Credit Suisse 21st Annual Energy Summit February 2016
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…
2016 CAPITAL BUDGET DRIVES MOMENTUM Anteros 2016 initial capital budget is 1.4 billion, a 23% decrease from 2015 capital expenditures of 1.8 billion and a 58% decline from 2014 capital expenditures 1.8 Billion 2015(1) 1.4 Billion…
ANTERO CREDIT QUALITY AFFIRMED AT Ba2/BB Amidst the sector wide re-rating of the Energy Sector, Antero recently received affirmed ratings of Ba2 / BB from Moodys and S&P Of the 21 public US Baa/Ba E&P issuers reviewed by Moodys and…
LEADING UNCONVENTIONAL BUSINESS MODEL Largest Core Liquids- Growing Through the Rich Position in Down Cycle Appalachia 2 3 Growth Liquids-Rich Most Active Operator Sustainable Business in Appalachia 1 4 Well Model Drilling…
DRILLING MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL 12/31/15 RESERVES Assumes Ethane Rejection Net Proved Reserves 13.2 Tcfe Net 3P Reserves 37.1 Tcfe Strip Pre-Tax 3P PV-10(1) 11.2 Bn Net 3P Reserves & Resource 50 to 53…
GROWTH GROWING THROUGH THE DOWN CYCLE Antero is in the unique position of being able to sustain growth and value creation through the price down cycle AVERAGE NET DAILY PRODUCTION (MMcfe/d) AVERAGE NET DAILY LIQUIDS PRODUCTION (Bbl/d)…
LIQUIDS-RICH LARGEST CORE POSITION Antero has over 2,700 undeveloped rich gas locations with an average lateral length of 7,580 in its 3P reserves as of 12/31/2015 Antero controls an estimated 37% of the NGLs in the liquids-rich…
WELL ECONOMICS SUSTAINABLE BUSINESS MODEL 12/31/15 NYMEX Strip Pricing - Before Hedges At 12/31/2015 strip pricing, Antero has 2,227 locations with well economics that exceed 20% rate of 12/31/15 Strip Pricing - After Hedges return…
WELL ECONOMICS HEDGING UNDEVELOPED PRODUCTION Antero has hedged a significant portion of its forecasted undeveloped production stream from wells yet to be drilled at prices well above current strip pricing, including virtually all of…
MIDSTREAM MLP (NYSE: AM) HIGHLIGHTS SUBSTANTIAL VALUE IN MIDSTREAM BUSINESS Corporate Structure Overview(1) Antero Resources Corporation (NYSE: AR) Public 11.4 Billion Enterprise Value(1) Ba2/BB Corporate Rating 33% LP Interest…
TAKEAWAY LARGEST FT 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 0.40/MMBtu and…
TAKEAWAY FIRM TRANSPORTATION AND SALES PORTFOLIO While Antero has excess FT in place through 2017, the expected cost of unutilized FT is estimated to be manageable…
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…
HEDGING HIGHEST PROPORTION HEDGED AMONG E&P OPERATORS Antero has substantially de-risked its cash flow profile and differentiated itself versus its peer group through its extensive hedge portfolio, with 100% of forecasted production…
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…
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) Average…
REALIZATIONS FAVORABLE PRICE INDICES Anteros exposure to favorable gas price indices like Chicago, Gulf Coast, NYMEX and TCO is expected to increase to 99% in 2016 Improved 2016 realizations driven by Stonewall gathering pipeline which…
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 C3+ NGL pricing of 37% of WTI based on 80.00 12/31/15 strip pricing 60.00…
ANTEROS FIRST WEST VIRGINIA 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…
LEADERSHIP IN APPALACHIAN BASIN Antero has the largest proved reserve base, largest core liquids-rich acreage position and is one of the largest producers in the Appalachian Basin Appalachian Producers by Proved Reserves (Bcfe) YE…
Antero Midstream (NYSE: AM) Asset Overview 22
ANTERO MIDSTREAM GATHERING AND COMPRESSION ASSET OVERVIEW Gathering and Compression Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 438,000 net…
ANTERO MIDSTREAM WATER BUSINESS OVERVIEW 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…
ANTERO MIDSTREAM ADVANCED WASTEWATER TREATMENT ASSET OVERVIEW Antero has contracted with Veolia to integrate an advanced wastewater treatment complex into its water business Advanced Wastewater Treatment Illustrative Produced &…
KEY CATALYSTS FOR ANTERO 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…
APPENDIX 28
ANTERO RESOURCES 2016 GUIDANCE Key Operating & Financial Assumptions Key Variable 2016 Guidance Net Daily Production (MMcfe/d) 1,715 Net Residue Natural Gas Production (MMcf/d) 1,355 Net C3+ NGL Production (Bbl/d) 46,500 Net…
ANTERO FT PORTFOLIO APPROPRIATELY DESIGNED TO ACCOMMODATE GROWTH 2016 Firm Transport (BBtu/d) Antero projects firm transportation in excess of 4,000 Total Firm Transport equity gas production of approximately 1,640 BBtu/d 3,525…
FT PORTFOLIO UPDATE Illustrative Marketing Example: No Spread 2016 Projected Marketing Expenses: Unmarketable (EQT / M3) (/MMBtu) ( in millions, except per unit amounts) Demand 2016E 2016E 2016E 2016 TETCO M2 Pricing (Sold Gas) 1.56…
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…
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% 971 1,000 Total 3P Locations NGLs 37% of Oil…
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 71% 250 Total 3P Locations 80% NGLs 37% of Oil Price…
OUTSTANDING RESERVE GROWTH NET PROVED RESERVES (Tcfe)(1) 2015 RESERVE ADDITIONS Proved reserves increased 4% to 13.2 Tcfe at 12/31/2015 with a pre-tax (Tcfe) Marcellus Utica PV-10 of 6.7 billion at SEC pricing, including 3.1 billion…
CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 27 year proved reserve life based on 2015 production annualized Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 2.4 BBbl of NGLs and condensate…
POSITIVE RATINGS MOMENTUM Anteros corporate credit ratings were recently affirmed at Ba2/BB by Moodys and S&P, respectively, despite the severe commodity price down cycle Moodys / S&P Historical Corporate Credit Ratings Moodys Rating…
NGL EXPORTS AND NETBACKS STEP-UP BY 2017 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,…
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…
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…
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…
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…
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