On July 31, 2024, Antero Resources Corp (AR, Financial) released its 8-K filing detailing its financial and operating results for the second quarter of 2024. Antero Resources Corp, based in Denver, engages in the exploration for and production of natural gas and natural gas liquids in the United States and Canada. At the end of 2023, the company reported proven reserves of 18.1 trillion cubic feet of natural gas equivalent. Production averaged approximately 3,483 million cubic feet of equivalent a day in 2023 at a ratio of 35% liquids and 65% natural gas.
Performance and Challenges
During the second quarter of 2024, Antero Resources Corp (AR, Financial) faced a mixed performance. Natural gas production averaged 2.1 Bcf/d, marking a 4% decline from the same period last year. However, liquids production saw a 10% increase, averaging 212 MBbl/d and now representing 37% of total production. The company realized a pre-hedge natural gas equivalent price of $2.98 per Mcfe, a $1.09 per Mcfe premium to NYMEX pricing, which averaged $1.89 per MMBtu.
Financial Achievements
Despite the challenges, Antero Resources Corp (AR, Financial) achieved several financial milestones. The company reported an adjusted EBITDAX of $151 million and net cash provided by operating activities of $143 million. Additionally, Antero achieved an investment-grade rating following an upgrade from S&P and entered into a new unsecured credit facility.
Income Statement Highlights
Antero Resources Corp (AR, Financial) reported a net loss of $66 million for the second quarter of 2024, with an adjusted net loss of $60 million. The following table summarizes key financial data:
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Net Cash Provided by Operating Activities | $155,263 | $143,499 |
| Net Cash Used in Investing Activities | ($287,236) | ($187,315) |
| Free Cash Flow | ($163,938) | ($63,153) |
Operational Efficiency
During the quarter, Antero Resources Corp (AR, Financial) averaged a record 11.9 completion stages per day, including a monthly record of 12.8 stages per day in May. The company also averaged over 18,000 lateral feet per well for completed wells, 16% above the prior quarterly record. Additionally, Antero recorded the second-highest production rate per well for a pad in company history, averaging 37 MMcfe/d per well over 60 days.
Commentary from Management
Paul Rady, Chairman, CEO, and President of Antero Resources, commented, "During the second quarter we continued to deliver strong capital efficiency results. We set a new quarterly completion record of nearly 12 stages per day. These faster completion times have reduced our cycle times to approximately 140 days in 2024, a dramatic reduction of 67% from just five years ago."
Michael Kennedy, CFO of Antero Resources, added, "Our quarterly financial results continue to benefit from our significant exposure to liquids prices. Although natural gas production was down 4% from the year-ago period, our liquids production increased 10% year-over-year, and now represents a record high 37% of our total revenue."
2024 Full-Year Guidance Updates
Antero Resources Corp (AR, Financial) has increased its full-year 2024 production guidance to 3.375 to 3.425 Bcfe/d, driven by stronger well performance, higher liquids volumes, and capital efficiency gains. The company also raised its full-year 2024 C3+ NGL realized price guidance to a range of $1.00 to $2.00 per barrel premium to Mont Belvieu, reflecting higher expected realizations from take-in-kind transactions.
For more detailed financial information and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Antero Resources Corp for further details.
