DENVER, July 27,
2022 /PRNewswire/ -- Antero Resources
Corporation (NYSE: AR) ("Antero Resources", "Antero", or
the "Company") today announced its second 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 June 30, 2022.
Second Quarter 2022 Highlights Include:
- Net production averaged 3.2 Bcfe/d, including 166 MBbl/d of
liquids
- Realized pre-hedge natural gas equivalent price of
$8.00 per Mcfe, an $0.83 per Mcfe premium to NYMEX pricing
-
- Realized pre-hedge natural gas price of $7.67 per Mcf, a $0.50 per Mcf premium to NYMEX pricing
- Realized C3+ NGL price of $60.28 per barrel, or 61% of WTI, a 50% increase
from the prior year period
- Net income was $765 million,
Adjusted Net Income was $563 million
(Non-GAAP)
- Adjusted EBITDAX was $953
million (Non-GAAP); net cash provided by operating
activities was $923 million
- Free Cash Flow was $664
million before Changes in Working Capital
(Non-GAAP)
- Reduced total debt by $383
million during the quarter
- Purchased $247 million of
shares during the quarter
- Net Debt at quarter end was $1.58
billion (Non-GAAP)
- Net Debt to trailing last twelve month Adjusted EBITDAX
declined to 0.6x (Non-GAAP)
Paul Rady, Chairman, Chief
Executive Officer and President of Antero Resources commented,
"Antero's second quarter results benefited from outstanding
operations that included higher premiums to benchmark pricing and
excellent well performance. Strong demand for natural gas along the
LNG fairway has led to as much as a $0.25 per MMBtu increase in positive basis
pricing on the Gulf Coast since the beginning of 2022. As
additional LNG facilities are placed in service we anticipate the
premium in basis pricing relative to NYMEX Henry Hub to increase
further. We are uniquely positioned to directly benefit from
increasing NYMEX prices with 75% of our natural gas being sold at
these premium priced hubs in the LNG corridor."
Mr. Rady continued, "Our strong well performance led to second
quarter volumes above prior forecasts. Looking ahead, our five year
development program remains focused on this liquids-rich regime.
Our liquids-rich development plan, consistent well results and
coordinated midstream buildout with Antero Midstream provide us
with confidence that we will continue to execute on our maintenance
capital plan. This allows us to deliver on our production targets
and generate attractive Free Cash Flow for years to come."
Michael Kennedy, Chief Financial
Officer of Antero Resources said, "During the second quarter, we
accelerated our return of capital program by purchasing
approximately $250 million of shares.
At the same time, we reduced debt by nearly $400 million resulting in leverage of just 0.6x.
As previously communicated, we intend to increase our return of
capital during the second half of 2022 to greater than 50% of Free
Cash Flow. Based on today's commodity prices, we anticipate
full-year 2022 shareholder returns to be at the high end of our
previously announced target of 25% to 50% of 2022 Free Cash Flow.
We expect in excess of $2.5 billion
of Free Cash Flow in 2022 and over $10
billion of Free Cash Flow through 2026, based on current
backwardated commodity prices. Today's balance sheet strength and a
strong Free Cash Flow outlook will allow us to deliver increasing
capital returns 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 June 30, 2022, Antero's
total debt was $1.58 billion. Net
Debt to trailing twelve month Adjusted EBITDAX was 0.6x. During the
second quarter, Antero reduced total debt by $383 million, including a $317 million reduction in borrowings under the
credit facility. During the quarter, Antero also repurchased
$62 million aggregate principle
amount of senior notes in the open market and reduced its
convertible debt outstanding by $4
million.
Share Repurchase Program
During the second quarter of 2022, Antero purchased 6.7 million
shares at an average weighted price of $36.66 per share for $247
million. For the first six months of 2022, Antero purchased
11 million shares at a weighted average price of $32.44 per share for $358
million. These purchases includes repurchases of
$100 million in the first quarter of
2022 and $193 million in the second
quarter of 2022 under the share repurchase program and results in
$707 million remaining under the
Board of Directors authorized share repurchase program. Based on
current strip prices and market conditions, Antero anticipates
repurchasing this remaining amount of $707
million under the plan in 2022.
Free Cash Flow
During the second quarter, Antero generated $664 million of Free Cash Flow before Changes in
Working Capital. Free Cash Flow after Changes in Working Capital
was $631 million.
|
|
Three Months
Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Net cash provided by
operating activities
|
|
$
|
308,541
|
|
|
922,712
|
|
Less: Net
cash used in investing activities
|
|
|
(179,903)
|
|
|
(259,717)
|
|
Less:
Proceeds from sale of assets, net
|
|
|
(2,351)
|
|
|
—
|
|
Less:
Distributions to non-controlling interests in Martica
|
|
|
(21,329)
|
|
|
(31,541)
|
|
Free Cash
Flow
|
|
$
|
104,958
|
|
|
631,454
|
|
Changes in
Working Capital (1)
|
|
|
(28,077)
|
|
|
32,279
|
|
Free Cash Flow
before Changes in Working Capital
|
|
$
|
76,881
|
|
|
663,733
|
|
|
|
(1)
|
Working capital
adjustments in the second quarter of 2022 include a decrease of $43
million in changes in current assets and liabilities and an
increase of $11 million in accounts payable and accrued liabilities
for additions to property and equipment. In the second
quarter of 2021, working capital adjustments include an increase of
$21 million in changes in current assets and liabilities and an
increase of $7 million in accounts payable and accrued liabilities
for additions to property and equipment
|
Guidance Update
Antero is increasing guidance for its realized natural gas price
for full-year 2022 to a premium to NYMEX of $0.30 to $0.40 per
Mcf from a previous range of $0.15 to
$0.25 per Mcf, reflecting a 75%
increase at the midpoint. The increase was driven primarily by
higher premiums to NYMEX being realized at the Gulf Coast hubs
where Antero sells a significant portion of its natural gas, as
well as a greater BTU uplift on the Company's natural gas sales
which average 1100 Btu gas in the sales stream.
