What changed in this filing

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Item 1. Financial Statements

2025-04-30 compared with 2024-10-30 · 268 added, 438 removed, 638 unchanged (53% of the section changed)

6 unchanged sentences

Unregistered Sales of Equity Securities

Mine Safety Disclosures

Other Information

6 unchanged sentences

Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:

● natural gas, NGLs and oil prices;

● our ability to execute our business strategy;

1 unchanged sentence

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

● our ability to execute our return of capital program;

● natural gas, 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;

● impacts of geopolitical events, including the conflicts in Ukraine and in the Middle East, and world health events;

● our ability to meet minimum volume commitments and to utilize or monetize our firm transportation commitments;

● marketing of natural gas, NGLs and oil;

● our future drilling plans;

● our projected well costs;

● our hedging strategy and results;

● costs of developing our properties;

● uncertainty regarding our future operating results;

● operations of Antero Midstream Corporation (“Antero Midstream”);

● competition;

1 unchanged sentence

● 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;

1 unchanged sentence

● credit markets;

● uncertainty regarding our future operating results;

● our other plans, objectives, expectations and intentions contained in this Quarterly Report on Form 10-Q.

15 unchanged sentences

(In thousands, except per share amounts)

September 30,

Current assets:

43 unchanged sentences

authorized - 1,000,000 shares;

303,544 and 311,031 shares issued and outstanding as of December 31, 2023 and September 30, 2024, respectively

311,165 and 311,584 shares issued and outstanding as of December 31, 2024 and March 31, 2025, respectively

Additional paid-in capital

5 unchanged sentences

ANTERO RESOURCES CORPORATION

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

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

(In thousands, except per share amounts)

Three Months Ended September 30,

Three Months Ended March 31,

Revenue and other:

1 unchanged sentence

Natural gas liquids sales

Commodity derivative fair value gains

Commodity derivative fair value gains (losses)

Amortization of deferred revenue, VPP

10 unchanged sentences

Contract termination, loss contingency and settlements

Gain on sale of assets

Loss (gain) on sale of assets

Other operating expense

Total operating expenses

Operating income (loss)

Operating income

Other income (expense):

2 unchanged sentences

Loss on early extinguishment of debt

Total other expense

Income (loss) before income taxes

Total other income (expense)

Income before income taxes

Income tax expense

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

net income and comprehensive income attributable to noncontrolling interests

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

Net income (loss) per common share—basic

Net income (loss) per common share—diluted

Weighted average number of common shares outstanding:

See accompanying notes to unaudited condensed consolidated financial statements.

ANTERO RESOURCES CORPORATION

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

(In thousands, except per share amounts)

Nine Months Ended September 30,

Revenue and other:

Natural gas sales

Natural gas liquids sales

Commodity derivative fair value gains

Amortization of deferred revenue, VPP

Other revenue and income

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing and transportation

Production and ad valorem taxes

Exploration and mine expenses

General and administrative (including equity-based compensation expense of $ 44,988 and $ 49,293 in 2023 and 2024, respectively)

Depletion, depreciation and amortization

Impairment of property and equipment

Accretion of asset retirement obligations

Contract termination, loss contingency and settlements

Gain on sale of assets

Other operating expense

Total operating expenses

Operating income (loss)

Other income (expense):

Interest expense, net

Equity in earnings of unconsolidated affiliate

Loss on early extinguishment of debt

Loss on convertible note inducement

Total other expense

Income (loss) before income taxes

Income tax benefit (expense)

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

Net income and comprehensive income including noncontrolling interests

net income and comprehensive income attributable to noncontrolling interests

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

Net income (loss) per common share—basic

Net income (loss) per common share—diluted

Net income and comprehensive income attributable to Antero Resources Corporation

Net income per common share—basic

Net income per common share—diluted

Weighted average number of common shares outstanding:

3 unchanged sentences

(In thousands)

Treasury Stock

Noncontrolling

2 unchanged sentences

Conversion of 2026 Convertible Notes

Repurchases and retirements of common stock

Equity-based compensation

2 unchanged sentences

Balances, March 31, 2024

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

Equity-based compensation

Distributions to noncontrolling interests

Net income (loss) and comprehensive income (loss)

Balances, June 30, 2023

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

Conversion of 2026 Convertible Notes

Equity-based compensation

Distributions to noncontrolling interests

Net income and comprehensive income

Balances, September 30, 2023

See accompanying notes to unaudited condensed consolidated financial statements.

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited)

(In thousands)

Treasury Stock

Noncontrolling

Balances, December 31, 2024

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

Conversion of 2026 Convertible Notes

Repurchases and retirements of common stock

Equity-based compensation

2 unchanged sentences

Balances, March 31, 2025

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

Equity-based compensation

Distributions to noncontrolling interests

Net income (loss) and comprehensive income (loss)

Balances, June 30, 2024

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

Equity-based compensation

Distributions to noncontrolling interest

Net income (loss) and comprehensive income (loss)

Balances, September 30, 2024

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Cash flows provided by (used in) operating activities:

Net income (loss) including noncontrolling interests

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

Net income including noncontrolling interests

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

Depletion, depreciation, amortization and accretion

Commodity derivative fair value gains

Commodity derivative fair value losses (gains)

Gains (losses) on settled commodity derivatives

Payments for derivative monetizations

Deferred income tax expense (benefit)

Deferred income tax expense

Equity-based compensation expense

5 unchanged sentences

Contract termination, loss contingency and settlements

Gain on sale of assets

Loss (gain) on sale of assets

Loss on early extinguishment of debt

Loss on convertible note inducement

Changes in current assets and liabilities:

16 unchanged sentences

Repurchases of common stock

Repayment of senior notes

Borrowings on Credit Facility

2 unchanged sentences

( 1,397,500 )

Payment of debt issuance costs

Convertible note inducement

Distributions to noncontrolling interests in Martica Holdings LLC

Employee tax withholding for settlement of equity-based compensation awards

Net cash provided by financing activities

Net cash used in financing activities

Net increase in cash and cash equivalents

16 unchanged sentences

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

In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments (consisting of normal and recurring accruals) considered necessary to present fairly the Company’s financial position as of December 31, 2023 and September 30, 2024, results of operations for the three and nine months ended September 30, 2023 and 2024 and cash flows for the nine months ended September 30, 2023 and 2024.

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, 2024 and March 31, 2025, results of operations for the three months ended March 31, 2024 and 2025 and cash flows for the three months ended March 31, 2024 and 2025.

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 three and nine months ended September 30, 2024 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.

Operating results for the three months ended March 31, 2025 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.

