Baird Global Industrial Conference NOVEMBER 6, 2018
Antero at a Glance The Most Integrated Natural Gas Liquids Platform in the U.S. A World Class E&P Operator in Appalachia Antero Assets Utica NYSE: AR 136,000 Acres 544 Core Drilling Locations Whats new: 600MM share repurchase…
Antero: Not Just a Natural Gas Producer Differentiated Liquids Focused Strategy for Delivering Shareholder Value Shareholder Value 1 NGL producer 600MM share in the U.S. Liquids-Rich repurchase program Return of Resource and…
Largest Liquids Drilling Inventory and Producer Antero controls 40% of the core undrilled liquids-rich locations in Appalachia and is the largest NGL producer in the U.S. Undrilled Core Liquids-rich Inventory(1) Top U.S. C2+ NGL…
Midstream Driving Value for AR Since Inception Owning and controlling the infrastructure is critical to sustainable development; Antero Midstream provides a customized midstream solution Midstream Ownership Benefits AM Midstream…
A Paired Trade Hedges Support FT Commitments Antero is 100% hedged on natural gas at prices 25% above NYMEX through 2019; Hedges and FT provide price certainty and limited volatility Hedge Portfolio Supports Antero Natural Gas…
Capital Efficiency Drives Peer Leading Growth Anteros capital efficiency and attractive economics drives peer-leading debt-adjusted production per share growth Development Plan Details Debt-Adjusted Production Per Share Growth(2)…
A Leader in Realized Pricing and EBITDAX Margins Anteros integrated strategy has resulted in peer-leading realized prices and margins for 6 straight years and consistent results through price cycles Driven by hedges, firm transport to…
Free Cash Flow Inflection Point Anteros capital discipline and substantial decrease in D&C capex in 4Q18, along with strong liquids prices drives sustainable free cash flow Stand-Alone Cash Flow(1) Free Cash Flow Generation Q4…
Market Premium for Free Cash Flow Yield Free Cash Flow is a Prove It story and has been rewarded by the market Industry Leading Free Cash Flow Yield in 2019 160 Weighted Average Price Index 150 Based on FCF Performance…
Financially Disciplined Repurchase Program Disciplined share repurchase plan maintains financial flexibility and balance sheet strength with leverage 2.25x in 4Q 2018 and 2.0x by YE 2019 Share Repurchase Details AR Standalone Net Debt…
Antero Profile Should Drive Multiple Expansion At current prices, share repurchase program allows AR to buy back shares at an attractive 3.5x 2019 standalone unhedged EBITDAX multiple Median Debt/ Median EV/ of Adjusted 2019 Adj. AR…
Appendix
Why Invest in Energy Growth & Capital Discipline Driving ROCE Sector FCF Yield and EBITDA Growth (1) E&P Average Return on Capital Employed (2) 12% 18% Financials 16% A Structural Change to the Industry 10% As the Shale…
Energy: A Value Investment Opportunity 400 Consumer Discretionary 17.2x 350 Sector Appreciation on the Horizon Information Technology 14.4x 300 Despite growth, FCF, and a structural change in ROCE, the energy sector has…
Antero Simplified Pro Forma Structure Midstream simplification transaction results in one publicly traded midstream entity and better aligns the interests of PE sponsors and management with AR shareholders Eliminates IDRs and the…
Compelling Full Cycle Well Economics Fully burdened well economics Corporate ROR support investment well in excess of cost of capital Single Well Economics Bridge to Corporate Level Returns 120% Well Assumptions 12,000 Lateral…
Antero Non-GAAP Measures Stand-Alone Adjusted EBITDAX, Stand-Alone Adjusted Operating Cash Flow and Free Cash Flow are financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP). The…
Antero Non-GAAP Measures Antero has not included a reconciliation of Stand-Alone Adjusted EBITDAX to the nearest GAAP financial measures for 2018 because it cannot do so without unreasonable effort and any attempt to do so would be…
Antero Resources Stand-alone Adjusted EBITDAX Reconciliation Stand-Alone Three months ended September 30, (in thousands) 2017 2018 Net (loss) attributable to Antero Resources Corporation (135,063) (154,419) Net Income attributable…
Antero Resources Adjusted EBITDAX Margin Reconciliation AR Stand-Alone Adjusted EBITDAX Margin Reconciliation (1)Includes cash payments for settled marketing derivative losses of 0.06 per Mcfe in 2018. Includes marketing revenues…
Antero Resources Stand-alone Adjusted EBITDAX Per Mcfe Standalone Adjusted EBITDAX per Mcfe Reconciliation (Annual) 2013 2014 2015 2016 2017 1Q2018 2Q2018 3Q2018 (/Mcfe) Natural Gas, Oil, Ethane and NGL sales 4.31 4.74 2.53 2.60…
Antero Resources Standalone Adjusted EBITDAX Reconciliation Standalone LTM Adjusted EBITDAX Reconciliation Stand-Alone Twelve months ended September 30, (in thousands) 2018 Net income attributable to Antero Resources Corporation…
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