Barclays CEO Energy/Power Conference September 8, 2015
THE BRIDGE TO BETTER OIL & GAS PRICES Antero holds a leading position within the lowest cost U.S. basin, substantial long-term hedge position, 6.5+ billion of direct and indirect liquidity, and an increasing % of volumes sold to…
HIGH RETURN LOCATIONS STILL DRIVE VALUE CREATION Using the 6/30/2015 strip, 100% of Anteros 4,200+ fully-engineered undrilled Marcellus/Utica 3P locations are economic compared to Anteros underlying weighted average cost of capital…
STRONG LIQUIDITY YIELDS FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 6/30/15 Debt Liquid Non-E&P Assets 6/30/15 Debt Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type MM (1) Credit facility 1,118…
NORTHEAST NGLS ARE TRANSPORTATION CHALLENGED Not so much a supply problem but more of a logistics problem for NGLs in the northeast The majority of northeast NGL production is being transported by expensive rail and trucking NGLs that…
NORTHEAST NGL GROWTH IS SUPPORTED BY INCREASING TAKEAWAY OPTIONS NGL transportation rates are expected to decline significantly as pipeline options to domestic markets and export terminals go in- service (Mariner East 2, for example)…
U.S. EXPORTS ARE SUPPORTED BY EXCESS DOCK CAPACITY AND FLEET GROWTH LPG transportation rates from northeast fractionation to Europe and Asia should improve by 0.15 to 0.20 per gallon by YE 2016, driven both by pipelines replacing rail…
POSITIVE FOR LONG-TERM NGL MARKETS Forecast global LPG demand growth of 800 MBbl/d to 1 MMBbl/d to be driven by petrochem projects in Asia and Middle East as well as residential/commercial, alkylate and power generation demand Naphtha…
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 1H 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 1,785 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…
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 371,000 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) 11.5 Billion Enterprise Value(1) Ba2/BB Corporate Rating 70% Limited Partner…
TAKEAWAY LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA 4.85 Bcf/d portfolio by YE 2018 with 85% serving favorable markets with an average demand fee of 0.40/MMBtu Antero Long Term Firm Processing & Takeaway…
HEDGING INTEGRAL TO LONG-TERM BUSINESS MODEL Hedging is a key component of Anteros business model - supports development of a large, repeatable drilling inventory Antero has realized 1.3 billion of gains on commodity hedges over the…
REALIZATIONS A LEADER IN REALIZATIONS & MARGINS AMONG LARGE-CAP APPALACHIAN PEERS Antero continues to be a leader in its peer group 3.86/Mcf natural gas realizations and 1.90/Mcfe EBITDAX margin in 2Q 2015 Yields recycle ratio 3.0x…
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 Driven by expected in-service dates of regional gathering (4Q 2015) and…
REALIZATIONS NGL REALIZATIONS AND PROPANE HEDGES Realized NGL Prices as % of WTI(1) 2015E NGL Price Road Map(1) (/Bbl) (% of Antero NGL Bbl) 120 Realized NGL C3+ Price 1% Ethane 100% Wtd. Avg. 100 94.10 98.01 93.03 Mont Belvieu NGL…
ASSET OVERVIEW 20
WELL COST REDUCTIONS SUPPORT SUSTAINABLE BUSINESS MODEL Antero has reduced average well costs for a 9,000 lateral by 16% in the Marcellus and 18% in the Utica as compared to 2014 well costs, through a combination of service cost…
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated RJ SMITH PAD Operating 6 drilling rigs including BEE LEWIS PAD 30-Day Rate 1 intermediate rigs 30-Day Rate 4-well combined 4-well combined 30-Day Rate of 410,000 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…
WORLD CLASS OHIO UTICA SHALE DEVELOPMENT PROJECT 100% operated Cadiz Operating 4 drilling rigs Processing Plant 149,000 net acres in the core rich gas/ condensate window (71% includes processable rich gas assuming an 1100 Btu…
ANTEROS FIRST UTICA DRY GAS WELL Dry gas fairway extends from the Antero Utica acreage in eastern IP / 1,000 Lateral (MMcf/d) Range EQT CNX Ohio to the Antero Marcellus play acreage in northern West 5.0 10.0 Claysville SC 11H Scotts…
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 AM has exercised…
ANTERO ADVANCED WASTEWATER TREATMENT Antero plans to integrate an advanced wastewater treatment complex into its water business Advanced Wastewater Treatment Illustrative Produced & Flowback Water Volumes Veolia will build and…
Antero Midstream (NYSE: AM) Asset Overview 28
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 428,000 net leasehold acres for gathering and…
LEADERSHIP IN APPALACHIAN BASIN Top Producers in Appalachia (Net MMcfe/d) 2Q 2015(1)(2) Top 12 U.S. Natural Gas Producers (Net MMcf/d) 2Q 2015(1) 1,800 3,500 1,600 3rd Largest Appalachian Peers 3,000 1,400 Appalachian Producer…
APPENDIX 32
ANTERO CAPITALIZATION CONSOLIDATED ( in millions) 6/30/2015 Cash 143 Senior Secured Revolving Credit Facility 1,118 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%…
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…
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…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus Well Economics and Total Gross Locations(1) Natural Gas 12/31/2014 strip 60% 1,200 Oil 12/31/2014 strip 1,010 42% 889 1,000 Total 3P Locations NGLs 32.5%…
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…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 12/31/2014 strip 289 60% 300 Oil 12/31/2014 strip 248 49% 254 43% 250 Total 3P Locations NGLs 32.5% of Oil…
OHIO UTICA WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies through longer laterals, shorter stage lengths and faster drilling Lower service costs and efficiencies, and focus on liquids-rich locations, driving…
LARGEST GAS HEDGE POSITION IN U.S. E&P 2.0 billion mark-to-market unrealized gain based on 6/30/2015 prices 2.8 Tcfe hedged from July 1, 2015 through year-end 2021 and 140 Bcf of TCO basis hedged from 2015 to 2017 COMMODITY HEDGE…
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…
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…
NGL EXPORTS AND NETBACKS STEP-UP BY 4Q 2016 Upon in-service of Mariner East 2, Antero will have the ability to market its propane and n-butane to international buyers, providing uplifts of 0.14/Gal and 0.12/Gal, respectively, to the…
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…
STRONG FINANCIAL LIQUIDITY AND DEBT TERM STRUCTURE Over 3.5 billion of combined AR and AM financial liquidity as of 6/30/2015 No leverage covenant in AR bank facility, only interest coverage and working capital covenants AR LIQUIDITY…
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…
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…
ANTERO EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 6/30/2015 6/30/2015 EBITDAX: Net income (loss) including noncontrolling interest (139.5) 1,072.6 Commodity derivative fair value (gains)…
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