DENVER, April 27, 2022 /PRNewswire/ -- Antero
Resources Corporation (NYSE: AR) ("Antero Resources",
"Antero", or the "Company") today announced its first 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 March 31, 2022.
First Quarter 2022 Highlights Include:
- Net production averaged 3.2 Bcfe/d, including 160 MBbl/d of
liquids
- Realized pre-hedge natural gas equivalent price of
$6.04 per Mcfe, a $1.09 per Mcfe premium to NYMEX pricing
-
- Realized pre-hedge natural gas price of $5.01 per Mcf, a $0.06 per Mcf premium to NYMEX pricing
- Realized C3+ NGL price of $61.55 per barrel, or 65% of WTI, a 51% increase
from the prior year period
- Net loss was $156 million,
Adjusted Net Income was $360 million
(Non-GAAP)
- Adjusted EBITDAX was $707
million (Non-GAAP); net cash provided by operating
activities was $566 million
- Free Cash Flow was $465
million before Changes in Working Capital
(Non-GAAP)
- Repurchased $100 million of
shares during the quarter at an average price of $27.11 per share
- Total long-term debt and Net Debt at quarter end was
$1.96 billion
- Net Debt to trailing last twelve month Adjusted EBITDAX
declined to 1.1x (Non-GAAP)
Paul Rady, Chairman, Chief
Executive Officer and President of Antero Resources commented,
"Antero's first quarter results highlight our substantial exposure
to rising commodity prices. We realized the highest quarterly NGL
price in company history and benefited from direct exposure to
NYMEX natural gas prices. During the quarter we sold approximately
75% of our natural gas into NYMEX-priced natural gas hubs,
including the LNG fairway along the Gulf Coast and the Cove Point
LNG facility in the Mid-Atlantic region. As LNG export demand
increases, we are uniquely positioned to benefit from increasing
prices due to our 2.3 Bcf/d of firm transportation delivered into
these LNG fairways. We are currently selling nearly 1 Bcf/d of
natural gas directly to LNG facilities on a mix of long-term and
short-term contracts. As this market grows and develops we intend
to utilize our significant firm transportation portfolio to
increase our exposure."
Michael Kennedy, Chief Financial
Officer of Antero Resources said, "We initiated our return of
capital program by repurchasing $100
million of AR shares during the last six weeks of the first
quarter, which approximated 25% of our first quarter Free Cash Flow
estimate. As previously communicated, we expect to use
approximately 25% of Free Cash Flow for share repurchases until the
borrowings on our credit facility are repaid. Our current estimate
forecasts the credit facility to be repaid later in the second
quarter and we then intend to increase our return of capital to
greater than 50% of Free Cash Flow. Looking ahead, we expect in
excess of $2.5 billion of Free Cash
Flow in 2022 and approximately $10
billion of Free Cash Flow through 2026, based on current
commodity prices. This Free Cash Flow outlook allows us to continue
to reduce debt while also returning substantial 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."
Debt Reduction
As of March 31, 2022, Antero's
total debt was $1.96 billion,
including $388 million of borrowings
under the Company's revolving credit facility. Net Debt to trailing
twelve month Adjusted EBITDAX was 1.1x. During the first quarter,
Antero redeemed all $585 million of
outstanding senior notes due 2025 at 101.25% of par, plus accrued
and unpaid interest. The Company used cash on hand and borrowings
under its revolving credit facility to fund this senior note
redemption. Borrowings under the credit facility utilized to fund
the redemption are expected to be paid down during the second
quarter of 2022 with Free Cash Flow.
Share Repurchase Program
In February, Antero's Board of Directors authorized a share
repurchase program for the Company to repurchase up to $1.0 billion of its outstanding common stock.
During the first quarter of 2022, Antero repurchased 3.7 million
shares for $100 million at an average
share price of $27.11.
Free Cash Flow
During the first quarter, Antero generated $465 million of
Free Cash Flow before Changes in Working Capital. Free Cash Flow
after Changes in Working Capital was $315
million.
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Three Months
Ended
March 31,
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2021
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2022
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Net cash provided by
operating activities
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$
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563,731
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565,673
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Less: Net cash used in
investing activities
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(122,975)
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(215,117)
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Less: Proceeds from
sale of assets, net
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—
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(195)
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Less: Distributions to
non-controlling interests in Martica
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(24,699)
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(35,757)
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Free Cash
Flow
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$
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416,057
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314,604
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Changes in Working
Capital (1)
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(96,369)
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150,474
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Free Cash Flow
before Changes in Working Capital
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$
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319,688
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465,078
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(1)
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Working capital
adjustments in the first quarter of 2022 include $136.0 million in
changes in current assets and current liabilities and a $14.5
million decrease in accounts payable and accrued liabilities for
additions to property and equipment.
