to a GAAP net
loss of $339 million, or $1.19 per diluted share, in the prior year
period. Adjusted Net Income (non-GAAP measure) for the three
months ended March 31, 2021 was
$183 million, or $0.62 per diluted share, compared to Adjusted Net
Loss of $38 million during the three
months ended March 31, 2020, or
$0.13 per diluted share.
Adjusted EBITDAX (non-GAAP measure) for the three months ended
March 31, 2021 was $519 million, an increase of 113% versus the
prior year period driven by higher realized natural gas and NGL
prices and the Washington Gas Light Company (WGL) payment for
natural gas sales.
The following table details the components of average net
production and average realized prices for the three months ended
March 31, 2021:
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Three Months Ended
March 31, 2021
|
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Combined
|
|
|
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
|
|
(MMcf/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(MMcfe/d)
|
|
Average Net
Production
|
|
|
2,302
|
|
|
10,667
|
|
|
110,289
|
|
|
48,944
|
|
|
3,322
|
|
|
|
|
|
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Combined
|
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Natural
|
|
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|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
Average Realized
Prices
|
|
($/Mcf)
|
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($/Bbl)
|
|
($/Bbl)
|
|
($/Bbl)
|
|
($/Mcfe)
|
|
Average realized
prices before settled derivatives
|
|
$
|
3.48
|
|
$
|
46.55
|
|
$
|
40.72
|
|
$
|
8.20
|
|
$
|
4.03
|
|
Settled commodity
derivatives
|
|
|
0.08
|
|
|
(0.75)
|
|
|
(0.93)
|
|
|
(0.67)
|
|
|
0.02
|
|
Average realized
prices after settled derivatives
|
|
$
|
3.56
|
|
$
|
45.80
|
|
$
|
39.79
|
|
$
|
7.53
|
|
$
|
4.05
|
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NYMEX average
price
|
|
$
|
2.69
|
|
$
|
57.79
|
|
|
|
|
|
|
|
$
|
2.69
|
|
Premium /
(Differential) to NYMEX
|
|
$
|
0.87
|
|
$
|
(11.99)
|
|
|
|
|
|
|
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$
|
1.36
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Net daily natural gas equivalent production in the first quarter
averaged 3.3 Bcfe/d, including 170 MBbl/d of liquids, as detailed
in the above table. Net gas equivalent production decreased
1% from the prior year period.
Antero's average realized natural gas price before hedging was
$3.48 per Mcf, representing a 76%
increase compared to the prior year period. The first quarter 2021
gas realization includes a $0.38 per
Mcf gain from the payment received from WGL in February 2021 due to a favorable judgement on
previously disclosed natural gas pricing contractual
disputes. Excluding this payment, Antero realized a
$0.41 per Mcf premium to the average
NYMEX Henry Hub price by capitalizing on its premium firm
transportation.
Antero's average realized C3+ NGL price before hedging was
$40.72 per barrel, a 91% increase
versus the prior year period. Antero shipped 49% of its total
C3+ NGL net production on Mariner East 2 for export and realized a
$0.02 per gallon premium to Mont
Belvieu pricing on these volumes at Marcus Hook, PA. Antero
sold the remaining 51% of C3+ NGL net production at a $0.06 per gallon discount to Mont Belvieu pricing
at Hopedale, OH. The resulting blended price on 110,289 Bbl/d
of net C3+ NGL production was $40.72
per barrel, which was a $0.02 per
gallon discount to Mont Belvieu pricing. Antero expects to
sell at least 50% of its C3+ NGL production in 2021 at Marcus Hook
for export at a premium to Mont Belvieu. Antero exports a
larger proportion of its C3+ NGL during the summer when lower
seasonal demand reduces domestic pricing. The average
realized price for C3+ NGLs is forecasted to be in the range of
$0.00 to a $0.05 per gallon premium relative to Mont Belvieu
pricing in 2021.
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Three months ended
March 31, 2021
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Pricing
Point
|
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Net C3+
NGL
Production
(Bbl/d)
|
|
%
by
Destination
|
|
Premium
(Discount)
To Mont
Belvieu
($/Gal)
|
Propane / Butane
exported on ME2
|
Marcus Hook,
PA
|
|
53,732
|
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49%
|
|
$0.02
|
Remaining C3+ NGL
volume
|
Hopedale,
OH
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56,557
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|
51%
|
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($0.06)
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Total C3+
NGLs/Blended Premium
|
|
|
|
110,289
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|
100%
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|
($0.02)
|
All-in cash expense, which includes lease operating, gathering,
compression, processing and transportation, production and ad
valorem taxes was $2.26 per Mcfe in
the first quarter, an 8% increase compared to $2.09 per Mcfe average during the first quarter
of 2020. The increase from a year ago was due primarily to an
increase in gathering, processing and transportation expense driven
by higher fuel costs as a result of higher natural gas prices and
$12 million in incentive fee rebates
earned during the three months ended March
31, 2020 that were not earned in the first quarter of
2021. Transportation expense increased $0.06 per Mcfe due to increased utilization on
higher tariff pipelines into the Midwest, which in turn led to
higher natural gas realizations. Lease operating expense was
$0.08 per Mcfe in the first quarter,
unchanged from the year ago period. Production and ad valorem
expense was higher due to a $0.05 per
Mcfe increase related to higher commodity prices and $0.02 per Mcfe related to WGL settlement
expenses.
