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December 2018 Corporate Presentation – Antero Resources

Antero Resources · Dec 19, 2018 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. December 2018 Corporate Presentation – Antero Resources – slide 1
    Company Presentation DECEMBER 2018
  2. December 2018 Corporate Presentation – Antero Resources – slide 2
    The Size and Scale to Capitalize on the Resource Antero Acreage Antero Resources Profile SW Marcellus Core Ohio Utica Core Market Cap............ 3.4B Enterprise Value(1). 7.4B Corporate Debt Ratings Ba2 / BB+ / BBB- Stand-Alone…
  3. December 2018 Corporate Presentation – Antero Resources – slide 3
    Recent Developments/ Near-Term Catalysts Hedge Monetizations and Restructuring (December 2018) Generated Proceeds of 357 million to repay debt Monetized 68% of Apr-Dec 2019 natural gas fixed price swaps Replaced with collars…
  4. December 2018 Corporate Presentation – Antero Resources – slide 4
    2019 Hedge Restructuring Antero monetized 1.575 Bcf/d of swaps generating approximately 235 MM in proceeds April December 2019 swaps monetized at attractive NYMEX levels and replaced with collars Puts protect downside at 2.50/MMBtu…
  5. December 2018 Corporate Presentation – Antero Resources – slide 5
    2020 Hedge Restructuring Antero reset 2020 swaps at slightly lower prices generating approximately 122 MM in proceeds NYMEX swap price reduced from 3.25/MMBtu to 3.00/MMBtu in 2020 No change to overall hedged volumes Proceeds…
  6. December 2018 Corporate Presentation – Antero Resources – slide 6
    Natural Gas Price Realizations Provide 4Q18 Uplift Rover Sherwood Lateral was placed into ARs 400 MMcf/d of unhedged natural gas service in November unlocking 550 MMcf/d production in 4Q18 provides exposure to Midwest & Gulf Coast…
  7. December 2018 Corporate Presentation – Antero Resources – slide 7
    Expected Natural Gas Price Realization Improvement Antero 2018 Firm Transport Index Breakdown 100% 6% decrease to 11% Local Markets 5% Local 90% 80% 16% 24% Midwest 8% increase to 70% Midwest Markets 17% 10% TCO 60% 7% decrease…
  8. December 2018 Corporate Presentation – Antero Resources – slide 8
    Simplification Transaction A Near Term Catalyst Midstream Simplification expected to close in 1Q19 Provides AR with at least 300 million of cash proceeds Further Aligns the Interest of All Antero Equity Holders and Management…
  9. December 2018 Corporate Presentation – Antero Resources – slide 9
    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…
  10. December 2018 Corporate Presentation – Antero Resources – slide 10
    Diversified Business Reduces Commodity Risk The increase in natural gas prices and sales point improvement has substantially offset the cash flow impact from lower oil and NGL prices 700 600 500 400 Natural Gas Spike…
  11. December 2018 Corporate Presentation – Antero Resources – slide 11
    The Value Proposition A Substantially Better Outlook From the Last Hedge Monetization to Today Total Net Debt: Down 18%(1) Adj. EBITDAX, Production and Reserves: Up 20%(1) Future Liquids and Natural Gas Prices: Up 5-10%…
  12. December 2018 Corporate Presentation – Antero Resources – slide 12
    Natural Gas Liquids Update: Leading Position
  13. December 2018 Corporate Presentation – Antero Resources – slide 13
    Largest NGL Producer Antero is the largest NGL producer in the U.S. and controls 40% of the core undrilled liquids-rich locations in Appalachia Top U.S. C2+ NGL Producers - 2018E(2) Undrilled Core Liquids-rich Inventory(1) 2,500…
  14. December 2018 Corporate Presentation – Antero Resources – slide 14
    A Leader in Realized Pricing and Adj. EBITDAX Margins Anteros integrated strategy has resulted in peer-leading realized prices and margins for 6 straight years and consistent results through price cycles Standalone E&P Adj. EBITDAX…
  15. December 2018 Corporate Presentation – Antero Resources – slide 15
    Anteros Ethane Exposure: All Upside Anteros balanced approach to ethane +0.10/gal ethane price change equates to sales results in 50% of contracts tied 40 MM in incremental revenue to purity ethane prices vs. natural gas value…
  16. December 2018 Corporate Presentation – Antero Resources – slide 16
    Anteros First Ethane Export November 2018 Anteros 11,500 Bpd C2 sales contract with Borealis commenced on November 1, 2018 First ship departed Marcus Hook on November 26 with 337,040 barrels of ethane bound for Borealis steam cracker…
