ANTERO RESOURCES Corp 10-Q

Item 1. Financial Statements (Unaudited) ​ 3 Item 2. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ​ 35 Item 3. ​ Quantitative and Qualitative Disclosures about Market Risk ​ 52 Item 4. ​ Controls and Procedures ​ 53 PART II—OTHER INFORMATION ​ 54 Item 1. ​ Legal Proceedings ​ 54 Item 1A. ​ Risk Factors ​ 54 Item 2. ​ Unregistered Sales of Equity Securities ​ 54 Item 4. ​ Mine Safety Disclosures ​ 54 Item 5 ​ Other Information ​ 54 Item 6. ​ Exhibits ​ 55 SIGNATURES ​ 56 ​ ​ ​ ​ ​ ​ Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Some of the information in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. When considering these forward-looking statements, investors should keep in mind the risk factors and other cautionary statements in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2022. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: ● our ability to execute our business strategy; ● our production and oil and gas reserves; ● our financial strategy, liquidity and capital required for our development program; ● our ability to obtain debt or equity financing on satisfactory terms to fund acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; ● our ability to execute our return of capital program; ● natural gas, natural gas liquids (“NGLs”) and oil prices; ● impacts of geopolitical events, including the conflicts in Ukraine and in the Middle East, and world health events; ● timing and amount of future production of natural gas, NGLs and oil; ● our hedging strategy and results; ● our ability to meet minimum volume commitments and to utilize or monetize our firm transportation commitments; ● our future drilling plans; ● our projected well costs; ● competition; ● government regulations and changes in laws; ● pending legal or environmental matters; ● marketing of natural gas, NGLs and oil; ● leasehold or business acquisitions; ● costs of developing our properties; ● operations of Antero Midstream Corporation (“Antero Midstream”); ● our ability to achieve our greenhouse gas reduction targets and the costs associated therewith; ● general economic conditions; ● credit markets; 1 Table of Contents ● uncertainty regarding our future operating results; and ● our other plans, objectives, expectations and intentions contained in this Quarterly Report on Form 10-Q. We caution investors that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain or other disruption, availability and cost of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes or changes in law, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of geopolitical and world health events, cybersecurity risks, the state of markets for, and availability of, verified quality carbon offsets and the other risks described or referenced under the heading “Item 1A. Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), which is on file with the Securities and Exchange Commission (“SEC”). Reserve engineering is a process of estimating underground accumulations of natural gas, NGLs and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas, NGLs and oil that are ultimately recovered. Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements. All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q. ​ ​ ​ 2 Table of Contents PART I—FINANCIAL INFORMATION ANTERO RESOURCES CORPORATION Condensed Consolidated Balance Sheets (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, ​ September 30, ​ ​ 2022 2023 ​ Assets ​ Current assets: ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ $ 35,488 ​ ​ 36,928 ​ Accrued revenue ​ ​ 707,685 ​ ​ 373,391 ​ Derivative instruments ​ ​ 1,900 ​ ​ 2,563 ​ Prepaid expenses and other current assets ​ ​ 42,452 ​ ​ 9,537 ​ Total current assets ​ ​ 787,525 ​ ​ 422,419 ​ Property and equipment: ​ ​ ​ ​ ​ ​ ​ Oil and gas properties, at cost (successful efforts method): ​ ​ ​ ​ ​ ​ ​ Unproved properties ​ ​ 997,715 ​ ​ 1,020,394 ​ Proved properties ​ ​ 13,234,777 ​ ​ 13,773,718 ​ Gathering systems and facilities ​ ​ 5,802 ​ ​ 5,802 ​ Other property and equipment ​ ​ 83,909 ​ ​ 95,317 ​ ​ ​ ​ 14,322,203 ​ ​ 14,895,231 ​ Less accumulated depletion, depreciation and amortization ​ ​ ( 4,683,399 ) ​ ​ ( 4,957,449 ) ​ Property and equipment, net ​ ​ 9,638,804 ​ ​ 9,937,782 ​ Operating leases right-of-use assets ​ ​ 3,444,331 ​ ​ 3,128,584 ​ Derivative instruments ​ ​ 9,844 ​ ​ 6,627 ​ Investment in unconsolidated affiliate ​ ​ 220,429 ​ ​ 220,110 ​ Other assets ​ ​ 17,106 ​ ​ 21,035 ​ Total assets ​ $ 14,118,039 ​ ​ 13,736,557 ​ Liabilities and Equity ​ Current liabilities: ​ ​ ​ ​ ​ ​ Accounts payable ​ $ 77,543 ​ ​ 81,904 ​ Accounts payable, related parties ​ ​ 80,708 ​ ​ 89,350 ​ Accrued liabilities ​ ​ 461,788 ​ ​ 335,093 ​ Revenue distributions payable ​ ​ 468,210 ​ ​ 338,244 ​ Derivative instruments ​ ​ 97,765 ​ ​ 31,134 ​ Short-term lease liabilities ​ ​ 556,636 ​ ​ 551,037 ​ Deferred revenue, VPP ​ ​ 30,552 ​ ​ 27,990 ​ Other current liabilities ​ ​ 1,707 ​ ​ 6,302 ​ Total current liabilities ​ ​ 1,774,909 ​ ​ 1,461,054 ​ Long-term liabilities: ​ ​ ​ ​ ​ ​ ​ Long-term debt ​ ​ 1,183,476 ​ ​ 1,606,895 ​ Deferred income tax liability, net ​ ​ 759,861 ​ ​ 805,775 ​ Derivative instruments ​ ​ 345,280 ​ ​ 52,584 ​ Long-term lease liabilities ​ ​ 2,889,854 ​ ​ 2,581,323 ​ Deferred revenue, VPP ​ ​ 87,813 ​ ​ 67,524 ​ Other liabilities ​ ​ 59,692 ​ ​ 63,214 ​ Total liabilities ​ ​ 7,100,885 ​ ​ 6,638,369 ​ 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; 297,393 shares issued and 297,359 outstanding as of December 31, 2022, and 300,386 shares issued and outstanding as of September 30, 2023 ​ ​ 2,974 ​ ​ 3,004 ​ Additional paid-in capital ​ ​ 5,838,848 ​ ​ 5,822,013 ​ Retained earnings ​ ​ 913,896 ​ ​ 1,037,064 ​ Treasury stock, at cost; 34 shares and zero shares as of December 31, 2022 and September 30, 2023, respectively ​ ​ ( 1,160 ) ​ ​ — ​ Total stockholders' equity ​ ​ 6,754,558 ​ ​ 6,862,081 ​ Noncontrolling interests ​ ​ 262,596 ​ ​ 236,107 ​ Total equity ​ ​ 7,017,154 ​ ​ 7,098,188 ​ Total liabilities and equity ​ $ 14,118,039 ​ ​ 13,736,557 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 3 Table of Contents ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ ​ 2022 2023 Revenue and other: ​ ​ ​ ​ ​ ​ ​ Natural gas sales ​ $ 1,736,039 ​ ​ 516,214 ​ Natural gas liquids sales ​ ​ 620,816 ​ ​ 482,570 ​ Oil sales ​ ​ 67,025 ​ ​ 62,629 ​ Commodity derivative fair value gains (losses) ​ ​ ( 530,523 ) ​ ​ 3,448 ​ Marketing ​ ​ 159,985 ​ ​ 53,068 ​ Amortization of deferred revenue, VPP ​ ​ 9,478 ​ ​ 7,701 ​ Other revenue and income ​ ​ 1,804 ​ ​ 546 ​ Total revenue ​ ​ 2,064,624 ​ ​ 1,126,176 ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 27,453 ​ ​ 33,484 ​ Gathering, compression, processing and transportation ​ ​ 716,388 ​ ​ 671,886 ​ Production and ad valorem taxes ​ ​ 92,998 ​ ​ 32,258 ​ Marketing ​ ​ 185,377 ​ ​ 69,542 ​ Exploration and mine expenses ​ ​ 2,975 ​ ​ 591 ​ General and administrative (including equity-based compensation expense of $ 10,402 and $ 18,458 in 2022 and 2023, respectively) ​ ​ 42,903 ​ ​ 58,425 ​ Depletion, depreciation and amortization ​ ​ 169,607 ​ ​ 176,259 ​ Impairment of property and equipment ​ ​ 33,924 ​ ​ 13,476 ​ Accretion of asset retirement obligations ​ ​ 630 ​ ​ 889 ​ Contract termination and loss contingency ​ ​ 17,995 ​ ​ 13,659 ​ Loss (gain) on sale of assets ​ ​ 214 ​ ​ ( 136 ) ​ Other operating expense ​ ​ — ​ ​ 111 ​ Total operating expenses ​ ​ 1,290,464 ​ ​ 1,070,444 ​ Operating income ​ ​ 774,160 ​ ​ 55,732 ​ Other income (expense): ​ ​ ​ ​ ​ ​ ​ Interest expense, net ​ ​ ( 28,326 ) ​ ​ ( 31,634 ) ​ Equity in earnings of unconsolidated affiliate ​ ​ 14,972 ​ ​ 22,207 ​ Loss on early extinguishment of debt ​ ​ ( 30,307 ) ​ ​ — ​ Loss on convertible note inducement ​ ​ ( 169 ) ​ ​ — ​ Total other expense ​ ​ ( 43,830 ) ​ ​ ( 9,427 ) ​ Income before income taxes ​ ​ 730,330 ​ ​ 46,305 ​ Income tax expense ​ ​ ( 135,823 ) ​ ​ ( 13,663 ) ​ Net income and comprehensive income including noncontrolling interests ​ ​ 594,507 ​ ​ 32,642 ​ Less: net income and comprehensive income attributable to noncontrolling interests ​ ​ 34,748 ​ ​ 14,834 ​ Net income and comprehensive income attributable to Antero Resources Corporation ​ $ 559,759 ​ ​ 17,808 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per share—basic ​ $ 1.83 ​ ​ 0.06 ​ Income per share—diluted ​ $ 1.72 ​ ​ 0.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of shares outstanding: ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 305,343 ​ ​ 300,141 ​ Diluted ​ ​ 325,997 ​ ​ 311,534 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. 4 Table of Contents ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2022 2023 ​ Revenue and other: ​ ​ ​ ​ ​ ​ ​ Natural gas sales ​ $ 4,290,825 ​ ​ 1,621,659 ​ Natural gas liquids sales ​ ​ 1,983,509 ​ ​ 1,375,738 ​ Oil sales ​ ​ 219,504 ​ ​ 172,402 ​ Commodity derivative fair value gains (losses) ​ ​ ( 1,807,565 ) ​ ​ 137,924 ​ Marketing ​ ​ 335,173 ​ ​ 155,390 ​ Amortization of deferred revenue, VPP ​ ​ 28,125 ​ ​ 22,852 ​ Other revenue and income ​ ​ 3,578 ​ ​ 1,864 ​ Total revenue ​ ​ 5,053,149 ​ ​ 3,487,829 ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 70,486 ​ ​ 91,553 ​ Gathering, compression, processing and transportation ​ ​ 1,962,878 ​ ​ 1,981,033 ​ Production and ad valorem taxes ​ ​ 227,648 ​ ​ 117,692 ​ Marketing ​ ​ 415,571 ​ ​ 217,078 ​ Exploration and mine expenses ​ ​ 5,267 ​ ​ 2,097 ​ General and administrative (including equity-based compensation expense of $ 23,222 and $ 44,988 in 2022 and 2023, respectively) ​ ​ 123,033 ​ ​ 169,587 ​ Depletion, depreciation and amortization ​ ​ 511,390 ​ ​ 515,247 ​ Impairment of property and equipment ​ ​ 79,749 ​ ​ 44,746 ​ Accretion of asset retirement obligations ​ ​ 3,878 ​ ​ 2,971 ​ Contract termination and loss contingency ​ ​ 20,099 ​ ​ 47,650 ​ Loss (gain) on sale of assets ​ ​ 2,071 ​ ​ ( 447 ) ​ Other operating expense ​ ​ — ​ ​ 336 ​ Total operating expenses ​ ​ 3,422,070 ​ ​ 3,189,543 ​ Operating income ​ ​ 1,631,079 ​ ​ 298,286 ​ Other income (expense): ​ ​ ​ ​ ​ ​ ​ Interest expense, net ​ ​ ( 100,252 ) ​ ​ ( 85,262 ) ​ Equity in earnings of unconsolidated affiliate ​ ​ 54,863 ​ ​ 58,986 ​ Loss on early extinguishment of debt ​ ​ ( 45,375 ) ​ ​ — ​ Loss on convertible note inducement ​ ​ ( 169 ) ​ ​ ( 86 ) ​ Total other expense ​ ​ ( 90,933 ) ​ ​ ( 26,362 ) ​ Income before income taxes ​ ​ 1,540,146 ​ ​ 271,924 ​ Income tax expense ​ ​ ( 308,302 ) ​ ​ ( 46,013 ) ​ Net income and comprehensive income including noncontrolling interests ​ ​ 1,231,844 ​ ​ 225,911 ​ Less: net income and comprehensive income attributable to noncontrolling interests ​ ​ 63,369 ​ ​ 77,756 ​ Net income and comprehensive income attributable to Antero Resources Corporation ​ $ 1,168,475 ​ ​ 148,155 ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per share—basic ​ $ 3.77 ​ ​ 0.50 ​ Income per share—diluted ​ $ 3.51 ​ ​ 0.48 ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of shares outstanding: ​ ​ ​ ​ ​ ​ ​ Basic ​ ​ 309,954 ​ ​ 298,461 ​ Diluted ​ ​ 333,738 ​ ​ 310,958 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ ​ 5 Table of Contents ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ Retained Earnings ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Paid-in ​ (Accumulated ​ Treasury Stock ​ Noncontrolling ​ Total ​ ​ Shares Amount Capital Deficit) ​ Shares Amount Interests Equity ​ Balances, December 31, 2021 ​ ​ 313,930 ​ $ 3,139 ​ ​ 6,371,398 ​ ​ ( 617,377 ) ​ ​ — ​ $ — ​ ​ 308,932 ​ ​ 6,066,092 ​ Equity component of 2026 Convertible Notes, net ​ ​ — ​ ​ — ​ ​ ( 24,411 ) ​ ​ 3,229 ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 21,182 ) ​ Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 780 ​ ​ 8 ​ ​ ( 10,385 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 10,377 ) ​ Repurchases and retirements of common stock ​ ​ ( 3,690 ) ​ ​ ( 37 ) ​ ​ ( 74,745 ) ​ ​ ( 25,263 ) ​ ​ — ​ ​ — ​ ​ ​ ​ ​ ( 100,045 ) ​ Equity-based compensation ​ ​ — ​ ​ — ​ ​ 4,649 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 4,649 ​ Distributions to noncontrolling interests ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 35,757 ) ​ ​ ( 35,757 ) ​ Net loss and comprehensive loss ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 156,419 ) ​ ​ ​ ​ ​ — ​ ​ ( 18,277 ) ​ ​ ( 174,696 ) ​ Balances, March 31, 2022 ​ ​ 311,020 ​ ​ 3,110 ​ ​ 6,266,506 ​ ​ ( 795,830 ) ​ ​ — ​ ​ — ​ ​ 254,898 ​ ​ 5,728,684 ​ Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 2,112 ​ ​ 21 ​ ​ ( 54,463 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 54,442 ) ​ Conversion of 2026 Convertible Notes ​ ​ 921 ​ ​ 9 ​ ​ 3,955 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 3,964 ​ Repurchases and retirements of common stock ​ ​ ( 5,241 ) ​ ​ ( 52 ) ​ ​ ( 104,524 ) ​ ​ ( 88,430 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 193,006 ) ​ Equity-based compensation ​ ​ — ​ ​ — ​ ​ 8,171 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 8,171 ​ Distributions to noncontrolling interests ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 31,541 ) ​ ​ ( 31,541 ) ​ Net income and comprehensive income ​ ​ — ​ ​ — ​ ​ — ​ ​ 765,135 ​ ​ — ​ ​ — ​ ​ 46,898 ​ ​ 812,033 ​ Balances, June 30, 2022 ​ ​ 308,812 ​ ​ 3,088 ​ ​ 6,119,645 ​ ​ ( 119,125 ) ​ ​ — ​ ​ — ​ ​ 270,255 ​ ​ 6,273,863 ​ Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 25 ​ ​ — ​ ​ ( 210 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 210 ) ​ Conversion of 2026 Convertible Notes ​ ​ 4,751 ​ ​ 48 ​ ​ 20,230 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 20,278 ​ Repurchases and retirements of common stock ​ ​ ( 10,457 ) ​ ​ ( 105 ) ​ ​ ( 208,090 ) ​ ​ ( 174,166 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 382,361 ) ​ Equity-based compensation ​ ​ — ​ ​ — ​ ​ 10,402 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 10,402 ​ Distributions to noncontrolling interests ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 46,217 ) ​ ​ ( 46,217 ) ​ Net income and comprehensive income ​ ​ — ​ ​ — ​ ​ — ​ ​ 559,759 ​ ​ — ​ ​ — ​ ​ 34,748 ​ ​ 594,507 ​ Balances, September 30, 2022 ​ ​ 303,131 ​ $ 3,031 ​ ​ 5,941,977 ​ ​ 266,468 ​ ​ — ​ $ — ​ ​ 258,786 ​ ​ 6,470,262 ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 6 Table of Contents ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Additional ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Paid-in ​ Retained ​ Treasury Stock ​ Noncontrolling ​ Total ​ ​ Shares Amount Capital Earnings ​ Shares Amount Interests Equity Balances, December 31, 2022 ​ ​ 297,393 ​ $ 2,974 ​ ​ 5,838,848 ​ ​ 913,896 ​ ​ ( 34 ) ​ $ ( 1,160 ) ​ ​ 262,596 ​ ​ 7,017,154 Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 514 ​ ​ 5 ​ ​ ( 11,464 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 11,459 ) Conversion of 2026 Convertible Notes ​ ​ 4,030 ​ ​ 40 ​ ​ 17,132 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 17,172 Repurchases and retirements of common stock ​ ​ ( 2,616 ) ​ ​ ( 26 ) ​ ​ ( 51,503 ) ​ ​ ( 24,987 ) ​ ​ 34 ​ ​ 1,160 ​ ​ — ​ ​ ( 75,356 ) Equity-based compensation ​ ​ — ​ ​ — ​ ​ 13,018 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 13,018 Distributions to noncontrolling interests ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 51,339 ) ​ ​ ( 51,339 ) Net income and comprehensive income ​ ​ — ​ ​ — ​ ​ — ​ ​ 213,431 ​ ​ — ​ ​ — ​ ​ 47,771 ​ ​ 261,202 Balances, March 31, 2023 ​ ​ 299,321 ​ ​ 2,993 ​ ​ 5,806,031 ​ ​ 1,102,340 ​ ​ — ​ ​ — ​ ​ 259,028 ​ ​ 7,170,392 Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 1,038 ​ ​ 11 ​ ​ ( 15,909 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 15,898 ) Equity-based compensation ​ ​ — ​ ​ — ​ ​ 13,512 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 13,512 Distributions to noncontrolling interests ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 31,745 ) ​ ​ ( 31,745 ) Net income (loss) and comprehensive income (loss) ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 83,084 ) ​ ​ — ​ ​ — ​ ​ 15,151 ​ ​ ( 67,933 ) Balances, June 30, 2023 ​ ​ 300,359 ​ ​ 3,004 ​ ​ 5,803,634 ​ ​ 1,019,256 ​ ​ — ​ ​ — ​ ​ 242,434 ​ ​ 7,068,328 Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes ​ ​ 25 ​ ​ — ​ ​ ( 86 ) ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 86 ) Conversion of 2026 Convertible Notes ​ ​ 2 ​ ​ — ​ ​ 7 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 7 Equity-based compensation ​ ​ — ​ ​ — ​ ​ 18,458 ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ 18,458 Distributions to noncontrolling interest ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ — ​ ​ ( 21,161 ) ​ ​ ( 21,161 ) Net income and comprehensive income ​ ​ — ​ ​ — ​ ​ — ​ ​ 17,808 ​ ​ — ​ ​ — ​ ​ 14,834 ​ ​ 32,642 Balances, September 30, 2023 ​ ​ 300,386 ​ $ 3,004 ​ ​ 5,822,013 ​ ​ 1,037,064 ​ ​ — ​ $ — ​ ​ 236,107 ​ ​ 7,098,188 ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 7 Table of Contents ANTERO RESOURCES CORPORATION Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2022 2023 Cash flows provided by (used in) operating activities: ​ ​ ​ ​ ​ ​ ​ Net income including noncontrolling interests ​ $ 1,231,844 ​ ​ 225,911 ​ Adjustments to reconcile net income to net cash provided by operating activities: ​ ​ ​ ​ ​ ​ ​ Depletion, depreciation, amortization and accretion ​ ​ 515,268 ​ ​ 518,218 ​ Impairments ​ ​ 79,749 ​ ​ 44,746 ​ Commodity derivative fair value losses (gains) ​ ​ 1,807,565 ​ ​ ( 137,924 ) ​ Losses on settled commodity derivatives ​ ​ ( 1,484,660 ) ​ ​ ( 16,511 ) ​ Payments for derivative monetizations ​ ​ — ​ ​ ( 202,339 ) ​ Deferred income tax expense ​ ​ 307,326 ​ ​ 45,914 ​ Equity-based compensation expense ​ ​ 23,222 ​ ​ 44,988 ​ Equity in earnings of unconsolidated affiliate ​ ​ ( 54,863 ) ​ ​ ( 58,986 ) ​ Dividends of earnings from unconsolidated affiliate ​ ​ 93,854 ​ ​ 93,854 ​ Amortization of deferred revenue ​ ​ ( 28,125 ) ​ ​ ( 22,852 ) ​ Amortization of debt issuance costs, debt discount and debt premium ​ ​ 3,458 ​ ​ 2,601 ​ Settlement of asset retirement obligations ​ ​ ( 946 ) ​ ​ ( 633 ) ​ Contract termination and loss contingency ​ ​ — ​ ​ 11,901 ​ Loss (gain) on sale of assets ​ ​ 2,071 ​ ​ ( 447 ) ​ Loss on early extinguishment of debt ​ ​ 45,375 ​ ​ — ​ Loss on convertible note inducement ​ ​ 169 ​ ​ 86 ​ Changes in current assets and liabilities: ​ ​ ​ ​ ​ ​ ​ Accounts receivable ​ ​ 55,229 ​ ​ ( 1,440 ) ​ Accrued revenue ​ ​ ( 332,900 ) ​ ​ 334,294 ​ Other current assets ​ ​ ( 13,664 ) ​ ​ 32,584 ​ Accounts payable including related parties ​ ​ 59,222 ​ ​ 12,236 ​ Accrued liabilities ​ ​ 36,632 ​ ​ ( 118,316 ) ​ Revenue distributions payable ​ ​ 237,453 ​ ​ ( 129,966 ) ​ Other current liabilities ​ ​ ( 7,222 ) ​ ​ 4,627 ​ Net cash provided by operating activities ​ ​ 2,576,057 ​ ​ 682,546 ​ Cash flows provided by (used in) investing activities: ​ ​ ​ ​ ​ ​ ​ Additions to unproved properties ​ ​ ( 120,139 ) ​ ​ ( 139,121 ) ​ Drilling and completion costs ​ ​ ( 589,093 ) ​ ​ ( 759,852 ) ​ Additions to other property and equipment ​ ​ ( 12,188 ) ​ ​ ( 13,073 ) ​ Proceeds from asset sales ​ ​ 1,147 ​ ​ 447 ​ Change in other assets ​ ​ 1,910 ​ ​ ( 2,538 ) ​ Net cash used in investing activities ​ ​ ( 718,363 ) ​ ​ ( 914,137 ) ​ Cash flows provided by (used in) financing activities: ​ ​ ​ ​ ​ ​ ​ Repurchases of common stock ​ ​ ( 675,412 ) ​ ​ ( 75,356 ) ​ Repayment of senior notes ​ ​ ( 1,011,313 ) ​ ​ — ​ Borrowings on bank credit facilities, net ​ ​ 9,000 ​ ​ 439,300 ​ Payment of debt issuance costs ​ ​ ( 814 ) ​ ​ — ​ Convertible note inducement ​ ​ ( 169 ) ​ ​ ( 86 ) ​ Distributions to noncontrolling interests in Martica Holdings LLC ​ ​ ( 113,515 ) ​ ​ ( 104,245 ) ​ Employee tax withholding for settlement of equity compensation awards ​ ​ ( 65,029 ) ​ ​ ( 27,443 ) ​ Other ​ ​ ( 442 ) ​ ​ ( 579 ) ​ Net cash provided by (used in) financing activities ​ ​ ( 1,857,694 ) ​ ​ 231,591 ​ Net increase in cash and cash equivalents ​ ​ — ​ ​ — ​ Cash and cash equivalents, beginning of period ​ ​ — ​ ​ — ​ Cash and cash equivalents, end of period ​ $ — ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Supplemental disclosure of cash flow information: ​ ​ ​ ​ ​ ​ ​ Cash paid during the period for interest ​ $ 148,668 ​ ​ 100,067 ​ Increase (decrease) in accounts payable and accrued liabilities for additions to property and equipment ​ $ 23,633 ​ ​ ( 22,300 ) ​ ​ See accompanying notes to unaudited condensed consolidated financial statements. ​ 8 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (1) Organization Antero Resources Corporation (individually referred to as “Antero” and together with its consolidated subsidiaries “Antero Resources,” or the “Company”) is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties in the Appalachian Basin in West Virginia and Ohio. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. The Company’s corporate headquarters is located in Denver, Colorado. ​ (2) Summary of Significant Accounting Policies (a) Basis of Presentation These unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) applicable to interim financial information and should be read in the context of the Company’s December 31, 2022 consolidated financial statements and notes thereto for a more complete understanding of the Company’s operations, financial position and accounting policies. The Company’s December 31, 2022 consolidated financial statements were included in Antero Resources’ 2022 Annual Report on Form 10-K, which was filed with the SEC. 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, 2022 and September 30, 2023, results of operations for the three and nine months ended September 30, 2022 and 2023 and cash flows for the nine months ended September 30, 2022 and 2023. 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 September 30, 2023 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 and other factors. (b) Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Antero Resources Corporation, its wholly owned subsidiaries and its variable interest entity (“VIE”), Martica Holdings LLC, (“Martica”), for which the Company is the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in the Company’s unaudited condensed consolidated financial statements. (c) Cash and Cash Equivalents The Company considers all liquid investments purchased with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these instruments. From time to time, the Company may be in the position of a “book overdraft” in which outstanding checks exceed cash and cash equivalents. The Company classifies book overdrafts in accounts payable and revenue distributions payable within its condensed consolidated balance sheets, and classifies the change in accounts payable associated with book overdrafts as an operating activity within its unaudited condensed consolidated statements of cash flows. As of December 31, 2022, the book overdrafts included within accounts payable and revenue distributions payable were $ 28 million and $ 43 million, respectively. As of September 30, 2023, the book overdrafts included within accounts payable and revenue distributions payable were $ 35 million and $ 19 million, respectively. (d) Income (Loss) Per Common Share Income (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. Income (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”) 9 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements 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 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 income (loss) attributable to common stockholders for basic and diluted income (loss) per share (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2023 2022 2023 Net income attributable to Antero Resources Corporation—common shareholders ​ $ 559,759 ​ ​ 17,808 ​ ​ 1,168,475 ​ ​ 148,155 ​ Add: Interest expense for 2026 Convertible Notes ​ ​ 830 ​ ​ 470 ​ ​ 2,764 ​ ​ 1,555 ​ Less: Tax-effect of interest expense for 2026 Convertible Notes ​ ​ ( 193 ) ​ ​ ( 101 ) ​ ​ ( 642 ) ​ ​ ( 334 ) ​ Net income attributable to Antero Resources Corporation—common shareholders and assumed conversions ​ $ 560,396 ​ ​ 18,177 ​ ​ 1,170,597 ​ ​ 149,376 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income per share—basic ​ $ 1.83 ​ ​ 0.06 ​ ​ 3.77 ​ ​ 0.50 ​ Income per share—diluted ​ $ 1.72 ​ ​ 0.06 ​ ​ 3.51 ​ ​ 0.48 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average common shares outstanding—basic ​ ​ 305,343 ​ ​ 300,141 ​ ​ 309,954 ​ ​ 298,461 ​ Weighted average common shares outstanding—diluted ​ ​ 325,997 ​ ​ 311,534 ​ ​ 333,738 ​ ​ 310,958 ​ ​ 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 September 30, ​ Nine Months Ended September 30, ​ ​ 2022 2023 2022 2023 ​ Basic weighted average number of shares outstanding ​ 305,343 ​ 300,141 ​ 309,954 ​ 298,461 ​ Add: Dilutive effect of RSUs ​ 3,041 ​ 1,213 ​ 3,444 ​ 1,419 ​ Add: Dilutive effect of PSUs ​ 1,486 ​ 1,105 ​ 2,462 ​ 1,080 ​ Add: Dilutive effect of 2026 Convertible Notes ​ 16,127 ​ 9,075 ​ 17,878 ​ 9,998 ​ Diluted weighted average number of shares outstanding ​ 325,997 ​ 311,534 ​ 333,738 ​ 310,958 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average number of outstanding securities excluded from calculation of diluted income (loss) per common share (1) : ​ ​ ​ ​ ​ ​ ​ ​ ​ RSUs ​ — ​ 1,128 ​ — ​ 1,267 ​ PSUs ​ — ​ 100 ​ — ​ 199 ​ Stock options ​ 349 ​ 323 ​ 350 ​ 324 ​ (1) The potential dilutive effects of these awards were excluded from the computation of income (loss) per common share—diluted because the inclusion of these awards would have been anti-dilutive. 