What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-07-27 compared with 2022-04-27 · 291 added, 149 removed, 862 unchanged (34% of the section changed)

6 unchanged sentences

Unregistered Sales of Equity Securities

Mine Safety Disclosures

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

9 unchanged sentences

● our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness;

● ability to execute our share repurchase program;

● our ability to execute our share repurchase program;

● natural gas, natural gas liquids (“NGLs”) and oil prices;

77 unchanged sentences

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

313,930 and 308,812 shares issued and outstanding as of December 31, 2021 and June 30, 2022, respectively

Additional paid-in capital

5 unchanged sentences

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(In thousands, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Revenue and other:

2 unchanged sentences

Commodity derivative fair value losses

( 1,011,380 )

Amortization of deferred revenue, VPP

Other income (loss)

Total revenue

3 unchanged sentences

Production and ad valorem taxes

Exploration and mine expenses

General and administrative (including equity-based compensation expense of $ 4,249 and $ 8,171 in 2021 and 2022, respectively)

3 unchanged sentences

Contract termination

Loss on sale of assets

(Gain) loss on sale of assets

Total operating expenses

7 unchanged sentences

Total other expense

Loss before income taxes

Income tax benefit

Net loss and comprehensive loss including noncontrolling interests

Income (loss) before income taxes

Income tax benefit (expense)

Net income (loss) and comprehensive income (loss) including noncontrolling interests

net income (loss) and comprehensive income (loss) attributable to noncontrolling interests

Net loss and comprehensive loss attributable to Antero Resources Corporation

Loss per share—basic

Loss per share—diluted

Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation

Income (loss) per share—basic

Income (loss) per share—diluted

Weighted average number of shares outstanding:

1 unchanged sentence

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited)

(In thousands, except per share amounts)

Six Months Ended June 30,

Revenue and other:

Natural gas sales

Natural gas liquids sales

Commodity derivative fair value losses

( 1,009,596 )

( 1,277,042 )

Amortization of deferred revenue, VPP

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing and transportation

Production and ad valorem taxes

Exploration and mine expenses

General and administrative (including equity-based compensation expense of $ 9,891 and $ 12,820 in 2021 and 2022, respectively)

Depletion, depreciation and amortization

Impairment of oil and gas properties

Accretion of asset retirement obligations

Contract termination

(Gain) loss on sale of assets

Total operating expenses

Operating income (loss)

Other income (expense):

Interest expense, net

Equity in earnings of unconsolidated affiliate

Loss on early extinguishment of debt

Loss on convertible note equitizations

Transaction expense

Total other expense

Income (loss) before income taxes

Income tax benefit (expense)

Net income (loss) and comprehensive income (loss) including noncontrolling interests

net income (loss) and comprehensive income (loss) attributable to noncontrolling interests

Net income (loss) and comprehensive income (loss) attributable to Antero Resources Corporation

Income (loss) per share—basic

Income (loss) per share—diluted

Weighted average number of shares outstanding:

See accompanying notes to unaudited condensed consolidated financial statements.

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

6 unchanged sentences

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

Distributions to noncontrolling interest

Equity-based compensation

Distributions to noncontrolling interests

Net income (loss) and comprehensive income (loss)

Balances, March 31, 2021

Issuance of common shares

Equity component of 2026 Convertible Notes, net

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

Equity-based compensation

Distributions to noncontrolling interests

Net loss and comprehensive loss

Balances, June 30, 2021

Balances, December 31, 2021

1 unchanged sentence

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

Distributions to noncontrolling interest

Repurchases and retirements of common stock

Equity-based compensation

Distributions to noncontrolling interests

Net loss and comprehensive loss

Balances, March 31, 2022

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

Conversion of 2026 Convertible Notes

Repurchases and retirements of common stock

Equity-based compensation

Distributions to noncontrolling interests

Net income and comprehensive income

Balances, June 30, 2022

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows provided by (used in) operating activities:

Net loss including noncontrolling interests

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss) including noncontrolling interests

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depletion, depreciation, amortization and accretion

Commodity derivative fair value losses

Gains (losses) on settled commodity derivatives

Deferred income tax benefit

Losses on settled commodity derivatives

Payments for derivative monetizations

Deferred income tax expense (benefit)

Equity-based compensation expense

4 unchanged sentences

Settlement of asset retirement obligations

Loss on sale of assets

(Gain) loss on sale of assets

Loss on early extinguishment of debt

21 unchanged sentences

Repayment of senior notes

( 1,234,698 )

Borrowings (repayments) on bank credit facilities, net

( 1,017,000 )

Payment of debt issuance costs

3 unchanged sentences

Net cash used in financing activities

( 1,013,551 )

Net increase in cash and cash equivalents

16 unchanged sentences

These unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, and, accordingly, do not include all of the information and footnotes required by GAAP for complete consolidated financial statements.

In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2021 and March 31, 2022 and its results of operations and cash flows for the three months ended March 31, 2021 and 2022.

In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2021 and June 30, 2022, results of operations for the three and six months ended June 30, 2021 and 2022 and cash flows for the six months ended June 30, 2021 and 2022.

The Company has no items of other comprehensive income or loss;

therefore, its net income or loss is equal to its comprehensive income or loss.

Operating results for the period ended March 31, 2022 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, the impacts of COVID-19 and other factors.

Operating results for the period ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year because of the impact of fluctuations in prices received for natural gas, NGLs and oil, natural production declines, the uncertainty of exploration and development drilling results, fluctuations in the fair value of derivative instruments, the impacts of COVID-19 and other factors.

