Pathway to Sustainable Free Cash Flow Reduced gathering, processing and transportation costs and net marketing expense by an expected 350 MM in total over the 2020 through 2023 period (1) Successfully renegotiated midstream fees with…
Enhanced Antero Outlook Midstream fee reductions and internal cost saving initiatives expected to eliminate Anteros cash flow Free Cash Flow (MMs) outspend in 2020 and 2021 on a combined basis Previous Outlook New Outlook Execution…
Substantial Liquidity Enhancements Antero has substantial capacity to address its late 2021 and 2022 bond maturities due to: Internal cost reduction initiatives Third party midstream fee reductions Targeted asset sales Previous…
Total Debt and Free Cash Flow Enhancements Antero is targeting 750 MM to 1.0 B of asset sales in 2020 and 1.35 -1.55 B in cash flow improvements over next four years Debt Reduction (2020) Cash Flow Improvements (2020 through 2023)…
Asset Monetization Opportunity Set AR has multiple assets that can be monetized to reduce debt, including undeveloped leasehold, mineral position, producing properties, hedge portfolio and midstream ownership Asset Monetization…
Growth Incentive Fee Program Summary AR/AM Growth incentive fee program with AM structured in a manner that aligns with ARs plan to grow net production by 8% to 10% through 2021 in order to fill its premium FT portfolio Actual reduction…
Significant Reduction in AR Cost Structure A 0.15/Mcfe reduction in cash costs expected in 2020 and 0.35+/Mcfe reduction by 2022 AR All-in Cash Operating Cost Structure (/Mcfe) Net Marketing Expense Cash Production Expenses (GP&T,…
Premium Realized Pricing AR expects to generate a 3.00+ realized price per Mcfe even in a 2.50/MMBtu price environment Firm transport provides access to premium natural gas markets and international propane and butane markets…
Unhedged E&P Recycle Ratio Assuming a 3.00 unhedged realized price and unlevered cost structure of 2.15 per Mcfe all-in, AR expects to be able to generate a 2.2x recycle ratio on its capital Even in a low price environment, AR still…
C3+ NGLs: Absolute & Relative Price Improvement NGL prices have risen on both an absolute basis and as a percent of WTI during the fourth quarter of 2019 AR Monthly Realized C3+ NGL Price /Bbl AR C3+ Realized Price (/Bbl) % of WTI…
NGL Prices Have Strengthened Materially Weekly Benchmark Index Pricing as of 12/6/2019 Net of Shipping (1) This data reflects benchmark pricing estimates and does not directly reflect Anteros realized prices or hedges 2019 AR C3+ NGL…
2020 Drilling Program Generates Attractive Rates of Return GP&T and net marketing expense reductions are expected to drive higher rates of return for 2020 drilling Expected to generate a 43% cash on cash half-cycle rate of return…
Credit Enhancement Momentum Announced Asset Sale Target of 750 MM to 1.0 B through 2020 Asset monetization alternatives include lease acreage, minerals, producing properties, hedge restructuring or sale of AM shares to Antero…
Appendix
LOE Reductions Materially Reducing LOE Targeting reduced LOE by at least 35% in 2020 (74 MM+) Antero Lease Operating Expense Reductions (2020 Target) (MM) 225 200 42.0 175 32.0 150 125 42 MM (0.03/Mcfe) reduction driven by 32…
AR Assumptions The AR forecast used in this presentation was based on the following assumptions. Commodity prices are based on 12/05/19 strip pricing. NYMEX Natural Gas Pricing (/MMBtu) Oil and C3+ NGL Pricing (/Bbl) NYMEX WTI Oil…
C3+ NGL Hedges Capturing Recent Pricing Strength Antero C3+ NGL Hedges Net of Shipping 2019 AR C3+ NGL Guidance: 110,000 Bbl/d 4Q19 2020 100% Volume Hedged (Bbl/d): 28,422 Volume Hedged (Bbl/d): 13,201 % C3 Hedged: 46% % C3 Hedged:…
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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