ANTERO PROFILE Market Cap(1)..... 6.8 billion Enterprise Value(1)......... 12.1 billion LTM EBITDAX... 1.5 billion Corporate Debt Ratings Ba2 / BB Net Production (2Q 2017) 2,200 MMcfe/d % Liquids......................... 28% 3P…
OUTSTANDING 6/30/2017 RESERVE GROWTH NET PROVED RESERVES (Tcfe)(1) 6/30/2017 RESERVE ADDITIONS Proved reserves increased 7% to 16.5 Tcfe (Tcfe) Marcellus Utica Proved pre-tax PV-10 at SEC pricing of 9.3 billion, including 15.4 16.5…
ANTERO RESOURCES INCREASED 2017 GUIDANCE Key Operating & Financial Assumptions Updated Previous Key Variable 2017 Guidance(1) 2017 Guidance(1) Net Daily Production (MMcfe/d) 2,250 2,300 2,160 2,250 Net Residue Natural Gas…
A LEADING CONSOLIDATOR IN APPALACHIA Activity Acquisitions and Antero Footprint Antero has grown its acreage position by over 200,000 net acres since its IPO in October 2013 Since the beginning of 2016, Antero has acquired over…
NGL INFRASTRUCTURE BUILDOUT IN THE NORTHEAST The Northeast NGL Mariner West (50 Mbbl/d C2) infrastructure buildout potentially presents additional 61,500 MBbl/d investment opportunities Mariner East 2 Utopia (50 Mbbl/d C2) (1Q…
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 69,500 Bbl/d C3+ volumes, Antero should realize 353 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 2.3 Hedged Volume (Bcfe) 2.0 1.8 3.70 3.52 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 12 Marcellus Rigs Largest Core Acreage Position in Appalachia…
DRILLING INVENTORY LARGEST CORE DRILLING INVENTORY IN SOUTHWEST APPALACHIA Large, repeatable core drilling inventory that averages over 7,800 in lateral length and includes 41% of all liquids-rich undrilled locations in Appalachia…
DRILLING INVENTORY LOW BREAKEVEN PRICES Antero has a 16-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 700 horizontal locations in the Marcellus and Ohio Utica by the end of the decade while utilizing less than 18% 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…
WELL PERFORMANCE OPTIMIZING WELL RECOVERIES WITH HIGHER INTENSITY COMPLETIONS ARs Production from 1,500 to 2,500 lb/ft completions is outperforming the 2.0 Bcf/1,000 wellhead type curve 2,500 lb/ft completions are 20% above type curve…
WELL PERFORMANCE IMPROVING MARCELLUS RETURNS Integrated platform yields attractive well economics and sustainable growth Highly-Rich Gas/Condensate (6/30/17 Pricing) (1) Highly-Rich Gas (6/30/17 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) 3.10 2.90 Basis Differential to NYMEX(1) (0.24) (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 Antero plans to grow its production 20% to 22% through 2020 while essentially spending within cash flow 2018 Consensus Wall Street Research Estimates 2,000 1,708…
SIGNIFICANT CASH FLOW GROWTH SIGNIFICANT CASH FLOW GROWTH DRIVES DECLINING LEVERAGE PROFILE Visible upstream cash flow growth and a declining leverage profile is currently valued at less than 5x 2018 and 2019 EBITDAX (1)(2) (1) AR…
BALANCE SHEET STRONG BALANCE SHEET AND HIGH FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 6/30/2017 Debt(1) Liquid Non-E&P Assets 6/30/2017 Debt (1) Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type…
VALUE IN MIDSTREAM OWNERSHIP Cash flows to AR from AM Distribution Growth 350 Value of 300 AM AM units Value price held by AR per AR per unit (Billion) (1) share 250 29 2.5 8 200 32 2.7 9 MM 35 2.9 9 150 38 3.1 10…
VALUE CHAIN OPPORTUNITY MIDSTREAM VALUE CHAIN BUILDOUT 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…
Processing and Fractionation JV Momentum 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…
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 562,000 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 (6/30/2017) 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 1,213 million at…
2017 2020 OUTLOOK Significant natural gas demand growth through 2020 Macro Continued oil and NGL price recovery 25% to 28% revised production growth guidance for 2017 20% to 22% production growth CAGR targets for 2018 2020…
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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: 11.2 Bn 100% Incentive…
3P RESERVES & RESOURCE AR COMBINED TOTAL 6/30/17 RESERVES MARCELLUS SHALE Assumes Ethane Rejection Net Proved Reserves 16.5 Tcfe Net Proved Reserves 14.6 Tcfe Net 3P Reserves(1) 45.7 Tcfe Net 3P Reserves(1) 53.0 Tcfe Strip…
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 3.5 BBbl of NGLs and condensate…
WELL COST REDUCTIONS Marcellus Well Cost Reductions for a 9,000 Lateral (MM)(1) COMPLETION COST DRILLING COST 14.0 12.3 37% Reduction in 12.0 11.1 10.8 0.86 / 1,000 Marcellus well costs 10.2 10.2 since Q4 2014 10.0 8.5 8.1 7.8…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus Well Economics and Total Gross Locations(1) Natural Gas 6/30/2017 strip 180% 1,400 1,184 Total 3P Locations 160% 145% 1,200 Oil 6/30/2017 strip 140%…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) 80% 300 Natural Gas 6/30/2017 strip 255 Total 3P Locations 222 58% 250 Oil 6/30/2017 strip 60% 51% 128 47% 200 NGLs 53%…
LARGEST GAS HEDGE POSITION IN U.S. E&P 2.0 billion mark-to-market unrealized gain based on 6/30/2017 prices with 3.1 Tcfe hedged from July 1, 2017 through year-end 2023 at 3.62 per MMBtu Commodity Hedge Position BBtu/d Hedged Volume…
LIQUIDITY & DEBT TERM STRUCTURE - Approximately 3.6 billion of combined AR and AM financial liquidity as of 6/30/2017 - No leverage covenant in AR bank facility, only interest coverage and working capital covenants AR LIQUIDITY…
ANTERO HAS SIGNIFICANT EXPOSURE TO UPSIDE IN ETHANE (C2) PRICES Incremental EBITDAX Attributable to Ethane Recovery(1) 450 414 0.60/gal Ethane 400 347 350 ATEX FT 281 Ethane EBITDAX 300 0.50/gal 248 250 Ethane 214…
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…
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) 6/30/2017 Cash 40 AR Senior Secured Revolving Credit Facility 930 AM Bank Credit Facility 305 5.375% Senior Notes Due 2021 1,000 5.125% Senior Notes Due 2022 1,100 5.625% Senior…
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…
SUPPORT DATA ( in MM, unless otherwise noted) AR Standalone Enterprise Value Wall Street Consensus Pricing & EBITDAX AR Market Capitalization 6,817 2017 2018 2019 AR Net Debt (06/30/17) 4,357 Nymex Natural Gas (/MMBtu) 3.10 2.99…
ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 6/30/2017 6/30/2017 EBITDAX: Net income including noncontrolling interest 40.0 160.9 Commodity derivative fair value gains…
ANTERO MIDSTREAM EBITDA RECONCILIATION EBITDA and DCF Reconciliation Three months ended in thousands June 30, 2016 2017 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 49,912 87,175 Interest…
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