What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-30 compared with 2025-04-30 · 293 added, 137 removed, 769 unchanged (36% of the section changed)

99 unchanged sentences

authorized - 1,000,000 shares;

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

311,165 and 309,869 shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively

Additional paid-in capital

5 unchanged sentences

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)

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

(In thousands, except per share amounts)

Three Months Ended March 31,

Three Months Ended June 30,

Revenue and other:

17 unchanged sentences

Total operating expenses

Operating income

Operating income (loss)

Other income (expense):

3 unchanged sentences

Total other income (expense)

Income before income taxes

Income tax expense

Net income and comprehensive income including noncontrolling interests

Income (loss) before income taxes

Income tax benefit (expense)

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

net income and comprehensive income attributable to noncontrolling interests

Net income and comprehensive income attributable to Antero Resources Corporation

Net income per common share—basic

Net income per common share—diluted

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:

1 unchanged sentence

ANTERO RESOURCES CORPORATION

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

(In thousands, except per share amounts)

Six Months Ended June 30,

Revenue and other:

Natural gas sales

Natural gas liquids sales

Commodity derivative fair value gains (losses)

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

General and administrative (including equity-based compensation expense of $ 33,228 and $ 31,000 in 2024 and 2025, respectively)

Depletion, depreciation and amortization

Impairment of property and equipment

Accretion of asset retirement obligations

Contract termination, loss contingency and settlements

Loss (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

Total other income (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 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 Stockholders’ Equity (Unaudited)

8 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, 2024

Balances, December 31, 2024

5 unchanged sentences

Balances, March 31, 2025

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

Repurchases and retirements of common stock

Equity-based compensation

Distributions to noncontrolling interests

Net income and comprehensive income

Balances, June 30, 2025

See accompanying notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(In thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Cash flows provided by (used in) operating activities:

Net income including noncontrolling interests

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

Net income (loss) including noncontrolling interests

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

Depletion, depreciation, amortization and accretion

1 unchanged sentence

Gains (losses) on settled commodity derivatives

Deferred income tax expense

Deferred income tax expense (benefit)

Equity-based compensation expense

32 unchanged sentences

Employee tax withholding for settlement of equity-based compensation awards

Net cash used in financing activities

Net cash provided by (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, 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.

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 June 30, 2025, results of operations for the three and six months ended June 30, 2024 and 2025 and cash flows for the six months ended June 30, 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 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.

Operating results for the three and six months ended June 30, 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.

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

As of June 30, 2025, the book overdrafts included within accounts payable and revenue distributions payable were $ 4 million and $ 23 million, respectively.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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.

Net Income (Loss) Per Common Share

Net income (loss) 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 (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.

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 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 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

Weighted average common shares outstanding—diluted

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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Basic weighted average number of common shares outstanding

1 unchanged sentence

Dilutive effect of PSUs

Dilutive effect of 2026 Convertible Notes

Diluted weighted average number of common shares outstanding

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

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

Stock options

(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.

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.

On July 4, 2025, Public Law No.

119-21, commonly referred to as the One Big Beautiful Bill Act (the “OBBB”), was enacted.

The OBBB contains a broad range of changes to U.S.

federal income tax laws and makes permanent or modifies certain provisions of Public Law No.

115-97, commonly referred to as the Tax Cuts and Jobs Act.

These changes include, among others, permanently restoring an EBITDA-based business interest deduction limitation, 100% bonus depreciation for certain property and immediate expensing for certain domestic research and experimental expenditures.

All effects of changes in tax laws are recognized in the condensed consolidated financial statements during the period of enactment.

As such, the effects of the OBBB are not reflected in the Company's provision for income taxes as of and for the three and six months ended June 30, 2025.

The Company is evaluating the impact of the OBBB on its condensed consolidated financial statements.

Recently Adopted or Issued Accounting Standards

46 unchanged sentences

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.

No gain or loss was recognized for any of the interests conveyed during the three and six months ended June 30, 2025.

Disaggregation of Revenue

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Reportable Segment

20 unchanged sentences

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

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

As of December 31, 2024 and June 30, 2025, the Company’s receivables from contracts with customers were $ 454 million and $ 368 million, respectively.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

(5) Equity Method Investment

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.

As of December 31, 2024 and June 30, 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):

3 unchanged sentences

Elimination of intercompany profit

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.

Balance as of June 30, 2025 (1)

(1) The fair value of the Company’s investment in Antero Midstream as of December 31, 2024 and June 30, 2025 was $ 2.1 billion and $ 2.6 billion, respectively, based on the quoted market share price of Antero Midstream.

(6) Accrued Liabilities

25 unchanged sentences

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

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.

