LEADERSHIP IN APPALACHIAN BASIN Top Producers in Appalachia (Net MMcfe/d) 1Q 2015(1)(2) Top 12 U.S. Natural Gas Producers (Net MMcf/d) 1Q 2015(1) 2,000 3,500 1,800 Appalachian Peers 3,000 1,600 1,400 2,500 1,200 2,000 1,000…
CURRENT NGL MARKETING GEOGRAPHICALLY DIVERSE MarkWest currently processes all of Anteros rich gas and markets all NGLs Mariner East II 61,500 Bbl/d AR Commitment(1) 4Q 2016 In-Service (2) 2015 NGL Marketing by Region…
ATTRACTIVE NGL REALIZATIONS AND PROPANE HEDGES Realized NGL Prices as % of WTI(1) 2015E NGL Price Road Map(1) (/Bbl) (% of NGL Bbl) Realized NGL C3+ Price WTI Wtd. Avg. 120 1% Ethane 100% Mont Belvieu NGL Strip(1)(1) % of C3+ Price…
RAPID GROWTH IN LPG EXPORTS AND CAPACITY Marcus Hook LPG Exports - 2014 U.S. Total LPG Export Capacity vs. Export Volumes Africa 2% 1800 Excess export 1600 capacity to support 1400 growing LPG export Antero access to export Mexico/…
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 HIGHEST GROWTH LARGE CAP E&P Anteros 40%+ production growth target for 2015 leads the U.S. large cap E&P industry(1) 45% 40%+ 35% 25.1% 24.3% 25% 20.3% 20.0% 19.2% 14.1% 15% 8.5% 7.9% 5% 3.5% 2.5% (1.0%)…
GROWTH DEBT-ADJUSTED PER SHARE PRODUCTION Based on the strength of its drilling program, and focus on the highly prolific Marcellus and Utica Shale core areas, Antero has delivered 51% compounded annual growth in net debt-adjusted…
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…
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…
WELL ECONOMICS LOW BREAK-EVEN PRICE ECONOMICS Marcellus and Utica undeveloped 3P rich-gas locations have the lowest breakeven prices for both oil and natural gas compared to other U.S. shale plays North American Breakeven Oil Prices…
MIDSTREAM MLP (NYSE: AM) HIGHLIGHTS SUBSTANTIAL VALUE IN MIDSTREAM BUSINESS Corporate Structure Overview(1) Antero Resources Corporation (NYSE: AR) 16.4 Billion Enterprise Value(1) Ba2/BB Corporate Rating 70% Limited Partner…
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…
CATALYSTS 1 Large, low cost core Marcellus and Utica natural gas drilling inventory Sustainability of with associated liquids generates attractive returns supported by long- Anteros Integrated term natural gas hedges, takeaway…
SECTOR POSITIONING 20
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…
20 BCF/D OF INCREMENTAL GAS DEMAND BY 2020 Significant demand growth expected for U.S. Projected Incremental Natural Gas Demand Through 2020 natural gas (Bcf/d) 9.5 Bcf/d of the 20 Bcf/d of 20 incremental demand is 20 More than 65%…
LNG EXPORTS BY PROJECT EXPECTED START UP LNG Exports by Project Through 2020 Assuming 9.5 Bcf/d of LNG exports by 2020, LNG Exports by Project Antero Supplied the U.S. will be the worlds 3rd largest LNG exporter behind Qatar and…
ASSET OVERVIEW 24
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…
PROLIFIC PREDICTABLE RESULTS ACROSS ENTIRE MARCELLUS POSITION Anteros Marcellus well performance has continued to improve over time with a tight statistical range of results across its entire acreage position Marcellus PDP Locations…
INCREASING RECOVERIES AND LOW VARIANCE IN MARCELLUS Anteros Marcellus average 30-day rates have increased by 63% over the past two years as the Company increased per well lateral lengths by 18% and shortened stage lengths by 48%…
MARCELLUS WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies, through longer laterals, shorter stage lengths and faster drilling SSL completions drove a 21% decline in development costs in 2014 while lower service…
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…
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…
UTICA WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies through longer laterals, shorter stage lengths and faster drilling Lower service costs and focus on liquids-rich locations expected to drive development cost…