G&A expense was $0.13 per
Mcfe, a $0.04 per Mcfe increase from
the first quarter of 2020 primarily due to higher compensation
expense that had been significantly reduced during 2020.
G&A expense is expected to be in the range of $0.08 to $0.10 per
Mcfe for the remainder of 2021.
Antero realized a per unit net marketing gain of $0.01 per Mcfe in the first quarter, compared to
a loss of $0.15 per Mcfe reported in
the prior year period. The improvement was due to higher
third party marketing volumes and the mitigation of excess firm
transportation expense.
First Quarter 2021 Operating Update
Marcellus Shale —
Antero placed 14 horizontal Marcellus wells to sales during the
first quarter with an average lateral length of 14,297 feet. Eight
of the 14 new wells have been on line for at least 30 days and the
average 30-day rate per well was 29.5 MMcfe/d, including
approximately 1,605 Bbl/d of liquids assuming 25% ethane
recovery. The average lateral length for the eight new wells
is 14,568 feet. Production rates from these eight wells are
expected to continue to increase as volumes approach peak levels
during the 30 to 60 day period.
Antero drilled an average of 7,507 feet per day in the lateral
in the first quarter, a 17% increase over the full year average in
2020. Further, we established a new U.S. record for lateral feet
drilled in a 24-hour period at 12,118 feet.
Antero's ongoing emphasis on completion efficiencies resulted in
a record 9.5 stages completed per day during the first quarter, a
19% increase from the 8.0 stages per day average in 2020.
Completion stages per day benefited from Antero's first simulfrac
completion process on a 6-well pad, which allows two separate wells
to be completed at the same time.
Antero is currently operating three drilling rigs and two
completion crews.
First Quarter 2021 Capital Investment
Antero's accrued drilling and completion capital expenditures
for the three months ended March 31,
2021, were $141 million.
In addition to capital invested in drilling and completion costs,
the Company invested $15 million in
land during the first quarter. For a reconciliation of
accrued capital expenditures to cash capital expenditures see the
table in the Non-GAAP Financial Measures section.
Balance Sheet and Liquidity
As of March 31, 2021, Antero's
total debt was $2.57 billion, of
which $143 million were borrowings
outstanding under the Company's revolving credit facility.
Antero has a borrowing base of $2.85
billion with lender commitments that total $2.64 billion. After deducting letters of
credit outstanding of $742 million,
the Company had approximately $1.8
billion in available liquidity at March 31, 2021. Net debt to trailing twelve
month Adjusted EBITDA ratio (non-GAAP) was 2.0x as of March 31, 2021.
Commodity Derivative Positions
As of March 31, 2021, the Company
has hedged 1.1 Tcf of natural gas at a weighted average index price
of $2.66 per MMBtu through 2023 with
fixed price swap positions. Antero also has oil and NGL fixed
price swap positions, as detailed in the below table.
Please see Antero's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2021, for
more information on all commodity derivative positions. For
detail on current commodity positions, please see the Hedge Profile
presentations at www.anteroresources.com.
The following tables summarize Antero's natural gas and NGL
hedge position as of March 31,
2021:
Fixed price natural gas positions from April 1, 2021 through December 31, 2023 were as follows:
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|
Natural
gas
MMBtu/day
|
|
Weighted
average
index
price
|
|
Year ending
December 31, 2021:
|
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|
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|
NYMEX
($/MMBtu)
|
|
2,160,000
|
|
$2.76
|
|
Year ending
December 31, 2022:
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|
|
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|
NYMEX
($/MMBtu)
|
|
1,155,486
|
|
$2.50
|
|
Year ending
December 31, 2023:
|
|
|
|
|
|
NYMEX
($/MMBtu)
|
|
43,000
|
|
$2.37
|
|
NGL and oil derivative contract positions from April 1, 2021 through December 31, 2021 were as follows:
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Derivative
Contract
Type
|
Liquids
Hedges
(Bbl/d)
|
|
Weighted
average
index
price
($/Bbl)
|
Second Quarter
2021:
|
|
|
|
|
C3+ NGL Composite
Barrel
|
Fixed
swap
|
36,400
|
|
$37.21
|
Third Quarter
2021:
|
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|
|
|
C3+ NGL Composite
Barrel
|
Fixed
swap
|
34,950
|
|
$35.64
|
Fourth Quarter
2021:
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|
C3+ NGL Composite
Barrel
|
Fixed
swap
|
20,750
|
|
$37.67
|
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|
Year ending
December 31, 2021:
|
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Total NYMEX Crude
Oil
|
|
3,000
|
|
$55.16
|
Conference Call
A conference call is scheduled on Thursday, April 29, 2021 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 for
the quarter. 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 6, 2021
at 9:00 am MT at 877-660-6853 (U.S.)
or 201-612-7415 (International) using the conference ID:
13718718.
