Credit Suisse 24th Annual Energy Summit FEBRUARY 12, 2019
The Size and Scale to Capitalize on the Resource Antero Acreage Antero Resources Profile SW Marcellus Core Ohio Utica Core Market Cap............ 3.1B Enterprise Value(1). 6.7B Corporate Debt Ratings Ba2 / BB+ / BBB- Stand-alone…
Anteros Integrated Strategy The Most Integrated Natural Gas and NGL Platform in the U.S. A World Class E&P Operator in Appalachia NYSE: AR 7 Billion Enterprise Value(1) Ba2 / BB+ / BBB- Corporate Debt Ratings 31%(1) A…
Recent Developments/Near-Term Catalysts Antero Announces 2019 Capital Budget and Production Guidance (January 2019) Disciplined plan with 20% reduction in D&C capital spending relative to 2018, within cash flow (1), while targeting…
Resilient and Flexible Development Plan Anteros flexible development program through 2023 will be responsive to commodity prices to grow production and maximize free cash flow Lower Prices: 50 Oil / 2.85 Gas Higher Prices: 65 Oil /…
Disciplined Development Plan Depending on the commodity price environment, Antero is poised to prudently grow production to maximize free cash flow, ultimately resulting in an appropriate mix of return of capital to shareholders and…
Simplification Transaction A Near Term Catalyst Midstream Simplification expected to close in March 2019 Provides AR with at least 300 million of cash proceeds Further Aligns the Interest of All Antero Equity Holders and…
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…
Antero Hedge Position Realized 357 MM in proceeds from hedge restructuring while remaining 100% hedged on gas in 2019 and 55%-60% hedged in 2020 at 3.00/MMBtu Antero Hedge Profile (MMcf/d) (/MMBtu) 2,500 2,330 NYMEX Collar Volume…
Anteros NGL Pricing Uplift from Mariner East 2 Mariner East 2 allows AR to access 50,000 Bbl/d Mariner East 2 export capability international LPG markets and realize a 2 to equates to 50 to 60 MM of 4/Bbl uplift on its exported…
Firm Transportation Portfolio Provides Visibility All of Antero Resources contracted firm capacity is now in-service, providing visible production growth and sales to diversified markets Antero Resources Firm Transportation Portfolio…
Expected Natural Gas Price Realization Improvement Antero Firm Transport Index Breakdown 100% 6% decrease to 9% 3% Local Local Markets 90% 19% 80% 18% Midwest 1% increase to 70% Midwest Markets 18% 15% TCO 60% 3% increase…
Sustainable and De-risked Business Model Antero Resources is 100% hedged on natural gas through 2019; Hedges and FT provide price stability to support sustainable long-term development Hedge Portfolio Supports Antero Natural Gas…
Vertical Integration is Critical in Shale Development Anteros integrated strategy has resulted in peer-leading realized prices and margins for 6 straight years and consistent results through commodity cycles Stand-alone E&P Adjusted…
Diversified Natural Gas & NGL Platform with Integrated Strategy
Antero is the Largest NGL Producer in the U.S. Antero is the largest NGL producer in the U.S. and controls 40% of the core undrilled liquids-rich locations in Appalachia(2) Top U.S. C2+ NGL Producers - 2019E(1) Undrilled Core…
Antero is a Top U.S. Natural Gas Producer Antero is the 5th largest natural gas producer in the U.S. Top U.S. Natural Gas Producers (MMcf/d) 3Q18 4,000 5th largest natural gas producer in the U.S. 3,500 3,000 2,500…
U.S. Gas Supply and Base Decline Significant U.S. base decline requires substantial new supply just to maintain flat production 100 Maintenance Production Level Current(1): Base Decline 85 Bcf/d 90 % Contribution to Current Supply…
U.S. Gas Supply and New Supply Wedge Material demand growth through 2023 requires even more new supply 100 Current(1): YE 2023E: 96 Bcf/d 85 Bcf/d Marketed Dry Gas Production Forecast 90 Base Decline 2% % Contribution to Supply…
New Gas Supply Breakdown 47% of new gas supply needed in the 2019-2023 period is forecast to come from plays with breakeven gas prices that are higher than the long-term 2020-2023 strip 2.67/MMBtu New Supply Contribution by Basin…
Antero Natural Gas Breakeven Prices The majority of Antero future drilling locations have a breakeven gas price (25% ROR threshold) below the 2020-2023 NYMEX gas strip (2.67/MMBtu) - 1,679 drilling locations have a ROR 25% at the…
Does Natural Gas Strip Reflect Current Fundamentals 2.72/MMBtu average Nymex gas strip price from Nymex natural gas prices averaged 2019-2023 not expected to stimulate 3.10/MMBtu in 2017 and 2018 enough drilling to meet the…
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…
Long Track Record Of Success Antero Midstream has delivered a 27% dividend CAGR through the downturn and exceeded DCF coverage targets by 22% on average since the IPO New AM Dividend Per Share and DCF Coverage Since IPO (2) 1.40…
Long-Term Outlook New AM Based on ARs flexible long-term outlook, AM is targeting an 18% - 25% distributable cash flow (DCF) CAGR from 2020 to 2022 New AM Distributable Cash Flow Growth Scenarios (2020 2022) 1,600 1,400 1,200…
DCF Profile Supports Growing Return of Capital Antero Midstreams distributable cash flow growth, self-funding business model, and leverage profile supports an increase in return of capital to shareholders Distributable Cash Flow vs.…
Antero: Not Just a Natural Gas Producer Diversified Commodity Mix Enhances Value Proposition Shareholder Value Top NGL producer 9.1 MM shares in the U.S. Liquids-Rich repurchased in 4Q 2018 Return of Resource and Capital Scale…
Appendix
Antero Capitalization Pro forma as of 9/30/18 Antero Midstream Antero Resources Antero Resources As of September 30, 2018 (MM) (Standalone) (Consolidated) Cash 0 0 0 Debt Revolving Credit Facility 875 547 1,422 5.375% Senior…
2019 Capital Plan and Guidance Released on January 8, 2019 Stand-alone Consolidated Net Production (Bcfe/d) 3.15 3.25 Net Natural Gas Production (Bcf/d) 2.225 2.275 Net Liquids Production (Bbl/d) 154,000 164,000 Net Oil, C3+ and…
Antero Resources D&C Capital Through negotiating contracts and self sourcing sand, Antero was able to mitigate a majority of inflationary pressures on D&C capital for 2019 Antero Resources Stand-alone Marcellus Well Cost (MM/1,000…
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…
Antero Resources Standalone Adjusted EBITDAX Reconciliation Stand-alone LTM Adjusted EBITDAX Reconciliation Stand-alone Twelve months ended September 30, (in thousands) 2018 Net income attributable to Antero Resources…
Antero Resources Stand-alone Adjusted EBITDAX Per Mcfe Stand-alone 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 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%…
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