ANTERO: A PURE PLAY ON THE MARCELLUS / UTICA Marcellus is one of the largest gas fields in the world today Critical Mass In Two Largest gas field in the U.S. currently producing over 15 Bcf/d World Class Shale Plays Antero has 37.5…
SIGNIFICANT MOMENTUM SINCE IPO Net Production Liquids Production Proved Reserves Net Acres (MMcfe/d) (Bbl/d) (Bcfe) 90% 216% 45% 21% 1,400 30,000 1,200 10,000 1,080 25,000 9,107 600,000 520,000 1,000 24,000 500,000 7,500…
PREMIER UNCONVENTIONAL RESOURCE PLATFORM COMBINED TOTAL 6/30/14 RESERVES Assumes Ethane Rejection Net Proved Reserves 9.1 Tcfe Net 3P Reserves 37.5 Tcfe Pre-Tax 3P PV-10 25.9 Bn Net 3P Reserves & Resource 47.0 Tcfe Net 3P Liquids…
LARGEST PORTFOLIO OF FIRM PROCESSING AND GAS & NGL TAKEAWAY IN APPALACHIA Antero Long Term Firm Processing & Takeaway Position (2018) Accessing Favorable Markets Chicago(1) +0.32 / (0.08) Dom South(1) (1.38) / (1.21)…
ANTERO REALIZED PRICE ROAD MAP Antero is forecasting realized gas prices including hedges at a premium to NYMEX strip prices for Q4 2014 through 2016, assuming current strip prices and basis, existing firm transportation and hedges,…
STRONG TRACK RECORD OF GROWTH NET PROVED SEC RESERVES (Bcfe) AVERAGE NET DAILY PRODUCTION (MMcfe/d) Marcellus Utica Marcellus Utica Guidance 10,000 2,400 9,107 2,200 8,000 7,632 1,800 1,500 6,000 1,237 4,283 1,200 1,080 4,000…
NAV GROWTH (MMcfe/d) Land acquisitions and drill bit drive NAV growth ( of Gross Wells) 1,000 325 20 Rigs Added 35,000 net acres in 300 900 1H 2014 for 240 million, which resulted in 2.0 Tcfe 275 of 3P reserves and 1.5 800…
MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW RISK, HIGH RETURN GROWTH PROFILE MARCELLUS SSL WELL ECONOMICS(1) UTICA WELL ECONOMICS(1)(2) 125% 896 875 1000 1,000 125% 265 300 248 103% 254 100% 727 800 250 Total 3PLlocations…
LOWEST FINDING & DEVELOPMENT COST AMONG U.S. PRODUCERS Antero ranks as the most efficient finder and developer of reserves, on a per Mcfe basis, based on a 2011-2013 average all-in F&D cost analysis prepared by Credit Suisse 3-Year…
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 % FT Utilization % FT Utilization % FT Utilization (BBtu/d) (including (including (including Anteros firm transport is well marketable FT): marketable FT):…
SIGNIFICANT LONG-TERM COMMODITY HEDGE POSITION NATURAL GAS HEDGE POSITION BBtu/d /MMBtu Hedged Volume Average Index Hedge Price(1) Current NYMEX Strip Mark-to-Market Value 1,000 7.00 6.00 800 4.99 4.42 4.55 4.34 4.50 4.41 5.00…
3Q 2014 REALIZATIONS 3Q 2014 NATURAL GAS REALIZATIONS (/MCF) Average 3Q 2014 Average Average Average Hedge Average 3Q 2014 Premium/ Region % Sales NYMEX Price Differential(2) BTU Upgrade Effect Realized Gas Price(3) Discount TCO…
BIGGEST BANG FOR THE BUCK Antero has the highest price realizations and EBITDAX per Mcfe combined with the lowest all-in F&D cost among its large cap Appalachian peers based on 3Q 2014 results Driven by liquids-rich production, firm…
SIGNIFICANT ETHANE OPTIONALITY Antero plans to leave most of its ethane in the gas stream until ethane prices improve relative to dry Shell gas prices Cracker If Antero were to recover ethane, 3P reserves at Capacity 100,000 Bbl/d…
POSITIONED FOR GROWTH & PROFITABILITY Highest Growth & Highest Margin Large Cap E&P Focused On Marcellus & Utica 2014 Projected Growth (%)(1) 3Q 2014 EBITDAX/Mcfe(2) 100% 92% 2.93 3.00 80% 2.50 2.00 60% 3-Year Growth-Adjusted…
ASSET OVERVIEW 18
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated DOTSON UNIT EQT BEE LEWIS PAD Operating 15 drilling rigs 30-Day Rate 30-Day Rate 30-Day Rate 1H: 12.4 MMcfe/d 12 Recent Wells including 5 intermediate rigs 4-well…
MARCELLUS DEVELOPMENT PROGRAM TARGET THE LIQUIDS Antero continues to focus its development program further west to develop liquids-rich locations with higher rates of return From 2013 to 2015 Antero will increase the average BTU…
ANTEROS MARCELLUS SHALE TYPE CURVE Antero has nearly five years of production history to support its Non-SSL type curve Anteros SSL type curve is 1.7 Bcf/1,000 with only 10% to 15% higher well costs vs. Non-SSL Lack of faulting and…
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 regime Assumes 9/30/2014…