Principles of Consolidation

7 unchanged sentences

As of December 31, 2021, the book overdrafts included within accounts payable and revenue distributions payable were $ 5 million and $ 52 million, respectively.

As of March 31, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $ 47 million and $ 41 million, respectively.

As of June 30, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $ 63 million and $ 50 million, respectively.

Earnings (Loss) Per Common Share

Earnings (loss) per common share—basic for each period is computed by dividing net income (loss) attributable to Antero by the basic weighted average number of shares outstanding during the period.

Earnings (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from outstanding equity awards and shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt).

The Company includes restricted stock unit (“RSU”) awards, performance share unit (“PSU”) awards and stock options in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of

Earnings (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity awards using the treasury stock method and (ii) shares of common stock issuable upon conversion of the 2026 Convertible Notes (as defined below in Note 7—Long-Term Debt) using the if-converted method.

The Company includes restricted stock unit (“RSU”) awards, performance share unit

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

the performance period required for the vesting of the awards.

The potential dilutive effect of the 2026 Convertible Notes is calculated using the (i) treasury stock method for the three months ended March 31, 2021 as a result of the Company’s intent to settle the principal amount of such convertible notes in cash upon conversion, and (ii) if-converted method for the three months ended March 31, 2022, as a result of the partial equitizations of the 2026 Convertible Notes during 2021.

See Note 7—Long-Term Debt for further discussion on the equitization transactions.

(“PSU”) awards and stock options in the calculation of diluted weighted average shares outstanding based on the number of common shares that would be issuable if the end of the period was also the end of the performance period required for the vesting of the awards.

During periods in which the Company incurs a net loss, diluted weighted average shares outstanding are equal to basic weighted average shares outstanding because the effects of all equity awards and the 2026 Convertible Notes are anti-dilutive.

The following is a reconciliation of the Company’s earnings (loss) attributable to common stockholders for basic and diluted earnings (loss) per share (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

Net income (loss) attributable to Antero Resources Corporation—common shareholders

Interest expense for 2026 Convertible Notes

Tax-effect of interest expense for 2026 Convertible Notes

Net income (loss) attributable to Antero Resources Corporation—common shareholders and assumed conversions

Income (loss) per share—basic

Income (loss) per share—diluted

Weighted average common shares outstanding—basic

Weighted average common shares outstanding—diluted

The following is a reconciliation of the Company’s basic weighted average shares outstanding to diluted weighted average shares outstanding during the periods presented (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Basic weighted average number of shares outstanding

1 unchanged sentence

Dilutive effect of PSUs

Dilutive effect of outstanding stock options

Dilutive effect of stock options

Dilutive effect of 2026 Convertible Notes

1 unchanged sentence

Weighted average number of outstanding securities excluded from calculation of diluted earnings per common share (1) :

Outstanding stock options

Stock options

2026 Convertible Notes

(1) The potential dilutive effects of these awards were excluded from the computation of diluted earnings (loss) per common share because the inclusion of these awards would have been anti-dilutive.

Recently Issued Accounting Standard

Recently Issued Accounting Standards

Convertible Debt Instruments

2 unchanged sentences

It is effective for interim and annual reporting periods beginning after December 31, 2021.

The Company adopted the standard effective January 1, 2022 under the modified retrospective transition method, which impacts only the debt instruments outstanding on the adoption date.

The Company adopted

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

the standard effective January 1, 2022 under the modified retrospective transition method, which impacts only the debt instruments outstanding on the adoption date.

Upon adoption of this new standard, the Company reclassified $ 24 million, net of deferred income taxes and equity issuance costs, from additional paid-in capital and increased long-term debt by $ 27 million, reduced deferred income tax liability by $ 6 million and reduced accumulated deficit by $ 3 million as of January 1, 2022.

Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2022 is based on an effective interest rate of 4.9 % as compared to 15.1 % for the three months ended March 31, 2021.

Additionally, annual interest expense for the 2026 Convertible Notes beginning January 1, 2022 is based on an effective interest rate of 4.9 % as compared to 15.1 % for the three and six months ended June 30, 2021.

In December 2019, the FASB issued ASU No.

3 unchanged sentences

The Company adopted this ASU on January 1, 2021, and it did not have a material impact on the Company's consolidated financial statements.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(3) Transactions

12 unchanged sentences

Additionally, for each annual tranche in which QL participates, Antero Resources and QL will enter into assignments, bills of sale and conveyances pursuant to which QL will be conveyed a proportionate working interest percentage in each well spud in that year, which conveyances will not be subject to any reversion.

Under the terms of the arrangement, QL funded 20 % of development capital for wells spud in 2021, is expected to fund 15 % in 2022 and between 15 % and 20 % of development capital spending for wells spud on an annual basis in 2023 and 2024, which funding amounts represent QL’s proportionate working interest in such wells.

Under the terms of the arrangement, QL funded 20 % of development capital for wells spud in 2021, and will fund 15 % in 2022 and between 15 % and 20 % of development capital spending for wells spud on an annual basis in 2023 and 2024, which funding amounts represent QL’s proportionate working interest in such wells.

Additionally, Antero Resources may receive a carry in the form of a one-time payment from QL for each annual tranche if the IRR for such tranche exceeds certain specified returns, which will be determined no earlier than October 31 and no later than December 1 following the end of each tranche year.

