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Antero Resources Reports Fourth Quarter and Year-End 2013 Financial and Operating Results

   Antero Resources Reports Fourth Quarter and Year-End 2013 Financial and
                              Operating Results

PR Newswire

DENVER, Feb. 26, 2014

DENVER, Feb. 26, 2014 /PRNewswire/ --

(Logo: http://photos.prnewswire.com/prnh/20131101/LA09101LOGO)

Highlights:

  oAverage net production of 678 MMcfe/d in the fourth quarter of 2013, a
    115% increase over the prior year quarter
  oAdjusted net income of $73 million ($0.28 per share) for the fourth
    quarter of 2013, a 111% increase over the prior year quarter
  oEBITDAX from continuing operations of $215 million in the fourth quarter
    of 2013, a 149% increase over the prior year quarter
  oEBITDAX margin of $3.43 per Mcfe for the fourth quarter of 2013, a 17%
    increase over the prior year quarter
  oAverage net production of 522 MMcfe/d in 2013, a 119% increase over 2012
    production from continuing operations
  oAdjusted net income of $171 million ($0.65 per share) in 2013, a 215%
    increase over 2012
  oEBITDAX from continuing operations of $649 million in 2013, a 128%
    increase over the prior year
  oProved reserves of 7.6 Tcfe at year-end 2013, a 78% increase from 2012 at
    an all-in finding and development cost of $0.58 per Mcfe
  oFully engineered and audited 3P reserves of 35.0 Tcfe at year-end 2013, a
    62% increase from 2012
  oProduction guidance of 925 to 975 MMcfe/d for 2014 including 24,000 to
    26,000 Bbl/d of liquids (16% liquids), driven by a $1.8 billion drilling
    and completion capital budget

Antero Resources Corporation (NYSE: AR) ("Antero" or the "Company") today
released its fourth quarter and year-end 2013 financial and operating results.
The relevant financial statements are included in Antero's Annual Report on
Form10-K for the year ended December 31, 2013, which has been filed with the
Securities and Exchange Commission ("SEC").

Recent Developments

2014 Outlook Update

During the first two months of 2014 Antero's three operating areas in West
Virginia, Ohio and Pennsylvania have experienced severe winter weather. While
presenting a challenging environment for our personnel and operations, the
weather has not had an impact on our production outlook for 2014. Further,
due to our diversified portfolio of firm transportation and firm sales,
through the first two months of 2014, Antero's estimated average gas price
realizations, before the impact of hedges, have been at the high end of our
2014 guidance of $0.00 to $0.10 per Mcf premium to NYMEX. Our firm
transportation and sales commitments will increase to over 1.6 Bcf/d by
year-end 2014.

Additionally, Antero has changed the classification of ethane firm
transportation in its guidance to include this fee as a component of cash
production expense. Previously this fee was treated as a reduction of
realized NGL sales price which resulted in a lower assumed Y-grade C3+ price
as a percentage of WTI oil price. This change results in increased cash
production expense and increased assumed NGL price as a percentage of WTI oil
price. There is no impact to expected earnings or cash flow due to this
change in classification. Accordingly, Antero is revising its 2014 guidance
as follows:

                                      Previous             Current
Natural gas liquids realized price    50% to 52% of WTI    53% to 57% of WTI
Cash production expense(1)            $1.40 – $1.50/Mcfe   $1.50 – $1.60/Mcfe
(1) Includes lease operating expenses, gathering, compression and
transportation expenses and production taxes.

Antero confirms previously revised guidance for all other categories as
summarized below:

2014 Guidance
Total Net Production                                925 – 975 MMcfe/d
 Net Natural Gas Production                        780 – 820 MMcf/d
 Net Liquids Production                            24,000 – 26,000 Bbl/d
G&A                                                 $0.25 – $0.30/Mcfe
Natural gas realized price premium to NYMEX(1)      $0.00 – $0.10/Mcf
Oil realized price differential to NYMEX            $(10.00) – $(12.00)/Bbl
(1) Antero's processed tailgate and unprocessed gas production is
greater than 1000 Btu on average.

Year-End 2013 Proved and 3P Reserves

On February 4, 2014, Antero announced that proved reserves at December 31,
2013 were 7.6 Tcfe, a 78% increase compared to proved reserves at December 31,
2012, in each case assuming ethane rejection. Finding and development costs
for proved reserve additions from all sources including costs incurred for
drilling capital, acquisitions, leasehold additions and all price and
performance revisions averaged $0.58 per Mcfe. Drill bit only finding and
development costs averaged $0.45 per Mcfe for 2013. Proved developed reserves
at year-end 2013 totaled 2.0 Tcfe, a 117% increase over 2012. Additionally,
the percentage of proved reserves classified as proved developed increased
from 22% at year-end 2012 to 27% as of December 31, 2013. The Company's fully
engineered and audited proved, probable and possible ("3P") reserves at
year-end 2013 totaled 35.0 Tcfe, which represents a 62% increase compared to
last year, also assuming ethane rejection.

2014 Capital Budget

On January 29, 2014, Antero announced that it expects to invest approximately
$2.6 billion in 2014 for drilling and completion, midstream and leasehold
activities. Antero's capital budget for 2014 includes $1.8 billion for
drilling and completion, $600 million for the expansion of midstream
facilities, including $200 million for fresh water distribution
infrastructure, and $200 million for core leasehold acreage acquisitions. The
midstream budget assumes the completion of the IPO of the Company's midstream
business as an MLP.

Operating Update

On January 27, 2014, Antero provided a fourth quarter 2013 operating update.
The update included detail on the continued encouraging results from the
Company's SSL program in the Marcellus Shale, strong initial production rates
on five additional Utica Shale wells and 30-day production rates on the first
11 core area Utica wells. Additionally, it was announced that the first
compressor station in the Utica serving Antero's production was placed into
service in late January 2014.