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First Quarter 2022 Financial Results
Net loss was $156 million, or
$0.50 per diluted share, compared to
net loss of $15 million, or
$0.05 per diluted share, in the prior
year period. Adjusted Net Income was $360
million, or $1.15 per diluted
share, compared to Adjusted Net Income of $183 million, or $0.62 per diluted share, in the prior year
period.
Adjusted EBITDAX was $707 million,
a 36% increase compared to the prior year quarter, driven by higher
realized natural gas and NGL prices.
Net daily natural gas equivalent production in the first quarter
averaged 3.2 Bcfe/d, including 160 MBbl/d of liquids, as
detailed in the table below. As completion activity accelerates
through the second quarter of 2022, production is expected to
increase to a range of 3.3 to 3.4 Bcfe/d in the second half of
2022.
Antero's average realized natural gas price before hedging was
$5.01 per Mcf, representing
a 44% increase compared to the prior year period. Antero realized a
$0.06 per Mcf premium to the
average NYMEX Henry Hub. The premium to NYMEX was negatively
impacted by the sharp increase in the natural gas price on the
final trading day for the February natural gas contract, resulting
in a settlement price of $6.27 per
Mcf, followed by a subsequent decline in natural gas daily prices
for the month. However, Antero expects realized natural gas prices,
before hedges, to be a premium of $0.15 to $0.25 per
Mcf for the full year 2022, unchanged from prior guidance. Antero's
ability to capture a premium to NYMEX is a result of selling the
majority of its gas into the NYMEX-based LNG fairways. In the first
quarter, Antero sold approximately 75% of its natural gas into
these premium priced, NYMEX-related hubs.
The following table details the components of average net
production and average realized prices for the three months ended
March 31, 2022:
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Three Months Ended
March 31, 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
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2,207
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8,042
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107,086
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44,501
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3,165
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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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Average Realized
Prices
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($/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
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$
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5.01
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$
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87.45
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$
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61.55
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$
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16.74
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$
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6.04
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NYMEX average
price
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$
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4.95
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$
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94.45
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$
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4.95
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Premium /
(Differential) to NYMEX
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$
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0.06
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$
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(7.00)
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$
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1.09
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Settled commodity
derivatives (1)
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$
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(1.41)
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$
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(0.69)
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$
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(0.41)
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$
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(0.11)
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$
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(1.01)
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Average realized prices
after settled derivatives
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$
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3.60
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$
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86.76
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$
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61.14
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$
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16.63
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$
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5.03
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Premium /
(Differential) to NYMEX
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$
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(1.35)
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$
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(7.69)
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$
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0.08
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(1)
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These commodity
derivative instruments include contracts attributable to Martica
Holdings LLC ("Martica"), Antero's consolidated variable interest
entity. All gains or losses from Martica's derivative
instruments are fully attributable to the noncontrolling interests
in Martica, which includes portions of the natural gas and all oil
and C3+ NGL derivative instruments during the three months ended
March 31, 2022.
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Antero's average realized C3+ NGL price was $61.55 per barrel, a 51% increase versus the
prior year period. Antero shipped 53% of its total C3+ NGL net
production on Mariner East 2 for export and realized a $0.04 per gallon premium to Mont Belvieu pricing
on these volumes at Marcus Hook, PA. Antero sold the
remaining 47% of C3+ NGL net production at a $0.04 per gallon discount to Mont Belvieu pricing
at Hopedale, OH. The resulting
blended price on 107,086 Bbl/d of net C3+ NGL production was
$61.14 per barrel, which was flat
with Mont Belvieu pricing.
Three Months Ended March 31,
2022
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Pricing
Point
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Net C3+
NGL Production
(Bbl/d)
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% by
Destination
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Premium
(Discount) To Mont
Belvieu
($/Gal)
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Propane / Butane
exported on ME2
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Marcus Hook,
PA
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57,163
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53%
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$0.04
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Remaining C3+ NGL
volume
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Hopedale, OH
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49,923
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47%
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($0.04)
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Total C3+ NGLs/Blended
Premium
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107,086
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100%
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$0.00
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All-in cash expense, which includes lease operating, gathering,
compression, processing and transportation, production and ad
valorem taxes was $2.33 per Mcfe in
the first quarter, a 3% increase compared to $2.26 per Mcfe average during the first quarter
of 2021. The increase was due primarily to higher production taxes
as a result of higher commodity prices during the quarter.