LEADING UTICA SHALE CORE POSITION DELIVERS CONDENSATE AND NGLS Utica Shale Industry Activity(1) 100% operated Cadiz Operating 7 rigs including 2 intermediate rigs GULFPORT Processing 24-Hour IP Plant 134,000 net acres in the core…
UTICA DEVELOPMENT PROGRAM TARGET THE RICH GAS REGIMES In the second half of 2014 and all of 2015 Antero has shifted its development plan to focus more heavily in the rich gas regimes in the Utica Shale play At current pricing, the…
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 regime Assumes 9/30/2014 strip pricing for…
LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has 183,000 net acres of exposure to Utica dry gas play Hess Chesapeake Range 29,000 net acres in Ohio with net 3P reserves of 1.9 Tcf as of…
LARGE MIDSTREAM FOOTPRINT Significant investment in infrastructure - estimated cumulative YE 2014 total capital Utica investment in midstream 1.2 billion Shale Includes gathering lines and compressor stations Gathering and…
AM OPTIONS REGIONAL PIPELINE INVESTMENTS ET Rover Pipeline Rover Pipeline Option to Acquire Up to 20% Non-Op Equity Interest Operator Energy Transfer Antero Midstream Option Throughput Capacity: 3.25 Bcf/d Up to 20% Ownership 2017…
AM OPTION FRESH WATER DISTRIBUTION SYSTEMS Projected Midstream Infrastructure(1) Marcellus Utica Shale Shale Total YE 2014E Cumulative Fresh Water System Capex (MM) 300 100 400 Water Pipelines (Miles) 107 48 155 Water Storage…
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 4,500 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 KEY ATTRIBUTES 520,000 Net Acres in the Core Marcellus and Utica Shales Triple Digit Historical Production and Reserve Growth Low Cost Leader / High Return Projects Leading Appalachian Processing and Takeaway…
APPENDIX 33
PRO FORMA CAPITALIZATION ( in millions) 9/30/2014 Pro Forma 1.0 Bn AM IPO(4) 9/30/2014 Cash 6 256 Senior Secured Revolving Credit Facility 1,505 809 6.00% Senior Notes Due 2020 525 525 5.375% Senior Notes Due 2021 1,000 1,000…
ANTERO 2014 GUIDANCE Key 2014 Operating & Financial Assumptions(1) Key Variable 2014 Guidance Range Natural Gas Realized Price Differential to NYMEX (/Mcf)(2) (0.15) (0.25) Oil Realized Price Differential to WTI (/Bbl) (10.00)…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus SSL Well Economics and Total Gross Locations(1) Natural Gas 9/30/2014 strip 125% 896 1,000 Oil 9/30/2014 strip for 2014-2016, 875 85 flat thereafter 100% 727…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 9/30/2014 strip 120% 300 248 103% 265 254 Oil 9/30/2014 strip for 2014-2016, Total 3P Locations 100% 250 85…
LOW DEVELOPMENT COST DRIVES BEST IN CLASS RECYCLE RATIOS 3-Year Proved Development Costs (/Mcfe) through 2013 /Mcfe 6.00 Antero Appalachia-Focused Peers Other Peers 5.00 4.00 3.00 2.00 1.60 1.15 1.18 1.21 1.00 0.00…
ANTERO UTICA SHALE WELLS 30-DAY RATES Outstanding 30-day average rates with high liquids content Anteros wells produced against 1,100 psi line pressure until late January 2014 due to lack of compression facilities First 120 MMcf/d…
CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 30 year proved reserve life based on 1H 2014 production annualized Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 2.3 BBbl of NGLs and…
MARCELLUS SHALE RICH GAS LIQUIDS AND PROCESSING UPGRADE Marcellus Shale 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…
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…
POSITIVE RATINGS MOMENTUM Moodys / S&P Historical Corporate Credit Ratings Moodys Upgrade Criteria S&P Upgrade Criteria An upgrade could be considered if debt / average daily production is We could raise the ratings due to our…
PRO FORMA OFFERING BALANCE SHEET POSITIONED FOR LONG-TERM GROWTH The recent bond offerings, at progressively lower coupons, have allowed Antero to reduce its cost of debt to approximately 5.0% and enhance liquidity while extending the…
MARCELLUS & UTICA ADVANTAGED ECONOMICS Low cost, liquids-rich Utica and Marcellus Shales will remain attractive in most commodity price environments U.S. INCREMENTAL GAS SUPPLY BREAK-EVEN PRICE CURVE(1) 3,000 Antero Drilling…
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