Total Revenue (USD, thousands)

Total Operating Expenses (USD, thousands)

Operating Income (Loss) (USD, thousands)

Interest Expense, Net (USD, thousands)

Equity in Earnings of Unconsolidated Affiliate (USD, thousands)

Total Other Expense (USD, thousands)

Income (Loss) Before Income Taxes (USD, thousands)

Income Tax (Expense) Benefit (USD, thousands)

Net Income (Loss) and Comprehensive Income (Loss) Including Noncontrolling Interests (USD, thousands)

Less: Net Income (Loss) and Comprehensive Income (Loss) Attributable to Noncontrolling Interests (USD, thousands)

Net Income (Loss) and Comprehensive Income (Loss) Attributable to Antero Resources Corporation (USD, thousands)

2e1174808701c821d601ff10fd7fdde22205faa16c553164c907352d15ab3e9d

The noticeable drop in total assets in Q4 2024 was driven by several key factors. **Property and equipment, net** saw a decline due to increased depletion, depreciation, and amortization. Additionally, there was a reduction in the value of **operating leases right-of-use assets**, a significant decrease in **derivative instruments**, and a drop in **other current assets**. These reductions combined to lower the overall total assets significantly during the period.  **[20250212LA18150:8]** 

Why did Total assets drop so noticeably in Q4 2024?

The **increase in Long-term debt** in Q3 2024 was primarily driven by a **rise in borrowings under the Credit Facility**, which increased from **$417,200 thousand** at the end of 2023 to **$526,700 thousand** in Q3 2024, contributing to a net increase of **$84,720 thousand**. This change in borrowings indicates the company’s need for additional liquidity during that period.  **[0001558370-24-013956_ar-20240930x10q.htm:15]** **[0001104659-24-112650_tm2427082d2_ex99-1.htm:6]** 

What drove the increase in Long-term debt in Q3 2024?

The spike in **Derivative instruments - current liabilities** in Q4 2024 is primarily due to the **mark-to-market adjustments** of the derivative instruments. These adjustments reflect changes in market prices and are recorded in the statements of operations and comprehensive income, resulting in increased reported liabilities despite not affecting cash flows until settlement. Additionally, an increased **net derivatives liability** (rising from **$37 million** in 2023 to **$47 million** in 2024) contributed to this spike.  **[20250212LA18150:8]** **[0001104659-25-012276_tm256297d1_ex99-1.htm:11]** **[0001558370-25-000864_ar-20241231x10k.htm:128]** **[0001558370-25-000864_ar-20241231x10k.htm:106]** 

Why did Derivative instruments - current liabilities spike in Q4 2024?

5cf2d2853eaf490fb3240c3d3b19fc138a55c7ffd2bebea597045e8cf37e6b43

The documents show that **Q1 2022** had an operating cash flow of **$565,673 thousand** compared to **$261,610 thousand** in **Q1 2024**.  **[0001558370-22-006110_ar-20220331x10q.htm:6]** **[0001558370-24-005602_ar-20240331x10q.htm:6]**  Although the detailed explanation in the documents focuses on the decline from Q1 2023 to Q1 2024, many of the same factors likely contributed to the lower cash flow in Q1 2024 relative to Q1 2022. Specifically, **lower natural gas prices**, **unfavorable working capital changes** (including increases in current assets and liabilities), and **higher operational costs**—such as increased gathering, compression, processing, and transportation expenses—have all negatively impacted the cash flows.  **[0001558370-24-005602_ar-20240331x10q.htm:44]** **[0001104659-24-051278_tm2412583d1_ex99-1.htm:2]** **[20240424LA96719:7]** **[20240424LA96719:10]**  Additionally, Q1 2024 did not include a significant one-time positive factor (a derivative monetization payment) that had boosted previous periods. These factors collectively help explain why operating cash flow in Q1 2024 was much lower than in Q1 2022.

Why was Operating Cash Flow in Q1 2024 much lower than in Q1 2022?

The dramatic swing to positive free cash flow in FY 2024 can be attributed to a significant reduction in capital expenditures. In FY 2024, the company notably completed fewer wells (declining from **70 to 41 wells**), reduced its drilling activity due to a lower rig count, and scaled back leasing activities. These factors contributed to a lower net cash outflow in investing activities, which in turn helped drive the improvement in free cash flow.  **[0001558370-25-000864_ar-20241231x10k.htm:100]** 

What factors contributed to the dramatic swing to positive Free Cash Flow in FY 2024?

The documents do not provide a definitive explanation for the significant increase in **Free Cash Flow** in Q4 2024 compared to Q4 2023. However, they do explain that the **net cash used in investing activities** decreased significantly—primarily driven by **lower well completions, decreased drilling activity due to a lower rig count, decreased leasing activity, and lower drilling and completion costs**. If these factors contributed to reducing capital expenditures, they might have indirectly supported a higher free cash flow, though the documents do not explicitly connect these changes to free cash flow.  **[0001558370-25-000864_ar-20241231x10k.htm:100]** **[0001104659-25-012276_tm256297d1_ex99-1.htm:13]** 

Why did Free Cash Flow in Q4 2024 increase significantly compared to Q4 2023?

bcf544277a7efd54d387ad653cb4797b9554117f51a1342f020b92d5725a96a7

a5ab9bbe32e9ac820cdb7c9d42ecedf26411b20789257f46eb344f355fbfe7e6

8e13628d6aa46c5f2d26e2e68dade8e883f71b38090243c74ebb921effbfb2a9

7599fb4fa6a6f288b31d7ae5829e6175f837be26dbef46483d1a5fab6ef35e1f

43c50a4b64ef49cc5acd98d11f83a1076eed82f5536d9dd4574c1369731e61b4

98b0a0e4c980d51f56713784969e7ca9092688e67201e296c54cc71dc8625337

fdf6be4e1dbe5edbce81d803cce48ad7c24bc6e9ab39ae89550c02cb1b1f8109

ANTERO RESOURCES (AR)

Financials