10 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (e) Recently Issued Accounting Standard Convertible Debt Instruments In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity , which eliminates the cash conversion model in Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options , that require separate accounting for conversion features, and instead, allows the debt instrument and conversion features to be accounted for as a single debt instrument. 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. 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 % prior to the adoption of this new standard. ​ ​ (3) Transactions (a) Conveyance of Overriding Royalty Interest On June 15, 2020, the Company announced the consummation of a transaction with an affiliate of Sixth Street Partners, LLC (“Sixth Street”) relating to certain overriding royalty interests across the Company’s existing asset base (the “ORRIs”). The ORRIs include an overriding royalty interest of 1.25 % in all of the Company’s operated proved developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”) as of April 1, 2020, and an overriding royalty interest of 3.75 % in all of the Company’s undeveloped properties in West Virginia and Ohio (the “Development Override”) as of April 1, 2020. Wells turned to sales after April 1, 2020 and prior to the later of (a) the date on which the Company turns to sales 2.2 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override and (b) the earlier of (i) April 1, 2023 and (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells burdened by the Development Override, are subject to the Development Override. As of April 1, 2023, the Company had turned to sales over 2.2 million lateral feet and less than 3.82 million lateral feet. As a result, wells turned to sales on or after April 1, 2023 will not be subject to the ORRIs. The ORRIs also include an additional overriding royalty interest of 2.00 % of the Company’s working interest in the properties underlying the Initial PDP Override (the “Incremental Override”). The Incremental Override (or a portion thereof, as applicable) may be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs are achieved through March 31, 2023. Any portion of the Incremental Override that may not be re-conveyed to the Company based on the Company failing to achieve such production volumes through March 31, 2023 will remain with Martica. As of March 31, 2023, the portion of the Incremental Override that may be re-conveyed to the Company as a result of achieving certain production targets was 76 % and the portion that will remain with Martica was 24 % . Prior to Sixth Street achieving an internal rate of return of 13 % and 1.5 x cash-on-cash return (the “Hurdle”), Sixth Street will receive all distributions in respect of the Initial PDP Override and the Development Override, and 24 % of all distributions in respect of the Incremental Override, and the Company will receive 76 % of all distributions in respect of the Incremental Override. Following Sixth Street achieving the Hurdle, the Company will receive 85 % of the distributions in respect of the ORRIs to which Sixth Street was entitled immediately prior to the Hurdle being achieved. (b) Drilling Partnership On February 17, 2021, Antero Resources announced the formation of a drilling partnership with QL Capital Partners (“QL”), an affiliate of Quantum Energy Partners, for the Company’s 2021 through 2024 drilling program. Under the terms of the arrangement, each year in which QL participates represents an annual tranche, and QL will be conveyed a working interest in any wells spud by Antero Resources during such tranche year. For 2021, 2022 and 2023, Antero Resources and QL agreed to the estimated internal rate of return (“IRR”) of the Company’s capital budget for each annual tranche, and QL agreed to participate in the 2021, 2022, and 2023 tranches. For 2024, Antero Resources will propose a capital budget and estimated IRR 11 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements for all wells to be spud during such year and, subject to the mutual agreement of the parties that the estimated IRR for the year exceeds a specified return, QL will be obligated to participate in such tranche. Antero Resources develops and manages the drilling program associated with each tranche, including the selection of wells. 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 % and 15 % of development capital for wells spud in 2021 and 2022, respectively, and will fund development capital of (i) 15 % for wells spud in 2023 and (ii) if they participate in 2024, between 15 % and 20 % for wells spud in 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. During the year ended December 31, 2022, the Company received a carry of $ 29 million attributable to the 2021 tranche. All of the wells spud during each calendar year period will be a separate annual tranche. Capital costs in excess of, and cost savings below, a specified percentage of budgeted amounts for each annual tranche will be for Antero Resources’ account. 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. The Company has accounted for the drilling partnership as a conveyance under ASC 932, Extractive Activities—Oil and Gas , 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 and nine months ended September 30, 2022 and 2023. ​ (4) Revenue (a) Disaggregation of Revenue The table set forth below presents revenue disaggregated by type and reportable segment to which it relates (in thousands). See Note 16—Reportable Segments to the unaudited condensed financial statements for more information on reportable segments. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ ​ 2022 2023 2022 2023 Reportable Segment Revenues from contracts with customers: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Natural gas sales ​ $ 1,736,039 ​ ​ 516,214 ​ ​ 4,290,825 ​ ​ 1,621,659 ​ Exploration and production Natural gas liquids sales (ethane) ​ ​ 117,253 ​ ​ 78,551 ​ ​ 274,546 ​ ​ 200,764 ​ Exploration and production Natural gas liquids sales (C3+ NGLs) ​ ​ 503,563 ​ ​ 404,019 ​ ​ 1,708,963 ​ ​ 1,174,974 ​ Exploration and production Oil sales ​ ​ 67,025 ​ ​ 62,629 ​ ​ 219,504 ​ ​ 172,402 ​ Exploration and production Marketing ​ ​ 159,985 ​ ​ 53,068 ​ ​ 335,173 ​ ​ 155,390 ​ Marketing Other revenue ​ ​ — ​ ​ — ​ ​ — ​ ​ 540 ​ Exploration and production Total revenue from contracts with customers ​ ​ 2,583,865 ​ ​ 1,114,481 ​ ​ 6,829,011 ​ ​ 3,325,729 ​ ​ Income (loss) from derivatives, deferred revenue and other sources, net ​ ​ ( 519,241 ) ​ ​ 11,695 ​ ​ ( 1,775,862 ) ​ ​ 162,100 ​ ​ Total revenue ​ $ 2,064,624 ​ ​ 1,126,176 ​ ​ 5,053,149 ​ ​ 3,487,829 ​ ​ ​ (b) Transaction Price Allocated to Remaining Performance Obligations For the Company’s product sales that have a contract term greater than one year, the Company utilized the practical expedient in ASC 606, Revenue from Contracts with Customers (“ASC 606”), which does not require the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under the Company’s product sales contracts, each unit of product delivered to the customer represents a separate performance obligation; therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. For the Company’s product sales that have a contract term of one year or less, the Company utilized the practical expedient in ASC 606, which does not require the 12 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a contract that has an original expected duration of one year or less. (c) Contract Balances Under the Company’s sales contracts, the Company invoices customers after its performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s contracts do not give rise to contract assets or liabilities. As of December 31, 2022 and September 30, 2023, the Company’s receivables from contracts with customers were $ 708 million and $ 373 million, respectively. (5) Equity Method Investment As of September 30, 2023, Antero owned 29.0 % of Antero Midstream’s common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting. The following table sets forth a reconciliation of Antero’s investment in unconsolidated affiliate (in thousands): ​ ​ ​ ​ ​ Balance as of December 31, 2022 (1) ​ $ 220,429 ​ Equity in earnings of unconsolidated affiliate ​ ​ 58,986 ​ Dividends from unconsolidated affiliate ​ ​ ( 93,854 ) ​ Elimination of intercompany profit ​ ​ 34,549 ​ Balance as of September 30, 2023 (1) ​ $ 220,110 ​ (1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2022 and September 30, 2023 was $ 1.5 billion and $ 1.7 billion, respectively, based on the quoted market share price of Antero Midstream . ​ ​ (6) Accrued Liabilities Accrued liabilities consisted of the following items (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, ​ September 30, ​ ​ 2022 2023 ​ Capital expenditures ​ $ 57,361 ​ 43,418 ​ Gathering, compression, processing and transportation expenses ​ ​ 162,783 ​ ​ 153,634 ​ Marketing expenses ​ ​ 61,118 ​ ​ 39,336 ​ Interest expense, net ​ 31,892 ​ 15,090 ​ Production and ad valorem taxes ​ ​ 32,536 ` ​ 29,349 ​ General and administrative expense ​ ​ 32,477 ​ ​ 31,803 ​ Derivative settlements payable ​ ​ 53,732 ​ ​ 712 ​ Other ​ 29,889 ​ 21,751 ​ Total accrued liabilities ​ $ 461,788 ​ 335,093 ​ ​ ​ ​ 13 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (7) Long-Term Debt Long-term debt consisted of the following items (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, ​ September 30, ​ ​ 2022 2023 ​ Credit Facility (a) ​ $ 34,800 ​ ​ 474,100 ​ 8.375 % senior notes due 2026 (c) ​ ​ 96,870 ​ ​ 96,870 ​ 7.625 % senior notes due 2029 (d) ​ ​ 407,115 ​ ​ 407,115 ​ 5.375 % senior notes due 2030 (e) ​ ​ 600,000 ​ ​ 600,000 ​ 4.25 % convertible senior notes due 2026 (f) ​ ​ 56,932 ​ ​ 39,418 ​ Total principal ​ ​ 1,195,717 ​ ​ 1,617,503 ​ Unamortized debt issuance costs ​ ​ ( 12,241 ) ​ ​ ( 10,608 ) ​ Long-term debt ​ $ 1,183,476 ​ ​ 1,606,895 ​ ​ (a) Senior Secured Revolving Credit Facility Antero Resources has a senior secured revolving credit facility (the “Credit Facility”) with a consortium of banks. Borrowings under the Credit Facility are subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and are subject to regular semi-annual redeterminations. As of December 31, 2022 and September 30, 2023, the Credit Facility had a borrowing base of $ 3.5 billion and lender commitments of $ 1.5 billion. During the semi-annual redetermination in October 2023, the borrowing base was re-affirmed at $ 3.5 billion and lender commitments increased to $ 1.6 billion. 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 September 30, 2023, the Credit Facility had an available borrowing capacity of $ 524 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, 2022 and September 30, 2023. 