000001433270--12-31Q22021us-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseLiabilityCurrentus-gaap:OperatingLeaseLiabilityNoncurrentus-gaap:PropertyPlantAndEquipmentOtherus-gaap:FinanceLeaseLiabilityCurrentus-gaap:FinanceLeaseLiabilityNoncurrent313527000268672000111111P1Yus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseRightOfUseAssetus-gaap:OperatingLeaseLiabilityCurrentus-gaap:OperatingLeaseLiabilityNoncurrentus-gaap:PropertyPlantAndEquipmentOtherus-gaap:FinanceLeaseLiabilityCurrentus-gaap:FinanceLeaseLiabilityNoncurrentP180Dfalse0001433270us-gaap:CommonStockMember2020-04-012020-06-300001433270us-gaap:CommonStockMember2020-01-012020-03-310001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-05-132021-05-130001433270us-gaap:CommonStockMember2021-04-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-01-122021-01-120001433270us-gaap:CommonStockMember2021-01-012021-03-310001433270us-gaap:RetainedEarningsMember2021-06-300001433270us-gaap:NoncontrollingInterestMember2021-06-300001433270us-gaap:AdditionalPaidInCapitalMember2021-06-300001433270us-gaap:RetainedEarningsMember2021-03-310001433270us-gaap:NoncontrollingInterestMember2021-03-310001433270us-gaap:AdditionalPaidInCapitalMember2021-03-3100014332702021-03-310001433270us-gaap:RetainedEarningsMember2020-12-310001433270us-gaap:NoncontrollingInterestMember2020-12-310001433270us-gaap:AdditionalPaidInCapitalMember2020-12-310001433270us-gaap:RetainedEarningsMember2020-06-300001433270us-gaap:NoncontrollingInterestMember2020-06-300001433270us-gaap:AdditionalPaidInCapitalMember2020-06-300001433270us-gaap:RetainedEarningsMember2020-03-310001433270us-gaap:AdditionalPaidInCapitalMember2020-03-3100014332702020-03-310001433270us-gaap:RetainedEarningsMember2019-12-310001433270us-gaap:AdditionalPaidInCapitalMember2019-12-310001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-05-130001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-01-120001433270us-gaap:CommonStockMember2021-06-300001433270us-gaap:CommonStockMember2021-03-310001433270us-gaap:CommonStockMember2020-12-310001433270us-gaap:CommonStockMember2020-06-300001433270us-gaap:CommonStockMember2020-03-310001433270us-gaap:CommonStockMember2019-12-310001433270us-gaap:EmployeeStockOptionMember2020-01-012020-12-310001433270us-gaap:EmployeeStockOptionMember2020-12-310001433270us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001433270ar:AnteroResourcesCorporationLongTermIncentivePlanMember2021-06-300001433270ar:MidstreamLongTermIncentivePlanMember2021-06-300001433270ar:AnteroResourcesCorporationLongTermIncentivePlanMember2020-06-170001433270ar:AnteroMidstreamMemberus-gaap:RestrictedStockUnitsRSUMember2021-06-300001433270ar:AnteroMidstreamMemberus-gaap:RestrictedStockUnitsRSUMember2020-12-310001433270us-gaap:PerformanceSharesMember2020-12-310001433270ar:RestrictedStockAndRestrictedStockUnitMember2020-12-310001433270ar:AnteroMidstreamMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001433270us-gaap:PerformanceSharesMember2021-04-012021-04-300001433270ar:CashAwardsMember2020-07-012020-07-310001433270us-gaap:RestrictedStockMember2021-04-012021-06-300001433270us-gaap:PerformanceSharesMember2021-04-012021-06-300001433270ar:CommonStockIssuedToDirectorsInLieuOfCashCompensationMember2021-04-012021-06-300001433270ar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2021-04-012021-06-300001433270us-gaap:RestrictedStockMember2021-01-012021-06-300001433270ar:CommonStockIssuedToDirectorsInLieuOfCashCompensationMember2021-01-012021-06-300001433270ar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2021-01-012021-06-300001433270us-gaap:RestrictedStockMember2020-04-012020-06-300001433270us-gaap:PerformanceSharesMember2020-04-012020-06-300001433270ar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2020-04-012020-06-300001433270us-gaap:RestrictedStockMember2020-01-012020-06-300001433270us-gaap:PerformanceSharesMember2020-01-012020-06-300001433270ar:CommonStockIssuedToDirectorsInLieuOfCashCompensationMember2020-01-012020-06-300001433270ar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2020-01-012020-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-09-020001433270us-gaap:OilAndCondensateMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270us-gaap:NaturalGasProductionMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270ar:NaturalGasLiquidsSalesEthaneMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270ar:NaturalGasLiquidsSalesC3NglsMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270ar:MarketingsMemberar:MarketingMember2021-04-012021-06-300001433270us-gaap:ProductAndServiceOtherMember2021-04-012021-06-300001433270us-gaap:OilAndCondensateMember2021-04-012021-06-300001433270us-gaap:NaturalGasProductionMember2021-04-012021-06-300001433270ar:NaturalGasLiquidsSalesMember2021-04-012021-06-300001433270us-gaap:OilAndCondensateMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270us-gaap:NaturalGasProductionMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270ar:NaturalGasLiquidsSalesEthaneMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270ar:NaturalGasLiquidsSalesC3NglsMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270ar:MarketingsMemberar:MarketingMember2021-01-012021-06-300001433270us-gaap:ProductAndServiceOtherMember2021-01-012021-06-300001433270us-gaap:OilAndCondensateMember2021-01-012021-06-300001433270us-gaap:NaturalGasProductionMember2021-01-012021-06-300001433270ar:NaturalGasLiquidsSalesMember2021-01-012021-06-300001433270us-gaap:OilAndCondensateMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270us-gaap:NaturalGasProductionMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270ar:NaturalGasLiquidsSalesEthaneMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270ar:NaturalGasLiquidsSalesC3NglsMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270ar:MarketingsMemberar:MarketingMember2020-04-012020-06-300001433270us-gaap:ProductAndServiceOtherMember2020-04-012020-06-300001433270us-gaap:OilAndCondensateMember2020-04-012020-06-300001433270us-gaap:NaturalGasProductionMember2020-04-012020-06-300001433270ar:NaturalGasLiquidsSalesMember2020-04-012020-06-300001433270us-gaap:OilAndCondensateMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270us-gaap:NaturalGasProductionMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270ar:NaturalGasLiquidsSalesEthaneMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270ar:NaturalGasLiquidsSalesC3NglsMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270ar:MarketingsMemberar:MarketingMember2020-01-012020-06-300001433270us-gaap:ProductAndServiceOtherMember2020-01-012020-06-300001433270us-gaap:OilAndCondensateMember2020-01-012020-06-300001433270us-gaap:NaturalGasProductionMember2020-01-012020-06-300001433270ar:NaturalGasLiquidsSalesMember2020-01-012020-06-300001433270us-gaap:RetainedEarningsMember2021-04-012021-06-300001433270us-gaap:RetainedEarningsMember2021-01-012021-03-310001433270us-gaap:RetainedEarningsMember2020-04-012020-06-300001433270us-gaap:RetainedEarningsMember2020-01-012020-03-310001433270ar:WashingtonGasLightCompanyMemberus-gaap:SettledLitigationMember2021-02-012021-02-280001433270ar:AnteroMidstreamMemberar:GasGatheringLinesAndCompressorStationsMember2021-06-300001433270us-gaap:OtherMachineryAndEquipmentMember2021-06-300001433270ar:ProcessingPlantsMember2021-06-300001433270ar:OfficeSpaceMember2021-06-300001433270ar:GasGatheringLinesAndCompressorStationsMember2021-06-300001433270ar:DrillingAndCompletionRigsMember2021-06-300001433270ar:AnteroMidstreamMemberar:GasGatheringLinesAndCompressorStationsMember2020-12-310001433270us-gaap:OtherMachineryAndEquipmentMember2020-12-310001433270ar:ProcessingPlantsMember2020-12-310001433270ar:OfficeSpaceMember2020-12-310001433270ar:GasGatheringLinesAndCompressorStationsMember2020-12-310001433270ar:DrillingAndCompletionRigsMember2020-12-310001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-04-012021-06-300001433270us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300001433270ar:ProvedPropertiesMember2021-04-012021-06-300001433270ar:LeaseOperatingMember2021-04-012021-06-300001433270ar:ContractTerminationAndRigStackingMember2021-04-012021-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-01-012021-06-300001433270us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-06-300001433270ar:ProvedPropertiesMember2021-01-012021-06-300001433270ar:LeaseOperatingMember2021-01-012021-06-300001433270ar:ContractTerminationAndRigStackingMember2021-01-012021-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-04-012020-06-300001433270us-gaap:GeneralAndAdministrativeExpenseMember2020-04-012020-06-300001433270ar:ProvedPropertiesMember2020-04-012020-06-300001433270ar:ContractTerminationAndRigStackingMember2020-04-012020-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-01-012020-06-300001433270us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-06-300001433270ar:ProvedPropertiesMember2020-01-012020-06-300001433270ar:ContractTerminationAndRigStackingMember2020-01-012020-06-300001433270us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001433270ar:WashingtonGasLightCompanyMembersrt:MinimumMemberus-gaap:PendingLitigationMember2017-03-310001433270ar:WashingtonGasLightCompanyMemberus-gaap:SettledLitigationMember2019-06-202019-06-200001433270srt:MinimumMemberus-gaap:LineOfCreditMember2021-01-012021-06-300001433270srt:MaximumMemberus-gaap:LineOfCreditMember2021-01-012021-06-300001433270srt:MinimumMembersrt:RestatementAdjustmentMembersrt:ScenarioForecastMemberar:AccountingStandardsUpdate202006Member2022-01-010001433270srt:MaximumMembersrt:RestatementAdjustmentMembersrt:ScenarioForecastMemberar:AccountingStandardsUpdate202006Member2022-01-010001433270us-gaap:LineOfCreditMember2020-12-310001433270srt:MinimumMember2021-06-300001433270srt:MaximumMember2021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-04-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingInMayMember2021-04-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingMember2021-01-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingInMayMember2021-01-012021-06-300001433270ar:DepletionDepreciationAndAmortizationMember2021-04-012021-06-300001433270ar:DepletionDepreciationAndAmortizationMember2021-01-012021-06-300001433270ar:DepletionDepreciationAndAmortizationMember2020-04-012020-06-300001433270ar:DepletionDepreciationAndAmortizationMember2020-01-012020-06-300001433270us-gaap:VehiclesMember2021-06-300001433270us-gaap:VehiclesMember2020-12-310001433270ar:AnteroMidstreamMember2021-06-300001433270us-gaap:EmployeeStockOptionMember2021-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2021-06-300001433270ar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2021-06-300001433270srt:MaximumMemberar:AnteroMidstreamPartnersPhantomAndRestrictedUnitAwardsMember2021-01-012021-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2021-01-012021-06-300001433270ar:JulyDecember2021Memberar:OpisButaneMtBelvTetMemberar:ButaneMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Memberar:OpisButaneMtBelvNonTetMemberar:ButaneMemberus-gaap:SwapMember2021-06-300001433270ar:JulyOctober2021Memberus-gaap:PublicUtilitiesInventoryPropaneMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Membersrt:CrudeOilMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Memberar:NaturalGasolineMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Memberar:NaturalGasMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Memberar:IsobutaneMemberus-gaap:SwapMember2021-06-300001433270ar:JanuaryDecember2023Memberar:NaturalGasMemberus-gaap:SwapMember2021-06-300001433270ar:JanuaryDecember2022Memberar:NaturalGasMemberus-gaap:SwapMember2021-06-300001433270ar:YearEndingDecember312026Memberus-gaap:PutOptionMember2021-06-300001433270ar:JulyDecember2021Memberus-gaap:PublicUtilitiesInventoryPropaneMember2021-06-300001433270ar:JulyDecember2021Membersrt:CrudeOilMember2021-06-300001433270ar:JulyDecember2021Memberar:NaturalGasolineMember2021-06-300001433270ar:JulyDecember2021Memberar:NaturalGasMember2021-06-300001433270ar:JulyDecember2021Memberar:EthaneMember2021-06-300001433270ar:JanuaryMarch2025Membersrt:CrudeOilMember2021-06-300001433270ar:JanuaryMarch2025Memberar:NaturalGasMember2021-06-300001433270ar:JanuaryMarch2022Memberar:EthaneMember2021-06-300001433270ar:JanuaryDecember2024Membersrt:CrudeOilMember2021-06-300001433270ar:JanuaryDecember2024Memberar:NaturalGasMember2021-06-300001433270ar:JanuaryDecember2023Membersrt:CrudeOilMember2021-06-300001433270ar:JanuaryDecember2023Memberar:NaturalGasolineMember2021-06-300001433270ar:JanuaryDecember2023Memberar:NaturalGasMember2021-06-300001433270ar:JanuaryDecember2022Memberus-gaap:PublicUtilitiesInventoryPropaneMember2021-06-300001433270ar:JanuaryDecember2022Membersrt:CrudeOilMember2021-06-300001433270ar:JanuaryDecember2022Memberar:NaturalGasolineMember2021-06-300001433270ar:JanuaryDecember2022Memberar:NaturalGasMember2021-06-300001433270ar:FixedPriceSwapAgreementMember2021-06-300001433270us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-06-300001433270us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2021-06-300001433270us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:SalesMember2021-04-012021-06-300001433270us-gaap:CommodityContractMemberus-gaap:SalesMember2021-04-012021-06-300001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:SalesMember2021-01-012021-06-300001433270us-gaap:CommodityContractMemberus-gaap:SalesMember2021-01-012021-06-300001433270us-gaap:CommodityContractMemberus-gaap:SalesMember2020-04-012020-06-300001433270us-gaap:CommodityContractMemberus-gaap:SalesMember2020-01-012020-06-300001433270us-gaap:DesignatedAsHedgingInstrumentMember2021-06-300001433270us-gaap:DesignatedAsHedgingInstrumentMember2020-12-310001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:NondesignatedMember2021-06-300001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:NondesignatedMember2020-12-310001433270us-gaap:CommodityContractMemberus-gaap:NondesignatedMember2020-12-310001433270us-gaap:NondesignatedMember2021-06-300001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-06-300001433270us-gaap:NondesignatedMember2020-12-310001433270us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2020-12-310001433270us-gaap:CommodityContractMember2021-06-300001433270us-gaap:CommodityContractMember2020-12-310001433270srt:RestatementAdjustmentMember2021-06-300001433270ar:CashAwardsMember2020-07-010001433270ar:CashAwardsMember2020-01-310001433270ar:DebtRepurchaseProgramMemberar:SeniorNotes5625PercentDue2023Member2021-06-010001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingInMayMember2021-05-130001433270ar:DebtRepurchaseProgramMemberar:SeniorNotes5125PercentDue2022Member2021-03-310001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingMember2021-01-120001433270ar:DebtInstrumentRedemptionPeriodPriorTo01March2025Memberar:SeniorNotes5.375PercentDue2030Member2021-06-012021-06-010001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter01March2028Memberar:SeniorNotes5.375PercentDue2030Member2021-06-012021-06-010001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter01March2025Memberar:SeniorNotes5.375PercentDue2030Member2021-06-012021-06-010001433270ar:DebtInstrumentRedemptionPeriodPriorTo01February2024Memberar:SeniorNotes7625PercentDue2029Member2021-01-262021-01-260001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter01February2027Memberar:SeniorNotes7625PercentDue2029Member2021-01-262021-01-260001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter01February2024Memberar:SeniorNotes7625PercentDue2029Member2021-01-262021-01-260001433270ar:DebtInstrumentRedemptionPeriodPriorTo15January2024Memberar:SeniorNotes8375PercentDue2026Member2021-01-042021-01-040001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter15January2026Memberar:SeniorNotes8375PercentDue2026Member2021-01-042021-01-040001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter15January2024Memberar:SeniorNotes8375PercentDue2026Member2021-01-042021-01-040001433270ar:DebtInstrumentRedemptionPeriodOnOrAfter01March2023Memberar:SeniorNotes500PercentDue2025Member2021-01-012021-06-300001433270ar:SeniorNotes5625PercentDue2023Member2021-06-300001433270ar:SeniorNotes5125PercentDue2022Member2021-06-300001433270srt:RestatementAdjustmentMemberar:AccountingStandardsUpdate202006Member2021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-210001433270srt:RestatementAdjustmentMemberar:AccountingStandardsUpdate202006Member2021-01-012021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes8375PercentDue2026Member2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes7625PercentDue2029Member2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes500PercentDue2025Member2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes5.375PercentDue2030Member2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes8375PercentDue2026Member2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes7625PercentDue2029Member2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes500PercentDue2025Member2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes5.375PercentDue2030Member2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-06-300001433270us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes5625PercentDue2023Member2020-12-310001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes5125PercentDue2022Member2020-12-310001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:SeniorNotes500PercentDue2025Member2020-12-310001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-