2 unchanged sentences

Subject to the preceding sentence, for any wells included in a tranche, QL is obligated and responsible for its working interest share of costs and liabilities, and is entitled to its working interest share of revenues, associated with such wells for the life of such wells.

If Antero Resources presents a capital budget for an annual tranche with an estimated IRR equal to or exceeding a specified return that QL in good faith believes is less than such specified return and QL elects not to participate, Antero Resources will not be obligated to offer QL the opportunity to participate in subsequent annual tranches.

The Company has accounted for the drilling partnership as a conveyance under ASC 932 and such conveyances are recorded in the unaudited condensed consolidated financial statements as QL obtains its proportionate working interest in each well.

No gain or loss was recognized for the interests conveyed during the three months ended March 31, 2021 and 2022.

If Antero Resources presents a capital budget for an annual tranche with an estimated IRR equal to or exceeding a specified

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

return that QL in good faith believes is less than such specified return and QL elects not to participate, Antero Resources will not be obligated to offer QL the opportunity to participate in subsequent annual tranches.

No gain or loss was recognized for the interests conveyed during the three and six months ended June 30, 2021 and 2022.

Disaggregation of Revenue

1 unchanged sentence

See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments.

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Reportable Segment

19 unchanged sentences

Accordingly, the Company’s contracts do not give rise to contract assets or liabilities.

As of December 31, 2021 and March 31, 2022, the Company’s receivables from contracts with customers were $ 591 million and $ 661 million, respectively.

As of December 31, 2021 and June 30, 2022, the Company’s receivables from contracts with customers were $ 591 million and $ 952 million, respectively.

(5) Equity Method Investment

Summary of Equity Method Investment

As of March 31, 2022, Antero owned approximately 29.1 % of Antero Midstream Corporation’s (“Antero Midstream”) common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting.

As of June 30, 2022, Antero owned approximately 29.1 % of Antero Midstream Corporation’s (“Antero Midstream”) common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands):

3 unchanged sentences

Elimination of intercompany profit

Balance as of March 31, 2022 (1)

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2021 and March 31, 2022 was $ 1.3 billion and $ 1.5 billion, respectively, based on the quoted market share price of Antero Midstream.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Balance as of June 30, 2022 (1)

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2021 and June 30, 2022 was $ 1.3 billion based on the quoted market share price of Antero Midstream.

Summarized Financial Information of Antero Midstream

8 unchanged sentences

Statement of Operations

Three Months Ended March 31,

Six Months Ended June 30,

Operating expenses

6 unchanged sentences

Interest expense, net

Accrued production and ad valorem taxes

Production and ad valorem taxes

General and administrative expense

Derivative settlements payable

Accrued general and administrative expense

Total accrued liabilities

16 unchanged sentences

On October 26, 2021, Antero Resources entered into an amended and restated senior secured revolving credit facility (the “Credit Facility”).

As of December 31, 2021 and March 31, 2022, the Credit Facility had a borrowing base of $ 3.5 billion and lender commitments of $ 1.5 billion.

As of December 31, 2021 and June 30, 2022, the Credit Facility had a borrowing base of $ 3.5 billion and lender commitments of $ 1.5 billion.

The borrowing base was re-affirmed in the semi-annual redetermination in April 2022.

The maturity date of the Credit Facility is the earlier of (i) October 26, 2026 and (ii) the date that is 180 days prior to the earliest stated redemption date of any series of the Company’s then outstanding senior notes.

As of March 31, 2022, the Credit Facility had an available borrowing capacity of $ 581 million.

As of June 30, 2022, the Credit Facility had an available borrowing capacity of $ 924 million.

The Credit Facility contains requirements with respect to leverage and current ratios, and certain covenants, including restrictions on our ability to incur debt and limitations on our ability to pay dividends unless certain customary conditions are met, in each case, subject to customary carve-outs and exceptions.

Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2021 and March 31, 2022.

Antero Resources was in compliance with all of the financial covenants under the Credit Facility as of December 31, 2021 and June 30, 2022.

The senior secured revolving credit facility agreement in effect prior to October 26, 2021 provided for borrowing under either an Alternate Base Rate or as a Eurodollar Loan (as each term is defined in the agreement), and the Credit Facility provides for borrowing at either an Adjusted Term Secured Overnight Financing Rate (“SOFR”), an Adjusted Daily Simple SOFR or an Alternate Base Rate (each as defined in the Credit Facility).

6 unchanged sentences

As of December 31, 2021, Antero Resources had no borrowings under the Credit Facility and outstanding letters of credit of $ 531 million.

As of March 31, 2022, Antero Resources had an outstanding balance under the Credit Facility of $ 388 million, with a weighted average interest rate of 2.73 %, and had outstanding letters of credit of $ 531 million.

As of June 30, 2022, Antero Resources had an outstanding balance under the Credit Facility of $ 71 million, with a weighted average interest rate of 3.95 %, and had outstanding letters of credit of $ 505 million.

(b) 5.125 % Senior Notes Due 2022

1 unchanged sentence

On September 18, 2014, Antero Resources issued an additional $ 500 million of the 2022 Notes at 100.5 % of par.

The Company repurchased or otherwise fully redeemed all of the 2022 Notes between 2019 and the first quarter of 2021.

Interest on the 2022 Notes

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

was payable on June 1 and December 1 of each year.

See “—Debt Repurchase Program” below for further details on 2022 Notes repurchases.

repurchased or otherwise fully redeemed all of the 2022 Notes between 2019 and the first quarter of 2021.

