Antero Profile Market Cap(1)..... 6.3 billion Enterprise Value(2)......... 9.7 billion Corporate Debt Ratings Ba2 / BB Stand-alone Leverage(3) 2.6x Net Production (3Q 2017) 2,317 MMcfe/d Liquids(4)..................... 112,000…
Anteros Core Business Strategy 1 Develop World Class Resource Over the Long Term Run by co-founders and management with significant ownership Forward thinking with industry leading hedge and firm transportation portfolio designed to…
Largest Core Drilling Inventory in Appalachia- Liquids Focused Based on thorough technical analysis of competitor acreage configurations, well results and geology, Antero has the largest core drilling inventory (see core outlines) in…
Antero Investment Highlights 1 Market Leading Exposure to NGL Prices and Production Growth 2 Maximizing Financial Returns with Enhanced Completions and Long Laterals 3 Capital Efficiencies and Cash Flow Growth Result in…
1 Largest NGL Producer in the U.S. Antero is the largest NGL producer in the U.S and has the most NGL exposure at 34% of total upstream company revenues Top U.S. NGL Producers (MBbl/d) 3Q 2017 115.0 45% Largest NGL producer in the…
1 Strong Propane Fundamentals Antero is well positioned to capitalize on an improving propane market with low inventories, increasing demand and tightening of Mont Belvieu pricing relative to WTI Historically Isolated U.S. Markets…
1 And Healthy Global Demand Propane and butane increasingly becoming a globally priced product as U.S. domestic supply has the ability to reach primary demand growth centers in Asia Global Propane and Butane Outlook Growing Propane…
1 Rapidly Growing NGL Production Antero has market-leading exposure to NGL volume growth Antero NGL Production Growth by Purity Product (Bbl/d) Total Ethane (C2) (Bbl/d) C3+ Production 175,000 Propane (C3) Normal Butane (nC4)…
Improving Propane Prices Drive Increase in 1 C3+ NGL Netbacks Despite a flat oil price environment, Anteros pre-hedged realized C3+ NGL price has increased 70% since 2015 and is expected to improve further Antero C3+ NGL Realized…
1 Powerful C3+ NGL Pricing Upside Exposure Antero expects significant cash flow growth in 2018 from the improvement in NGL pricing with attractive upside to further increases in liquids pricing Significant Improvement in Cash Flow…
2 Higher Intensity Completions Increasing EURs ARs production from advanced completions is outperforming the 2.0 Bcf/1,000 wellhead type curve 2,500 lb/ft completions are 17% above type curve (First 243 days) AR Type Curve…
2 Strong Marcellus Half-Cycle Returns Integrated platform yields attractive well economics and sustainable growth Highly-Rich Gas: 3.00 Gas / 54 Oil(1) Highly-Rich Gas/Condensate: 3.00 Gas / 54 Oil(1) Pre-Tax PV-10 Pre-Tax ROR…
2 Longer Laterals Materially Improve Economics Antero has been a leader in drilling long laterals in Appalachia Avg. Antero Lateral Lengths To Date of Lateral 350 Antero Wells Length 294 Future completion Total Drilling programs…
2 Antero Holds the Largest Long Lateral Inventory Antero holds over 30% of the core drilling inventory(2) in Appalachia for lateral lengths greater than 10,000 feet and has been a consistent leader in drilling long laterals in…
3 1 Billion Delevering 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 stand-alone net debt/LTM EBITDAX to…
3 Improving Capital Efficiencies Improving EURs, longer laterals and reduced cycle times results in 200 fewer well completions saving approximately 1.5 billion through 2020 while still delivering essentially the same production…
3 Capital Efficiency Drives Elimination of Outspend Capital efficiencies have significantly reduced E&P outspend and are expected to result in drilling and completion (D&C) capex within E&P free cash flow by 2019 D&C Capex vs.…
3 Attractive Long Term Outlook Antero is now well positioned to generate free cash flow and peer leading growth Antero Resources Stand-alone E&P Long-Term Targets(1) Stand-alone E&P Leverage Net Production (Actual) 4.5x Net…