12-310001433270us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes5625PercentDue2023Member2020-12-310001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes5125PercentDue2022Member2020-12-310001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:SeniorNotes500PercentDue2025Member2020-12-310001433270us-gaap:CarryingReportedAmountFairValueDisclosureMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-12-310001433270us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001433270ar:DebtInstrumentConvertibleThresholdPercentageMinimumMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-212020-08-210001433270ar:DebtInstrumentConvertibleThresholdPercentageMaximumMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-212020-08-210001433270ar:SeniorNotes8375PercentDue2026Member2021-06-300001433270ar:SeniorNotes7625PercentDue2029Member2021-06-300001433270ar:SeniorNotes500PercentDue2025Member2021-06-300001433270ar:SeniorNotes5.375PercentDue2030Member2021-06-300001433270ar:SeniorNotes5625PercentDue2023Member2020-12-310001433270ar:SeniorNotes5125PercentDue2022Member2020-12-310001433270ar:SeniorNotes500PercentDue2025Member2020-12-310001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingInMayMember2021-05-132021-05-130001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Memberar:ConvertibleNoteRepurchaseWithShareOfferingMember2021-01-122021-01-120001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-212020-08-210001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-012020-08-010001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-01-012021-06-300001433270ar:ParentCompanyAndGuarantorSubsidiariesMember2021-01-012021-06-300001433270ar:AnteroMidstreamMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-01-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:OilAndGasOperationAndMaintenanceMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:AnteroMidstreamMember2021-04-012021-06-300001433270us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-04-012021-06-300001433270us-gaap:OilAndGasOperationAndMaintenanceMember2021-04-012021-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-04-012021-06-300001433270ar:MarketingsMember2021-04-012021-06-300001433270ar:ExplorationMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:OilAndGasOperationAndMaintenanceMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:AnteroMidstreamMember2021-01-012021-06-300001433270us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-01-012021-06-300001433270us-gaap:OilAndGasOperationAndMaintenanceMember2021-01-012021-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2021-01-012021-06-300001433270ar:MarketingsMember2021-01-012021-06-300001433270ar:ExplorationMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:OilAndGasOperationAndMaintenanceMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:AnteroMidstreamMember2020-04-012020-06-300001433270us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-04-012020-06-300001433270us-gaap:OilAndGasOperationAndMaintenanceMember2020-04-012020-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-04-012020-06-300001433270ar:MarketingsMember2020-04-012020-06-300001433270ar:ExplorationMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:OilAndGasOperationAndMaintenanceMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270us-gaap:OperatingSegmentsMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMemberar:AnteroMidstreamMember2020-01-012020-06-300001433270us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-01-012020-06-300001433270us-gaap:OilAndGasOperationAndMaintenanceMember2020-01-012020-06-300001433270us-gaap:NaturalGasGatheringTransportationMarketingAndProcessingMember2020-01-012020-06-300001433270ar:MarketingsMember2020-01-012020-06-300001433270ar:ExplorationMember2020-01-012020-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-12-310001433270us-gaap:EstimateOfFairValueFairValueDisclosureMemberar:ConvertibleSeniorNotes4.25PercentDue2026Member2020-08-210001433270us-gaap:LeaseAgreementsMember2021-06-300001433270ar:OperatingAndFinancingLeasesMember2021-06-300001433270ar:LongTermGasProcessingAgreementMember2021-06-300001433270ar:LandPaymentObligationsMember2021-06-300001433270ar:FirmTransportationAgreementsMember2021-06-3000014332702019-12-310001433270us-gaap:AccountsPayableMember2020-12-310001433270ar:RevenueDistributionsPayableMember2020-12-310001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2021-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2021-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2021-06-300001433270ar:AnteroMidstreamMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-06-300001433270us-gaap:IntersegmentEliminationMember2021-06-300001433270ar:AnteroMidstreamMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-12-310001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2020-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2020-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2020-06-300001433270us-gaap:IntersegmentEliminationMember2020-06-3000014332702020-06-300001433270us-gaap:PerformanceSharesMember2021-04-012021-06-300001433270us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2021-04-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-04-012021-06-300001433270us-gaap:PerformanceSharesMember2021-01-012021-06-300001433270us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2021-01-012021-06-300001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-01-012021-06-300001433270us-gaap:PerformanceSharesMember2020-04-012020-06-300001433270us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2020-04-012020-06-300001433270us-gaap:PerformanceSharesMember2020-01-012020-06-300001433270us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001433270ar:RestrictedStockAndRestrictedStockUnitMember2020-01-012020-06-300001433