Antero Resources Corporation (AR): Business Model Canvas [Dec-2025 Updated]

You're looking to truly understand how Antero Resources Corporation makes its money, beyond just the stock ticker, and honestly, it boils down to a sharp focus on the Appalachian Basin's best rock and smart logistics. As someone who's spent two decades dissecting these models, I can tell you their engine is built on high-efficiency drilling-targeting a low-cost structure with 2025E D&C capital at just $0.54/Mcfe-and crucially, locking in premium prices by shipping gas to the Gulf Coast LNG corridor through their dedicated partner, Antero Midstream Corporation. This isn't just about drilling wells; it's about owning the path to the best buyers, which is why they are consistently generating serious Free Cash Flow, like the $337 million they posted in Q1 2025. Dive into the full Business Model Canvas below to see exactly how these nine building blocks fit together for Antero Resources Corporation.

Antero Resources Corporation (AR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Antero Resources Corporation's production flowing and monetized. These aren't just vendors; they are strategic alignments that secure capacity and drive returns.

Antero Midstream Corporation (AM) for dedicated midstream services

Antero Resources relies heavily on its affiliated midstream provider, Antero Midstream Corporation (AM), for gathering and compression capacity. Antero Resources has dedicated substantially all of its current and future acreage in West Virginia to Antero Midstream, subject to pre-existing dedications and other third-party commitments. For the three months ended September 30, 2025, Antero Midstream connected 16 wells to its gathering system. Antero Resources is increasing its organic land leasing program by $50 million in the liquids-rich Marcellus fairway, which has successfully added 79 locations year-to-date that are dedicated to Antero Midstream. Antero Midstream is forecasting Adjusted EBITDA of $1.08 billion to $1.12 billion for 2025. Antero Midstream's capital expenditures for gas gathering and compression infrastructure servicing Antero Resources were $132 million for the years ended December 31, 2023 and 2024.

MPLX, LP for a processing and fractionation joint venture

Antero Midstream and MPLX, LP (through MarkWest) have a 50/50 joint venture for processing and fractionation assets. This JV aligns Antero Resources' resource base with MPLX's footprint in Appalachia. The Joint Venture processing capacity has a nameplate capacity of 1.6 Bcf/d. During the second quarter of 2025, gross processing volumes from the Joint Venture averaged 1,687 MMcf/d, utilizing over 100% of nameplate capacity. Gross Joint Venture fractionation volumes averaged 40 MBbl/d in Q2 2025, utilizing 100% of the 40 MBbl/d nameplate fractionation capacity. Antero Midstream's 2025 guidance includes expected combined distributions from this Joint Venture and Stonewall Gathering LLC ranging from $135 million to $145 million.

Here's a quick look at the JV utilization from recent quarters:

Metric	Q1 2025 Value	Q2 2025 Value	Nameplate Capacity
Gross Processing Volumes (MMcf/d)	1,650	1,687	1.6 Bcf/d
Gross Fractionation Volumes (MBbl/d)	40	40	40 MBbl/d
Processing Utilization	Over 100%	Over 100%	N/A
Fractionation Utilization	100%	100%	N/A

Stonewall Gathering LLC joint venture for gathering capacity

Antero Midstream holds a 15% ownership interest in the Stonewall Gas Gathering Lateral Pipeline joint venture, with DT Midstream holding 85%. DT Midstream operates this system. The pipeline serves Marcellus/Utica production areas in northern West Virginia and southwestern Pennsylvania. The system includes a 68-mile high-pressure gathering pipeline with gathering capacity up to 1.5 Bcf per day. Antero Midstream is budgeting $10 million to $15 million in capital contributions to the Stonewall Joint Venture for 2025 to increase its capacity. During the third quarter of 2025, Antero Midstream invested $1 million in the Stonewall Joint Venture.