3 More Conservative Financial Policy New 4.5 Billion Credit Facility with 2.5 Billion in Lender Commitments - Downsized lender commitments by 1.5 billion due to reduced need for bank capital - Supported by 4.5 billion borrowing base -…
4 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 for AR (Pre-tax)(2) 7,000…
Antero Midstream Asset Overview Midstream Infrastructure (In Service) Sherwood Processing Gathering Pipelines (Miles) 341 Complex Compressor Station Compression Capacity (MMcf/d) 1,600 Antero Clearwater Condensate Pipelines…
4 Capturing the 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 potential downstream investment opportunity set…
Key Drivers Behind Long Term Outlook Market Leading Exposure to NGLs NGL Exposure Largest Core Liquids-Rich Drilling Inventory Drilling Inventory Improving Capital Efficiencies with Long Laterals and Higher Capital Efficiency…
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Simplified Organizational Structure The combined enterprise value of the Antero complex is over 20 billion Affiliates Public Affiliates Public 32% 68% 80% 20% (NYSE: AR) Enterprise Value: 9.7 Bn 100% Incentive (NYSE:…
Antero Resources Q417 and 2017 Guidance Key Operating & Financial Assumptions Updated Previous Q4 Key Variable 2017 Guidance(1) 2017 Guidance(1) 2017 Guidance Net Daily Production (MMcfe/d) 2,250 2,300 Net Residue Natural Gas…
Antero NGL Barrel (September Pricing) Antero realized 33.23/Bbl for its C3+ NGL barrels in September 2017 67% of WTI oil price Including 21% ethane recovery, Antero realized 26.54 per barrel for its NGL barrels Antero is currently…
Ethane Fundamentals and Improving Pricing Ethane Outlook Historical Ethane Prices (/Gallon) Significant domestic demand growth for ethane driven 0.90 by construction and expansion of world-class steam 0.80 Ethane price collapse driven…
Most Attractive Firm Transport Portfolio in Appalachia Anteros natural gas takeaway position results in price certainty at attractive all-in netbacks to Nymex: Nymex less 0.42/Mcf expected 2017-2020, after deducting FT costs Antero…
Largest E&P Gas Hedge Position in U.S. Pro forma 1.2 billion mark-to-market unrealized gain based on 9/30/2017 prices with 2.9 Tcfe hedged from October 1, 2017 through year-end 2023 at 3.36 per MMBtu Pro Forma Commodity Hedge…
Single Well Economics: Half Cycle Cost Assumptions(1) SWE Cost Type Description of Cost Marcellus Utica Drilling and completion costs Reflects average well costs across most 8.4 mm 9.6 mm Btu regimes for a 9,000 lateral Well Costs…
Single Well Economics: Marcellus In Ethane Rejection Marcellus Well Economics and Total Gross Locations(1) Assumptions Natural Gas 3 180% 161% 1,400 Oil 54 1,211 Total 3P Locations 160% 1,200 NGLs 65% of Oil Price 2017+ 140%…
Single Well Economics: Utica In Ethane Rejection Utica Well Economics and Gross Locations(1) Assumptions Natural Gas 3 80% 300 255 Oil 54 Total 3P Locations 222 55% 250 60% NGLs 65% of Oil Price 2017+ 200 43% ROR 128…
Strong Balance Sheet and High Flexibility Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 9/30/2017 Debt Liquid Non-E&P Assets 9/30/2017 Debt (1) Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type MM Credit…
Liquidity & Debt Term Structure - Approximately 2.9 billion of combined AR and AM financial liquidity as of 9/30/2017 - No leverage covenant in AR bank facility, only interest coverage and working capital covenants AR Liquidity…
Antero Resources Stand-alone EBITDAX Reconciliation AR Stand-alone EBITDAX Reconciliation Three Months ( in millions) Ended LTM Ended 09/30/2017 09/30/2017 EBITDAX: Operating loss (114.1) (235.8) Commodity derivative fair value…
Antero Resources EBITDAX Reconciliation EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 9/30/2017 9/30/2017 EBITDAX: Net income including noncontrolling interest (90.0) (197.3) Commodity derivative fair value gains 66.0…
Antero Midstream EBITDA Reconciliation EBITDA and DCF Reconciliation Three months ended ( in thousands) September 30, 2016 2017 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 70,524 80,893…
3Q 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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