Chairman and CEO Paul M. Rady, commented, "2013 was a historic year for Antero
as we took the Company public in the largest U.S. independent E&P IPO in
history. We also grew our fully engineered and audited 3P reserves by 62% to
35.0 Tcfe and average net daily production by 115% to 678 MMcfe/d. All of
this was accomplished with peer group leading 3-year development costs per
Mcfe, 2013 average price realizations and EBITDAX margin. Since our IPO in
October 2013, we have continued to set the stage for our high growth business
model by committing to additional firm transportation and processing, hedging
prices on additional natural gas volumes and expanding our liquids-rich
acreage position in the Marcellus and Utica Shales."

Fourth Quarter 2013 Financial Results

For the three months ended December 31, 2013, Antero reported a net loss from
continuing operations of $225 million, or $(0.86) per basic and diluted share,
compared to net income of $85 million in the fourth quarter for 2012. The
GAAP net loss for the fourth quarter of 2013 included the following items:

  oNon-cash gains on unsettled hedges of $152 million ($94 million net of
    tax)
  oNon-cash stock compensation expense of $365 million ($365 million net of
    tax)
  oLoss on early extinguishment of debt of $43 million ($26 million net of
    tax)

Without the effect of these items, the Company's results for the fourth
quarter of 2013 were as follows:

  oAdjusted net income from continuing operations of $73 million, or $0.28
    per basic diluted share, compared to $35 million in the fourth quarter of
    2012
  oEBITDAX of $215 million compared to $86 million in the fourth quarter of
    2012
  oCash flow from continuing operations before changes in working capital of
    $174 million compared to $67 million in the fourth quarter of 2012

Net production for the fourth quarter of 2013 averaged 678 MMcfe/d, an
increase of 20% from the third quarter of 2013 and 115% from continuing
operations in the fourth quarter of 2012. Net production was comprised of 611
MMcf/d of natural gas (90%), 10,064 Bbl/d of natural gas liquids ("NGL"s) (9%)
and 1,126 Bbl/d of crude oil (1%). Fourth quarter 2013 net liquids production
of 11,190 Bbl/d increased 42% from the third quarter of 2013. The net
production increase was primarily driven by production from 18 new Marcellus
wells and one new Utica well brought on line in the fourth quarter of 2013.

Fourth quarter 2013 net liquids production was negatively impacted by a
start-up delay of two compressor stations originally expected to be completed
and placed in service in Ohio during the fourth quarter of 2013. The first of
the two stations was placed into service in late January, providing 120 MMcf/d
of compression, with the second station expected to be placed on line late in
the first quarter of 2014.

Average natural gas price before hedging increased 5% from the prior year
quarter to $3.79 per Mcf, a $0.19 per Mcf premium to NYMEX, due to an increase
in Antero's average residue gas heating value or Btu partially offset by wider
Appalachian index basis. Approximately 53% of Antero's fourth quarter 2013
natural gas revenue was realized at the Columbia Gas Transmission (TCO) index
price at a $0.04 per Mcf negative differential to NYMEX but at a net $0.35 per
Mcf positive differential to NYMEX after Btu upgrade due to ethane remaining
in the natural gas stream. The Company's remaining natural gas revenue was
realized at various other index pricing points at a $0.36 per Mcf negative
differential to NYMEX but at only a net $0.01 per Mcf negative differential to
NYMEX after Btu upgrade.

Average realized Y-grade C3+ NGL price for the fourth quarter of 2013 was
$56.04 per barrel, or 58% of NYMEX WTI oil price, and average realized oil
price was $88.33 per barrel. Average natural gas-equivalent price including
NGLs and oil, but excluding hedge settlements, increased 18% to $4.39 per Mcfe
from the prior year quarter.

Average realized natural gas price including hedges was $4.71 per Mcf for the
fourth quarter of 2013, a 4% decrease as compared to the fourth quarter of
2012. Average natural gas-equivalent price including NGLs, oil and hedge
settlements increased by 6% to $5.26 per Mcfe for the fourth quarter of 2013
as compared to the fourth quarter of 2012. For the fourth quarter of 2013,
Antero realized hedging gains of $54 million, or $0.87 per Mcfe.

Revenue for the fourth quarter of 2013 was $480 million as compared to $235
million for the fourth quarter of 2012. Revenue for the fourth quarter of
2013 included a $152 million non-cash gain on unsettled hedges while the
fourth quarter of 2012 included a $90 million non-cash gain on unsettled
hedges. Liquids production contributed 22% of natural gas, NGLs and oil
revenue before hedges in the fourth quarter of 2013 compared to 4% during the
fourth quarter of 2012. Non-GAAP adjusted net revenue increased 127% to $328
million compared to the fourth quarter of 2012 (including cash-settled hedge
gains and losses but excluding unsettled hedge gains and losses). For a
reconciliation of adjusted net revenue to operating revenue, the most
comparable GAAP measure, please read "Non-GAAP Financial Measures."

Per unit cash production expense (lease operating, gathering, compression,
processing and transportation, and production tax) for the fourth quarter of
2013 was $1.52 per Mcfe which is a 4% decrease compared to $1.58 per Mcfe in
the prior year quarter. The decrease was primarily driven by first production
in Ohio, which has a lower production tax rate than West Virginia. Per unit
general and administrative expense for the fourth quarter of 2013, excluding
non-cash stock compensation expense, was $0.31 per Mcfe, a 34% decrease from
the fourth quarter of 2012. The decrease was primarily driven by the increase
in net production. Per unit depreciation, depletion and amortization expense
decreased 5% from the prior year quarter to $1.21 per Mcfe, primarily driven
by an increase in proved reserves.