270us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001433270us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100014332702020-01-012020-03-310001433270us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001433270us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001433270ar:ParentCompanyAndGuarantorSubsidiariesMember2021-06-300001433270ar:AnteroMidstreamMember2021-06-300001433270ar:ParentCompanyAndGuarantorSubsidiariesMember2020-12-310001433270ar:AnteroMidstreamMember2020-12-3100014332702021-07-230001433270ar:JulyDecember2021Memberar:MontBelvieuNaturalGasolineToWtiMemberar:NaturalGasLiquidsMemberus-gaap:SwapMember2021-06-300001433270ar:JulyDecember2021Memberar:NymexToTcoMemberar:NaturalGasMember2021-06-300001433270ar:JanuaryDecember2024Memberar:NymexToTcoMemberar:NaturalGasMember2021-06-300001433270ar:JanuaryDecember2023Memberar:NymexToTcoMemberar:NaturalGasMember2021-06-300001433270ar:JanuaryDecember2022Memberar:NymexToTcoMemberar:NaturalGasMember2021-06-300001433270ar:AnteroMidstreamMemberar:MidstreamLongTermIncentivePlanMemberus-gaap:CommonStockMember2021-01-012021-06-300001433270ar:AnteroMidstreamMemberus-gaap:RestrictedStockMember2019-03-122019-03-120001433270us-gaap:NoncontrollingInterestMember2021-01-012021-03-3100014332702021-01-012021-03-310001433270us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001433270us-gaap:PerformanceSharesMember2021-06-300001433270ar:OneYearPeriodMemberus-gaap:PerformanceSharesMember2021-04-012021-04-300001433270ar:PsuAwardsBasedOnLeverageRatioMember2021-04-012021-04-300001433270ar:ThreeYearPeriodMemberus-gaap:PerformanceSharesMember2021-04-012021-04-300001433270srt:MinimumMemberus-gaap:PerformanceSharesMember2021-04-012021-04-300001433270srt:MinimumMemberar:PsuAwardsBasedOnLeverageRatioMember2021-04-012021-04-300001433270srt:MaximumMemberus-gaap:PerformanceSharesMember2021-04-012021-04-300001433270srt:MaximumMemberar:PsuAwardsBasedOnLeverageRatioMember2021-04-012021-04-300001433270us-gaap:PerformanceSharesMember2021-01-012021-06-300001433270ar:AnteroMidstreamMember2021-01-012021-06-300001433270us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberar:MarketingMember2020-01-012020-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2021-04-012021-06-300001433270us-gaap:IntersegmentEliminationMember2021-04-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2020-04-012020-06-300001433270us-gaap:IntersegmentEliminationMember2020-04-012020-06-300001433270us-gaap:OperatingSegmentsMemberar:ExplorationAndProductionMember2020-01-012020-06-300001433270ar:AnteroMidstreamMember2021-01-012021-03-3100014332702020-08-102020-08-100001433270ar:QlCapitalPartnersMembersrt:MinimumMember2021-02-170001433270ar:QlCapitalPartnersMembersrt:MaximumMember2021-02-170001433270ar:QlCapitalPartnersMember2021-02-170001433270ar:J.p.MorganVenturesEnergyCorporationMember2020-07-012020-07-010001433270ar:J.p.MorganVenturesEnergyCorporationMember2020-07-010001433270ar:CashAwardsMember2020-01-012020-01-310001433270ar:WashingtonGasLightCompanyMemberus-gaap:PendingLitigationMember2019-06-300001433270ar:DebtInstrumentRedemptionPeriodOnOrBefore01March2025Memberar:SeniorNotes5.375PercentDue2030Member2021-06-012021-06-010001433270ar:DebtInstrumentRedemptionPeriodOnOrBefore01February2024Memberar:SeniorNotes7625PercentDue2029Member2021-01-262021-01-260001433270ar:DebtInstrumentRedemptionPeriodOnOrBefore15January2024Memberar:SeniorNotes8375PercentDue2026Member2021-01-042021-01-040001433270ar:SeniorNotes5.375PercentDue2030Member2021-06-012021-06-010001433270ar:SeniorNotes7625PercentDue2029Member2021-01-262021-01-260001433270ar:SeniorNotes8375PercentDue2026Member2021-01-042021-01-040001433270us-gaap:LineOfCreditMember2021-06-300001433270ar:AnteroMidstreamMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2021-01-012021-06-300001433270us-gaap:IntersegmentEliminationMember2021-01-012021-06-300001433270us-gaap:OperatingSegmentsMemberar:AnteroMidstreamMember2020-01-012020-06-300001433270us-gaap:IntersegmentEliminationMember2020-01-012020-06-3000014332702020-06-152020-06-150001433270ar:AnteroMidstreamMember2021-04-012021-06-300001433270ar:AnteroMidstreamMember2020-04-012020-06-300001433270ar:AnteroMidstreamMember2020-01-012020-06-300001433270ar:QlCapitalPartnersMember2021-04-012021-06-300001433270ar:QlCapitalPartnersMember2021-01-012021-06-3000014332702020-04-012020-06-300001433270ar:DebtRepurchaseProgramMember2020-04-012020-06-300001433270ar:DebtRepurchaseProgramMember2020-01-012020-06-300001433270ar:AnteroMidstreamMember2021-01-012021-06-300001433270ar:SeniorNotes500PercentDue2025Member2021-01-012021-06-300001433270ar:SeniorNotesDue2026Memberus-gaap:SubsequentEventMember2021-07-010001433270ar:SeniorNotesDue2026Memberus-gaap:SubsequentEventMember2021-07-012021-07-010001433270ar:SeniorNotes5.375PercentDue2030Member2021-06-010001433270ar:SeniorNotes7625PercentDue2029Member2021-01-260001433270ar:SeniorNotes8375PercentDue2026Member2021-01-040001433270ar:SeniorNotes500PercentDue2025Member2016-12-210001433270ar:SeniorNotes5625PercentDue2023Member2015-03-170001433270ar:SeniorNotes5125PercentDue2022Member2014-09-180001433270ar:SeniorNotes5125PercentDue2022Member2014-05-060001433270ar:ConvertibleSeniorNotes4.25PercentDue2026Member2021-06-300001433270ar:SixthStreetPartnersLlcMember2020-06-1500014332702020-01-012020-06-300001433270ar:SixthStreetPartnersLlcMember2021-04-012021-06-300001433270ar:SixthStreetPartnersLlcMember2020-10-012020-12-310001433270ar:SixthStreetPartnersLlcMember2020-06-152020-06-150001433270ar:CashAwardsMember2021-06-3000014332702021-04-012021-06-3000014332702021-01-012021-06-3000014332702020-06-1500014332702021-06-3000014332702020-12-31iso4217:USDutr:MMBTUar:Dutr:MMBTUutr:Dutr:bblutr:Diso4217:USDutr:bbliso4217:USDxbrli:pureutr:ftar:lawsuitar:trancheutr:MMBTUxbrli:sharesiso4217:USDxbrli:sharesar:item