Interest on the 2022 Notes was payable on June 1 and December 1 of each year.

See “—Debt Repurchase Program” below for more information.

2 unchanged sentences

Interest on the 2023 Notes was payable on June 1 and December 1 of each year.

See “—Debt Repurchase Program” below for more information.

(d) 5.00 % Senior Notes Due 2025

2 unchanged sentences

Interest on the 2025 Notes was payable on March 1 and September 1 of each year.

See “—Debt Repurchase Program” below for further details on 2025 Notes repurchases and redemption.

See “—Debt Repurchase Program” below for more information.

(e) 8.375 % Senior Notes Due 2026

On January 4, 2021, Antero Resources issued $ 500 million of 8.375 % senior notes due July 15, 2026 (the “2026 Notes”) at par .

The Company redeemed $ 175 million of the 2026 Notes on July 1, 2021, and as of March 31, 2022, $ 325 million principal amount of the 2026 Notes remained outstanding.

See “—Debt Repurchase Program” below for further details on the 2026 Notes redemption.

The Company redeemed $ 175 million of the 2026 Notes on July 1, 2021 and repurchased $ 13 million of the 2026 Notes during the second quarter of 2022, and as of June 30, 2022, $ 312 million principal amount of the 2026 Notes remained outstanding.

See “—Debt Repurchase Program” below for more information.

The 2026 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility.

7 unchanged sentences

On January 26, 2021, Antero Resources issued $ 700 million of 7.625 % senior notes due February 1, 2029 (the “2029 Notes”) at par .

The Company redeemed $ 116 million of the 2029 Notes during the fourth quarter of 2021, and as of March 31, 2022, $ 584 million principal amount of the 2029 Notes remained outstanding.

See “—Debt Repurchase Program” below for further details on the 2029 Notes redemption.

The Company redeemed $ 116 million of the 2029 Notes during the fourth quarter of 2021 and repurchased $ 50 million of the 2029 Notes during the second quarter of 2022, and as of June 30, 2022, $ 534 million principal amount of the 2029 Notes remained outstanding.

See “—Debt Repurchase Program” below for more information.

The 2029 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility.

22 unchanged sentences

During 2021, the Company completed the equitization transactions described below under “—Partial Equitizations of 2026 Convertible Notes,” that extinguished $ 206 million principal amount of the 2026 Convertible Notes.

As of March 31, 2022, $ 82 million principal amount of the 2026 Convertible Notes remained outstanding.

On June 29, 2022, a noteholder elected to convert $ 4 million in aggregate principal amount of the 2026 Convertible Notes pursuant to their terms.

The Company elected to settle this conversion by issuing approximately 1 million shares of common stock to the noteholder.

As of June 30, 2022, $ 78 million principal amount of the 2026 Convertible Notes remained outstanding.

The 2026 Convertible Notes were issued pursuant to an indenture and are senior, unsecured obligations of Antero Resources.

3 unchanged sentences

The initial conversion rate is 230.2026 shares of Antero Resources’ common stock per $1,000 principal amount of 2026 Convertible Notes, subject to adjustment upon the occurrence of specified events.

As of March 31, 2022, the if-converted value of the 2026 Convertible Notes was $ 573 million, which exceeded the principal amount of the 2026 Convertible Notes by $ 492 million.

As of June 30, 2022, the if-converted value of the 2026 Convertible Notes was $ 547 million, which exceeded the principal amount of the 2026 Convertible Notes by $ 470 million.

The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted.

Before May 1, 2026, note holders will have the right to convert their 2026 Convertible Notes only upon the occurrence of the following events:

Before May 1, 2026, noteholders will have the right to convert their 2026 Convertible Notes only upon the occurrence of the following events:

● during any calendar quarter (and only during such calendar quarter) commencing after the calendar quarter ending on September 30, 2020, if the Last Reported Sale Price per share of Antero Resources’ common stock exceeds 130 % of the Conversion Price for each of at least 20 Trading Days (whether or not consecutive) during the 30 consecutive Trading Days ending on, and including, the last Trading Day of the immediately preceding calendar quarter (the “Stock Price Condition”);

2 unchanged sentences

● upon the occurrence of certain specified corporate events as set forth in the indenture governing the 2026 Convertible Notes.

From and after May 1, 2026, noteholders may convert their 2026 Convertible Notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Upon conversion, Antero Resources may satisfy its conversion obligation by paying and/or delivering, as the case may be, cash, shares of Antero Resources’ common stock or a combination of cash and shares of Antero Resources’ common stock, at Antero Resources’ election, in the manner and subject to the terms and conditions provided in the indenture governing the 2026 Convertible Notes.

The 2026 Convertible Notes have met the Stock Price Condition allowing holders of the 2026 Convertible Notes to exercise their conversion right as of March 31, 2022.

The 2026 Convertible Notes have met the Stock Price Condition allowing holders of the 2026 Convertible Notes to exercise their conversion right as of June 30, 2022.

The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the 2026 Convertible Notes.

18 unchanged sentences

The Company accounted for this transaction as an inducement of the 2026 Convertible Notes, and as a result, the Company recorded a $ 39 million loss on convertible note equitization in the unaudited condensed consolidated statements of operations and comprehensive loss for the three months ended March 31, 2021 for the consideration paid in excess of the original terms of the 2026 Convertible Notes.

Additionally, the January Equitization Transactions resulted in a loss on early extinguishment of debt of $ 41 million in the unaudited condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2021.