Antero is revising its cash production expense guidance by 7% to
a range of $2.40 to $2.50 per Mcfe reflecting higher fuel and ad
valorem costs due to the increase in commodity prices.
Antero is also increasing its drilling and completion capital
expenditure guidance by 7% reflecting incremental inflationary
pressure primarily related to higher diesel and steel costs and
development optimization through the retention of preferred crews
through 2022.
Land capital guidance is increasing to a range of $100 to $110
million due to the successful organic leasing program that
has allowed Antero to increase its premium drilling locations in
its liquids-rich fairway. During the second quarter, Antero added
approximately 6,000 net acres which hold approximately 25
incremental drilling locations at an average cost of under
$1.0 million per location. Since
2019, through Antero's organic leasing efforts, the Company has
added approximately 100 drilling locations in the liquids-rich
fairway of Tyler and Wetzel Counties. This equates to approximately
one and a half years of drilling inventory at an average of 65
wells per year under Antero's maintenance capital plan.
|
|
|
Full Year 2022 –
Prior
|
|
Full Year 2022 –
Revised
|
|
Midpoint
|
|
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
Variance
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Realized
Price vs. NYMEX Henry Hub ($/Mcf)
|
$0.15
|
|
$0.25
|
|
$0.30
|
|
$0.40
|
|
75 %
|
Cash Production
Expense ($/Mcfe)
|
$2.25
|
|
$2.35
|
|
$2.40
|
|
$2.50
|
|
7 %
|
|
|
|
|
|
|
|
|
|
|
Drilling and
Completion Capital ($MM)
|
$675
|
|
$700
|
|
$725
|
|
$750
|
|
7 %
|
Land Capital
($MM)
|
$65
|
|
$75
|
|
$100
|
|
$110
|
|
50 %
|
|
Note: Any 2022
projections not discussed in this release are unchanged from
previously stated guidance.
|
Second Quarter 2022 Operating Update
Marcellus - Antero placed 11 horizontal Marcellus
wells to sales during the second quarter with an average lateral
length of 13,714 feet. Well performance continues to be strong with
several notable pads placed to sales during the first half of the
year that helped drive second quarter volumes above prior
forecasts. The payout periods at these three pads are projected to
be four months from the turn in line date. These include:
- A six well pad with an average 60-day rate per well of 32.1
MMcfe/d, including approximately 1,631 Bbl/d of liquids per well
assuming 25% ethane recovery
- A five well pad with an average 60-day rate per well of 30.1
MMcfe/d, including approximately 1,341 Bbl/d of liquids per well
assuming 25% ethane recovery
- A nine well pad with an average 60-day rate per well of 26.0
MMcfe/d, including approximately 1,387 Bbl/d of liquids per well
assuming 25% ethane recovery
Utica - Antero placed six horizontal Utica wells
to sales during the second quarter with an average lateral length
of 15,272 feet. All six of these wells have been on line for at
least 60 days and the average 60-day rate per well was 28.7
MMcfe/d, including an Antero record of approximately 1,749 Bbl/d of
liquids per well assuming 0% ethane recovery. The payout period at
this pad is projected to be five months from the turn in line
date.
Second Quarter 2022 Financial Results
Net daily natural gas equivalent production in the second
quarter averaged over 3.2 Bcfe/d, including 166 MBbl/d of
liquids, as detailed in the table below. During the first half of
2022 production averaged approximately 3.2 Bcfe/d, at the high end
of the guidance range of 3.1 to 3.2 Bcfe/d. Due to a later start up
of the Shell Cracker than previously forecast, Antero anticipates
third quarter production volumes will be 3.2 to 3.3 Bcfe/d and
fourth quarter 2022 production volumes to be 3.3 to 3.4 Bcfe/d.
Full year 2022 production guidance remains unchanged at a range of
3.2 to 3.3 Bcfe/d.
Antero's average realized natural gas price before hedging was
$8.00 per Mcf, representing
a 112% increase compared to the prior year period. Antero realized
a $0.50 per Mcf premium to the
average NYMEX Henry Hub. The realized natural gas price benefited
from higher premiums to NYMEX at the price hubs where Antero sells
its natural gas in the LNG fairway of the Gulf Coast. Antero sells
approximately 75% of its natural gas into these premium priced
NYMEX-related hubs.
