Antero Resources Q3 2026 Earnings: Production Hits Record

Antero Resources reported record production and sharply higher third-quarter earnings as lower cash costs and stronger liquids exposure supported margins despite lower natural gas prices.

For the three months ended Sept. 30, 2026, net income attributable to Antero rose to $359 million from $76.2 million a year earlier. Adjusted EBITDAX, a non-GAAP measure, nearly doubled to $633.9 million from $318.2 million.

Production reached about 4.2 Bcfe per day, up 23% year over year, even as the company curtailed more than 100 MMcfe per day. Antero said cash costs covering lease operating expenses, production and ad valorem taxes, and gathering, processing and transportation fell by $0.39 from the prior-year period to a company-record low of $2.05 per Mcfe.

The lower cost structure and Antero’s production mix helped increase unhedged adjusted EBITDAX margin by 27% year over year, or $0.69 per Mcfe, while the NYMEX Henry Hub benchmark declined to $2.95 per Mcf from $3.07. On a broader basis that also includes general and administrative and net marketing expenses, total cash costs fell by $0.42 per Mcfe.

Free cash flow and capital returns

Adjusted free cash flow increased to $215.3 million from $90.9 million in the third quarter of 2025. Before changes in working capital, the measure rose to $212.2 million from $69.6 million. Net cash provided by operating activities was $575.2 million, compared with $310.1 million a year earlier, while capital expenditures increased to $360.4 million from $202.7 million.

Adjusted free cash flow per share grew 139% year over year. Antero repurchased 1.6 million shares for $56 million during the quarter, consistent with its stated approach of using free cash flow to reduce debt or return capital.

Net debt totaled $2.78 billion at Sept. 30, up from $1.19 billion at the end of 2025. The September balance included $451 million of commercial paper, a $1 billion term loan, $600 million of senior notes due in 2030 and $750 million of senior notes due in 2036.

Liquids mix supports revenue

Antero highlighted the contribution from higher-value components of its natural gas liquids barrel. Propane represented 57% of projected 2026 C3+ NGL volume but 43% of third-quarter C3+ revenue. Normal butane, isobutane and pentanes together accounted for about 43% of volume and approximately 57% of revenue.

Third-quarter prices were about $32 per barrel for propane, $47 for normal butane, $55 for isobutane and $79 for pentanes. The benchmark value of Antero’s C3+ barrel increased to $44.48 from $36.82 in the prior-year quarter. The company’s previously announced 2026 guidance calls for C3+ NGL production of 125,000 barrels per day.

Management also pointed to record U.S. butane exports, propane inventories returning to their five-year range and planned growth in the global fleet of very large gas carriers. These market indicators remain subject to changes in export demand, shipping capacity and commodity prices.

Fourth-quarter outlook

For the fourth quarter of 2026, Antero expects net production of 4.3 Bcfe per day. The company projects its realized natural gas price at a discount of $0.15 to $0.25 per Mcf to NYMEX and forecasts cash production expenses of $2.10 to $2.20 per Mcfe.

Accrual-based drilling and completion capital expenditures are expected to range from $325 million to $350 million. The expense forecast reflects the company’s current expectations for utilization of its firm transportation portfolio based on strip pricing, with actual utilization dependent on regional basis prices.

Antero is targeting $300 million of annual EBITDAX margin enhancements by the end of 2028 relative to 2025 results. The initiatives include overriding royalty interest changes, natural gas and liquids transportation optimization, a volumetric production payment and dry-gas development.

As of July 29, Antero had hedged about 62% of forecast 2026 natural gas production and 37% of forecast 2027 production through swaps and collars. The company said its financial priorities include maximizing free cash flow, reducing debt or returning capital, and hedging opportunistically.

The outlook remains exposed to commodity-price volatility, inflation, transportation and marketing conditions, drilling and completion risks, supply-chain disruptions, regulatory changes and geopolitical events. Antero also cautioned that projected production, costs, capital spending and margin initiatives may differ materially from actual results.