ANTERO MIDSTREAM A GROWTH FOCUSED MLP AM sponsor is the most active operator in Appalachia Premier Highest recycle ratio and low F&D cost supports sponsor production growth expectations 1 E&P Sponsorship Sponsor maintains strong…
CATALYSTS 1 AM sponsor is the most active operator in Appalachia; 40%+ production Sponsor Production growth targeted for 2015 supported by 1.8 billion capital budget, firm Growth Profile processing and takeaway, long-term natural gas…
ANTERO MIDSTREAM OWNERSHIP STRUCTURE Midstream Entity Midstream Option Corporation Partnership Option Antero Resources Public Corporation (NYSE: AR) 16.4 Billion Enterprise Value(1) Ba2/BB Corporate Rating Antero 70% Limited…
ANTERO MIDSTREAM PARTNERS OVERVIEW Midstream Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 419,000 net leasehold acres for gathering and…
ANTERO MIDSTREAM ASSETS RICH GAS MARCELLUS Marcellus Gathering & Compression Provides Marcellus gathering and compression services Liquids-rich gas is delivered to MWEs Sherwood Complex for processing Significant growth projected…
ANTERO MIDSTREAM ASSETS RICH & DRY GAS UTICA Utica Gathering Provides Utica natural gas and condensate gathering services Liquids-rich gas delivered into MWEs Seneca Complex for processing Condensate delivered to centralized…
ORGANIC GROWTH STRATEGY: BUILD VS. BUY Organic growth strategy provides attractive Organic EBITDA Multiple vs. Precedent Drop Down Multiples returns and project economics, while 11.9x avoiding the competitive acquisition market…
ANTERO MARCELLUS CAPITAL PLAN Marcellus Capital Plan 60% of 1.6 billion drilling and completion budget for 2015 focused on the Marcellus Shale; 80 gross wells expected to be completed Antero plans to operate an average of nine…
FULL MIDSTREAM VALUE CHAIN POTENTIAL Well Pad Condensate Gathering End Stabilization Users Compression (Miles) YE 2014 YE 2015 Water Utica 16 20 (Miles) YE 2014 YE 2015 Marcellus 62 81 Business(1) Low Pressure Gathering…
AM OPTION INTEGRATED WATER BUSINESS Currently owned by AR AM holds option to purchase 100% of assets at fair market value, subject to receipt of a Private Letter Ruling (PLR) from the IRS Antero has built an integrated water business…
SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (3/31/2015) Financial Flexibility Undrawn 1 billion revolver in place to fund future growth ( in millions) capital (5x Debt/EBITDA Cap) Revolver Capacity 1,000 162 million of cash at…
ANTERO MIDSTREAM MLP INVESTMENT HIGHLIGHTS Premier E&P Sponsorship Pure Play Marcellus/Utica Midstream MLP Top Tier MLP Organic Growth Full Midstream Value Chain Potential Financial Flexibility & Strong Capital Structure…
Antero Resources (NYSE: AR) Overview 17
LEADING UNCONVENTIONAL BUSINESS MODEL Largest Core Liquids- Highest Growth Rich Position in Large Cap E&P Appalachia 2 3 Growth Liquids-Rich Most Active Operator Low Break-Even in Appalachia 1 4 Well Price Economics Drilling…
DRILLING MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL 12/31/14 RESERVES Assumes Ethane Rejection Net Proved Reserves 12.7 Tcfe Net 3P Reserves 40.7 Tcfe Pre-Tax 3P PV-10 22.8 Bn 1Q 2015 Avg SW Marcellus & Utica(2) Net 3P…
GROWTH STRONG TRACK RECORD NET PROVED RESERVES (Bcfe) AVERAGE NET DAILY PRODUCTION (MMcfe/d) Marcellus Utica Marcellus Utica Guidance 15,000 1,800 12,683 12,000 1,400+ 1,200 9,000 1,007 7,632 6,000 4,283 600 522 2,844 239…
LAND MOST ACTIVE LAND ORGANIZATION IN APPALACHIA Assembled a 543,000 net acre position in the core of the Marcellus and Utica shale plays over the past 6 years Dec 2008 Dec 2011 Dec 2014 December 2008 December 2011(1) December…
LIQUIDS-RICH LARGEST CORE POSITION Antero has over 3,000 undeveloped rich gas locations with an average lateral length of 6,800 in its 3P reserves Antero has the largest core liquids- rich position in Appalachia with 375,000 net…