The following table details average net production and average
realized prices for the three months ended June 30, 2022:
|
|
Three Months Ended
June 30, 2022
|
|
|
|
|
|
|
|
|
|
|
|
Combined
|
|
|
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
|
|
(MMcf/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(Bbl/d)
|
|
(MMcfe/d)
|
|
Average Net
Production
|
|
|
2,233
|
|
|
9,951
|
|
|
111,603
|
|
|
44,229
|
|
|
3,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural
|
|
|
|
Natural
Gas
|
|
Oil
|
|
C3+
NGLs
|
|
Ethane
|
|
Gas
Equivalent
|
|
Average Realized
Prices
|
|
($/Mcf)
|
|
($/Bbl)
|
|
($/Bbl)
|
|
($/Bbl)
|
|
($/Mcfe)
|
|
Average realized prices
before settled derivatives
|
|
$
|
7.67
|
|
$
|
98.49
|
|
$
|
60.28
|
|
$
|
22.42
|
|
$
|
8.00
|
|
NYMEX average
price
|
|
$
|
7.17
|
|
$
|
108.72
|
|
|
|
|
|
|
|
$
|
7.17
|
|
Premium / (Discount) to
NYMEX
|
|
$
|
0.50
|
|
$
|
(10.23)
|
|
|
|
|
|
|
|
$
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Settled commodity
derivatives
|
|
$
|
(2.73)
|
|
$
|
(0.76)(1)
|
|
$
|
(0.44)
(1)
|
|
$
|
—
|
|
$
|
(1.90)
|
|
Average realized prices
after settled derivatives
|
|
$
|
4.94
|
|
$
|
97.73
|
|
$
|
59.84
|
|
$
|
22.42
|
|
$
|
6.10
|
|
Premium / (Discount) to
NYMEX
|
|
$
|
(2.23)
|
|
$
|
(10.99)
|
|
|
|
|
|
|
|
$
|
(1.07)
|
|
|
|
(1)
|
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
June 30, 2022.
|
Antero's average realized C3+ NGL price was $60.28 per barrel, a 50% increase versus the
prior year period. Antero shipped 58% of its total C3+ NGL net
production on Mariner East 2 for export and realized a $0.09 per gallon premium to Mont Belvieu pricing
on these volumes at Marcus Hook, PA. Antero sold the
remaining 42% of C3+ NGL net production at a $0.08 per gallon discount to Mont Belvieu pricing
at Hopedale, OH. The resulting
blended price on 111,603 Bbl/d of net C3+ NGL production was a
$0.02 per gallon premium to Mont
Belvieu pricing.
|
|
Three Months
Ended June 30, 2022
|
|
|
Pricing
Point
|
|
Net C3+
NGL
Production
(Bbl/d)
|
|
% by
Destination
|
|
Premium
(Discount)
To Mont Belvieu
($/Gal)
|
Propane / Butane
exported on ME2
|
Marcus Hook,
PA
|
|
65,246
|
|
58 %
|
|
$0.09
|
Remaining C3+ NGL
volume
|
Hopedale, OH
|
|
46,357
|
|
42 %
|
|
($0.08)
|
Total C3+ NGLs/Blended
Premium
|
|
|
|
111,603
|
|
100 %
|
|
$0.02
|
All-in cash expense, which includes lease operating, gathering,
compression, processing and transportation, production and ad
valorem taxes was $2.61 per Mcfe in
the second quarter, a 13% increase compared to $2.30 per Mcfe average during the second quarter
of 2021. The increase was due primarily to higher natural gas and
diesel fuel costs that impacted gathering, processing and
transportation costs and an increase in production taxes as a
result of higher commodity prices during the quarter.
Net marketing expense was $0.09
per Mcfe in the second quarter, a decrease from $0.11 per Mcfe during the second quarter of 2021
due to higher gas marketing margins from the year ago period.
Second Quarter 2022 Capital Investment
Antero's accrued drilling and completion capital expenditures
for the three months ended June 30,
2022, were $217 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 $49
million in land during the second quarter. A portion of the
land capital was used to acquire approximately 6,000 net acres
which hold approximately 25 incremental drilling locations at an
average cost of under $1.0 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 second quarter of 2022.
Please see Antero's Quarterly Report on Form 10-Q for the
quarter ended June 30, 2022, for more
information on all commodity derivative positions. For detail
on current commodity positions, please see the Hedge Profile
presentations at www.anteroresources.com.
Conference Call
A conference call is scheduled on Thursday, July 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, August 4, 2022 at
9:00 am MT at 877-660-6853 (U.S.) or
201-612-7415 (International) using the conference ID: 13726239. 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, August 4, 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):
|
|
Three Months Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(523,467)
|
|
|
765,135
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(10,984)
|
|
|
46,898
|
|
Unrealized commodity
derivative (gains) losses
|
|
|
756,998
|
|
|
(293,665)
|
|
Amortization of
deferred revenue, VPP
|
|
|
(11,279)
|
|
|
(9,375)
|
|
Loss (gain) on sale of
assets
|
|
|
(2,288)
|
|
|
71
|
|
Impairment of oil and
gas properties
|
|
|
9,303
|
|
|
23,363
|
|
Equity-based
compensation
|
|
|
4,249
|
|
|
8,171
|
|
Loss on early
extinguishment of debt
|
|
|
23,065
|
|
|
4,414
|
|
Loss on convertible
note equitization
|
|
|
11,731
|
|
|
—
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(17,477)
|
|
|
(14,713)
|
|
Contract
termination
|
|
|
844
|
|
|
2,096
|
|
Tax effect of
reconciling items (1)
|
|
|
(187,629)
|
|
|
64,914
|
|
|
|
|
57,635
|
|
|
597,309
|
|
Martica adjustments
(2)
|
|
|
(16,097)
|
|
|
(34,637)
|
|
Adjusted Net
Income
|
|
$
|
41,538
|
|
|
562,672
|
|
|
|
|
|
|
|
|
|
Fully Diluted Shares
Outstanding (3)
|
|
|
307,879
|
|
|
334,561
|
|
|
|
(1)
|
Deferred taxes were
24% and 23% for 2021 and 2022, respectively.
|
(2)
|
Adjustments reflect
noncontrolling interest in Martica not otherwise adjusted in
amounts above.
|
(3)
|
Fully diluted shares outstanding does not include
securities that would have had an anti-dilutive effect on the
computation of diluted earnings (loss) per share.
