ANTERO RESOURCES Corp 10-K

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Common Stock We have one class of common equity outstanding, our common stock, par value $0.01 per share. Our common stock is listed on the New York Stock Exchange and traded under the symbol “AR.” On February 12, 2021, our common stock was held by 158 holders of record. The number of holders does not include the shareholders for whom shares of our common stock are held in a “nominee” or “street” name. Issuer Purchases of Equity Securities The following table sets forth our share repurchase activity for each period presented: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ of Shares ​ Approximate ​ ​ ​ ​ ​ ​ ​ Repurchased ​ Dollar Value ​ ​ ​ ​ ​ ​ ​ as Part of ​ of Shares ​ ​ ​ Total Number ​ ​ ​ Publicly ​ that May ​ ​ ​ of Shares ​ Average Price ​ Announced ​ Yet be Purchased ​ Period Purchased Paid Per Share Plans Under the Plan ​ October 1, 2020 - October 31, 2020 (1) ​ 13,550 ​ $ 3.62 ​ — ​ $ — ​ November 1, 2020 - November 30, 2020 ​ — ​ ​ — ​ — ​ ​ — ​ December 1, 2020 - December 31, 2020 ​ — ​ ​ — ​ — ​ ​ — ​ Total ​ 13,550 ​ $ 3.62 ​ — ​ $ — ​ (1) The total number of shares purchased includes 13,550 shares repurchased in October 2020, representing shares of our common stock transferred to us in order to satisfy tax withholding obligations incurred upon the vesting of restricted stock and restricted stock units held by our employees. ​ Dividend Restrictions Our ability to pay dividends is governed by (i) the provisions of Delaware general corporation law, (ii) our Certificate of Incorporation and Bylaws, (iii) indentures related to our 5.125% senior notes due 2022, 5.625% senior notes due 2023, 5.00% senior notes due 2025, 8.375% senior notes due 2026, 7.625% senior notes due 2029 and 4.25% convertible senior notes due 2026 and (iv) the Credit Facility. We have not paid or declared any dividends on our common stock. The future payment of cash dividends on our common stock, if any, is within the discretion of the Board of Directors and will depend on our earnings, capital requirements, financial condition, and other relevant factors. There is no assurance that we will pay any cash dividends on our common stock. 46 Table of Contents Stock Performance Graph The graph below shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2015 in each of our common stock, the Standard & Poor’s 500 (“S&P 500”) Index, and the Dow Jones U.S. Oil & Gas Index. We believe the Dow Jones U.S. Oil & Gas Index is meaningful because it is an independent, objective view of the performance of similarly-sized energy companies. The information in this Form 10-K appearing under the heading “Stock Performance Graph” is being “furnished” pursuant to Item 2.01(e) of Regulation S-K under the Securities Act and shall not be deemed to be “soliciting material” or “filed” with the SEC or subject to Regulation 14A or 14C, other than as provided in Item 2.01(e) of Regulation S-K, or to the liabilities of Section 18 of the Exchange Act and shall not be deemed incorporated by reference into any filing under the Securities Act of the Exchange Act except to the extent that we specifically request that it be treated as such. ​ ​ 47 Table of Contents ITEM 6. SELECTED FINANCIAL DATA The following table shows our selected historical consolidated financial data, for the periods ended and as of the dates indicated, for Antero Resources Corporation and its consolidated subsidiaries, including Antero Midstream Partners through March 12, 2019. Effective March 13, 2019, we no longer consolidate