second quarter 2026
Filed Jul 29, 2026Record production, lower cash costs and higher full-year 2026 production guidance
Net production reached a company record and exceeded guidance, Adjusted EBITDAX increased 57% from the prior-year period, cash production expense declined from the prior year, and the Company increased full-year production guidance while lowering cash production expense guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net daily natural gas equivalent productionother | 4.1 Bcfe/d | – | 21% |
| Average net production, combined natural gas equivalentother | 4,144 MMcfe/d | – | – |
| Average net production, natural gasother | 2,847 MMcf/d | – | – |
| Average net production, oilother | 8,330 Bbl/d | – | – |
| Average net production, C3+ NGLsother | 121,132 Bbl/d | – | – |
| Average net production, C2 NGLsother | 86,769 Bbl/d | – | – |
| Net incomeGAAP | $279 million | – | – |
| Adjusted Net Incomenon-GAAP | $236 million | – | – |
| Adjusted EBITDAXnon-GAAP | $595 million | – | 57% |
| Net cash provided by operating activitiesGAAP | $439 million | – | – |
| Adjusted Free Cash Flownon-GAAP | $92,690 | – | – |
| Adjusted Free Cash Flow before Changes in Working Capitalnon-GAAP | $220 million | – | 41% |
| Cash production expenseother | $2.22 per Mcfe | – | – |
| Total cash operating costsother | $2.38 per Mcfe | – | $0.29 per Mcfe, or 11% |
| Net marketing expenseother | $0.04 per Mcfe | – | – |
| Average realized natural gas price before settled derivativesother | $2.66 per Mcf | – | – |
| Average realized natural gas price after settled derivativesother | $3.18 per Mcf | – | – |
| Average realized oil price before settled derivativesother | $78.60 per Bbl | – | – |
| Average realized C3+ NGL price before settled derivativesother | $44.33 per Bbl | – | – |
| Average realized C2 NGL price before settled derivativesother | $12.54 per Bbl | – | – |
| Average realized combined natural gas equivalent price before settled derivativesother | $3.54 per Mcfe | – | – |
| Average realized combined natural gas equivalent price after settled derivativesother | $3.90 per Mcfe | – | – |
| Drilling and completion capital expendituresother | $297 million | – | – |
| Land investmentother | $29 million | – | – |
full year 2026 outlook
- NoteNet Daily Natural Gas Equivalent Production (Bcfe/d): 4.15 to 4.2 Bcfe/d
- NoteCash Production Expense ($/Mcfe): $2.20 to $2.30 per Mcfe
- NoteNatural Gas Realized Price Premium vs. NYMEX Henry Hub ($/Mcf): $0.05 to $0.15 per Mcfe
- NoteC2 NGL Realized Price Premium to Mont Belvieu ($/Bbl): $2.50 to $3.00 per Bbl
- NoteThird quarter production: 4.25 to 4.3 Bcfe/d
- NoteThird quarter 2026 curtailments: 5 Bcfe
- NoteFourth quarter production: 4.4 to 4.5 Bcfe/d
Capital returns
- Purchased 1.1 million shares for approximately $38 million during the quarter.
- Average weighted price of $34.25 per share.
- Approximately $880 million of capacity remaining under the share repurchase program.
What drove it
- The second quarter was the first full quarter following the acquisition of HG Energy.
- The Company said lower cash production expense versus the prior year reflected a full quarter of the HG Energy assets.
- Antero placed 26 Marcellus wells to sales, with an average lateral length of 13,323 feet.
- Twenty-one wells online for approximately 60 days averaged 25 MMcfe/d per well, including 975 Bbl/d of liquids per well assuming 25% ethane recovery.
- July acquisitions added approximately 125 MMcfe/d of net production, 3,500 net undeveloped acres and 15 net undeveloped locations.
- The Martica overriding royalty interests reverted to Antero after return thresholds were achieved in the second quarter of 2026.
- The cash cost reduction initiative targets a $0.70 per Mcfe reduction from full year 2025 to year end 2028 and an expected $0.35 per Mcfe improvement in EBITDAX margins.
Concerns
- Realized natural gas price premium to NYMEX guidance was decreased to $0.05 to $0.15 per Mcfe, primarily reflecting optimization of firm transportation arrangements.
- The Company forecast 5 Bcfe of curtailments in the third quarter of 2026.
- Henry Hub natural gas price declined 16% from the year ago period, according to the CFO.