Anti-dilutive weighted average shares outstanding for the three
months ended June 30, 2021 and 2022 were 28.6 million and 0.4
million, respectively.
|
Net Debt
Net Debt is calculated as total debt less cash and cash
equivalents. Management uses Net Debt to evaluate the
Company's financial position, including its ability to service its
debt obligations.
The following table reconciles consolidated total long-term debt
to Net Debt as used in this release (in thousands):
|
|
December
31,
|
|
June 30,
|
|
|
|
2021
|
|
2022
|
|
Credit
Facility
|
|
$
|
—
|
|
|
70,800
|
|
5.000% senior notes due
2025
|
|
|
584,635
|
|
|
—
|
|
8.375% senior notes due
2026
|
|
|
325,000
|
|
|
311,767
|
|
7.625% senior notes due
2029
|
|
|
584,000
|
|
|
534,000
|
|
5.375% senior notes due
2030
|
|
|
600,000
|
|
|
600,000
|
|
4.250% convertible
senior notes due 2026
|
|
|
81,570
|
|
|
77,570
|
|
Unamortized discount,
net
|
|
|
(27,772)
|
|
|
—
|
|
Unamortized debt
issuance costs
|
|
|
(21,989)
|
|
|
(16,924)
|
|
Total long-term
debt
|
|
$
|
2,125,444
|
|
|
1,577,213
|
|
Less: Cash and cash
equivalents
|
|
|
—
|
|
|
—
|
|
Net Debt
|
|
$
|
2,125,444
|
|
|
1,577,213
|
|
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 June 30, 2021
and 2022. Adjusted EBITDAX also excludes the noncontrolling
interests in Martica and these adjustments are disclosed in the
table below as Martica related adjustments.
|
|
Three Months Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Reconciliation of
net income (loss) to Adjusted EBITDAX:
|
|
|
|
|
|
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(523,467)
|
|
|
765,135
|
|
Net income (loss) and
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
(10,984)
|
|
|
46,898
|
|
Unrealized commodity
derivative (gains) losses
|
|
|
756,998
|
|
|
(293,665)
|
|
Payments for
derivative monetizations
|
|
|
4,569
|
|
|
—
|
|
Amortization of
deferred revenue, VPP
|
|
|
(11,279)
|
|
|
(9,375)
|
|
Loss (gain) on sale of
assets
|
|
|
(2,288)
|
|
|
71
|
|
Interest expense,
net
|
|
|
49,963
|
|
|
34,213
|
|
Loss on early
extinguishment of debt
|
|
|
23,065
|
|
|
4,414
|
|
Loss on convertible
note equitizations
|
|
|
11,731
|
|
|
—
|
|
Income tax expense
(benefit)
|
|
|
(175,966)
|
|
|
225,571
|
|
Depletion,
depreciation, amortization, and accretion
|
|
|
188,661
|
|
|
174,199
|
|
Impairment of oil and
gas properties
|
|
|
9,303
|
|
|
23,363
|
|
Exploration
expense
|
|
|
5,638
|
|
|
862
|
|
Equity-based
compensation expense
|
|
|
4,249
|
|
|
8,171
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(17,477)
|
|
|
(14,713)
|
|
Dividends from
unconsolidated affiliate
|
|
|
31,284
|
|
|
31,284
|
|
Contract termination,
transaction expense and other
|
|
|
1,029
|
|
|
2,129
|
|
|
|
|
345,029
|
|
|
998,557
|
|
Martica related
adjustments (1)
|
|
|
(25,677)
|
|
|
(45,305)
|
|
Adjusted
EBITDAX
|
|
$
|
319,352
|
|
|
953,252
|
|
|
|
|
|
|
|
|
|
Reconciliation of
our Adjusted EBITDAX to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
319,352
|
|
|
953,252
|
|
Martica related
adjustments (1)
|
|
|
25,677
|
|
|
45,305
|
|
Interest expense,
net
|
|
|
(49,963)
|
|
|
(34,213)
|
|
Exploration
expense
|
|
|
(5,638)
|
|
|
(862)
|
|
Changes in current
assets and liabilities
|
|
|
21,370
|
|
|
(43,224)
|
|
Transaction
expense
|
|
|
(185)
|
|
|
—
|
|
Payments for
derivative monetizations
|
|
|
(4,569)
|
|
|
—
|
|
Other items
|
|
|
2,497
|
|
|
2,454
|
|
Net cash provided by
operating activities
|
|
$
|
308,541
|
|
|
922,712
|
|
|
|
(1)
|
Adjustments reflect
noncontrolling interests in Martica not otherwise adjusted in
amounts above.