Additionally, the January Equitization Transactions

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

resulted in a loss on early extinguishment of debt of $ 41 million in the unaudited condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2021.

On May 13, 2021, the Company completed a registered direct offering (the “May Share Offering”) of an aggregate of 11.6 million shares of its common stock at a price of $ 11.01 per share to certain holders of the 2026 Convertible Notes.

12 unchanged sentences

See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements.

Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, amortization of the debt discount and debt issuance costs totaled $ 4 million and $ 1 million for the three months ended March 31, 2021 and 2022, respectively.

Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate, amortization of the debt discount and debt issuance costs totaled $ 3 million and $ 1 million for the three months ended June 30, 2021 and 2022, respectively, and $ 7 million and $ 2 million for the six months ended June 30, 2021 and 2022, respectively.

(i) Debt Repurchase Program

During the three months ended March 31, 2021, the Company redeemed the remaining $ 661 million aggregate principal amount of its 2022 Notes at par, plus accrued and unpaid interest, and as a result, the 2022 Notes were fully retired as of February 10, 2021.

During the three months ended March 31, 2022, the Company redeemed the remaining $ 585 million aggregate principal amount of its 2025 Notes at a redemption price of 101.25 % of the principal amount thereof, plus accrued and unpaid interest and recognized a loss on early debt extinguishment of $ 11 million.

During the first quarter of 2021, the Company redeemed the remaining $ 661 million aggregate principal amount of its 2022 Notes at par, plus accrued and unpaid interest, and as a result, the 2022 Notes were fully retired as of February 10, 2021.

The Company redeemed the remaining $ 574 million of the 2023 Notes at par, plus accrued and unpaid interest, during the second quarter of 2021.

The 2023 Notes were fully retired as of June 1, 2021.

During the first quarter of 2022, the Company redeemed the remaining $ 585 million aggregate principal amount of its 2025 Notes at a redemption price of 101.25 % of the principal amount thereof, plus accrued and unpaid interest and recognized a loss on early debt extinguishment of $ 11 million.

During the second quarter of 2022, the Company repurchased $ 13 million of its 2026 Notes and $ 50 million of its 2029 Notes at a weighted average premium of 106 % and recognized a loss on early debt extinguishment of $ 4 million.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(8) Asset Retirement Obligations

6 unchanged sentences

Revisions to prior estimates

Asset retirement obligations—March 31, 2022

Asset retirement obligations—June 30, 2022

Asset retirement obligations are included in Other liabilities on the Company’s condensed consolidated balance sheets.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(9) Equity-Based Compensation and Cash Awards

7 unchanged sentences

Further, any shares withheld or surrendered in payment of any taxes relating to awards that were outstanding under either the 2013 Plan as of June 17, 2020 or are granted under the 2020 Plan (other than stock options and stock appreciation rights), will again be available for new awards under the 2020 Plan.

A total of 8,503,317 shares were available for future grant under the 2020 Plan as of March 31, 2022.

A total of 8,459,269 shares were available for future grant under the 2020 Plan as of June 30, 2022.

Antero Midstream Partners LP’s (“Antero Midstream Partners”) general partner was authorized to grant up to 10,000,000 common units representing limited partner interests in Antero Midstream Partners under the Antero Midstream Partners LP Long-Term Incentive Plan (the “AMP Plan”) to non-employee directors of its general partner and certain officers, employees and consultants of Antero Midstream Partners and its affiliates (which includes Antero Resources).

1 unchanged sentence

Each RSU award under the AM Plan represents a right to receive one share of Antero Midstream common stock.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company’s equity-based compensation expense, by type of award, is as follows (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Converted AM RSU Awards (1)

3 unchanged sentences

Antero Resources allocates a portion of equity-based compensation expense related to grants prior to March 12, 2019 (date of deconsolidation) to Antero Midstream Partners based on its proportionate share of Antero Resources’ labor costs.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Restricted Stock Unit Awards

2 unchanged sentences

( 2,544,921 )

Total awarded and unvested—March 31, 2022

As of March 31, 2022, there was approximately $ 18 million of unamortized equity-based compensation expense related to unvested RSUs.

Total awarded and unvested—June 30, 2022

As of June 30, 2022, there was approximately $ 47 million of unamortized equity-based compensation expense related to unvested RSUs.

That expense is expected to be recognized over a weighted average period of approximately 2.6 years.

Performance Share Unit Awards

Performance Share Unit Awards Based on Total Shareholder Return

In 2019, the Company granted PSUs to certain of its employees and executive officers that vest based on Antero Resources’ absolute total shareholder return at the end of a three-year performance period (“2019 Absolute TSR PSUs”).

The number of shares of common stock that could ultimately be earned ranged from zero to 200 % of the target number of PSUs granted.

During the second quarter of 2022, the market-based performance condition for the 2019 Absolute TSR PSUs was met at 200 % of target and the 2019 Absolute TSR PSUs were converted into approximately 2 million shares of common stock.

In April 2022, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute TSR determined as of the last day of each of three one-year performance periods ending on April 15, 2023, April 15, 2024 and April 15, 2025, and one cumulative three-year performance period ending on April 15, 2025, in each case, subject to certain continued employment criteria (“2022 Absolute TSR PSUs”).

The number of shares of common stock that may ultimately be earned following the end of the cumulative three-year performance period with respect to the 2022 Absolute TSR PSUs ranges from zero to 200 % of the target number of 2022 Absolute TSR PSUs originally granted.