In the course of preparing our consolidated financial statements for the year ended December 31, 2024, the Company identified an error in the quarterly calculations related to depletion expense of the Company’s proved oil and gas properties.

See Note 17—Immaterial Correction of Prior Period Error to the unaudited condensed consolidated financial statements for additional information.

Principles of Consolidation

7 unchanged sentences

As of December 31, 2024, the book overdrafts included within accounts payable and revenue distributions payable were $ 14 million and $ 17 million, respectively.

As of September 30, 2024, the book overdrafts included within accounts payable and revenue distributions payable were $ 6 million and $ 18 million, respectively.

As of March 31, 2025, the book overdrafts included within accounts payable and revenue distributions payable were $ 21 million and $ 24 million, respectively.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Net Income (Loss) Per Common Share

Net 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 common shares outstanding during the period.

Net income (loss) per common share—diluted for each period is computed after giving consideration to the potential dilution from (i) outstanding equity-based 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.

Net Income Per Common Share

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

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

The Company includes restricted stock unit (“RSU”) awards, performance share unit (“PSU”) awards and stock options in the calculation of diluted weighted average common 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 common shares outstanding are equal to basic weighted average common shares outstanding because the effects of all equity-based 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 net income (loss) per common share (in thousands):

Three Months Ended

Nine Months Ended

September 30,

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

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

Three Months Ended March 31,

Net income attributable to Antero Resources Corporation—common shareholders

Interest expense for 2026 Convertible Notes

Tax-effect of interest expense for 2026 Convertible Notes

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

Net income (loss) per common share—basic

Net income (loss) per common share—diluted

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

Net income per common share—basic

Net income per common share—diluted

Weighted average common shares outstanding—basic

1 unchanged sentence

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Basic weighted average number of common shares outstanding

3 unchanged sentences

Diluted weighted average number of common shares outstanding

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

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

Stock options

2026 Convertible Notes

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company recognizes deferred tax assets and liabilities for temporary differences resulting from net operating loss carryforwards for income tax purposes and the differences between the financial statement and tax basis of assets and liabilities.

The effect of changes in tax laws or tax rates is recognized during the period such changes are enacted.

The effect of tax credits related to historical periods is recognized during the period when such credit is claimed on a filed tax return.

The Company commissioned a multi-year research and development (“R&D”) tax credit study related to the Company’s drilling and completion methods that is expected to favorably impact the Company’s effective tax rate and future tax obligations when the results are recorded.

The R&D tax study is expected to be finalized and filed on the Company’s federal and state tax returns, as applicable, during the fourth quarter of 2024.

Recently Issued Accounting Standards

(1) The potential dilutive effects of these securities were excluded from the computation of net income per common share—diluted because the inclusion of these securities would have been anti-dilutive.

Recently Adopted or Issued Accounting Standards

Reportable Segments

2 unchanged sentences

ASU 2023-07 is intended to improve reportable segment disclosures primarily through enhanced disclosure of reportable segment expenses.

This ASU is effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024.

Early adoption is permitted.

ASU 2023-07 is required to be applied retrospectively to all prior periods presented in the financial statements.

The Company is evaluating the impact that ASU 2023-07 will have on the financial statements.

The Company plans to adopt ASU 2023-07 in the Annual Report on Form 10-K for the year ending December 31, 2024.

This ASU was effective for annual reporting periods beginning after December 15, 2023, and interim periods within fiscal years beginning

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

after December 15, 2024.

The Company adopted ASU 2023-07 in the 2024 Form 10-K for the year ended December 31, 2024, and it did not have a material impact on the Company’s consolidated financial statements.

In December 2023, the FASB issued ASU No.

1 unchanged sentence

ASU 2023-09 is intended to improve income tax disclosures primarily through enhanced disclosure of income tax rate reconciliation items, and disaggregation of income (loss) from continuing operations, income tax (expense) benefit and income taxes paid, net disclosures by federal, state and foreign jurisdictions, among others.

This ASU is effective for annual reporting periods beginning after December 15, 2024, and early adoption is permitted.

This ASU is effective for annual reporting periods beginning after December 15, 2024, although early adoption is permitted.

ASU 2023-09 should be applied on a prospective basis, although retrospective application is permitted.

The Company is evaluating the impact that ASU 2023-09 will have on the financial statements and the transition method it plans to use for adoption.

The Company is evaluating the impact that ASU 2023-09 will have on the consolidated financial statements and the transition method it plans to use for adoption.

The Company plans to adopt ASU 2023-09 in the Annual Report on Form 10-K for the year ending December 31, 2025.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03, Disaggregation of Income Statement Expenses (“ASU 2024-03”).

ASU 2024-03 is intended to improve the disclosure about certain operating expenses primarily through enhanced disclosure of cost of sales and selling, general and administrative expenses.

This ASU is effective for annual reporting periods beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

Early adoption is permitted.

ASU 2024-03 can be applied on either a prospective or a retrospective basis at the Company’s election.

The Company is evaluating the impact that ASU 2024-03 will have on the consolidated financial statements and its plans for adoption, including its transition method and adoption date.

(3) Transactions

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”).

In connection with the transaction, the Company contributed the ORRIs to Martica and Sixth Street contributed $ 300 million in cash (subject to customary adjustments) and agreed to contribute up to an additional $ 102 million in cash if certain production thresholds attributable to the ORRIs were achieved in 2020 and 2021.

The Company met these production thresholds and received the $ 102 million of additional contributions from Sixth Street during 2020 and 2021.

All cash contributed by Sixth Street at the initial closing and received as part of these additional contributions was distributed to the Company.

The ORRIs include an overriding royalty interest of 1.25 % of the Company’s working interest in all of its operated proved developed properties in West Virginia and Ohio, subject to certain excluded wells (the “Initial PDP Override”), and an overriding royalty interest of 3.75 % of the Company’s working interest in all of its undeveloped properties in West Virginia and Ohio (the “Development Override”).

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 or (b) the earlier of (i) April 1, 2023 or (ii) the date on which the Company turns to sales 3.82 million lateral feet (net to the Company’s interest) of horizontal wells are subject to the Development Override.

As of April 1, 2023,

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Sixth Street no longer has the right to participate in any new wells, and Martica reconveyed the Development Override to the Company, except for the portion relating to wells turned to sales prior to April 1, 2023.

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) could be re-conveyed to the Company (at the Company’s election) if certain production targets attributable to the ORRIs were achieved through March 31, 2023.

Any portion of the Incremental Override that could 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, 24 % of the Incremental Override (or a 0.48 % overriding royalty interest) will remain with Martica.

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.

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 through 2024, 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 all four annual tranches.

Antero Resources develops and manages the drilling program associated with each tranche, including the selection of wells.