As of June 30, 2025, the Unsecured Credit Facility had lender commitments of $ 1.65 billion and available borrowing capacity of $ 1.5 billion.

The Unsecured Credit Facility was originally scheduled to mature 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.

Effective July 30, 2025, Antero Resources obtained the consent of each of the lenders party to the Unsecured Credit Facility to extend the Maturity Date to July 30, 2030.

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.

4 unchanged sentences

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.

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

6 unchanged sentences

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.

As of June 30, 2025, Antero Resources had an outstanding balance under the Unsecured Credit Facility of $ 140 million, with a weighted average interest rate of 5.9 %, and outstanding letters of credit of $ 13 million.

Senior Secured Revolving Credit Facility

18 unchanged sentences

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.

During the six months ended June 30, 2025, the Company repurchased $ 42 million principal amount of the 2029 Notes through open market transactions at a weighted average price of 102.569 % of the principal amount thereof, plus accrued and unpaid interest.

As of June 30, 2025, $ 365 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 102.542 % as of March 31, 2025 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 June 30, 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 at redemption prices ranging from 102.688 % as of March 31, 2025 to 100.00 % on or after March 1, 2028.

Antero Resources may redeem all or part of the 2030 Notes at any time at redemption prices ranging from 102.688 % as of June 30, 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.

7 unchanged sentences

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 March 31, 2024, no 2026 Convertible Notes remained outstanding.

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 June 30, 2024, no 2026 Convertible Notes remained outstanding.

See “—Conversions” below for additional information.

5 unchanged sentences

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

During the first quarter of 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—March 31, 2025

Asset retirement obligations—June 30, 2025

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

7 unchanged sentences

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.

A total of 10,326,506 shares were available for future grant under the AR LTIP as of June 30, 2025.

ANTERO RESOURCES CORPORATION

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Equity awards issued to directors

3 unchanged sentences

Total awarded and unvested—December 31, 2024

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.

( 1,482,499 )

Total awarded and unvested—June 30, 2025

As of June 30, 2025, there was $ 62 million of unamortized equity-based compensation expense related to unvested RSUs.

That expense is expected to be recognized over a weighted average period of 2.0 years.

1 unchanged sentence

Performance Share Unit Awards Based on Total Shareholder Return

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.

In April 2022, 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 April 15, 2023, April 15, 2024 and April 15, 2025, and one cumulative three-year performance period ending on April 15, 2025, in each case, subject to certain continued employment criteria (“2022 Absolute TSR PSUs”).

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

The performance conditions for the performance periods ended April 15, 2023, 2024 and 2025 were met cumulatively at 110 % of target.

During the second quarter of 2025, the 2022 Absolute TSR PSUs vested and converted into approximately 0.2 million shares of common stock.

In March 2025, the Company granted PSU awards to certain of its senior management and executive officers that vest based on Antero Resources’ absolute TSR determined as of the last day of each of three one-year performance periods ending on 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 2025 Absolute TSR PSUs will be settled following the end of each performance period.

The aggregate 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.

4 unchanged sentences

Weighted average fair value of awards granted

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Performance Share Unit Awards Based on Leverage Ratio

1 unchanged sentence

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.

The performance conditions for the performance periods ended December 31, 2022, 2023 and 2024 were met cumulatively 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.

The 2025 Leverage Ratio PSUs will be settled following the end of each performance period.

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

As of June 30, 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—March 31, 2025

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

Total awarded and unvested—June 30, 2025

As of June 30, 2025, there was $ 19 million of unamortized equity-based compensation expense related to unvested PSUs.

That expense is expected to be recognized over a weighted average period of 1.5 years.

Stock Options

A summary of the stock option activity is as follows:

(in thousands) (1)

Outstanding—December 31, 2024

Outstanding—June 30, 2025

Vested—June 30, 2025

Exercisable—June 30, 2025

(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.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(10) Fair Value

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 carrying values of accounts receivable and accounts payable as of December 31, 2024 and June 30, 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 June 30, 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

March 31, 2025

June 30, 2025

(1) Fair values are based on Level 2 market data inputs.

1 unchanged sentence

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.

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

The Company was party to various commodity derivative contracts that settled during the three and six months ended June 30, 2024 and 2025.

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

4 unchanged sentences

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

therefore, all gains and losses are recognized in the Company’s statements of operations and comprehensive income (loss).

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

As of June 30, 2025, the Company’s fixed price swap positions excluding Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

Contracted Volume

April-December 2025

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

July-December 2025

As of June 30, 2025, the Company’s collar contract positions excluding Martica, the Company’s consolidated VIE, were as follows:

Commodity / Settlement Period

2 unchanged sentences

January-December 2026

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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

As of June 30, 2025, the Company’s call option and embedded put option arrangements were as follows:

Commodity / Settlement Period

Contracted Volume

April-December 2025

July-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.