EBITDAX from continuing operations of $215million for the fourth quarter of
2013 was 149% higher than the prior year quarter due to increased production
and revenue. EBITDAX margin for the quarter was $3.43 per Mcfe representing a
17% increase over the prior year quarter. For the fourth quarter of 2013,
cash flow from continuing operations before changes in working capital
increased 159% from the prior year to $174million.

The Company had a net loss from continuing operations of $225 million ($(0.86)
per basic and diluted share) on a GAAP basis for the fourth quarter of 2013,
including $152 million of non-cash gains on unsettled hedges, $365 million of
non-cash stock compensation expense and $43 million of losses on early
extinguishment of debt. Excluding these non-cash items and $2 million of
other non-cash items, net of tax, adjusted net income was $73 million ($0.28
per basic and diluted share) for 2013 representing a 111% increase over the
prior year.

For a description of EBITDAX and EBITDAX margin from continuing operations,
cash flow from continuing operations before changes in working capital and
adjusted net income and reconciliations to their nearest comparable GAAP
measures, please read "Non-GAAP Financial Measures."

2013 Financial Results

Net production for 2013 averaged 522 MMcfe/d, an increase of 119% from 2012
net production from continuing operations. Net production was comprised of
484 MMcf/d of natural gas (92%), 5,815 Bbl/d of NGLs (7%) and 618 Bbl/d of
crude oil (1%). 2013 net liquids production of 6,433 Bbl/d increased 2,494%
over 2012 liquids production from continuing operations. The net production
increase was primarily driven by production from 103 new Marcellus wells and
11 new Utica wells brought on line in 2013.

Average natural gas price before hedges increased 30% from the prior year to
$3.90 per Mcf, a $0.25 per Mcf premium to NYMEX, due to an increase in
Antero's average residue gas heating value or Btu. Approximately 67% of
Antero's 2013 natural gas revenue was realized at the Columbia Gas
Transmission (TCO) index price at a $0.06 per Mcf negative differential to
NYMEX but at a net $0.37 per Mcf premium to NYMEX after Btu upgrade due to
ethane remaining in the natural gas stream. The Company's remaining natural
gas revenue was realized at various other index pricing points at a $0.38 per
Mcf negative differential to NYMEX but at a net $0.01 per Mcf premium to NYMEX
after Btu upgrade.

Average realized Y-grade C3+ NGL price for 2013 was $52.61 per barrel, or 54%
of the NYMEX WTI oil price, and average realized oil price was $91.27 per
barrel. Average natural gas-equivalent price including NGLs and oil, but
excluding hedge settlements, increased 42% to $4.31 per Mcfe from the prior
year.

Average realized natural gas price including hedges was $4.82 per Mcf for
2013, a 5% decrease as compared to 2012. Average natural gas-equivalent price
including NGLs, oil and hedge settlements, increased by 2% to $5.17 per Mcfe
for 2013 as compared to 2012. For 2013, Antero realized hedging gains of $164
million or $0.86 per Mcfe.

Revenue for 2013 was $1.3 billion as compared to $736 million for the prior
year. Revenue for 2013 included a $328 million non-cash gain on unsettled
hedges while 2012 included a $1 million non-cash gain on unsettled hedges.
Liquids production contributed 16% of natural gas, NGLs and oil revenue before
hedges in 2013 compared to 2% during 2012. Non-GAAP adjusted net revenue
increased 122% to $985 million compared to 2012 (including cash-settled hedge
gains and losses but excluding unsettled hedge gains and losses). For a
reconciliation of adjusted net revenue to operating revenue, the most
comparable GAAP measure, please read "Non-GAAP Financial Measures."

Per unit cash production expense (lease operating, gathering, compression,
processing and transportation, and production tax) for 2013 was $1.46 per Mcfe
which is a 9% increase compared to $1.34 per Mcfe in the prior year. The
increase was primarily driven by processing costs associated with liquids
production for the entire year in 2013 compared to 2012 when processing only
commenced in the fourth quarter. Per unit general and administrative expense
for 2013, excluding non-cash stock compensation expense, was $0.32 per Mcfe, a
38% decrease from 2012. The decrease was primarily driven by the increase in
net production. Per unit depreciation, depletion and amortization expense
increased 5% from the prior year to $1.23 per Mcfe, primarily driven by higher
depreciation on gathering and fresh water distribution assets as the Company
continued to build out these systems in the rich gas areas of the Marcellus
Shale and Utica Shale.

EBITDAX from continuing operations of $649million for 2013 was 128% higher
than the prior year due to increased production and revenue. EBITDAX margin
for 2013 was $3.39 per Mcfe representing a 5% increase from the prior year.
For 2013, cash flow from continuing operations before changes in working
capital increased 211% from the prior year to $493million.

The Company had a net loss from continuing operations of $24 million ($(0.09)
per basic and diluted share) on a GAAP basis for 2013, including $328 million
of non-cash gains on unsettled hedges, $365 million of non-cash stock
compensation expense and $43 million of losses on early extinguishment of
debt. Excluding these non-cash items and $12 million of other non-cash items,
net of tax, adjusted net income was $171 million ($0.65 per basic and diluted
share) for 2013 representing a 215% increase over the prior year.

For a description of EBITDAX and EBITDAX margin from continuing operations,
cash flow from continuing operations before changes in working capital and
adjusted net income and reconciliations to their nearest comparable GAAP
measures, please read "Non-GAAP Financial Measures."

Capital Spending

Antero's drilling and completion costs for the twelve months ended December
31, 2013 were $1.62 billion. In addition, during 2013, $390 million was
expended on Appalachian gathering systems and compression, $204 million on
Antero's fresh water distribution projects in the Marcellus and Utica Shale,
and $456 million on leasehold acquisitions including $15 million for proved
property acquisitions.

Antero Operations

All operational figures are as of the date of this release unless otherwise
noted.

