The Size and Scale to Capitalize on the Resource Antero Acreage Antero Resources Profile SW Marcellus Core Ohio Utica Core Market Cap............ 1.7B Enterprise Value(1). 5.1B Corporate Debt Ratings Ba2 / BB+ / BBB- Leverage(2)…
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 Ba2 / BB+ / BBB- Corporate Debt Ratings 31% A Leading Northeast Infrastructure…
AR in a Position of Strength AR has the capital efficiency, financial strength and scale to deliver a right-sized development plan in todays commodity price environment 2014 2019E Change D&C Capex Budget 2.6 Bn 1.3 Bn (1.3) Bn…
Deleveraging Through Commodity Price Volatility AR has reduced its leverage from 3.9x at YE 2014 to 2.1x at 1Q 2019, despite a 30% reduction in average NYMEX natural gas prices and 40% reduction in WTI oil prices AR Net Debt / LTM…
Recent Developments/Near-Term Catalysts Announced 10% Well Cost and 20% LOE Reduction Initiative (June 2019) AR expects D&C capex to be 10% lower in 2020 than 2019 levels under the assumption that AR operates at similar activity…
Well Cost Reduction Initiative AR Targets an Additional 10% Well Cost Reduction By 2020 Capital budget down 20% in 2019 compared to 2018 D&C capex now projected at low-end of guidance: 1.3 to 1.375 Billion(1) 1Q 2018 1Q 2019…
AR Has Built a Resilient Business Model Producer resiliency is a key attribute for a sustainable development plan: Largest NGL producer and 4th largest gas producer with over Scale / Liquids 1,700 premium undrilled core locations…
Scale and Liquids Diversification AR is the fourth largest natural gas producer and largest NGL producer in the U.S. Top U.S. Natural Gas Producers 1Q2019 Top U.S. C2+ NGL Producers - 2019E 4.5 150 1 NGL AR also produces 10 4.0…
Prolific Underlying Resource Underpins Sustainable Growth Antero Resources holds 40% of the core undrilled liquids-rich locations in Appalachia with attractive economics and low breakeven prices Core Liquids-Rich Appalachian…
Premium Drilling Inventory AR has 1,700 undrilled core locations with breakeven gas prices below strip pricing Can tolerate much lower gas prices than any of the dry gas plays excluding any hedge impact Much of ARs drilling inventory…
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 /…
What Happens in a 2.50 Sustained Gas Scenario 1 What is your WTI crude oil price assumption 40% of ARs revenues are derived from liquids 2.85/MMBtu gas / 50/Bbl oil price scenario results in a similar all-in realized price per Mcfe…
Disciplined Development Plan Antero is poised to prudently grow production to maximize free cash flow, ultimately resulting in an appropriate mix of further delevering and return of capital Production Growth Scenarios (2020 2023)…
Hedge Position Protects Downside Commodity Exposure AR has consistently executed a comprehensive commodity hedging program with 4.4 billion of realized hedge gains since 2008 (1) Antero Natural Gas Hedge Profile (BBtu/d) NYMEX Collar…
Antero Oil Hedge Position Antero Oil Hedge Profile (Bbls/d) NYMEX WTI Swap Volume NYMEX WTI Swap Price (/Bbls) 10,000 70 61.83 59.03 60 8,000 50 6,000 40 30 4,000 20 5,000 5,000 2,000 10 Approximately 56% hedged…
Sustainable and De-risked Business Model Antero Resources is 100% hedged on natural gas in 2019; Hedges and FT provide price stability to support sustainable long-term development Hedge Portfolio Supports Antero Natural Gas…
Firm Transportation Portfolio is a Strategic Advantage 2016A 2017A 2018A 2019E 2020E 2021E Realized Hedge Premium gas pricing plus realized hedge Gains (/Mcfe):(1) 1.48 0.26 0.25 0.29 0.21 0.06 - 0.07 profits more than offset the cost…
Expected Natural Gas Price Realization Improvement Antero Firm Transport Index Breakdown 100% 6% decrease to 10% 3% Local Local Markets 90% 19% 80% 17% Midwest 1% increase to 70% Midwest Markets 18% 17% TCO 60% 3% increase…
Inflection Point in NGL Marketing and Pricing With the opening of the ME2 pipeline in the first Diversified exposure to both international and domestic quarter, Antero now has the takeaway necessary markets results in Antero realizing…
LPG Export Arbitrage vs Mont Belvieu International pricing exposure provides premium realizations at Marcus Hook relative to Mont Belvieu through 2020 based on current strip pricing Propane International vs Mont Belvieu Arb (1)…
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 Infrastructure…
Antero: A Leader With a Resilient Business Model Diversified Commodity Mix Enhances Value Proposition Compelling Investment Opportunity Attractive Long-Term Leverage of 2.1x at Outlook Ability to grow Maintain 3/31/19 and generate…
Appendix
Antero Capitalization 3/31/19 As of March 31, 2019 (MM) Antero Resources Cash 0 Debt Revolving Credit Facility 50 5.375% Senior Notes Due 2021 1,000 5.125% Senior Notes Due 2022 1,100 5.625% Senior Notes Due 2023 750 5.000%…
Repositioned With Simplified Structure Midstream simplification transaction results in ownership of one publicly traded midstream entity and better aligns management ownership between the two entities Simplified Structure Original…
Drilling and Completion Efficiencies Continue Drilling Days Average Lateral Feet Drilled per Day 35 9,184 6,000 30 5,308 5,169 25 5,000 Drilling Days Lateral Feet 20 18 4,000 2,901 15 12 3,000 10 10 8 2,000 5 1,000…
Liquidity & Debt Term Structure 3/31/2019 Debt Maturity Profile Credit Facility Senior Notes 1,400 New credit facility has 1,200 allowed Antero to extend its 50 average debt maturity out to 1,100 1,000 2022 1,000 800…
Deleveraging is Driving Ratings Momentum Corporate Credit Ratings History Stable Credit Ratings with Consistent Investment Grade Rating from Fitch Upgrades from the Beginning of the (BBB-) and Upgrade from S&P (BB+) Decade…
Antero Definitions Adjusted EBITDAX: Represents income or loss, including noncontrolling interests, before interest expense, interest income, gains or losses from commodity derivatives and marketing derivatives, but including net cash…
Antero Non-GAAP Measures Continued Adjusted Net Cash Provided by Operating Activities and Free Cash Flow Adjusted Net Cash Provided by Operating Activities as presented in this release represents net cash provided by operating…
Antero Resources Adjusted EBITDAX Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve months ended (in thousands) March 31, 2019 Net income and comprehensive income attributable to Antero Resources Corporation 566,413…
Antero Resources Adjusted EBITDAX Per Mcfe Adjusted EBITDAX per Mcfe Reconciliation 2013 2014 2015 2016 2017 2018 Q1 2019(1) (/Mcfe) Natural gas, oil, ethane and NGL sales 4.31 4.74 2.53 2.60 3.35 3.70 3.65 Realized commodity…
Antero Resources Net Debt to EBITDAX Net Debt to Adjusted EBITDAX Reconciliation (Annual) 2014 2015 2016 2017 2018 1Q19 Millions Debt 4,248 4,082 3,890 3,635 3,855 3,475 Less: Cash (16) (17) (18) (20) -- - Net Debt 4,232 4,065…
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