Net marketing expense was $0.10
per Mcfe in the first quarter, an increase from a gain of
$0.01 per Mcfe during the first
quarter of 2021. The gain in the year ago period was due to higher
third party marketing volumes during Winter
Storm Uri.
First Quarter 2022 Operating Update
Antero placed 15 horizontal Marcellus wells to sales during the
first quarter with an average lateral length of 12,707 feet. Nine
of these wells have been online for at least 60 days and the
average 60-day rate per well was 25.5 MMcfe/d, including
approximately 1,416 Bbl/d of liquids assuming 25% ethane
recovery.
First Quarter 2022 Capital Investment
Antero's accrued drilling and completion capital expenditures
for the three months ended March 31,
2022, were $175 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 $24
million in land during the first quarter. A portion of the
land capital was used to acquire 2,500 net acres which hold
approximately 11 incremental drilling locations at an average cost
of less than $1 million per location.
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.
Commodity Derivative Positions
Antero did not enter into any new natural gas, NGL or oil hedges
during the first quarter of 2022. As of March 31, 2022, the Company has hedged
313 Bcf of natural gas for the remainder of 2022 at a weighted
average index price of $2.49 per
MMBtu and 16 Bcf of natural gas in 2023 at a weighted average index
price of $2.37 per MMBtu.
Please see Antero's Quarterly Report on Form 10-Q for the
quarter ended March 31, 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, April 28, 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, May 5, 2022 at
9:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13726236. To
access the live webcast and view the related earnings conference
call presentation, visit Antero's website at
www.anteroresources.com. The webcast will be archived for replay
until Thursday, May 5, 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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Three Months Ended
March 31,
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2021
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2022
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Net loss and
comprehensive loss attributable to Antero Resources
Corporation
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$
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(15,499)
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(156,419)
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Net income (loss) and
comprehensive income (loss) attributable to
noncontrolling
interests
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4,395
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(18,277)
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Unrealized commodity
derivative losses
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183,078
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725,994
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Amortization of
deferred revenue, VPP
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(11,150)
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(9,272)
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Loss on sale of
assets
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—
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1,786
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Impairment of oil and
gas properties
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34,062
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22,462
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Equity-based
compensation
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5,642
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4,649
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Loss on early
extinguishment of debt
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43,204
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10,654
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Loss on convertible
note equitization
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39,046
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—
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Equity in earnings of
unconsolidated affiliate
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(18,694)
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(25,178)
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Contract
termination
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91
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8
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Tax effect of
reconciling items (1)
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(66,243)
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(169,716)
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197,932
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386,691
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Martica adjustments
(2)
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(14,947)
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(26,430)
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Adjusted Net
Income
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$
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182,985
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360,261
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Fully Diluted Shares
Outstanding
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296,746
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314,081
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(1)
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Deferred taxes
were 24% and 23% for 2021 and 2022,
respectively.
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(2)
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Adjustments
reflect noncontrolling interest in Martica not otherwise adjusted
in amounts above.
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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, 2021
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March
31, 2022
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Credit
Facility
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$
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—
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387,700
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5.000% senior notes due
2025
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584,635
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—
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8.375% senior notes due
2026
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325,000
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325,000
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7.625% senior notes due
2029
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584,000
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584,000
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5.375% senior notes due
2030
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600,000
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600,000
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4.250% convertible
senior notes due 2026
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81,570
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81,570
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Unamortized discount,
net
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(27,772)
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—
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Unamortized debt
issuance costs
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(21,989)
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(18,326)
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Total long-term
debt
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$
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2,125,444
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1,959,944
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Less: Cash and cash
equivalents
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—
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—
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Net Debt
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$
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2,125,444
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1,959,944
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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 March 31, 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.