Current E&P Operations – Antero currently has 85 gross (79 net) operated wells
in various stages of drilling, completion, or waiting on completion in the
Marcellus and Utica Shale projects.

Antero is currently operating 15 drilling rigs in the Marcellus Shale play,
including four intermediate rigs that drill the vertical section of planned
horizontal wells to the kick-off point at approximately 6,000 feet. Antero
has 65 gross (64 net) horizontal wells either in the process of drilling,
completing or waiting on completion in the Marcellus. The Company currently
has six frac crews working in West Virginia and plans to add a seventh crew in
the next month.

Additionally, Antero is currently operating five drilling rigs, including one
intermediate rig, in the highly-rich gas and highly-rich gas/condensate
windows of the core of the Utica Shale play in southeastern Ohio. In addition
to its 18 wells on line, Antero has 20 gross (15 net) wells either in the
process of drilling, completing, or waiting on completion in the Utica.
Antero has two frac crews currently working in Ohio.

Antero holds approximately 350,000 net acres in the southwestern core of the
Marcellus Shale play and approximately 70% of Antero's Marcellus leasehold is
prospective for processable rich gas assuming an 1100 Btu cutoff.
Additionally, Antero holds approximately 106,000 net acres of leasehold in the
core of the Utica Shale play and approximately 75% of Antero's Utica leasehold
is prospective for processable rich gas also assuming an 1100 Btu cutoff.

Processing Update – In the Marcellus Shale, Antero has access to a total of
600 MMcf/d of cryogenic processing capacity at the MarkWest Sherwood
processing facility located in Doddridge County, West Virginia. Antero has
committed to two additional 200 MMcf/d cryogenic processing plants, Sherwood
IV and V. Sherwood IV is expected to go on line in the third quarter of 2014
and Sherwood V is expected to go on line in the fourth quarter of 2014. These
commitments provide Antero access to a total of 1 Bcf/d of Marcellus cryogenic
processing capacity by year-end 2014. Ethane is currently being rejected at
the processing facility and left in the gas stream. 

In the Utica Shale, the Company's rich gas production continues to flow into
the Seneca processing complex. MarkWest is currently operating two 200 MMcf/d
cryogenic plants, Seneca I and II. Antero has fully committed to Seneca I,
and has committed to two additional 200 MMcf/d cryogenic processing plants,
Seneca III and IV. Seneca III is expected to go on line in the second quarter
of 2014 and Seneca IV is expected to go on line in the first quarter of 2015.
Additionally, Antero has 50 MMcf/d of interim capacity at the Seneca II plant
until Seneca IV is placed into service. These commitments provide Antero
access to a total of 600 MMcf/d of Utica cryogenic processing capacity by the
first quarter of 2015. Ethane is currently being rejected at the processing
facility and left in the gas stream.

Financial Position and Liquidity

As of December 31, 2013, the Company's total debt was $2.1 billion of which
$288 million were borrowings outstanding under the Company's credit facility.
Total lender commitments under the credit facility are $1.5 billion and can be
increased to the borrowing base amount of $2.0 billion upon bank approval. As
of December 31, 2013, Antero also had $32 million in letters of credit
outstanding, resulting in approximately $1.2 billion of available liquidity
and $1.7 billion of unused borrowing base capacity.

Hedge Update

As of today, Antero has hedged 1,333 Bcfe of future production using fixed
price swaps covering the period from January 1, 2014 through December 2019 at
an average index price of $4.62/MMBtu and $96.54/Bbl. Over 75% of Antero's
estimated 2014 production is hedged at an average index price of $4.64/MMBtu
and $96.54/Bbl. Approximately 50% of Antero's financial hedge portfolio is
made up of NYMEX hedges and 50% is tied to the Appalachian Basin or Gulf Coast
pricing. Antero physically delivers a substantial portion of its gas
production through direct firm transportation to Henry, Louisiana, the index
for NYMEX pricing, which eliminates basis risk on the Company's NYMEX hedges.
Antero has 10 different counterparties to its hedge contracts, all of which
are lenders in Antero's bank credit facility.

The following table summarizes Antero's hedge positions held as of February
26, 2014:

                                       
               Natural gas equivalent
                                       Equivalent
Calendar Year  MMBtu/day               index price
2014           728,833                 $4.92
2015           550,000                 $4.91
2016           642,500                 $4.71
2017           740,000                 $4.34
2018           630,000                 $4.65
2019           357,500                 $4.46

Conference Call

A conference call is scheduled on Thursday, February 27 at 11:00 a.m. ET.
Topics of the teleconference will include financial results, operational
results, and other matters with respect to the year and fourth quarter of
2013. A brief Q&A session for security analysts will immediately follow the
results discussion. To participate in the call, dial in at 877-418-5260
(U.S.), 866-605-3852 (Canada), or 412-717-9589 (International) and reference
passcode 10040960. A simultaneous webcast of the call may be accessed over
the internet at www.anteroresources.com. The webcast will be archived for
replay on the Company's website until March 10.

Presentation

An updated presentation will be posted to the Company's website before the
February 27 conference call. The presentation can be found at
www.anteroresources.com on the homepage. Information on the Company's website
does not constitute a portion of this press release.

