Antero Resources Q1 Earnings Miss Estimates on Lower Production

Antero Resources Corporation AR reported first-quarter 2025 adjusted earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 90 cents. The bottom line increased from the year-ago reported figure of 7 cents.

Total quarterly revenues of $1,353 million missed the Zacks Consensus Estimate of $1,399 million. The top line increased from the year-ago figure of $1,122 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Weaker-than-expected quarterly results can be attributed to a decline in natural gas production and higher operating expenses. However, higher natural-gas-equivalent price realization 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 first quarter was 306 billion cubic feet equivalent (Bcfe), lower than 312 Bcfe recorded a year ago. Our estimate for the same was pinned at 302 Bcfe.

Natural gas production (accounting for 64% of the total production) was 195 Bcf, down 3% from 202 Bcf recorded a year ago. The figure also came in below our estimate of 201 Bcf.

Oil production in the quarter amounted to 852 thousand barrels (MBbls), down 18% from 1,035 MBbls registered in the year-ago period. Our estimate for the same was pegged at 1,008 MBbls.

Antero Resources reported production of 7,442 MBbls of C2 Ethane, up 10% from 6,760 MBbls recorded a year ago. Our estimate for the same was pinned at 5,761 MBbls.

The company’s production of 10,229 MBbls of C3+ NGLs was 3% lower than 10,564 MBbls reported a year ago. The reported figure came in higher than our estimate of 10,122 MBbls.

Realized Prices (Excluding Derivative Settlements)

Weighted natural-gas-equivalent price realization in the quarter was $4.55 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $3.39. The reported figure was below our estimate of $5.24.

Realized prices for natural gas increased 71% to $4.01 per Mcf from $2.35 recorded a year ago. Our estimate for the same was pinned at $4.40 per Mcf.

The company’s oil price realization in the quarter was $59.08 per barrel (Bbl), lower than $62.53 registered a year ago. The figure came in higher than our estimate of $57.60 per Bbl.

The realized price for C3+ NGLs increased to $45.65 per Bbl from $43.05 reported a year ago. The figure was above our estimate of $39.04 per Bbl.

The realized price for C2 Ethane increased to $12.70 per Bbl from $9.32 recorded a year ago. The figure was above our estimate of $8.55 per Bbl.

Operating Expenses

Total operating expenses increased to $1,081 million from $1,075 million reported in the year-ago period. Our estimate for the same was pinned at $1,107 million.

Average lease operating costs were 11 cents per Mcfe, up 22% from 9 cents recorded in the year-ago period. The gathering and compression costs were 77 cents per Mcfe, 7% higher than the prior-year recorded number.

Transportation expenses rose 5% year over year to 65 cents per Mcfe, while processing costs increased 4% to 85 cents per Mcfe.

Capex & Financials

In the first quarter, Antero Resources spent $157 million on drilling and completion operations. As of March 31, 2025, it had no cash and cash equivalents. The company had a long-term debt of $1.29 billion as of the same date.

AR’s Zacks Rank and Key Picks

AR currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan 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.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. It operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position it for growth in the long run.

Kinder Morgan is a leading midstream player with a stable and resilient business model in North America, largely driven by take-or-pay contracts. KMI’s stable business model shields it from commodity price volatility, resulting in predictable earnings and facilitating reliable capital returns to shareholders. In the first quarter of 2025, Kinder Morgan declared quarterly cash dividends of 29.25 cents per share, reflecting an approximately 2% increase from the prior-year level. 

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

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