Pathway to Continued Growth Repurchased 100 million of AM shares from AR Retires AM shares, reducing annual dividends by over 20 million based on the annual 1.23 per share dividend target in 2020 First step of ARs 750 MM to 1.0 Bn…
Growth Incentive Program Summary AR/AM Growth incentive targets structured in a manner that aligns ARs plan to grow net production by 8% to 10% through 2021 in order to fill its premium FT portfolio Actual reduction in low pressure…
What Has Changed Since 2014 AMs low pressure gathering economics have improved dramatically due to: Longer laterals, more wells per pad, higher EURs, and a more consolidated acreage position that requires lower midstream infrastructure…
AM Gathering and Compression Margins After including the implied low pressure gathering fee reduction of (0.05)/Mcf, AMs gathering and compression unit margins are still 13% higher than 2014 margins AM has achieved a 50% reduction in…
Significant Capital Reductions Antero Midstream has reduced its 2019 and 2020 capital budgets by 325 to 350 million in total since the beginning of 2019 in response to lower commodity prices Visibility into ARs development plan and…
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…
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…
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…
Antero Midstream New Outlook Summary Growth Incentive Fee Program Incentivizes ARs Modest Growth Plan Delivers revenue and cash flow growth wedge to AM in a challenging market AR reduced GP&T costs by an expected 350 to 450 million…
APPENDIX
Antero Midstream Non-GAAP Measures Antero Midstream uses non-GAAP financial measures in this presentation. Antero Midstream uses Adjusted EBITDA as an important indicator of Antero Midstreams performance. Antero Midstream defines…
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 commodity price assumptions based on 12/05/19 strip pricing NYMEX Natural Gas Pricing (/MMBtu) Oil and C3+ NGL Pricing (/Bbl) NYMEX WTI Oil Strip…
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:…
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…
Antero Non-GAAP Measures Adjusted EBITDAX: Adjusted EBITDAX as defined by the Company represents income or loss, including noncontrolling interests, before interest expense, interest income, gains or losses from commodity derivatives and…
Antero Non-GAAP Measures (cont.) Free Cash Flow: Free Cash Flow as presented in this release and defined by the Company represents Cash Flow from Operations, less Drilling and Completion capital and leasehold capital. Includes the…
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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