Non-GAAP Financial Measures

Adjusted net revenue as set forth in this release represents operating revenue
adjusted for certain non-cash items, including unsettled hedge gains and
losses and gains and losses on asset sales. Antero believes that adjusted net
revenue is useful to investors in evaluating operational trends of the Company
and its performance relative to other oil and gas producing companies.
Adjusted net revenue is not a measure of financial performance under GAAP and
should not be considered in isolation or as a substitute for total operating
revenue as an indicator of financial performance. The following table
reconciles total operating revenue to adjusted net revenue:

                                Threemonthsended      Twelve months ended
                                December 31,
                                                        December 31,
                                2012       2013         2012         2013
Total operating revenue         $ 235,090  $ 480,014  $ 735,718    $ 1,313,134
Hedge gains                     (127,336)  (206,179)    (179,546)    (491,689)
Cash receipts for settled       36,985     54,259       178,491      163,570
hedges
Gain on sale of assets          —          —            (291,190)    —
Adjusted net revenue            $ 144,739  $ 328,094  $ 443,473    $ 985,015

Adjusted net income as set forth in this release represents income from
continuing operations, adjusted for certain non-cash items. Antero believes
that adjusted net income is useful to investors in evaluating operational
trends of the Company and its performance relative to other oil and gas
producing companies. Adjusted net income is not a measure of financial
performance under GAAP and should not be considered in isolation or as a
substitute for net income (loss) from continuing operations as an indicator of
financial performance. The following table reconciles net income (loss) from
continuing operations to adjusted net income from continuing operations:

                             Threemonthsended         Twelve months ended
                             December 31,               December 31,
                             2012        2013         2012           2013
Net income (loss) from       $ 84,845    $ (225,177)  $ 225,276    $ (24,187)
continuing operations
Non-cash gains
on unsettled hedges, net of    (55,114)    (94,190)     (644)        (203,434)
tax
Impairment of unproved         4,911       846          7,363        6,775
properties, net of tax
Stock compensation, net of     —           365,157      —            365,157
tax
Loss on early
extinguishment of debt, net    —           26,392       —            26,392
of tax
Gain on sale of assets, net    —           —            (177,626)    —
of tax
Other, net of tax              18          166          62           660
Adjusted net income from     $ 34,660    $ 73,194     $ 54,431     $ 171,363
continuing operations

Cash flow from continuing operations before changes in working capital as
presented in this release represents net cash provided by operating activities
before changes in working capital. Cash flow from continuing operations
before changes in working capital is widely accepted by the investment
community as a financial indicator of an oil and gas company's ability to
generate cash to internally fund exploration and development activities and to
service debt. Cash flow from continuing operations before changes in working
capital is also useful because it is widely used by professional research
analysts in valuing, comparing, rating and providing investment
recommendations of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research in making
investment decisions. Cash flow from continuing operations before changes in
working capital is not a measure of financial performance under GAAP and
should not be considered in isolation or as a substitute for cash flows from
operating, investing, or financing activities, as an indicator of cash flows,
or as a measure of liquidity.

The following table reconciles net cash provided by operating activities to
cash flow from continuing operations before changes in working capital as used
in this release:

                                Threemonthsended       Twelve months ended
                                December 31,
                                                         December 31,
                                2012        2013         2012         2013
Net cash provided by operating  $ 106,855   $ 202,770  $ 332,255    $ 534,707
activities
Net change in working capital   (15,377)    (28,385)     (24,887)     (41,914)
Cash flow from operations
before changes                    91,478      174,385    307,368      492,793
inworkingcapital
Cash flow from discontinued
operations before changes         (24,105)    —          (148,951)    —
inworkingcapital
Cash flow from continuing                                          
operations before changes       $ 67,373    $ 174,385    158,417      492,793
inworkingcapital                                     $            $

EBITDAX is a non-GAAP financial measure that Antero defines as net income
(loss) from continuing operations after adjusting for those items shown in the
table below. EBITDAX, as used and defined by the Company, may not be
comparable to similarly titled measures employed by other companies and is not
a measure of performance calculated in accordance with GAAP. EBITDAX should
not be considered in isolation or as a substitute for operating income, net
income or loss, cash flows from operating, investing and financing activities,
or other income or cash flow statement data prepared in accordance with GAAP.
EBITDAX provides no information regarding a company's capital structure,
borrowings, interest costs, capital expenditures, and working capital movement
or tax position. EBITDAX does not represent funds available for discretionary
use because those funds may be required for debt service, capital
expenditures, working capital, income taxes, franchise taxes, exploration
expenses, and other commitments and obligations. However, Antero's management
team believes EBITDAX is useful to an investor in evaluating the Company's
financial performance because this measure:

  ois widely used by investors in the oil and gas industry to measure a
    company's operating performance without regard to items excluded from the
    calculation of such term, which can vary substantially from company to
    company depending upon accounting methods and book value of assets,
    capital structure and the method by which assets were acquired, among
    other factors;
  ohelps investors to more meaningfully evaluate and compare the results of
    Antero's operations from period to period by removing the effect of its
    capital structure from its operating structure; and
  ois used by the Company's management team for various purposes, including
    as a measure of operating performance, in presentations to its board of
    directors, as a basis for strategic planning and forecasting and by its
    lenders pursuant to covenants under its credit facility and the indentures
    governing the Company's senior notes.

There are significant limitations to using EBITDAX as a measure of
performance, including the inability to analyze the effect of certain
recurring and non-recurring items that materially affect Antero's net income
or loss, the lack of comparability of results of operations of different
companies and the different methods of calculating EBITDAX reported by
different companies. The following table represents a reconciliation of the
Company's net income (loss) from continuing operations to EBITDAX from
continuing operations, a reconciliation of income (loss) from discontinued
operations to EBITDAX from discontinued operations, a reconciliation of total
EBITDAX to net cash provided by operating activities and a reconciliation of
realized price before cash receipts for settled hedges to EBITDAX Margin:

