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…
Antero Resources Snapshot Private E&P company headquartered in Denver, focused on unconventional resource plays Drilled and operated over 300 horizontal shale wells in Barnett, Woodford and Marcellus Shales Diversified asset base…
Diversified Low-Cost Reserve Base Total SEC Proved Reserves (1) 5.0 Tcfe Total 3P Gas Equivalent (1,2) 17.4 Tcfe Total 3P Liquids (1,2) 724 MMBbls Appalachia % Liquids 3P (1),(2) 25% Proved Developed PV-10 (1,3) 1.9 Billion…
Antero Unrisked Net Resource Potential Including net 3P reserves of 17 Tcfe(1), Antero has 29 to 30 Tcfe of unrisked net resource potential Rich gas focused resource base includes approximately 1.1 billion Bbls of liquids Over 8,600…
Appalachian Shale-Focused Resource Base Over 70% of Anteros resource base is in the Appalachian Basin 23% of resource base is liquids by volume Net Unrisked Resource Potential(1) By Area By Product Woodford Shale Oil 7% 1%…
Strong Track Record of Growth Average Net Daily Production Net Proved SEC Reserves (1) MMcfe/d Bcfe 385 400 6,000 5,017 244 5,000 300 3,231 4,000 200 133 3,000 105 85 1,141 2,000 680 100 31 235 8 87 1,000 0 0 2006 2007…
Industry Leading Finding Costs 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…
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 10
Marcellus Shale Position Southwestern and Northeastern Core Areas Rich Gas Window in Southwestern Core Antero 2 horizontals completed Strong results Antero 79 horizontals completed Strong results 7 rigs currently…
Antero Marcellus Shale Summary 75% of acreage has rich gas processing potential 233,000 net acres of leasehold in heart of the play 61% HBP and additional 23% not expiring for 5 to 10 years, 100% operated 2.8 Tcfe of proved reserves…
Strong Marcellus Growth Antero has rapidly grown its Marcellus production over the past two years while building out midstream infrastructure Antero Gross Operated Marcellus Production 350,000 300,000 Tichenal Lateral…
Antero Marcellus Type Curve Support Antero has over 2 years of production history to support its 1.50 Bcf/1,000 of lateral recovery assumption as demonstrated by the graph and table below DeGolyer & MacNaughton (D&M), Anteros third…
Marcellus Shale Well Economics Horizontal Lean Gas Assumes 1050 Btu gas no processing, lean gas Antero has an estimated 475 net horizontal drilling locations in the lean gas category (1000 to 1050 Btu) Antero Average for First 81…
Marcellus Shale Well Economics Horizontal Rich Gas Assumes 1150 Btu gas and includes processing margin at 95/Bbl oil and current NGL price correlations(1) Antero has an estimated 1,150 net locations in the 1050 to 1250 Btu…
Marcellus Shale Well Economics Horizontal Highly-Rich Gas Assumes 1250 Btu gas and includes processing margin at 95/Bbl oil and current NGL price correlations (1) Antero has an estimated 270 net locations in the 1250 to 1350 Btu…
Marcellus Processing Economics Dramatic improvement in returns by processing higher BTU gas Anteros Marcellus rich gas leasehold spans the 1050 to 1350 Btu spectrum 200% Single well example: 9.0 Bcf well 180% 7.0 million well…
Upper Devonian Potential Upper Devonian, found at slightly shallower depths than Upper Devonian Fairway the Marcellus Shale, around 6,500 feet true vertical depth Expected to be rich gas wherever the Marcellus is rich gas Upper…
Piceance Basin A Rich Gas Play Rich processable gas from Mesaverde 2012 Program: 63,000 net acres 40% HBP 1 rig drilling 53 Mesaverde development wells 1.5 Tcfe of proved reserves / 2.9 Tcfe of 3P reserves 5 wells completing 60…
Piceance Well Economics Rich Gas Assumes 1140 Btu gas and includes processing margin at 95/Bbl and current NGL price correlations Antero has 1,300 net Mesaverde rich gas drilling locations with well economics expected to be similar to…
Arkoma Basin Antero Woodford Shale Acreage Position Woodford Shale Summary Rich processable gas from west side of play Lean gas on east side 599 Bcfe of net proved reserves / 910 Bcfe 3P reserves 66,000 net acres 91% HBP East…
Low Break Even Natural Gas Prices Antero is low on the cost curve with a very attractive drilling portfolio Antero projects highlighted in orange Antero plans to operate 10 drilling rigs on average in 2012 focused on its highest return…
Strong Hedge Position Antero will realize over 1.1 billion(1) of hedge gains over the next five years from its 842 Bcfe hedge book at 5.30/MMBtu NYMEX-equivalent, assuming current STRIP prices Protects future cash flow thereby…
2011 and 2012E Capital Budget 2011 Capex Budget by Type 2011 Capex Budget by Basin Arkoma Acquisitions 12% 21% Appalachia Piceance 73% 15% Land 11% Drilling 60% Midstream 8% Total: 930MM Total: 930MM 2012E Capex Budget…
Key Credit Strengths Significant reserve potential diversified across three of the key U.S. shale plays Ability to allocate capital to most profitable projects based on commodity prices, basis differentials Diversified, and local cost…
Historical Antero Hedging Results Antero has realized over 410 million of gains on commodity hedges over the past four-plus years Gains realized in 16 of last 17 quarters Quarterly Realized Gains/(Losses) MMs 2008 2012 /Mcfe 90.0…
EBITDAX Reconciliation EBITDAX Three Months Ended Antero Resources LLC 3/31/2011 3/31/2012 EBITDAX: Net income (loss) (58,935) 327,731 Unrealized loss (gain) on commodity derivative contracts 77,266 (202,963) Gain on sale of…
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