Third Quarter 2019 Earnings Call Presentation OCTOBER 30, 2019
Cost Reduction Strategy Overview Antero is targeting a 250 MM reduction to its cost structure in 2020 Cost Savings Update 2020 Expected Impact ( MM) Well Cost Reduction Progress 3Q19 represents lowest capex spend since IPO…
Targeted Marcellus Well Cost Reductions Antero has been able to accelerate its well cost reductions into 2H 2019 through water savings initiatives, operational efficiencies and further service cost deflation Targeted Marcellus Well…
Marcellus Drilling and Completion Efficiencies Continue Marcellus Avg. Lateral Feet Drilled per Day Marcellus Drilling Days - Spud to Spud 35 6,000 10,067 6,000 5,500 New 30 Company 5,000 Record 25 Drilling Days 4,000…
Antero Water Savings Performance Year to date, Antero has reduced its budget by 28 MM through its water savings initiatives including blending operations and trucking rate reductions In 4Q19, Antero is forecasting 29 MM in savings…
Water Savings Driving LOE Lower AR is targeting 60 MM, or at least a 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 20.0 150 42 MM…
Firm Transportation Mitigation and Guidance Update As a result of its recent successful mitigation efforts, AR is lowering its 2019 net marketing expense guidance from 0.23/Mcfe to 0.21/Mcfe Antero Resources Firm Transportation…
Industry Leading Natural Gas Hedge Position Defensive strategy to protect cash flow and balance sheet 4.6 billion of net realized hedge gains since 2008 (1) Antero Natural Gas Hedge Profile (BBtu/d) NYMEX Swap Volume NYMEX Collar…
C3+ NGL Hedges Capturing Recent Pricing Strength Antero C3+ NGL Hedges Net of Shipping (1) 2019 AR C3+ NGL Guidance: 110,000 Bbl/d 4Q19 2020 100% Volume Hedged (Bbl/d): 28,422 Volume Hedged (Bbl/d): 12,306 % C3 Hedged: 46% % C3…
NGL Transportation Delivering Premium Pricing With the first full quarter of the ME2 pipeline in Diversified exposure to both international and domestic service in 3Q, Antero realized a 0.12 per gallon markets results in blended C3+…
NGL Price Improvement into Year End Improvements in international and domestic pricing are expected to increase Anteros 4Q19 realized C3+ NGL pricing by 4 to 5/Bbl, before hedges International Monthly Pricing (1) Domestic C3+ NGL AR…
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…
Updated Long-Term Strategy Producer resiliency is a key attribute for a sustainable development plan: Cost AR has targeted 250 MM in reductions in Reduction 2020 capital and operating expenses Initiatives Ongoing Capital…
Appendix
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 1,001 970 944 895 875 850 801 735 735 /Foot of Lateral 601 401…
Natural Gas Rig Count is Responding to Price Gas rig count is responding to lower natural gas prices with a 27% reduction in horizontal gas rigs since March Completion crew count is down 25% since April Horizontal Gas Rig Counts vs…
Completion Crew Count is Responding to Price Completion crew has recently responded to lower natural gas and oil prices with a 25% reduction in active completion crews since April Monthly Average U.S. Completion Crews 1Q 2019 NYMEX…
Marcus Hook to Europe Arbitrage LPG Arbitrage Futures to Europe (ARA) Export Arbitrage to Northwest Europe - Propane /gallon Export Arbitrage to Northwest Europe - Butane /gallon Date MB C3 ARA C3 Spread Shipping Marcus Hook Netback…
Marcus Hook to Asia Arbitrage LPG Arbitrage Futures to Asia (FEI) Export Arbitrage to Far East Asia - Propane /gallon Export Arbitrage to Far East Asia - Butane /gallon Date MB C3 FEI C3 Spread Shipping Marcus Hook Netback Date MB C4…
LPG Supporting Information This material is intended for benchmark pricing estimates only and does not reflect Antero actual contracted prices Key Terms and Definitions: ARA Amsterdam-Rotterdam-Antwerp. ARA is a port and refining area…
Antero Resources Adjusted EBITDAX & Net Debt Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve months ended (in thousands) September 30, 2019 Net income and comprehensive income attributable to Antero Resources Corporation…
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