|
|
|
Twelve
|
|
|
Months
Ended
|
|
|
June 30,
|
|
|
2022
|
Reconciliation of
net income to Adjusted EBITDAX:
|
|
|
|
Net income and
comprehensive income attributable to Antero Resources
Corporation
|
|
$
|
960,783
|
Net income and
comprehensive income attributable to noncontrolling
interests
|
|
|
68,000
|
Unrealized commodity
derivative losses
|
|
|
240,793
|
Amortization of
deferred revenue, VPP
|
|
|
(41,454)
|
Loss on sale of
assets
|
|
|
1,913
|
Interest expense,
net
|
|
|
161,088
|
Loss on early
extinguishment of debt
|
|
|
41,990
|
Income tax
expense
|
|
|
277,314
|
Depletion,
depreciation, amortization, and accretion
|
|
|
707,385
|
Impairment of oil and
gas properties
|
|
|
92,983
|
Exploration
|
|
|
2,469
|
Equity-based
compensation expense
|
|
|
23,366
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(80,805)
|
Dividends from
unconsolidated affiliate
|
|
|
125,138
|
Contract termination,
transaction expense and other
|
|
|
6,366
|
|
|
|
2,587,329
|
Martica related
adjustments (1)
|
|
|
(148,735)
|
Adjusted
EBITDAX
|
|
$
|
2,438,594
|
|
|
(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
June 30,
|
|
|
|
2021
|
|
2022
|
|
Drilling and completion
costs (cash basis)
|
|
$
|
168,825
|
|
|
208,949
|
|
Change in accrued
capital costs
|
|
|
(2,041)
|
|
|
7,842
|
|
Adjusted drilling and
completion costs (accrual basis)
|
|
$
|
166,784
|
|
|
216,791
|
|
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
June 30, 2022.
ANTERO RESOURCES
CORPORATION Condensed Consolidated Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
December
31,
|
|
June 30,
|
|
|
|
2021
|
|
2022
|
|
Assets
|
|
Current
assets:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
$
|
78,998
|
|
|
25,375
|
|
Accrued
revenue
|
|
|
591,442
|
|
|
952,054
|
|
Derivative
instruments
|
|
|
757
|
|
|
578
|
|
Other current
assets
|
|
|
14,922
|
|
|
37,490
|
|
Total current
assets
|
|
|
686,119
|
|
|
1,015,497
|
|
Property and
equipment:
|
|
|
|
|
|
|
|
Oil and gas
properties, at cost (successful efforts method):
|
|
|
|
|
|
|
|
Unproved
properties
|
|
|
1,042,118
|
|
|
1,014,497
|
|
Proved
properties
|
|
|
12,646,303
|
|
|
12,910,737
|
|
Gathering systems and
facilities
|
|
|
5,802
|
|
|
5,802
|
|
Other property and
equipment
|
|
|
116,522
|
|
|
126,807
|
|
|
|
|
13,810,745
|
|
|
14,057,843
|
|
Less accumulated
depletion, depreciation, and amortization
|
|
|
(4,283,700)
|
|
|
(4,466,297)
|
|
Property and
equipment, net
|
|
|
9,527,045
|
|
|
9,591,546
|
|
Operating leases
right-of-use assets
|
|
|
3,419,912
|
|
|
3,355,622
|
|
Derivative
instruments
|
|
|
14,369
|
|
|
7,058
|
|
Investment in
unconsolidated affiliate
|
|
|
232,399
|
|
|
229,095
|
|
Other assets
|
|
|
16,684
|
|
|
13,882
|
|
Total
assets
|
|
$
|
13,896,528
|
|
|
14,212,700
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
24,819
|
|
|
87,860
|
|
Accounts payable,
related parties
|
|
|
76,240
|
|
|
72,871
|
|
Accrued
liabilities
|
|
|
457,244
|
|
|
496,677
|
|
Revenue distributions
payable
|
|
|
444,873
|
|
|
485,039
|
|
Derivative
instruments
|
|
|
559,851
|
|
|
773,357
|
|
Short-term lease
liabilities
|
|
|
456,347
|
|
|
506,724
|
|
Deferred revenue,
VPP
|
|
|
37,603
|
|
|
34,107
|
|
Other current
liabilities
|
|
|
11,140
|
|
|
18,769
|
|
Total current
liabilities
|
|
|
2,068,117
|
|
|
2,475,404
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,125,444
|
|
|
1,577,213
|
|
Deferred income tax
liability, net
|
|
|
318,126
|
|
|
483,722
|
|
Derivative
instruments
|
|
|
181,806
|
|
|
393,139
|
|
Long-term lease
liabilities
|
|
|
2,964,115
|
|
|
2,849,598
|
|
Deferred revenue,
VPP
|
|
|
118,366
|
|
|
103,215
|
|
Other
liabilities
|
|
|
54,462
|
|
|
56,546
|
|
Total
liabilities
|
|
|
7,830,436
|
|
|
7,938,837
|
|
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 and 308,812
shares issued and outstanding, as of December 31, 2021 and
June 30, 2022, respectively
|
|
|
3,139
|
|
|
3,088
|
|
Additional paid-in
capital
|
|
|
6,371,398
|
|
|
6,119,645
|
|
Accumulated
deficit
|
|
|
(617,377)
|
|
|
(119,125)
|
|
Total stockholders'
equity
|
|
|
5,757,160
|
|
|
6,003,608
|
|
Noncontrolling