Oilfield service companies for specialized drilling and completion services

Antero Resources' capital deployment directly reflects its engagement with oilfield service companies. For the three months ended September 30, 2025, Antero Resources' drilling and completion capital expenditures totaled $172 million. The company set a record in Q3 2025 by drilling a lateral length of more than 22,000 lateral feet. Antero Resources' full-year 2025 drilling and completion capital budget was revised to $650 million to $675 million. The land capital budget for 2025 is set between $125 million and $150 million.

The well performance metrics show the scale of service work:

• Wells placed to sales in Q3 2025: 16 Marcellus wells.
• Average lateral length for Q3 2025 wells: 16,130 feet.
• Average completion stages per day for Q3 2025: 14.5 stages per day.
• Average cost per drilling location added in Q3 2025: approximately $1.0 million.

Antero Resources Corporation (AR) - Canvas Business Model: Key Activities

The Key Activities for Antero Resources Corporation center on efficient resource development, strategic asset growth, optimizing sales channels, and mitigating price volatility.

High-efficiency drilling and completion (D&C) operations

Antero Resources Corporation focuses on setting operational records to drive down unit costs and maximize production from its core assets. This focus translates directly into capital efficiency advantages over peers.

The company achieved a drilling efficiency of 2,452 feet per day in the first quarter of 2025, which was a 15% improvement from the prior year and substantially outperformed the peer quarterly record of 1,600 feet per day. Also, completion stages per day reached 12.3 in Q1 2025, against a peer record of 9 stages. By the third quarter of 2025, Antero Resources Corporation set a new company record, drilling a lateral exceeding 22,000 lateral feet. For that same quarter, completion stages per day averaged 14.5, and the company established a record for continuous pumping hours at 349 hours.

This operational performance underpins the capital advantage. The 2025E Drilling and Completion (D&C) capital per unit of production was $0.54, compared to the peer average of $0.74. The full-year 2025 D&C capital budget guidance was decreased to a range of $650 to $675 million as of the second quarter of 2025, reflecting these ongoing efficiency gains.

Here are some capital expenditure figures for context:

Period Ended	D&C Capital Expenditures
March 31, 2025 (Q1)	$157 million
June 30, 2025 (Q2)	$171 million
December 31, 2024 (Q4)	$120 million

Strategic land acquisition and leasing in the core Marcellus Fairway

Antero Resources Corporation actively expands its core Marcellus Fairway position through both organic leasing and strategic bolt-on acquisitions. The company maintains a focus on the Marcellus/Utica, holding over 500,000 net acres under lease as of early 2025.

In the third quarter of 2025 alone, Antero Resources Corporation completed approximately $260 million of strategic acquisitions within its core Marcellus footprint. This Q3 activity added approximately 7,000 net acres, equating to 32 incremental drilling locations, at an average cost of about $1.0 million per location. The total locations acquired and dedicated to Antero Midstream in 2025 reached approximately 80 by the end of Q3.

The company is increasing its full-year 2025 land capital budget to a range of $125 to $150 million to reflect this expanded leasing. For comparison, in the second quarter of 2025, leasing activity added approximately 5,000 net acres (20 incremental locations) at an average cost of about $820,000 per location, with $26 million invested in land that quarter. Year-to-date through Q3 2025, the organic leasing program added 79 incremental drilling locations at an average cost of $900,000 per location.

Marketing and firm transportation of natural gas and NGLs

A key differentiator is Antero Resources Corporation's strategy to secure firm transportation, linking a significant portion of its production to premium price points like the Henry Hub. The company's Q3 2025 net production averaged 3.4 Bcfe/d.

Realized pricing in Q3 2025 reflected this strategy:

• Realized pre-hedge natural gas equivalent price: $3.59 per Mcfe, a $0.52 per Mcfe premium to NYMEX.
• Realized pre-hedge C3+ NGL price: $36.60 per barrel.

