Third Quarter 2016 Earnings Call Presentation October 27, 2016
ANTERO FIRM TRANSPORT ELIMINATES NORTHEAST BASIS RISK Antero Expected Pricing: 2016-2020 (/MMBtu) Forecasted Realized Natural Gas Price (1) Nymex 0.10 - Average FT Expense (operating expense) (0.46) - Average Net Marketing Expense…
SIGNIFICANT LIQUIDS PRICING EXPOSURE Anteros NGL production provides significant upside exposure to a continued rally in oil prices Represents Anteros projected Base Case 125% EBITDA through 2020 123% 117% 112% 106% 100% 100%…
LARGEST CORE INVENTORY IN APPALACHIA Antero has the largest core acreage position in Appalachia and is the most active producer, operating 11% of all rigs running and 42% of rigs running in liquids rich core areas 600 587 Core Net…
IMPROVING MARCELLUS WELL ECONOMICS 36% lower well cost per 1,000 lateral and 33% higher EUR per 1,000 since 2014 are driving rates of return significantly higher despite lower strip pricing 2016/2017 Development Plan: Completions…
HIGHEST EBITDAX & MARGINS AMONG PEERS Antero has extended its lead among Appalachian Basin peers in both EBITDAX and EBITDAX margin Quarterly Appalachian Peer Group EBITDAX (MM)(1) Among Appalachian peers, AR has ranked in the top 2…
STRONG BALANCE SHEET AND LIQUIDITY Antero has reduced leverage in 2016 while continuing to grow production and add attractive undeveloped acreage Consolidated Liquidity (MM) Consolidated Leverage (MM) 9/30/16 9/30/16 Liquidity…
PROVEN TRACK RECORD OF WELL COST REDUCTIONS Marcellus Well Cost Reductions for a 9,000 Lateral (MM)(1) 14 COMPLETION COST DRILLING COST 12.3 12 11.1 10.8 36% Reduction in 0.86 / 1,000 10.2 10.2 Marcellus well costs 10 since Q4 2014…
OPTIMIZING WELL RECOVERIES WITH ADVANCED COMPLETIONS Driving value by drilling more productive wells in the Marcellus Marcellus Cumulative Gas Production Curves (Normalized to 9,000 Lateral) Vintage 2013 2014 2015 2016E Change Stage…
LONGER LATERALS IMPROVE WELL ECONOMICS Antero has been a leader in drilling longer laterals in Appalachia due to its consolidated acreage position and horizontal drilling experience Antero Marcellus Highly-Rich Gas/Condensate (1275…
CAPITAL EFFICIENCY DRIVING VALUE TO SHAREHOLDERS Driven by the continued well cost reductions and improved recoveries, Antero is now expecting to grow 2017 production approximately 150 MMcfe/d higher than original guidance while…
LEADING CONSOLIDATOR IN APPALACHIA Antero continues to consolidate acreage in the core and expand its footprint in Appalachia as a pure-play operator Dec 2008 Dec 2011 Dec 2014 2016 Pro Forma December 2008 December 2011(1)…
APPENDIX 13
ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 9/30/2016 9/30/2016 EBITDAX: Net income including noncontrolling interest 268.2 (121.1) Commodity derivative fair value (gains)…
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