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Three Months Ended
March 31,
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2021
|
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2022
|
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Reconciliation of
net loss to Adjusted EBITDAX:
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Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
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$
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(15,499)
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|
|
(156,419)
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
4,395
|
|
|
(18,277)
|
|
Unrealized commodity
derivative losses
|
|
|
183,078
|
|
|
725,994
|
|
Amortization of
deferred revenue, VPP
|
|
|
(11,150)
|
|
|
(9,272)
|
|
Loss on sale of
assets
|
|
|
—
|
|
|
1,786
|
|
Interest expense,
net
|
|
|
42,743
|
|
|
37,713
|
|
Loss on early
extinguishment of debt
|
|
|
43,204
|
|
|
10,654
|
|
Loss on convertible
note equitizations
|
|
|
39,046
|
|
|
—
|
|
Income tax
benefit
|
|
|
(2,946)
|
|
|
(53,092)
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
194,814
|
|
|
170,832
|
|
Impairment of oil and
gas properties
|
|
|
34,062
|
|
|
22,462
|
|
Exploration
expense
|
|
|
219
|
|
|
898
|
|
Equity-based
compensation expense
|
|
|
5,642
|
|
|
4,649
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(18,694)
|
|
|
(25,178)
|
|
Dividends from
unconsolidated affiliate
|
|
|
42,756
|
|
|
31,285
|
|
Contract termination,
transaction expense and other
|
|
|
2,382
|
|
|
48
|
|
|
|
|
544,052
|
|
|
744,083
|
|
Martica related
adjustments (1)
|
|
|
(24,562)
|
|
|
(37,201)
|
|
Adjusted
EBITDAX
|
|
$
|
519,490
|
|
|
706,882
|
|
|
|
|
|
|
|
|
|
Reconciliation of
our Adjusted EBITDAX to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
519,490
|
|
|
706,882
|
|
Martica related
adjustments (1)
|
|
|
24,562
|
|
|
37,201
|
|
Interest expense,
net
|
|
|
(42,743)
|
|
|
(37,713)
|
|
Exploration
expense
|
|
|
(219)
|
|
|
(898)
|
|
Changes in current
assets and liabilities
|
|
|
60,487
|
|
|
(136,025)
|
|
Transaction
expense
|
|
|
(2,291)
|
|
|
—
|
|
Other items
|
|
|
4,445
|
|
|
(3,774)
|
|
Net cash provided by
operating activities
|
|
$
|
563,731
|
|
|
565,673
|
|
(1)
|
Adjustments
reflect noncontrolling interests in Martica not otherwise adjusted
in amounts above.
|
|
|
|
|
|
|
|
Twelve
|
|
|
|
Months
Ended
|
|
|
|
March 31,
|
|
|
|
2022
|
|
Reconciliation of
net loss to Adjusted EBITDAX:
|
|
|
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(327,819)
|
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
10,118
|
|
Unrealized commodity
derivative losses
|
|
|
1,291,456
|
|
Payments for
derivative monetizations
|
|
|
4,569
|
|
Amortization of
deferred revenue, VPP
|
|
|
(43,358)
|
|
Gain on sale of
assets
|
|
|
(446)
|
|
Interest expense,
net
|
|
|
176,838
|
|
Loss on early
extinguishment of debt
|
|
|
60,641
|
|
Loss on convertible
note equitizations
|
|
|
11,731
|
|
Income tax
benefit
|
|
|
(124,223)
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
721,847
|
|
Impairment of oil and
gas properties
|
|
|
78,923
|
|
Exploration
expense
|
|
|
7,245
|
|
Equity-based
compensation expense
|
|
|
19,444
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(83,569)
|
|
Dividends from
unconsolidated affiliate
|
|
|
125,138
|
|
Contract termination,
transaction expense and other
|
|
|
5,266
|
|
|
|
|
1,933,801
|
|
Martica related
adjustments (1)
|
|
|
(129,107)
|
|
Adjusted
EBITDAX
|
|
$
|
1,804,694
|
|
(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,
|
|
|
|
2021
|
|
2022
|
|
Drilling and completion
costs (cash basis)
|
|
$
|
105,131
|
|
|
184,557
|
|
Change in accrued
capital costs
|
|
|
35,753
|
|
|
(9,744)
|
|
Adjusted drilling and
completion costs (accrual basis)
|
|
$
|
140,884
|
|
|
174,813
|
|
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
March 31, 2022.