Expense related to these PSUs is recognized on a graded-vested basis over the term of each performance period.

Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that were forfeited during the period.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2022 Absolute TSR PSUs:

Dividend yield

Risk-free interest rate

Weighted average fair value of awards granted—Absolute TSR

Performance Share Unit Awards Based on Leverage Ratio

In April 2022, the Company granted PSUs to certain of its senior management and executive officers that vest based on the Company’s total debt less cash and cash equivalents divided by the Company’s Adjusted EBITDAX ( as defined in the award agreement ) determined as of the last day of each of three one-year performance periods ending on December 31, 2022, December 31, 2023 and December 31, 2024, in each case, subject to certain continued employment criteria (“Leverage Ratio PSUs”).

The number of shares of common stock that may ultimately be earned following the end of the third performance period with respect to the Leverage Ratio PSUs ranges from zero to 200 % of the target number of Leverage Ratio PSUs originally granted.

Expense related to the Leverage Ratio PSUs is recognized on a graded-vested basis over the term of each performance period that reflects the number of shares of common stock that are expected to be issued at the end of each measurement period, and such expense is reversed if the likelihood of achieving the performance condition becomes improbable.

As of June 30, 2022, the likelihood of achieving the performance conditions related to the Leverage Ratio PSUs was probable.

Summary Information for Performance Share Unit Awards

A summary of PSU award activity is as follows:

2 unchanged sentences

Total awarded and unvested—December 31, 2021

( 1,210,712 )

Cancelled (unearned)

Total awarded and unvested—March 31, 2022

As of March 31, 2022, there was approximately $ 6 million of unamortized equity-based compensation expense related to unvested PSUs.

Total awarded and unvested—June 30, 2022

As of June 30, 2022, there was approximately $ 15 million of unamortized equity-based compensation expense related to unvested PSUs.

That expense is expected to be recognized over a weighted average period of approximately 2.5 years.

The number of shares of common stock that could ultimately be earned ranged from zero to 200 % of the target number of PSUs granted.

In April 2022, the market-based performance condition for the Absolute TSR PSUs was met at 200 % of target.

As a result, the Absolute TSR PSUs will convert into approximately 2 million shares during the second quarter of 2022.

Converted AM RSU Awards

1 unchanged sentence

Total awarded and unvested—December 31, 2021

Total awarded and unvested—March 31, 2022

Total awarded and unvested—June 30, 2022

As of June 30, 2022, there was less than $ 0.1 million of unamortized equity-based compensation expense related to unvested Converted AM RSU Awards.

That expense is expected to be recognized over a weighted average period of 0.5 years, and the Company’s proportionate share will be allocated to it as it is recognized.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

As of March 31, 2022, there was $ 0.1 million of unamortized equity-based compensation expense related to unvested Converted AM RSU Awards.

That expense is expected to be recognized over a weighted average period of 0.4 years, and the Company’s proportionate share will be allocated to it as it is recognized.

Stock Options

2 unchanged sentences

Outstanding—December 31, 2021

Outstanding—March 31, 2022

Vested—March 31, 2022

Exercisable—March 31, 2022

Outstanding—June 30, 2022

Vested—June 30, 2022

Exercisable—June 30, 2022

(1) Intrinsic values are based on the exercise price of the options and the closing price of Antero Resources’ common stock on the referenced dates.

As of March 31, 2022, all stock options were fully vested resulting in no unamortized equity-based compensation expense.

As of June 30, 2022, all stock options were fully vested resulting in no unamortized equity-based compensation expense.

In January 2020, the Company granted cash awards of approximately $ 3 million to certain executives under the 2013 Plan, and compensation expense for these awards is recognized ratably over the vesting period for each of three tranches through January 20, 2023.

In July 2020, the Company granted additional cash awards in the aggregate of $ 3 million to certain non-executive employees under the 2020 Plan that vest ratably over four years .

As of December 31, 2021 and March 31, 2022, the Company has recorded approximately $ 2 million and $ 1 million, respectively, in Other liabilities in the condensed consolidated balance sheets related to unvested cash awards.

As of December 31, 2021 and June 30, 2022, the Company has recorded approximately $ 2 million and $ 1 million, respectively, in Other liabilities in the condensed consolidated balance sheets related to unvested cash awards.

(10) Fair Value

The carrying values of accounts receivable and accounts payable as of December 31, 2021 and March 31, 2022 approximated market values because of their short-term nature.

The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2021 and March 31, 2022 approximated fair value because the variable interest rates are reflective of current market conditions.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The carrying values of accounts receivable and accounts payable as of December 31, 2021 and June 30, 2022 approximated market values because of their short-term nature.

The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2021 and June 30, 2022 approximated fair value because the variable interest rates are reflective of current market conditions.

The following table sets forth the fair value and carrying value of the senior notes and 2026 Convertible Notes (in thousands):

December 31, 2021

March 31, 2022

June 30, 2022

2026 Convertible Notes

1 unchanged sentence

(2) Carrying values are presented net of unamortized debt issuance costs and debt discounts or premiums.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

See Note 9—Equity-Based Compensation and Cash Awards to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards.

See Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of derivative financial instruments.

7 unchanged sentences

This market risk exposure is generally offset by the change in market prices of natural gas, NGLs and oil recognized upon the ultimate sale of the Company’s production.

The Company was party to various fixed price commodity swap contracts that settled during the three months ended March 31, 2021 and 2022.

