Antero Resources Reports Fourth Quarter Results, Announces 2022 Guidance and Return of Capital Program

DENVER, Feb. 16, 2022 /PRNewswire/ — Antero Resources Corporation (NYSE:AR)(“Antero Resources,” “Antero,” or the “Company”) today announced its fourth quarter 2021 financial and operating results, year end  2021 estimated proved reserves, as well as its 2022 capital budget and guidance. In addition, Antero announced targets for returning capital to shareholders. The relevant consolidated financial statements are included in Antero Resources’ Annual Report on Form 10-K for the year ended December 31, 2021. 

Fourth Quarter 2021 Highlights Include:

  • Net production averaged 3.2 Bcfe/d, including 160 MBbl/d of liquids
  • Realized pre-hedge natural gas equivalent price of $6.48 per Mcfe, a $0.65 per Mcfe premium to NYMEX pricing
  • Realized pre-hedge C3+ NGL price of $58.25 per barrel, or 75% of WTI, a 111% increase from the prior year period
  • Realized pre-hedge natural gas price of $5.89 per Mcf, a $0.06 per Mcf premium to NYMEX Henry Hub pricing
  • Net Income was $901 million, Adjusted Net Income was $157 million (Non-GAAP)
  • Adjusted EBITDAX was $420 million (Non-GAAP); net cash provided by operating activities was $475 million
  • Free Cash Flow was $237 million (Non-GAAP)
  • Total Debt and Net Debt at quarter end was $2.1 billion, an $875 million reduction from year end 2020 (Non-GAAP)
  • Net Debt to trailing last twelve month Adjusted EBITDAX declined to 1.3x (Non-GAAP)
  • Estimated proved reserves were 17.7 Tcfe at year end 2021 and proved developed reserves increased to 12.8 Tcfe (72% Proved Developed)
  • Estimated future development cost for 5.0 Tcfe of proved undeveloped reserves is $0.31 per Mcfe

Capital Return Program, 2022 Guidance and Other Highlights:

  • Targeting return of capital to shareholders of 25% to 50% of Free Cash Flow annually going forward
  • Initiated with a board-approved share repurchase program of up to $1.0 billion
  • Announced plans to redeem all remaining Senior Notes due 2025 on March 1, 2022
  • Drilling and completion capital budget is $675 to $700 million
  • Net production is expected to average 3.2 to 3.3 Bcfe/d, including 175 to 185 MBbl/d of liquids (NGLs and oil)
  • Expanded 2025 Net Zero emissions target to include Scope 2 emissions
  • Received Responsibly Sourced Gas certification following completion of initial Project Canary Pilot

Paul Rady, Chairman, President and Chief Executive Officer of Antero Resources commented, “This past year proved to be an important inflection point for Antero as we shifted to a maintenance capital program and generated approximately $850 million of Free Cash Flow. This substantial Free Cash Flow was used to reduce debt during the year, driving leverage down to 1.3x as of December 31, 2021. Looking ahead to 2022, our capital budget reflects another year of maintenance capital that is projected to generate $1.5 to $1.7 billion in Free Cash Flow based on current commodity prices. This Free Cash Flow outlook allows us to continue to reduce debt while also returning substantial capital to our shareholders.” 

Michael Kennedy, Chief Financial Officer of Antero Resources said, “The dramatic reduction in our absolute debt, below $2.0 billion in the first quarter of 2022, enables us to initiate a return of capital program. Going forward we will target returning 25% to 50% of Free Cash Flow annually to our shareholders, beginning with the $1.0 billion share repurchase program that is effective immediately. This plan puts Antero in the unique position of reducing leverage below 1.0x in 2022 while maintaining a peer-leading return of capital profile.”

Project Canary Natural Gas Certification

The pilot project to certify environmental performance of multiple pads with Project Canary was completed in early 2022. This rigorous independent assessment and certification process evaluated the engineering, operational and environmental standards that Antero employs in its operations. The certification confirms Antero’s strong operational and environmental performance and supports the Company’s continuous improvement and ESG goals, which was expanded to include targeting Net Zero Scope 2 emissions by 2025.

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About Project Canary

Project Canary is a SaaS-based data analytics company focused on accurate corporate climate ESG data for emission-intensive industrial companies. We are the leaders in holistic environmental assessments (air, water, land, and community). Project Canary scores responsible operations, delivering independent emission profiles via high-fidelity continuous monitoring technology to provide actionable environmental performance data. Our sensor portfolio includes high-fidelity spectroscopy-based methane detection and emissions quantification for the oil and gas sectors, plus Aeris Technologies’ laser-based gas analyzers covering other emissions, including ethane, nitrous oxide, formaldehyde, ethylene oxide, benzene, and more. Formed as a Public Benefit Corporation, Project Canary’s Denver-based team of scientists, engineers, and seasoned industry operators identify and quantify areas to reduce emissions.

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