Antero Midstream Partners and account for our interest in Antero Midstream using the equity method of accounting. See Note 6—Equity Method Investments to the consolidated financial statements for further discussion of our equity method investments. The selected statement of operations data and statement of cash flows data for the years ended December 31, 2018, 2019 and 2020 and the balance sheet data as of December 31, 2019 and 2020 are derived from our audited consolidated financial statements included in Item 8 of this Annual Report on Form 10- K. T he selected statement of operations data and statement of cash flows data for the years ended December 31, 2016 and 2017 and the balance sheet data as of December 31, 2016, 2017 and 2018 are derived from our audited consolidated financial statements not included in Item 8 of this Annual Report on Form 10-K. The balance sheet data for the year ended December 31, 2016 has been recast to present the effects of the adoption of Accounting Standards Update (“ASU”) No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, in 2016, which requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that liability. Our historical results of operations for the years ended December 31, 2016 and 2017 reflect a U.S. federal corporate tax rate of 35%. Effective January 1, 2018, the U.S. federal corporate tax rate was reduced from 35% to 21%. Accordingly, our historical results of operations prior to this change reflect a higher U.S. federal corporate tax rate when compared to subsequent period financial results. The selected financial data presented below are qualified in their entirety by reference to, and should be read in conjunction with, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K. 48 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ (in thousands, except per share amounts) 2016 2017 2018 2019 2020 ​ Statement of operations data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating revenues and other: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Natural gas sales ​ $ 1,260,750 ​ ​ 1,769,284 ​ ​ 2,287,939 ​ ​ 2,247,162 ​ ​ 1,809,952 ​ NGLs sales ​ ​ 432,992 ​ ​ 870,441 ​ ​ 1,177,777 ​ ​ 1,219,162 ​ ​ 1,161,683 ​ Oil sales ​ ​ 61,319 ​ ​ 108,195 ​ ​ 187,178 ​ ​ 177,549 ​ ​ 112,270 ​ Commodity derivative fair value gains (losses) ​ ​ (514,181) ​ ​ 658,283 ​ ​ (87,594) ​ ​ 463,972 ​ ​ 79,918 ​ Gathering, compression, and water handling and treatment ​ ​ 12,961 ​ ​ 12,720 ​ ​ 21,344 ​ ​ 4,478 ​ ​ — ​ Marketing ​ ​ 393,049 ​ ​ 258,045 ​ ​ 458,901 ​ ​ 292,207 ​ ​ 310,572 ​ Marketing derivative fair value gains (losses) ​ ​ — ​ ​ (21,394) ​ ​ 94,081 ​ ​ — ​ ​ — ​ Amortization of deferred revenue, VPP ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 14,507 ​ Gain on sale of assets ​ ​ 97,635 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Other income ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,160 ​ ​ 2,797 ​ Total operating revenues and other ​ ​ 1,744,525 ​ ​ 3,655,574 ​ ​ 4,139,626 ​ ​ 4,408,690 ​ ​ 3,491,699 ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 50,090 ​ ​ 89,057 ​ ​ 136,153 ​ ​ 145,720 ​ ​ 98,865 ​ Gathering, compression, processing, and transportation ​ ​ 882,838 ​ ​ 1,095,639 ​ ​ 1,339,358 ​ ​ 2,146,647 ​ ​ 2,530,838 ​ Production and ad valorem taxes ​ ​ 66,588 ​ ​ 94,521 ​ ​ 126,474 ​ ​ 125,142 ​ ​ 106,775 ​ Marketing ​ ​ 499,343 ​ ​ 366,281 ​ ​ 686,055 ​ ​ 549,814 ​ ​ 469,404 ​ Exploration ​ ​ 6,862 ​ ​ 8,538 ​ ​ 4,958 ​ ​ 884 ​ ​ 1,083 ​ Impairment of oil and gas properties ​ ​ 162,935 ​ ​ 159,598 ​ ​ 549,437 ​ ​ 1,300,444 ​ ​ 223,770 ​ Impairment