TAKEAWAY LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA Antero Long Term Firm Processing & Takeaway Position (2018) Accessing Favorable Markets Chicago(1) Mariner East II 4.1 Bcf/d 62 MBbl/d Commitment (0.04) /…
HEDGING INTEGRAL TO BUSINESS MODEL Hedging is a key component of Anteros business model due to its large, repeatable drilling inventory Antero has realized 1.1 billion of gains on commodity hedges over the past 6 years Gains realized…
LIQUIDITY STRONG FINANCIAL LIQUIDITY AND DEBT TERM STRUCTURE Over 3.9 billion of combined AR and AM financial liquidity as of 3/31/2015 No leverage covenant in bank facility, only interest coverage and working capital covenants AR…
REALIZATIONS A LEADER IN REALIZATIONS & MARGINS AMONG LARGE-CAP APPALACHIAN PEERS Antero continues to be a leader in its peer group in price realizations and EBITDAX unit margins 1Q 2015 Natural Gas Realizations (/Mcf) NYMEX 1Q 2015…
REALIZATIONS REALIZED PRICE ROAD MAP Anteros exposure to favorable gas price indices like Chicago, Gulf Coast, NYMEX and TCO is expected to increase to 94% by 2017 71% exposure to favorable price indices 85% exposure to favorable…
MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW RISK, HIGH RETURN GROWTH PROFILE Antero has over 3,000 undrilled liquids-rich Marcellus and Utica locations with an average lateral length of 6,800 feet MARCELLUS SSL WELL ECONOMICS(1) UTICA…
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated RJ SMITH PAD Operating 7 drilling rigs including BEE LEWIS PAD 30-Day Rate 2 intermediate rigs 30-Day Rate 4-well combined 4-well combined 30-Day Rate of 401,000 net…
LEADING UTICA SHALE CORE POSITION DELIVERS PROLIFIC LIQUIDS-RICH WELLS 100% operated Cadiz Operating 4 drilling rigs Processing Plant 149,000 net acres in the core rich gas/ condensate window (72% includes processable rich gas…
ANTERO RESOURCES 2015 GUIDANCE Key Operating & Financial Assumptions(1) Key Variable 2015 Guidance Net Daily Production (MMcfe/d) 1,400 Net Residue Natural Gas Production (MMcf/d) 1,175 Net Liquids Production (Bbl/d) 33,000 Net Oil…
APPENDIX 32
CHANGES SINCE APRIL 2015 PRESENTATION Updated AM peer leverage comparison vs. peers as of Slide 15 3/31/2015 New AR slide showing hedging as a key Antero Slide 24 strategy from 1Q 2015 earnings call presentation 33
MAINTENANCE CAPITAL METHODOLOGY Maintenance Capital Calculation Methodology Estimate the number of new well connections needed during the forecast period in order to offset the natural production decline and maintain the average…
CONTRACTUAL ARRANGEMENTS WITH ANTERO PROVIDE SIGNIFICANT GROWTH OPPORTUNITIES Gathering and Compression 20-year agreement Dedication of all current and future AR acreage in West Virginia, Ohio, and Pennsylvania, outside of current…
FORECASTED CASH FLOW AVAILABLE FOR DISTRIBUTIONS 12 Months Ending ( in millions) December 31, 2015 Antero Midstream Adjusted EBITDA(1) 150 160 Less: Cash interest, net (2.5) Expansion capital expenditures (415 435) Ongoing…
AM OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM Existing dedication of 419,000 acres Gas Gathering and Compression Option to expand outside dedicated area, including ROFR (High-Pressure and Low-Pressure) Minimum Volume…
MARCELLUS ROR% AND GAS PRICE SENSITIVITY Large portfolio of Highly-Rich Gas/Condensate to Dry Gas locations Focused on drilling highly economic rich gas locations rig symbols represent current rig location by Btu regime Assumes…
UTICA ROR% AND GAS PRICE SENSITIVITY Large portfolio of Condensate to Dry Gas locations Focused on drilling highly economic rich gas locations rig symbols represent current rig location by Btu regime Assumes 12/31/2014 WTI strip…
LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has 217,000 net acres of exposure to Utica dry gas play Rice Hess Chesapeake Range 42,000 net acres in Ohio with net 3P reserves of 2.4 Tcf as of…
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