                         Three months ended          Twelve months ended
                         December 31,                December 31,
                         2012          2013          2012          2013
Net income (loss) from   $ 84,845      $ (225,177)   $ 225,276     $ (24,187)
continuing operations
Hedge fair value gains     (127,336)     (206,179)     (179,546)     (491,689)
Net cash receipts on       36,985        54,259        178,491       163,570
settled hedges
Gain on sale of assets     —             —             (291,190)     —
Interest expense           26,464        35,777        97,510        136,617
Loss on early              —             42,567        —             42,567
extinguishment of debt
Provision for income       12,704        65,515        121,229       186,210
taxes
Depreciation,
depletion,                 36,767        75,494        102,127       234,941
amortization and
accretion
Impairment of unproved     8,051         1,364         12,070        10,928
properties
Exploration expense        6,763         5,238         14,675        22,272
Stock compensation         —             365,280       —             365,280
expense
Other                      1,076         1,029         4,068         2,849
EBITDAX from               86,319        215,167       284,710       649,358
continuing operations
Income (loss) from
discontinued               (91,880)      2,157         (510,345)     5,257
operations
Hedge fair value gains     —             —             (46,358)      —
Net cash receipts on       12,430        —             92,166        —
settled hedges
Loss (gain) on sale of     368,713       (3,506)       795,945       (8,506)
assets
Provision (benefit)        (276,638)     1,349         (272,553)     3,249
for income taxes
Depreciation,
depletion,                 11,470        —             89,124        —
amortization and
accretion
Impairment of unproved     —             —             962           —
properties
Exploration expense        157           —             664           —
EBITDAX from
discontinued               24,252        —             149,605       —
operations
Total EBITDAX              110,571       215,167       434,315       649,358
Interest expense and       (26,464)      (43,582)      (97,510)      (144,422)
other
Exploration expense        (7,427)       (5,238)       (15,339)      (22,272)
Changes in current         15,377        28,385        24,887        41,914
assets and liabilities
Other                      14,798        8,038         (14,098)      10,129
Net cash provided by     $ 106,855     $ 202,770     $ 332,255     $ 534,707
operating activities
EBITDAX margin from
continuing operations:
Realized price before
cash receipts for        $ 3.71        $ 4.39        $ 3.03        $ 4.31
settled hedges
Lease operating            0.07          0.07          0.07          0.05
expense
Transportation costs       1.18          1.13          1.04          1.15
Production taxes           0.33          0.32          0.23          0.26
General and                0.47          0.31          0.52          0.32
administrative
EBITDAX margin, before
cash receipts for          1.66          2.56          1.17          2.53
settled derivatives
Cash receipts for          1.27          0.87          2.05          0.86
settled hedges
EBITDAX margin           $ 2.93        $ 3.43        $ 3.22        $ 3.39

Antero Resources is an independent oil and natural gas company engaged in the
acquisition, development and production of unconventional oil and liquids-rich
natural gas properties located in the Appalachian Basin in West Virginia, Ohio
and Pennsylvania. The Company's website is located at www.anteroresources.com.

This release includes "forward-looking statements". Such forward-looking
statements are subject to a number of risks and uncertainties, many of which
are beyond Antero's control. All statements, other than historical facts
included in this release, are forward-looking statements. All forward-looking
statements speak only as of the date of this release. Although Antero believes
that the plans, intentions and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance that these
plans, intentions or expectations will be achieved. Therefore, actual outcomes
and results could materially differ from what is expressed, implied or
forecast in such statements.

The SEC permits oil and gas companies to disclose probable and possible
reserves in their filings with the SEC. Antero does not plan to include
probable and possible reserve estimates in its filings with the SEC. Antero
has provided internally generated estimates that have been audited by its
third party reserve engineer in this release. Antero's estimate of proved,
probable and possible reserves is provided in this release because management
believes it is useful information that is widely used by the investment
community in the valuation, comparison and analysis of companies. However,
the Company notes that the SEC prohibits companies from aggregating proved,
probable and possible reserves in filings with the SEC due to the different
levels of certainty associated with each reserve category.

Antero cautions you that these forward-looking statements are subject to all
of the risks and uncertainties, most of which are difficult to predict and
many of which are beyond the Company's control, incident to the exploration
for and development, production, gathering and sale of natural gas, NGLs and
oil. These risks include, but are not limited to, commodity price volatility,
inflation, lack of availability of drilling and production equipment and
services, environmental risks, drilling and other operating risks, regulatory
changes, the uncertainty inherent in estimating natural gas and oil reserves
and in projecting future rates of production, cash flow and access to capital,
the timing of development expenditures, and the other risks described under
the heading "Item 1A. Risk Factors" in Antero's Annual Report on Form 10-K for
the year ended December 31, 2013.

ANTERO RESOURCES CORPORATION

Consolidated Balance Sheets

December 31, 2012 and 2013

(In thousands)
                                           2012            2013
Assets
Current assets:
Cash and cash equivalents                  $        $         
                                           18,989         17,487
Accounts receivable—trade, net of
allowance for doubtful accounts of $174    21,296          30,610
and $1,251 in 2012 and 2013, respectively
Notes receivable—short‑term portion        4,555           2,667
Accrued revenue                            46,669          96,825
Derivative instruments                     160,579         183,000
Other                                      22,518          2,975
Total current assets                       274,606         333,564
Property and equipment:
Natural gas properties, at cost
(successful efforts method):
Unproved properties                        1,243,237       1,513,136
Proved properties                          1,682,297       3,621,672
Fresh water distribution systems           6,835           231,684
Gathering systems and facilities           168,930         584,626
Other property and equipment               9,517           15,757
                                           3,110,816       5,966,875
Less accumulated depletion, depreciation,  (173,343)       (407,219)
and amortization
Property and equipment, net                2,937,473       5,559,656
Derivative instruments                     371,436         677,780
Notes receivable—long‑term portion         2,667           —
Other assets, net                          32,611          42,581
Total assets                               $          $      
                                           3,618,793       6,613,581
Liabilities and Equity
Current liabilities:
Accounts payable                           $         $        
                                           181,478        370,640
Accrued liabilities                        58,829          77,126
Revenue distributions payable              46,037          96,589
Current debt                               25,000          —
Deferred income tax liability              62,620          69,191
Derivative instruments                     —               646
Other                                      2,332           8,037
Total current liabilities                  376,296         622,229
Long‑term liabilities:
Long‑term debt                             1,444,058       2,078,999
Deferred income tax liability              91,692          278,580
Other long‑term liabilities                33,010          35,113
Total liabilities                          1,945,056       3,014,921
Stockholders'/Members' Equity:
Members' equity of Antero ResourcesLLC    1,460,947       —
Common stock of Antero Resources
Corporation, $0.01 par value;              —               2,620
authorized—1,000,000,000 shares; issued
and outstanding 262,049,659 shares
Preferred stock of Antero Resources
Corporation, $0.01 par value;              —               —
authorized—50,000,000 shares; none issued
Additional paid‑in capital                 —               3,402,180
Accumulated earnings                       212,790         193,860
Total equity                               1,673,737       3,598,660
Total liabilities and equity               $          $      
                                           3,618,793       6,613,581