- Adjusted Free Cash Flow was $92,690 after changes in working capital, compared with Adjusted Free Cash Flow before Changes in Working Capital of $220 million.
What to watch
- Delivery of third-quarter production guidance of 4.25 to 4.3 Bcfe/d and fourth-quarter production guidance of 4.4 to 4.5 Bcfe/d.
- Execution of HG Energy integration, firm transportation optimization and increased dry gas development under the cash cost reduction initiative.
- The expected $60 million increase in annualized cash flow and $0.04 per Mcfe margin uplift from the Martica override reversion beginning in the third quarter of 2026.
- Use of the approximately $880 million remaining share repurchase authorization.
- Integration and development of the approximately $315 million July property acquisitions.
Balance sheet and cash flow
- Net cash provided by operating activities was $439 million.
- Adjusted Free Cash Flow before changes in working capital was $220 million.
- Capital expenditures were $340,716 in the Adjusted Free Cash Flow reconciliation.
- Distributions to non-controlling interests in Martica were $7,346.
- Changes in Working Capital were $127,069.
- Antero acquired properties for approximately $315 million in July 2026.
- The dissolved Martica override entity is expected to result in a $60 million increase in annualized cash flow commencing in the third quarter of 2026.
Analysis
Antero reported a record production quarter, with net daily natural gas equivalent production of 4.1 Bcfe/d, up 21% from the year-ago period and above guidance. The quarter reflected the first full quarter following the HG Energy acquisition. The Company also completed approximately $315 million of strategic acquisitions in July that added approximately 125 MMcfe/d of net production and 15 net undeveloped locations, supporting the higher production outlook through year end.
Financial performance showed net income of $279 million, Adjusted Net Income of $236 million, and Adjusted EBITDAX of $595 million. Adjusted EBITDAX increased 57% from the prior-year period even as the CFO said Henry Hub natural gas price declined 16% from the year-ago period. Net cash provided by operating activities was $439 million, while Adjusted Free Cash Flow before changes in working capital was $220 million, up 41% from the year-ago period.
Cost performance was a central positive. Cash production expense was $2.22 per Mcfe, compared with $2.48 per Mcfe in the second quarter of 2025, and total cash operating costs were $2.38 per Mcfe, down $0.29 per Mcfe, or 11%, from the year-ago period. Management attributed the cash production expense reduction to a full quarter of HG Energy assets and expects further per-unit cost reductions from integration, transportation optimization and increased dry gas development.
The Company increased full-year 2026 production guidance to 4.15 to 4.2 Bcfe/d and lowered cash production expense guidance to $2.20 to $2.30 per Mcfe. The higher production outlook incorporates strong year-to-date performance and the July acquisitions, while the third-quarter forecast includes 5 Bcfe of curtailments. At the same time, Antero reduced its realized natural gas price premium to NYMEX guidance to $0.05 to $0.15 per Mcfe, which it attributed primarily to firm transportation optimization.
Capital allocation included the repurchase of 1.1 million shares for approximately $38 million at an average weighted price of $34.25 per share, leaving approximately $880 million of authorization. The Martica override reversion is expected to add $60 million of annualized cash flow, or a $0.04 per Mcfe margin uplift, commencing in the third quarter of 2026. Investors should focus on execution against the higher second-half production targets, realization of the expected Martica cash benefit, integration of acquired assets and delivery of the stated cost-reduction plan.
Management, verbatim
The second quarter of 2026 reflects the first full quarter following our acquisition of HG Energy. Our quarterly results highlight the substantial benefits from this transaction. Our production base increased by more than 20% from a year ago and our cost structure declined by over 10%.
Michael Kennedy, CEO and President of Antero Resources
Our improved competitive position provides us with great visibility and confidence in our Free Cash Flow, which supported the accelerated timing of our share repurchase program.
Michael Kennedy, CEO and President of Antero Resources
Our recently announced cost reduction initiative is expected to decrease our cost structure by $0.70 per Mcfe from 2025 levels, or 25% in total by year-end 2028.
Brendan Krueger, CFO of Antero Resources
Not in the filing
stated, not guessed- Total revenue
- Revenue by operating segment
- Gross profit and gross margin
- Operating income
- Operating expenses
- GAAP diluted earnings per share
- Non-GAAP diluted earnings per share
- Cash balance
- Total debt
- Net debt
- Dividend declaration or payment
- Prior-quarter comparisons for reported metrics
- Prior full-year 2026 outlook needed to compare actual results with prior guidance
- Full consolidated financial statements and complete income-statement line items were not included in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.