Changes Since September 2017 Presentation New AR slide highlighting impact of deleveraging Slide 4 transactions on debt, leverage and hedge position Updated AR slides showing pro forma affect of Slides 3, 5, 25, 45, 46, 52…
Antero Consolidated Profile Market Cap(1)..... 6.8 billion Enterprise Value(1)(2).........11.1 billion LTM EBITDAX... 1.5 billion Corporate Debt Ratings Ba2 / BB Net Debt/LTM EBITDAX(2) 2.7x Net Production (2Q 2017) 2,200 MMcfe/d…
1 Billion Deleveraging Program Completed Antero monetized over 1 billion of non-E&P assets through the sale of 311 million of AM common units and 750 million through hedge restructuring - Reduced pro forma standalone net debt/LTM…
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 3.50 3.52 Hedged Price (/Mcfe) 3.50 1.5 1.0…
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…
Strong Propane Fundamentals Antero is favorably positioned to take advantage of an improving propane market with low inventories, increasing demand and tightening of Mont Belvieu pricing relative to WTI Propane Inventories Are Short…
Rapidly Growing NGL Production Antero is the largest NGL producer in the Northeast Antero NGL Production Growth by Purity Product (Bbl/d) Total Ethane (C2) (Bbl/d) C3+ Production 160,000 Propane (C3) Normal Butane (nC4) 140,000…
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)…
Powerful Liquids-Pricing Upside Exposure Assuming a flat 50 oil price, 60% of WTI NGL realizations and 82,000 Bbl/d C3+ volumes, Antero is forecasted to realize over 200 million of incremental unhedged EBITDAX in 2018 Incremental…
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 10 NE 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 44% 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 Antero has been a pioneer in drilling long laterals in Appalachia Antero Lateral Lengths To Date of Avg. Lateral Wells Length 200 185 174 171 Total Drilling 180 894 8,250 8 31…
Well Performance Optimizing Well Recoveries With Higher Intensity Completions ARs production from advanced completions is outperforming the 2.0 Bcf/1,000 wellhead type curve 2,500 lb/ft completions are 20% above type curve (First 184…
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…
Balance Sheet Strong Balance Sheet and High Flexibility Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) Pro Forma 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…
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 opportunity set Upstream…
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…
Midstream Driving Value for AR Since Inception Midstream integration has provided tremendous value to AR shareholders and the go-forward upside is very attractive Antero Midstream Return on Investment (Pre-tax)(2) 7,000 3,087 6,057…
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…
APPENDIX 36 36
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: 10.1 Bn 100% Incentive…
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…
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 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 1,211 Total 3P Locations 160% 145% Oil 6/30/2017 strip 1,200 140%…
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 E&P Gas Hedge Position in U.S. Pro forma 1.3 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 3.37 per MMBtu Pro Forma Commodity Hedge…
Liquidity & Debt Term Structure - Approximately 4.7 billion of combined AR and AM financial liquidity as of 6/30/2017 pro forma for transactions - No leverage covenant in AR bank facility, only interest coverage and working capital…
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 Ethane EBITDAX 300 281 0.50/gal 248 250 Ethane 214 212…
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…
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…
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 Pro Forma ( in millions) 6/30/2017 6/30/2017(4) Cash 40 171 AR Senior Secured Revolving Credit Facility( 930 - AM Bank Credit Facility 305 305 5.375% Senior Notes Due 2021 1,000 1,000 5.125%…
Antero Resources Standalone EBITDAX Reconciliation AR Standalone EBITDAX Reconciliation ( in millions) Six Months Ended LTM Ended 06/30/2017 06/30/2017 EBITDAX: Operating income 548.3 315.2 Commodity derivative fair value (gains)…
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 (85.6)…
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…
2Q 2017 Segment EBITDAX and Capital Expenditures 1 Gathering and compression fees paid to Antero Midstream are included in Gathering, Processing & Transportation expense on stand-alone basis (eliminated on consolidated basis); Gathering…
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…
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