Antero Resources Corporation AR rose 3.8% despite reporting lower-than-expected earnings on Oct. 29. This signifies rising natural gas demand backed by power-hungry data centers and increasing LNG export.
The leading natural gas producer reported third-quarter 2025 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 22 cents. The bottom line, however, improved from the year-ago quarter’s adjusted loss of 12 cents.
Total quarterly revenues of $1,213.99 million beat the Zacks Consensus Estimate of $1,183.64 million. The top line also increased from the year-ago figure of $1,055.9 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.
We are now approaching the end of the earnings season, with energy giants like Exxon Mobil Corporation XOM and Chevron Corporation CVX already having reported. Both ExxonMobil and Chevron topped the Zacks Consensus Estimate for earnings. For more details, read our blogs: ExxonMobil Beats Q3 Earnings Estimates, Boosts Dividend Again & Chevron Q3 Earnings Beat Estimates as Production Hits Record.
Overall Production
Total production in the third quarter was 315 billion cubic feet equivalent (Bcfe), an increase from 313 Bcfe recorded a year ago. The figure beat our estimate of 314 Bcfe.
Natural gas production (accounting for 64% of the total production) was 202 Bcf, up 1% from 200 Bcf recorded a year ago. Our estimate for the same was pinned at 203 Bcf.
Oil production in the quarter amounted to 619 thousand barrels (MBbls), down 28% from 856 MBbls registered in the year-ago period. Our estimate for the same was pegged at 847 MBbls.
Antero Resources reported production of 7,808 MBbls of C2 Ethane, an increase of 7% from the year-ago quarter’s recorded figure of 7,302 MBbls. Also, the company’s production of 10,495 MBbls of C3+ NGLs was 3% lower than the 10,793 MBbls reported a year ago.
Realized Prices (Excluding Derivative Settlements)
Weighted natural-gas-equivalent price realization in the quarter was $3.59 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $3.14.
Realized prices for natural gas increased 46% to $3.12 per Mcf from $2.13 recorded a year ago.
The company’s oil price realization in the quarter was $50.65 per barrel (Bbl), lower than $61.59 a year ago.
The realized price for C3+ NGLs declined to $36.60 per Bbl from $41.30 reported a year ago. However, the realized price for C2 Ethane increased to $11.05 per Bbl from $8.01.
Operating Expenses
Total operating expenses increased to $1,095.9 million from $1,080.9 million in the year-ago period.
Average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents recorded in the year-ago quarter. The gathering and compression costs were 73 cents per Mcfe, 1% higher than the prior-year recorded number.
Transportation expenses rose 3% year over year to 60 cents per Mcfe, while processing costs increased 5% to 92 cents per Mcfe.
Capex & Financials
In the third quarter, Antero Resources spent $172 million on drilling and completion operations. As of June 30, 2025. The company had a long-term debt of $1.3 billion.
Outlook
Antero Resources’ production guidance for 2025 is in the band of 3.4-3.45 Bcfe/d. The company, currently carrying a Zacks Rank #4 (Sell), projects its full-year drilling and completion capital budget at $650 million to $675 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Antero Resources Corporation (AR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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