ANTERO RESOURCES
CORPORATION Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
March 31,
|
|
|
|
2021
|
|
2022
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
$
|
78,998
|
|
|
45,755
|
|
Accrued
revenue
|
|
|
591,442
|
|
|
660,884
|
|
Derivative
instruments
|
|
|
757
|
|
|
263
|
|
Other current
assets
|
|
|
14,922
|
|
|
17,874
|
|
Total current
assets
|
|
|
686,119
|
|
|
724,776
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
Oil and gas
properties, at cost (successful efforts method):
|
|
|
|
|
|
|
|
Unproved
properties
|
|
|
1,042,118
|
|
|
1,001,420
|
|
Proved
properties
|
|
|
12,646,303
|
|
|
12,786,692
|
|
Gathering systems and
facilities
|
|
|
5,802
|
|
|
5,802
|
|
Other property and
equipment
|
|
|
116,522
|
|
|
123,824
|
|
|
|
|
13,810,745
|
|
|
13,917,738
|
|
Less accumulated
depletion, depreciation, and amortization
|
|
|
(4,283,700)
|
|
|
(4,384,971)
|
|
Property and
equipment, net
|
|
|
9,527,045
|
|
|
9,532,767
|
|
Operating leases
right-of-use assets
|
|
|
3,419,912
|
|
|
3,285,337
|
|
Derivative
instruments
|
|
|
14,369
|
|
|
10,516
|
|
Investment in
unconsolidated affiliate
|
|
|
232,399
|
|
|
234,390
|
|
Other
assets
|
|
|
16,684
|
|
|
15,714
|
|
Total
assets
|
|
$
|
13,896,528
|
|
|
13,803,500
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
24,819
|
|
|
67,769
|
|
Accounts payable,
related parties
|
|
|
76,240
|
|
|
73,259
|
|
Accrued
liabilities
|
|
|
457,244
|
|
|
341,692
|
|
Revenue distributions
payable
|
|
|
444,873
|
|
|
408,347
|
|
Derivative
instruments
|
|
|
559,851
|
|
|
1,152,299
|
|
Short-term lease
liabilities
|
|
|
456,347
|
|
|
455,723
|
|
Deferred revenue,
VPP
|
|
|
37,603
|
|
|
35,864
|
|
Other current
liabilities
|
|
|
11,140
|
|
|
16,099
|
|
Total current
liabilities
|
|
|
2,068,117
|
|
|
2,551,052
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,125,444
|
|
|
1,959,944
|
|
Deferred income tax
liability, net
|
|
|
318,126
|
|
|
254,633
|
|
Derivative
instruments
|
|
|
181,806
|
|
|
311,005
|
|
Long-term lease
liabilities
|
|
|
2,964,115
|
|
|
2,830,175
|
|
Deferred revenue,
VPP
|
|
|
118,366
|
|
|
110,832
|
|
Other
liabilities
|
|
|
54,462
|
|
|
57,175
|
|
Total
liabilities
|
|
|
7,830,436
|
|
|
8,074,816
|
|
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
311,020 shares issued and
outstanding as of December 31,
2021 and March 31, 2022, respectively
|
|
|
3,139
|
|
|
3,110
|
|
Additional paid-in
capital
|
|
|
6,371,398
|
|
|
6,266,506
|
|
Accumulated
deficit
|
|
|
(617,377)
|
|
|
(795,830)
|
|
Total stockholders'
equity
|
|
|
5,757,160
|
|
|
5,473,786
|
|
Noncontrolling
interests
|
|
|
308,932
|
|
|
254,898
|
|
Total
equity
|
|
|
6,066,092
|
|
|
5,728,684
|
|
Total liabilities and
equity
|
|
$
|
13,896,528
|
|
|
13,803,500
|
|
ANTERO RESOURCES
CORPORATION Condensed Consolidated Statements of Operations
and Comprehensive Loss (Unaudited)
(In thousands, except per share amounts)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
2022
|
|
Revenue and
other:
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
720,369
|
|
|
995,792
|
|
Natural gas liquids
sales
|
|
|
440,319
|
|
|
660,305
|
|
Oil sales
|
|
|
44,686
|
|
|
63,294
|
|
Commodity derivative
fair value losses
|
|
|
(177,756)
|
|
|
(1,011,380)
|
|
Marketing
|
|
|
164,790
|
|
|
69,038
|
|
Amortization of
deferred revenue, VPP
|
|
|
11,150
|
|
|
9,272
|
|
Other
income
|
|
|
640
|
|
|
519
|
|
Total
revenue
|
|
|
1,204,198
|
|
|
786,840
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
24,547
