CHANGES SINCE AUGUST 2015 PRESENTATION New AR slide highlighting key operational and financial Slide 3 strengths as bridge to better oil and gas price environment New AR slide highlighting high return undrilled inventory and Slide 4…
THE BRIDGE TO BETTER OIL & GAS PRICES Antero holds a leading position within the lowest cost U.S. basin, substantial long-term hedge position, 5.6 billion of direct and indirect liquidity, and an increasing % of volumes sold to…
HIGH RETURN LOCATIONS 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 (WACC)…
WATER DROP DOWN ANNOUNCED Transaction Specifics Anteros Marcellus and Utica freshwater delivery business, the fully contracted future ASSETS: advanced wastewater treatment complex and 20-year agreement to cover all fluid handling and…
STRONG FINANCIAL POSITION PRO FORMA FOR WATER DROP DOWN Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM)(4) 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 (2)…
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. LPG EXPORTS ARE SUPPORTED BY EXCESS DOCK CAPACITY AND FLEET GROWTH LPG transportation rates from northeast fractionation to Europe and Asia expected to improve by 0.15 to 0.20 per gallon by YE 2016, driven both by pipelines…
POSITIVE OUTLOOK FOR LONG-TERM LPG 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…
POSITIVE FOR LONG-TERM ETHANE MARKETS U.S. ethane demand is projected to increase at an annual 3.5% CAGR through 2020, primarily based on an 8% CAGR for U.S. petrochem demand and a 30% growth in exports primarily to Europe The growth…
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 HIGHEST GROWTH LARGE CAP E&P Anteros 40%+ production growth guidance for 2015 leads the U.S. large cap E&P industry(1) 45% 40%+ 35% 27.4% 26.3% 26.2% 25% 22.8% 19.7% 15.3% 15% 12.4% 11.7% 11.2% 8.7% 5% 2.5%…
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 29% 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 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) 10.7 Billion Enterprise Value(1) Ba2/BB Corporate Rating 67% 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 BUSINESS MODEL Hedging is a key component of Anteros business model which includes development of a large, repeatable drilling inventory Antero has realized 1.3 billion of gains on commodity hedges over the past 6…
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 2Q 2015 Natural Gas Realizations (/Mcf) NYMEX 2Q…
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…
CATALYSTS 1 Large, low unit cost core Marcellus and Utica natural gas drilling Sustainability of inventory with associated liquids generates attractive returns supported Anteros Integrated by long-term natural gas hedges, takeaway…
LEADERSHIP IN APPALACHIAN BASIN Antero has the largest proved reserve base, the largest core liquids-rich acreage position and is one of the largest producers in the Appalachian Basin Top Producers in Appalachia (Net MMcfe/d) 2Q…
ASSET OVERVIEW 27
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…
INCREASING RECOVERIES AND LOW VARIANCE IN MARCELLUS Anteros Marcellus average 30-day rates have increased by 67% over the past two years as the Company increased per well lateral lengths by 12% and shortened stage lengths by 45%…
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…
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…
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…
UTICA OHIO 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 the right to build gathering and compression Chesapeake Rice Hess infrastructure to move Anteros future dry gas Utica Bigfoot 9H Porterfield…
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…
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 41
AMS FULL VALUE CHAIN BUSINESS MODEL Well Pad Condensate Gathering End Stabilization Users (Miles) YE 2014 YE 2015E Compression (Miles) YE 2014 YE 2015E Utica 16 19 Marcellus 62 76 Low Pressure Gathering Utica 35 36 Total 97…
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 428,000 net leasehold acres for gathering and…
ANTERO INTEGRATED WATER BUSINESS AM has acquired ARs integrated water business for 1.05 billion plus earn out payments of 125 million at year-end in each of 2019 and 2020 The acquired business includes Anteros Marcellus and Utica…
ADVANCED WASTEWATER TREATMENT Antero has contracted with Veolia to integrate an advanced wastewater treatment complex into its water business Advanced Wastewater Treatment Illustrative Produced & Flowback Water Volumes Veolia will…
SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (6/30/2015)(1) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5x Debt/EBITDA Cap) Revolver Capacity(2) 1,500 Pro forma liquidity of…
APPENDIX 48
ANTERO CAPITALIZATION CONSOLIDATED Pro Forma ( in millions) 6/30/2015 6/30/2015(4) Cash 143 30 Senior Secured Revolving Credit Facility 1,118 763 6.00% Senior Notes Due 2020 525 525 5.375% Senior Notes Due 2021 1,000 1,000 5.125%…
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…
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…
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…
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%…
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…
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 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…
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…
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/…
NGL EXPORTS AND NETBACKS STEP-UP BY 4Q 2016 Upon in-service of Mariner East II, Antero will have the ability to market its propane and n-butane to international buyers, which we expect will provide uplifts of 0.14/Gal and 0.12/Gal,…
LIQUIDITY 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…
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…
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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