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). The Credit Facility provides for interest only payments until maturity at which time all outstanding borrowings are due. Interest is payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of borrowing, plus an applicable margin rate under the Credit Facility. Interest at the time of borrowing is determined with reference to the Antero Resources’ then-current leverage ratio subject to certain exceptions. Commitment fees on the unused portion of the Credit Facility are due quarterly at rates ranging from 0.375 % to 0.500 % with respect to the Credit Facility, determined with reference to borrowing base utilization, subject to certain exceptions based on the leverage ratio then in effect. The Credit Facility includes fall away covenants, lower interest rates and reduced collateral requirements that Antero Resources may elect if Antero Resources is assigned an Investment Grade Rating (as defined in the Credit Facility). As of December 31, 2022, Antero Resources had an outstanding balance under the Credit Facility of $ 35 million, with a weighted average interest rate of 6.42 %, and outstanding letters of credit of $ 504 million. As of September 30, 2023, Antero Resources had an outstanding balance under the Credit Facility of $ 474 million, with a weighted average interest rate of 7.68 %, and outstanding letters of credit of $ 502 million. (b) 5.00 % Senior Notes Due 2025 On December 21, 2016, Antero Resources issued $ 600 million of 5.00 % senior notes due March 1, 2025 (the “2025 Notes”) at par . The Company repurchased or otherwise redeemed all of the 2025 Notes between 2020 and the first quarter of 2022, and the 2025 Notes were fully retired as of March 1, 2022. Interest on the 2025 Notes was payable on March 1 and September 1 of each year. See “—Debt Repurchase Program” below for more information. 14 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (c) 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 or otherwise repurchased $ 403 million principal amount of the 2026 Notes during 2021 and 2022, and as of September 30, 2023, $ 97 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. The 2026 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2026 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2026 Notes is payable on January 15 and July 15 of each year. Antero Resources may redeem all or part of the 2026 Notes at any time on or after January 15, 2024 at redemption prices ranging from 104.188 % on or after January 15, 2024 to 100.00 % on or after January 15, 2026. At any time prior to January 15, 2024, Antero Resources may also redeem the 2026 Notes, in whole or in part, at a price equal to 100 % of the principal amount of the 2026 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2026 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101 % of the principal amount of the 2026 Notes, plus accrued and unpaid interest. (d) 7.625 % Senior Notes Due 2029 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 or otherwise repurchased $ 293 million principal amount of the 2029 Notes during 2021 and 2022, and as of September 30, 2023, $ 407 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. The 2029 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2029 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2029 Notes is payable on February 1 and August 1 of each year. Antero Resources may redeem all or part of the 2029 Notes at any time on or after February 1, 2024 at redemption prices ranging from 103.813 % on or after February 1, 2024 to 100.00 % on or after February 1, 2027. In addition, on or before February 1, 2024, Antero Resources may redeem up to 35 % of the aggregate principal amount of the 2029 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 107.625 % of the principal amount of the 2029 Notes, plus accrued and unpaid interest, which option the Company partially exercised on October 18, 2021 with its notice to redeem $ 116 million aggregate principal amount of outstanding 2029 Notes. At any time prior to February 1, 2024, Antero Resources may also redeem the 2029 Notes, in whole or in part, at a price equal to 100 % of the principal amount of the 2029 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2029 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101 % of the principal amount of the 2029 Notes, plus accrued and unpaid interest. ​ (e) 5.375 % Senior Notes Due 2030 On June 1, 2021, Antero Resources issued $ 600 million of 5.375 % senior notes due March 1, 2030 (the “2030 Notes”) at par . The 2030 Notes are unsecured and effectively subordinated to the Credit Facility to the extent of the value of the collateral securing the Credit Facility. The 2030 Notes rank pari passu to Antero Resources’ other outstanding senior notes. The 2030 Notes are guaranteed on a full and unconditional and joint and several senior unsecured basis by Antero Resources’ existing subsidiaries that guarantee the Credit Facility and certain of its future restricted subsidiaries. Interest on the 2030 Notes is payable on March 1 and September 1 of each year. Antero Resources may redeem all or part of the 2030 Notes at any time on or after March 1, 2025 at redemption prices ranging from 102.688 % on or after March 1, 2025 to 100.00 % on or after March 1, 2028. In addition, on or before March 1, 2025, Antero Resources may redeem up to 35 % of the aggregate principal amount of the 2030 Notes, but in an amount not greater than the net cash proceeds of certain equity offerings, if certain conditions are met, at a redemption price of 105.375 % of the principal amount of the 2030 Notes, plus accrued and unpaid interest. At any time prior to March 1, 2025, Antero Resources may also redeem the 2030 Notes, in whole or in part, at a price equal to 100 % of the principal amount of the 2030 Notes plus a “make-whole” premium and accrued and unpaid interest. If Antero Resources undergoes a change of control followed by a rating decline, the holders of the 2030 Notes will have the right to require Antero Resources to repurchase all or a portion of the notes at a price equal to 101 % of the principal amount of the 2030 Notes, plus accrued and unpaid interest. ​ 15 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (f) 4.25 % Convertible Senior Notes Due 2026 On August 21, 2020, Antero Resources issued $ 250 million in aggregate principal amount of 4.25 % convertible senior notes due September 1, 2026 (the “2026 Convertible Notes”). On September 2, 2020, Antero Resources issued an additional $ 37.5 million of the 2026 Convertible Notes. Proceeds from the issuance of the 2026 Convertible Notes totaled $ 278.5 million, net of initial purchasers’ fees and issuance cost of $ 9 million. The Company extinguished $ 206 million principal amount of the 2026 Convertible Notes in 2021. In addition, between 2022 and the third quarter of 2023, $ 43 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms or induced into conversion by the Company. See “—Conversions and Inducements,” for more information. As of September 30, 2023, $ 39 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. The 2026 Convertible Notes bear interest at a fixed rate of 4.25 % per annum, payable semi-annually in arrears on March 1 and September 1 of each year, commencing on March 1, 2021. Each capitalized term used in this subsection but not otherwise defined in this Quarterly Report on Form 10-Q has the meaning as set forth in the indenture governing the 2026 Convertible Notes. 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 September 30, 2023, the if-converted value of the 2026 Convertible Notes was $ 230 million, which exceeded the principal amount of the 2026 Convertible Notes by $ 191 million. The 2026 Convertible Notes will mature on September 1, 2026, unless earlier repurchased, redeemed or converted. 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”); ● during the five consecutive Business Days immediately after any 10 consecutive Trading Day period (such 10 consecutive Trading Day period, the “Measurement Period”) if the Trading Price per $1,000 principal amount of 2026 Convertible Notes, as determined following a request by a noteholder in accordance with the procedures set forth below, for each Trading Day of the Measurement Period was less than 98 % of the product of the Last Reported Sales Price per share of common stock on such Trading Day and the conversion rate on such Trading Day; ● if Antero Resources calls any or all of the 2026 Convertible Notes for redemption, at any time prior to the close of business on the scheduled Trading Day immediately preceding the redemption date; or ● 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. 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 September 30, 2023. The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the indenture governing the 2026 Convertible Notes. In addition, following certain corporate events, as described in the indenture governing the 2026 Convertible Notes, that occur prior to the maturity date, Antero Resources will increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such a corporate event. If certain corporate events that constitute a Fundamental Change occur, then noteholders may require Antero Resources to repurchase their 2026 Convertible Notes at a cash repurchase price equal to the principal amount of the 2026 16 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the Fundamental Change Repurchase Date. The definition of Fundamental Change includes certain business combination transactions involving Antero Resources and certain de-listing events with respect to Antero Resources’ common stock. Upon issuance, the Company separately accounted for the liability and equity components of the 2026 Convertible Notes. The liability component was recorded at the estimated fair value of a similar debt instrument without the conversion feature. The difference between the principal amount of the 2026 Convertible Notes and the estimated fair value of the liability component was recorded as a debt discount and was amortized to interest expense, together with debt issuance costs, over the term of the 2026 Convertible Notes using the effective interest method, with an effective interest rate of 15.1 % per annum. As of the issuance date, the fair value of the 2026 Convertible Notes was estimated at $ 172 million, resulting in a debt discount at inception of $ 116 million. The equity component, representing the value of the conversion option, was computed by deducting the fair value of the liability component from the initial proceeds of the 2026 Convertible Notes issuance. This equity component was recorded, net of deferred taxes and issuance costs, in additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity. Transaction costs related to the 2026 Convertible Notes issuance were allocated to the liability and equity components based on their relative fair values. Issuance costs attributable to the liability component were recorded within debt issuance costs on the condensed consolidated balance sheet and were amortized over the term of the 2026 Convertible Notes using the effective interest method. Issuance costs attributable to the equity component were recorded as a charge to additional paid-in capital within the condensed consolidated balance sheet and statement of stockholders’ equity. Effective January 1, 2022, the Company adopted ASU 2020-06 whereby the Company reclassified the equity component of the 2026 Convertible Notes outstanding on such date, net of deferred income taxes and equity issuance costs, from additional paid-in capital to long-term debt. See Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. Conversions and Inducements During the nine months ended September 30, 2023, $ 9 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms, and an additional $ 9 million aggregate principal amount of the 2026 Convertible Notes were induced into conversion by the Company. The Company elected to settle these conversions by issuing 4 million shares of common stock to the noteholders together with a cash inducement premium of $ 0.1 million. There were no conversions of the 2026 Convertible Notes during the nine months ended September 30, 2022. The 2026 Convertible Notes consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, ​ September 30, ​ ​ ​ 2022 ​ 2023 ​ Principal ​ $ 56,932 ​ ​ 39,418 ​ Less: unamortized debt issuance costs ​ ​ ( 1,159 ) ​ ​ ( 651 ) ​ Net carrying value ​ $ 55,773 ​ ​ 38,767 ​ ​ Interest expense recognized on the 2026 Convertible Notes related to the stated interest rate and debt issuance costs totaled $ 1 million and $ 0.5 million for the three months ended September 30, 2022 and 2023, respectively, and $ 3 million and $ 2 million for the nine months ended September 30, 2022 and 2023, respectively. (g) Debt Repurchase Program 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. During the third quarter of 2022, the Company repurchased, through its previously disclosed tender offer and open market transactions, (i) $ 208 million aggregate principal amount of its 2026 Notes at a weighted average of 109 % of the principal amount thereof, plus accrued and unpaid interest and (ii) $ 118 million aggregate principal amount of its 2029 Notes at a weighted average of 107 % of the principal amount thereof, plus accrued and unpaid interest. For the three and nine months ended September 30, 2022, the Company recognized a loss on early debt 17 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements extinguishment from these repurchases of $ 30 million and $ 45 million, respectively. There were no debt repurchases or redemptions during the three and nine months ended September 30, 2023. (8) Asset Retirement Obligations The following table presents a reconciliation of the Company’s asset retirement obligations (in thousands): ​ ​ ​ ​ ​ Asset retirement obligations—December 31, 2022 $ 59,485 ​ Obligations incurred ​ ​ 924 ​ Accretion expense ​ ​ 2,971 ​ Settlement of obligations ​ ​ ( 633 ) ​ Revisions to prior estimates ​ ​ 301 ​ Asset retirement obligations—September 30, 2023 ​ $ 63,048 ​ ​ Asset retirement obligations are included in Other liabilities on the Company’s condensed consolidated balance sheets. ​ (9) Equity-Based Compensation and Cash Awards On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which replaced the Antero Resources Corporation Long-Term Incentive Plan (the “2013 Plan”), and the 2020 Plan became effective as of such date. The 2020 Plan provides for grants of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, RSU awards, vested stock awards, dividend equivalent awards and other stock-based and cash awards. The terms and conditions of the awards granted are established by the Compensation Committee of Antero Resources’ Board of Directors. Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the 2020 Plan. No further awards will be granted under the 2013 Plan on or after June 17, 2020. The 2020 Plan provides for the reservation of 10,050,000 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery from the 2013 Plan in accordance with the share recycling provisions described below. The share recycling provisions allow for all or any portion of an award (including an award granted under the 2013 Plan that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash or otherwise terminated without actual delivery of the shares to be considered not delivered and thus, available for new awards under the 2020 Plan. 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 6,896,996 shares were available for future grant under the 2020 Plan as of September 30, 2023. 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). Antero Resources deconsolidated Antero Midstream Partners on March 12, 2019 , and on such date, each outstanding phantom unit award under the AMP Plan was assumed by Antero Midstream and converted into 1.8926 RSUs (all such RSUs, the “Converted AM RSU Awards”) under the Antero Midstream Corporation Long Term Incentive Plan (the “AM Plan”). Each RSU award under the AM Plan represented a right to receive one share of Antero Midstream common stock. As of September 30, 2023, all Converted AM RSU Awards were fully vested. 18 Table of Contents 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 September 30, ​ Nine Months Ended September 30, ​ ​ 2022 ​ 2023 2022 ​ 2023 ​ RSU awards ​ $ 4,974 ​ ​ 8,286 ​ ​ 12,468 ​ ​ 24,268 ​ PSU awards ​ ​ 5,070 ​ ​ 9,796 ​ ​ 9,501 ​ ​ 19,643 ​ Converted AM RSU Awards (1) ​ ​ 8 ​ ​ — ​ ​ 203 ​ ​ 1 ​ Equity awards issued to directors ​ ​ 350 ​ ​ 376 ​ ​ 1,050 ​ ​ 1,076 ​ Total expense ​ $ 10,402 ​ ​ 18,458 ​ ​ 23,222 ​ ​ 44,988 ​ (1) Antero Resources recognized compensation expense for equity awards granted under both the 2013 Plan and the AMP Plan because the awards under the AMP Plan are accounted for as if they are distributed by Antero Midstream Partners to Antero Resources. 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. As of September 30, 2023, all Converted AM RSU Awards were fully vested, and there is no remaining unamortized expense attributable to these awards. (a) Restricted Stock Unit Awards A summary of RSU activity is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Average ​ ​ ​ Number of ​ Grant Date ​ ​ Shares Fair Value Total awarded and unvested—December 31, 2022 ​ 4,676,219 ​ $ 15.29 ​ Granted ​ 1,469,162 ​ ​ 25.88 ​ Vested ​ ( 2,214,806 ) ​ ​ 9.07 ​ Forfeited ​ ( 153,402 ) ​ ​ 24.02 ​ Total awarded and unvested—September 30, 2023 ​ 3,777,173 ​ $ 22.71 ​ ​ As of September 30, 2023, there was $ 65 million of unamortized equity-based compensation expense related to unvested RSUs. That expense is expected to be recognized over a weighted average period of 2.0 years. (b) Performance Share Unit Awards Performance Share Unit Awards Based on Total Shareholder Return In March 2023, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute total shareholder return (“TSR”) determined as of the last day of each of three one-year performance periods ending on March 7, 2024, March 7, 2025 and March 7, 2026, and one cumulative three-year performance period ending on March 7, 2026, in each case, subject to certain continued employment criteria (“2023 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 2023 Absolute TSR PSUs ranges from zero to 200 % of the target number of 2023 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. The following table presents the assumptions used in the Monte Carlo valuation model and the grant date fair value information for the 2023 Absolute TSR PSUs: ​ ​ ​ ​ ​ ​ Dividend yield ​ ​ — % Volatility ​ ​ 82 % Risk-free interest rate ​ ​ 4.61 % Weighted average fair value of awards granted—Absolute TSR ​ $ 33.96 ​ 19 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements ​ Performance Share Unit Awards Based on Leverage Ratio In March 2023, 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, 2023, December 31, 2024 and December 31, 2025, in each case, subject to certain continued employment criteria (“2023 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 2023 Leverage Ratio PSUs ranges from zero to 200 % of the target number of 2023 Leverage Ratio PSUs originally granted. Expense related to the 2023 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 September 30, 2023, the likelihood of achieving the performance conditions related to the 2023 Leverage Ratio PSUs was probable. Summary Information for Performance Share Unit Awards A summary of PSU activity is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Average ​ ​ ​ Number of ​ Grant Date ​ ​ Units Fair Value Total awarded and unvested—December 31, 2022 ​ 1,329,725 ​ $ 23.18 ​ Granted ​ 417,466 ​ ​ 28.51 ​ Vested (1) ​ ( 335,000 ) ​ ​ 2.97 ​ Total awarded and unvested—September 30, 2023 ​ 1,412,191 ​ $ 29.54 ​ (1) During the nine months ended September 30, 2023, the PSUs granted in 2020 that were based on absolute TSR and relative TSR met the performance criteria to achieve vesting at 112 % and 126 % of target, respectively, and converted into approximately 0.4 million shares of the Company’s common stock. ​ As of September 30, 2023, there was $ 26 million of unamortized equity-based compensation expense related to unvested PSUs. That expense is expected to be recognized over a weighted average period of 1.5 years. (c) Converted AM RSU Awards A summary of the Converted AM RSU Awards is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ Average ​ ​ ​ Number of ​ Grant Date ​ ​ Units Fair Value Total awarded and unvested—December 31, 2022 ​ 2,827 ​ $ 12.38 ​ Vested ​ ( 2,827 ) ​ ​ 12.38 ​ Total awarded and unvested—September 30, 2023 ​ — ​ $ — ​ ​ As of September 30, 2023, all Converted AM RSU Awards were fully vested resulting in no unamortized equity-based compensation expense. 20 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (d) Stock Options A summary of the stock option activity is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ ​ ​ ​ ​ ​ Average ​ Remaining ​ Intrinsic ​ ​ ​ Stock ​ Exercise ​ Contractual ​ Value ​ ​ Options Price Life (in thousands) (1) ​ Outstanding—December 31, 2022 ​ 323,960 ​ $ 50.86 ​ 2.0 ​ $ — ​ Expired ​ ( 833 ) ​ ​ 50.00 ​ — ​ ​ — ​ Outstanding—September 30, 2023 ​ 323,127 ​ $ 50.86 ​ 1.2 ​ ​ — ​ Vested—September 30, 2023 ​ 323,127 ​ $ 50.86 ​ 1.2 ​ $ — ​ Exercisable—September 30, 2023 ​ 323,127 ​ $ 50.86 ​ 1.2 ​ $ — ​ (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. (e) Cash Awards In January 2020, the Company granted cash awards of $ 3 million to certain executives under the 2013 Plan, and compensation expense for these awards was 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, 2022 and September 30, 2023, the Company has recorded $ 1 million and $ 0.4 million, respectively, in accrued 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, 2022 and September 30, 2023 approximated market values because of their short-term nature. The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2022 and September 30, 2023 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, 2022 ​ September 30, 2023 ​ ​ Fair Carrying Fair Carrying ​ ​ ​ Value (1) ​ Value (2) ​ Value (1) ​ Value (2) ​ 2026 Notes ​ $ 100,987 ​ ​ 96,123 ​ ​ 99,534 ​ ​ 96,293 ​ 2029 Notes ​ ​ 410,860 ​ ​ 402,872 ​ ​ 410,657 ​ ​ 403,295 ​ 2030 Notes ​ ​ 556,260 ​ ​ 593,908 ​ ​ 552,720 ​ ​ 594,440 ​ 2026 Convertible Notes ​ ​ 406,039 ​ ​ 55,773 ​ ​ 231,163 ​ ​ 38,767 ​ Total ​ $ 1,474,146 ​ ​ 1,148,676 ​ ​ 1,294,074 ​ ​ 1,132,795 ​ (1) Fair values are based on Level 2 market data inputs. (2) Carrying values are presented net of unamortized debt issuance costs. ​ 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. ​ 21 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (11) Derivative Instruments The Company is exposed to certain risks relating to its ongoing business operations, and it may use derivative instruments to manage its commodity price risk. In addition, the Company periodically enters into contracts that contain embedded features that are required to be bifurcated and accounted for separately as derivatives. (a) Commodity Derivative Positions The Company periodically enters into natural gas, NGLs and oil derivative contracts with counterparties to hedge the price risk associated with its production. These derivatives are not entered into for trading purposes. To the extent that changes occur in the market prices of natural gas, NGLs and oil, the Company is exposed to market risk on these open contracts. 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 and nine months ended September 30, 2022 and 2023. The Company enters into these swap contracts when management believes that favorable future sales prices for the Company’s production can be secured. Under these swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company pays the difference to the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company receives the difference from the counterparty. In addition, the Company has entered into basis swap contracts in order to hedge the difference between the New York Mercantile Exchange (“NYMEX”) index price and a local index price. Under these basis swap agreements, when actual commodity prices upon settlement exceed the fixed price provided by the swap contracts, the Company receives the difference from the counterparty. When actual commodity prices upon settlement are less than the contractually provided fixed price, the Company pays the difference to the counterparty. The Company’s derivative contracts have not been designated as hedges for accounting purposes; therefore, all gains and losses are recognized in the Company’s statements of operations. As of September 30, 2023, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Commodity / Settlement Period Index Contracted Volume Price Natural Gas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ Henry Hub ​ 43,000 MMBtu/day ​ $ 2.37 /MMBtu ​ ​ The Company has a call option and an embedded put option tied to NYMEX pricing for the production volumes associated with the Company’s retained interest in the volumetric production payment transaction (“VPP”) properties. The put option was embedded within another contract, and since the embedded put option was not clearly and closely related to its host contract, the Company bifurcated this derivative instrument and reflects it at fair value in the unaudited condensed consolidated financial statements. As of September 30, 2023, the Company’s call option and embedded put option arrangements were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded ​ ​ ​ ​ ​ ​ ​ ​ Call Option ​ Put Option ​ Commodity / Settlement Period Index Contracted Volume Strike Price Strike Price Natural Gas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ Henry Hub ​ 55,000 MMBtu/day ​ $ 2.466 /MMBtu ​ $ 2.466 /MMBtu ​ January-December 2024 ​ Henry Hub ​ 53,000 MMBtu/day ​ ​ 2.477 /MMBtu ​ ​ 2.527 /MMBtu ​ January-December 2025 ​ Henry Hub ​ 44,000 MMBtu/day ​ ​ 2.564 /MMBtu ​ ​ 2.614 /MMBtu ​ January-December 2026 ​ Henry Hub ​ 32,000 MMBtu/day ​ ​ 2.629 /MMBtu ​ ​ 2.679 /MMBtu ​ ​ ​ 22 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements As of September 30, 2023, 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 ​ Commodity / Settlement Period ​ Index to Basis Differential Contracted Volume Hedged Differential ​ Natural Gas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ NYMEX to TCO ​ 50,000 MMBtu/day ​ $ 0.525 /MMBtu ​ January-December 2024 ​ NYMEX to TCO ​ 50,000 MMBtu/day ​ ​ 0.530 /MMBtu ​ ​ As of September 30, 2023, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ ​ ​ ​ ​ ​ ​ Average ​ Commodity / Settlement Period Index Contracted Volume Price ​ Natural Gas ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ Henry Hub ​ 31,366 MMBtu/day ​ $ 2.35 /MMBtu ​ January-December 2024 ​ Henry Hub ​ 23,885 MMBtu/day ​ ​ 2.33 /MMBtu ​ January-March 2025 ​ Henry Hub ​ 18,021 MMBtu/day ​ ​ 2.53 /MMBtu ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Natural Gasoline ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ Mont Belvieu Natural Gasoline-OPIS Non-TET ​ 217 Bbl/day ​ ​ 40.74 /Bbl ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Oil ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ October-December 2023 ​ West Texas Intermediate ​ 71 Bbl/day ​ ​ 44.66 /Bbl ​ January-December 2024 ​ West Texas Intermediate ​ 43 Bbl/day ​ ​ 44.02 /Bbl ​ January-March 2025 ​ West Texas Intermediate ​ 39 Bbl/day ​ ​ 45.06 /Bbl ​ ​ (b) Summary The table below presents a summary of the fair values of the Company’s derivative instruments and where such values are recorded in the condensed consolidated balance sheets (in thousands). ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ Balance Sheet ​ December 31, ​ September 30, ​ ​ Location 2022 ​ 2023 ​ Asset derivatives not designated as hedges for accounting purposes: ​ ​ ​ ​ ​ ​ ​ ​ ​ Embedded derivatives—current ​ Derivative instruments ​ $ 1,900 ​ ​ 2,563 ​ Embedded derivatives—noncurrent ​ Derivative instruments ​ ​ 9,844 ​ ​ 6,627 ​ Total asset derivatives (1) ​ ​ ​ ​ 11,744 ​ ​ 9,190 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liability derivatives not designated as hedges for accounting purposes: ​ ​ ​ ​ ​ ​ ​ ​ ​ Commodity derivatives—current (2) ​ Derivative instruments ​ ​ 97,765 ​ ​ 31,134 ​ Commodity derivatives—noncurrent (2) ​ Derivative instruments ​ ​ 345,280 ​ ​ 52,584 ​ Total liability derivatives (1) ​ ​ ​ ​ 443,045 ​ ​ 83,718 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net derivatives liability (1) ​ ​ ​ $ ( 431,301 ) ​ ​ ( 74,528 ) ​ (1) The fair value of derivative instruments was determined using Level 2 inputs. (2) As of December 31, 2022, $ 47 million of commodity derivative liabilities, including $ 28 million of current commodity derivatives and $ 19 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. As of September 30, 2023, $ 15 million of commodity derivative liabilities, including $ 9 million of current commodity derivatives and $ 6 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica. 23 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, 2022 ​ September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Net Amounts of ​ ​ ​ ​ ​ Net Amounts of ​ ​ ​ Gross ​ Gross ​ Assets ​ Gross ​ Gross ​ Assets ​ ​ ​ Amounts ​ Amounts Offset ​ (Liabilities) on ​ Amounts ​ Amounts Offset ​ (Liabilities) on ​ ​ Recognized Recognized Balance Sheet Recognized Recognized Balance Sheet ​ Commodity derivative assets ​ $ 276 ​ ​ ( 276 ) ​ ​ — ​ ​ 495 ​ ​ ( 495 ) ​ ​ — ​ Embedded derivative assets ​ ​ 11,744 ​ ​ — ​ ​ 11,744 ​ ​ 9,190 ​ ​ — ​ ​ 9,190 ​ Commodity derivative liabilities ​ ​ ( 443,321 ) ​ ​ 276 ​ ​ ( 443,045 ) ​ ​ ( 84,213 ) ​ ​ 495 ​ ​ ( 83,718 ) ​ ​ 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): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operations ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ ​ Location ​ 2022 ​ 2023 ​ 2022 ​ 2023 ​ Commodity derivative fair value gains (losses) (1) ​ Revenue ​ $ ( 500,557 ) ​ ​ 5,290 ​ ​ ( 1,732,720 ) ​ ​ 138,602 ​ Embedded derivative fair value losses (1) ​ Revenue ​ $ ( 29,966 ) ​ ​ ( 1,842 ) ​ ​ ( 74,845 ) ​ ​ ( 678 ) ​ (1) The fair value of derivative instruments was determined using Level 2 inputs . ​ Commodity derivative fair value gains (losses) for the nine months ended September 30, 2023, includes a loss of $ 202 million related to the early settlement of the Company’s natural gas swaption agreement during the first quarter of 2023. The payment for this early settlement is classified as an operating cash flow on the Company’s condensed consolidated statement of cash flows. ​ ​ (12) Leases The Company leases certain office space, processing plants, drilling rigs and completion services, gas gathering lines, compressor stations, and other office and field equipment. Leases with an initial term of 12 months or less are considered short-term and are not recorded on the balance sheet. Instead, the short-term leases are recognized in expense on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease from one to 20 years or more. The exercise of the lease renewal options is at the Company’s sole discretion. The depreciable lives of the leased assets are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of the Company’s lease agreements include minimum payments based on a percentage of produced volumes over contractual levels and others include rental payments adjusted periodically for inflation. The Company considers all contracts that have assets specified in the contract, either explicitly or implicitly, that the Company has substantially all of the capacity of the asset, and has the right to obtain substantially all of the economic benefits of that asset, without the lessor’s ability to have a substantive right to substitute that asset, as leased assets. For any contract deemed to include a leased asset, that asset is capitalized on the balance sheet as a right-of-use asset and a corresponding lease liability is recorded at the present value of the known future minimum payments of the contract using a discount rate on the date of commencement. The leased asset classification is determined at the date of recording as either operating or financing, depending upon certain criteria of the contract. The discount rate used for present value calculations is the discount rate implicit in the contract. If an implicit rate is not determinable, a collateralized incremental borrowing rate is used at the date of commencement. As new leases commence or previous leases are modified the discount rate used in the present value calculation is the current period applicable discount rate. 24 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements The Company has made an accounting policy election to adopt the practical expedient for combining lease and non-lease components on an asset class basis. This expedient allows the Company to combine non-lease components such as real estate taxes, insurance, maintenance and other operating expenses associated with the leased premises with the lease component of a lease agreement on an asset class basis when the non-lease components of the agreement cannot be easily bifurcated from the lease payment. Currently, the Company is only applying this expedient to certain office space agreements. (a) Supplemental Balance Sheet Information Related to Leases The Company’s lease assets and liabilities consisted of the following items (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ ​ ​ December 31, ​ September 30, ​ Leases Balance Sheet Classification 2022 2023 ​ Operating Leases ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating lease right-of-use assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Processing plants ​ Operating lease right-of-use assets ​ $ 1,849,116 ​ ​ 1,672,429 ​ Drilling rigs and completion services ​ Operating lease right-of-use assets ​ ​ 85,405 ​ ​ 45,406 ​ Gas gathering lines and compressor stations (1) ​ Operating lease right-of-use assets ​ ​ 1,463,756 ​ ​ 1,371,508 ​ Office space ​ Operating lease right-of-use assets ​ ​ 41,822 ​ ​ 38,736 ​ Vehicles ​ Operating lease right-of-use assets ​ ​ 756 ​ ​ — ​ Other office and field equipment ​ Operating lease right-of-use assets ​ ​ 3,476 ​ ​ 505 ​ Total operating lease right-of-use assets ​ ​ ​ $ 3,444,331 ​ ​ 3,128,584 ​ Operating lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term operating lease liabilities ​ Short-term lease liabilities ​ $ 556,137 ​ ​ 550,028 ​ Long-term operating lease liabilities ​ Long-term lease liabilities ​ ​ 2,888,194 ​ ​ 2,578,556 ​ Total operating lease liabilities ​ ​ ​ $ 3,444,331 ​ ​ 3,128,584 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance Leases ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease right-of-use assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ Vehicles ​ Other property and equipment ​ $ 2,159 ​ ​ 3,776 ​ Total finance lease right-of-use assets (2) ​ ​ ​ $ 2,159 ​ ​ 3,776 ​ Finance lease liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term finance lease liabilities ​ Short-term lease liabilities ​ $ 499 ​ ​ 1,009 ​ Long-term finance lease liabilities ​ Long-term lease liabilities ​ ​ 1,660 ​ ​ 2,767 ​ Total finance lease liabilities ​ ​ ​ $ 2,159 ​ ​ 3,776 ​ (1) Gas gathering lines and compressor stations includes $ 1.4 billion and $ 1.3 billion related to Antero Midstream as of December 31, 2022 and September 30, 2023, respectively. See “—Related party lease disclosure” for additional discussion. (2) Financing lease assets are recorded net of accumulated amortization of $ 1 million as of December 31, 2022 and September 30, 2023 . 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. ​ 25 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (b) Supplemental Information Related to Leases 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 September 30, ​ Nine Months Ended September 30, ​ Cost Classification Location 2022 2023 2022 2023 ​ Operating lease cost ​ Statement of operations ​ Gathering, compression, processing and transportation ​ $ 378,246 ​ ​ 418,005 ​ ​ 1,109,422 ​ ​ 1,206,733 ​ Operating lease cost ​ Statement of operations ​ General and administrative ​ ​ 2,855 ​ ​ 3,105 ​ ​ 8,509 ​ ​ 9,072 ​ Operating lease cost ​ Statement of operations ​ Contract termination ​ ​ 12,000 ​ ​ 297 ​ ​ 12,000 ​ ​ 4,227 ​ Operating lease cost ​ Statement of operations ​ Lease operating ​ ​ 44 ​ ​ 21 ​ ​ 133 ​ ​ 63 ​ Operating lease cost ​ Balance sheet ​ Proved properties (1) ​ ​ 34,288 ​ ​ 40,543 ​ ​ 83,146 ​ ​ 111,915 ​ Total operating lease cost ​ ​ ​ ​ ​ $ 427,433 ​ ​ 461,971 ​ ​ 1,213,210 ​ ​ 1,332,010 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Finance lease cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization of right-of-use assets ​ Statement of operations ​ Depletion, depreciation and amortization ​ $ 94 ​ ​ 464 ​ ​ 319 ​ ​ 1,102 ​ Interest on lease liabilities ​ Statement of operations ​ Interest expense ​ ​ 44 ​ ​ 165 ​ ​ 78 ​ ​ 441 ​ Total finance lease cost ​ ​ ​ ​ ​ $ 138 ​ ​ 629 ​ ​ 397 ​ ​ 1,543 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Short-term lease payments ​ ​ ​ ​ ​ $ 38,690 ​ ​ 31,324 ​ ​ 115,798 ​ ​ 103,732 ​ (1) Capitalized costs related to drilling and completion activities. ​ (c) Supplemental Cash Flow Information Related to Leases The following table presents the Company’s supplemental cash flow information related to leases (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, ​ ​ 2022 2023 ​ Cash paid for amounts included in the measurement of lease liabilities: ​ ​ ​ ​ ​ ​ ​ Operating cash flows from operating leases ​ $ 1,067,786 ​ ​ 1,023,385 ​ Operating cash flows from finance leases ​ ​ — ​ ​ 441 ​ Investing cash flows from operating leases ​ ​ 70,654 ​ ​ 95,480 ​ Financing cash flows from finance leases ​ ​ 441 ​ ​ 580 ​ ​ ​ ​ ​ ​ ​ ​ ​ Noncash activities: ​ ​ ​ ​ ​ ​ ​ Right-of-use assets