What Antero Resources Corporation told the SEC could break it.

Antero's revenue is fully exposed to inherently volatile natural gas, NGL and oil prices (FY2025 production revenue 57% gas / 43% NGLs and oil); SEC reference gas price swung from $2.13 to $3.39/MMBtu year-over-year.

“During 2024 and 2025, our production revenues were comprised of 44% and 57%, respectively, from the sale of natural gas and 56% and 43%, respectively, from the sale of NGLs and oil. Natural gas, NGLs and oil prices are inherently volatile and are influenced by many factors outside of our control.”

All of Antero's acreage and operations are in the Appalachian Basin (primarily West Virginia and Ohio), concentrating the company in a single U.S. producing basin.

“All of our acreage is located in the Appalachian Basin primarily in West Virginia and Ohio. Our Ohio acreage is included in the Utica Shale Divestiture. Approximately 86% of our net Appalachian Basin acreage is held by production.”

Antero faces an ongoing EPA Region III Notice of Violation alleging that combustion devices at certain facilities did not meet Clean Air Act / West Virginia air-permitting requirements.

“In June 2018, the Company received a Notice of Violation (“NOV”) from the EPA Region III for alleged violations of the federal Clean Air Act and the West Virginia State Implementation Plan. The NOV alleges that combustion devices at these facilities did not meet applicable air permitting requirements.”

Antero's gas sales/transportation are subject to FERC jurisdiction; under EPAct 2005 FERC can assess civil penalties up to ~$1M/day per violation, and Order No. 906 (Jan 2025) raised the maximum penalty amounts for inflation.

“Under the EPAct of 2005, FERC has the power to assess civil penalties of up to $1,000,000 (adjusted annually for inflation) per day for each violation of the NGA and the NGPA. In January 2025, FERC issued an order (Order No. 906) increasing the maximum civil penalty amounts under the NGA and NGPA to adjust for inflation.”