A simultaneous webcast of the call may be accessed over the
internet at www.anteroresources.com. The webcast will be
archived for replay on the Company's website until Thursday, May 6, 2021 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 (Loss)
Adjusted Net Income (Loss) as set forth in this release
represents net income (loss), adjusted for certain items.
Antero believes that Adjusted Net Income (Loss) and Adjusted Net
Income (Loss) per share 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
(Loss) is not a measure of financial performance under GAAP and
should not be considered in isolation or as a substitute for net
income (loss) as an indicator of financial performance. The
following tables reconcile net income (loss) to Adjusted Net Income
(Loss) (in thousands):
|
Three Months Ended
March 31,
|
|
2020
|
|
2021
|
Net loss attributable
to Antero Resources Corp
|
$
|
(338,810)
|
|
|
(15,499)
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
—
|
|
|
4,395
|
Unrealized commodity
derivative (gains) losses
|
|
(354,907)
|
|
|
183,078
|
Amortization of
deferred revenue, VPP
|
|
—
|
|
|
(11,150)
|
Impairment of oil and
gas properties
|
|
89,220
|
|
|
34,062
|
Impairment of equity
method investment
|
|
610,632
|
|
|
—
|
Equity-based
compensation
|
|
3,329
|
|
|
5,642
|
(Gains) loss on early
extinguishment of debt
|
|
(80,561)
|
|
|
43,204
|
Loss on convertible
note equitization
|
|
—
|
|
|
39,046
|
Equity in (earnings)
loss of unconsolidated affiliate
|
|
128,055
|
|
|
(18,694)
|
Contract termination
and rig stacking
|
|
—
|
|
|
91
|
Tax effect of
reconciling items (1)
|
|
(95,071)
|
|
|
(66,243)
|
|
|
(38,113)
|
|
|
197,932
|
Martica adjustments
(2)
|
|
—
|
|
|
(14,947)
|
Adjusted Net Income
(Loss)
|
$
|
(38,113)
|
|
|
183,958
|
|
|
|
|
|
|
Fully Diluted Shares
Outstanding
|
|
284,227
|
|
|
296,746
|
|
|
Per Share
Amounts
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2020
|
|
|
2021
|
Net loss attributable
to Antero Resources Corp
|
$
|
(1.19)
|
|
|
(0.05)
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
—
|
|
|
0.01
|
Unrealized commodity
derivative (gains) losses
|
|
(1.25)
|
|
|
0.62
|
Amortization of
deferred revenue, VPP
|
|
—
|
|
|
(0.04)
|
Impairment of oil and
gas properties
|
|
0.31
|
|
|
0.11
|
Impairment of equity
method investment
|
|
2.15
|
|
|
—
|
Equity-based
compensation
|
|
0.01
|
|
|
0.02
|
(Gain) loss on early
extinguishment of debt
|
|
(0.28)
|
|
|
0.15
|
Loss on convertible
note equitization
|
|
—
|
|
|
0.13
|
Equity in earnings
(loss) of unconsolidated affiliates
|
|
0.45
|
|
|
(0.06)
|
Contract termination
and rig stacking
|
|
—
|
|
|
—
|
Tax effect of
reconciling items (1)
|
|
(0.33)
|
|
|
(0.22)
|
|
|
(0.13)
|
|
|
0.67
|
Martica adjustments
(2)
|
|
—
|
|
|
(0.05)
|
Adjusted Net Income
(Loss)
|
$
|
(0.13)
|
|
|
0.62
|
|
|
(1)
|
Deferred taxes
were 24% for 2020 and 2021.
|
(2)
|
Adjustments
reflect noncontrolling interest in Martica not otherwise adjusted
in amounts above.
|
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 debt to Net
Debt as used in this release (in thousands):
|
|
December
31,
|
|
March
31,
|
|
|
|
2020
|
|
2021
|
|
AR bank credit
facility
|
|
$
|
1,017,000
|
|
|
143,200
|
|
5.125% AR senior
notes due 2022
|
|
|
660,516
|
|
|
—
|
|
5.625% AR senior
notes due 2023
|
|
|
574,182
|
|
|
574,182
|
|
5.000% AR senior
notes due 2025
|
|
|
590,000
|
|
|
590,000
|
|
8.375% AR senior
notes due 2026
|
|
|
—
|
|
|
500,000
|
|
7.625% AR senior
notes due 2029
|
|
|
—
|
|
|
700,000
|
|
4.250% AR convertible
senior notes due 2026
|
|
|
287,500
|
|
|
137,500
|
|
Net unamortized
premium
|
|
|
(111,886)
|
|
|
(51,669)
|
|
Net unamortized debt
issuance costs
|
|
|
(15,719)
|
|
|
(24,527)
|
|
Consolidated total
debt
|
|
$
|
3,001,593
|
|
|
2,568,686
|
|
Less: AR cash and cash
equivalents
|
|
|
—
|
|
|
—
|
|
Net Debt
|
|
$
|
3,001,593
|
|
|
2,568,686
|
|
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 drilling and completion
capital and leasehold capital, 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 and to service or incur additional
debt. 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 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, 2020 and 2021.
