Antero Resources Q2 Earnings Miss on Higher Expenses, Revenues Beat

Antero Resources Corporation AR reported second-quarter 2025 adjusted earnings of 35 cents per share, which missed the Zacks Consensus Estimate of 48 cents. The bottom line, however, improved from the year-ago quarter’s adjusted loss of 19 cents per share.

Total quarterly revenues of $1,297 million topped the Zacks Consensus Estimate of $1,255 million. The top line also increased from the year-ago figure of $979 million.

The weaker-than-expected quarterly earnings can be primarily attributed to a decline in oil production and higher operating expenses. However, higher gas-equivalent price realization and increased natural gas production partially offset the negatives.

Antero Resources Corporation Price, Consensus and EPS Surprise

Antero Resources Corporation price-consensus-eps-surprise-chart | Antero Resources Corporation Quote

Overall Production

Total production in the second quarter was 312 billion cubic feet equivalent (Bcfe), a marginal increase from 311 Bcfe recorded a year ago. The figure came in below our estimate of 315 Bcfe.

Natural gas production (accounting for 65% of the total production) was 203 Bcf, up 4% from 196 Bcf recorded a year ago. Our estimate for the same was pinned at 204 Bcf.

Oil production in the quarter amounted to 672 thousand barrels (MBbls), down 29% from 952 MBbls registered in the year-ago period. Our estimate for the same was pegged at 927 MBbls.

Antero Resources reported production of 6,924 MBbls of C2 Ethane, a decrease of 11% from the year-ago quarter’s recorded figure of 7,811 MBbls. Our estimate for the same was pinned at 7,042 MBbls.

The company’s production of 10,608 MBbls of C3+ NGLs was 1% higher than 10,514 MBbls reported a year ago. Our estimate for the same was pegged at 10,614 MBbls.

Realized Prices (Excluding Derivative Settlements)

Weighted natural-gas-equivalent price realization in the quarter is $3.85 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $2.98. The reported figure was below our estimate of $4.30.

Realized prices for natural gas increased 77% to $3.39 per Mcf from $1.92 recorded a year ago. The figure came in higher than our estimate of $3.38 per Mcf.

The company’s oil price realization in the quarter was $50.15 per barrel (Bbl), lower than $66.66 registered a year ago. The figure also came in lower than our estimate of $51.03 per Bbl.

The realized price for C3+ NGLs declined to $37.92 per Bbl from $40.27 reported a year ago. The figure was below our estimate of $38.33 per Bbl.

The realized price for C2 Ethane increased to $11.34 per Bbl from $8.42 recorded a year ago. The figure was above our estimate of $8.07 per Bbl.

Operating Expenses

Total operating expenses increased to $1,093 million from $1,059 million reported in the year-ago period. Our estimate for the same was pinned at $1,064.5 million.

Average lease operating costs were 12 cents per Mcfe, up 20% from 10 cents recorded in the year-ago period. The gathering and compression costs were 76 cents per Mcfe, 7% higher than the prior-year recorded number.

Transportation expenses rose 5% year over year to 58 cents per Mcfe, while processing costs increased 5% to 91 cents per Mcfe.

Capex & Financials

In the second quarter, Antero Resources spent $171 million on drilling and completion operations. As of June 30, 2025, it had no cash and cash equivalents. The company also had a long-term debt of $1.1 billion.

Outlook

Antero Resources has raised its production guidance for the year to 3.4-3.45 Bcfe/d from 3.35-3.45 Bcfe/d. The company has reduced its full-year drilling and completion capital budget to $650-$675 million.

AR’s Zacks Rank & Key Picks

Currently, AR carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Venture Global Inc. VG, Galp Energia SGPS SA GLPEY and Enbridge, Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Venture Global is primarily involved in the production and export of liquefied natural gas, sourced from the abundant gas basins in North America. It is the second-largest exporter of natural gas in the United States. The company is well-positioned to capitalize on the rise in LNG demand, partly driven by the growth of data centers and the global shift toward lower-emission fuels.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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