Second Quarter 2019 Earnings Call Presentation AUGUST 1, 2019
Targeted Marcellus Well Cost Reductions Targeted Marcellus Well Cost Reductions (January 2019 AFE to 2020 Target) (MM) Assumes 12,000 foot lateral 12.00 11.6 11.50 0.97/1,000 0.50 Current AFE 11.1 11.00 0.93/1,000 0.70 10.4…
Cost Reduction Initiatives Breakdown AR has achieved approximately 500,000 per well in cost reductions since the January 2019 budget with the remaining 950,000 per well expected to begin in 2020 Targeted Marcellus Well Cost Reductions…
Marcellus Drilling and Completion Efficiencies Drilling Days Average Lateral Feet Drilled per Day 35 9,650 6,000 5,470 5,500 New 30 World 25 5,000 Record Drilling Days Lateral Feet 20 4,000 15 12.0 3,000 11.9 10 8.0…
Appalachian Peer Marcellus Well Cost Comparison Southwest Marcellus Peer Well Costs (MM/1,000) 1.10 1.02 1.00 0.98 0.97 0.94 0.88 0.90 MM / 1,000 0.85 0.80 0.74 0.73 0.70 0.60 0.50 Peer 2 Peer 3 AR Peer 1 Peer 2…
Inflection Point in NGL Marketing and Pricing With the first full quarter of the ME2 pipeline in Diversified exposure to both international and domestic service, Antero realized a 0.19 per gallon markets results in Antero realizing a…
Improvement in Northeast NGL Differentials The 1Q 2019 in-service of Mariner East II has improved ARs 1H 2019 NGL price differentials to Mont Belvieu by 6.33/Bbl vs 1H18, flipping to a premium to Mont Belvieu Antero Blended NGL…
AR Hedge Position AR has consistently executed a comprehensive commodity hedging program with 4.5 billion of realized hedge gains since 2008 (1) Antero Natural Gas Hedge Profile (BBtu/d) NYMEX Collar Volume NYMEX Swap Volume Antero…
AR Hedge Gains Offset Net Marketing Expense Anteros hedge gains offset net marketing expense through 2021 until the point in 2022 when the firm transportation is essentially filled (1) Hedge Gains vs Net Marketing Expense (/Mcfe)…
AR Hedge Book Leads Appalachian Peers During 2Q 2019, AR layered on 810 MMBtu/d of 2020 natural gas hedges increasing its percentage of expected natural gas production volume to 90% 2020 Appalachian Peer Hedge Profile Hedged Volume…
AR Hedge Book Leads Appalachian Peers During 2Q 2019, AR layered on 300 MMBtu/d of 2021 natural gas hedges increasing its percentage of expected natural gas production volume to over 35% 2021 Appalachian Peer Hedge Profile Hedged…
Strong Financial Position for Low Price Environment Antero has the liquidity, scale, deep inventory and capital efficiency to continue to develop in todays commodity price environment Strong Financial Position Credit Facility Summary…
Maintenance Capital and Decline Rate Projections Capital required to maintain flat production is a function of the base decline rate, which is a function of growth over the prior 12 months, as well as the beginning production level and…
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 Scale / Liquids 1,700 premium undrilled core locations with…
Appendix
Antero Oil Hedge Position Antero Oil Hedge Profile (Bbl/d) Antero WTI Swap Volume Antero WTI Swap Price (/Bbl) 10,000 70 59.50 59.03 60 8,000 50 6,000 40 9,000 30 4,000 20 5,000 2,000 Approximately 100% hedged from…
Deleveraging Through Commodity Price Volatility AR has reduced its leverage from 3.9x at YE 2014 to 2.3x at 2Q 2019, despite a 36% reduction in average NYMEX natural gas prices and a 40% reduction in WTI oil prices AR Net Debt / LTM…
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…
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 Resources Adjusted EBITDAX & Net Debt Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve months ended (in thousands) June 30, 2019 Net income and comprehensive income attributable to Antero Resources Corporation 744,966…
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