ANTERO RESOURCES CORPORATION

Consolidated Statements of Operations and Comprehensive Income (Loss)

Years Ended December 31, 2011, 2012 and 2013

(In thousands)
                                                                        2011      2012      2013
Revenue:
Natural gas sales                                                       $     $     $  
                                                                         195,116 259,743  689,198
Natural gas liquids sales                                               —         3,719     111,663
Oil sales                                                               173       1,520     20,584
Commodity derivative fair value gains                                   496,064   179,546   491,689
Gain on sale of gathering system                                        —         291,190   —
Total revenue                                                           691,353   735,718   1,313,134
Operating expenses:
Lease operating                                                         4,608     6,243     9,439
Gathering, compression, processing, and transportation                  37,315    91,094    218,428
Production and ad valorem taxes                                         11,915    20,210    50,481
Exploration                                                             4,034     14,675    22,272
Impairment of unproved properties                                       4,664     12,070    10,928
Depletion, depreciation, and amortization                               55,716    102,026   233,876
Accretion of asset retirement obligations                               76        101       1,065
General and administrative (including $365,280 of stock compensation in 33,342    45,284    425,438
2013)
Loss on sale of assets                                                  8,700     —         —
Total operating expenses                                                160,370   291,703   971,927
Operating income                                                        530,983   444,015   341,207
Other expenses:
Interest                                                                (74,404)  (97,510)  (136,617)
Loss on early extinguishment of debt                                    —         —         (42,567)
Interest rate derivative fair value loss                                (94)      —         —
Total other expenses                                                    (74,498)  (97,510)  (179,184)
Income from continuing operations before income taxes and discontinued  456,485   346,505   162,023
operations
Provision for income taxes                                              (185,297) (121,229) (186,210)
Income from continuing operations                                       271,188   225,276   (24,187)
Discontinued operations:
Income(loss)fromresultsofoperationsandsaleofdiscontinued
operations,netofincometax(expense)benefitof$(45,155),$272,533, 121,490   (510,345) 5,257
and$(3,249)in2011,2012,and2013,respectively
Net income (loss) and comprehensive income (loss)                       $     $      $  
                                                                         392,678 (285,069) (18,930)
Earnings (loss) per share:
                                                                        $     $     $    
Continuing operations                                                                 (0.09)
                                                                        1.04      0.86
                                                                        $     $     $    
Discontinued operations                                                                0.02
                                                                        0.46      (1.95)
                                                                        $     $     $    
Total                                                                                 (0.07)
                                                                        1.50      (1.09)
Earnings (loss) per share—assuming dilution:
                                                                        $     $     $    
Continuing operations                                                                (0.09)
                                                                        1.04      0.86
                                                                        $     $     $    
Discontinued operations                                                                0.02
                                                                        0.46      (1.95)
                                                                        $     $     $    
Total                                                                                 (0.07)
                                                                        1.50      (1.09)



ANTERO RESOURCES CORPORATION

Consolidated Statements of Cash Flows

Years ended December 31, 2011, 2012, and 2013

(In thousands)
                                   2011          2012          2013
Cash flows from operating
activities:
Net income (loss)                  $        $          $     
                                   392,678      (285,069)    (18,930)
Adjustment to reconcile net income
(loss) to net cash provided by
operating activities:
Depletion, depreciation,           55,792        102,127       234,941
amortization, and depletion
Impairment of unproved properties  4,664         12,070        10,928
Derivative fair value gains        (495,970)     (179,546)     (491,689)
Cash receipts for settled          45,638        178,491       163,570
derivatives
Deferred income taxes              185,297       106,229       190,210
Loss (gain) on sale of assets      8,700         (291,190)     —
Stock compensation                 —             —             365,280
Loss on early extinguishment of    —             —             42,567
debt
Loss (gain) on sale of             —             795,945       (8,506)
discontinued operations
Depletion, depreciation,
amortization, and impairment of    126,041       90,096        —
unproved properties—discontinued
operations
Derivative fair value              (180,130)     (46,358)      —
gains—discontinued operations
Cash receipts for settled
derivatives—discontinued           66,654        92,166        —
operations
Deferred income taxes—discontinued 45,155        (272,553)     3,249
operations
Other                              3,479         4,960         1,173
Changes in assets and liabilities:
Accounts receivable                3,854         5,511         (9,314)
Accrued revenue                    (11,118)      (10,683)      (50,156)
Other current assets               (4,528)       (8,882)       19,543
Accounts payable                   (1,875)       (2,117)       1,039
Accrued liabilities                17,124        14,790        26,803
Revenue distributions payable      4,852         11,268        50,552
Other                              —             15,000        3,447
Net cash provided by operating     266,307       332,255       534,707
activities
Cash flows from investing
activities:
Additions to proved properties     (105,405)     (10,254)      (15,300)
Additions to unproved properties   (195,131)     (687,403)     (440,825)
Drilling and completion costs      (527,710)     (836,350)     (1,615,965)
Additions to fresh water           —             (2,801)       (203,790)
distribution systems
Additions to gathering systems and (72,837)      (142,294)     (389,453)
facilities
Additions to other property and    (2,339)       (3,447)       (6,240)
equipment
(Increase) decrease in notes       (10,111)      4,889         4,555
receivable
Increase in other assets           (3,095)       (3,707)       (6,574)
Proceeds from asset sales          15,379        1,217,876     —
Net cash used in investing         (901,249)     (463,491)     (2,673,592)
activities
Cash flows from financing
activities:
Issuance of common stock           —             —             1,578,573
Issuance of senior notes           400,000       300,000       1,231,750
Repayment of senior notes          —             —             (690,000)
Borrowings (repayments) on bank    265,000       (148,000)     71,000
credit facility, net
Payments of deferred financing
costs and loss on extinguishment   (6,691)       (5,926)       (53,940)
of debt
Distribution to members            (28,859)      —             —
Other                              (153)         808           —
Net cash provided by financing     629,297       146,882       2,137,383
activities
Net increase (decrease) in cash    (5,645)       15,646        (1,502)
and cash equivalents
Cash and cash equivalents,         8,988         3,343         18,989
beginning of period
Cash and cash equivalents, end of  $       $       $       
period                              3,343      18,989       17,487
Supplemental disclosure of cash
flow information:
Cash paid during the period for    $       $       $      
interest                           59,107       90,122       117,832
Supplemental disclosure of noncash
investing activities:
Changes in accounts payable for    $       $       $      
additions to property and          26,465       72,881       188,123
equipment