Additionally, for each annual tranche, 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 development capital of 20 %, 15 % and 15 % for wells spud in 2021, 2022 and 2023, respectively, and will fund 20 % of development capital 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.

The Company received a carry of $ 29 million for each of the 2021 and 2022 tranches during the three months ended December 31, 2022 and 2023.

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.

(a) 2021-2024 Drilling Partnership

On February 17, 2021, the Company 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 (“2021-2024 Drilling Partnership”).

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 the Company during such tranche year.

For 2021 through 2024, the Company 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 all four annual tranches.

The Company develops and manages the drilling program associated with each tranche, including the selection of wells.

Additionally, for each annual tranche, the Company 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 development capital of 20 % for wells spud in 2021 and 2024 and 15 % for wells spud in 2022 and 2023, which funding amounts represent QL’s proportionate working interest in such wells.

Additionally, the Company 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.

The Company received a carry of $ 29 million for each of the 2021 and 2022 tranches during the years ended December 31, 2022 and 2023 and a carry of $ 32 million for the 2023 tranche during the year ended December 31, 2024.

Capital costs in excess of, and cost savings below, a specified percentage of budgeted amounts for each annual tranche will be for the Company’s 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 FASB Accounting Standards Codification (“ASC”) Topic 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, 2023 and 2024.

The Company has accounted for the 2021-2024 Drilling Partnership as a conveyance under FASB Accounting Standards Codification (“ASC”) Topic 932, Extractive Activities—Oil and Gas, (“ASC 932”) and such conveyances are recorded in the unaudited condensed consolidated financial statements as QL obtains its proportionate working interest in each well.

No gain or loss was recognized for any of the interests conveyed to QL during the term of the 2021-2024 Drilling Partnership.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(b) 2025 Drilling Partnership

On December 11, 2024, the Company entered into a drilling partnership with an unaffiliated third-party (“2025 Drilling Partnership”).

Under the terms of the arrangement, the third-party will participate in and fund a share of total development capital expenses for wells spud by the Company during the 2025 calendar year.

For each well spud during the 2025 calendar year, the third-party will receive a 15 % working interest in such wells and will fund greater than 15 % of total development capital expenses for such wells.

Subject to the preceding sentence, for any wells spud in the calendar year 2025, the third-party 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.

Additionally, for each well in the partnership, the Company will enter into an assignment, bill of sale and conveyance pursuant to which the third-party will be conveyed a proportionate working interest percentage in such well, which conveyances will not be subject to any reversion.

The Company has accounted for the 2025 Drilling Partnership as a conveyance under ASC 932 and such conveyances are recorded in the unaudited condensed consolidated financial statements as the third-party obtains its proportionate working interest in each well.

No gain or loss was recognized for any of the interests conveyed during the three months ended March 31, 2025.

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 consolidated financial statements for more information on reportable segments.

Three Months Ended

Nine Months Ended

September 30,

See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for additional information.

Three Months Ended March 31,

Reportable Segment

10 unchanged sentences

Total revenue from contracts with customers

Income from derivatives, deferred revenue and other sources, net

Income (loss) from derivatives, deferred revenue and other sources, net

Total revenue

7 unchanged sentences

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

As of December 31, 2023 and September 30, 2024, the Company’s receivables from contracts with customers were $ 401 million and $ 319 million, respectively.

As of December 31, 2024 and March 31, 2025, the Company’s receivables from contracts with customers were $ 454 million and $ 513 million, respectively.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

(5) Equity Method Investment

As of December 31, 2023 and September 30, 2024, Antero owned 29.0 % and 28.9 %, respectively, of Antero Midstream’s common stock, which is reflected in Antero’s unaudited condensed consolidated financial statements using the equity method of accounting.

As of December 31, 2024 and March 31, 2025, Antero owned 29 % 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, 2024 (1)

Additional investments (2)

Equity in earnings of unconsolidated affiliate

1 unchanged sentence

Elimination of intercompany profit

Balance as of September 30, 2024 (1)

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2023 and September 30, 2024 was $ 1.7 billion and $ 2.1 billion, respectively, based on the quoted market share price of Antero Midstream.

(2) During the three months ended September 30, 2024, the Company received 0.1 million additional shares of Antero Midstream common stock as part of a judgment in a legal proceeding with an unaffiliated third-party.

Balance as of March 31, 2025 (1)

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2024 and March 31, 2025 was $ 2.1 billion and $ 2.5 billion, respectively, based on the quoted market share price of Antero Midstream.

(6) Accrued Liabilities

Accrued liabilities consisted of the following items (in thousands):

September 30,

Capital expenditures

8 unchanged sentences

Long-term debt consisted of the following items (in thousands):

September 30,

Credit Facility (a)

2 unchanged sentences

5.375 % senior notes due 2030 (d)

4.25 % convertible senior notes due 2026 (e)

Total principal

4 unchanged sentences

(a) Credit Facility

Antero Resources has a senior revolving credit facility with a consortium of bank lenders.

Antero Resources has a senior revolving credit facility with a syndicate of bank lenders.

References to the (i) “Secured Credit Facility” (defined below) refer to the credit facility in effect for periods prior to July 30, 2024, (ii) “Unsecured Credit Facility” (defined below) refer to the credit facility in effect on or after July 30, 2024 and (iii) “Credit Facility” refer to the Secured Credit Facility and Unsecured Credit Facility, collectively.

Senior Unsecured Revolving Credit Facility

On July 30, 2024, Antero Resources entered into an amendment and restatement of its senior revolving credit facility with a consortium of bank lenders (“Unsecured Credit Facility”).

On July 30, 2024, Antero Resources entered into an amendment and restatement of its senior revolving credit facility with a syndicate of bank lenders (“Unsecured Credit Facility”).

Borrowings are unsecured and are not guaranteed by any of Antero Resources’ subsidiaries.

As of September 30, 2024, the Unsecured Credit Facility had lender commitments of $ 1.65 billion and available borrowing capacity of $ 1.0 billion.

As of March 31, 2025, the Unsecured Credit Facility had lender commitments of $ 1.65 billion and available borrowing capacity of $ 1.3 billion.

The Unsecured Credit Facility matures on July 30, 2029 (the “Maturity Date”), provided that Antero Resources may request two one-year extensions of the Maturity Date, subject to satisfaction of certain conditions and consent of the extending lenders.

Commitments under the Unsecured Credit Facility may be increased by up to $ 500 million subject to the agreement of Antero Resources and its lenders.

The Unsecured Credit Facility contains a financial maintenance covenant with respect to Antero Resources’ total indebtedness to capitalization ratio not to exceed 65 % at the end of any fiscal quarter, and certain covenants, including restrictions on its ability to incur liens or debt, subject in each case to certain significant exceptions.