The full-year 2025 C3+ NGL realized price premium to Mont Belvieu was revised to a range of $0.75 to $1.00 per barrel, with the fourth quarter expected to see a premium between $1.25 to $1.75 per barrel. Firm sales agreements cover approximately 90% of LPG volumes for 2025.

Marketing expenses were low in Q3 2025 at $0.05 per Mcfe. For context, the Q1 2025 pre-hedge natural gas equivalent price was $4.55 per Mcfe, a $0.90 per Mcfe premium to NYMEX, with the C3+ NGL price at $45.65 per barrel, a $1.66 per barrel premium to Mont Belvieu.

Financial risk management via commodity derivative positions

Antero Resources Corporation uses derivative contracts to manage price risk on its unhedged production volumes. As of June 30, 2025, approximately 4% of the company's total production for 2025 was hedged through commodity derivatives, with an estimated fair value of $48 million in net liability on those contracts.

The company actively adjusted its hedge book through Q3 2025:

• Increased 2025 natural gas swaps by approximately 550 BBtu/d, bringing the total to 646 BBtu/d at $3.70/MMBtu.
• Added 600 BBtu/d of natural gas swaps for 2026 at $3.82/MMBtu and 100 BBtu/d for 2027 at $3.93/MMBtu.
• Restructured 2026 natural gas costless collars, raising the floor price from $3.14 per MMBtu to $3.22 per MMBtu, with a ceiling price of $5.83 per MMBtu.

Earlier in 2025, the company had hedged approximately 9% of its expected natural gas volumes through 2026, locking in floor prices of $3.07 and ceiling prices of $5.96 for lean gas developments. These hedges were tied to the expected turn-to-sales of two deferred drilled but uncompleted (DUC) pads, one in Q1 2025 and the second in Q3 2025.

Antero Resources Corporation (AR) - Canvas Business Model: Key Resources

You're looking at the core assets Antero Resources Corporation controls, the stuff that makes their whole operation tick. These aren't just ideas; these are hard numbers from their latest reports.

The foundation of Antero Resources Corporation's competitive edge rests heavily on its massive, proven resource base in the Appalachian Basin, specifically the Marcellus and Utica shales. This resource base is quantified by its reserves and the planned capital to unlock them.

• Estimated Proved Undeveloped (PUD) reserves as of December 31, 2024: 4.2 Tcfe.
• Total estimated proved reserves at December 31, 2024: 17.9 Tcfe.
• Estimated future development capital required for PUD reserves: $1.8 billion over the next five years.
• Estimated average future development cost for PUD reserves: $0.44 per Mcfe.

The company is actively growing this resource base. For instance, during the fourth quarter of 2024, Antero added approximately 4,200 net acres, which translated to 15 incremental drilling locations at an average cost of about $950,000 per location. For the full year 2024, Antero added 59 locations at an average cost of approximately $900,000 per location. Still, the prompt mentions over 100,000 net acres of dry gas locations, but the most recent specific figure I have for acreage addition is the Q4 2024 data.

Getting that gas and the associated natural gas liquids (NGLs) to market is critical, and Antero has locked in significant infrastructure commitments.

Resource/Infrastructure Metric	Quantifiable Data Point
Gas Delivery to LNG Corridor (2025 Outlook)	75% of natural gas
Water System Fresh Water Pipelines	396 Miles
Wastewater Recycling/Reuse Capacity	100K Bbl/d
Wells Serviced by Fresh Water System (2025 Forecast)	70 to 75 wells
Average Lateral Length for Serviced Wells (2025 Forecast)	Approximately 13,200 feet

The integrated water system, primarily managed by Antero Midstream, is a key operational asset supporting efficient drilling and completion. Antero Midstream budgeted $85 million for water infrastructure in 2025, specifically for expansion to the southern Marcellus liquids-rich midstream corridor, which solidifies their 1 integrated water system in the Marcellus Shale.

