Antero Resources Q4 Earnings Miss Estimates, Revenues Increase Y/Y

Antero Resources AR, a leading natural gas producer, reported fourth-quarter 2025 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 52 cents. The bottom line also declined from the year-ago quarter’s level of 58 cents.

Total quarterly revenues of $1,412 million beat the Zacks Consensus Estimate of $1,309 million. The top line increased from the year-ago figure of $1,169 million.

The weak quarterly earnings can be attributed to a decline in oil production and higher operating expenses. Higher 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 fourth quarter was 323 billion cubic feet equivalent (Bcfe), an increase from 316 Bcfe recorded a year ago. The figure beat our estimate of 319 Bcfe.

Natural gas production (accounting for 64% of the total production) was 208 Bcf, up 6% from 196 Bcf recorded a year ago. Our estimate for the same was pinned at 210 Bcf.

Oil production in the fourth quarter amounted to 756 thousand barrels (MBbls), down 11% from 850 MBbls registered in the year-ago period. Our estimate for the same was pegged at 841 MBbls.

Antero Resources reported production of 7,668 MBbls of C2 Ethane, marking a decrease of 10% from the year-ago quarter’s recorded figure of 8,518 MBbls. Production of 10,678 MBbls of C3+ NGLs was 1% higher than 10,563 MBbls registered a year ago.

Realized Prices (Excluding Derivative Settlements)

Weighted natural-gas-equivalent price realization in the quarter was $3.97 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $3.64.

Realized prices for natural gas increased 34% to $3.71 per Mcf from $2.77 recorded a year ago.

The company’s oil price realization in the quarter was $45.99 per barrel (Bbl), lower than $57.80 a year ago.

The realized price for C3+ NGLs declined to $35.41 per Bbl from $44.29 reported a year ago. However, the realized price for C2 Ethane increased to $12.54 per Bbl from $10.31.

Operating Expenses

Total operating expenses increased to $1,122 million from $1,111 million in the year-ago period.

Average lease operating costs were 10 cents per Mcfe, flat year over year. The gathering and compression costs were 75 cents per Mcfe, 6% higher than the prior-year recorded number.

Transportation expenses rose 12% year over year to 67 cents per Mcfe, while processing costs increased 6% to 90 cents per Mcfe.

Capex & Financials

In the fourth quarter, Antero Resources spent $159 million on drilling and completion operations. As of Dec. 31, 2025, the company had a long-term debt of $1.4 billion.

Outlook

Antero Resources expects production in the first quarter of 2026 to average 3.8 Bcfe/d. For 2026, net production is expected to come in at 4.1 Bcfe/d. The company expects modest production increases from the second quarter, owing to HG Energy’s contributions. AR’s drilling and completion capital for 2026 is expected to be $1 billion.

AR’s Zacks Rank and Key Picks

AR currently has a Zacks Rank #4 (Sell).

Some top-ranked stocks from the energy sector are Archrock Inc. AROC, Oceaneering International OII and W&T Offshore WTI. While Archrock sports a Zacks Rank #1 (Strong Buy), Oceaneering and W&T Offshore carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s recent acquisition of six shallow-water fields in the Gulf of America boosts its production prospects in the future, which is expected to enhance its revenues.  

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

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