Skip to main content January 2016 Company Overview Update – Antero Resources Investor Presentation | Shale Experts
Loading...
Pm

January 2016 Company Overview Update – Antero Resources

Antero Resources · Jan 16, 2016 · 67 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. January 2016 Company Overview Update – Antero Resources – slide 1
    Company Overview January 2016
  2. January 2016 Company Overview Update – Antero Resources – slide 2
    CHANGES SINCE JANUARY 2016 PRESENTATION Updated AR slides for actual 2015 production results in Slides 5, 7, 25, 29 Marcellus and Utica Updated AR slide showing actual 4Q natural gas and Slide 14 total realizations Updated AR slides…
  3. January 2016 Company Overview Update – Antero Resources – slide 3
    ANTERO THE BRIDGE TO BETTER OIL & GAS PRICES Highly Sustainable Business Model - Antero holds a leading position within the lowest cost U.S. basin, a large and growing production base, a substantial long-term hedge position, over 5.0…
  4. January 2016 Company Overview Update – Antero Resources – slide 4
    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 High Return in Appalachia 1 4 Well Locations Drilling…
  5. January 2016 Company Overview Update – Antero Resources – slide 5
    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 Net 3P Reserves & Resource 53 to 57 Tcfe Net 3P…
  6. January 2016 Company Overview Update – Antero Resources – slide 6
    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 28% compounded annual growth in net debt-adjusted…
  7. January 2016 Company Overview Update – Antero Resources – slide 7
    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 1,493 12,000 1,200 9,000 1,007 7,632 6,000 4,283 600 522 2,844…
  8. January 2016 Company Overview Update – Antero Resources – slide 8
    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 as of 12/31/2014 Antero controls an estimated 37% of the NGLs in the liquids-rich…
  9. January 2016 Company Overview Update – Antero Resources – slide 9
    WELL ECONOMICS WELL COST REDUCTIONS SUPPORT SUSTAINABLE BUSINESS MODEL 12/31/15 NYMEX Strip Pricing - Before Hedges At 12/31/2015 strip pricing, Antero has 2,450 locations with well economics that exceed 20% rate of 12/31/15 Strip…
  10. January 2016 Company Overview Update – Antero Resources – slide 10
    MIDSTREAM MLP (NYSE: AM) HIGHLIGHTS SUBSTANTIAL VALUE IN MIDSTREAM BUSINESS Corporate Structure Overview(1) Antero Resources Corporation (NYSE: AR) Public 9.9 Billion Enterprise Value(1) Ba2/BB Corporate Rating 33% LP Interest…
  11. January 2016 Company Overview Update – Antero Resources – slide 11
    TAKEAWAY LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA Anteros natural gas firm transportation (FT) portfolio builds to 4.85 Bcf/d by YE 2018 with 87% serving favorable markets, with an average demand fee of…
  12. January 2016 Company Overview Update – Antero Resources – slide 12
    HEDGING INTEGRAL TO BUSINESS MODEL Hedging is a key component of Anteros business model which includes development of a large, repeatable drilling inventory Locks in higher returns in a low commodity price environment and reduces well…
  13. January 2016 Company Overview Update – Antero Resources – slide 13
    LIQUIDITY STRONG BALANCE SHEET AND FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 9/30/2015 Debt Liquid Non-E&P Assets 9/30/2015 Debt Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type MM Credit facility…
  14. January 2016 Company Overview Update – Antero Resources – slide 14
    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 3Q and 4Q 2015 Natural Gas Realizations (/Mcf)…
  15. January 2016 Company Overview Update – Antero Resources – slide 15
    REALIZATIONS REALIZED PRICE ROAD MAP Anteros exposure to favorable gas price indices like Chicago, Gulf Coast, NYMEX and TCO is expected to increase to 95% by 2016 Improved 2016 realizations driven by Stonewall gathering pipeline which…
  16. January 2016 Company Overview Update – Antero Resources – slide 16
    REALIZATIONS NGL REALIZATIONS AND PROPANE HEDGES Realized NGL Prices as % of WTI(1) (/Bbl) Realized NGL C3+ Price WTI 120.00 100.00 98.01 93.03 Target 2016 NGL pricing of 37% of WTI based on 80.00 12/31/15 strip pricing 60.00 52.61…
  17. January 2016 Company Overview Update – Antero Resources – slide 17
    NORTHEAST NGLS ARE TRANSPORTATION CHALLENGED Not so much a supply problem but more of a logistics problem for NGLs in the northeast today The majority of northeast NGL production is being transported by expensive rail and trucking NGLs…
  18. January 2016 Company Overview Update – Antero Resources – slide 18
    NORTHEAST NGL GROWTH IS SUPPORTED BY INCREASING TAKEAWAY OPTIONS NGL transportation rates are expected to decline 0.12 to 0.15 per gallon by 2017 as pipeline options to domestic markets and export terminals go in-service (Mariner East…
  19. January 2016 Company Overview Update – Antero Resources – slide 19