You can see the scale of the key resources in this snapshot:

• Proved Undeveloped Reserves (2024 Year End): 4.2 Tcfe.
• Development Capital Required (Next 5 Years): $1.8 billion.
• Firm Gas Delivery to Gulf Coast LNG Corridor: 75%.
• Water Pipeline Miles: 396.

Finance: draft 13-week cash view by Friday.

Antero Resources Corporation (AR) - Canvas Business Model: Value Propositions

You're looking at what makes Antero Resources Corporation stand out in the market right now, focusing on where they deliver unique value to customers and the market. Honestly, it boils down to premium pricing access and industry-leading cost control.

Premium natural gas price realization via Gulf Coast LNG access

Antero Resources Corporation has built a value proposition around its firm transportation capacity, which is key to accessing premium markets. You see this clearly in their natural gas price realizations, which consistently beat the in-basin benchmarks. For example, in the first quarter of 2025, Antero realized a pre-hedge natural gas equivalent price of $4.55 per Mcfe, which represented a $0.90 per Mcfe premium to NYMEX. This was directly attributed to the faster-than-expected ramp-up of Gulf Coast LNG facilities driving record demand. Even by the third quarter of 2025, the realized pre-hedge price was $3.59 per Mcfe, still showing a $0.52 per Mcfe premium to NYMEX. This strategic positioning, with a significant portion of gas delivered to the LNG fairway, sets Antero Resources apart from many Appalachian Basin peers.

Low-cost structure with 2025E D&C capital per unit

The cost structure is a major differentiator, showing superior capital efficiency. Antero Resources is targeting its 2025E Drilling and Completion (D&C) capital per unit of production at $0.54/Mcfe. This figure is significantly better than the reported peer average of $0.74. To be fair, some internal estimates even placed their lowest maintenance capital per Mcfe at $0.53/Mcfe, which was 27% below the peer average as of mid-2025. This efficiency helps them maintain a low unhedged free cash flow breakeven natural gas price, estimated at $2.29/Mcf for 2025. Here's the quick math: lower capital intensity means more cash flow per unit produced.

High-value C3+ NGL production with a realized premium to Mont Belvieu

Capturing value from their rich liquids production is another core proposition, often realized through direct export sales agreements. For the full year 2025, Antero Resources was expecting to average a C3+ NGL price premium to Mont Belvieu in the range of $0.75 to $1.00 per barrel, though earlier in the year, the expectation was $1.50 to $2.50 per barrel. In the first quarter of 2025, they actually realized a $1.66 per barrel premium to Mont Belvieu pricing, driven by firm sales agreements for approximately 90% of their LPG volumes at Marcus Hook. By the third quarter of 2025, the realized premium was $0.84 per barrel over the benchmark index price. Management has also highlighted the ability to realize a couple of dollars above Mont Belvieu for C3+ NGLs due to strong export pricing.

Operational excellence, achieving record lateral lengths and completion stages

Antero Resources consistently demonstrates operational prowess, which directly feeds into the capital efficiency mentioned above. You can see this in their well performance metrics from early 2025:

• Drilling rate achieved 2,452 feet per day in the first quarter of 2025.
• Completion stages per day averaged 12.3 in Q1 2025, exceeding the peer record of 9 stages.
• Wells placed to sales in Q1 2025 had an average lateral length of 13,700 feet.
• Historically, Antero drilled its longest Marcellus lateral to date at nearly 14,400 feet.

These efficiencies mean they are doing more work with less capital outlay, which is a tangible benefit you can track.

Finance: draft 13-week cash view by Friday

Antero Resources Corporation (AR) - Canvas Business Model: Customer Relationships

You're looking at how Antero Resources Corporation (AR) manages its key relationships with the entities that buy its substantial production volumes, focusing on securing long-term value and managing investor expectations through financial discipline.

Long-term, high-volume sales agreements with major energy purchasers

Antero Resources Corporation locks in significant portions of its production through firm sales agreements, which helps stabilize realized pricing and provides visibility into future cash flows. This is a core part of their strategy to capture premium pricing, especially for their NGLs (Natural Gas Liquids).