Antero Resources was in compliance with the financial covenant under the Unsecured Credit Facility as of September 30, 2024.

The Unsecured 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, in each case, plus an Applicable Margin (each as defined in the Unsecured Credit Facility).

The Unsecured 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 under the Unsecured Credit Facility.

The Applicable Margin is determined with reference to Antero Resources’ then-current credit ratings ranging from 1.125 % to 2.00 % for SOFR loans.

Commitment fees on the unused portion of the Unsecured Credit Facility are due quarterly at rates ranging from 0.125 % to 0.300 % with respect to the Unsecured Credit Facility, determined with reference to Antero Resources’ then-current credit ratings.

The proceeds of the loans made under the Unsecured Credit Facility may be used (i) to pay fees and expenses incurred in connection with the transactions related thereto and the refinancing of the Secured Credit Facility (defined below) and (ii) to finance working capital needs, and for other general corporate purposes, of Antero Resources and its subsidiaries.

As of September 30, 2024, Antero Resources had an outstanding balance under the Unsecured Credit Facility of $ 527 million, with a weighted average interest rate of 6.47 %, and outstanding letters of credit of $ 120 million.

Commitments under the Unsecured Credit Facility may be increased by up to $ 500 million subject to the agreement of Antero Resources, the increasing lenders, and with respect to the addition of new lenders, the consent of the Administrative Agent under the Unsecured Credit Facility and the lenders with commitments to issue letters of credit under the Unsecured Credit Facility.

The Unsecured Credit Facility contains one financial covenant requiring Antero Resources to maintain a ratio on a consolidated basis of total indebtedness to capitalization of 65 % or less at the end of each fiscal quarter and other affirmative and negative covenants applicable to Antero Resources and its subsidiaries that are customary for credit facilities of this type, including, among other things, limitations on:

fundamental changes such as mergers, consolidations, liquidations and dissolutions;

certain indebtedness;

restricted payments such as dividends, distributions and equity repurchases;

and material non-arms’-length transactions with its affiliates.

Antero Resources was in compliance with the financial covenant under the Unsecured Credit Facility as of March 31, 2025.

The Unsecured Credit Facility provides for borrowing at Secured Overnight Financing Rate (“SOFR”) or an Alternate Base Rate, in each case, plus an Applicable Rate (each as defined in the Unsecured Credit Facility).

There is a 0.10 % credit adjustment spread on SOFR and a 0.00 % floor.

The Unsecured Credit Facility does not amortize.

Interest under the Unsecured Credit Facility is payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of borrowing and at the end of each applicable interest period in respect of a borrowing, plus an Applicable Rate.

The Applicable Rate is determined with reference to Antero Resources’ then-current senior unsecured long-term debt rating ranging from 1.125 % to 2.00 % for SOFR loans.

Commitment fees on the unused portion of the Unsecured Credit Facility are due quarterly at rates ranging from 0.125 % to 0.300 %, determined with reference to Antero Resources’ then-current senior unsecured long-term debt ratings.

The proceeds of the loans made under the Unsecured Credit Facility may be used (i) to pay fees and expenses incurred in connection with the transactions related thereto and the refinancing of the Secured Credit Facility (defined below), (ii) to finance working capital needs and (iii) for other general corporate purposes, in each case of Antero Resources and its subsidiaries.

As of December 31, 2024, Antero Resources had an outstanding balance under the Unsecured Credit Facility of $ 393 million, with a weighted average interest rate of 5.9 %, and outstanding letters of credit of $ 13 million.

As of March 31, 2025, Antero Resources had an outstanding balance under the Unsecured Credit Facility of $ 304 million, with a weighted average interest rate of 6.0 %, and outstanding letters of credit of $ 13 million.

Senior Secured Revolving Credit Facility

On October 26, 2021, Antero Resources entered into an amended and restated senior secured revolving credit facility (the “Credit Facility”) with a consortium of bank lenders (“Secured Credit Facility”).

On October 26, 2021, Antero Resources entered into an amended and restated senior secured revolving credit facility with a syndicate of bank lenders (“Secured Credit Facility”).

Borrowings were secured by substantially all of the assets of Antero Resources and certain of its subsidiaries, were subject to borrowing base limitations based on the collateral value of Antero Resources’ assets and were subject to regular semi-annual redeterminations.

As of December 31, 2023, the Secured Credit Facility had a borrowing base of $ 3.5 billion with lender commitments of $ 1.6 billion.

The borrowing base was re-affirmed in the semi-annual redetermination in April 2024.

The Secured Credit Facility was refinanced in full and terminated upon the closing of the Unsecured Credit Facility on July 30, 2024.

The Secured Credit Facility contained 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 Secured Credit Facility as of December 31, 2023.

The Secured Credit Facility provided for borrowing at either an Adjusted Term SOFR , an Adjusted Daily Simple SOFR or an Alternate Base Rate, in each case, plus an Applicable Margin (each as defined in the Secured Credit Facility).

The Secured Credit Facility provided for interest only payments until maturity at which time all outstanding borrowings would be due.

Interest was payable at a variable rate based on SOFR or the Alternate Base Rate, determined by election at the time of

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

borrowing, plus an Applicable Margin under the Secured Credit Facility.

The Secured Credit Facility provided for borrowing at either an Adjusted Term SOFR, an Adjusted Daily Simple SOFR or an Alternate Base Rate, in each case, plus an Applicable Margin (each as defined in the Secured Credit Facility).

The Secured Credit Facility provided for interest only payments until maturity at which time all outstanding borrowings would be due.

Interest was 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 under the Secured Credit Facility.

The Applicable Margin was determined with reference to Antero Resources’ then-current leverage ratio subject to certain exceptions, which for SOFR loans ranged from 1.75 % to 2.75 % during a non-investment grade period (based on utilization of the Secured Credit Facility) and 1.25 % and 1.875 % during an investment grade period (based on a ratings grid).

1 unchanged sentence

The Secured Credit Facility included fall away covenants, lower interest rates and reduced collateral requirements that Antero Resources could elect if Antero Resources was assigned an Investment Grade Rating (as defined in the Secured Credit Facility).

As of December 31, 2023, Antero Resources had an outstanding balance under the Secured Credit Facility of $ 417 million, with a weighted average interest rate of 7.71 %, and outstanding letters of credit of $ 501 million.

(b) 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, 2024, $ 97 million principal amount of the 2026 Notes remained outstanding.

The 2026 Notes are unsecured and rank pari passu to Antero Resources’ Unsecured Credit Facility and other outstanding senior notes.