|
|
|
17,780
|
|
Gathering,
compression, processing, and transportation
|
|
|
605,077
|
|
|
590,278
|
|
Production and ad
valorem taxes
|
|
|
44,697
|
|
|
52,808
|
|
Marketing
|
|
|
162,077
|
|
|
98,896
|
|
Exploration
|
|
|
219
|
|
|
898
|
|
General and
administrative (including equity-based compensation expense of
$5,642 and $4,649
in 2021 and 2022,
respectively)
|
|
|
44,074
|
|
|
35,691
|
|
Depletion,
depreciation, and amortization
|
|
|
194,026
|
|
|
168,388
|
|
Impairment of oil and
gas properties
|
|
|
34,062
|
|
|
22,462
|
|
Accretion of asset
retirement obligations
|
|
|
788
|
|
|
2,444
|
|
Contract
termination
|
|
|
91
|
|
|
8
|
|
Loss on sale of
assets
|
|
|
—
|
|
|
1,786
|
|
Total operating
expenses
|
|
|
1,109,658
|
|
|
991,439
|
|
Operating income
(loss)
|
|
|
94,540
|
|
|
(204,599)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(42,743)
|
|
|
(37,713)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
18,694
|
|
|
25,178
|
|
Loss on early
extinguishment of debt
|
|
|
(43,204)
|
|
|
(10,654)
|
|
Loss on convertible
note equitization
|
|
|
(39,046)
|
|
|
—
|
|
Transaction
expense
|
|
|
(2,291)
|
|
|
—
|
|
Total other
expense
|
|
|
(108,590)
|
|
|
(23,189)
|
|
Loss before income
taxes
|
|
|
(14,050)
|
|
|
(227,788)
|
|
Income tax
benefit
|
|
|
2,946
|
|
|
53,092
|
|
Net loss and
comprehensive loss including noncontrolling interests
|
|
|
(11,104)
|
|
|
(174,696)
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
4,395
|
|
|
(18,277)
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(15,499)
|
|
|
(156,419)
|
|
|
|
|
|
|
|
|
|
Loss per
share—basic
|
|
$
|
(0.05)
|
|
|
(0.50)
|
|
Loss per
share—diluted
|
|
$
|
(0.05)
|
|
|
(0.50)
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
296,746
|
|
|
314,081
|
|
Diluted
|
|
|
296,746
|
|
|
314,081
|
|
ANTERO RESOURCES
CORPORATION Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2021
|
|
2022
|
|
Cash flows provided
by (used in) operating activities:
|
|
|
|
|
|
|
|
Net loss including
noncontrolling interests
|
|
$
|
(11,104)
|
|
|
(174,696)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
194,814
|
|
|
170,832
|
|
Impairments
|
|
|
34,062
|
|
|
22,462
|
|
Commodity derivative
fair value losses
|
|
|
177,756
|
|
|
1,011,380
|
|
Gains (losses) on
settled commodity derivatives
|
|
|
5,322
|
|
|
(285,386)
|
|
Deferred income tax
benefit
|
|
|
(2,946)
|
|
|
(57,383)
|
|
Equity-based
compensation expense
|
|
|
5,642
|
|
|
4,649
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(18,694)
|
|
|
(25,178)
|
|
Dividends of earnings
from unconsolidated affiliate
|
|
|
42,756
|
|
|
31,285
|
|
Amortization of
deferred revenue
|
|
|
(11,150)
|
|
|
(9,272)
|
|
Amortization of debt
issuance costs, debt discount and debt premium
|
|
|
4,536
|
|
|
1,451
|
|
Settlement of asset
retirement obligations
|
|
|
—
|
|
|
(886)
|
|
Loss on sale of
assets
|
|
|
—
|
|
|
1,786
|
|
Loss on early
extinguishment of debt
|
|
|
43,204
|
|
|
10,654
|
|
Loss on convertible
note equitizations
|
|
|
39,046
|
|
|
—
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(7,200)
|
|
|
33,244
|
|
Accrued
revenue
|
|
|
(21,199)
|
|
|
(69,442)
|
|
Other current
assets
|
|
|
3,593
|
|
|
(2,952)
|
|
Accounts payable
including related parties
|
|
|
16,527
|
|
|
37,664
|
|
Accrued
liabilities
|
|
|
(17,779)
|
|
|
(94,456)
|
|
Revenue distributions
payable
|
|
|
84,296
|
|
|
(36,526)
|
|
Other current
liabilities
|
|
|
2,249
|
|
|
(3,557)
|
|
Net cash provided by
operating activities
|
|