For the 2025 fiscal year, Antero Resources Corporation entered into sales agreements covering approximately 90% of its expected LPG (Liquefied Petroleum Gas) export volumes. These agreements were structured to secure a double-digit per cent per gallon premium to Mont Belvieu pricing.

Here's a look at the realized pricing premiums Antero has achieved or is targeting for 2025:

Metric	Period/Scope	Value/Range	Citation Detail
C3+ NGL Price Premium to Mont Belvieu	Full Year 2025 Expected Average	$1.50 to $2.50 per barrel
C3+ NGL Price Premium to Mont Belvieu	Contracted Pricing Expectation (Specific)	Approximately $2.00 per barrel in 2025
C3+ NGL Price Premium to Mont Belvieu	Q4 2025 Expected Range	$1.25 to $1.75 per barrel
C3+ NGL Price Premium to Mont Belvieu	Revised Full Year 2025 Realized Premium	$0.75 to $1.00 per barrel
Natural Gas Realization Premium to NYMEX	Q1 2025 Pre-Hedge	$0.90 per Mcfe
Natural Gas Realization Premium to NYMEX	Q2 2025 Pre-Hedge	$0.41 per Mcfe

The company also added new natural gas hedges for later years, restructuring costless collars for 2026 to raise the floor price from $3.14 per MMBtu to $3.22 per MMBtu, with a ceiling price of $5.83 per MMBtu as of October 29, 2025.

Direct, transactional relationships with utilities and industrial users

Antero Resources Corporation's sales strategy is geared toward optimizing delivery to favorable markets, including the Gulf Coast LNG corridor, which implies transactional relationships with end-users like utilities and industrial consumers who rely on LNG export facilities. While specific utility/industrial customer names aren't detailed for 2025, credit risk exposure analysis shows a trend toward diversification.

The concentration of credit risk has historically been in the energy-related industries, but the company has managed this:

• No single customer accounted for more than 10% of total sales for the years ended December 31, 2023 and 2024.
• Sales to Six One Commodities LLC accounted for 12% of total sales for the year ended December 31, 2022.
• Receivables from contracts with customers were $454 million as of December 31, 2024, decreasing to $368 million as of June 30, 2025.

The company's production guidance for full year 2025 is at the high end of the 3.4 to 3.45 Bcfe/d range.

Investor relations focused on Free Cash Flow (FCF) generation and share repurchases

Investor communication heavily emphasizes the company's ability to generate substantial Free Cash Flow (FCF) and its commitment to returning that capital to shareholders, primarily through opportunistic share repurchases.

Key financial metrics and capital allocation actions in 2025 include:

• Projected 2025 FCF at strip prices is estimated to be over $1.3 billion, with another estimate at $1.16 billion.
• Q1 2025 FCF (before working capital changes) was $337 million, representing about 29% of the full-year estimate.
• Q3 2025 FCF (before working capital changes) was $70 million.
• Estimated Q4 2025 FCF is projected to be significantly higher at $245 million due to improved natural gas prices.
• The unhedged FCF breakeven natural gas price for 2025 was $2.29/Mcf.

The deployment of this cash flow towards shareholder returns is clearly tracked:

Activity	Period/Date	Shares Repurchased	Average Price/Total Value
Share Repurchases	First four months of 2025	2.7 million shares	Average price of $34.18 per share (Totaling $92 million)
Share Purchases	April 1st through July 30th, 2025	3.6 million shares	Totaling $126 million (Average weighted price of $34.49 per share)
Share Repurchases	Q3 2025	1.5 million shares	For $51 million

The company's balance sheet strength supports this focus. Total debt was reduced by over $200 million in Q1 2025, bringing the total debt as of March 31, 2025, to $1.29 billion. The Net Debt to trailing twelve month Adjusted EBITDAX ratio stood at 1.1x as of March 31, 2025, improving to 0.8x as of June 30, 2025. Liquidity was $1.3 billion as of March 31, 2025.