ANTERO RESOURCES CORPORATION

The following table sets forth selected operating data (as recast for
discontinued operations) for the year ended December31, 2012 compared to the
year ended December31, 2013:

                           Year Ended                    Amount
                           December 31,                  of            Percent
                                                         Increase
(in thousands, except per  2012            2013          (Decrease)    Change
unit data)
Operating revenues:
Natural gas sales          $        $       $         165%
                           259,743         689,198     429,455
NGL sales                  3,719           111,663       107,944       2,903%
Oil sales                  1,520           20,584        19,064        1,254%
Commodity derivative fair  179,546         491,689       312,143       174%
value gains
Gain on sale of assets     291,190         —             (291,190)     *
Total operating revenues   735,718         1,313,134     577,416       78%
Operating expenses:
Lease operating            6,243           9,439         3,196         51%
Gathering, compression,
processing and             91,094          218,428       127,334       140%
transportation
Production and ad valorem 20,210          50,481        30,271        150%
taxes
Exploration               14,675          22,272        7,597         52%
Impairment of unproved    12,070          10,928        (1,142)       (9)%
properties
Depletion, depreciation,  102,026         233,876       131,850       129%
and amortization
Accretion of asset         101             1,065         964           954%
retirement obligations
General and administrative
(before stock              45,284          60,158        14,874        33%
compensation)
Stock compensation         —               365,280       365,280       *
Total operating expenses   291,703         971,927       680,224       *
Operating income           444,015         341,207       (102,808)     *
Other expenses:
Interest expense           $        $       $       40%
                            (97,510)      (136,617)      39,107
Loss on early              —               (42,567)      42,567        *
extinguishment of debt
Total other expenses       (97,510)        (179,184)     81,674        84%
Income before income taxes
and discontinued           346,505         162,023       (184,482)     *
operations
Income taxes expense       (121,229)       (186,210)     (64,981)      54%
Income from continuing     225,276         (24,187)      (249,463)     *
operations
Income (loss) from         (510,345)       5,257         515,602       *
discontinued operations
Net income (loss)          $        $       $        *
                           (285,069)       (18,930)    266,139
EBITDAX from continuing    $        $       $        128%
operations                  284,710       649,358    364,648
EBITDAX from discontinued  149,605         —             (149,605)     *
operations
Total EBITDAX              $        $       $        50%
                            434,315       649,358    215,043
Production data:
Natural gas (Bcf)          87              177           90            103%
NGLs (MBbl)                71              2,123         2,052         2,872%
Oil (MBbl)                 19              226           207           1,094%
Combined (Bcfe)            87              191           104           119%
Daily combined production  239             522           283           119%
(MMcfe/d)
Average sales prices
before effects of cash
settled derivatives:
Natural gas (per Mcf)      $        $       $       30%
                              2.99          3.90    0.91
NGLs (per Bbl)             $        $       $       1%
                             52.07          52.61     0.54
Oil (per Bbl)              $        $       $       14%
                             80.34          91.27    10.93
Combined (per Mcfe)        $        $       $       42%
                              3.03          4.31    1.28
Average realized sales
prices after effects of
cash settled derivatives:
Natural gas (per Mcf)      $        $       $       (5)%
                              5.05          4.82   (0.23)
NGLs (per Bbl)             $        $       $       1%
                             52.07          52.61      0.54
Oil (per Bbl)              $        $       $       23%
                             80.34          99.06     18.72
Combined (per Mcfe)        $        $       $       2%
                              5.08          5.17     0.09
Average costs (per Mcfe):
Lease operating            $        $       $       (29)%
                              0.07         0.05     (0.02)
Gathering compression,     $        $       $      
processing, and               1.04         1.15      0.11   11%
transportation
Production taxes           $        $       $       13%
                              0.23         0.26      0.03
Depletion, depreciation,   $        $       $      
amortization, and             1.17         1.23      0.06   5%
accretion
General and administrative $        $       $       (38)%
                              0.52         0.32     (0.20)



SOURCE Antero Resources

Website: http://www.anteroresources.com
Contact: Michael Kennedy - VP Finance, at (303) 357-6782 or
mkennedy@anteroresources.com.
 
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