As of July 30, 2024, the 2026 Notes are not guaranteed by any of Antero Resources’ 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 at redemption prices ranging from 104.188 % currently to 100.00 % on or after January 15, 2026.

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.

The Company redeemed $ 175 million principal amount of the 2026 Notes on July 1, 2021 and redeemed or otherwise repurchased $ 228 million principal amount of the 2026 Notes during the year ended December 31, 2022.

On March 5, 2025, the Company redeemed the remaining $ 97 million principal amount of the 2026 Notes at 102.094 % of the principal amount thereof, plus accrued and unpaid interest, and the 2026 Notes were fully retired on such date.

Interest on the 2026 Notes was payable on January 15 and July 15 of each year.

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, 2024, $ 407 million principal amount of the 2029 Notes remained outstanding.

The Company redeemed or otherwise repurchased $ 293 million principal amount of the 2029 Notes during 2021 and 2022.

During the three months ended March 31, 2025, the Company repurchased $ 19 million principal amount of the 2029 Notes through open market transactions at a weighted average price of 102.725 % of the principal amount thereof, plus accrued and unpaid interest.

As of March 31, 2025, $ 388 million principal amount of the 2029 Notes remained outstanding.

The 2029 Notes are unsecured and rank pari passu to Antero Resources’ Unsecured Credit Facility and other outstanding senior notes.

1 unchanged sentence

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 at redemption prices ranging from 103.813 % currently to 100.00 % on or after February 1, 2027.

Antero Resources may redeem all or part of the 2029 Notes at any time at redemption prices ranging from 102.542 % as of March 31, 2025 to 100.00 % on or after February 1, 2027.

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.

4 unchanged sentences

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.

Antero Resources may redeem all or part of the 2030 Notes at any time at redemption prices ranging from 102.688 % as of March 31, 2025 to 100.00 % on or after March 1, 2028.

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.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(e) 4.25 % Convertible Senior Notes Due 2026

3 unchanged sentences

Transaction costs related to the 2026 Convertible Notes 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.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company extinguished $ 206 million principal amount of the 2026 Convertible Notes in 2021.

In addition, between 2022 and the first quarter of 2024, $ 81 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms or induced into conversion by the Company, and as of September 30, 2024, no 2026 Convertible Notes remained outstanding.

See “—Conversions and Inducements,” for more information.

In addition, between 2022 and the first quarter of 2024, $ 81 million aggregate principal amount of the 2026 Convertible Notes were converted pursuant to their terms or induced into conversion by the Company, and as of March 31, 2024, no 2026 Convertible Notes remained outstanding.

See “—Conversions” below for additional information.

The 2026 Convertible Notes bore 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.

2 unchanged sentences

Upon conversion, Antero Resources could 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.

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 third quarter of 2023.

On March 11, 2024, the Company called the $ 26 million aggregate principal amount of the 2026 Convertible Notes that remained outstanding for redemption on April 1, 2024, at a redemption price equal to 100 % of the principal amount thereof, plus accrued and unpaid interest.

The Company’s election to call the remaining 2026 Convertible Notes allowed holders of the 2026 Convertible Notes to exercise their conversion right through March 28, 2024.

During the first quarter of 2024, all remaining $ 26 million aggregate principal amount of the 2026 Convertible Notes converted pursuant to their terms.

During the three months ended March 31, 2024, all remaining $ 26 million aggregate principal amount of the 2026 Convertible Notes converted pursuant to their terms.

The Company elected to settle these conversions by issuing 6 million shares of common stock to the noteholders.

6 unchanged sentences

Revisions to prior estimates

Asset retirement obligations—September 30, 2024

Asset retirement obligations—March 31, 2025

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(9) Equity-Based Compensation

On June 17, 2020, Antero Resources’ stockholders approved the Antero Resources Corporation 2020 Long Term Incentive Plan (the “AR LTIP”), which replaced the Antero Resources Corporation Long Term Incentive Plan (the “2013 Plan”) and became effective as of such date.

On June 5, 2024, the Company’s stockholders approved the Amended and Restated Antero Resources Corporation 2020 Long Term Incentive Plan (the “Amended AR LTIP”).

This amendment increased the number of shares of the Company’s common stock reserved for awards from 10,050,000 shares to 14,916,100 shares, and extended the term of the plan from June 17, 2030 to June 5, 2034.

The Amended AR LTIP 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.

On June 5, 2024, the Company’s stockholders approved the Amended and Restated Antero Resources Corporation 2020 Long Term Incentive Plan (the “AR LTIP”).

The AR LTIP 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 (the “Board”).

Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the Amended AR LTIP.

The Amended AR LTIP provides for the reservation of 14,916,100 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery 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 the actual delivery of shares to be considered not delivered and thus, available for new awards under the Amended AR LTIP.

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 AR LTIP or Amended AR LTIP (other than stock options and stock appreciation rights), will again be available for new awards under the Amended AR LTIP.

A total of 10,871,264 shares were available for future grant under the Amended AR LTIP as of September 30, 2024.

Employees, officers, non-employee directors and other service providers of the Company and its affiliates are eligible to receive awards under the AR LTIP.

The AR LTIP provides for the reservation of 14,916,100 shares of the Company’s common stock, plus the number of certain shares that become available again for delivery 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 a predecessor plan to the AR LTIP that was outstanding as of June 17, 2020) that expires or is cancelled, forfeited, exchanged, settled for cash or otherwise terminated without the actual delivery of shares to be considered not delivered and thus, available for new awards under the AR LTIP.

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

A total of 9,713,453 shares were available for future grant under the AR LTIP as of March 31, 2025.

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,

Converted AM RSU Awards (1)

Three Months Ended March 31,

Equity awards issued to directors

Total expense

(1) Antero Resources recognized compensation expense for equity-based awards granted by Antero Midstream Partners LP’s (“Antero Midstream Partners”) under its equity compensation plans prior to March 12, 2019 (date of deconsolidation) because the awards under such plans were accounted for as if they were distributed by Antero Midstream Partners to Antero Resources.

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

As of March 31, 2023, all such awards were fully vested, and there is no remaining unamortized expense attributable to these awards after such date .

(a) Restricted Stock Unit Awards

1 unchanged sentence

Total awarded and unvested—December 31, 2024

( 1,588,616 )

Total awarded and unvested—September 30, 2024

As of September 30, 2024, there was $ 60 million of unamortized equity-based compensation expense related to unvested RSUs.

Total awarded and unvested—March 31, 2025

As of March 31, 2025, there was $ 75 million of unamortized equity-based compensation expense related to unvested RSUs.