Antero Resources Corporation (AR) - Canvas Business Model: Channels

You're looking at how Antero Resources Corporation moves its product from the wellhead to the buyer, which is critical given its Appalachian location and focus on premium markets. The channels Antero Resources uses are heavily integrated with its ownership stake in Antero Midstream Corporation (AM), ensuring dedicated takeaway capacity.

Firm transportation pipelines to premium markets (e.g., Gulf Coast) represent a core strategic advantage. Antero Resources explicitly states its differentiated strategy involves securing firm transportation capacity that sells the majority of its natural gas along the Gulf Coast LNG corridor. For instance, in the first quarter of 2025, this positioning contributed to natural gas realizations at a $0.36 premium to NYMEX during the quarter. This focus on premium markets is a deliberate choice, as management noted its strategy consistently yields higher returns compared to peers. Furthermore, Antero Resources has capacity on the TGP 500 Leg, amounting to 570 MMcf a day of capacity, which feeds directly into the premium market area.

For Natural Gas Liquids (NGLs), the channel strategy locks in favorable pricing for exports. Antero Resources entered into sales agreements for approximately 90% of its Liquefied Petroleum Gas (LPG) export volumes for 2025 at the Marcus Hook, PA dock. This secured pricing is expected to deliver an approximate $2.00 per barrel premium to Mont Belvieu for the full year 2025, though the overall expected premium range for the year was $1.50 to $2.50 per barrel. The strength of the underlying NGL market is visible, as Antero's C3+ realizations in the second quarter of 2025 averaged 59% of WTI, an improvement from 50% of WTI in the second quarter of 2024.

Midstream processing and fractionation facilities (via Antero Midstream) are the essential infrastructure layer. Antero Midstream owns and develops the gathering, compression, processing, and fractionation assets that service Antero Resources' properties. The throughput volumes show this channel is actively used and growing as of late 2025. For example, the processing and fractionation joint venture saw gross processing volumes average 1,714 MMcf/d in the third quarter of 2025. The processing capacity of this Joint Venture was over 100% utilized based on its nameplate capacity of 1.6 Bcf/d in the second quarter of 2025. Antero Midstream's 2025 Adjusted EBITDA guidance sits between $1.08 to $1.12 billion. Here are some key third quarter 2025 operational metrics for Antero Midstream:

Midstream Service	Q3 2025 Average Volume	Year-over-Year Change
Low Pressure Gathering	3,432 MMcf/d	5% increase
Compression Volumes	3,421 MMcf/d	5% increase
High Pressure Gathering	3,170 MMcf/d	4% increase
Fresh Water Delivery	92 MBbl/d	30% increase

The company also uses direct sales contracts with end-users and energy marketers, which is how the firm realizes the premiums mentioned above. For instance, the firm LPG sales agreements are direct contracts with buyers at export terminals. This flexibility allows Antero Resources to capture premium pricing, which management views as more profitable than focusing solely on local sales.

The physical interconnections with major interstate natural gas pipelines are what enable the firm transportation to reach the Gulf Coast. Antero Resources is positioned to benefit from significant new LNG capacity additions, with 7 Bcf/d of new U.S. LNG capacity expected to be added between 2025 and 2027. The company's strategy relies on having this infrastructure in place to move its Appalachian production to these high-demand areas.

• Antero Resources expects to maintain its premium pricing strategy, targeting a C3+ NGL realized price premium to Mont Belvieu of $0.75 to $1.00 per barrel for the full year 2025, with the fourth quarter anticipated to be stronger at $1.25 to $1.75 per barrel.
• The company has over 20 years of premium drilling inventory that feeds these transportation channels.
• Antero Midstream's capital investment in the third quarter included $24 million in gathering and compression and $26 million in water infrastructure.

