Antero Resources Snapshot Modest Growth Strategy Optimizes Value and Free Cash Flow Fills premium unutilized pipeline capacity by 2022, minimizing net marketing expense Results in 400 million more free cash flow in 2022 than going to…
Modest Growth Strategy is Optimal A modest growth plan through 2022 provides AR with sustainable free cash flow by filling currently unutilized FT and eliminating 200 MM of unutilized pipeline expenses by 2022 Maintenance Mode vs…
Maintenance Capital and Decline Rates Capital required to maintain flat production is driven by the base decline rate, which is a function of growth over the prior 12 months, as well as the beginning production level and capital…
The Size and Scale to Capitalize on the Resource Antero Rigs Antero Resources Profile Antero Acreage SW Marcellus Core Market Cap............ 1.4B Ohio Utica Core Enterprise Value(1). 5.0B Ownership in AM (31%) 1.4B Leverage(2)…
Scale and Product Diversification AR is the 5th largest natural gas producer and 2nd largest NGL producer in the U.S. Top U.S. Natural Gas Producers 2Q2019 Top U.S. C2+ NGL Producers - 2019E 2 NGL Producer following 4.5 250 OXY /…
Prolific Underlying Resource Underpins Sustainable Growth AR holds 40% of the core undrilled liquids-rich locations in Appalachia and has lower breakeven natural gas price than dry gas producers Core Liquids-Rich Appalachian…
Large Well-Delineated Core Drilling Inventory 10+ Years of Premium Drilling Inventory Does not assume infill drilling Contiguous Acreage Position Delivers Efficient Development Long-laterals average 12,100 in Marcellus rich-gas…
Firm Transportation Portfolio Provides Visibility ARs FT portfolio has delivered Appalachia-leading realized natural gas pricing quarter after quarter Antero Resources Firm Transportation Portfolio vs. Gross Gas Production (MMcf/d)…
NGL Transportation Delivers Premium Pricing With the first full quarter of the ME2 pipeline in Diversified exposure to both international and domestic service in 2Q, Antero realized a 0.19 per gallon markets results in blended C3+ NGL…
Improvement in Northeast NGL Differentials The 1Q 2019 in-service of Mariner East 2 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…
Industry Leading Natural Gas 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…
Antero Oil Hedge Position AR has hedged approximately 90% and 50% of its expected oil production for 2H 2019 and 2020, respectively, at attractive prices above current strip Antero Oil Hedge Profile (Bbl/d) WTI Swap Volume Antero…
AR Hedge Gains Offset Net Marketing Expense Anteros expected hedge gains offset net marketing expense through 2021 until the point in 2022 when the firm transportation is essentially filled Hedge Gains vs Net Marketing Expense…
Superior Well Economics to Dry Gas Producers Liquids producers with associated gas have superior well economics in the current commodity price environment Natural Gas Breakeven Price by Region 25% ROR Half Cycle Breakeven…
Marcellus Drilling and Completion Efficiencies Continue Marcellus Drilling Days Marcellus Avg. Lateral Feet Drilled per Day 35 9,650 30 6,000 5,470 5,500 New World 25 5,000 Record Drilling Days 20 Lateral Feet 4,000 15…
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 11.50 970/ft 0.50 Current AFE 11.1 11.00 0.93/1,000 0.70 10.4 10.50…
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…
Appalachian Peer Marcellus Well Cost Comparison Southwest Marcellus Peer Well Costs (/Foot of Lateral) 1,200.50 1,020 982 1,000.50 970 944 875 850 /Foot of Lateral 800.50 735 735 600.50 400.50 200.50 0.50 Peer 2…
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…
Anteros Sustainability Focus Environmental Stewardship GHG Emissions Water Management Active member of industry 21% decrease in greenhouse gas leading greenhouse gas (GHG) emissions intensity since reduction partnerships that 2017 to…
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…
AR Has Built a Resilient Business Model Producer resiliency is a key attribute for a sustainable development plan: 2nd Largest NGL producer and 5th largest gas producer with Scale / Liquids 1,700 premium undrilled core locations with…
Appendix
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…
Corporate Credit Ratings History 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 Through the…
Antero Capitalization 6/30/19 As of June 30, 2019 (MM) Antero Resources Cash 0 Debt Revolving Credit Facility 175 5.375% Senior Notes Due Nov. 2021 1,000 5.125% Senior Notes Due Dec. 2022 1,100 5.625% Senior Notes Due Jun. 2023…
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…
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 presentation represents net cash provided by operating…
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…
Antero Resources Net Debt to EBITDAX Net Debt to Adjusted EBITDAX Reconciliation (Annual) 2014 2015 2016 2017 2018 2Q19 Millions Debt 4,248 4,082 3,890 3,635 3,855 3,602 Less: Cash (16) (17) (18) (20) -- -- Net Debt 4,232 4,065…
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