obtained in exchange for new operating lease obligations ​ $ 366,194 ​ ​ 80,969 ​ Increase to existing right-of-use assets and lease obligations from operating lease modifications, net (1) ​ $ 119,290 ​ ​ 12,640 ​ (1) During the nine months ended September 30, 2022, the weighted average discount rate for remeasured operating leases decreased from 5.6 % as of December 31, 2021 to 5.2 % as of September 30, 2022. During the nine months ended September 30, 2023, the weighted average discount rate for remeasured operating leases increased from 5.1 % as of December 31, 2022 to 5.8 % as of September 30, 2023. ​ 26 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (d) Maturities of Lease Liabilities The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating Leases ​ Financing Leases ​ Total ​ Remainder of 2023 ​ $ 178,611 ​ ​ 386 ​ ​ 178,997 ​ 2024 ​ ​ 703,136 ​ ​ 1,546 ​ ​ 704,682 ​ 2025 ​ ​ 609,747 ​ ​ 1,504 ​ ​ 611,251 ​ 2026 ​ ​ 556,196 ​ ​ 1,148 ​ ​ 557,344 ​ 2027 ​ ​ 457,972 ​ ​ 128 ​ ​ 458,100 ​ Thereafter ​ ​ 1,252,713 ​ ​ 33 ​ ​ 1,252,746 ​ Total lease payments ​ ​ 3,758,375 ​ ​ 4,745 ​ ​ 3,763,120 ​ Less: imputed interest ​ ​ ( 629,791 ) ​ ​ ( 969 ) ​ ​ ( 630,760 ) ​ Total ​ $ 3,128,584 ​ ​ 3,776 ​ ​ 3,132,360 ​ ​ (e) Lease Term and Discount Rate The following table sets forth the Company’s weighted average remaining lease term and discount rate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2022 ​ September 30, 2023 ​ ​ ​ ​ Operating Leases ​ Finance Leases ​ Operating Leases ​ Finance Leases ​ ​ Weighted average remaining lease term ​ 7.2 years ​ 3.5 years ​ 6.7 years ​ 3.2 years ​ ​ Weighted average discount rate ​ 5.3 % 7.4 % 5.6 % 8.2 % ​ ​ (f) Related Party Lease Disclosure The Company has gathering and compression service agreements with Antero Midstream that include: (i) the second amended and restated gathering and compression agreement dated December 8, 2019 (the “2019 gathering and compression agreement”), (ii) gathering and compression agreements from Antero Midstream’s acquisition of certain Marcellus gathering and compression assets (the “Marcellus gathering and compression agreements”) and (iii) a compression agreement from Antero Midstream’s acquisition of certain Utica compressors (the “Utica compression agreement” and, together with the 2019 gathering and compression agreement and the Marcellus gathering and compression agreements, the “gathering and compression agreements”). Pursuant to the gathering and compression agreements with Antero Midstream, the Company has dedicated substantially all of its current and future acreage in West Virginia, Ohio and Pennsylvania to Antero Midstream for gathering and compression services. The 2019 gathering and compression agreement has an initial term through 2038, the Marcellus gathering and compression agreements expire between 2024 and 2031, and the Utica compression agreement has two dedicated areas that expire in 2024 and 2030. Upon expiration of each of the Marcellus gathering and compression agreements and the Utica compression agreement, Antero Midstream will continue to provide gathering and compression services under the 2019 gathering and compression agreement. Under the gathering and compression agreements, Antero Midstream receives a low-pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf and a compression fee per Mcf, as applicable, subject to annual adjustments based on the consumer price index. If and to the extent the Company requests that Antero Midstream construct new low pressure lines, high pressure lines and compressor stations, the 2019 gathering and compression agreement contains options at Antero Midstream’s election for either (i) minimum volume commitments that require Antero Resources to utilize or pay for 75 % of the high pressure gathering capacity and 70 % of the compression capacity of the requested capacity of such new construction for 10 years or (ii) a cost of service fee that allows the Antero Midstream to earn a 13 % rate of return on such new construction over seven years . In addition, certain of the Marcellus gathering and compression agreements provide for a minimum volume commitment that requires the Company to utilize or pay for 25 % of the capacity of new compressor station construction for 10 years . The 2019 gathering and compression agreement includes a growth incentive fee program whereby low-pressure gathering fees will be reduced from 2020 through 2023 to the extent the Company achieves certain quarterly volumetric targets. The Company’s throughput gathered under the Marcellus gathering and compression agreements is not considered in low pressure gathering volume targets. Upon completion of the initial contract term, the 2019 gathering and compression agreement will continue in effect from year to year until such time as the agreement is terminated, effective upon an 27 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements 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 achieved the first threshold volumetric target during each of the first, second and third quarters of 2022 and 2023, and earned fee rebates of $ 12 million for the three months ended September 30, 2022 and 2023 and $ 36 million for the nine months ended September 30, 2022 and 2023. Gathering and compression fees paid by Antero related to these agreements were $ 164 million and $ 189 million for the three months ended September 30, 2022 and 2023, respectively. For the nine months ended September 30, 2022 and 2023, gathering and compression fees paid by Antero related to this agreement were $ 492 million and $ 550 million, respectively. As of December 31, 2022 and September 30, 2023, $ 59 million and $ 63 million, respectively, was included within Accounts payable, related parties on the condensed consolidated balance sheet as due to Antero Midstream related to these agreements. ​ (13) Commitments The following table sets forth a schedule of future minimum payments for the Company’s contractual obligations, which include leases that have a lease term in excess of one year as of September 30, 2023 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Processing, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Gathering, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Firm ​ Compression ​ Operating and ​ Imputed Interest ​ ​ ​ ​ ​ ​ ​ Transportation ​ and Water Service ​ Financing Leases ​ for Leases ​ Other ​ ​ ​ ​ (a) (b) (c) (c) (d) Total Remainder of 2023 ​ $ 297,341 ​ ​ 16,820 ​ ​ 135,547 ​ ​ 43,450 ​ ​ 1,961 ​ ​ 495,119 ​ 2024 ​ ​ 1,147,772 ​ ​ 63,358 ​ ​ 550,237 ​ ​ 154,445 ​ ​ 8,354 ​ ​ 1,924,166 ​ 2025 ​ ​ 1,134,296 ​ ​ 52,011 ​ ​ 486,448 ​ ​ 124,803 ​ ​ 4,875 ​ ​ 1,802,433 ​ 2026 ​ ​ 1,131,882 ​ ​ 18,834 ​ ​ 459,311 ​ ​ 98,033 ​ ​ 2,250 ​ ​ 1,710,310 ​ 2027 ​ ​ 1,127,234 ​ ​ 17,546 ​ ​ 384,444 ​ ​ 73,656 ​ ​ — ​ ​ 1,602,880 ​ Thereafter ​ ​ 5,444,784 ​ ​ 80,914 ​ ​ 1,116,373 ​ ​ 136,373 ​ ​ — ​ ​ 6,778,444 ​ Total ​ $ 10,283,309 ​ ​ 249,483 ​ ​ 3,132,360 ​ ​ 630,760 ​ ​ 17,440 ​ ​ 14,313,352 ​ ​ (a) Firm Transportation The Company has entered into firm transportation agreements with various pipelines in order to facilitate the delivery of its production to market. These contracts commit the Company to transport minimum daily natural gas or NGLs volumes at negotiated rates or pay for any deficiencies at specified reservation fee rates. The amounts in this table are based on the Company’s minimum daily volumes at the reservation fee rate. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest. (b) Processing, Gathering, Compression and Water Service Commitments The Company has entered into various long- term gas processing, gathering, compression and water service agreements. Certain of these agreements were determined to be leases. The minimum payment obligations under the agreements that are not leases are presented in this column. The values in the table represent the gross amounts that the Company is committed to pay; however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest. (c) Operating and Finance Leases, including Imputed Interest The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases. The values in the table represent the gross amounts that Antero Resources is committed to pay; however, the Company will record in its financial statements its proportionate share of costs based on its working interests. See Note 12—Leases to the unaudited condensed consolidated financial statements for more information on the Company’s operating and finance leases. 28 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (d) Other The Company has entered into various land acquisition and sand supply agreements. Certain of these agreements contain minimum payment obligations over various terms. The values in the table represent the minimum payments due under these arrangements. None of these agreements were determined to be leases. (e) Contract Terminations The Company incurs costs associated with the delay or cancellation of certain contracts with third-parties. These costs are recorded in Contract termination and included in the statement of operations and comprehensive income (loss). During the third quarter of 2022, the Company cancelled the construction of the Smithburg 2 gas processing plant and made a cash payment of $ 12 million. During the first quarter of 2023, the Company executed an early termination of its firm transportation commitment of 200,000 MMBtu per day on the Equitrans pipeline and made a cash payment of $ 24 million. There are no remaining payment obligations related to any delayed or cancelled contracts as of September 30, 2023. ​ (14) Contingencies (a) Environmental In June 2018, the Company received a Notice of Violation (“NOV”) from the U.S. Environmental Protection Agency (“EPA”) Region III for alleged violations of the federal Clean Air Act and the West Virginia State Implementation Plan. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements. Separately, in June 2018, the Company received an information request from the EPA Region III pursuant to Section 114(a) of the Clean Air Act relating to the facilities that were inspected in September 2017 as well as additional Antero Resources facilities for the purpose of determining if the additional facilities have the same alleged compliance issues that were identified during the September 2017 inspections. Subsequently, the West Virginia Department of Environmental Protection (“WVDEP”) and the EPA Region V (covering Ohio facilities) each conducted its own inspections, and the Company has separately received NOVs from WVDEP and EPA Region V related to similar issues being investigated by the EPA Region III. The Company continues to negotiate with the EPA and WVDEP to resolve the issues alleged in the NOVs and the information request. The Company’s operations at these facilities are not suspended, and management does not expect these matters to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. (b) Other 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 the Company and other similarly situated peer operators could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that have been, and may be, deducted from royalty payments, among other things. While the amounts claimed could be material, we are unable to predict with certainty the ultimate outcome of such claims and proceedings. Rulings were recently received in two cases to which the Company is a party, and where the plaintiffs alleged, and the court found, that certain post-production costs may not be deducted: a non-class action lawsuit in West Virginia and a class action lawsuit in Ohio. In each case, the alleged damages were not material. The Company will continue to challenge the legal conclusions reached in each of these cases with respect to deductibility of post-production costs, and continues to analyze how these decisions may impact other cases to which the Company is a party. At this time, the Company cannot predict how these issues may ultimately be resolved, and therefore is also unable to estimate any potential damages, if any, that may result. The Company accrues for litigation, claims and proceedings when liability is both probable and the amount can be reasonably estimated, and does not currently have any material amounts accrued with respect to its pending litigation matters. ​ (15) Related Parties Substantially all of