Antero Q3 profit rises to $367 million as output sets company record

Antero Resources Corporation said on Oct. 28 that it earned $367 million, or $1.19 per diluted share, in the third quarter of 2026, up from $76 million a year earlier.

Revenue was $1.56 billion, up 29% from $1.21 billion a year earlier. Net daily production averaged 4.2 Bcfe/d, or billion cubic feet equivalent per day, a 23% increase and a company record, the company said in a press release.

Here's how the company did:

• Diluted EPS: $1.19 vs. 24 cents a year earlier
• Revenue: $1.56 billion vs. $1.21 billion a year earlier
• Adjusted Net Income: $256 million vs. $48 million a year earlier
• Adjusted EBITDAX: $634 million vs. $318 million a year earlier

Adjusted Net Income is a non-GAAP measure that excludes items such as unrealized commodity derivative gains.

Cash costs and margins

Cash production expense fell to $2.05 per Mcfe from $2.44 per Mcfe in the third quarter of 2025, a decrease of $0.39 per Mcfe. The company said the decline reflects the integration of HG Energy and the optimization of firm transportation agreements.

The unhedged EBITDAX margin rose 27% to $1.28 per Mcfe from $1.01 per Mcfe a year earlier. The average realized natural gas price before hedges was $2.63 per Mcf, down from $3.12 per Mcf a year earlier.

CFO Brendan Krueger said, “In just the first year of our margin enhancement initiative, we have made substantial progress.”

Adjusted Free Cash Flow was $215 million, up 137% from a year earlier.

Antero expects to achieve $140 million of its $300 million margin enhancement target by mid-2027. That includes $50 million from firm transportation optimization, $60 million from the reversion of the Overriding Royalty Interest and $30 million from the expiration of the Volumetric Production Payment.

The company also entered into 265 MMcf/d of supply contracts tied to growing in-basin demand at Clarington, Ohio.

2026 guidance

The company expects fourth quarter 2026 production of about 4.3 Bcfe/d, reflecting an estimated 15 to 20 Bcfe of curtailments driven by low regional pricing.

Cash production expense is expected to be $2.10 to $2.20 per Mcfe in the fourth quarter. The natural gas realized price differential to NYMEX is expected to be $(0.15) to $(0.25) per Mcf.

Drilling and completion capital expenditures are expected to be $325 million to $350 million in the fourth quarter. The company is targeting a $1.2 billion drilling and completion capital budget for 2026 and expects high single digit production growth in 2027.

CEO and President Michael Kennedy said, “It has been a remarkable year for Antero.” He added, “We believe our business strategy of product diversity, reduced cost structure and prudent hedging will decrease earnings volatility and drive peer-leading Free Cash Flow per share growth.”

Share repurchases and debt

During the quarter, Antero bought 1.6 million shares for about $56 million, at an average of $34.15 per share. It has about $821 million of capacity left under its repurchase program and expects to keep buying opportunistically.

Total debt was $2.78 billion at Sept. 30, 2026, up from $1.31 billion a year earlier, according to the net debt table in the release.

In July, as previously disclosed, Antero acquired properties in its West Virginia development footprint for approximately $315 million.

The company scheduled a conference call for Oct. 29, 2026 at 9 a.m. MT.