Hyatt Adjusted Earnings Reach $1.27 per Share; Antero Posts Record Third-Quarter Production
Key Facts
Hyatt and Antero Resources reported mixed results for the third quarter of 2026. Hyatt posted adjusted earnings of $1.27 per share, above the average analyst estimate of 77 cents, while Antero beat earnings-per-share estimates but narrowly missed revenue expectations. Antero reported earnings per share of $1.19, compared with an estimate of $0.97, while revenue was $1.56 billion versus an estimate of $1.57 billion. The results show growth in operating metrics at both companies, driven by higher gas production at Antero and improved hotel and fee performance at Hyatt. Data released by the U.S. Bureau of Economic Analysis on October 29 showed real gross domestic product grew at an annual rate of 3.4% in the third quarter, after 2.2% in the second quarter. The figure is not a direct measure of the companies’ results, but it places them in the context of an accelerating U.S. economy.
Antero posted record net production of more than 4.2 billion cubic feet equivalent per day, up 23% from the same period a year earlier, and net income of $367 million. Adjusted earnings before interest, taxes, depreciation, depletion and amortization reached $634 million, up 99% year over year. Adjusted free cash flow was $215 million, up 137% year over year. The company attributed part of its improved performance to lower cash operating costs of $2.05 per thousand cubic feet equivalent, compared with $2.44 in the third quarter of 2025. Unhedged adjusted earnings before interest, taxes, depreciation, depletion and amortization margin rose 27% to $1.28 per equivalent unit, from $1.01 a year earlier. The figures reflect improvements in production volume, costs and margins, alongside earnings per share above estimates, despite revenue falling short of expectations.
On contracts, Antero signed premium-priced supply agreements for 265 million cubic feet per day, tied to demand growth within the production basin in Clarington, Ohio. The company said it optimized 400 million cubic feet per day of firm transportation during the quarter and estimated that the agreements would increase annual free cash flow by about $20 million. It is targeting optimization of 1 billion cubic feet per day of firm transportation in 2027. As part of a margin enhancement initiative with a target value of $300 million, Antero expects to realize $140 million by mid-2027. The components include $50 million from firm transportation optimization, $60 million from the return of equity interests and $30 million from the expiration of a production payment agreement. The company also repurchased 1.6 million shares for about $56 million during the quarter, at a weighted average price of $34.15 per share, with about $821 million in buyback capacity remaining.
At Hyatt, comparable systemwide revenue per available room rose 7.2% from the third quarter of 2025, while gross fees increased 15.2% to $327 million. By contrast, net revenue per available room at all-inclusive resorts fell 2.5%, which the company attributed mainly to softer travel demand to some Mexican destinations. U.S. revenue per available room growth was 8.2%, and Hyatt said U.S. consumer strength contributed, along with a partial impact from the timing of the FIFA World Cup and Jewish holidays. Adjusted earnings before interest, taxes, depreciation and amortization were $295 million, a reported increase of 6.2% from the same period in 2025, or 19% after adjusting for the impact of assets sold that year. Net income attributable to the company was $58 million, compared with adjusted net income of $122 million, while diluted earnings per share were 60 cents. Chief Executive Mark Hoplamazian said 15% growth in gross fees reinforces confidence in the brands, commercial platform and asset-light business model.
Hyatt said its development pipeline included about 158,000 rooms under executed management or franchise contracts, up 12.1% from the third quarter of 2025, while net room growth over the past 12 months was 3.8%. The company repurchased 867,109 Class A shares for $147 million during the quarter. It returned $336 million to shareholders through dividends and buybacks from the start of the year through September 30. In premarket trading on Thursday, October 29, Hyatt shares rose 2.81% to $178.22. Antero shares closed at $42.11 on October 28, compared with $42.10 the previous day. The data show limited movement in Antero shares between the two stated closing days, while they do not support the 5% gain cited in the first version of the report for Hyatt shares.
Hyatt raised its forecast for 2026 comparable revenue per available room growth to a range of 5.0%-5.5% and expects net room growth of about 6%. It also set a forecast for adjusted earnings before interest, taxes, depreciation and amortization of $1.17 billion to $1.20 billion, up 14% to 17% from 2025. The company raised its expected 2026 cash returns to shareholders to $375-425 million and declared a cash dividend of 15 cents per share, payable on December 7 to shareholders of record on November 23. Antero expects production of about 4.3 billion cubic feet equivalent per day in the fourth quarter of 2026, with estimated production cuts of 15 to 20 billion cubic feet equivalent because of lower regional prices. The company said the cuts are expected to result in high-single-digit production growth in 2027. The Bureau of Economic Analysis is scheduled to release its second estimate of U.S. third-quarter GDP growth on November 25.