CHANGES SINCE MAY 2017 PRESENTATION Updated AR slide showing new data for AR Marcellus Slide 21 completions New slide showing Antero complex and ownership Slide 42 profile 2
ANTERO PROFILE Market Cap(1)..... 7.2 billion Enterprise Value(1)......... 12.0 billion LTM EBITDAX... 1.5 billion Corporate Debt Ratings Ba2 / BB Net Debt/LTM EBITDAX.. 3.1x Net Production (1Q 2017) 2,144 MMcfe/d %…
DELIVERING ON OCTOBER 2013 IPO PROMISE At IPO (October 2013) Current Change 431,000 Net Acres 634,000 Net Acres (5) Acreage: +47% Leading consolidator since AR IPO adding 203,000 net acres Net Production (1): 458 MMcfe/d…
OUTSTANDING 2016 RESERVE GROWTH NET PROVED RESERVES (Tcfe)(1) 2016 RESERVE ADDITIONS Proved reserves increased 16% to 15.4 Tcfe (Tcfe) Marcellus Utica Proved pre-tax PV-10 at SEC pricing of 6.7 billion, including 15.4 3.0 billion…
NGL INFRASTRUCTURE BUILDOUT IN THE NORTHEAST Over 4 Billion of downstream NGL infrastructure projects currently under construction or proposed for the Northeast adjacent to Anteros position The Northeast NGL Mariner West (50 Mbbl/d…
RAPIDLY GROWING NGL PRODUCTION Antero is the largest NGL producer in the Northeast NGL Production Growth by Purity Product (Bbl/d) (Bbl/d) Ethane (C2) 160,000 C3+ Production Propane (C3) 140,000 Normal Butane (nC4) IsoButane…
AND RISING LIQUIDS PRICE ENVIRONMENT An increase in Mont Belvieu pricing combined with an improvement in local differentials has resulted in meaningful upside to Anteros realized C3+ NGL pricing Historical Guidance / Targets (/Bbl)…
PROVIDES POWERFUL LIQUIDS PRICING UPSIDE EXPOSURE Assuming 55 oil, 52.5% of WTI NGL realizations and 67,500 Bbl/d C3+ volumes, Antero should realize 332 million of incremental unhedged EBITDAX in 2017 (vs. 2016) Incremental…
2017 GUIDANCE AND LONG TERM OUTLOOK (Bcfe/d) Production Growth: 4.0 3.9 3.5 3.2 Net Daily Production 3.0 Guidance 2.7 Long-Term Targets 2.5 2.2 Hedged Volume (Bcfe) 2.0 1.8 3.70 3.47 Hedged Price (/Mcfe) 3.91 1.5 1.0…
KEY DRIVERS BEHIND LONG TERM OUTLOOK Deep Drilling Inventory Drilling Inventory Improving Capital Efficiencies Capital Efficiency Strong Well Performance Well Performance Visible, Attractive Price Realizations Price…
DRILLING INVENTORY LARGEST CORE ACREAGE POSITION IN APPALACHIA Antero has the largest core acreage position in Appalachia and the largest liquids-rich position 13 Marcellus Rigs Largest Core Acreage Position in Appalachia…
DRILLING INVENTORY LARGEST CORE DRILLING INVENTORY IN SOUTHWEST APPALACHIA Large, repeatable core drilling inventory that averages 8,000 in lateral length and includes 43% of all liquids-rich undrilled locations in Appalachia…
DRILLING INVENTORY LOW BREAKEVEN PRICES Antero has a 15-year drilling inventory that generates a 20% rate of return at 3.00/MMbtu NYMEX or less, assuming the 2017 development pace (170 completions) Cumulative 3P Drilling Inventory…
DRILLING INVENTORY MULTI-YEAR GROWTH ENGINE Antero plans to develop over 800 horizontal locations in the Marcellus and Ohio Utica by the end of the decade while utilizing less than 25% of its current 3P drilling inventory Planned…
CAPITAL EFFICIENCY CONTINUOUS OPERATING IMPROVEMENT Driving drilling and completion efficiencies which continues to lower well costs Dramatic Decrease in Drilling Days Increasing Completion Stages per Day More efficient completions…
CAPITAL EFFICIENCY DRAMATICALLY LOWER F&D COST Enhanced completion designs have contributed to improved recoveries and capital efficiency Increasing Proppant Per Foot Increasing Water Per Foot Higher proppant concentration has 70…
CAPITAL EFFICIENCY LONGER LATERALS IMPROVE ROR Anteros typical Marcellus well in 2017 will have a 9,200 lateral length, an EUR of 22.3 Bcfe, including 857 MBbls of NGLS and 66 MBbls of oil and cost 7.7 MM(1) Antero 2016 average…