During the three months ended March 31, 2025, all of Martica’s derivative contracts expired, and as a result, Martica had no derivative instruments as of March 31, 2025 or June 30, 2025.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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).

1 unchanged sentence

Asset derivatives not designated as hedges for accounting purposes:

Commodity derivatives—current

Derivative instruments

Embedded derivatives—current

Derivative instruments

Commodity derivatives—noncurrent

Derivative instruments

Embedded derivatives—noncurrent

12 unchanged sentences

December 31, 2024

March 31, 2025

June 30, 2025

Net Amounts of

9 unchanged sentences

Commodity derivative liabilities

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

Commodity derivative fair value gains (losses) (1)

1 unchanged sentence

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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

47 unchanged sentences

Total finance lease liabilities

(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.

(1) Gas gathering lines and compressor stations includes $ 1.1 billion related to Antero Midstream as of December 31, 2024 and June 30, 2025.

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

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

(2) Financing lease assets are recorded net of accumulated amortization of $ 3 million as of December 31, 2024 and June 30, 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.

2 unchanged sentences

(b) Supplemental Information Related to Leases

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

Three Months Ended March 31,

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

Three Months Ended June 30,

Six Months Ended June 30,

Classification

24 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

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

5 unchanged sentences

Right-of-use assets obtained in exchange for new operating lease obligations

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

(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.

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

(1) During the six months ended June 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 June 30, 2024.

During the six months ended June 30, 2025, the weighted average discount rate for remeasured operating leases increased from 5.5 % as of December 31, 2024 to 5.8 % as of June 30, 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 March 31, 2025 (in thousands):

The table below is a schedule of future minimum payments for operating and financing lease liabilities as of June 30, 2025 (in thousands):

Operating Leases

6 unchanged sentences

December 31, 2024

March 31, 2025

June 30, 2025

Operating Leases

13 unchanged sentences

The Marcellus gathering and compression agreement provides for a minimum volume commitment that requires the Company to utilize or pay for 25 % of the compression capacity for a period of 10 years from the in-service date.

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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

asset’s in-service date.

As of June 30, 2025, the minimum volume commitments for the 2019 gathering and compression 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 $ 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.

Gathering and compression fees paid by the Company related to these agreements were $ 202 million and $ 212 million for the three months ended June 30, 2024 and 2025, respectively.

For the six months ended June 30, 2024 and 2025, gathering and compression fees paid by the Company related to this agreement were $ 401 million and $ 417 million, respectively.

As of December 31, 2024 and June 30, 2025, $ 79 million and $ 82 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 March 31, 2025 (in thousands):

Operating and

18 unchanged sentences

The Company has obligations under contracts for services provided by drilling rigs and completion fleets, processing, gathering, and compression services agreements, and office and equipment leases.

The values in the table represent the gross amounts that Antero Resources is committed to pay;

however, the Company will record in its financial statements its

The values in the table represent the gross

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

proportionate share of costs based on its working interests.

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 additional information.

5 unchanged sentences

The Company incurs costs associated with the delay or cancellation of certain contracts with third-parties.

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

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

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

There are no remaining payment obligations related to any delayed or cancelled contracts as of June 30, 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 were recorded in the consolidated statements of operations and comprehensive net loss during the year ended December 31, 2024;

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

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

At this time, the Company believes the outcome of this matter will not have a material adverse effect on the Company’s unaudited condensed consolidated financial position, results of operations or cash flows.

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

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

In addition, pending litigation against the Company and other similarly situated peer operators could have an impact on the methods for determining the amount of permitted post-production costs and types of costs that have been, and may be, deducted from royalty payments, among other things.

While the amounts claimed could be material, 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

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

The Company evaluates its legal proceedings on a regular basis and accrues a liability for such matters when the Company believes that a loss is probable and the amount of the loss can be reasonably estimated.

Any such accruals are adjusted thereafter to reflect changed circumstances.

In the event the Company determines that (i) a loss to the Company is probable but the amount of the loss cannot be reasonably estimated, or (ii) a loss to the Company is less likely than probable but is reasonably possible, then the Company is required to disclose the matter herein, although the Company is not required to accrue such loss.

When able, the Company determines an estimate of reasonably possible losses or ranges of reasonably possible losses, whether in excess of any related accrued liability or where there is no accrued liability, for legal proceedings.

In instances where such estimates can be made, any such estimates are based on the Company's analysis of currently available information and are subject to significant judgment and a variety of assumptions and uncertainties and may change as new information is obtained.

The Company could also be responsible for interest on any amount the Company may be determined to owe, the amount of which is not determinable or estimable.