interests
|
|
|
308,932
|
|
|
270,255
|
|
Total
equity
|
|
|
6,066,092
|
|
|
6,273,863
|
|
Total liabilities and
equity
|
|
$
|
13,896,528
|
|
|
14,212,700
|
|
ANTERO RESOURCES
CORPORATION Condensed Consolidated Statements of Operations
and Comprehensive Income (Loss) (Unaudited)
(In thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Revenue and
other:
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
626,520
|
|
|
1,558,994
|
|
Natural gas liquids
sales
|
|
|
464,381
|
|
|
702,388
|
|
Oil sales
|
|
|
51,906
|
|
|
89,185
|
|
Commodity derivative
fair value losses
|
|
|
(831,840)
|
|
|
(265,662)
|
|
Marketing
|
|
|
165,453
|
|
|
106,150
|
|
Amortization of
deferred revenue, VPP
|
|
|
11,279
|
|
|
9,375
|
|
Other income
(loss)
|
|
|
(619)
|
|
|
1,255
|
|
Total
revenue
|
|
|
487,080
|
|
|
2,201,685
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
21,645
|
|
|
25,253
|
|
Gathering,
compression, processing and transportation
|
|
|
641,362
|
|
|
656,212
|
|
Production and ad
valorem taxes
|
|
|
33,694
|
|
|
81,842
|
|
Marketing
|
|
|
198,994
|
|
|
131,298
|
|
Exploration and mine
expenses
|
|
|
5,638
|
|
|
1,394
|
|
General and
administrative (including equity-based compensation expense of
$4,249 and $8,171 in 2021 and 2022, respectively)
|
|
|
32,177
|
|
|
44,439
|
|
Depletion,
depreciation and amortization
|
|
|
187,330
|
|
|
173,395
|
|
Impairment of oil and
gas properties
|
|
|
9,303
|
|
|
23,363
|
|
Accretion of asset
retirement obligations
|
|
|
1,331
|
|
|
804
|
|
Contract
termination
|
|
|
844
|
|
|
2,096
|
|
(Gain) loss on sale of
assets
|
|
|
(2,288)
|
|
|
71
|
|
Total operating
expenses
|
|
|
1,130,030
|
|
|
1,140,167
|
|
Operating income
(loss)
|
|
|
(642,950)
|
|
|
1,061,518
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(49,963)
|
|
|
(34,213)
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
17,477
|
|
|
14,713
|
|
Loss on early
extinguishment of debt
|
|
|
(23,065)
|
|
|
(4,414)
|
|
Loss on convertible
note equitization
|
|
|
(11,731)
|
|
|
—
|
|
Transaction
expense
|
|
|
(185)
|
|
|
—
|
|
Total other
expense
|
|
|
(67,467)
|
|
|
(23,914)
|
|
Income (loss) before
income taxes
|
|
|
(710,417)
|
|
|
1,037,604
|
|
Income tax benefit
(expense)
|
|
|
175,966
|
|
|
(225,571)
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(534,451)
|
|
|
812,033
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
(10,984)
|
|
|
46,898
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(523,467)
|
|
|
765,135
|
|
|
|
|
|
|
|
|
|
Income (loss) per
share—basic
|
|
$
|
(1.70)
|
|
|
2.46
|
|
Income (loss) per
share—diluted
|
|
$
|
(1.70)
|
|
|
2.29
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
307,879
|
|
|
310,535
|
|
Diluted
|
|
|
307,879
|
|
|
334,561
|
|
ANTERO RESOURCES
CORPORATION Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2021
|
|
2022
|
|
Cash flows provided by
(used in) operating activities:
|
|
|
|
|
|
|
|
Net income (loss)
including noncontrolling interests
|
|
$
|
(545,555)
|
|
|
637,337
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depletion,
depreciation, amortization and accretion
|
|
|
383,475
|
|
|
345,031
|
|
Impairments
|
|
|
43,365
|
|
|
45,825
|
|
Commodity derivative
fair value losses
|
|
|
1,009,596
|
|
|
1,277,042
|
|
Losses on settled
commodity derivatives
|
|
|
(64,951)
|
|
|
(844,713)
|
|
Payments for
derivative monetizations
|
|
|
(4,569)
|
|
|
—
|
|
Deferred income tax
expense (benefit)
|
|
|
(178,912)
|
|
|
171,707
|
|
Equity-based
compensation expense
|
|
|
9,891
|
|
|
12,820
|
|
Equity in earnings of
unconsolidated affiliate
|
|
|
(36,171)
|
|
|
(39,891)
|
|
Dividends of earnings
from unconsolidated affiliate
|
|
|
74,040
|
|
|
62,569
|
|
Amortization of
deferred revenue
|
|
|
(22,429)
|
|
|
(18,647)
|
|
Amortization of debt
issuance costs, debt discount and debt premium
|
|
|
7,877
|
|
|
2,515
|
|
Settlement of asset
retirement obligations
|
|
|
—
|
|
|
(886)
|
|
(Gain) loss on sale of
assets
|
|
|
(2,288)
|
|
|
1,857
|
|
Loss on early
extinguishment of debt
|
|
|
66,269
|
|
|
15,068
|
|
Loss on convertible
note equitizations
|
|
|
50,777
|
|
|
—
|
|
