Antero Resources Snapshot Private E&P company headquartered in Denver, Colorado extensive shale experience Drilled and operated over 360 horizontal shale wells in Barnett, Woodford, Marcellus and Utica Shales Appalachian Shale-Focused…
Low Cost Liquids-Rich Reserve Base Antero increased proved reserves by 73% and 3P reserves by 94% at year-end 2012 Total SECProved SEC Proved Reserves Reserves(1) (1) 4.3 Tcfe 4.9 Tcfe Total Net 3P Gas 3P Gas Equivalent…
Antero Unrisked Net Resource Potential Including net 3P reserves of 26.1 Tcfe(1), Antero has 31 32 Tcfe of unrisked net resource potential Rich gas focused resource base includes almost 1.9 billion barrels of liquids Over 4,900 gross…
Appalachian Shale-Focused Resource Base 69% of Anteros resource base is in the Marcellus Shale 35% of resource base is liquids by volume Unrisked Net Resource Potential(1) By Area By Product Oil Utica 1% 16% Upper…
Strong Track Record of Growth Average Net Daily Production Net Proved SEC Reserves (1) 550 5,017 4,929 3,231 335 244 133 1,141 85 105 680 31 87 235 8 Antero Capital Allocation Operated Well Completions 1,600 1,650…
Industry Leading Finding Costs Includes all drilling, land and acquisition expenditures Industry 3-Year All-in Finding Costs through 2011(1)(2) 2011 Antero all-in finding costs were 0.46/Mcfe 2012 Antero all-in finding costs…
Industry Leading Development Costs Per Mcfe development cost excluding land is a better measure of capital efficiency than finding costs Antero was the leader in 3-year development costs through 2011 includes Piceance and Arkoma…
Asset Overview 8
Appalachian Basin Overview Southwestern and Northeastern Core Areas Antero Utica OH 81,000 Net Acres 3 horizontals completed 2 rigs running Strong results Utica Liquids Rich Fairway Antero Marcellus SW PA 25,000 Net…
Antero Marcellus Shale Summary 297,000 net acres of leasehold in southwestern core of the Marcellus play 55% HBP with additional 21% not expiring for 5-plus years Over 80% of acreage has rich gas processing potential 100% operated…
Large Scale Position in Marcellus Core Antero has delineated and de-risked a large scale acreage position in the Southwestern Core of the Marcellus Shale in northern West Virginia currently building more infrastructure to process…
Strong Marcellus Production Growth Antero has rapidly grown its Marcellus production over the past three years while building out midstream infrastructure Antero Gross Operated Marcellus Production 500,000 450,000 Shift to pad…
Antero Marcellus Type Curve Support Antero has over 3 years of production history to support its 1.5 Bcf/1,000 of lateral recovery assumption as demonstrated by the graph and table below DeGolyer & MacNaughton (D&M), Anteros third…
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 2,372 gross processable horizontal locations (1050 BTU)…
Marcellus Rich Gas Liquids and Processing Upgrade Marcellus rich gas and highly rich gas acreage provides a significant advantage in well economics assuming 4.25/MMBtu NYMEX, 90.00/Bbl WTI and current spot NGL pricing correlation…
Reducing Costs and Minimizing Surface Impact Marcellus Water Management System Summary Antero is building an 80-mile water sourcing and distribution system to improve operational efficiency and reduce water truck traffic 260 million…
Antero Utica Shale Utica Shale Industry Activity(1) Summary Chesapeake Coniglio 6H Based on disclosed IPs in the Utica, it 1,125 Boe/d with 290 Bbl/d Oil appears the core area is in the southern Chesapeake Chesapeake portion of the…
Integrated Marcellus and Utica Midstream Infrastructure Antero has existing and planned processing infrastructure in both the Marcellus and Utica Well positioned to capitalize on rich gas acreage and improved margins from liquids-rich…
Low Break Even Gas Price Portfolio Antero is low on the cost curve with a very attractive drilling portfolio of 100% operated projects Antero projects highlighted in orange with gross undrilled horizontal well locations in boxes…
Strong Hedge Position Antero expects to realize approximately 583 million(1) of hedge gains over the next six years from its current 828 Bcfe hedge book which averages 4.97/MMBtu NYMEX-equivalent, assuming current STRIP prices…
2012E and 2013E Capital Budget 2012E Capex Budget by Type 2012E Capex Budget by Project 2012E Wells Spud by Project Piceance/Arkoma Land Drilling Piceance/Arkoma 7% 40% 52% 33 Utica 3 Utica Marcellus 40% Marcellus 53%…
Current Financial Summary Pro Forma Capital Structure Furt her Furt her Adjust ed for Adjust ed for Adjust ed for Senior Not es Piceance Senior Not es Non-GAAP Offering Sale Add-On 12 mos. 12 mos. 12 mos. LT M LT M LT M LT M…
Key Credit Strengths Liquids-rich Marcellus and Utica shale plays are two of the top U.S. shale plays World class asset Antero has scale in both these plays 297,000 net acres in the Marcellus Shale and base with scale 81,000 net acres…
Historical Antero Hedging Results Antero has realized almost 600 million of gains on commodity hedges over the past five years Gains realized in 19 of last 20 quarters Quarterly Realized Gains/(Losses) MMs 1Q '08 - 4Q '12 /Mcfe…
Marcellus Shale Well Economics Horizontal Dry Gas Assumes 1050 BTU gas no processing, dry gas Estimated 674 gross horizontal drilling locations in the dry gas category (950 to 1050 BTU) Antero Average for First 127 Horizontal Wells…
Marcellus Shale Well Economics Horizontal Rich Gas Assumes 1150 BTU gas and includes processing margin at 90.00/Bbl oil and 12-month historical NGL price correlations(1) Estimated 1,412 gross horizontal drilling locations in the 1050…
Marcellus Shale Well Economics Horizontal Highly-Rich Gas Assumes 1250 BTU gas and includes processing margin at 90.00/Bbl oil and 12-month historical NGL price correlations(1) Estimated 960 gross horizontal drilling locations in the…
Marcellus Processing Barrels 1150 BTU NGL Barrel - Volume NGL Barrel - Volume Ethane Normal Butane, Iso Butane 6% Pentanes+ 4% 3% Iso Butane 4% 9% Propane Normal Butane 17% 13% Pentanes+ 14% Propane Ethane 58% 73% C2…
Marcellus Processing Barrels 1250 BTU NGL Barrel - Volume NGL Barrel - Volume Ethane Normal Butane Iso Butane Iso Butane 4% 3% 9% 6% Pentanes+ 7% Normal Butane 16% Propane 22% Pentanes+ 18% Propane 53% Ethane 61% C2…
Marcellus Rich Gas Provides Liquids and Processing Upgrade Marcellus rich gas and highly rich gas acreage provides a significant advantage in well economics assuming 4.25/MMBtu NYMEX, 90.00/Bbl WTI and 12-month historical NGL pricing…
Antero EBITDAX Reconciliation EBITDAX 9 Months Ended Antero Resources LLC 9/30/2011 9/30/2012 EBITDAX: Net income (loss) 87,276 147,502 Unrealized loss (gain) on commodity derivative contracts (151,520) 111,649 Gain on sale of…
Piceance EBITDAX Reconciliation 9/30/12 LTM EBITDAX Pro Forma Ex-Piceance Antero Resources LLC and Pipeline EBITDAX: Net income (loss) (39,532) Unrealized loss (gain) on commodity derivative contracts (243,033) 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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