of midstream assets ​ ​ — ​ ​ 23,431 ​ ​ 9,658 ​ ​ 14,782 ​ ​ — ​ Depletion, depreciation, and amortization ​ ​ 809,873 ​ ​ 824,610 ​ ​ 972,465 ​ ​ 914,867 ​ ​ 861,870 ​ Loss on sale of assets ​ ​ ​ ​ ​ ​ ​ ​ — ​ ​ 951 ​ ​ 348 ​ Accretion of asset retirement obligations ​ ​ 2,473 ​ ​ 2,610 ​ ​ 2,819 ​ ​ 3,762 ​ ​ 3,421 ​ General and administrative (including equity-based compensation expense of $102,421, $103,445, $70,413, $23,559 and $23,317 in 2016, 2017, 2018, 2019 and 2020, respectively) ​ ​ 239,324 ​ ​ 251,196 ​ ​ 240,344 ​ ​ 178,696 ​ ​ 134,482 ​ Contract termination and rig stacking ​ ​ — ​ ​ — ​ ​ — ​ ​ 14,026 ​ ​ 14,290 ​ Total operating expenses ​ ​ 2,720,326 ​ ​ 2,915,481 ​ ​ 4,067,721 ​ ​ 5,395,735 ​ ​ 4,445,146 ​ Operating income (loss) ​ ​ (975,801) ​ ​ 740,093 ​ ​ 71,905 ​ ​ (987,045) ​ ​ (953,447) ​ Other Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Water earnout ​ ​ — ​ ​ — ​ ​ — ​ ​ 125,000 ​ ​ — ​ Loss on the sale of equity method investment shares ​ ​ — ​ ​ — ​ ​ — ​ ​ (108,745) ​ ​ — ​ Equity in earnings (loss) of unconsolidated affiliate ​ ​ 485 ​ ​ 20,194 ​ ​ 40,280 ​ ​ (143,216) ​ ​ (62,660) ​ Impairment of equity method investment ​ ​ — ​ ​ — ​ ​ — ​ ​ (467,590) ​ ​ (610,632) ​ Gain on deconsolidation of Antero Midstream Partners LP ​ ​ — ​ ​ — ​ ​ — ​ ​ 1,406,042 ​ ​ — ​ Transaction expense ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (7,244) ​ Interest expense, net ​ ​ (253,552) ​ ​ (268,701) ​ ​ (286,743) ​ ​ (228,111) ​ ​ (199,872) ​ Gain (loss) on early extinguishment of debt ​ ​ (16,956) ​ ​ (1,500) ​ ​ — ​ ​ 36,419 ​ ​ 175,962 ​ Total other income (expenses) ​ ​ (270,023) ​ ​ (250,007) ​ ​ (246,463) ​ ​ 619,799 ​ ​ (704,446) ​ Income (loss) before income taxes and discontinued operations ​ ​ (1,245,824) ​ ​ 490,086 ​ ​ (174,558) ​ ​ (367,246) ​ ​ (1,657,893) ​ Income tax benefit ​ ​ 496,376 ​ ​ 295,051 ​ ​ 128,857 ​ ​ 74,110 ​ ​ 397,482 ​ Net income (loss) and comprehensive income (loss) including noncontrolling interest ​ ​ (749,448) ​ ​ 785,137 ​ ​ (45,701) ​ ​ (293,136) ​ ​ (1,260,411) ​ Net income and comprehensive income attributable to noncontrolling interest ​ ​ 99,368 ​ ​ 170,067 ​ ​ 351,816 ​ ​ 46,993 ​ ​ 7,486 ​ Net income (loss) attributable to Antero Resources Corporation ​ $ (848,816) ​ ​ 615,070 ​ ​ (397,517) ​ ​ (340,129) ​ ​ (1,267,897) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings (loss) per common share—basic ​ $ (2.88) ​ ​ 1.95 ​ ​ (1.26) ​ ​ (1.11) ​ ​ (4.65) ​ Earnings (loss) per common share—dilutive ​ $ (2.88) ​ ​ 1.94 ​ ​ (1.26) ​ ​ (1.11) ​ ​ (4.65) ​ ​ 49 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ (in thousands) 2016 2017 2018 2019 2020 ​ Balance sheet data (at period end): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 31,610 ​ ​ 28,441 ​ ​ — ​ ​ — ​ ​ — ​ Other current assets ​ ​ 370,977 ​ ​ 804,646 ​ ​ 806,613 ​ ​ 922,885 ​ ​ 574,139 ​ Total current assets ​ ​ 402,587 ​ ​ 833,087 ​ ​ 806,613 ​ ​ 922,885 ​ ​ 574,139 ​ Natural gas properties, at cost (successful efforts method): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Unproved properties ​ ​ 2,331,173 ​ ​ 2,266,673 ​ ​ 1,767,600 ​ ​ 1,368,854 ​ ​ 1,175,178 ​ Producing properties ​ ​ 9,549,671 ​ ​ 11,096,462 ​ ​ 12,705,672 ​ ​ 11,859,817 ​ ​ 12,260,713 ​ Water handling and treatment systems ​ ​ 744,682 ​ ​ 946,670 ​ ​ 1,013,818 ​ ​ 5,802 ​ ​ 5,802 ​ Gathering systems and facilities ​ ​ 1,723,768 ​ ​ 2,050,490 ​ ​ 2,470,708 ​ ​ — ​ ​ — ​ Other property and equipment ​ ​ 41,231 ​ ​ 57,429 ​ ​ 65,842 ​ ​ 71,895 ​ ​ 74,361 ​ ​ ​ ​ 14,390,525 ​ ​ 16,417,724 ​ ​ 18,023,640 ​ ​ 