That expense is expected to be recognized over a weighted average period of 2.2 years.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Performance Share Unit Awards

Performance Share Unit Awards Based on Total Shareholder Return

In March 2024, 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, 2025, March 7, 2026 and March 7, 2027, and one cumulative three-year performance period ending on March 7, 2027, in each case, subject to certain continued employment criteria (“2024 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 2024 Absolute TSR PSUs ranges from zero to 200 % of the target number of 2024 Absolute TSR PSUs originally granted.

In March 2025, 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, 2026, March 7, 2027 and March 7, 2028, and one cumulative three-year performance period ending on March 7, 2028, in each case, subject to certain continued employment criteria for each performance period (“2025 Absolute TSR PSUs”).

The number of shares of common stock that may ultimately be earned with respect to the 2025 Absolute TSR PSUs ranges from zero to 200 % of the target number of 2025 Absolute TSR PSUs originally granted.

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

5 unchanged sentences

Performance Share Unit Awards Based on Leverage Ratio

In March 2024, 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) (“Net Debt to EBITDAX”) determined as of the last day of each of three one-year performance periods ending on December 31, 2024 December 31, 2025 and December 31, 2026, in each case, subject to certain continued employment criteria (“2024 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 2024 Leverage Ratio PSUs ranges from zero to 200 % of the target number of 2024 Leverage Ratio PSUs originally granted.

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

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

The performance conditions for the performance periods ended December 31, 2022, 2023 and 2024 were met at 194 % of target.

During the first quarter of 2025, the 2022 Leverage Ratio PSUs vested and converted into approximately 0.3 million shares of common stock.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

In March 2025, the Company granted PSUs to certain of its senior management and executive officers that vest based on the Company’s Net Debt to 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, 2025, December 31, 2026 and December 31, 2027, in each case, subject to certain continued employment criteria for each performance period (“2025 Leverage Ratio PSUs”).

The number of shares of common stock that may ultimately be earned with respect to the 2025 Leverage Ratio PSUs ranges from zero to 200 % of the target number of 2025 Leverage Ratio PSUs originally granted.

Expense related to the 2025 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, 2024, the likelihood of achieving the performance conditions related to the 2024 Leverage Ratio PSUs was probable.

As of March 31, 2025, the likelihood of achieving the performance conditions related to the 2025 Leverage Ratio PSUs was probable.

Summary Information for Performance Share Unit Awards

1 unchanged sentence

Total awarded and unvested—December 31, 2024

Total awarded and unvested—September 30, 2024

(1) During the nine months ended September 30, 2024, the PSUs granted in 2021 that were based on absolute TSR and Net Debt to EBITDAX met the performance criteria to achieve vesting at 150 % and 200 % of target, respectively, and converted into approximately 0.7 million shares of the Company’s common stock.

As of September 30, 2024, there was $ 17 million of unamortized equity-based compensation expense related to unvested PSUs.

Total awarded and unvested—March 31, 2025

As of March 31, 2025, there was $ 24 million of unamortized equity-based compensation expense related to unvested PSUs.

That expense is expected to be recognized over a weighted average period of 1.6 years.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Stock Options

A summary of the stock option activity is as follows:

(in thousands) (1)

Outstanding—December 31, 2023

Outstanding—September 30, 2024

Vested—September 30, 2024

Exercisable—September 30, 2024

(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 .

(10) Fair Value

The carrying values of accounts receivable and accounts payable as of December 31, 2023 and September 30, 2024 approximated market values because of their short-term nature.

The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2023 and September 30, 2024 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):

The carrying values of accounts receivable and accounts payable as of December 31, 2024 and March 31, 2025 approximated market values because of their short-term nature.

The carrying values of the amounts outstanding under the Credit Facility as of December 31, 2024 and March 31, 2025 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 (in thousands):

December 31, 2024

September 30, 2024

2026 Convertible Notes

March 31, 2025

(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 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.

See Note 9—Equity-Based Compensation and Note 11—Derivative Instruments to the unaudited condensed consolidated financial statements for information regarding the fair value of equity-based awards and derivative financial instruments, respectively.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(11) Derivative Instruments

6 unchanged sentences

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

The Company was party to various fixed price commodity swap contracts that settled during the three and nine months ended September 30, 2023 and 2024.

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.

The Company was party to various commodity derivative contracts that settled during the three months ended March 31, 2024 and 2025.

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

Under the Company’s 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.

Under the Company’s collar agreements, when actual commodity prices upon settlement are below the floor price provided by the contract, the Company receives the difference from the counterparty.

When actual commodity prices upon settlement are above the ceiling 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 and comprehensive income.

As of September 30, 2024, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

As of March 31, 2025, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

Contracted Volume

October-December 2024

Mont Belvieu Propane-OPIS TET

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, 2024, the Company’s call option and embedded put option arrangements were as follows:

April-December 2025

As of March 31, 2025, the Company’s collar contract positions excluding Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

Contracted Volume

October-December 2024

January-December 2025

Ceiling Price

January-December 2026

As of September 30, 2024, 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

October-December 2024

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

As of September 30, 2024, the Company’s fixed price swap positions for Martica, the Company’s consolidated VIE, were as follows:

As of March 31, 2025, the Company’s call option and embedded put option arrangements were as follows:

Commodity / Settlement Period

Contracted Volume

October-December 2024

January-March 2025

October-December 2024

West Texas Intermediate

January-March 2025

West Texas Intermediate

April-December 2025

January-December 2026

During the three months ended March 31, 2025, all of Martica’s derivative contracts expired, and as of March 31, 2025, Martica had no derivative instruments.

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).

Balance Sheet Location

December 31, 2023

September 30, 2024

Asset derivatives not designated as hedges for accounting purposes:

Commodity derivatives—current

Derivative instruments

Embedded derivatives—current

11 unchanged sentences

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

(2) As of December 31, 2023, approximately $ 5 million of commodity derivative liabilities, including $ 3 million of current commodity derivatives and $ 2 million of noncurrent commodity derivatives, are attributable to the Company’s consolidated VIE, Martica.

As of September 30, 2024, $ 3 million of current commodity derivative liabilities are attributable to the Company’s consolidated VIE, Martica.

(2) As of December 31, 2024, $ 2 million of current commodity derivative liabilities are attributable to the Company’s consolidated VIE, Martica.

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

December 31, 2024

September 30, 2024

March 31, 2025

Net Amounts of

12 unchanged sentences

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 and comprehensive income (in thousands):

Three Months Ended

Nine Months Ended

September 30,

Commodity derivative fair value gains (1)

Three Months Ended March 31,

Commodity derivative fair value gains (losses) (1)

Embedded derivative fair value gains (losses) (1)

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

Commodity derivative fair value gains 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.

