Improved Capital Efficiency
Antero increased its production guidance while decreasing CapEx, with maintenance production target rising 5% from under 3.3 Bcf equivalent per day to over 3.4 Bcf equivalent per day, and maintenance capital requirements declined by 26% from $900 million to $663 million.
Strong Hedging Strategy
Antero added natural gas costless collars for 2026, with a floor price of $3.14 and a ceiling of $6.31, hedging approximately 20% of its expected natural gas volumes through 2026, reducing the free cash flow breakeven to $1.75 per Mcf.
NGL Pricing Premium
Antero's C3+ cost price averaged $37.92 per barrel in Q2, with realizations improving year-over-year from 50% to 59% of WTI, and expects premiums to the NGL benchmark to improve in the second half of the year.
Increasing LNG Exports
U.S. propane exports increased by 6% year-over-year, averaging over 1.8 million barrels per day, with new Gulf Coast export capacity leading to higher exports and strengthening Mont Belvieu NGL prices.
Debt Reduction and Share Buybacks
Antero generated $260 million of free cash flow in Q2, using nearly $200 million to reduce debt and $150 million for share repurchases, reducing total debt by 30% or $400 million year-to-date.