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,
|
|
|
2020
|
|
2021
|
Reconciliation of
net loss to Adjusted EBITDAX:
|
|
|
|
|
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(338,810)
|
|
|
(15,499)
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
—
|
|
|
4,395
|
Unrealized commodity
derivative (gains) losses
|
|
|
(354,907)
|
|
|
183,078
|
Amortization of
deferred revenue, VPP
|
|
|
—
|
|
|
(11,150)
|
Interest expense,
net
|
|
|
53,102
|
|
|
42,743
|
Loss (gain) on early
extinguishment of debt
|
|
|
(80,561)
|
|
|
43,204
|
Loss on convertible
note equitization
|
|
|
—
|
|
|
39,046
|
Provision for income
tax benefit
|
|
|
(109,985)
|
|
|
(2,946)
|
Depletion,
depreciation, amortization, and accretion
|
|
|
200,781
|
|
|
194,814
|
Impairment of oil and
gas properties
|
|
|
89,220
|
|
|
34,062
|
Impairment of equity
method investment
|
|
|
610,632
|
|
|
—
|
Exploration
expense
|
|
|
210
|
|
|
219
|
Equity-based
compensation expense
|
|
|
3,329
|
|
|
5,642
|
Equity in (earnings)
loss of unconsolidated affiliate
|
|
|
128,055
|
|
|
(18,694)
|
Dividends from
unconsolidated affiliates
|
|
|
42,756
|
|
|
42,756
|
Contract termination
and rig stacking
|
|
|
—
|
|
|
91
|
Transaction
expense
|
|
|
—
|
|
|
2,291
|
|
|
|
243,822
|
|
|
544,052
|
Martica related
adjustments (1)
|
|
|
—
|
|
|
(24,562)
|
Adjusted
EBITDAX
|
|
$
|
243,822
|
|
|
519,490
|
|
|
|
|
|
|
|
Reconciliation of
our Adjusted EBITDAX to net cash provided by operating
activities:
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
243,822
|
|
|
519,490
|
Martica related
adjustments (1)
|
|
|
—
|
|
|
24,562
|
Interest expense,
net
|
|
|
(53,102)
|
|
|
(42,743)
|
Exploration
expense
|
|
|
(210)
|
|
|
(219)
|
Changes in current
assets and liabilities
|
|
|
7,727
|
|
|
60,487
|
Transaction
expense
|
|
|
—
|
|
|
(2,291)
|
Other items
|
|
|
2,440
|
|
|
4,445
|
Net cash provided by
operating activities
|
|
$
|
200,677
|
|
|
563,731
|
|
|
(1)
|
Adjustments
reflect noncontrolling interests in Martica not otherwise adjusted
in amounts above.
|
|
|
|
|
|
|
|
|
|
Twelve
|
|
|
|
Months
Ended
|
|
|
|
March 31,
|
|
|
|
2021
|
|
Reconciliation of
net loss to Adjusted EBITDAX:
|
|
|
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(944,586)
|
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
11,881
|
|
Unrealized commodity
derivative gains
|
|
|
1,262,996
|
|
Proceeds from
derivative monetizations
|
|
|
(9,007)
|
|
Amortization of
deferred revenue, VPP
|
|
|
(25,657)
|
|
Loss on sale of
assets
|
|
|
348
|
|
Interest expense,
net
|
|
|
189,513
|
|
Gain on early
extinguishment of debt
|
|
|
123,765
|
|
Loss on convertible
note equitization
|
|
|
(136,916)
|
|
Provision for income
tax benefit
|
|
|
(290,443)
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
859,324
|
|
Impairment of oil and
gas properties
|
|
|
168,612
|
|
Exploration
expense
|
|
|
1,092
|
|
Equity-based
compensation expense
|
|
|
25,630
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(84,089)
|
|
Dividends from
unconsolidated affiliates
|
|
|
171,022
|
|
Contract termination
and rig stacking
|
|
|
14,381
|
|
Transaction
expense
|
|
|
9,535
|
|
|
|
|
1,347,401
|
|
Martica related
adjustments (1)
|
|
|
(69,717)
|
|
Adjusted
EBITDAX
|
|
$
|
1,277,684
|
|
|
|
(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,
|
|
|
|
2020
|
|
2021
|
|
Drilling and
completion costs (as reported; cash basis)
|
|
$
|
300,483
|
|
|
105,131
|
|
Change in accrued
capital costs
|
|
|
8,816
|
|
|
35,753
|
|
Adjusted drilling and
completion costs (accrual basis)
|
|
$
|
309,299
|
|
|
140,884
|
|
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 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 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
March31, 2021.