13,306,368 ​ ​ 13,516,054 ​ Less accumulated depletion, depreciation, and amortization ​ ​ (2,363,778) ​ ​ (3,182,171) ​ ​ (4,153,725) ​ ​ (3,327,629) ​ ​ (3,869,116) ​ Property and equipment, net ​ ​ 12,026,747 ​ ​ 13,235,553 ​ ​ 13,869,915 ​ ​ 9,978,739 ​ ​ 9,646,938 ​ Other assets ​ ​ 1,826,216 ​ ​ 1,192,850 ​ ​ 842,936 ​ ​ 4,295,945 ​ ​ 2,929,768 ​ Total assets ​ $ 14,255,550 ​ ​ 15,261,490 ​ ​ 15,519,464 ​ ​ 15,197,569 ​ ​ 13,150,845 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Current liabilities ​ $ 817,388 ​ ​ 762,096 ​ ​ 853,540 ​ ​ 1,040,139 ​ ​ 983,054 ​ Long-term indebtedness ​ ​ 4,703,973 ​ ​ 4,800,090 ​ ​ 5,461,688 ​ ​ 3,758,868 ​ ​ 3,001,593 ​ Other long-term liabilities ​ ​ 1,005,611 ​ ​ 823,168 ​ ​ 716,759 ​ ​ 3,427,819 ​ ​ 3,075,927 ​ Total equity ​ ​ 7,728,578 ​ ​ 8,876,136 ​ ​ 8,487,477 ​ ​ 6,970,743 ​ ​ 6,090,271 ​ Total liabilities and equity ​ $ 14,255,550 ​ ​ 15,261,490 ​ ​ 15,519,464 ​ ​ 15,197,569 ​ ​ 13,150,845 ​ Other financial data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net cash provided by operating activities ​ $ 1,241,256 ​ ​ 2,006,291 ​ ​ 2,081,987 ​ ​ 1,103,458 ​ ​ 735,640 ​ Net cash used in investing activities ​ $ (2,395,138) ​ ​ (2,461,630) ​ ​ (2,350,724) ​ ​ (1,041,490) ​ ​ (530,061) ​ Net cash provided by (used in) financing activities ​ $ 1,162,019 ​ ​ 452,170 ​ ​ 240,296 ​ ​ 557,564 ​ ​ (205,579) ​ Capital expenditures ​ $ 2,495,429 ​ ​ 2,216,753 ​ ​ 2,210,586 ​ ​ 1,422,155 ​ ​ 874,357 ​ Adjusted EBITDAX ​ $ 1,384,442 ​ ​ 1,244,394 ​ ​ 1,717,120 ​ ​ 1,247,671 ​ ​ 1,002,016 ​ ​ ​ 50 Table of Contents Adjusted EBITDAX is a non-GAAP financial measure that we define as net income (loss), including noncontrolling interests, before interest expense, interest income, gains or losses from commodity derivatives and marketing derivatives, amortization of deferred revenue but including net cash receipts or payments on derivative instruments included in derivative gains or losses other than proceeds from derivative monetizations, income taxes, impairments, depletion, depreciation, amortization, and accretion, exploration expense, equity-based compensation, gain or loss on early extinguishment of debt, contract termination and rig stacking costs, loss on sale of the equity method investment shares, equity in earnings or loss of unconsolidated affiliates, water earnout, simplification transaction fees, gain or loss on sale of assets, Antero Midstream Partners related adjustments and Martica related adjustments. Through March 12, 2019, the financial results of Antero Midstream Partners were included in our consolidated results. Effective March 13, 2019, we no longer consolidate Antero Midstream Partners and account for our interest in Antero Midstream using the equity method of accounting. See Note 6—Equity Method Investments to the consolidated financial statements for more information on our equity method investments. Adjusted EBITDAX includes distributions received with respect to limited partner interests in Antero Midstream Partners common units through March 12, 2019. Adjusted EBITDAX as used and defined by us, may not be comparable to similarly titled measures employed by other companies and is not a measure of performance calculated in accordance with GAAP. Adjusted EBITDAX should not be considered in isolation or as a substitute for operating income or loss, net income or loss, cash flows provided by operating, investing, and financing activities, or other income or cash flow statement data prepared in accordance with GAAP. Adjusted EBITDAX provides no information regarding our