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…
ANTERO WATER BUSINESS Antero has built an integrated water business to serve its water needs including fresh water treating and delivery for completions as well as handling, recycling and disposal of produced water Projected Water…
FIRM TRANSPORTATION AND FIRM SALES PORTFOLIO Columbia Tennessee Momentum III EQT REX/MGT/ANR 7/26/2009 9/30/2025 11/1/2015 9/30/2030 9/1/2012 12/31/2023 8/1/2012 6/30/2025 7/1/2014 12/31/2034 ANR Local Distribution Firm Sales 1 Firm…
HEALTH, SAFETY, ENVIRONMENT & COMMUNITY Antero Core Values: Protect Our People, Communities And The Environment Strong West Virginia Keys to Execution Presence Antero has more than 3,500 employees and contract personnel working…
CLEAN FLEET & CNG TECHNOLOGY LEADER Antero has contracted for two clean completion fleets to enhance the economics of its completion operations and reduce the environmental impact Replaces diesel engines (for pressure pumping) with…
Antero Midstream (NYSE: AM) Asset Overview 38
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…
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…
APPENDIX 42
CHANGES SINCE APRIL 2015 PRESENTATION Updated slide showing AR net production vs. peers as Slide 2 of 3/31/2015 Updated AR slide showing 2015 production growth Slide 8 forecast vs. large capitalization E&P industry New AR slide…
ANTERO CAPITALIZATION CONSOLIDATED ( in millions) 3/31/2015 Cash 185 Senior Secured Revolving Credit Facility 790 6.00% Senior Notes Due 2020 525 5.375% Senior Notes Due 2021 1,000 5.125% Senior Notes Due 2022 1,100 5.625% Senior…
2015 CAPITAL BUDGET Anteros 2015 capital budget is 1.8 billion, a 49% decrease from 2014 capital expenditures of 3.5 billion 3.5 Billion - 2014 1.8 Billion 2015 By Segment (MM) By Segment (MM) 50 150 841 49% 197 2,477…
COMPLETION DEFERRALS OPTIMIZING PRICING Plan to defer 50 Marcellus well completions into 2016 to achieve higher gas price realizations Regional gathering pipeline expected in-service late 2015 will connect incremental Marcellus…
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…
OUTSTANDING RESERVE GROWTH NET PROVED RESERVES (Tcfe)(1) 2014 RESERVE ADDITIONS 3P reserves increased 16% to 40.7 Tcfe at 12/31/14 with a (Tcfe) Marcellus Utica PV-10 of 22.8 billion 14.0 Estimated 10% well cost reduction since YE…
CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 35 year proved reserve life based on 2014 production annualized Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 2.5 BBbl of NGLs and condensate…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus SSL Well Economics and Total Gross Locations(1) Natural Gas 12/31/2014 strip 60% 1,010 1,050 Oil 12/31/2014 strip 889 45% 900 NGLs 50% of Oil Price Total…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 12/31/2014 strip 55% 289 60% 300 Oil 12/31/2014 strip 248 254 Total 3P Locations 250 NGLs 50% of Oil Price 45%…
LARGEST GAS HEDGE POSITION IN U.S. E&P 2.2 billion mark-to-market unrealized gain based on 3/31/2015 prices 2.4 Tcfe hedged from April 1, 2015 through year-end 2020 and 259 Bcf of TCO basis hedged from 2015 to 2017 COMMODITY HEDGE…
FIRM TRANSPORTATION REDUCES APPALACHIAN BASIS EXPOSURE Anteros firm transportation (FT) portfolio increases visibility on production growth and increases exposure to Gulf Coast and Midwest pricing, with little incremental cost per Mcf…
ANTERO FIRM TRANSPORTATION APPROPRIATELY DESIGNED TO ACCOMMODATE GROWTH Marketable FT (BBtu/d) (2) (3) % FT Utilization Anteros firm transport (FT) is well (BBtu/d) Firm Transportation / Firm Sales (BBtu/d) (including utilized…
POSITIVE RATINGS MOMENTUM Moodys / S&P Historical Corporate Credit Ratings Moodys Upgrade Rationale S&P Upgrade Criteria The upgrade reflects Moody's expectation that Antero will continue to We could raise the ratings due to our…
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