Changes in current
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(7,687)
|
|
|
53,623
|
|
Accrued
revenue
|
|
|
(68,425)
|
|
|
(360,612)
|
|
Other current
assets
|
|
|
631
|
|
|
(22,566)
|
|
Accounts payable
including related parties
|
|
|
6,681
|
|
|
50,378
|
|
Accrued
liabilities
|
|
|
64,499
|
|
|
37,203
|
|
Revenue distributions
payable
|
|
|
69,809
|
|
|
40,166
|
|
Other current
liabilities
|
|
|
16,349
|
|
|
22,559
|
|
Net cash provided by
operating activities
|
|
|
872,272
|
|
|
1,488,385
|
|
Cash flows provided by
(used in) investing activities:
|
|
|
|
|
|
|
|
Additions to unproved
properties
|
|
|
(29,473)
|
|
|
(72,072)
|
|
Drilling and
completion costs
|
|
|
(273,956)
|
|
|
(393,506)
|
|
Additions to other
property and equipment
|
|
|
(2,320)
|
|
|
(11,162)
|
|
Proceeds from asset
sales
|
|
|
2,351
|
|
|
195
|
|
Change in other
assets
|
|
|
597
|
|
|
1,711
|
|
Change in other
liabilities
|
|
|
(77)
|
|
|
—
|
|
Net cash used in
investing activities
|
|
|
(302,878)
|
|
|
(474,834)
|
|
Cash flows provided by
(used in) financing activities:
|
|
|
|
|
|
|
|
Repurchases of common
stock
|
|
|
—
|
|
|
(293,051)
|
|
Issuance of senior
notes
|
|
|
1,800,000
|
|
|
—
|
|
Repayment of senior
notes
|
|
|
(1,234,698)
|
|
|
(658,906)
|
|
Borrowings
(repayments) on bank credit facilities, net
|
|
|
(1,017,000)
|
|
|
70,800
|
|
Payment of debt
issuance costs
|
|
|
(22,440)
|
|
|
—
|
|
Distributions to
noncontrolling interests in Martica Holdings LLC
|
|
|
(46,028)
|
|
|
(67,298)
|
|
Employee tax
withholding for settlement of equity compensation awards
|
|
|
(9,530)
|
|
|
(64,819)
|
|
Convertible note
equitizations
|
|
|
(85,648)
|
|
|
—
|
|
Other
|
|
|
(509)
|
|
|
(277)
|
|
Net cash used in
financing activities
|
|
|
(564,853)
|
|
|
(1,013,551)
|
|
Net increase in cash
and cash equivalents
|
|
|
4,541
|
|
|
—
|
|
Cash and cash
equivalents, beginning of period
|
|
|
—
|
|
|
—
|
|
Cash and cash
equivalents, end of period
|
|
$
|
4,541
|
|
|
—
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information:
|
|
|
|
|
|
|
|
Cash paid during the
period for interest
|
|
$
|
58,126
|
|
|
89,326
|
|
Increase (decrease) in
accounts payable and accrued liabilities for additions to property
and equipment
|
|
$
|
42,589
|
|
|
(3,504)
|
|
The following table set forth unaudited selected financial data
for the three months ended June 30,
2021 and 2022:
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
June 30,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales
|
|
$
|
626,520
|
|
|
1,558,994
|
|
|
932,474
|
|
149
|
%
|
Natural gas liquids
sales
|
|
|
464,381
|
|
|
702,388
|
|
|
238,007
|
|
51
|
%
|
Oil sales
|
|
|
51,906
|
|
|
89,185
|
|
|
37,279
|
|
72
|
%
|
Commodity derivative
fair value losses
|
|
|
(831,840)
|
|
|
(265,662)
|
|
|
566,178
|
|
(68)
|
%
|
Marketing
|
|
|
165,453
|
|
|
106,150
|
|
|
(59,303)
|
|
(36)
|
%
|
Amortization of
deferred revenue, VPP
|
|
|
11,279
|
|
|
9,375
|
|
|
(1,904)
|
|
(17)
|
%
|
Other income
(loss)
|
|
|
(619)
|
|
|
1,255
|
|
|
1,874
|
|
(303)
|
%
|
Total
revenue
|
|
|
487,080
|
|
|
2,201,685
|
|
|
1,714,605
|
|
352
|
%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
|
21,645
|
|
|
25,253
|
|
|
3,608
|
|
17
|
%
|
Gathering and
compression
|
|
|
224,073
|
|
|
223,650
|
|
|
(423)
|
|
(0)
|
%
|
Processing
|
|
|
209,627
|
|
|
219,100
|
|
|
9,473
|
|
5
|
%
|
Transportation
|
|
|
207,662
|
|
|
213,462
|
|
|
5,800
|
|
3
|
%
|
Production and ad
valorem taxes
|
|
|
33,694
|
|
|
81,842
|
|
|
48,148
|
|
143
|
%
|
Marketing
|
|
|
198,994
|
|
|
131,298
|
|
|
(67,696)
|
|
(34)
|
%
|
Exploration and mine
expenses
|
|
|
5,638
|
|
|
1,394
|
|
|
(4,244)
|
|
(75)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
|
27,928
|
|
|
36,268
|
|
|
8,340
|
|
30
|
%
|
Equity-based
compensation
|
|
|
4,249
|
|
|
8,171
|
|
|
3,922
|
|
92
|
%
|
Depletion,
depreciation and amortization
|
|
|
187,330
|
|
|
173,395
|
|
|
(13,935)
|
|
(7)
|
%
|
Impairment of oil and
gas properties
|
|
|
9,303
|
|
|
23,363
|
|
|
14,060
|
|
151
|
%
|
Accretion of asset
retirement obligations
|
|
|
1,331
|
|
|
804
|
|
|
(527)
|
|
(40)
|
%
|