capital structure, borrowings, interest costs, capital expenditures, working capital movement, or tax position. Adjusted EBITDAX does not represent funds available for discretionary use because those funds may be required for debt service, capital expenditures, working capital, income taxes, exploration expenses, and other commitments and obligations. However, our management team believes Adjusted EBITDAX is useful to an investor in evaluating our financial performance because this measure: ● is widely used by investors in the oil and natural gas industry to measure operating performance without regard to items excluded from the calculation of such term, which may vary substantially from company to company depending upon accounting methods and the book value of assets, capital structure and the method by which assets were acquired, among other factors; ● helps investors to more meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our capital and legal structure from our operating structure; ● is used by our management team for various purposes, including as a measure of our operating performance, in presentations to our Board of Directors, and as a basis for strategic planning and forecasting; and ● is used by our Board of Directors as a performance measure in determining executive compensation. There are significant limitations to using Adjusted EBITDAX as a measure of performance, including the inability to analyze the effects of certain recurring and non-recurring items that materially affect our net income or loss, the lack of comparability of results of operations of different companies, and the different methods of calculating Adjusted EBITDAX reported by different companies. The following table represents a reconciliation of our net income (loss), including noncontrolling interest, to Adjusted EBITDAX and a reconciliation of our Adjusted EBITDAX to net cash provided by operating activities per our consolidated statements of cash flows, in each case, for the periods presented. Adjusted EBITDAX also excludes the results of Antero Midstream Partners to provide comparability with the current structure of Antero Resources because effective March 13, 2019, we no longer consolidate Antero Midstream Partners’ results. These adjustments are disclosed in the table below as Antero Midstream Partners related adjustments. 51 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended December 31, ​ (in thousands) 2016 2017 2018 2019 2020 ​ Reconciliation of net income (loss) to Adjusted EBITDAX: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation ​ $ (848,816) ​ ​ 615,070 ​ ​ (397,517) ​ ​ (340,129) ​ ​ (1,267,897) ​ Net income (loss) and comprehensive income (loss) attributable to noncontrolling interests ​ ​ 99,368 ​ ​ 170,067 ​ ​ 351,816 ​ ​ 46,993 ​ ​ 7,486 ​ Unrealized commodity derivative gains (losses) ​ ​ 1,517,264 ​ ​ 305,563 ​ ​ 701,071 ​ ​ (138,882) ​ ​ 725,011 ​ Gains (losses) on settled marketing derivatives ​ ​ — ​ ​ 21,394 ​ ​ (94,081) ​ ​ — ​ ​ — ​ Marketing derivative fair value gains ​ ​ — ​ ​ — ​ ​ 72,687 ​ ​ — ​ ​ — ​ Proceeds from derivative monetizations ​ ​ — ​ ​ (749,906) ​ ​ (370,365) ​ ​ — ​ ​ (9,007) ​ Amortization of deferred revenue, VPP ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (14,507) ​ (Gain) loss on sale of assets ​ ​ (97,635) ​ ​ — ​ ​ — ​ ​ 951 ​ ​ 348 ​ Gain on deconsolidation of Antero Midstream Partners LP ​ ​ — ​ ​ — ​ ​ — ​ ​ (1,406,042) ​ ​ — ​ Interest expense, net ​ ​ 253,552 ​ ​ 268,701 ​ ​ 286,743 ​ ​ 228,111 ​ ​ 199,872 ​ (Gain) loss on early extinguishment of debt ​ ​ 16,956 ​ ​ 