Table of Contents

Fee

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                    to                   

Commission file number: 001-36120

Graphic

ANTERO RESOURCES CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

80-0162034

(State or other jurisdiction of
incorporation or organization)

(IRS Employer Identification No.)

1615 Wynkoop Street, Denver, Colorado

80202

(Address of principal executive offices)

(Zip Code)

(303357-7310

(Registrant’s telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01

AR

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

Non-accelerated Filer

Smaller Reporting Company

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  Yes   No

The registrant had 313,864,919 shares of common stock outstanding as of July 23, 2021.

Table of Contents

TABLE OF CONTENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

    

2

PART I—FINANCIAL INFORMATION

4

Item 1.

    

Financial Statements (Unaudited)

4

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

38

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

58

Item 4.

Controls and Procedures

60

PART II—OTHER INFORMATION

61

Item 1.

Legal Proceedings

61

Item 1A.

Risk Factors

61

Item 2.

Unregistered Sales of Equity Securities

61

Item 6.

Exhibits

62

SIGNATURES

63

1

Table of Contents

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Some of the information in this Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. Words such as “may,” “assume,” “forecast,” “position,” “predict,” “strategy,” “expect,” “intend,” “plan,” “estimate,” “anticipate,” “believe,” “project,” “budget,” “potential,” or “continue,” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain such identifying words. When considering these forward-looking statements, investors should keep in mind the risk factors and other cautionary statements in this Quarterly Report on Form 10-Q. These forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include:

our ability to execute our business strategy;
our production and oil and gas reserves;
our financial strategy, liquidity and capital required for our development program;
our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness;
natural gas, natural gas liquids (“NGLs”), and oil prices;
impacts of world health events, including the coronavirus (“COVID-19”) pandemic;
timing and amount of future production of natural gas, NGLs, and oil;
our hedging strategy and results;
our ability to meet minimum volume commitments and to utilize or monetize our firm transportation commitments;
our future drilling plans;
our projected well costs and cost savings initiatives, including with respect to water handling services provided by Antero Midstream Corporation;
competition and government regulations;
pending legal or environmental matters;
marketing of natural gas, NGLs, and oil;
leasehold or business acquisitions;
costs of developing our properties;
operations of Antero Midstream Corporation;
general economic conditions;
credit markets;
uncertainty regarding our future operating results; and
our other plans, objectives, expectations and intentions contained in this Quarterly Report on Form 10-Q.

2

Table of Contents

We caution investors that these forward-looking statements are subject to all of the risks and uncertainties incidental to our business, most of which are difficult to predict and many of which are beyond our control. These risks include, but are not limited to, commodity price volatility, inflation, availability of drilling, completion, and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes, the uncertainty inherent in estimating natural gas, NGLs, and oil reserves and in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, conflicts of interest among our stockholders, impacts of world health events (including the COVID-19 pandemic), cybersecurity risks and the other risks described or referenced under the heading “Item 1A. Risk Factors” herein, including the risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”), which is on file with the Securities and Exchange Commission (“SEC”).

Reserve engineering is a process of estimating underground accumulations of natural gas, NGLs, and oil that cannot be measured in an exact manner. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data, and the price and cost assumptions made by reservoir engineers. In addition, the results of drilling, testing, and production activities, or changes in commodity prices, may justify revisions of estimates that were made previously. If significant, such revisions would change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of natural gas, NGLs, and oil that are ultimately recovered.

Should one or more of the risks or uncertainties described or referenced in this Quarterly Report on Form 10-Q occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.

All forward-looking statements, expressed or implied, included in this Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue.

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q.

3

Table of Contents

PART I—FINANCIAL INFORMATION

ANTERO RESOURCES CORPORATION

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

December 31,

June 30,

  

2020

  

2021

Assets

Current assets:

  

Cash and cash equivalents

$

4,541

Accounts receivable

28,457

36,145

Accrued revenue

425,314

493,740

Derivative instruments

105,130

1,056

Other current assets

15,238

14,958

Total current assets

574,139

550,440

Property and equipment:

Oil and gas properties, at cost (successful efforts method):

Unproved properties

1,175,178

1,076,562

Proved properties

12,260,713

12,479,785

Gathering systems and facilities

5,802

5,802

Other property and equipment

74,361

77,231

13,516,054

13,639,380

Less accumulated depletion, depreciation, and amortization

(3,869,116)

(4,095,539)