ANTERO RESOURCES
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
(In thousands, except
per share amounts)
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
March
31,
|
|
|
|
2020
|
|
2021
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
$
|
28,457
|
|
|
86,657
|
|
Accrued
revenue
|
|
|
425,314
|
|
|
446,513
|
|
Derivative
instruments
|
|
|
105,130
|
|
|
41,356
|
|
Other current
assets
|
|
|
15,238
|
|
|
11,781
|
|
Total current
assets
|
|
|
574,139
|
|
|
586,307
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil and gas
properties, at cost (successful efforts method):
|
|
|
|
|
|
|
|
Unproved
properties
|
|
|
1,175,178
|
|
|
1,144,531
|
|
Proved
properties
|
|
|
12,260,713
|
|
|
12,330,278
|
|
Gathering systems and
facilities
|
|
|
5,802
|
|
|
5,802
|
|
Other property and
equipment
|
|
|
74,361
|
|
|
77,826
|
|
|
|
|
13,516,054
|
|
|
13,558,437
|
|
Less accumulated
depletion, depreciation, and amortization
|
|
|
(3,869,116)
|
|
|
(3,990,460)
|
|
Property and
equipment, net
|
|
|
9,646,938
|
|
|
9,567,977
|
|
Operating leases
right-of-use assets
|
|
|
2,613,603
|
|
|
2,549,297
|
|
Derivative
instruments
|
|
|
47,293
|
|
|
43,240
|
|
Investment in
unconsolidated affiliate
|
|
|
255,082
|
|
|
241,158
|
|
Other
assets
|
|
|
13,790
|
|
|
12,403
|
|
Total
assets
|
|
$
|
13,150,845
|
|
|
13,000,382
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
26,728
|
|
|
41,990
|
|
Accounts payable,
related parties
|
|
|
69,860
|
|
|
85,846
|
|
Accrued
liabilities
|
|
|
343,524
|
|
|
350,763
|
|
Revenue distributions
payable
|
|
|
198,117
|
|
|
282,413
|
|
Derivative
instruments
|
|
|
31,242
|
|
|
146,720
|
|
Short-term lease
liabilities
|
|
|
266,024
|
|
|
265,551
|
|
Deferred revenue,
VPP
|
|
|
45,257
|
|
|
43,357
|
|
Other current
liabilities
|
|
|
2,302
|
|
|
4,688
|
|
Total current
liabilities
|
|
|
983,054
|
|
|
1,211,328
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
3,001,593
|
|
|
2,568,686
|
|
Deferred income tax
liability
|
|
|
412,252
|
|
|
395,244
|
|
Derivative
instruments
|
|
|
99,172
|
|
|
98,944
|
|
Long-term lease
liabilities
|
|
|
2,348,785
|
|
|
2,284,680
|
|
Deferred revenue,
VPP
|
|
|
156,024
|
|
|
146,695
|
|
Other
liabilities
|
|
|
59,694
|
|
|
56,856
|
|
Total
liabilities
|
|
|
7,060,574
|
|
|
6,772,433
|
|
Commitments and
contingencies (Notes 13 and 14)
|
|
|
|
|
|
|
|
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; 268,672 shares and
301,190 shares issued and outstanding as of December 31, 2020 and
March 31, 2021, respectively
|
|
|
2,686
|
|
|
3,011
|
|
Additional paid-in
capital
|
|
|
6,195,497
|
|
|
6,317,653
|
|
Accumulated
deficit
|
|
|
(430,478)
|
|
|
(445,977)
|
|
Total stockholders'
equity
|
|
|
5,767,705
|
|
|
5,874,687
|
|
Noncontrolling
interests
|
|
|
322,566
|
|
|
353,262
|
|
Total
equity
|
|
|
6,090,271
|
|
|
6,227,949
|
|
Total liabilities and
equity
|
|
$
|
13,150,845
|
|
|
13,000,382
|
|
ANTERO RESOURCES
CORPORATION
|
Condensed
Consolidated Statements of Operations and Comprehensive
Loss
|
(Unaudited)
|
(In thousands, except
per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2020
|
|
2021
|
|
Revenue and
other:
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
411,082
|
|
|
720,369
|
|
Natural gas liquids
sales
|
|
|
257,673
|
|
|
440,319
|
|
Oil sales
|
|
|
35,646
|
|
|
44,686
|
|
Commodity derivative
fair value gains (losses)
|
|
|
565,833
|
|
|
(177,756)
|
|
Marketing
|
|
|
46,073
|
|
|
164,790
|
|
Amortization of
deferred revenue, VPP
|
|
|
—
|
|
|
11,150
|
|
Other
income
|
|
|
798
|
|
|
640
|
|
Total
revenue
|
|
|
1,317,105
|
|
|
1,204,198
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
25,644
|
|
|
24,547