    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 0.05 to 0.15 per gallon by YE 2016, driven both by pipelines replacing rail…
  20. January 2016 Company Overview Update – Antero Resources – slide 20
    POSITIVE OUTLOOK FOR LONG-TERM NGL MARKETS Forecast global LPG demand growth of 800 MBbl/d to 1 MMBbl/d by 2020 to be driven by petrochem projects in Asia and Middle East as well as residential/commercial, alkylate and power generation…
  21. January 2016 Company Overview Update – Antero Resources – slide 21
    KEY 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,…
  22. January 2016 Company Overview Update – Antero Resources – slide 22
    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 Appalachian Producers by Proved Reserves (Bcfe) YE…
  23. January 2016 Company Overview Update – Antero Resources – slide 23
    ASSET OVERVIEW 23
  24. January 2016 Company Overview Update – Antero Resources – slide 24
    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 At 12/31/2015 strip pricing, Antero has…
  25. January 2016 Company Overview Update – Antero Resources – slide 25
    WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated RJ SMITH PAD Operating 7 drilling rigs including BEE LEWIS PAD 30-Day Rate 1 intermediate rig 30-Day Rate 4-well combined 4-well combined 30-Day Rate of 422,000 net acres…
  26. January 2016 Company Overview Update – Antero Resources – slide 26
    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…
  27. January 2016 Company Overview Update – Antero Resources – slide 27
    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%…
  28. January 2016 Company Overview Update – Antero Resources – slide 28
    MARCELLUS WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies, through longer laterals, shorter stage lengths and faster drilling SSL completions drove a 12% decline in development costs in 2015 while lower service…
  29. January 2016 Company Overview Update – Antero Resources – slide 29
    WORLD CLASS OHIO UTICA SHALE DEVELOPMENT PROJECT 100% operated Operating 3 drilling rigs Cadiz Processing 147,000 net acres in the core rich gas/ Plant condensate window (73% includes processable rich gas assuming an 1100 Btu…
  30. January 2016 Company Overview Update – Antero Resources – slide 30
    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…
  31. January 2016 Company Overview Update – Antero Resources – slide 31
    LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has completed its first dry gas Utica well a 6,620 Chesapeake Rice Hess lateral in Tyler County, WV Bigfoot 9H Porterfield 1H-17 Hubbard BRK 3H…
  32. January 2016 Company Overview Update – Antero Resources – slide 32
    ANTEROS FIRST UTICA DRY GAS WELL Antero recently drilled and completed its first dry gas Utica well in IP / 1,000 Lateral (MMcf/d) Range EQT CNX Tyler County, WV (Rymer 4HD) 5.0 10.0 Claysville SC 11H Scotts Run Gaut 4IH 5,420…
  33. January 2016 Company Overview Update – Antero Resources – slide 33
    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…
  34. January 2016 Company Overview Update – Antero Resources – slide 34
    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…
  35. January 2016 Company Overview Update – Antero Resources – slide 35
    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…
  36. January 2016 Company Overview Update – Antero Resources – slide 36
    Antero Midstream (NYSE: AM) Asset Overview 36
  37. January 2016 Company Overview Update – Antero Resources – slide 37
    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…
  38. January 2016 Company Overview Update – Antero Resources – slide 38
    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 434,000 net leasehold acres for gathering and…
  39. January 2016 Company Overview Update – Antero Resources – slide 39
    ANTERO INTEGRATED WATER BUSINESS AM 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…
  40. January 2016 Company Overview Update – Antero Resources – slide 40
    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…
  41. January 2016 Company Overview Update – Antero Resources – slide 41
    HIGH GROWTH MIDSTREAM THROUGHPUT Low Pressure Gathering (MMcf/d) High Pressure Gathering (MMcf/d) 1,800 Utica Marcellus 1,800 Utica Marcellus 1,600 1,600 1,400 1,400 1,216 1,195 1,124 1,134 1,197 1,200 1,038 1,200 935 965 1,000 908…
  42. January 2016 Company Overview Update – Antero Resources – slide 42
    SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (9/30/2015) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5x Debt/EBITDA Cap) Revolver Capacity 1,500 Liquidity of 993 million at…
  43. January 2016 Company Overview Update – Antero Resources – slide 43
    APPENDIX 43
  44. January 2016 Company Overview Update – Antero Resources – slide 44
    ANTERO CAPITALIZATION CONSOLIDATED ( in millions) 9/30/2015 Cash 27 Senior Secured Revolving Credit Facility 500 Midstream Bank Credit Facility 525 6.00% Senior Notes Due 2020 525 5.375% Senior Notes Due 2021 1,000 5.125% Senior…
  45. January 2016 Company Overview Update – Antero Resources – slide 45
