ANTERO RESOURCES Corp Income Taxes Disclosure

(13) Income Taxes

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The Company’s income tax expense (benefit) consisted of the following (in thousands):

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Income tax expense (benefit) differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 21% to income or loss before taxes as a result of the following (in thousands, except percentages):

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Deferred income taxes reflect the impact of temporary differences between assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. The tax effect of the temporary differences giving rise to deferred income tax assets and liabilities is as follows (in thousands):

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In assessing the realizability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will be realized based on a more-likely-than-not standard of judgment. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the Company’s temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the projections of future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the Company will not realize the benefits of certain of these deductible differences and has recorded a valuation allowance of approximately $43 million and $39 million as of December 31, 2024 and 2025, respectively. The valuation allowance for each of the years ended December 31, 2024 and 2025 relates primarily to Colorado and Oklahoma state NOL carryforwards and is the result of expected future reduced income tax apportionment in those states. The amount of the deferred income tax asset considered realizable could be further reduced in the near term if estimates of future taxable income during the carryforward period are revised.

As of December 31, 2025, the Company has U.S. federal and state NOL carryforwards of approximately $960 million and $1.9 billion, respectively, exclusive of the valuation allowances discussed above. The U.S. federal and West Virginia NOL carryforwards generated in tax years prior to 2018 expire in 2037. For tax years 2018 and thereafter, U.S. federal and West Virginia NOL carryforwards generated in these jurisdictions have no expiration date. The Colorado NOL carryforwards generated in tax years prior to 2018 or after 2020 expire between 2026 and 2044. The Colorado NOL Carryforwards generated in tax years 2018 through 2020 have no expiration date. As of December 31, 2025, the Company has U.S. federal income tax credits of $153 million, excluding related reserves, which expire between 2033 and 2045.

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Tax years 2022 through 2025 remain open to examination by the IRS. The Company and its subsidiaries file tax returns with various state taxing authorities, and those returns remain open to examination for tax years 2021 through 2025.

The Company commissioned a multi-year R&D tax credit study related to the Company’s drilling and completion methods that resulted in a favorable adjustment to the Company’s effective tax rate and future tax obligations. The recorded net R&D tax credit, as of December 31, 2025, expected to be utilized in future periods is $102 million. The R&D tax credits expire between 2033 and 2045.

The calculation of the Company’s tax liabilities involves uncertainties in the application of complex tax laws and regulations. The Company gives financial statement recognition to those tax positions that it believes are more-likely-than-not to be sustained upon examination by the IRS or state revenue authorities. The recognition of the unrecognized tax benefit reported by the Company would affect its effective tax rate.

The reserve for uncertain tax positions, excluding interest and penalties, is as follows (in thousands):

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