  17. December 2018 Corporate Presentation – Antero Resources – slide 17
    Powerful C3+ NGL Pricing Upside Exposure Compounded pricing leverage from For every 5.00/Bbl increase in NGL increasing volumes, prices, and Mariner prices, Antero generates an East 2 uplift drives cash flow growth incremental 170MM…
  18. December 2018 Corporate Presentation – Antero Resources – slide 18
    Anteros NGL Pricing Uplift from Mariner East 2 Mariner East 2 will allow AR to access 50,000 Bbl/d Mariner East 2 commitment international LPG markets and realize a equates to over 61 MM of 3.36/Bbl uplift on its exported barrels…
  19. December 2018 Corporate Presentation – Antero Resources – slide 19
    Liquids-Rich Resource + Capital Efficiency = Free Cash Flow
  20. December 2018 Corporate Presentation – Antero Resources – slide 20
    Drilling and Completion Efficiencies Drilling Days Completion Stages per Day 35 10.0 10.0 9.0 30 9.0 8.0 25 Drilling Days Stages per Day 20 7.0 20 6.0 5.5 5.0 4.6 15 12 10 4.0 3.6 10 8 3.0 5 2.0 1.0 0 2014 2015…
  21. December 2018 Corporate Presentation – Antero Resources – slide 21
    Integrated Business Strategy Drives Peer Leading Margins
  22. December 2018 Corporate Presentation – Antero Resources – slide 22
    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…
  23. December 2018 Corporate Presentation – Antero Resources – slide 23
    Antero Midstream At A Glance Status Quo AM Highlights Antero Midstream Marcellus Assets Market Cap....... 4.7B Enterprise Value.......... 6.3B LTM Adjusted EBITDA(1).. 665 MM % Gathering/Compression 65% New Smithburg JV %…
  24. December 2018 Corporate Presentation – Antero Resources – slide 24
    Antero: Not Just a Natural Gas Producer Diversified Commodity Mix Enhances Shareholder Value Shareholder Value Top NGL producer 600MM share in the U.S. Liquids-Rich repurchase program Return of Resource and Capital Scale…
  25. December 2018 Corporate Presentation – Antero Resources – slide 25
    Appendix
  26. December 2018 Corporate Presentation – Antero Resources – slide 26
    Antero Pro Forma Hedge Position Total proceeds from hedge restructuring of 357 MM in proceeds Antero Hedge Profile (MMcf/d) (/MMBtu) 2,500 2,330 NYMEX Collar Volume NYMEX Swap Volume 4.00 3.48 3.44 NYMEX Swap Price NYMEX Strip…
  27. December 2018 Corporate Presentation – Antero Resources – slide 27
    Compelling Full Cycle Well Economics Fully burdened pre-hedge well Corporate ROR economics support investment well in excess of cost of capital Single Well Economics Bridge to Corporate Level Returns 120% Well Assumptions 12,000…
  28. December 2018 Corporate Presentation – Antero Resources – slide 28
    Liquidity & Debt Term Structure 9/30/2018 Debt Maturity Profile AR Credit Facility AM Credit Facility AR Senior Notes AM Senior Notes 3,000 2,500 New credit facilities for AR and AM have allowed 875 2,000 Antero to extend…
  29. December 2018 Corporate Presentation – Antero Resources – slide 29
    Delevering is Driving Ratings Momentum Corporate Credit Ratings History Stable Credit Ratings with Consistent Investment Grade Rating from Upgrades from the Beginning of the Fitch (BBB-) & Recent Decade Through the Downturn Upgrade…
  30. December 2018 Corporate Presentation – Antero Resources – slide 30
    Dramatically Lower F&D Cost F&D Cost per Mcfe(1)(2) Marcellus Utica 1.40 1.28 52% 42% 1.20 Lower F&D in Marcellus Utica (2014 2017) 1.00 0.94 0.88 0.80 0.73 0.73 0.74 0.60 0.51 0.42 0.40 0.20 0.00 2014 2015…
  31. December 2018 Corporate Presentation – Antero Resources – slide 31
    Antero Assumptions: Single Well Economics SWE Cost Type Description of Cost Half Cycle Full Cycle Drilling and completion costs Assumes well costs for a 12,000 lateral, Marcellus: 10.6MM Marcellus: 11.4MM 2,000 lbs of proppant per…
  32. December 2018 Corporate Presentation – Antero Resources – slide 32
    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…
  33. December 2018 Corporate Presentation – Antero Resources – slide 33
    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…
  34. December 2018 Corporate Presentation – Antero Resources – slide 34
    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…
  35. December 2018 Corporate Presentation – Antero Resources – slide 35
    Antero Midstream Non-GAAP Measures The following table reconciles consolidated total debt to consolidated net debt (Net Debt) as used in this presentation (in thousands): September 30, 2018 Bank credit facility 875,000 5.375% AM…

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