|
|
Gathering,
compression, processing, and transportation
|
|
|
588,624
|
|
|
605,077
|
|
Production and ad
valorem taxes
|
|
|
25,699
|
|
|
44,697
|
|
Marketing
|
|
|
93,273
|
|
|
162,077
|
|
Exploration
|
|
|
210
|
|
|
219
|
|
Impairment of oil and
gas properties
|
|
|
89,220
|
|
|
34,062
|
|
Depletion,
depreciation, and amortization
|
|
|
199,677
|
|
|
194,026
|
|
Accretion of asset
retirement obligations
|
|
|
1,104
|
|
|
788
|
|
General and
administrative (including equity-based compensation expense of
$3,329 and $5,642 in 2020 and 2021, respectively)
|
|
|
31,221
|
|
|
44,074
|
|
Contract termination
and rig stacking
|
|
|
—
|
|
|
91
|
|
Total operating
expenses
|
|
|
1,054,672
|
|
|
1,109,658
|
|
Operating
income
|
|
|
262,433
|
|
|
94,540
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(53,102)
|
|
|
(42,743)
|
|
Equity in earnings
(loss) of unconsolidated affiliate
|
|
|
(128,055)
|
|
|
18,694
|
|
Gain (loss) on early
extinguishment of debt
|
|
|
80,561
|
|
|
(43,204)
|
|
Loss on convertible
note equitization
|
|
|
—
|
|
|
(39,046)
|
|
Impairment of equity
method investment
|
|
|
(610,632)
|
|
|
—
|
|
Transaction
expense
|
|
|
—
|
|
|
(2,291)
|
|
Total other
expenses
|
|
|
(711,228)
|
|
|
(108,590)
|
|
Loss before income
taxes
|
|
|
(448,795)
|
|
|
(14,050)
|
|
Provision for income
tax benefit
|
|
|
109,985
|
|
|
2,946
|
|
Net loss and
comprehensive loss including noncontrolling interests
|
|
|
(338,810)
|
|
|
(11,104)
|
|
Less: net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
—
|
|
|
4,395
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(338,810)
|
|
|
(15,499)
|
|
|
|
|
|
|
|
|
|
Loss per
share—basic
|
|
$
|
(1.19)
|
|
|
(0.05)
|
|
Loss per
share—diluted
|
|
$
|
(1.19)
|
|
|
(0.05)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
284,227
|
|
|
296,746
|
|
Diluted
|
|
|
284,227
|
|
|
296,746
|
|
ANTERO RESOURCES
CORPORATION
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
(In
thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2020
|
|
2021
|
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
Net loss including
noncontrolling interests
|
|
$
|
(338,810)
|
|
|
(11,104)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
200,781
|
|
|
194,814
|
|
Impairments
|
|
|
699,852
|
|
|
34,062
|
|
Commodity derivative
fair value losses (gains)
|
|
|
(565,833)
|
|
|
177,756
|
|
Gains on settled
commodity derivatives
|
|
|
210,926
|
|
|
5,322
|
|
Equity-based
compensation expense
|
|
|
3,329
|
|
|
5,642
|
|
Deferred income tax
benefit
|
|
|
(109,985)
|
|
|
(2,946)
|
|
Equity in (earnings)
loss of unconsolidated affiliate
|
|
|
128,055
|
|
|
(18,694)
|
|
Dividends of earnings
from unconsolidated affiliate
|
|
|
42,756
|
|
|
42,756
|
|
Amortization of
deferred revenue
|
|
|
—
|
|
|
(11,150)
|
|
Amortization of debt
issuance costs, debt discount, debt premium and other
|
|
|
2,440
|
|
|
4,536
|
|
Gain (loss) on early
extinguishment of debt
|
|
|
(80,561)
|
|
|
43,204
|
|
Loss on convertible
note equitization
|
|
|
—
|
|
|
39,046
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(54,514)
|
|
|
(7,200)
|
|
Accrued
revenue
|
|
|
116,566
|
|
|
(21,199)
|
|
Other current
assets
|
|
|
(583)
|
|
|
3,593
|
|
Accounts payable
including related parties
|
|
|
(1,251)
|
|
|
16,527
|
|
Accrued
liabilities
|
|
|
(19,593)
|
|
|
(17,779)
|
|
Revenue distributions
payable
|
|
|
(33,333)
|
|
|
84,296
|
|
Other current
liabilities
|
|
|
435
|
|
|
2,249
|
|
Net cash provided by
operating activities
|
|
|
200,677
|
|
|
563,731
|
|
Cash flows provided
by (used in) investing activities:
|
|
|
|
|
|
|
|
Additions to unproved
properties
|
|
|
(10,357)
|
|
|
(14,691)
|
|
Drilling and
