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Antero Resources Stock Gains 4% Despite Q3 Earnings Miss

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Key Takeaways

  • Antero Resources rose 3.8% despite Q3 earnings missing estimates on Oct. 29.
  • Higher gas prices and production helped offset lower oil output and higher expenses.
  • Q3 revenue beat forecasts as natural gas demand climbed amid data center and LNG growth.

Antero Resources Corporation (AR - Free Report)  rose 3.8% despite reporting lower-than-expected earnings on Oct. 29. This signifies rising natural gas demand backed by power-hungry data centers and increasing LNG export.

The leading natural gas producer reported third-quarter 2025 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 22 cents. The bottom line, however, improved from the year-ago quarter’s adjusted loss of 12 cents.

Total quarterly revenues of $1,213.99 million beat the Zacks Consensus Estimate of $1,183.64 million. The top line also increased from the year-ago figure of $1,055.9 million.

The weaker-than-expected quarterly earnings can be primarily attributed to a decline in oil production and higher operating expenses. However, higher gas-equivalent price realization and increased natural gas production partially offset the negatives.

We are now approaching the end of the earnings season, with energy giants like Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) already having reported. Both ExxonMobil and Chevron topped the Zacks Consensus Estimate for earnings. For more details, read our blogs: ExxonMobil Beats Q3 Earnings Estimates, Boosts Dividend Again & Chevron Q3 Earnings Beat Estimates as Production Hits Record.

Overall Production

Total production in the third quarter was 315 billion cubic feet equivalent (Bcfe), an increase from 313 Bcfe recorded a year ago. The figure beat our estimate of 314 Bcfe.

Natural gas production (accounting for 64% of the total production) was 202 Bcf, up 1% from 200 Bcf recorded a year ago. Our estimate for the same was pinned at 203 Bcf.

Oil production in the quarter amounted to 619 thousand barrels (MBbls), down 28% from 856 MBbls registered in the year-ago period. Our estimate for the same was pegged at 847 MBbls.

Antero Resources reported production of 7,808 MBbls of C2 Ethane, an increase of 7% from the year-ago quarter’s recorded figure of 7,302 MBbls. Also, the company’s production of 10,495 MBbls of C3+ NGLs was 3% lower than the 10,793 MBbls reported a year ago.

Realized Prices (Excluding Derivative Settlements)

Weighted natural-gas-equivalent price realization in the quarter was $3.59 per thousand cubic feet equivalent (Mcfe), higher than the year-ago figure of $3.14.

Realized prices for natural gas increased 46% to $3.12 per Mcf from $2.13 recorded a year ago.

The company’s oil price realization in the quarter was $50.65 per barrel (Bbl), lower than $61.59 a year ago.

The realized price for C3+ NGLs declined to $36.60 per Bbl from $41.30 reported a year ago. However, the realized price for C2 Ethane increased to $11.05 per Bbl from $8.01.

Operating Expenses

Total operating expenses increased to $1,095.9 million from $1,080.9 million in the year-ago period.

Average lease operating costs were 10 cents per Mcfe, up 11% from 9 cents recorded in the year-ago quarter. The gathering and compression costs were 73 cents per Mcfe, 1% higher than the prior-year recorded number.

Transportation expenses rose 3% year over year to 60 cents per Mcfe, while processing costs increased 5% to 92 cents per Mcfe.

Capex & Financials

In the third quarter, Antero Resources spent $172 million on drilling and completion operations. As of June 30, 2025. The company had a long-term debt of $1.3 billion.

Outlook

Antero Resources’ production guidance for 2025 is in the band of 3.4-3.45 Bcfe/d. The company, currently carrying a Zacks Rank #4 (Sell), projects its full-year drilling and completion capital budget at $650 million to $675 million. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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