Antero Resources Snapshot Private E&P company headquartered in Denver, focused on unconventional resource plays Drilled and operated over 310 horizontal shale wells in Barnett, Woodford, Marcellus and Utica Shales Diversified asset…
Low Cost Liquids-Rich Reserve Base Total SEC SECProved Proved Reserves(1) Reserves (1) 4.3 4.3 Tcfe Tcfe Total Net 3P Gas 3P Gas Equivalent Equivalent (1,2) (1,2) 16.4 Tcfe 19.6 Tcfe Total Net 3P Liquids 3P Liquids (1,2)…
Antero Unrisked Net Resource Potential Including net 3P reserves of 20 Tcfe(1), Antero has over 33 Tcfe of unrisked net resource potential Rich gas focused resource base includes 1.6 billion barrels of liquids Over 6,400 gross…
Appalachian Shale-Focused Resource Base 83% of Anteros resource base is in the Appalachian Basin 30% of resource base is liquids by volume Unrisked Net Resource Potential(1) By Area By Product Oil Piceance 1% 17% Utica 9%…
Strong Track Record of Growth Average Net Daily Production (1) Net Proved SEC Reserves (1) 325 5,017 244 4,322 3,231 133 105 85 1,141 31 680 8 87 235 Antero Capital Allocation Operated Well Completions 139 1,200…
Industry Leading Finding Includes all drilling, land and acquisition expenditures Industry 3-Year All-in Finding Costs through 2011(1) / Mcfe 2011 Antero all-in finding costs were 0.46/Mcfe 4.00 3-year Antero all-in finding costs…
Industry Leading Development Costs Per Mcfe development costs excluding land is a better measure of capital efficiency than finding costs Antero was the leader in 3-year development costs through 2011 Industry 3-Year Development Costs…
Asset Overview 8
Appalachian Basin Overview Southwestern and Northeastern Core Areas Antero Utica 3 horizontals completed Strong results Antero 56,000 net acres in Utica Liquids Rich Fairway Antero Marcellus SW PA 25,000 Net Acres 2…
Antero Marcellus Shale Summary 75% of acreage has rich gas processing potential 275,000 net acres of leasehold in heart of the play 56% HBP and additional 27% not expiring for 5 to 10 years, 100% operated 3.2 Tcfe of proved reserves…
Strong Marcellus Growth Antero has rapidly grown its Marcellus production over the past two years while building out midstream infrastructure During 2012 Antero has shifted from an early-stage drilling program to pad development…
Antero Marcellus Type Curve Support Antero has almost three years of production history to support its 1.46 Bcf/1,000 of lateral recovery assumption as demonstrated by the graph and table below DeGolyer & MacNaughton (D&M), Anteros…
Marcellus Shale Well Economics Horizontal Lean Gas Assumes 1050 Btu gas no processing, lean gas Antero has an estimated 550 net horizontal drilling locations in the lean gas category (1000 to 1050 Btu) Antero Average for First 102…
Marcellus Shale Well Economics Horizontal Rich Gas Assumes 1150 Btu gas and includes processing margin at 90/Bbl oil and 12-month historical NGL price correlations(1) Antero has an estimated 1,150 net locations in the 1050 to 1250…
Marcellus Shale Well Economics Horizontal Highly-Rich Gas Assumes 1250 Btu gas and includes processing margin at 90/Bbl oil and 12-month historical NGL price correlations(1) Antero has an estimated 600 net locations in the 1250 to…
Marcellus Processing Economics Dramatic improvement in returns by processing higher BTU gas Anteros Marcellus rich gas leasehold spans the 1050 to 1350 Btu spectrum Antero has 2,219 gross processable locations 220% Single well…
Piceance Basin A Rich Gas Play Rich processable gas from Mesaverde 2012 Program: 61,000 net acres 40% HBP 1 rig drilled 46 Mesaverde vertical development wells 1.2 Tcfe of proved reserves / 1.7 Tcfe of 3P reserves Drilling contract…
Piceance Well Economics Rich Gas Assumes 1140 Btu gas and includes processing margin at 90/Bbl and current NGL price correlations Antero has 1,300 net Mesaverde rich gas drilling locations with well economics expected to be similar to…
Low Break Even Natural Gas Prices Antero is low on the cost curve with a very attractive drilling portfolio of 100% operated projects Antero projects highlighted in orange NYMEX Break Even Price (15% ATAX ROR) Credit Suisse…
Strong Hedge Position Antero will realize approximately 700 million(1) of hedge gains over the next five years from its current 827 Bcfe hedge book at 5.13/MMBtu NYMEX-equivalent, assuming current STRIP prices Protects future cash…
2011 and 2012E Capital Budget 2011 Capex Budget by Type 2011 Capex Budget by Basin Arkoma Acquisitions 12% 21% Piceance Appalachia 14% 74% Land 11% Drilling 60% Midstream 8% Total: 930MM Total: 930MM 2012E Capex…
Current Financial Summary Financial Summary As adjusted for Arkoma sale(4) 12 mos. 12 mos. 12 mos. 12 mos. LTM LTM millions 2008 2009 2010 2011 6/30/2012 6/30/2012 Summary Operating Results Production (Bcfe) 32 38 49 89 114 85…
Key Credit Strengths Significant reserve potential diversified across two of the top U.S. shale plays in Appalachia and liquids-rich tight sands exposure in the Piceance Diversified, Ability to allocate capital to most profitable…
Historical Antero Hedging Results Antero has realized approximately 550 million of gains on commodity hedges over the past four-plus years Gains realized in 18 of last 19 quarters Quarterly Realized Gains/(Losses) 1Q '08 - 3Q '12…
EBITDAX Reconciliation EBITDAX Six Months Ended Antero Resources LLC 6/30/2011 6/30/2012 EBITDAX: Net income (loss) 15,688 (150,356) Unrealized loss (gain) on commodity derivative contracts (20,549) (113,862) Gain on sale of…
Cautionary Note Regarding Hydrocarbon Quantities The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserve estimates (3P). Antero…
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