Antero Resources Profit Jumps on Record Production and Lower Costs

Antero Resources nearly quintupled its third-quarter profit on Wednesday as record production and a sharply lower cost structure lifted margins, even though natural gas prices fell from a year earlier.

The natural gas and natural gas liquids producer reported net income of $367 million, or $1.19 a diluted share, up from $76.2 million, or $0.24, a year earlier, according to its earnings release filed with an 8-K on Wednesday. Adjusted net income rose to $256 million from $48.2 million.

Record output, lower costs

Net production averaged a company record of more than 4.2 Bcfe per day, up 23% from a year earlier, including 222,000 barrels per day of liquids. Antero said it curtailed about 10 Bcfe of production during the quarter.

Total cash operating costs fell to $2.05 per Mcfe from $2.44, below the low end of the company's guidance range. CFO Brendan Krueger said that drove a 27% improvement in the unhedged EBITDAX margin to $1.28 per Mcfe from $1.01, "despite NYMEX natural gas prices declining 4%."

Adjusted EBITDAX rose 99% to $634 million. Operating cash flow was $575 million, and adjusted free cash flow increased 137% to $215 million. Total revenue grew 29% to about $1.56 billion.

"It has been a remarkable year for Antero," CEO Michael Kennedy said in the release, noting the company cut its cost structure by about $0.40 per Mcfe over the past 12 months while reducing its share count by more than 5 million shares and keeping leverage at about 1.0 times.

Margin enhancement push

Antero said it expects to capture $140 million of its $300 million margin enhancement target by mid-2027. That includes $50 million from optimizing its firm transportation portfolio, $60 million from the reversion of an overriding royalty interest sold in 2020 and $30 million from the Aug. 1, 2027, expiration of a volumetric production payment.

During the quarter it optimized about 400 million cubic feet per day of firm transportation and plans a formal process in the fourth quarter targeting more than 1 Bcf per day. It also signed 265 million cubic feet per day of supply contracts tied to in-basin demand at Clarington, Ohio.

Fourth-quarter guidance

Antero expects fourth-quarter production of about 4.3 Bcfe per day, reflecting an estimated 15 to 20 Bcfe of curtailments driven by low regional pricing. It guided to cash production expense of $2.10 to $2.20 per Mcfe and drilling and completion capital of $325 million to $350 million, as it targets a $1.2 billion budget for 2026.

The company said that plan is expected to result in high single-digit production growth in 2027.

Buybacks and balance sheet

Antero repurchased 1.6 million shares for about $56 million in the quarter, at a weighted average price of $34.15, and has about $821 million of capacity left under its program. Net debt stood at $2.78 billion at Sept. 30, up from $1.31 billion a year earlier.

Sources

1. Antero Resources Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001104659-26-119693)

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