Scotia Howard Weil 48th Annual Energy Conference March 24, 2020
Antero Resources at a Glance Denver, CO Antero Resources Acreage Map HEADQUARTERS Antero Marcellus Rig Industry Marcellus Rig S&P 400 Industry Utica Rig Antero Acreage CONSTITUENT SW Marcellus Core Ohio Utica Core 2nd…
Leading Sustainability and ESG Metrics GHG Emissions Water Management Antero has zero flaring of produced gas, one of the lowest GHG Fresh water pipeline network intensity metrics in the industry (upstream independents and majors)…
AR Business Strategy Antero Resources Principles Priorities 1 Spend within cash flow, fill premium Build scale with firm transportation capacity Liquids Diversification 2 Liquidity and strengthen balance sheet with leverage…
1 Spend Within Cash Flow - Cost Structure Reset Drilling and completion efficiencies result in a reduction in 2020 CAPEX to 1.0 B, down 150 MM from prior guidance Cost Savings Update 2020 Expected Impact (1) Well Cost Reduction…
Marcellus Well Cost Reductions Significant Reduction in Well Costs already in-hand Targeting reduced well costs by 23% (2.6 million per well) Targeted Marcellus Well Cost Reductions (January 2019 AFE to Mid-2020 Target) (MM) 12.00…
1 Spend Within Cash Flow Lower Costs Drives Free Cash Flow Profile Cost structure reset results in enhanced free cash flow profile. The 2020 capital plan will remain flexible, targeting cash flow neutrality. AR Free Cash Flow ( MM)…
2 Strengthen Balance Sheet - Significant Absolute Debt Reduction AR has multiple assets that can be monetized in 2020 to reduce debt including producing properties, undeveloped leasehold, overriding royalty, minerals, hedges and…
2 Strengthen Balance Sheet - Liquidity & Leverage Antero plans to have substantial capacity to address its November 2021 and December 2022 bond maturities due to: Capital and operating cost reductions GP&T fee and net marketing…
3 Develop Liquids-Rich Locations - Large Delineated Drilling Inventory AR Resource Overview AR Marcellus Asset Map Deep Drilling Inventory AR holds 40% of the core undrilled liquids-rich locations in Appalachia 10+ years of premium…
3 Develop Liquids-Rich Locations Premium NGL Price Realizations Diversified exposure to both international and domestic markets results in Antero realizing a premium to Mont Belvieu on its C3+ NGL pricing Domestic Markets…
4 Hedge Commodities - Protected From Gas Pricing Weakness AR has hedged 94% and 93% of expected natural gas production in 2020 and 2021 at 2.87/MMBtu and 2.80/MMBtu, respectively Antero has realized 4.7 billion of net cash hedge gains…
4 Hedge Commodities - Significant Oil Hedge Position AR has hedged 100% of expected oil and oil-equivalent pentane production in 2020 at 55.63/Bbl and 10% of oil and oil equivalent production in 2021 at 55.16/Bbl Antero Oil and…
Premier Northeast Infrastructure Platform
Antero Midstream Snapshot Proven Returns and Conservative Aligned with Capital Discipline Financial Policy Shareholders 54% Adjusted EBITDA Maintain conservative Eliminated IDRs and CAGR and 12% average leverage converted to a…
Fixed Fee Business Model Insulates EBITDA Growth Antero Midstream generates all of its revenues through fixed-fee contracts, insulating Adjusted EBITDA growth from commodity price volatility Details Antero Midstream Adjusted EBITDA…
2020 Capital Budget AMs just-in-time capital investment approach adjusts to ARs plan and results in a budgeted 59% decrease in 2020 as compared to 2019 Actual Capital Expenditures (MM) Marcellus Project Map 2019 fresh water 800…
Capital Efficiency Drives Free Cash Flow Generation AMs capital efficiency and flexibility drives attractive mid-teens ROIC and ability to generate significant free cash flow (before return of capital) AM Free Cash Flow (MM Before…
Antero Midstream Investment Summary Leverage in the mid 3-times flexing to high 3-times for accretive transactions 100% fixed-fee business model eliminates direct commodity price risk Benefits from strong sponsor and…
Appendix
LOE Reductions Materially Reducing LOE Targeting reduced LOE by 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 MM…
Growth Incentive Program Summary AR/AM Growth incentive targets 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 in low pressure…
Antero Resources: Advantaged NGL Producer Producer Disadvantaged & Constrained: Producer Advantaged & Unconstrained: E&Ps in Permian, Rockies, Mid-Con & Bakken Antero Resources in Appalachia AR is the largest C3+ producer with the…
Antero Resources Adjusted EBITDAX Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve months ended (in thousands) December 31, 2019 Net loss and comprehensive loss attributable to Antero Resources Corporation (340,129) Net income…
Antero Resources Net Debt Reconciliation Net Debt Reconciliation December 31, 2019 AR bank credit facility 552,000 5.375% AR senior notes due 2021 952,500 5.125% AR senior notes due 2022 923,041 5.625% AR senior notes due 2023…
Antero Midstream Non-GAAP Measures Non-GAAP Financial Measures and Definitions Antero Midstream uses certain non-GAAP financial measures. Antero Midstream defines Adjusted Net Income as net income plus amortization of customer contracts…
Antero Midstream Non-GAAP Measures The following table reconciles consolidated total debt to consolidated net debt (Net Debt) as used in this presentation (in thousands): December 31, 2019 Bank credit facility 959,500 5.375% senior…
Antero Midstream Non-GAAP Reconciliation The following reconciles net income to Adjusted EBITDA: 2014 in Thousands G&C Only 2014 2015 2016 2017 Net income 16,832 127,875 159,105 236,703 307,315 Interest expense, net 4,620 6,183 8,158…
Antero Midstream Non-GAAP Measures Antero Midstream has not included a reconciliation of Adjusted EBITDA, Adjusted Net Income, Free Cash Flow or Distributable Cash Flow to the nearest GAAP financial measure for 2020 because it cannot do…
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