Finance: review the Q4 2025 realized premium vs. the projected $1.25 to $1.75 per barrel range by next Tuesday.

Antero Resources Corporation (AR) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Antero Resources Corporation's production as of late 2025. This isn't about the contracts themselves, but who is actually taking the molecules and barrels.

Antero Resources Corporation targets large-scale development in the Appalachian Basin, focusing on natural gas and Natural Gas Liquids (NGLs) sales to diverse end-users and export channels. The company's realized pricing structure in 2025 clearly shows a premium capture strategy across its customer base.

The overall production profile for the third quarter of 2025 was:

• Net production averaged 3.4 Bcfe/d.
• Natural gas production averaged 2.2 Bcf/d.
• Liquids production averaged 206 MBbl/d.

Here's a breakdown of the realized pricing Antero achieved across its product sales for the third quarter of 2025:

Product/Metric	Realized Price (Pre-Hedge)	Premium/Discount to Benchmark
Natural Gas Equivalent (Mcfe)	$3.59 per Mcfe	$0.52 per Mcfe premium to NYMEX
C3+ NGL (Barrel)	$36.60 per barrel	$0.84 per barrel premium to the benchmark index price

Large-scale natural gas utilities and industrial end-users form a significant portion of the natural gas customer base, often tied to established hubs. For instance, in 2024, about 75% of Antero's estimated gas sales were linked to Henry Hub pricing. This domestic market is complemented by the company's strategic positioning to benefit from increasing power demand, including that fueled by data center expansion in the Midwest and Eastern regions.

Global export market buyers for Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) are critical for NGL realization. Antero entered sales agreements for approximately 90% of its LPG export volumes for 2025 at a double-digit per cent per gallon premium to Mont Belvieu pricing. The company's 2025 guidance projected a C3+ NGL price premium to Mont Belvieu of $2.50/Bbl.

The NGL sales volume split, based on November 2025 estimates, shows a near-even split between domestic and international markets:

• Estimated Annualized Mix for C3+ NGLs: ~50% International and ~50% Domestic.
• Estimated International Sales (C3+ NGLs): 45 MBbl/d C3 and 10 MBbl/d C4.
• Estimated Domestic Sales (C3+ NGLs): Totaling 55,000 Bbl/d.

Emerging local demand is centered in the core operating area. Antero Resources Corporation is actively developing assets in this region, evidenced by completing strategic acquisitions in its core Marcellus acreage position in West Virginia during the third quarter of 2025. Furthermore, the company was applying for a permit to drill a natural gas horizontal well named Grey Unit 1H in West Virginia as of early 2025.

Other energy companies and marketers are involved through Antero's marketing activities. The net marketing expense, which reflects costs associated with optimizing transportation and sales, was reported at $0.06 per Mcfe for both the first and second quarters of 2025. This compares to $0.07 per Mcfe in the second quarter of 2024.

The realized NGL pricing for the estimated 115,000 Bbl/d total C3+ NGL volumes in 2025 reflects these customer destinations, with the Global Weighted C3/C4 Average Price benchmark estimate at $32.28/Bbl.

Antero Resources Corporation (AR) - Canvas Business Model: Cost Structure

The Cost Structure for Antero Resources Corporation is heavily weighted toward capital investment in the field and the operational expenses tied directly to production and midstream services. You're looking at the major cash outflows required to maintain and grow the asset base, so precision here is key.

The company's capital discipline for 2025 was evident in its spending guidance, which prioritized capital efficiency over aggressive production growth. Here's a quick look at the projected capital expenditures for the year:

Cost Category	2025 Guidance/Budget	Reference Period/Notes
Drilling and Completion (D&C) Capital Expenditures	$650 to $700 million	Full Year 2025 Guidance
Land acquisition and leasing costs	$125 to $150 million	Increased Full Year 2025 Land Capital Budget
Cash Interest Expense (Projected)	$35 million	Projected for the Second Half of 2025

Operational expenses, tracked as Cash Production Expenses, are guided to remain tight, though they are sensitive to commodity pricing, specifically natural gas prices, which impact production taxes and fuel costs for transportation. The guidance for these per-unit costs is:

• Cash Production Expenses: Guidance of $2.45 to $2.55 per Mcfe for 2025.