Property and equipment, net

9,646,938

9,543,841

Operating leases right-of-use assets

2,613,603

2,486,044

Derivative instruments

47,293

19,396

Investment in unconsolidated affiliate

255,082

237,668

Other assets

13,790

10,944

Total assets

$

13,150,845

12,848,333

Liabilities and Equity

Current liabilities:

  

Accounts payable

$

26,728

39,612

Accounts payable, related parties

69,860

85,471

Accrued liabilities

343,524

433,050

Revenue distributions payable

198,117

267,926

Derivative instruments

31,242

733,994

Short-term lease liabilities

266,024

269,611

Deferred revenue, VPP

45,257

41,453

Other current liabilities

2,302

11,980

Total current liabilities

983,054

1,883,097

Long-term liabilities:

Long-term debt

3,001,593

2,415,163

Deferred income tax liability

412,252

214,292

Derivative instruments

99,172

204,525

Long-term lease liabilities

2,348,785

2,217,336

Deferred revenue, VPP

156,024

137,322

Other liabilities

59,694

58,184

Total liabilities

7,060,574

7,129,919

Commitments and contingencies (Notes 13 and 14)

Equity:

Stockholders' equity:

Preferred stock, $0.01 par value; authorized - 50,000 shares; none issued

Common stock, $0.01 par value; authorized - 1,000,000 shares; 268,672 shares and 313,527 shares issued and outstanding as of December 31, 2020 and June 30, 2021, respectively

2,686

3,135

Additional paid-in capital

6,195,497

6,363,774

Accumulated deficit

(430,478)

(969,444)

Total stockholders' equity

5,767,705

5,397,465

Noncontrolling interests

322,566

320,949

Total equity

6,090,271

5,718,414

Total liabilities and equity

$

13,150,845

12,848,333

See accompanying notes to unaudited condensed consolidated financial statements.

4

Table of Contents

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended June 30,

  

2020

  

2021

 

Revenue and other:

Natural gas sales

$

367,415

626,520

Natural gas liquids sales

212,197

464,381

Oil sales

8,322

51,906

Commodity derivative fair value losses

(168,015)

(831,840)

Marketing

64,285

165,453

Amortization of deferred revenue, VPP

11,279

Gain on sale of assets

2,288

Other income (loss)

707

(619)

Total revenue

484,911

489,368

Operating expenses:

Lease operating

24,742

21,645

Gathering, compression, processing, and transportation

631,845

641,362

Production and ad valorem taxes

19,992

33,694

Marketing

113,053

198,994

Exploration

231

5,638

Impairment of oil and gas properties

37,350

9,303

Depletion, depreciation, and amortization

214,035

187,330

Accretion of asset retirement obligations

1,111

1,331

General and administrative (including equity-based compensation expense of $7,973 and $4,249 in 2020 and 2021, respectively)

38,403

32,177

Contract termination and rig stacking

11,071

844

Total operating expenses

1,091,833

1,132,318

Operating loss

(606,922)

(642,950)

Other income (expense):

Equity in earnings of unconsolidated affiliate

20,228

17,477

Transaction expense

(6,138)

(185)

Interest expense, net

(51,811)

(49,963)

Gain (loss) on early extinguishment of debt

39,171

(23,065)

Loss on convertible note equitization

(11,731)

Total other income (expense)

1,450

(67,467)

Loss before income taxes

(605,472)

(710,417)

Provision for income tax benefit

142,404

175,966

Net loss and comprehensive loss including noncontrolling interests

(463,068)

(534,451)

Less: net income (loss) and comprehensive income (loss) attributable to noncontrolling interests

236

(10,984)

Net loss and comprehensive loss attributable to Antero Resources Corporation

$

(463,304)

(523,467)

Loss per share—basic

$

(1.73)

(1.70)

Loss per share—diluted

$

(1.73)

(1.70)

Weighted average number of shares outstanding:

Basic

268,386

307,879

Diluted

268,386

307,879

See accompanying notes to unaudited condensed consolidated financial statements.

5

Table of Contents

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Unaudited)

(In thousands, except per share amounts)

Six Months Ended June 30,

  

2020

  

2021

Revenue and other:

Natural gas sales

$

778,497

1,346,889

Natural gas liquids sales

469,870

904,700

Oil sales

43,968

96,592

Commodity derivative fair value gains (losses)

397,818

(1,009,596)

Marketing

110,358

330,243

Amortization of deferred revenue, VPP

22,429

Gain on sale of assets

2,288

Other income

1,505

21

Total revenue

1,802,016

1,693,566

Operating expenses:

Lease operating

50,386

46,192

Gathering, compression, processing, and transportation

1,220,469

1,246,439

Production and ad valorem taxes

45,691

78,391

Marketing

206,326

361,071

Exploration

441

5,857

Impairment of oil and gas properties

126,570

43,365

Depletion, depreciation, and amortization

413,712

381,356

Accretion of asset retirement obligations

2,215

2,119

General and administrative (including equity-based compensation expense of $11,302 and $9,891 in 2020 and 2021, respectively)

69,624

76,251

Contract termination and rig stacking

11,071

935

Total operating expenses

2,146,505

2,241,976

Operating loss

(344,489)

(548,410)

Other income (expense):

Interest expense, net

(104,913)

(92,706)

Equity in earnings (loss) of unconsolidated affiliate

(107,827)

36,171

Gain (loss) on early extinguishment of debt

119,732

(66,269)

Loss on convertible note equitizations

(50,777)

Impairment of equity method investment

(610,632)

Transaction expense

(6,138)

(2,476)

Total other expenses

(709,778)

(176,057)

Loss before income taxes

(1,054,267)

(724,467)

Provision for income tax benefit

252,389

178,912

Net loss and comprehensive loss including noncontrolling interests

(801,878)

(545,555)

Less: net income (loss) and comprehensive income (loss) attributable to noncontrolling interests

236

(6,589)

Net loss and comprehensive loss attributable to Antero Resources Corporation

$

(802,114)

(538,966)

Loss per share—basic

$

(2.90)

(1.78)

Loss per share—diluted

$

(2.90)

(1.78)

Weighted average number of shares outstanding:

Basic

276,306

302,343

Diluted

276,306

302,343

See accompanying notes to unaudited condensed consolidated financial statements.

