The Size and Scale to Capitalize on the Resource Antero Rigs Antero Resources Profile Antero Acreage SW Marcellus Core Market Cap............ 1.0 B Ohio Utica Core Enterprise Value(1). 4.6 B LTM EBITDAX 1.6 B Ownership in AM…
Large Well-Delineated Core Drilling Inventory 10+ Years of Premium Drilling Inventory Does not assume infill drilling Liquids-rich Inventory AR holds 40% of the core undrilled liquids-rich locations in Appalachia Contiguous Acreage…
Modest Growth Strategy is Optimal 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…
The Road Map - Modest Growth vs Maintenance Capital A modest growth plan through 2022 provides AR with sustainable free cash flow by filling currently unutilized FT thereby eliminating 200 MM of annual unutilized pipeline expenses by…
Firm Transportation Portfolio is a Strategic Asset ARs FT portfolio has delivered Appalachia-leading realized natural gas pricing quarter after quarter Antero Resources Firm Transportation Portfolio vs. Gross Gas Production…
Industry Leading Natural Gas Hedge Position Defensive strategy to protect cash flow and balance sheet 4.5 billion of net realized hedge gains since 2008 (1) Antero Natural Gas Hedge Profile (BBtu/d) NYMEX Collar Volume NYMEX Swap…
NGL Transportation Delivering 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+…
Realizing Overall Blended Premium to Mont Belvieu Mariner East 2 has improved ARs 1H 2019 C3+ NGL price differential to Mont Belvieu by 6.33/Bbl vs 1H18, flipping to a slight premium to Mont Belvieu Antero Blended C3+ NGL Differential…
Marcellus Drilling and Completion Efficiencies Continue Marcellus Drilling Days - Spud to Spud 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…
Targeted Marcellus Well Cost Reductions All of the coming well cost reductions have been tested on a pilot basis and are within Anteros control Targeted Marcellus Well Cost Reductions (January 2019 AFE to 2020 Target) (MM) 12.00…
Well Cost Reduction Components AR has achieved approximately 500,000 per well in cost reductions since the January 2019 budget, the remaining 950,000 per well expected to begin in 2020 Targeted Marcellus Well Cost Reductions…
Appalachian Peer Marcellus Well Cost Comparison AR targeting 850/ft or lower Southwest Marcellus Peer Well Costs (/Foot of Lateral) 1,201 1,020 982 1,001 970 944 875 850 /Foot of Lateral 801 735 735 601 401 201…
Water Savings Driving LOE Lower AR is targeting 60 MM or at least 30% reduction in LOE unit costs through its water savings initiatives for 2020, driven by local treatment of flowback water (MM) 225 200 42.0 175 18.0 150 42 MM…
Strong Financial Position for Low Price Environment Antero has the liquidity, scale, premium inventory, capital efficiency and hedge support to continue to develop in todays commodity price environment Strong Financial Position Credit…
High Yield Market Update Anteros Senior Notes have traded favorably relative to many of its Appalachian peers YTD High Yield Trading History 23% Montage Resources 8.875% due 2023 Gulfport Energy 6.375% due 2026 Ascent Resources…
High Yield Market is Rarely Closed to E&P Issuers The high yield market has not had any E&P issuances for four months or more on only three occasions in the past 12 years BB credits like Antero have the most access Historical High…
U.S. Gas Supply and New Supply Wedge Material demand growth through 2023 plus base decline requires 80 Tcf of new supply YE 2023E: 97.7 Bcf/d 100 YE 2018: Current (1): 86.0 Bcf/d 90.3 Bcf/d Marketed Dry Gas Production Forecast Rest…
Natural Gas Prices Must Support Dry Gas Development Only 32% of the new gas supply needed in the 2019 through 2023 period is forecast to come from associated gas plays where natural gas price is not the driving factor for development…
Superior Well Economics vs 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…
Natural Gas Rig Count is Responding to Price Gas rig count is responding to lower natural gas prices with a 14% reduction in horizontal gas rigs since March Completion crew count is down 11% since April Horizontal Gas Rig Counts vs…
LNG Demand Growth for Years 3.9 Bcf/d of LNG capacity growth expected AR is a top U.S. LNG supplier with in 2019 with multiple 2nd wave commitments expected to reach projects seeking FID 700 MMcf/d by YE 2019 U.S. LNG Export…
The AR Opportunity A sustainable development plan is critical in volatile markets: 2nd Largest NGL producer and 5th largest gas producer with Scale / Liquids 1,600 premium undrilled core locations with breakeven Diversification…
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…
Anteros Sustainability Focus Environmental Stewardship GHG Emissions Water Management Active member of industry Antero is an industry leader in leading greenhouse gas greenhouse gas (GHG) emissions reduction partnerships that…
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…
Completion Crew Count is Responding to Price Completion crew has recently responded to lower natural gas and oil prices with an 11% reduction in active completion crews since April Monthly Average U.S. Completion Crews 1Q 2019 NYMEX…
Antero Oil Hedge Position AR has hedged approximately 100% 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…
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…
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…
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…
Appalachia Liquids-Rich Development Fee Analysis Liquids-rich development requires integrated gathering, compression, and processing infrastructure and requires additional midstream services compared to dry gas development Appalachia…
Antero Definitions Net Debt: Net Debt is calculated as total debt less cash and cash equivalents. Management uses Net Debt to evaluate its financial position, including its ability to service its debt obligations. Proved Undeveloped…
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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