completion costs
|
|
|
(300,483)
|
|
|
(105,131)
|
|
Additions to other
property and equipment
|
|
|
(771)
|
|
|
(3,336)
|
|
Settlement of water
earnout
|
|
|
125,000
|
|
|
—
|
|
Change in other
liabilities
|
|
|
—
|
|
|
(79)
|
|
Change in other
assets
|
|
|
(70)
|
|
|
262
|
|
Net cash used in
investing activities
|
|
|
(186,681)
|
|
|
(122,975)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
(42,690)
|
|
|
—
|
|
Issuance of senior
notes
|
|
|
—
|
|
|
1,200,000
|
|
Repayment of senior
notes
|
|
|
(300,835)
|
|
|
(660,516)
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
330,000
|
|
|
(873,800)
|
|
Payment of debt
issuance costs
|
|
|
—
|
|
|
(15,370)
|
|
Distributions to
noncontrolling interests in Martica Holdings LLC
|
|
|
—
|
|
|
(24,699)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(32)
|
|
|
(5,645)
|
|
Convertible note
equitization
|
|
|
—
|
|
|
(60,461)
|
|
Other
|
|
|
(439)
|
|
|
(265)
|
|
Net cash used in
financing activities
|
|
|
(13,996)
|
|
|
(440,756)
|
|
Net decrease 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
|
|
$
|
30,089
|
|
|
35,097
|
|
Increase in accounts
payable and accrued liabilities for additions to property and
equipment
|
|
$
|
10,767
|
|
|
35,882
|
|
The following table set forth selected financial data for the
three months ended March 31, 2020 and
2021
|
(Unaudited)
|
|
Amount of
|
|
|
|
|
Three Months Ended
March 31,
|
|
Increase
|
|
Percent
|
|
(in thousands)
|
2020
|
|
2021
|
|
(Decrease)
|
|
Change
|
|
Operating revenues
and other:
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales
|
$
|
411,082
|
|
|
720,369
|
|
$
|
309,287
|
|
75
|
%
|
Natural gas liquids
sales
|
|
257,673
|
|
|
440,319
|
|
|
182,646
|
|
71
|
%
|
Oil sales
|
|
35,646
|
|
|
44,686
|
|
|
9,040
|
|
25
|
%
|
Commodity derivative
fair value gains (losses)
|
|
565,833
|
|
|
(177,756)
|
|
|
(743,589)
|
|
(131)
|
%
|
Gathering,
compression, water handling and treatment
|
|
—
|
|
|
—
|
|
|
—
|
|
*
|
|
Marketing
|
|
46,073
|
|
|
164,790
|
|
|
118,717
|
|
258
|
%
|
Amortization of
deferred revenue, VPP
|
|
—
|
|
|
11,150
|
|
|
11,150
|
|
*
|
|
Other
income
|
|
798
|
|
|
640
|
|
|
(158)
|
|
(20)
|
%
|
Total
revenue
|
|
1,317,105
|
|
|
1,204,198
|
|
|
(112,907)
|
|
(9)
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
25,644
|
|
|
24,547
|
|
|
(1,097)
|
|
(4)
|
%
|
Gathering and
compression
|
|
193,008
|
|
|
220,288
|
|
|
27,280
|
|
14
|
%
|
Processing
|
|
210,236
|
|
|
184,320
|
|
|
(25,916)
|
|
(12)
|
%
|
Transportation
|
|
185,380
|
|
|
200,469
|
|
|
15,089
|
|
8
|
%
|
Production and ad
valorem taxes
|
|
25,699
|
|
|
44,697
|
|
|
18,998
|
|
74
|
%
|
Marketing
|
|
93,273
|
|
|
162,077
|
|
|
68,804
|
|
74
|
%
|
Exploration
|
|
210
|
|
|
219
|
|
|
9
|
|
4
|
%
|
Impairment of oil and
gas properties
|
|
89,220
|
|
|
34,062
|
|
|
(55,158)
|
|
(62)
|
%
|
Depletion,
depreciation, and amortization
|
|
199,677
|
|
|
194,026
|
|
|
(5,651)
|
|
(3)
|
%
|
Accretion of asset
retirement obligations
|
|
1,104
|
|
|
788
|
|
|
(316)
|
|
(29)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
27,892
|
|
|
38,432
|
|
|
10,540
|
|
38
|
%
|
Equity-based
compensation
|
|
3,329
|
|
|
5,642
|
|
|
2,313
|
|
69
|
%
|
Contract termination
and rig stacking
|
|
—
|
|
|
91
|
|
|
91
|
|
*
|
|
Total operating
expenses
|
|
1,054,672
|
|
|
1,109,658
|
|
|
54,986
|
|
5
|
%
|
Operating
income
|
|
262,433
|
|
|
94,540
|
|
|
(167,893)
|
|
(64)
|
%
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
(53,102)
|
|
|
(42,743)
|
|
|
10,359
|
|
(20)
|
%
|
Equity in earnings
(loss) of unconsolidated affiliate
|
|
(128,055)
|
|
|
18,694
|
|
|
146,749
|
|
(115)
|
%
|
Gain (loss) on early
extinguishment of debt
