LEADING UNCONVENTIONAL MIDSTREAM BUSINESS MODEL High Growth Sponsor Largest Dedicated Core Drives AM Throughput Liquids-Rich Acreage and Distribution Growth Position in Appalachia 2 3 Growth Liquids- Premier E&P Operator…
SPONSOR STRENGTH AR LEADER 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 1,600 3,000 1,400 2,500 1,200…
SPONSOR STRENGTH 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)…
GROWTH HIGHEST GROWTH LARGE CAP E&P Anteros 40%+ production growth target for 2015 leads the U.S. large cap E&P industry(1) and drives AM growth 45% 40%+ 35% 25.1% 24.3% 25% 20.7% 20.0% 19.8% 14.1% 15% 8.9% 8.5%…
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…
SUSTAINABLE BUSINESS MODEL AR 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…
SUSTAINABLE BUSINESS MODEL 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…
MITIGATED COMMODITY RISK 100% FIXED FEE RICH TO DRY (1) Contract Mix Commodity Commodity Based Commodity Based Based Commodity Fixed Fixed Fixed Based Fee Fee Fee 100% 100% 100% Fixed Fixed Fixed Fee Fee Fee 94% 97%…
MITIGATED COMMODITY RISK FIRM TRANSPORTATION & SALES PORTFOLIO Antero Resources Transportation Portfolio Antero Resources has built the largest firm transportation portfolio with 4.1 BBtu/d by 2018 BBtu/d 4.5 Gross Gas Production AR…
MITIGATED COMMODITY RISK HEDGING IS INTEGRAL TO AR BUSINESS MODEL Hedging is a key component of ARs business model due to its large repeatable drilling inventory AR has realized 1.1 billion of gains on commodity hedges over the past 6…
VALUE CHAIN OPPORTUNITY FULL MIDSTREAM VALUE CHAIN Well Pad Condensate Gathering End Stabilization Users (Miles) YE 2014 YE 2015 Compression (Miles) YE 2014 YE 2015 Utica 16 20 Marcellus 62 81 Low Pressure Gathering Utica 35…
STRONG FINANCIAL POSITION SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (3/31/2015) Financial Flexibility Undrawn 1 billion revolver in place to fund future growth ( MMs) capital (5x Debt/EBITDA Cap) Revolver Capacity 1,000 162…
TOP TIER DISTRIBUTION GROWTH & HEALTHY COVERAGE 3Year Expected Distribution Growth Rate and DCF Coverage(1) 40% 1.80x 1.63x 35% 1.44x 1.50x 1.60x 1.46x 1.40x 30% 1.25x 1.25x 1.17x 1.20x 1.21x 1.18x 1.15x 1.10x 1.20x 25%…
ATTRACTIVE VALUE PROPOSITION Attractive appreciation potential on a relative basis AM Yield vs Distribution Growth 7.0% MWE R-squared = .93 6.0% 5.0% CNNX AM - Current TEP Yield (%) 4.0% Yield: 2.68% Price:…
Antero Midstream (NYSE: AM) Asset Overview 19
ANTERO MIDSTREAM ASSET 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 1 Bcf/d Sherwood processing complex Significant growth…
ANTERO MIDSTREAM ASSETS RICH & DRY GAS UTICA Utica Gathering & Compression Provides Utica natural gas and condensate gathering services Liquids-Rich gas delivered into MWEs 600 MMcf/d Seneca processing complex Condensate delivered…
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…
AM UPSIDE OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM Option to acquire at fair market value 100% of ARs water Integrated Water Business business dedicating 550,000 net acres, including ROFO on future services; private letter…
AM OPTION INTEGRATED WATER BUSINESS Currently owned by AR who recently received a Private Letter Ruling (PLR) from the IRS regarding qualifying income AM holds option to purchase 100% of water business at fair market value Antero has…
REGIONAL PIPELINE PROJECT Regional Gathering Pipeline Option to Acquire Up To 15% Non-Op Equity Interest Throughput Capacity: 1.4 Bcf/d Pipeline 50 miles of 36 inch pipeline Specifications: Project Capital: 400 Million In-Service…
PROCESSING VALUE CHAIN POTENTIAL FOR UNDEDICATED ACREAGE Antero Resources has 11.6 Tcf of processable gross 3P gas reserves and 616 Million Bbls of gross 3P NGL reserves across 128,500 gross processable Marcellus acres that are…
DEEP UTICA DRY GAS Antero has 217,000 net acres of exposure to Utica dry gas Utica Shale Dry Gas Acreage in OH/WV/PA(1) play Chesapeake Range 42,000 net acres in Ohio with net 3P reserves of 2.4 Tcf Rice Hess Hubbard BRK 3H…
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…
TOP TIER DISTRIBUTION GROWTH Antero Midstream is targeting 28% to 30% annual distribution growth through 2017 Distribution Per Unit(1) 0.50 0.45 0.40 0.35 0.30 0.25 0.20 0.18 0.17 0.15 0.10 0.05 0.00…
APPENDIX 32
LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA Antero Long Term Firm Processing & Takeaway Position (2018) Accessing Favorable Markets Mariner East II 4.1 Bcf/d Chicago(1) 62 MBbl/d Commitment (0.04) / Firm…
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…
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…
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 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…
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 UPDATED 2015 GUIDANCE Key Operating & Financial Assumptions 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…
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…
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