Should You Consider Adding Antero Resources Corporation (AR) to Your Portfolio?

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Large Cap Growth Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The US equity market regained its strength following an early volatility, with the S&P 500 Index rising 10.94% during the period. In this environment, Aristotle Atlantic’s Large Cap Growth Strategy delivered -18.63% gross of fees (18.45% net of fees), outperforming the Russell 1000 Growth Index’s17.84% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Aristotle Atlantic Large Cap Growth Strategy highlighted stocks such as Antero Resources Corporation (NYSE:AR). Headquartered in Denver, Colorado, Antero Resources Corporation (NYSE:AR) is an oil and natural gas development and exploration company. On July 31, 2025, Antero Resources Corporation (NYSE:AR) stock closed at $34.93 per share. One-month return of Antero Resources Corporation (NYSE:AR) was -6.25%, and its shares gained 31.81% of their value over the last 52 weeks. Antero Resources Corporation (NYSE:AR) has a market capitalization of $10.791 billion.

Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Antero Resources Corporation (NYSE:AR) in its second quarter 2025 investor letter:

"Antero Resources Corporation (NYSE:AR) is engaged in the development, production, exploration and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. Operating entirely within the U.S., Colorado-based Antero Resources holds approximately 502,000 net acres of oil and gas properties in Ohio and West Virginia. Antero Resources intends to leverage its team’s experience delineating and developing natural gas resource plays to continue developing its reserves and production, primarily on the company’s existing multi-year project inventory.

Antero Resources is among the largest U.S. natural gas producers, benefiting from constrained supply growth and increasing long-term demand driven by coal-to-gas switching, power generation for AI datacenters, and liquefied natural gas (LNG) imports to Europe and Asia. It is also one of the largest producers of NGLs in the U.S., which are experiencing heightened global demand due to petrochemical uses and energy security needs. The company's strong transportation portfolio ensures price stability, premium pricing and reliable production flow. With over 20 years of premium drilling inventory in the Marcellus and Utica shales, the company is poised for attractive free cash flow (FCF) generation, 50% of which is planned to be returned to shareholders through buybacks. Since 2019, it has reduced debt by $2.3 billion, achieved an investment-grade credit rating with a 1.5x leverage ratio and now possesses a robust financial position, providing a defensive edge amid global economic risks. We continue to see a structural shift in demand for natural gas and NGLs supporting prices at these levels or higher, leading to attractive FCF growth for Antero Resources."

Antero Resources Corporation (NYSE:AR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 67 hedge fund portfolios held Antero Resources Corporation (NYSE:AR) at the end of the first quarter, which was 66 in the previous quarter. While we acknowledge the potential of Antero Resources Corporation (NYSE:AR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Antero Resources Corporation (NYSE:AR) and shared the list of best large cap energy stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.