|
|
80,561
|
|
|
(43,204)
|
|
|
(123,765)
|
|
(154)
|
%
|
Loss on convertible
note equitization
|
|
—
|
|
|
(39,046)
|
|
|
(39,046)
|
|
*
|
|
Impairment of equity
method investment
|
|
(610,632)
|
|
|
—
|
|
|
610,632
|
|
*
|
|
Transaction
expenses
|
|
—
|
|
|
(2,291)
|
|
|
(2,291)
|
|
*
|
|
Total other income
(expenses)
|
|
(711,228)
|
|
|
(108,590)
|
|
|
602,638
|
|
(85)
|
%
|
Loss before income
taxes
|
|
(448,795)
|
|
|
(14,050)
|
|
|
434,745
|
|
(97)
|
%
|
Provision for income
tax benefit
|
|
109,985
|
|
|
2,946
|
|
|
(107,039)
|
|
(97)
|
%
|
Net loss and
comprehensive loss including noncontrolling interests
|
|
(338,810)
|
|
|
(11,104)
|
|
|
327,748
|
|
(97)
|
%
|
Less: net income and
comprehensive income attributable to noncontrolling
interests
|
|
—
|
|
|
4,395
|
|
|
4,395
|
|
*
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
(338,810)
|
|
|
(15,499)
|
|
|
323,311
|
|
(95)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
$
|
243,822
|
|
|
519,490
|
|
|
275,668
|
|
113
|
%
|
|
* Not
meaningful
|
The following table set forth selected operating data for the
three months ended March 31, 2020 and
2021:
|
|
|
Amount of
|
|
|
|
|
Three Months Ended
March 31,
|
|
Increase
|
|
Percent
|
|
|
2020
|
|
2021
|
|
(Decrease)
|
|
Change
|
|
Production data
(1) :
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
|
208
|
|
|
207
|
|
|
(1)
|
|
(0)
|
%
|
C2 Ethane
(MBbl)
|
|
4,604
|
|
|
4,405
|
|
|
(199)
|
|
(4)
|
%
|
C3+ NGLs
(MBbl)
|
|
10,833
|
|
|
9,926
|
|
|
(907)
|
|
(8)
|
%
|
Oil (MBbl)
|
|
938
|
|
|
960
|
|
|
22
|
|
2
|
%
|
Combined
(Bcfe)
|
|
306
|
|
|
299
|
|
|
(7)
|
|
(2)
|
%
|
Daily combined
production (MMcfe/d)
|
|
3,366
|
|
|
3,322
|
|
|
(44)
|
|
(1)
|
%
|
Average prices
before effects of derivative settlements
(2):
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
$
|
1.98
|
|
|
3.48
|
|
|
1.50
|
|
76
|
%
|
C2 Ethane (per
Bbl)
|
$
|
5.82
|
|
|
8.20
|
|
|
2.38
|
|
41
|
%
|
C3+ NGLs (per
Bbl)
|
$
|
21.31
|
|
|
40.72
|
|
|
19.41
|
|
91
|
%
|
Oil (per
Bbl)
|
$
|
38.02
|
|
|
46.55
|
|
|
8.53
|
|
22
|
%
|
Weighted Average
Combined (per Mcfe)
|
$
|
2.30
|
|
|
4.03
|
|
|
1.73
|
|
75
|
%
|
Average realized
prices after effects of derivative settlements
(2):
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
$
|
2.88
|
|
|
3.56
|
|
|
0.68
|
|
24
|
%
|
C2 Ethane (per
Bbl)
|
$
|
5.82
|
|
|
7.53
|
|
|
1.71
|
|
29
|
%
|
C3+ NGLs (per
Bbl)
|
$
|
22.56
|
|
|
39.79
|
|
|
17.23
|
|
76
|
%
|
Oil (per
Bbl)
|
$
|
47.29
|
|
|
45.80
|
|
|
(1.49)
|
|
(3)
|
%
|
Weighted Average
Combined (per Mcfe)
|
$
|
2.99
|
|
|
4.05
|
|
|
1.06
|
|
35
|
%
|
Average costs (per
Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
$
|
0.08
|
|
|
0.08
|
|
|
—
|
|
—
|
%
|
Gathering and
compression
|
$
|
0.63
|
|
|
0.74
|
|
|
0.11
|
|
17
|
%
|
Processing
|
$
|
0.69
|
|
|
0.62
|
|
|
(0.07)
|
|
(10)
|
%
|
Transportation
|
$
|
0.61
|
|
|
0.67
|
|
|
0.06
|
|
10
|
%
|
Production and ad
valorem taxes
|
$
|
0.08
|
|
|
0.15
|
|
|
0.07
|
|
88
|
%
|
Marketing expense,
net
|
$
|
0.15
|
|
|
(0.01)
|
|
|
(0.16)
|
|
(107)
|
%
|
Depletion,
depreciation, amortization, and accretion
|
$
|
0.66
|
|
|
0.65
|
|
|
(0.01)
|
|
(2)
|
%
|
General and
administrative (excluding equity-based compensation)
|
$
|
0.09
|
|
|
0.13
|
|
|
0.04
|
|
44
|
%
|
|
|
(1)
|
Production volumes
exclude volumes related to VPP transaction.
|
(2)
|
Average sales
prices shown in the table reflect both 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. 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 does not necessarily reflect their relative economic
value.
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SOURCE Antero Resources Corporation