Midstream fees represent a significant component of the overall operating cost, bundled into the All-in cash expense. These fees cover gathering, compression, processing, and transportation, services Antero Midstream provides under long-term fixed-fee service agreements. The total All-in cash expense, which includes these midstream components, lease operating costs, and production/ad valorem taxes, saw some fluctuation:

• All-in cash expense in Q1 2025 was reported at $2.56 per Mcfe.
• All-in cash expense in Q3 2025 was reported at $2.44 per Mcfe.

The cost structure also includes servicing the company's debt load. As of Q1 2025, Antero Resources reported total debt of approximately $1.29 billion. By the end of Q3 2025, long-term debt stood at $1.307B. The interest expense associated with this debt is a fixed, non-discretionary cash outflow, with a projection of $35 million in cash interest expense for the second half of 2025 alone. This debt management is a primary focus, as the company actively used free cash flow to reduce its outstanding balances throughout 2025.

Antero Resources Corporation (AR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Antero Resources Corporation brings in cash, which is heavily tied to the commodity markets for natural gas and natural gas liquids (NGLs). Honestly, for an upstream producer like Antero Resources, the revenue streams are pretty direct, but the realized prices you get make all the difference.

The primary revenue driver is the Sale of Natural Gas. For the first quarter of 2025, the revenue from this source hit $780 million. This performance is strongly linked to Antero Resources' strategy of securing firm transportation capacity, particularly along the Gulf Coast LNG corridor, which helped them achieve a premium to the benchmark NYMEX price.

The next major component is the Sale of Natural Gas Liquids (NGLs) and Oil. This stream benefits from strong realized pricing and production volumes. In Q1 2025, Antero Resources' liquids production averaged 206 MBbl/d. To give you a sense of pricing power, the realized pre-hedge C3+ NGL price in that same quarter was $45.65 per barrel.

Here's a quick look at some of those key Q1 2025 financial metrics that feed into the revenue picture:

Metric	Amount (Q1 2025)
Sale of Natural Gas Revenue	$780 million
Free Cash Flow (before working capital)	$337 million
Net Cash Provided by Operating Activities	$458 million
Adjusted EBITDAX	$549 million

You also see cash flow from Antero Resources' strategic investment in Antero Midstream. While the specific Q4 2025 estimate of $31 million wasn't in the latest reports, Antero Midstream did provide its full-year 2025 guidance for combined distributions from its joint ventures (including the processing and fractionation JV and Stonewall Joint Venture), which is projected to be between $135 million to $145 million for the entire year. This flow is a steady, fee-based component supporting the overall financial picture.

The impact of Realized gains/losses from commodity hedging activities is reflected in the difference between unhedged and realized prices. For instance, Antero Resources realized a pre-hedge natural gas equivalent price of $4.55 per Mcfe in Q1 2025, while the realized price before derivatives was reported as $4.01 per Mcf. Also, the realized price per Mcfe, including the slightly negative impact of hedges, was reported as $0.87 above NYMEX per Mcfe for its production.

Finally, the resulting Free Cash Flow (FCF) generation is a critical measure of cash available after operations and capital expenditures. Antero Resources generated $337 million in Free Cash Flow before working capital changes in Q1 2025. This FCF is then deployed for debt reduction and share repurchases.

The revenue streams are supported by these operational realities:

• Net production averaged 3.4 Bcfe/d in Q1 2025.
• The company reduced Net Debt by $204 million during Q1 2025.
• Drilling and completion capital expenditures for Q1 2025 were $157 million.

Finance: draft 13-week cash view by Friday.