Highlights

  • Antero shows 129.96% one-year basic EPS growth, a P/E of 11.51 and PEG of 0.00.
  • Second quarter net income attributable to Antero was $278,657 thousand, against $156,585 thousand.
  • Second quarter production was 377 Bcfe, up 21%, with the HG Acquisition closed February 3.
  • Antero repurchased 1.1 million shares for $38 million; $877 million of capacity remains.

Antero Resources (NYSE:AR) shares were trading at USD 42.24 on October 28, 2026, up 0.33%, alongside one-year basic EPS growth of 129.96%, a trailing twelve-month P/E of 11.51 and an expected-basis PEG of 0.00, the three figures behind its place among undervalued growth stocks. In its latest disclosures, the Appalachian Basin natural gas and NGL producer closed its $2.8 billion HG Acquisition on February 3, completed the $800 million Utica Shale Divestiture on February 23, and reported second quarter 2026 net income attributable to Antero of $278,657 thousand in its quarterly report filed July 29.

Based in Denver, Colorado, and incorporated in Delaware, Antero Resources develops natural gas, NGLs and oil from unconventional reservoirs, primarily from a multi-year inventory of drilling locations in the Appalachian Basin, where it held approximately 858,000 net acres at June 30, 2026. It reports three segments: exploration and production, its equity method investment in Antero Midstream, and marketing. Marketing revenues come primarily from buying and selling third-party natural gas and NGLs.

Growth: Second Quarter Earnings, Production and Revenue

Net income attributable to Antero was $278,657 thousand in the second quarter against $156,585 thousand a year earlier, and $813,873 thousand for the six months against $364,556 thousand. Basic earnings per share were $0.90 against $0.50 in the quarter, and diluted earnings per share were $0.90 against $0.50.

Total revenue was $1,559,842 thousand in the second quarter against $1,297,493 thousand.

Combined production was 377 Bcfe against 312 Bcfe, up 21%. Natural gas production was 259 Bcf against 203 Bcf, up 28%. The average natural gas price before derivative settlements was $2.66 per Mcf against $3.39, and the C3+ NGL price was $44.33 per Bbl against $37.92. Gathering, compression, processing and transportation expense was $1.99 per Mcfe against $2.25, down 12%, which the company attributed primarily to the HG Acquisition properties.

Valuation: P/E of 11.51, PEG of 0.00 and Cash Flow

The P/E ratio of 11.51 is measured on trailing twelve-month earnings, and the PEG ratio of 0.00 on an expected basis. Net cash provided by operating activities was $1,297,907 thousand for the six months against $950,097 thousand.

On its second quarter call, management said the company had not planned to repurchase shares in the quarter but did so as the equity price became appealing to it, and that it would elevate the ranking of repurchases among its uses of cash at those levels.

Capital and Balance Sheet: Debt, Repurchases and Liquidity

Antero repurchased approximately 1.1 million shares at a total cost of $38 million in the three and six months ended June 30, 2026. Approximately $877 million of capacity remains under the $2.0 billion program authorized by the Board in 2022.

Total debt was $2,614,258 thousand at June 30, 2026, against $1,397,976 thousand at December 31, 2025. It included $182,000 thousand of commercial paper, $1,100,000 thousand under the three-year Term Loan maturing February 3, 2029, $750,000 thousand of 5.400% senior notes due 2036 issued January 28, 2026, and $600,000 thousand of 5.375% senior notes due 2030. The company established a commercial paper program of up to $1.65 billion on June 16, 2026, and on July 28, 2026 extended the Credit Facility maturity to July 30, 2031.

The company said it believes operating cash flow, commercial paper issuances and Credit Facility borrowings will cover its cash requirements for at least the next 12 months. Its 2026 capital budget is $1.1 billion to $1.3 billion.

Disclosed Risks and Outlook: Prices, Audits and Cost Targets

The company stated that natural gas, NGL and oil prices are volatile and beyond its control and may adversely affect its business, results and cash flows. Its West Virginia production tax filings for 2022 to 2024 are under audit, and an appeal of assessments for 2018 to 2020 is pending; the company believes the outcome will not have a material adverse effect. A Consent Decree on Clean Air Act notices of violation, with a penalty of approximately $3.8 million, was approved on March 31, 2026.

On the second quarter call, management said it forecasts cash costs to decline by over 25% to $2 per Mcfe by year-end 2028, and described about $300 million of annual margin improvements, including the volumetric production payment expiring in July 2027. It stated that the dissolution of Martica adds $60 million of annualized cash flow beginning in the third quarter of 2026 and that the 2026 production exit rate is expected to be 4.5 Bcfe per day. It also said that elevated freight rates for very large gas carriers create headwinds for U.S. LPG exports.