Antero Resources Raises Production Guidance as Cash Costs Decline
The natural gas producer reported adjusted EBITDAX of $595 million for the second quarter.
Antero Resources (AR) reported a record level of net production for the second quarter, reaching over 4.1 Bcfe/d. The natural gas producer saw a 21% increase in production compared to the same period last year.
Adjusted EBITDAX rose 57% year-over-year to $595 million. The growth occurred despite a 16% decline in Henry Hub natural gas prices over the same period. Adjusted free cash flow before changes in working capital increased 41% year-over-year to $220 million.
The company reduced total cash operating costs 11% year-over-year to $2.38 per Mcfe. Cash production expense for the quarter was $2.22 per Mcfe, down from $2.48 per Mcfe in the second quarter of 2024.
Antero increased its full-year 2024 production guidance to a range of 4.15 to 4.2 Bcfe/d from a previous average of approximately 4.1 Bcfe/d. The company decreased full-year 2024 cash production expense guidance to a range of $2.20 to $2.30 per Mcfe.
Guidance for the realized natural gas price premium to NYMEX was lowered to a range of $0.05 to $0.15 per Mcfe. Conversely, the C2 NGL realized price premium to Mont Belvieu guidance was increased to $2.50 to $3.00 per Bbl.
In July 2024, the company completed $315 million of strategic acquisitions, which added 125 MMcfe/d of net production and 15 net drilling locations. Antero also dissolved the Martica override entity in the second quarter, which is expected to result in a $60 million increase in annualized future cash flow starting in the third quarter.
Antero launched a cash cost reduction initiative in June 2024 that targets a $0.70 per Mcfe reduction from 2023 levels by the end of 2028. During the second quarter, the company purchased 1.1 million shares for approximately $38 million.