1,500 ​ ​ — ​ ​ (36,419) ​ ​ (175,962) ​ Provision for income tax benefit ​ ​ (496,376) ​ ​ (295,051) ​ ​ (128,857) ​ ​ (74,110) ​ ​ (397,482) ​ Depletion, depreciation, amortization, and accretion ​ ​ 812,346 ​ ​ 827,220 ​ ​ 975,284 ​ ​ 918,629 ​ ​ 865,291 ​ Impairment of oil and gas properties ​ ​ 162,935 ​ ​ 159,598 ​ ​ 549,437 ​ ​ 1,300,444 ​ ​ 223,770 ​ Impairment of midstream assets ​ ​ — ​ ​ 23,431 ​ ​ 9,658 ​ ​ 14,782 ​ ​ — ​ Impairment of equity method investment ​ ​ — ​ ​ — ​ ​ — ​ ​ 467,590 ​ ​ 610,632 ​ Exploration expense ​ ​ 6,862 ​ ​ 8,538 ​ ​ 4,958 ​ ​ 884 ​ ​ 1,083 ​ Equity-based compensation expense ​ ​ 102,421 ​ ​ 103,445 ​ ​ 70,413 ​ ​ 23,559 ​ ​ 23,317 ​ Equity in (earnings) loss of unconsolidated affiliates ​ ​ (485) ​ ​ (20,194) ​ ​ (40,280) ​ ​ 143,216 ​ ​ 62,660 ​ Distributions/dividends from unconsolidated affiliates ​ ​ 7,702 ​ ​ 20,195 ​ ​ 46,415 ​ ​ 157,956 ​ ​ 171,022 ​ State franchise taxes ​ ​ 50 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Loss on the sale of equity method investment shares ​ ​ — ​ ​ — ​ ​ — ​ ​ 108,745 ​ ​ — ​ Contract termination and rig stacking ​ ​ — ​ ​ — ​ ​ — ​ ​ 14,026 ​ ​ 14,290 ​ Water earnout ​ ​ — ​ ​ — ​ ​ — ​ ​ (125,000) ​ ​ — ​ Simplification transaction fees ​ ​ — ​ ​ — ​ ​ — ​ ​ 15,482 ​ ​ — ​ Transaction expense ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 7,244 ​ ​ ​ ​ 1,536,144 ​ ​ 1,459,571 ​ ​ 2,037,382 ​ ​ 1,320,786 ​ ​ 1,047,171 ​ Antero Midstream Partners related adjustments (1) ​ ​ (151,702) ​ ​ (215,177) ​ ​ (320,262) ​ ​ (73,115) ​ ​ — ​ Martica related adjustments (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (45,155) ​ Adjusted EBITDAX ​ $ 1,384,442 ​ ​ 1,244,394 ​ ​ 1,717,120 ​ ​ 1,247,671 ​ ​ 1,002,016 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reconciliation of our Adjusted EBITDAX to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted EBITDAX ​ $ 1,384,442 ​ ​ 1,244,394 ​ ​ 1,717,120 ​ ​ 1,247,671 ​ ​ 1,002,016 ​ Antero Midstream Partners related adjustments (1) ​ ​ 151,702 ​ ​ 215,177 ​ ​ 320,262 ​ ​ 73,115 ​ ​ — ​ Martica related adjustments (2) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 45,155 ​ Interest expense, net ​ ​ (253,552) ​ ​ (268,701) ​ ​ (286,743) ​ ​ (228,111) ​ ​ (199,872) ​ Exploration expense ​ ​ (6,862) ​ ​ (8,538) ​ ​ (4,958) ​ ​ (884) ​ ​ (1,083) ​ Changes in current assets and liabilities ​ ​ (32,920) ​ ​ 76,035 ​ ​ (25,423) ​ ​ 35,542 ​ ​ (109,047) ​ State franchise taxes ​ ​ (50) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ Simplification transaction fees ​ ​ — ​ ​ — ​ ​ — ​ ​ (15,482) ​ ​ — ​ Transaction expense ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ (7,244) ​ Proceeds from derivative monetizations ​ ​ — ​ ​ 749,906 ​ ​ 370,365 ​ ​ — ​ ​ 9,007 ​ Premium paid on derivative contracts ​ ​ — ​ ​ — ​ ​ (13,318) ​ ​ — ​ ​ — ​ Other items ​ ​ (1,504) ​ ​ (1,982) ​ ​ 4,682 ​ ​ (8,393) ​ ​ (3,292) ​ Net cash provided by operating activities ​ $ 1,241,256 ​ ​ 2,006,291 ​ ​ 2,081,987 ​ ​ 1,103,458 ​ ​ 735,640 ​ (1) Amounts reflected are net of any elimination adjustments for intercompany activity and include activity related to Antero Midstream Partners through March 12, 2019. Effective March 13, 2019, Antero accounts for its unconsolidated investment in Antero Midstream Corporation using the equity method of accounting. See Note 6—Equity Method Investments to the consolidated financial statements for further discussion on equity method investments. (2) Adjustments reflect noncontrolling interests in Martica not otherwise adjusted in amounts above. ​ 52 Table of Contents