Antero Midstream’s revenues were and are derived from transactions with Antero Resources. See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments. ​ 29 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (16) Reportable Segments (a) Summary of Reportable Segments The Company’s operations, which are located in the United States, are organized into three reportable segments: (i) the exploration, development and production of natural gas, NGLs and oil; (ii) marketing and utilization of excess firm transportation capacity and (iii) midstream services through the Company’s equity method investment in Antero Midstream. Substantially all of the Company’s production revenues were attributable to customers located in the United States; however, some of the Company’s production revenues were attributable to customers who then transport the Company’s production to foreign countries for resale or consumption. These segments are monitored separately by management for performance and are consistent with internal financial reporting. These segments have been identified based on the differing products and services, regulatory environment and the expertise required for these operations. Management evaluates the performance of the Company’s business segments based on operating income (loss). General and administrative expenses were allocated to the midstream segment based on the nature of the expenses and on a combination of the segments’ proportionate share of the Company’s consolidated property and equipment, capital expenditures and labor costs, as applicable. General and administrative expenses related to the marketing segment were not allocated because they are immaterial. Other income, income taxes and interest expense are primarily managed and evaluated on a consolidated basis. Intersegment sales were transacted at prices which approximate market. Accounting policies for each segment are the same as the Company’s accounting policies described in Note 2—Summary of Significant Accounting Policies to the unaudited condensed consolidated financial statements. Exploration and Production The exploration and production segment is engaged in the development, production, exploration and acquisition of natural gas, NGLs and oil properties located in the Appalachian Basin. The Company targets large, repeatable resource plays where horizontal drilling and advanced fracture stimulation technologies provide the means to economically develop and produce natural gas, NGLs and oil from unconventional formations. Marketing Where feasible, the Company purchases and sells third-party natural gas and NGLs and markets its excess firm transportation capacity, or engages third parties to conduct these activities on the Company’s behalf, in order to optimize the revenues from these transportation agreements. The Company has entered into long-term firm transportation agreements for a significant portion of its current and expected future production in order to secure guaranteed capacity to favorable markets. Equity Method Investment in Antero Midstream The Company receives midstream services through its equity method investment in Antero Midstream. Antero Midstream owns, operates and develops midstream energy infrastructure primarily to service the Company’s production and completion activity in the Appalachian Basin. Antero Midstream’s assets consist of gathering pipelines, compressor stations, interests in processing and fractionation plants and water handling assets. Antero Midstream provides midstream services to Antero Resources under long-term contracts. 30 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements (b) Reportable Segments Financial Information The operating results and assets of the Company’s reportable segments were as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2022 ​ ​ ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ ​ and ​ ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total ​ Sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third-party ​ $ 1,904,302 ​ ​ 159,985 ​ ​ 1,651 ​ ​ ( 1,651 ) ​ ​ 2,064,287 ​ Intersegment ​ ​ 337 ​ ​ — ​ ​ 229,383 ​ ​ ( 229,383 ) ​ ​ 337 ​ Total revenue ​ ​ 1,904,639 ​ ​ 159,985 ​ ​ 231,034 ​ ​ ( 231,034 ) ​ ​ 2,064,624 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 27,453 ​ ​ — ​ ​ — ​ ​ — ​ ​ 27,453 ​ Gathering, compression, processing, transportation and water handling ​ ​ 716,388 ​ ​ — ​ ​ 46,648 ​ ​ ( 46,648 ) ​ ​ 716,388 ​ General and administrative ​ ​ 42,903 ​ ​ — ​ ​ 13,587 ​ ​ ( 13,587 ) ​ ​ 42,903 ​ Depletion, depreciation and amortization ​ ​ 169,607 ​ ​ — ​ ​ 34,206 ​ ​ ( 34,206 ) ​ ​ 169,607 ​ Impairment of property and equipment ​ ​ 33,924 ​ ​ — ​ ​ — ​ ​ — ​ ​ 33,924 ​ Other ​ ​ 114,812 ​ ​ 185,377 ​ ​ ( 1,177 ) ​ ​ 1,177 ​ ​ 300,189 ​ Total operating expenses ​ ​ 1,105,087 ​ ​ 185,377 ​ ​ 93,264 ​ ​ ( 93,264 ) ​ ​ 1,290,464 ​ Operating income (loss) ​ $ 799,552 ​ ​ ( 25,392 ) ​ ​ 137,770 ​ ​ ( 137,770 ) ​ ​ 774,160 ​ Equity in earnings of unconsolidated affiliates ​ $ 14,972 ​ ​ — ​ ​ 24,411 ​ ​ ( 24,411 ) ​ ​ 14,972 ​ Capital expenditures for segment assets ​ $ 244,680 ​ ​ — ​ ​ 74,120 ​ ​ ( 74,120 ) ​ ​ 244,680 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ and ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total ​ Sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third-party ​ $ 1,072,562 ​ ​ 53,068 ​ ​ 383 ​ ​ ( 383 ) ​ ​ 1,125,630 ​ Intersegment ​ 546 ​ ​ — ​ ​ 263,456 ​ ​ ( 263,456 ) ​ ​ 546 ​ Total revenue ​ ​ 1,073,108 ​ ​ 53,068 ​ ​ 263,839 ​ ​ ( 263,839 ) ​ ​ 1,126,176 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 33,484 ​ ​ — ​ ​ — ​ ​ — ​ ​ 33,484 ​ Gathering, compression, processing, transportation and water handling ​ ​ 671,886 ​ ​ — ​ ​ 51,914 ​ ​ ( 51,914 ) ​ ​ 671,886 ​ General and administrative ​ ​ 58,425 ​ ​ — ​ ​ 17,633 ​ ​ ( 17,633 ) ​ ​ 58,425 ​ Depletion, depreciation and amortization ​ ​ 176,259 ​ ​ — ​ ​ 30,745 ​ ​ ( 30,745 ) ​ ​ 176,259 ​ Impairment of property and equipment ​ ​ 13,476 ​ ​ — ​ ​ — ​ ​ — ​ ​ 13,476 ​ Other ​ ​ 47,372 ​ ​ 69,542 ​ ​ 1,234 ​ ​ ( 1,234 ) ​ ​ 116,914 ​ Total operating expenses ​ ​ 1,000,902 ​ ​ 69,542 ​ ​ 101,526 ​ ​ ( 101,526 ) ​ ​ 1,070,444 ​ Operating income (loss) ​ $ 72,206 ​ ​ ( 16,474 ) ​ ​ 162,313 ​ ​ ( 162,313 ) ​ ​ 55,732 ​ Equity in earnings of unconsolidated affiliates ​ $ 22,207 ​ ​ — ​ ​ 27,397 ​ ​ ( 27,397 ) ​ ​ 22,207 ​ Capital expenditures for segment assets ​ $ 912,046 ​ ​ — ​ ​ 45,286 ​ ​ ( 45,286 ) ​ ​ 912,046 ​ ​ 31 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2022 ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ and ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total Sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third-party ​ $ 4,716,827 ​ ​ 335,173 ​ ​ 2,288 ​ ​ ( 2,288 ) ​ ​ 5,052,000 ​ Intersegment ​ 1,149 ​ ​ — ​ ​ 676,144 ​ ​ ( 676,144 ) ​ ​ 1,149 ​ Total revenue ​ ​ 4,717,976 ​ ​ 335,173 ​ ​ 678,432 ​ ​ ( 678,432 ) ​ ​ 5,053,149 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 70,486 ​ ​ — ​ ​ — ​ ​ — ​ ​ 70,486 ​ Gathering, compression, processing, transportation and water handling ​ ​ 1,962,878 ​ ​ — ​ ​ 131,959 ​ ​ ( 131,959 ) ​ ​ 1,962,878 ​ General and administrative ​ ​ 123,033 ​ ​ — ​ ​ 47,597 ​ ​ ( 47,597 ) ​ ​ 123,033 ​ Depletion, depreciation and amortization ​ ​ 511,390 ​ ​ — ​ ​ 98,181 ​ ​ ( 98,181 ) ​ ​ 511,390 ​ Impairment of property and equipment ​ ​ 79,749 ​ ​ — ​ ​ — ​ ​ — ​ ​ 79,749 ​ Other ​ ​ 258,963 ​ ​ 415,571 ​ ​ 5,375 ​ ​ ( 5,375 ) ​ ​ 674,534 ​ Total operating expenses ​ ​ 3,006,499 ​ ​ 415,571 ​ ​ 283,112 ​ ​ ( 283,112 ) ​ ​ 3,422,070 ​ Operating income (loss) ​ $ 1,711,477 ​ ​ ( 80,398 ) ​ ​ 395,320 ​ ​ ( 395,320 ) ​ ​ 1,631,079 ​ Equity in earnings of unconsolidated affiliates ​ $ 54,863 ​ ​ — ​ ​ 70,467 ​ ​ ( 70,467 ) ​ ​ 54,863 ​ Capital expenditures for segment assets ​ $ 721,420 ​ ​ — ​ ​ 236,154 ​ ​ ( 236,154 ) ​ ​ 721,420 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ and ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total Sales and revenues: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Third-party ​ $ 3,331,130 ​ ​ 155,390 ​ ​ 929 ​ ​ ( 929 ) ​ ​ 3,486,520 ​ Intersegment ​ 1,309 ​ ​ — ​ ​ 780,672 ​ ​ ( 780,672 ) ​ ​ 1,309 ​ Total revenue ​ ​ 3,332,439 ​ ​ 155,390 ​ ​ 781,601 ​ ​ ( 781,601 ) ​ ​ 3,487,829 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Lease operating ​ ​ 91,553 ​ ​ — ​ ​ — ​ ​ — ​ ​ 91,553 ​ Gathering, compression, processing, transportation and water handling ​ ​ 1,981,033 ​ ​ — ​ ​ 162,382 ​ ​ ( 162,382 ) ​ ​ 1,981,033 ​ General and administrative ​ ​ 169,587 ​ ​ — ​ ​ 53,142 ​ ​ ( 53,142 ) ​ ​ 169,587 ​ Depletion, depreciation and amortization ​ ​ 515,247 ​ ​ — ​ ​ 101,174 ​ ​ ( 101,174 ) ​ ​ 515,247 ​ Impairment of property and equipment ​ ​ 44,746 ​ ​ — ​ ​ — ​ ​ — ​ ​ 44,746 ​ Other ​ ​ 146,536 ​ ​ 240,841 ​ ​ 8,722 ​ ​ ( 8,722 ) ​ ​ 387,377 ​ Total operating expenses ​ ​ 2,948,702 ​ ​ 240,841 ​ ​ 325,420 ​ ​ ( 325,420 ) ​ ​ 3,189,543 ​ Operating income (loss) ​ $ 383,737 ​ ​ ( 85,451 ) ​ ​ 456,181 ​ ​ ( 456,181 ) ​ ​ 298,286 ​ Equity in earnings of unconsolidated affiliates ​ $ 58,986 ​ ​ — ​ ​ 77,825 ​ ​ ( 77,825 ) ​ ​ 58,986 ​ Capital expenditures for segment assets ​ $ 912,046 ​ ​ — ​ ​ 130,025 ​ ​ ( 130,025 ) ​ ​ 912,046 ​ ​ ​ 32 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements The summarized assets of the Company’s reportable segments are as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2022 ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ and ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total ​ Investments in unconsolidated affiliates ​ $ 220,429 ​ ​ — ​ ​ 652,767 ​ ​ ( 652,767 ) ​ ​ 220,429 ​ Total assets ​ ​ 14,081,077 ​ ​ 36,962 ​ ​ 5,791,320 ​ ​ ( 5,791,320 ) ​ ​ 14,118,039 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ As of September 30, 2023 ​ ​ ​ ​ ​ ​ ​ Equity Method ​ ​ ​ ​ ​ ​ ​ Exploration ​ ​ ​ Investment in ​ Elimination of ​ ​ ​ ​ ​ and ​ ​ ​ Antero ​ Unconsolidated ​ Consolidated ​ ​ Production Marketing Midstream Affiliate Total Investments in unconsolidated affiliates ​ $ 220,110 ​ ​ — ​ ​ 635,954 ​ ​ ( 635,954 ) ​ ​ 220,110 ​ Total assets ​ ​ 13,716,306 ​ ​ 20,251 ​ ​ 5,758,711 ​ ​ ( 5,758,711 ) ​ ​ 13,736,557 ​ ​ ​ ​ ​ (17) Subsidiary Guarantors Antero Resources’ senior notes are fully and unconditionally guaranteed by Antero Resources’ existing subsidiaries that guarantee the Credit Facility. In the event a subsidiary guarantor is sold or disposed of (whether by merger, consolidation, the sale of a sufficient amount of its capital stock so that it no longer qualifies as a “Subsidiary” of Antero (as defined in the indentures governing the notes) or the sale of all or substantially all of its assets (other than by lease)) and whether or not the subsidiary guarantor is the surviving entity in such transaction to a person that is not Antero or a restricted subsidiary of Antero, such subsidiary guarantor will be released from its obligations under its subsidiary guarantee if the sale or other disposition does not violate the covenants set forth in the indentures governing the notes. 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 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. ​ 33 Table of Contents ANTERO RESOURCES CORPORATION Notes to Unaudited Condensed Consolidated Financial Statements ​ ​ ​ ​ ​ ​ ​ ​ Balance Sheet ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Unaudited) ​ ​ ​ December 31, 2022 ​ September 30, 2023 ​ Current assets ​ $ 739,104 ​ ​ 399,586 ​ Noncurrent assets ​ ​ 12,663,911 ​ ​ 12,720,679 ​ Total assets ​ $ 13,403,015 ​ ​ 13,120,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ Accounts payable, related parties ​ $ 80,708 ​ ​ 89,350 ​ Other current liabilities ​ ​ 1,668,426 ​ ​ 1,361,552 ​ Total current liabilities ​ ​ 1,749,134 ​ ​ 1,450,902 ​ Noncurrent liabilities ​ ​ 5,306,539 ​ ​ 5,171,893 ​ Total liabilities ​ $ 7,055,673 ​ ​ 6,622,795 ​ ​ ​ ​ ​ ​ ​ ​ ​ Statement of Operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ ​ ​ ​ ​ September 30, 2023 ​ Revenues ​ ​ ​ ​ $ 3,376,215 ​ Operating expenses ​ ​ ​ ​ ​ 3,155,685 ​ Income from operations ​ ​ ​ ​ ​ 220,530 ​ Net income and comprehensive income including noncontrolling interests ​ ​ ​ ​ ​ 148,155 ​ Net income and comprehensive income attributable to Antero Resources Corporation ​ ​ ​ ​ $ 148,155 ​ ​ ​ ​ ​ 34 Table of Contents