|
563,731
|
|
|
565,673
|
|
Cash flows provided
by (used in) investing activities:
|
|
|
|
|
|
|
|
Additions to unproved
properties
|
|
|
(14,691)
|
|
|
(23,789)
|
|
Drilling and
completion costs
|
|
|
(105,131)
|
|
|
(184,557)
|
|
Additions to other
property and equipment
|
|
|
(3,336)
|
|
|
(7,530)
|
|
Proceeds from asset
sales
|
|
|
—
|
|
|
195
|
|
Change in other
assets
|
|
|
262
|
|
|
564
|
|
Change in other
liabilities
|
|
|
(79)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(122,975)
|
|
|
(215,117)
|
|
Cash flows provided
by (used in) financing activities:
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
(100,045)
|
|
Issuance of senior
notes
|
|
|
1,200,000
|
|
|
—
|
|
Repayment of senior
notes
|
|
|
(660,516)
|
|
|
(591,943)
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
(873,800)
|
|
|
387,700
|
|
Payment of debt
issuance costs
|
|
|
(15,370)
|
|
|
—
|
|
Distributions to
noncontrolling interests in Martica Holdings LLC
|
|
|
(24,699)
|
|
|
(35,757)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(5,645)
|
|
|
(10,377)
|
|
Convertible note
equitizations
|
|
|
(60,461)
|
|
|
—
|
|
Other
|
|
|
(265)
|
|
|
(134)
|
|
Net cash used in
financing activities
|
|
|
(440,756)
|
|
|
(350,556)
|
|
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
|
|
$
|
35,097
|
|
|
80,454
|
|
Increase (decrease) in
accounts payable and accrued liabilities for additions to property
and equipment
|
|
$
|
35,882
|
|
|
(14,449)
|
|
The following table
set forth unaudited selected financial data for the three months
ended March 31, 2021 and 2022:
|
|
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
720,369
|
|
|
995,792
|
|
|
275,423
|
|
38
|
%
|
Natural gas liquids
sales
|
|
|
440,319
|
|
|
660,305
|
|
|
219,986
|
|
50
|
%
|
Oil sales
|
|
|
44,686
|
|
|
63,294
|
|
|
18,608
|
|
42
|
%
|
Commodity derivative
fair value losses
|
|
|
(177,756)
|
|
|
(1,011,380)
|
|
|
(833,624)
|
|
*
|
|
Marketing
|
|
|
164,790
|
|
|
69,038
|
|
|
(95,752)
|
|
(58)
|
%
|
Amortization of
deferred revenue, VPP
|
|
|
11,150
|
|
|
9,272
|
|
|
(1,878)
|
|
(17)
|
%
|
Other
income
|
|
|
640
|
|
|
519
|
|
|
(121)
|
|
(19)
|
%
|
Total
revenue
|
|
|
1,204,198
|
|
|
786,840
|
|
|
(417,358)
|
|
(35)
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
24,547
|
|
|
17,780
|
|
|
(6,767)
|
|
(28)
|
%
|
Gathering and
compression
|
|
|
220,288
|
|
|
201,462
|
|
|
(18,826)
|
|
(9)
|
%
|
Processing
|
|
|
184,320
|
|
|
190,601
|
|
|
6,281
|
|
3
|
%
|
Transportation
|
|
|
200,469
|
|
|
198,215
|
|
|
(2,254)
|
|
(1)
|
%
|
Production and ad
valorem taxes
|
|
|
44,697
|
|
|
52,808
|
|
|
8,111
|
|
18
|
%
|
Marketing
|
|
|
162,077
|
|
|
98,896
|
|
|
(63,181)
|
|
(39)
|
%
|
Exploration
|
|
|
219
|
|
|
898
|
|
|
679
|
|
*
|
|
General and
administrative (excluding equity-based compensation)
|
|
|
38,432
|
|
|
31,042
|
|
|
(7,390)
|
|
(19)
|
%
|
Equity-based
compensation
|
|
|
5,642
|
|
|
4,649
|
|
|
(993)
|
|
(18)
|
%
|
Depletion,
depreciation, and amortization
|
|
|
194,026
|
|
|
168,388
|
|
|
(25,638)
|
|
(13)
|
%
|
Impairment of oil and
gas properties
|
|
|
34,062
|
|
|
22,462
|
|
|
(11,600)
|
|
(34)
|
%
|
Accretion of asset
retirement obligations
|
|
|
788
|
|
|
2,444
|
|
|
1,656
|
|
*
|
|
Contract
termination
|
|
|
91
|
|
|
8
|
|
|
(83)
|
|
(91)
|
%
|
Loss on sale of
assets
|
|
|
—
|
|
|
1,786
|
|
|
1,786
|
|
*
|
|
Total operating
expenses
|
|
|
1,109,658
|
|
|
991,439
|
|
|
(118,219)
|
|
(11)
|
%
|
Operating income
(loss)
|
|
|
94,540
|
|
|
(204,599)
