Antero Resources Corporation AR reported fourth-quarter 2024 adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 26 cents. The bottom line increased from the year-ago reported figure of 22 cents.

Total quarterly revenues of $1,169 million missed the Zacks Consensus Estimate of $1,173 million. The top line decreased from the year-ago figure of $1,194 million.

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The strong quarterly earnings can be attributed to an increase in total gas equivalent production volumes and higher commodity price realizations.

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 316 billion cubic feet equivalent (Bcfe), higher than 315 Bcfe recorded a year ago. Our estimate for the same was pinned at 310 Bcfe.

Natural gas production (accounting for 62% of the total production) was 196 Bcf, down 7% from 210 Bcf recorded a year ago. The figure was below our estimate of 201 Bcf.

Oil production in the quarter amounted to 850 thousand barrels (MBbls), down 26% from 1,154 MBbls registered in the year-ago period. Our estimate for the same was pegged at 1,083 MBbls.

Antero Resources reported production of 8,518 MBbls of C2 Ethane, up 58% from 5,406 MBbls recorded a year ago. Our estimate for the same was pinned at 6,571 MBbls.

The company’s production of 10,563 MBbls of C3+ NGLs was 3% lower than 10,918 MBbls reported a year ago. The figure came in higher than our estimate of 10,534 MBbls.

Realized Prices (Excluding Derivative Settlements)

Weighted natural-gas-equivalent price realization in the quarter was $3.64 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $3.52. The reported figure was above our estimate of $3.47.

Realized prices for natural gas increased 2% to $2.77 per Mcf from $2.72 recorded a year ago. Our estimate for the same was pinned at $2.62 per Mcf.

The company’s oil price realization in the quarter was $57.80 per barrel (Bbl), lower than $64.77 registered a year ago. The figure was below our estimate of $59.54 per Bbl.

The realized price for C3+ NGLs increased to $44.29 per Bbl from $37.72 reported a year ago. The figure was above our estimate of $41.41 per Bbl.

The realized price for C2 Ethane increased to $10.31 per Bbl from $9.13 recorded a year ago. The figure was above our estimate of $10.23 per Bbl.

Operating Expenses

Total operating expenses increased to $1,110 million from $1,055 million reported in the year-ago period. Our estimate for the same was pinned at $1,071 million.

Average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents recorded in the year-ago period. The gathering and compression costs were 71 cents per Mcfe, 3% higher than the prior-year recorded number.

Transportation expenses declined 3% year over year to 60 cents per Mcfe, while processing costs increased 8% to 85 cents per Mcfe.

Capex & Financials

In the fourth quarter, Antero Resources spent $120 million on drilling and completion operations. As of Dec. 31, 2024, it had no cash and cash equivalents. The company had a long-term debt of $1.49 billion as of the same date.

Guidance

For 2025, Antero Resources expects its drilling and completion capital budget to be in the range of $650-$700 million. The company estimates production to be in the band of 3.35-3.45 Bcfe per day, driven by higher liquid volumes.

AR’s Zacks Rank and Key Picks

Currently, AR carries a Zacks Rank #4 (Sell).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, NextDecade Corporation NEXT and Range Resources Corporation RRC. While SM Energy and NextDecade presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, NextDecade’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, the company is well-positioned to tap into the increasing export demand from the United States.

Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas' role as a cleaner-burning fuel amid a low-carbon shift. 

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