The payment for this early settlement is classified as an operating cash flow on the Company’s condensed consolidated statement of cash flows.

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

6 unchanged sentences

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.

For any contract deemed to include a leased asset, that asset is capitalized on the condensed consolidated 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.

9 unchanged sentences

The Company’s lease assets and liabilities consisted of the following items (in thousands):

September 30,

Balance Sheet Classification

27 unchanged sentences

Total finance lease liabilities

(1) Gas gathering lines and compressor stations includes $ 1.3 billion and $ 1.2 billion related to Antero Midstream as of December 31, 2023 and September 30, 2024, respectively.

(1) Gas gathering lines and compressor stations includes $ 1.1 billion and $ 1.2 billion related to Antero Midstream as of December 31, 2024 and March 31, 2025, respectively.

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

(2) Financing lease assets are recorded net of accumulated amortization of $ 1 million and $ 2 million as of December 31, 2023 and September 30, 2024, respectively .

(2) Financing lease assets are recorded net of accumulated amortization of $ 3 million as of December 31, 2024 and March 31, 2025 .

The processing plants, gathering lines and compressor stations that are classified as lease liabilities are classified as such under FASB ASC Topic 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.

3 unchanged sentences

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

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

Classification

7 unchanged sentences

Statement of operations

Contract termination, loss contingency and settlements

Operating lease cost

Statement of operations

Lease operating

15 unchanged sentences

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

Nine Months Ended September 30,

Three Months Ended March 31,

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

6 unchanged sentences

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

(1) 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.

During the nine months ended September 30, 2024, the weighted average discount rate for remeasured operating leases decreased from 6.5 % as of December 31, 2023 to 6.0 % as of September 30, 2024.

(1) During the three months ended March 31, 2024, the weighted average discount rate for remeasured operating leases decreased from 6.5 % as of December 31, 2023 to 5.9 % as of March 31, 2024.

During the three months ended March 31, 2025, the weighted average discount rate for remeasured operating leases increased from 5.5 % as of December 31, 2024 to 5.8 % as of March 31, 2025.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

(d) Maturities of Lease Liabilities

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of September 30, 2024 (in thousands):

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of March 31, 2025 (in thousands):

Operating Leases

6 unchanged sentences

December 31, 2024

September 30, 2024

March 31, 2025

Operating Leases

8 unchanged sentences

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, Marcellus gathering and compression agreement and Mountaineer gathering and compression agreement have initial terms through 2038, 2031 and 2026, respectively, and the Utica compression agreement has two dedicated areas that expire in 2024 and 2030.

Upon expiration of the Marcellus gathering and compression agreement, the Utica compression agreement and the Mountaineer gathering and compression agreement, Antero Midstream will continue to provide gathering and compression services under the 2019 gathering and compression agreement.

Upon expiration of the Marcellus gathering and compression agreement, Utica compression agreement and Mountaineer gathering and 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 Consumer Price Index (“CPI”)-based adjustments.

2 unchanged sentences

The Mountaineer gathering and compression agreement provides for monthly minimum compression and gathering fees for each compressor station or high pressure gathering line, respectively, for a period of 12 years commencing 90 days after such asset’s in-service date.

As of September 30, 2024, the minimum volume commitments for the 2019 gathering and compression

As of March 31, 2025, the minimum volume commitments for the 2019 gathering and compression

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

agreement and Marcellus gathering and compression agreement end in 2034 and 2024, respectively, and the minimum compression and gathering fees for the Mountaineer gathering and compression agreement end in 2026.

The 2019 gathering and compression agreement included a growth incentive fee program that expired on December 31, 2023 whereby low pressure gathering fees were reduced from 2020 through 2023 to the extent the Company achieved certain quarterly volumetric targets.

The Company’s throughput gathered under the Marcellus gathering and compression agreement was not considered in the low pressure gathering volume targets.

The Company earned fee rebates of $ 12 million and $ 36 million for the three and nine months ended September 30, 2023, respectively.

agreement end in 2035, and the minimum compression and gathering fees for the Mountaineer gathering and compression agreement end in 2026.

As of January 1, 2025, there were no minimum volume commitments under the Marcellus gathering and compression agreement.

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 anniversary of the effective date of the agreement, by notice from either the Company or Antero Midstream to the other party on or before the 180 th day prior to the anniversary of such agreement.

Gathering and compression fees paid by the Company related to these agreements were $ 189 million and $ 207 million for the three months ended September 30, 2023 and 2024, respectively.

For the nine months ended September 30, 2023 and 2024, gathering and compression fees paid by the Company related to this agreement were $ 550 million and $ 608 million, respectively.

As of December 31, 2023 and September 30, 2024, $ 65 million and $ 77 million, respectively, was included within accounts payable, related parties on the condensed consolidated balance sheets as due to Antero Midstream related to these agreements.

Gathering and compression fees paid by the Company related to these agreements were $ 199 million and $ 205 million for the three months ended March 31, 2024 and 2025, respectively.

As of December 31, 2024 and March 31, 2025, $ 79 million and $ 85 million, respectively, was included within accounts payable, related parties on the condensed consolidated balance sheets 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, 2024 (in thousands):

Operating and

16 unchanged sentences

however, the Company will record in the unaudited condensed consolidated financial statements its proportionate share of costs based on its working interest.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

1 unchanged sentence

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.

however, the Company will record in its financial statements its

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

proportionate share of costs based on its working interests.

See Note 12—Leases to the unaudited condensed consolidated financial statements for additional information.

The Company has entered into various land acquisition and sand supply agreements.

5 unchanged sentences

These costs are recorded in contract termination, loss contingency and settlements in the statements of operations and comprehensive income.

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, 2024.

There are no remaining payment obligations related to any delayed or cancelled contracts as of March 31, 2025.

(14) Contingencies

10 unchanged sentences

The Company’s production tax filings in West Virginia for 2018 to 2020 tax years were subject to audit by the State of West Virginia.

All assessments received in conjunction with this audit have been recorded in the unaudited condensed consolidated statements of operations and comprehensive net loss during the nine months ended September 30, 2024;

All assessments received in conjunction with this audit were recorded in the consolidated statements of operations and comprehensive net loss during the year ended December 31, 2024;

however, the Company has filed an appeal with regard to such assessments.

3 unchanged sentences

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

While the amounts claimed could be material, the Company is unable to predict with certainty the ultimate outcome of such claims and proceedings.

In a class action lawsuit to which the Company is a party, the U.S.

District Court for the Northern District of West Virginia certified certain questions to the West Virginia Supreme Court (the “WVSC”).