|
|
|
(299,139)
|
|
*
|
|
Other earnings
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(42,743)
|
|
|
(37,713)
|
|
|
5,030
|
|
(12)
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
18,694
|
|
|
25,178
|
|
|
6,484
|
|
35
|
%
|
Loss on early
extinguishment of debt
|
|
|
(43,204)
|
|
|
(10,654)
|
|
|
32,550
|
|
(75)
|
%
|
Loss on convertible
note equitizations
|
|
|
(39,046)
|
|
|
—
|
|
|
39,046
|
|
*
|
|
Transaction
expenses
|
|
|
(2,291)
|
|
|
—
|
|
|
2,291
|
|
*
|
|
Total other
expense
|
|
|
(108,590)
|
|
|
(23,189)
|
|
|
85,401
|
|
(79)
|
%
|
Loss before income
taxes
|
|
|
(14,050)
|
|
|
(227,788)
|
|
|
(213,738)
|
|
*
|
|
Income tax
benefit
|
|
|
2,946
|
|
|
53,092
|
|
|
50,146
|
|
*
|
|
Net loss and
comprehensive loss including noncontrolling interests
|
|
|
(11,104)
|
|
|
(174,696)
|
|
|
(163,592)
|
|
*
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
4,395
|
|
|
(18,277)
|
|
|
(22,672)
|
|
*
|
|
Net loss and
comprehensive loss attributable to Antero Resources
Corporation
|
|
$
|
(15,499)
|
|
|
(156,419)
|
|
|
(140,920)
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
519,490
|
|
|
706,882
|
|
|
187,392
|
|
36
|
%
|
The following table
set forth selected operating data for the three months ended March
31, 2021 and 2022:
|
|
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
March 31,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Production data
(1) (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
|
|
207
|
|
|
199
|
|
|
(8)
|
|
(4)
|
%
|
C2 Ethane
(MBbl)
|
|
|
4,405
|
|
|
4,005
|
|
|
(400)
|
|
(9)
|
%
|
C3+ NGLs
(MBbl)
|
|
|
9,926
|
|
|
9,638
|
|
|
(288)
|
|
(3)
|
%
|
Oil (MBbl)
|
|
|
960
|
|
|
724
|
|
|
(236)
|
|
(25)
|
%
|
Combined
(Bcfe)
|
|
|
299
|
|
|
285
|
|
|
(14)
|
|
(5)
|
%
|
Daily combined
production (MMcfe/d)
|
|
|
3,322
|
|
|
3,165
|
|
|
(157)
|
|
(5)
|
%
|
Average prices
before effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
3.48
|
|
|
5.01
|
|
|
1.53
|
|
44
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
8.20
|
|
|
16.74
|
|
|
8.54
|
|
104
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
40.72
|
|
|
61.55
|
|
|
20.83
|
|
51
|
%
|
Oil (per
Bbl)
|
|
$
|
46.55
|
|
|
87.45
|
|
|
40.90
|
|
88
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
4.03
|
|
|
6.04
|
|
|
2.01
|
|
50
|
%
|
Average realized
prices after effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
3.56
|
|
|
3.60
|
|
|
0.04
|
|
1
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
7.53
|
|
|
16.63
|
|
|
9.10
|
|
121
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
39.79
|
|
|
61.14
|
|
|
21.35
|
|
54
|
%
|
Oil (per
Bbl)
|
|
$
|
45.80
|
|
|
86.76
|
|
|
40.96
|
|
89
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
4.05
|
|
|
5.03
|
|
|
0.98
|
|
24
|
%
|
Average costs (per
Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.08
|
|
|
0.06
|
|
|
(0.02)
|
|
(25)
|
%
|
Gathering and
compression
|
|
$
|
0.74
|
|
|
0.71
|
|
|
(0.03)
|
|
(4)
|
%
|
Processing
|
|
$
|
0.62
|
|
|
0.67
|
|
|
0.05
|
|
8
|
%
|
Transportation
|
|
$
|
0.67
|
|
|
0.70
|
|
|
0.03
|
|
4
|
%
|
Production and ad
valorem taxes
|
|
$
|
0.15
|
|
|
0.19
|
|
|
0.04
|
|
27
|
%
|
Marketing (revenue)
expense, net
|
|
$
|
(0.01)
|
|
|
0.10
|
|
|
0.11
|
|
*
|
|
Depletion,
depreciation, amortization, and accretion
|
|
$
|
0.65
|
|
|
0.60
|
|
|
(0.05)
|
|
(8)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
$
|
0.13
|
|
|
0.11
|
|
|
(0.02)
|
|
(15)
|
%
|
(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