The Company was party to various fixed price commodity swap contracts that settled during the three and six months ended June 30, 2021 and 2022.

The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured.

4 unchanged sentences

therefore, all gains and losses are recognized in the Company’s statements of operations.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

As of March 31, 2022, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

As of June 30, 2022, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

Contracted Volume

April-December 2022

July-December 2022

January-December 2023

In addition, the Company has a swaption agreement, which entitles the counterparty the right, but not the obligation, to enter into a fixed price swap agreement on December 21, 2023 to purchase 427,500 MMBtu per day at a price of $ 2.77 per MMBtu for the year ending December 31, 2024.

As of March 31, 2022, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:

As of June 30, 2022, the Company’s natural gas basis swap positions, which settle on the pricing index to basis differential of the Columbia Gas Transmission pipeline (“TCO”) to the NYMEX Henry Hub natural gas price were as follows:

Weighted Average

3 unchanged sentences

Hedged Differential

April-December 2022

July-December 2022

January-December 2023

2 unchanged sentences

Notes to Unaudited Condensed Consolidated Financial Statements

As of March 31, 2022, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows:

As of June 30, 2022, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

Contracted Volume

April-December 2022

July-December 2022

January-December 2023

1 unchanged sentence

January-March 2025

April-December 2022

July-December 2022

Mont Belvieu Propane-OPIS Non-TET

Natural Gasoline

April-December 2022

July-December 2022

Mont Belvieu Natural Gasoline-OPIS Non-TET

1 unchanged sentence

Mont Belvieu Natural Gasoline-OPIS Non-TET

April-December 2022

July-December 2022

West Texas Intermediate

7 unchanged sentences

The VPP includes an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the VPP properties of 78,069,000 MMBtu remaining through December 31, 2026 at a weighted average strike price of $ 2.55 per MMBtu.

The embedded put option is not clearly and closely related to the host contract, and therefore, the Company bifurcated this derivative instrument and reflected it at fair value in the unaudited condensed consolidated financial statements.

The embedded put option is not clearly and closely related to the host contract, and therefore, the Company bifurcated this derivative instrument and reflects it at fair value in the unaudited condensed consolidated financial statements.

ANTERO RESOURCES CORPORATION

22 unchanged sentences

(2) As of December 31, 2021, approximately $ 55 million of commodity derivative liabilities, including $ 31 million of current commodity derivatives and $ 24 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

As of March 31, 2022 , approximately $ 100 million of commodity derivative liabilities, including $ 66 million of current commodity derivatives and $ 34 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

As of June 30, 2022, approximately $ 88 million of commodity derivative liabilities, including $ 53 million of current commodity derivatives and $ 35 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

The following table sets forth the gross values of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties, and the resulting net amounts presented in the condensed consolidated balance sheets as of the dates presented, all at fair value (in thousands):

December 31, 2021

March 31, 2022

June 30, 2022

Net Amounts of

11 unchanged sentences

( 1,166,496 )

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The following table sets forth a summary of derivative fair value gains and losses and where such values are recorded in the unaudited condensed consolidated statements of operations (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Commodity derivative fair value losses (1)

( 1,232,163 )

Embedded derivative fair value losses (1)

(1) The fair value of derivative instruments was determined using Level 2 inputs .

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment.

46 unchanged sentences

Total finance lease obligation

(1) Gas gathering lines and compressor stations leases includes $ 1.5 billion related to Antero Midstream as of December 31, 2021 and March 31, 2022 .

(1) Gas gathering lines and compressor stations leases includes $ 1.5 billion related to Antero Midstream as of December 31, 2021 and June 30, 2022.

See “—Related party lease disclosure” for additional discussion.

(2) Financing lease assets are recorded net of accumulated amortization of $ 2 million and $ 1 million as of December 31, 2021 and March 31, 2022 , respectively.

The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases , because Antero is the sole customer of the assets and because Antero makes the decisions that most impact the economic performance of the assets.

(2) Financing lease assets are recorded net of accumulated amortization of $ 2 million and $ 1 million as of December 31, 2021 and June 30, 2022, respectively.

The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under ASC 842, Leases , because Antero (i) is the sole customer of the assets and (ii) makes the decisions that most impact the economic performance of the assets.

ANTERO RESOURCES CORPORATION

2 unchanged sentences

Costs associated with operating and finance leases were included in the unaudited condensed consolidated statement of operations and comprehensive loss (in thousands):

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Classification

7 unchanged sentences

Statement of operations

Contract termination

Operating lease cost

Statement of operations

Lease operating

15 unchanged sentences

The following table presents the Company’s supplemental cash flow information related to leases (in thousands):

Three Months Ended March 31,

Six Months Ended June 30,

Cash paid for amounts included in the measurement of lease liabilities:

5 unchanged sentences

Increase (decrease) to existing right-of-use assets and lease obligations from operating lease modifications, net (1)

(1) No operating leases were remeasured during the three months ended March 31, 2021.

During the three months ended March 31, 2022 , the weighted average discount rate for remeasured operating leases decreased from 6.3 % as of December 31, 2021 to 3.6 % as of March 31, 2022 .

(1) During the six months ended June 30, 2021, the weighted average discount rate for remeasured operating leases decreased from 5.9 % as of December 31, 2020 to 4.1 % as of June 30, 2021.