    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…
  46. January 2016 Company Overview Update – Antero Resources – slide 46
    ANTERO MIDSTREAM 2015 GUIDANCE Key Operating & Financial Assumptions Key Variable Initial Guidance(1) Updated Guidance(2) Adjusted EBITDA (MM) 150 - 160 180 - 190 Distributable Cash Flow (MM) 135 - 145 160 - 170 Year-over-Year…
  47. January 2016 Company Overview Update – Antero Resources – slide 47
    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…
  48. January 2016 Company Overview Update – Antero Resources – slide 48
    COMPLETION DEFERRALS OPTIMIZING PRICING Plan to defer 50 Marcellus well completions into 2016 to achieve higher gas price realizations Stonewall gathering pipeline placed on line 12/1/2015 connects incremental Marcellus production to…
  49. January 2016 Company Overview Update – Antero Resources – slide 49
    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…
  50. January 2016 Company Overview Update – Antero Resources – slide 50
    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…
  51. January 2016 Company Overview Update – Antero Resources – slide 51
    MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus Well Economics and Total Gross Locations(1) Natural Gas 12/31/2015 strip Oil 12/31/2015 strip 80% 1,200 63% 1,010 1,000 Total 3P Locations NGLs 37% of…
  52. January 2016 Company Overview Update – Antero Resources – slide 52
    UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 12/31/2015 strip 100% 300 83% 80% Oil 12/31/2015 strip 248 71% 250 Total 3P Locations 80% NGLs 37% of Oil Price…
  53. January 2016 Company Overview Update – Antero Resources – slide 53
    LARGEST GAS HEDGE POSITION IN U.S. E&P 3.1 billion mark-to-market unrealized gain based on 12/31/2015 prices 3.5 Tcfe hedged from January 1, 2016 through year-end 2022 COMMODITY HEDGE POSITION 2,500 Hedged Volume Average Index Hedge…
  54. January 2016 Company Overview Update – Antero Resources – slide 54
    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…
  55. January 2016 Company Overview Update – Antero Resources – slide 55
    STRONG FINANCIAL LIQUIDITY AND DEBT TERM STRUCTURE Over 3.9 billion of combined AR and AM financial liquidity as of 9/30/2015 No leverage covenant in AR bank facility, only interest coverage and working capital covenants AR LIQUIDITY…
  56. January 2016 Company Overview Update – Antero Resources – slide 56
    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…
  57. January 2016 Company Overview Update – Antero Resources – slide 57
    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%…
  58. January 2016 Company Overview Update – Antero Resources – slide 58
    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…
  59. January 2016 Company Overview Update – Antero Resources – slide 59
    2015 GLOBAL LPG DEMAND Global LPG demand is 8.5 MMBbl/d and growing 59
  60. January 2016 Company Overview Update – Antero Resources – slide 60
    GLOBAL LPG DEMAND DRIVEN BY PETCHEM AND RES/COMM Largest end-use sectors for LPG are residential/commercial, which tends to grow with population and improvement in living standards in the emerging markets PIRA forecasting 1.0 MMBbl/d…
  61. January 2016 Company Overview Update – Antero Resources – slide 61
    GLOBAL LPG TRADE DRIVEN BY U.S. SHALE The U.S. is the largest single driver of the rapid expansion in LPG trade accounting for over 90% in trade growth MMBbl/d 5.2 4.6 3.9 3.3 2.6 2.0 United States 1.3 0.7 1.…
  62. January 2016 Company Overview Update – Antero Resources – slide 62
    U.S. SHALE NGL EURS SUPPORT LPG TRADE GROWTH U.S. shale play NGL reserves are 50.8 billion barrels (1) Eagle Ford, Marcellus, Utica, Bakken and Permian are the work horses of U.S. shale production growth Marcellus/Utica NGL resource…
  63. January 2016 Company Overview Update – Antero Resources – slide 63
    POSITIVE OUTLOOK FOR LONG-TERM ETHANE MARKETS AS WELL 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…
  64. January 2016 Company Overview Update – Antero Resources – slide 64
    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 0.16/Gal and 0.18/Gal,…
  65. January 2016 Company Overview Update – Antero Resources – slide 65
    ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 9/30/2015 9/30/2015 EBITDAX: Net income (loss) including noncontrolling interest 544.7 1,413.4 Commodity derivative fair value…
  66. January 2016 Company Overview Update – Antero Resources – slide 66
    ANTERO MIDSTREAM EBITDA RECONCILIATION EBITDA Reconciliation Three months ended September 30, 2014 2015 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 34,290 42,648 Add: Interest expense 2,455…
  67. January 2016 Company Overview Update – Antero Resources – slide 67
    CAUTIONARY NOTE Regarding Hydrocarbon Quantities The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserve estimates (collectively, 3P). Antero has provided internally…

From the store

Browse maps, data & reports in the Shale Experts store