The ultimate outcome of the matters described above, such as whether the likelihood of loss is remote, reasonably possible, or probable, or if and when the range of loss is reasonably estimable, is

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

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:

inherently uncertain.

Furthermore, due to the inherent subjectivity of the assessments and unpredictability of outcomes of legal proceedings, any amounts accrued or estimated as possible losses may not represent the ultimate loss to the Company from the legal proceedings in question and the Company's exposure and ultimate losses may be higher than the amounts accrued or estimated.

The Company has been named in various lawsuits alleging royalty underpayments, some of which seek class action certification.

Pending litigation against the Company and other peer operators could have an impact on the methods for determining royalty payments due to lessors under oil and gas leases, including 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, many of these proceedings are in early stages, involve multiple lease forms with varying royalty provisions and seek or may seek damages the amount of which is currently indeterminate.

In a class action lawsuit to which the Company is a party, Jacklin Romeo, et al.

Antero Resources Corporation , the U.S.

District Court for the Northern District of West Virginia certified certain questions to the West Virginia Supreme Court (the “WVSC”) with respect to the interpretation of West Virginia’s implied duty to market gas where a lease lacks any express language regarding the allocation of post-production costs and the treatment of NGLs.

The WVSC answered the certified questions in November 2024;

however, in December 2024, Antero petitioned the WVSC for rehearing on the 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 December 31, 2024, and oral argument on the matter was held before the WVSC on April 22, 2025.

On June 11, 2025, the WVSC answered the certified questions, the effect of which broadens the scope of products for which the Company will pay royalties and limits the amount of post-production costs the Company deducts from royalty payments, in each case, under leases that do not contain language to the contrary.

With respect to the Romeo matter, the Company has accrued an immaterial amount as of June 30, 2025 for estimated damages that is recorded in contract termination, loss contingency and settlements in the condensed consolidated statements of operations and comprehensive income (loss).

The WVSC’s answers to the certified questions in the Romeo matter could also impact past royalty payments made by the Company, as well as royalty payments owed in the future, under certain of the Company’s other leases that are not at issue in the Romeo matter.

While the Company cannot predict with certainty the timing and ultimate outcome of any other currently pending claims or potential other claims relating to royalty payments under such other leases, the Company currently estimates the amount of losses that are reasonably possible associated with such other leases, could be up to $ 400 million.

Rulings were also previously 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 based on interpretation of specific language in the applicable leases:

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 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.

The Company will continue to challenge the legal conclusions reached in each of these cases, 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 and when the foregoing issues may ultimately be resolved, and therefore is also unable to estimate potential damages, if any, that may result.

(15) Related Parties

1 unchanged sentence

See Note 16—Reportable Segments to the unaudited condensed consolidated financial statements for the operating results of the Company’s reportable segments.

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

(16) Reportable Segments

3 unchanged sentences

The operating results and assets of the Company’s reportable segments were as follows (in thousands):

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Equity Method

24 unchanged sentences

Notes to Unaudited Condensed Consolidated Financial Statements

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Equity Method

22 unchanged sentences

(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

Six Months Ended June 30, 2024

Equity Method

Investment in

Elimination of

Unconsolidated

Midstream (1)

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

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

Impairment of property and equipment

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

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

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Six Months Ended June 30, 2025

Equity Method

Investment in

Elimination of

Unconsolidated

Midstream (1)

Sales and revenues:

Total revenue

Operating expenses:

Lease operating

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

Impairment of property and equipment

Total operating expenses

Operating income (loss)

Equity in earnings of unconsolidated affiliates

Capital expenditures for segment assets

(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):

8 unchanged sentences

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

As of March 31, 2025

As of June 30, 2025

Equity Method

13 unchanged sentences

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.

The unaudited condensed consolidated financial statements for the three and six months ended June 30, 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.

5 unchanged sentences

(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

The following table presents the effect of the corrections on selected line items from the previously reported unaudited condensed consolidated financial statements as of June 30, 2024 (in thousands, except per share amounts):

Statement of Operations and Comprehensive Loss

Three Months Ended June 30, 2024

As Previously

1 unchanged sentence

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

Operating loss

Loss before income taxes

Income tax benefit

Net loss, including noncontrolling interest

Net loss and comprehensive loss attributable to Antero Resources Corporation

Loss per common share—basic

Loss per common share—diluted

ANTERO RESOURCES CORPORATION

Notes to Unaudited Condensed Consolidated Financial Statements

Statement of Operations and Comprehensive Loss

Six Months Ended June 30, 2024

As Previously

Depletion, depreciation and amortization

Total operating expenses

Operating income (loss)

Loss before income taxes

Income tax benefit

Net loss, including noncontrolling interest

Net loss and comprehensive loss attributable to Antero Resources Corporation

Loss per common share—basic

Loss 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