CAPITAL EFFICIENCY MITIGATING SERVICE COST EXPOSURE Antero has limited its exposure to service cost increases over the next few years through long-term agreements with drilling contractors and completion services Drilling Rigs (1)…
WELL PERFORMANCE OPTIMIZING WELL RECOVERIES WITH HIGHER INTENSITY COMPLETIONS Antero plans to continue to increase proppant intensity in 2017 primarily utilizing 1,750 and 2,000 lb/ft completions in the Marcellus 3,000 5,000 1,500…
WELL PERFORMANCE RECENT MARCELLUS WELL RESULTS Wellhead EURs from Anteros recent 1,750 pound per foot completions have continued to outperform ranging from 2.0 to 2.4 Bcf/1,000 at the wellhead Recent results of 2.2 Bcf/1,000 EUR…
WELL PERFORMANCE IMPROVING MARCELLUS RETURNS Integrated platform yields attractive well economics and sustainable growth Highly-Rich Gas/Condensate (3/31/17 Pricing) (1) Highly-Rich Gas (3/31/17 Pricing) (1) Pre-Tax PV-10 Pre-Tax…
PRICE REALIZATIONS LARGEST FT PORTFOLIO IN NORTHEAST Antero transportation commitments yield NYMEX-plus pricing for natural gas and are expected to yield Mont Belvieu-plus pricing for NGLs Antero Long Term Firm Processing & Takeaway…
PRICE REALIZATIONS ANTERO FIRM TRANSPORT MITIGATES NORTHEAST BASIS RISK Antero Expected Pricing: 2017-2020 (/MMBtu) Forecasted Realized Natural Gas Price (1) Nymex + 0.10 - Average FT Expense (operating expense) (0.46) - Average…
PRICE REALIZATIONS FAVORABLE PRICE INDICES Antero expects to realize a premium to NYMEX gas prices before hedges through 2020 (/Mcf) 2018-2020 2017E Target (1) 3.32 2.90 Basis Differential to NYMEX(1) (0.26) (0.15) - (0.20) BTU…
PRICE REALIZATIONS LIQUIDS PRICING UPGRADE IN THE MARCELLUS Antero realizes a significant upgrade to NYMEX gas prices by producing liquids-rich gas and condensate /Wellhead Mcf(1) +1.48 (/Mcf) +1.21 Upgrade +0.94 Upgrade 5.00…
SIGNIFICANT CASH FLOW GROWTH CAPITAL EFFICIENCY DRIVES CASH FLOW GROWTH Anteros capital efficiency has reduced outspend while maintaining its growth profile and is expected to continue delivering Cash Flow from Operations that exceeds…
SIGNIFICANT CASH FLOW GROWTH SIGNIFICANT CASH FLOW GROWTH DRIVES DECLINING LEVERAGE PROFILE Visible cash flow growth given hedges, firm transportation portfolio, and capital efficient long-term development plan targeting 20% to 22%…
BALANCE SHEET STRONG BALANCE SHEET AND HIGH FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 3/31/2017 Debt(1) Liquid Non-E&P Assets 3/31/2017 Debt (1) Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type MM…
Antero Midstream (NYSE: AM) Asset Overview 30
MLP (NYSE: AM) HIGHLIGHTS SUBSTANTIAL VALUE IN MIDSTREAM BUSINESS Corporate Structure Overview Antero Resources Corporation (NYSE: AR) 68% Public 11.2 Billion Enterprise Value(1) Interest Public Ba2/BB Corporate Rating 41% LP…
ANTERO MIDSTREAM ASSET OVERVIEW An integrated system for natural gas and NGL production, gathering and processing Midstream Infrastructure (In Service) Gathering Pipelines (Miles) 307 Compression Capacity (MMcf/d) 1,135…
CAPTURING MIDSTREAM VALUE CHAIN Participating in the full value chain diversifies and sustains Anteros integrated business model 5.0 billion organic project backlog and 1.0 billion downstream investment opportunity set Upstream…
PROCESSING AND FRACTIONATION JV Antero Midstream (NYSE: AM) and MPLX (NYSE: MPLX) formed a joint venture for processing and fractionation infrastructure in the core of the liquids-rich Marcellus and Utica Shales in February 2017…
ANTERO MIDSTREAM GATHERING AND COMPRESSION ASSET OVERVIEW Gathering and Compression Assets Gathering and compression assets in core of rapidly growing Marcellus and Utica Shale plays Acreage dedication of 542,000 gross leasehold…
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…
SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (3/31/2017) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5.0x Debt/EBITDA Cap) Revolver Capacity 1,500 Liquidity of 1,300 million at…
