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  Economics : Rates of Return/ IRR

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ATAX IRR (%) 20% 40% 60% 80% 0% 100% Ellerslie Frobisher/Alida Marten Hills Montney Montney Montney Eagle Ford Eagle Ford Condy Marcellus Viking Montney Cantuar Mannville Ellerslie Charlie Lake Montney Upper Mannville Frobisher / Alida SE SK Unfracked Dunvegan Montney Upper Mannville Montney Montney Bakken Permian SE SK Bakken Midale Bakken Montney Cold Lake SE SK Fracked Midale Cardium Duvernay Austin Chalk Permian Viking Provost Permian Cold Lake Permian SW SK Viking Shaunavon Mannville Ratcliffe/Midale Cardium Montney VET Sparky Eagle Ford Permian Permian ROBUST RETURNS AMONGST NORTH AMERICAN PROJECTS Gething Ratcliffe/Midale Woodford Permian Permian Permian Montney Bakken Uinta Spirit River Bakken Permian Oil/Liquids Cardium Permian Cardium Pembina Powder River Beaverhill Lake Eagle Ford Montney Shannon; Vermilion capital program targets the Turner only in the Hilight area of the Powder River Basin. ** Permian -3%; Mississippian Mid-Con -4%. PROJECT RANKING BY ATAX IRR Duvernay Montney Permian Gas Utica Permian Utica PRB Parkman / Montney Turner / Shannon* Marcellus Deep Basin Woodford Bakken Bakken Torquay NORTH AMERICAN PROJECT RANKING Montney Woodford Permian SAGD - Heavy Oil Montney Marcellus Spirit River Duvernay Marcellus Marcellus DJ Basin Montney Scotia Capital research, November 2019. Price assumptions: WTI US55/bbl, HH Natural Gas US2.50/mcf, AECO 1.85/mcf, USD/CAD 0.76. * Scotia analyzes a composite of the Parkman / Turner / Eagle Ford Duvernay Woodford Haynesville SAGD - Oil Sands Spirit River DJ Basin Eagle Ford Woodford Gulf Coast Eagle Ford Permian Marcellus Permian** Mississippian** 55
Vermilion Energy Inc.
January 2020

Dry Gas Basin Breakeven Analysis Most of the dry gas plays in the U.S. have breakeven prices above the current 2020-2023 strip at 2.48/MMBtu - Dry gas producers will require higher realized prices than the current strip to incentivize the drilling activity needed to deliver new supply - Dry gas rig count has declined 24%, or 34 rigs, since March 15th 6.00 (1) 30 Breakeven (25% ROR) 2020-2023 Strip(2) Dry Gas Rig Count 28 Rigs 108 Dry Gas Rigs Breakeven Price Assuming 25% ROR (/Mcf) 5.00 25 Current Rig Count 3.96 4.00 20 20 3.32 3.40 3.18 3.07 16 3.00 2.48 15 (2020-2023 Strip) 11 2.00 2.43 10 8 8 6 1.00 5 5 3 2 1 0.00 0 0 0 Marcellus Marcellus Haynesville - Marcellus Utica Shale - Eagle Ford - Haynesville - Marcellus Green River Cotton Barnett CoreUinta Basin - Rockies - Shale - NE Shale - SW N LA Core - Shale - WV Dry Gas Dry Gas N LA Core - Shale - Basin - Valley - Lower Piceance PA - Dry PA - Dry Long Dry Ohio Standard Central PA Pinedale Horizontal Mesaverde Laterals Laterals Breakeven analysis source: J.P. Morgan Equity Research estimates. RigData report dated 8/22/19. 1) Breakeven price is defined as half cycle pre-tax ROR of 25%. Excludes rich gas basins; SW Marcellus Rich, SCOOP/STACK, DJ Basin, 2) 2020-2023 average Nymex Henry Hub price. Strip pricing as of 8/30/19. ANTERO RESOURCES NATURAL GAS FUNDAMENTALS 13
Antero Resources
September 2019

DJ Basin: Analysts See the Value of the Basin Competitive with all other basins 90 70 % 63 % 83 Breakeven (PV-10, 20:1 WTI:HH Ratio, US / bbl) 80 74 60 % 54 % 70 70 67 64 50 % 58 59 60 55 50 50 48 48 48 48 40 % 41 % 41 % 45 46 IRR 41 30 % 38 39 39 40 30 % 34 31 % 34 % 30 25 % 23 % 20 % 20 % 19 % 20 17 % 10 % 10 11 % 11 % 5% 3% 4% 7% 0% 6% 0 0% (1) Piceance Basin Permian STACK Eagle Ford Powder River Basin SCOOP Haynesville TMS Marcellus Cotton Valley Barnett Gulf Coast Arkoma Woodford DJ Basin Bakken SK Bakken Utica Montney Fayetteville Uinta Basin Half Cycle: Excludes Acreage Acquisition Costs Source: RS Energy Group. Note: Basin breakeven reflect single well economics. (1) Permian basin breakeven represents Midland basin breakeven.
Extraction Oil and Gas
May 2019

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