Contract
termination
|
|
|
844
|
|
|
2,096
|
|
|
1,252
|
|
148
|
%
|
Gain (loss) on sale of
assets
|
|
|
(2,288)
|
|
|
71
|
|
|
2,359
|
|
*
|
|
Total operating
expenses
|
|
|
1,130,030
|
|
|
1,140,167
|
|
|
10,137
|
|
1
|
%
|
Operating income
(loss)
|
|
|
(642,950)
|
|
|
1,061,518
|
|
|
1,704,468
|
|
*
|
|
Other earnings
(expenses):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(49,963)
|
|
|
(34,213)
|
|
|
15,750
|
|
(32)
|
%
|
Equity in earnings of
unconsolidated affiliate
|
|
|
17,477
|
|
|
14,713
|
|
|
(2,764)
|
|
(16)
|
%
|
Loss on early
extinguishment of debt
|
|
|
(23,065)
|
|
|
(4,414)
|
|
|
18,651
|
|
(81)
|
%
|
Loss on convertible
note equitizations
|
|
|
(11,731)
|
|
|
—
|
|
|
11,731
|
|
*
|
|
Transaction
expenses
|
|
|
(185)
|
|
|
—
|
|
|
185
|
|
*
|
|
Total other
expense
|
|
|
(67,467)
|
|
|
(23,914)
|
|
|
43,553
|
|
(65)
|
%
|
Income (loss) before
income taxes
|
|
|
(710,417)
|
|
|
1,037,604
|
|
|
1,748,021
|
|
*
|
|
Income tax benefit
(expense)
|
|
|
175,966
|
|
|
(225,571)
|
|
|
(401,537)
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) including noncontrolling
interests
|
|
|
(534,451)
|
|
|
812,033
|
|
|
1,346,484
|
|
*
|
|
Less: net income
(loss) and comprehensive income (loss) attributable to
noncontrolling interests
|
|
|
(10,984)
|
|
|
46,898
|
|
|
57,882
|
|
*
|
|
Net income (loss) and
comprehensive income (loss) attributable to Antero Resources
Corporation
|
|
$
|
(523,467)
|
|
|
765,135
|
|
|
1,288,602
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDAX
|
|
$
|
319,352
|
|
|
953,252
|
|
|
633,900
|
|
198
|
%
|
The following table set forth selected operating data for the
three months ended June 30, 2021 and
2022:
|
|
Three Months
Ended
|
|
Amount of
|
|
|
|
|
|
June 30,
|
|
Increase
|
|
Percent
|
|
|
|
2021
|
|
2022
|
|
(Decrease)
|
|
Change
|
|
Production data
(1) (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
(Bcf)
|
|
|
208
|
|
|
203
|
|
|
(5)
|
|
(2)
|
%
|
C2 Ethane
(MBbl)
|
|
|
4,356
|
|
|
4,025
|
|
|
(331)
|
|
(8)
|
%
|
C3+ NGLs
(MBbl)
|
|
|
10,440
|
|
|
10,156
|
|
|
(284)
|
|
(3)
|
%
|
Oil (MBbl)
|
|
|
940
|
|
|
906
|
|
|
(34)
|
|
(4)
|
%
|
Combined
(Bcfe)
|
|
|
303
|
|
|
294
|
|
|
(9)
|
|
(3)
|
%
|
Daily combined
production (MMcfe/d)
|
|
|
3,324
|
|
|
3,228
|
|
|
(96)
|
|
(3)
|
%
|
Average prices
before effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
3.01
|
|
|
7.67
|
|
|
4.66
|
|
155
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
9.97
|
|
|
22.42
|
|
|
12.45
|
|
125
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
40.32
|
|
|
60.28
|
|
|
19.96
|
|
50
|
%
|
Oil (per
Bbl)
|
|
$
|
55.22
|
|
|
98.49
|
|
|
43.27
|
|
78
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
3.78
|
|
|
8.00
|
|
|
4.22
|
|
112
|
%
|
Average realized
prices after effects of derivative settlements
(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas (per
Mcf)
|
|
$
|
2.91
|
|
|
4.94
|
|
|
2.03
|
|
70
|
%
|
C2 Ethane (per
Bbl)
|
|
$
|
9.97
|
|
|
22.42
|
|
|
12.45
|
|
125
|
%
|
C3+ NGLs (per
Bbl)
|
|
$
|
35.95
|
|
|
59.84
|
|
|
23.89
|
|
66
|
%
|
Oil (per
Bbl)
|
|
$
|
52.05
|
|
|
97.73
|
|
|
45.68
|
|
88
|
%
|
Weighted Average
Combined (per Mcfe)
|
|
$
|
3.55
|
|
|
6.10
|
|
|
2.55
|
|
72
|
%
|
Average costs (per
Mcfe):
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
operating
|
|
$
|
0.07
|
|
|
0.09
|
|
|
0.02
|
|
29
|
%
|
Gathering and
compression
|
|
$
|
0.74
|
|
|
0.76
|
|
|
0.02
|
|
3
|
%
|
Processing
|
|
$
|
0.69
|
|
|
0.75
|
|
|
0.06
|
|
9
|
%
|
Transportation
|
|
$
|
0.69
|
|
|
0.73
|
|
|
0.04
|
|
6
|
%
|
Production and ad
valorem taxes
|
|
$
|
0.11
|
|
|
0.28
|
|
|
0.17
|
|
155
|
%
|
Marketing (revenue)
expense, net
|
|
$
|
0.11
|
|
|
0.09
|
|
|
(0.02)
|
|
(18)
|
%
|
Depletion,
depreciation, amortization and accretion
|
|
$
|
0.62
|
|
|
0.59
|
|
|
(0.03)
|
|
(5)
|
%
|
General and
administrative (excluding equity-based compensation)
|
|
$
|
0.09
|
|
|
0.12
|
|
|
0.03
|
|
33
|
%
|
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/antero-resources-reports-second-quarter-2022-financial-and-operational-results-301594703.html
SOURCE Antero Resources Corporation