The WVSC answered the certified questions in November 2024, the effect of which would have broadened the scope of products for which the Company would owe royalties and would have also limited the amount of post-production costs the Company would be allowed to deduct from royalty payments made under certain of its leases.

In December 2024, Antero petitioned the WVSC for rehearing on these certified questions, which stayed the issuance of the mandate required for the November 2024 opinion to take effect.

The petition for rehearing was granted by the WVSC on

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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:

December 31, 2024.

Oral argument on the matter was held before the WVSC on April 22, 2025, and we are currently awaiting a ruling.

Rulings were recently received in two other 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 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 the foregoing 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.

3 unchanged sentences

(16) Reportable Segments

Summary of Reportable Segments

The Company’s operations, which are located in the United States, are organized into three reportable segments:

1 unchanged sentence

(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 are attributable to customers located in the United States;

however, some of the Company’s production revenues are 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 are 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.

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.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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, 2023

Equity Method

Investment in

Elimination of

Unconsolidated

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing, transportation and water handling

General and administrative

Depletion, depreciation and amortization

Impairment of property and equipment

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

Three Months Ended September 30, 2024

Three Months Ended March 31, 2024

Equity Method

2 unchanged sentences

Unconsolidated

Midstream (1)

Sales and revenues:

2 unchanged sentences

Lease operating

Gathering, compression, processing, transportation and water handling

General and administrative

Gathering and compression

Transportation

Water handling

Production and ad valorem taxes

General and administrative (excluding equity-based compensation)

Equity-based compensation

Facility idling

Depletion, depreciation and amortization

4 unchanged sentences

Capital expenditures for segment assets

(1) Amounts reflect those recorded in Antero Midstream’s unaudited condensed consolidated financial statements.

(2) Amounts include charges for exploration, accretion of asset retirement obligations, loss on settlement of asset retirement obligations, contract termination, loss contingency and settlements, loss (gain) on sale of assets and other operating expenses, as applicable, which represent segment operating expenses that are not considered significant.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Nine Months Ended September 30, 2023

Equity Method

Investment in

Elimination of

Unconsolidated

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

Gathering, compression, processing, transportation and water handling

General and administrative

Depletion, depreciation and amortization

Impairment of property and equipment

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Equity Method

2 unchanged sentences

Unconsolidated

Midstream (1)

Sales and revenues:

2 unchanged sentences

Lease operating

Gathering, compression, processing, transportation and water handling

General and administrative

Gathering and compression

Transportation

Water handling

Production and ad valorem taxes

General and administrative (excluding equity-based compensation)

Equity-based compensation

Facility idling

Depletion, depreciation and amortization

4 unchanged sentences

Capital expenditures for segment assets

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(1) Amounts reflect those recorded in Antero Midstream’s unaudited condensed consolidated financial statements.

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

4 unchanged sentences

Unconsolidated

Midstream (1)

Investments in unconsolidated affiliates

( 5,761,748 )

As of September 30, 2024

(1) Amounts reflect those recorded in Antero Midstream’s condensed consolidated financial statements.

As of March 31, 2025

Equity Method

2 unchanged sentences

Unconsolidated

Midstream (1)

Investments in unconsolidated affiliates

( 5,752,118 )

(17) Subsidiary Guarantors

As of December 31, 2023, Antero Resources’ senior notes were fully and unconditionally guaranteed by Antero Resources’ existing subsidiaries that guaranteed the Secured Credit Facility.

A subsidiary guarantor would be released from its obligations under the indentures and its guarantee (i) 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, (ii) if Antero designated such subsidiary as an unrestricted subsidiary and such designation complied with the other applicable provisions of the indentures governing the senior notes or (iii) in connection with any covenant defeasance, legal defeasance or satisfaction and discharge of the senior notes.

As described in Note 7—Long-Term Debt, the Unsecured Credit Facility is not guaranteed by any of Antero Resources’ subsidiaries.

As such, each subsidiary guarantor was released from its obligations under the indentures and its guarantee on July 30, 2024.

The table set forth below presents summarized financial information of Antero, as parent, and its guarantor subsidiaries as of December 31, 2023.

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

Balance Sheet

December 31, 2023

Current assets

Noncurrent assets

Accounts payable, related parties

Other current liabilities

Total current liabilities

Noncurrent liabilities

Total liabilities

(1) Amounts reflect those recorded in Antero Midstream’s unaudited condensed consolidated financial statements .

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(17) Immaterial Correction of Prior Period Error

This error had the effect of incorrectly reporting depletion expense amounts in prior periods, which resulted in incorrectly reporting depletion, depreciation and amortization expense and income tax (expense) benefit in prior periods.

After considering the guidance in Staff Accounting Bulletin (“SAB”) No.

99, Materiality, and FASB ASC Topic 250, Accounting Changes and Error Corrections, the Company evaluated the materiality of these amounts quantitatively and qualitatively and concluded that the error was not material to any of the Company’s prior annual or interim period financial statements.

The unaudited condensed consolidated financial statements for the three months ended March 31, 2024 in this Quarterly Report on Form 10-Q, have been revised in accordance with SAB No.

108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, in order to reflect these corrections.

The corrections reflect the adjustments to depletion, depreciation and amortization expense and income tax (expense) benefit described above, as well as the resulting adjustments to accumulated depletion, depreciation and amortization, deferred income tax liabilities, net and retained earnings (accumulated deficit).

Retained earnings as of December 31, 2023 reflected in the accompanying consolidated statements of equity has been decreased by $ 80 million from its previously reported balance of $ 1.1 billion to the corrected balance of $ 1.1 billion to reflect the impact of correcting this error for the years ended December 31, 2021, 2022 and 2023.

The correction of this error also impacted certain non-cash line items within the operating activities section of the consolidated statements of cash flows;

however, these corrections did not change previously reported net cash provided by operating activities for any period.

In addition to correcting the unaudited condensed consolidated financial statements, we have also corrected the following notes to the unaudited condensed consolidated financial statements for the effects of this error:

(i) Note 2 — Summary of Significant Accounting Policies and (ii) Note 16 — Reportable Segments.

The following table presents the effect of the corrections on selected line items from the previously reported unaudited condensed consolidated financial statements as of March 31, 2024 (in thousands, except per share amounts):

Statement of Operations and Comprehensive Income

Three Months Ended March 31, 2024

As Previously

Depletion, depreciation and amortization

Total operating expenses

Operating income

Income before income taxes

Income tax expense

Net income, including noncontrolling interest

Net income and comprehensive income

attributable to Antero Resources Corporation

Net income per common share—basic

Net income per common share—diluted

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

What changed 10-Q

Item 1. Financial Statements