It has been about a month since the last earnings report for Antero Resources (AR). Shares have lost about 8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Antero Resources due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Antero Resources Corporation before we dive into how investors and analysts have reacted as of late.
Antero Resources Q2 Earnings Miss Estimates, Revenues Top
Antero Resources 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.
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.
How Have Estimates Been Moving Since Then?
Investors have witnessed a downward trend in estimates review over the past two months.
VGM Scores
Currently, Antero Resources has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Antero Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Antero Resources is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Matador Resources (MTDR), a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended June 2025 more than a month ago.
Matador reported revenues of $895.31 million in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $1.53 for the same period compares with $2.05 a year ago.
For the current quarter, Matador is expected to post earnings of $1.42 per share, indicating a change of -24.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -9.5% over the last 30 days.
Matador has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Antero Resources Corporation (AR): Free Stock Analysis Report Matador Resources Company (MTDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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