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…
2017 2020 OUTLOOK Significant natural gas demand growth through 2020 Macro Continued oil and NGL price recovery 20% to 25% production growth guidance for 2017 20% to 22% production growth CAGR targets for 2018 2020 Forecast a…
APPENDIX 41 41
ANTERO SIMPLIFIED ORGANIZATIONAL STRUCTURE The combined enterprise value of the Antero complex is over 18 billion Affiliates Public Affiliates Public 32% 68% 80% 20% (NYSE: AR) Enterprise Value: 10.5 Bn 100% Incentive…
ANTERO RESOURCES UPDATED 2017 GUIDANCE Key Operating & Financial Assumptions Updated Previous Key Variable 2017 Guidance(1) 2017 Guidance Net Daily Production (MMcfe/d) 2,160 2,250 2,160 2,250 Net Residue Natural Gas Production…
3P RESERVES & RESOURCE AR COMBINED TOTAL 12/31/16 RESERVES OHIO UTICA SHALE MARCELLUS SHALE Assumes Ethane Rejection Net Proved Reserves 2.0 Tcfe Net Proved Reserves 13.4 Tcfe Net Proved Reserves 15.4 Tcfe Net 3P Reserves 6.8 Tcfe Net…
CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 23 year proved reserve life based on 2016 production annualized Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 3.1 BBbl of NGLs and condensate…
WELL COST REDUCTIONS Marcellus Well Cost Reductions for a 9,000 Lateral (MM)(1) 14.0 12.3 COMPLETION COST DRILLING COST 12.0 11.1 10.8 37% Reduction in 10.2 10.2 0.87 / 1,000 Marcellus well costs 10.0 since Q4 2014 8.5 8.1 7.8…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus Well Economics and Total Gross Locations(1) Natural Gas 3/31/2017 strip 120% 1,400 1,184 Total 3P Locations Oil 3/31/2017 strip 100% 94% 1,200 NGLs 53% of…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) 80% 300 Natural Gas 3/31/2017 strip 253 Total 3P Locations 54% 250 Oil 3/31/2017 strip 60% 178 47% 105 200 NGLs 53% of…
LARGEST GAS HEDGE POSITION IN U.S. E&P 2.0 billion mark-to-market unrealized gain based on 3/31/2017 prices with 3.3 Tcfe hedged from January 1, 2017 through year-end 2023 at 3.61 per MMBtu Commodity Hedge Position BBtu/d Hedged…
LIQUIDITY & DEBT TERM STRUCTURE - Approximately 4.1 billion of combined AR and AM financial liquidity as of 3/31/2017 - No leverage covenant in AR bank facility, only interest coverage and working capital covenants AR LIQUIDITY POSITION…
ANTERO HAS SIGNIFICANT EXPOSURE TO UPSIDE IN ETHANE (C2) PRICES BENTEK FORECASTS ETHANE PRICES TO INCREASE TO MORE THAN 0.50 / GALLON BY 2018 AND BEYOND Incremental EBITDAX Attributable to Ethane Recovery(1) 450 414 0.60/gal 400…
INCREMENTAL ANTERO TAKEAWAY CAPACITY Approximately 65% of Anteros expected firm transportation capacity is in service today Antero Capacity on Northeast Takeaway Projects 6.0 5.0 700 MMcf/d 4.8 Bcf/d 200 MMcf/d 4.0 800 MMcf/d…
KEY APPALACHIAN NATURAL GAS TAKEAWAY PROJECTS Growth in natural gas infrastructure by the end of 2019, resulting in 16.8 Bcf/d of incremental capacity, will support expected supply growth 4.8 Bcf/d 1.8 Bcf/d Transco Atlantic…
POSITIVE RATINGS MOMENTUM Anteros stable credit metrics through the commodity price crisis and improving leverage profile ensured its rating remained unchanged despite the downgrades experienced by many of its peers Moodys / S&P…
ANTERO CAPITALIZATION CONSOLIDATED ( in millions) 3/31/2017 Cash - AR Senior Secured Revolving Credit Facility 520 AM Bank Credit Facility 200 5.375% Senior Notes Due 2021 1,000 5.125% Senior Notes Due 2022 1,100 5.625% Senior…
ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 3/31/2017 3/31/2017 EBITDAX: Net income (loss) including noncontrolling interest 305.6 (454.5) Commodity derivative fair value…
ANTERO MIDSTREAM EBITDA RECONCILIATION EBITDA and DCF Reconciliation Three months ended in thousands March 31, 2016 2017 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 42,918 75,091 Interest…
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