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Rates Of Return
Anadarko Basin
  Economics : Rates of Return/ IRR

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STRONG RETURNS 30 Consistent STACK Well Performance Core STACK Black Oil Window Generating 50% 2 IRR with <2-yr payout Lower OOIP Higher OOIP Increasing BOE & Gas Cut Increasing Oil Cut & Lower Cost Consistent results at development spacing D&C 2-yr Oil & C5+ 2-yr BOE Cum ATAX IRR Fluid Window ( MM) Cum (MBBLs) (MBOE) (%) 2 Black Oil 6.0 190 390 50% 1) Data set includes only STACK black oil Meramec wells normalized to 10.000 lateral length 2) Represents 1.1 MMBOE EUR type curve, utilizes flat 55 / Bbl WTI & 2.50 / MMBTU NYMEX price deck 3) Condensate volumes account for 15% of total NGL volumes produced in STACK
Ovintiv Inc.
January 2020

Systematic and Flexible Development Approach Illustrative Spacing Development Assessment Chaparral Development Approach Optimum Ideal development approach seeks the Development for optimal balance of IRRs and NPV Maximum IRR Optimum 80% 40.0 Development for In current commodity pricing and capital PV-10 of Section Development (MM) Maximum PV-10 Rate of Return % 70% 35.0 PV-10 (mm) markets environment, development approach 60% 30.0 focused on maximizing IRR 50% 25.0 Geologically driven, collaborative approach IRR (%) 40% 20.0 built by a strong culture of continuous 30% 15.0 learning 20% 10.0 Fit-for-purpose approach designed to 10% 5.0 account for variations in primary factors impacting optimal DSU development strategy 0% - 2 4 6 8 10 12 14 Wells per DSU Wells per Section (Two Benches) IRR PV-10 Less Wells per Section: More Wells per Section: Higher IRR Higher PV-10 Lower PV-10 Lower IRR Primary factors impacting optimal number of wells developed per DSU Existing Business Environment Geology Commodity Price Currently Indicates Four To Eight Parent wells Capital Markets Technology Meramec/Osage Wells Per Section NYSE: CHAP 9
Chaparral Energy
November 2019

New Gas Supply Breakdown 45% of new gas supply needed in the 2019-2023 period is forecast to come from plays with breakeven gas prices that are higher than the long-term 2020-2023 strip 2.48/MMBtu New Supply Contribution by Basin Economic vs Non-Economic New Supply Breakeven Price Yields Pre-tax ROR of 25%(2) Non-Economic = Breakeven Price 2.48 Strip Eagle Ford Bakken 2% 7% DJ 15% 3% Rest of US Non-Economic Economic 45% 55% Greater Permian Permian Haynesville NE Marcellus SW Marcellus Dry 17% Utica Dry (Susquehanna) 18% SW Marcellus Rich Haynesville DJ Eagle Ford Dry Bakken Appalachian Rich SCOOP/STACK 10% Appalachian Dry 28% Higher Gas Prices Needed to Incentivize the Drilling 80 Tcf New Supply Required to Meet New 80 Tcf New Supply Needed Through 2023 (1) Supply Forecasts Needed Through 2023 (1) 1) Platts Analytics forecasted supply growth. 2) Breakeven analysis source: J.P. Morgan Equity Research estimates. Defined as half cycle pre-tax ROR of 25%. Assumes 50/Bbl WTI crude oil. Based on strip pricing as of 8/30/19. ANTERO RESOURCES NATURAL GAS FUNDAMENTALS 11
Antero Resources
September 2019
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