6

Table of Contents

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

(In thousands)

Additional

Accumulated

Common Stock

Paid-in

Earnings

Noncontrolling

Total

  

Shares

  

Amount

  

Capital

  

(Deficit)

  

Interests

  

Equity

Balances, December 31, 2019

295,941

$

2,959

6,130,365

837,419

6,970,743

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

178

2

(34)

(32)

Repurchases and retirements of common stock

(27,193)

(272)

(42,418)

(42,690)

Equity-based compensation

3,329

3,329

Net loss and comprehensive loss

(338,810)

(338,810)

Balances, March 31, 2020

268,926

2,689

6,091,242

498,609

6,592,540

Issuance of common units in Martica Holdings, LLC

300,000

300,000

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

464

5

(305)

(300)

Distributions to noncontrolling interest

(3,413)

(3,413)

Repurchases and retirements of common stock

(1,000)

(10)

(743)

(753)

Equity-based compensation

7,973

7,973

Net income (loss) and comprehensive income (loss)

(463,304)

236

(463,068)

Balances, June 30, 2020

268,390

$

2,684

6,098,167

35,305

296,823

6,432,979

Balances, December 31, 2020

268,672

$

2,686

6,195,497

(430,478)

322,566

6,090,271

Issuance of common shares

31,388

314

238,551

238,865

Issuance of common units in Martica Holdings, LLC

51,000

51,000

Equity component of 2026 Convertible Notes, net

(116,381)

(116,381)

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

1,130

11

(5,656)

(5,645)

Distributions to noncontrolling interest

(24,699)

(24,699)

Equity-based compensation

5,642

5,642

Net income (loss) and comprehensive income (loss)

(15,499)

4,395

(11,104)

Balances, March 31, 2021

301,190

3,011

6,317,653

(445,977)

353,262

6,227,949

Issuance of common shares

11,588

116

125,262

125,378

Equity component of 2026 Convertible Notes, net

(79,497)

(79,497)

Issuance of common stock upon vesting of equity-based compensation awards, net of shares withheld for income taxes

749

8

(3,893)

(3,885)

Distributions to noncontrolling interest

(21,329)

(21,329)

Equity-based compensation

4,249

4,249

Net loss and comprehensive loss

(523,467)

(10,984)

(534,451)

Balances, June 30, 2021

313,527

$

3,135

6,363,774

(969,444)

320,949

5,718,414

See accompanying notes to unaudited condensed consolidated financial statements.

7

Table of Contents

ANTERO RESOURCES CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

Six Months Ended June 30,

    

2020

  

2021

 

Cash flows provided by (used in) operating activities:

Net loss including noncontrolling interests

$

(801,878)

(545,555)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depletion, depreciation, amortization, and accretion

415,927

383,475

Impairments

737,202

43,365

Commodity derivative fair value losses (gains)

(397,818)

1,009,596

Gains (losses) on settled commodity derivatives

524,838

(64,951)

Payments for derivative monetizations

(4,569)

Gain on sale of assets

(2,288)

Equity-based compensation expense

11,302

9,891

Deferred income tax benefit

(252,389)

(178,912)

Equity in (earnings) loss of unconsolidated affiliate

107,827

(36,171)

Dividends of earnings from unconsolidated affiliate

85,511

74,040

Amortization of deferred revenue

(22,429)

Amortization of debt issuance costs, debt discount, debt premium and other

4,433

7,877

(Gain) loss on early extinguishment of debt

(119,732)

66,269

Loss on convertible note equitizations

50,777

Changes in current assets and liabilities:

Accounts receivable

(27,329)

(7,687)

Accrued revenue

63,023

(68,425)

Other current assets

789

631

Accounts payable including related parties

(21,182)

6,681

Accrued liabilities

15,722

64,499

Revenue distributions payable

(29,560)

69,809

Other current liabilities

(46)

16,349

Net cash provided by operating activities

316,640

872,272

Cash flows provided by (used in) investing activities:

Additions to unproved properties

(21,672)

(29,473)

Drilling and completion costs

(552,227)

(273,956)

Additions to other property and equipment

(1,234)

(2,320)

Settlement of water earnout

125,000

Proceeds from asset sales

2,351

Change in other liabilities

(77)

Change in other assets

525

597

Net cash used in investing activities

(449,608)

(302,878)

Cash flows provided by (used in) financing activities:

Repurchases of common stock

(43,443)

Issuance of senior notes

1,800,000

Repayment of senior notes

(496,541)

(1,234,698)

Borrowings (repayments) on bank credit facilities, net

374,000

(1,017,000)

Payment of debt issuance costs

(22,440)

Sale of noncontrolling interest

300,000

51,000

Distributions to noncontrolling interests in Martica Holdings LLC

(46,028)

Employee tax withholding for settlement of equity compensation awards

(331)

(9,530)

Convertible note equitizations

(85,648)

Other

(717)

(509)

Net cash provided by (used in) financing activities

132,968

(