During the six months ended June 30, 2022, the weighted average discount rate for remeasured operating leases increased from 4.5 % as of December 31, 2021 to 5.1 % as of June 30, 2022.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

(d) Maturities of Lease Liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2022 (in thousands):

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of June 30, 2022 (in thousands):

Operating Leases

6 unchanged sentences

December 31, 2021

March 31, 2022

June 30, 2022

Operating Leases

9 unchanged sentences

Upon completion of the initial contract term, the gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either the Company or Antero Midstream on or before the 180 th day prior to the anniversary of such effective date.

The Company did no t achieve the quarterly volumetric target for the first quarter of 2021, and therefore, did not earn a rebate for the three months ended March 31, 2021.

During the three months ended March 31, 2022, the Company achieved the quarterly volumetric target, and earned a rebate of $ 12 million.

For the three months ended March 31, 2021 and 2022, gathering and compression fees paid by Antero related to this agreement were $ 177 million and $ 163 million, respectively.

As of December 31, 2021 and March 31, 2022, $ 54 million and $ 56 million was included within Accounts payable, related parties, respectively, on the condensed consolidated balance sheet as due to Antero Midstream related to this agreement.

The Company did no t achieve the quarterly volumetric target for either the first or second quarter of 2021, and therefore, did not earn a rebate for the three and six months ended June 30, 2021.

For the three and six months ended June 30, 2022, the Company earned rebates of $ 12 million and $ 24 million, respectively, by achieving the quarterly volumetric target during the first and second quarters of 2022.

Gathering and compression fees paid by Antero related to this agreement were $ 184 million and $ 164 million for the three months ended June 30, 2021 and 2022, respectively.

For the six months ended June 30, 2021 and 2022, gathering and compression fees paid by Antero related to this agreement were $ 361 million and $ 327 million, respectively.

As of December 31, 2021 and June 30, 2022, $ 54 million and $ 51 million, respectively, was included within Accounts payable, related parties on the condensed consolidated balance sheet as due to Antero Midstream related to this agreement.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

(13) Commitments

The following table sets forth a schedule of future minimum payments for firm transportation, drilling rig and completion services, processing, gathering and compression, and office and equipment agreements, which include leases that have a lease term in excess of one year as of March 31, 2022 (in thousands)

Gathering and

31 unchanged sentences

Notes to Unaudited Condensed Consolidated Financial Statements

There are no remaining payment obligations related to these delayed or cancelled drilling and completion contracts as of March 31, 2022.

There are no remaining payment obligations related to these delayed or cancelled drilling and completion contracts as of June 30, 2022.

(14) Contingencies

19 unchanged sentences

In February 2021, the Company and its royalty owners received a gross payment of approximately $ 107 million from WGL, which was in full satisfaction and discharge of the June 2019 judgment entered in favor of the Company.

The Company is party to various other legal proceedings and claims in the ordinary course of its business, including, but not limited to, royalty claims.

The Company is party to various other legal proceedings and claims in the ordinary course of its business.

The Company believes that certain of these matters will be covered by insurance and that the outcome of other matters will not have a material adverse effect on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

In addition, pending litigation against operators in the Appalachian Basin, including the Company, could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that may be deducted from royalty payments, among other things, and the Company cannot predict how these issues may ultimately be resolved.

(15) Related Parties

32 unchanged sentences

The summarized operating results of the Company’s reportable segments are as follows (in thousands):

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

Elimination of

11 unchanged sentences

Impairment of oil and gas properties

Impairment of midstream assets

Total operating expenses

Operating income

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

Three Months Ended June 30, 2022

Elimination of

Equity Method

Investment in

Transactions and

Unconsolidated

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing and transportation

General and administrative

Depletion, depreciation and amortization

Impairment of oil and gas properties

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Three Months Ended March 31, 2022

Six Months Ended June 30, 2021

Equity Method

Elimination of

Investment in

Transactions and

Unconsolidated

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing and transportation

General and administrative

Depletion, depreciation and amortization

Impairment of oil and gas properties

Impairment of midstream assets

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

Six Months Ended June 30, 2022

Elimination of

Equity Method

14 unchanged sentences

Capital expenditures for segment assets

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The summarized assets of the Company’s reportable segments are as follows (in thousands):

7 unchanged sentences

( 5,544,001 )

As of March 31, 2022

As of June 30, 2022

Elimination of

9 unchanged sentences

In addition, a subsidiary guarantor will be released from its obligations under the indentures and its guarantee, upon the release or discharge of the guarantee of other Indebtedness (as defined in the indentures governing the notes) that resulted in the creation of such guarantee, except a release or discharge by or as a result of payment under such guarantee;

if Antero designates such

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes.

if Antero designates such subsidiary as an unrestricted subsidiary and such designation complies with the other applicable provisions of the indentures governing the notes or in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the notes.

The tables set forth below present summarized financial information of Antero, as parent, and its guarantor subsidiaries (in thousands).

The Company’s wholly owned subsidiaries are not restricted from making distributions to the Company.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Balance Sheet

December 31, 2021

March 31, 2022

June 30, 2022

Accounts receivable, non-guarantor subsidiaries

10 unchanged sentences

Statement of Operations

Three Months Ended

March 31, 2022

Six Months Ended

June 30, 2022

Operating expenses

Loss from operations

Net loss and comprehensive loss including noncontrolling interests

Net loss and comprehensive loss attributable to Antero Resources Corporation

Income from operations

Net income and comprehensive income including noncontrolling interests

Net income and comprehensive income attributable to Antero Resources Corporation

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements