Corporate Presentation Antero Resources Executive Summary Natural Gas & NGL Macro Detailed Asset Overview Appendix 3
Antero Family at a Glance 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Water Delivery & Blending 4
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 5th Largest…
Antero Resources Snapshot Lowered 2020 Capital Budget to 750 MM D&C Capital Spending (MM) D&C capital target of 750 million in 2020, a 35% decrease from initial 2020 guidance and a 41% decrease from 2019 1,600 1,490 spending 1,400…
Strategy Aligned with Industry Risks & Reality Energy Industry Realities Commodity Price Risk AR is 97% hedged on natural gas through 2021 at prices 31% above current strip pricing (1) AR firm transport substantially reduces basis…
Antero is a Leader in 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…
Corporate Presentation Antero Resources Executive Overview Natural Gas & NGL Macro Detailed Asset Overview Appendix 9
Natural Gas and NGL Macro Momentum Natural gas and NGL prices should strengthen over the coming quarters as global demand remains resilient while supply declines materially (assuming current oil price strip) For oil and the resulting…
Significant Reduction in Drilling Rigs Since March 6th, the total U.S. rig count has declined by 441 rigs, or 58% NGL production associated with oil shale activity represents 66% of total U.S. NGL production and is expected to decline…
Significant Reduction in Completion Crews Since March 6th, total oil and natural gas completion crews have declined by 258, or 81% U.S. Oil & Gas Drilling Completion Crew Count Since 3/6/2020 Change Since 3/6/20 Current Dry Current…
Material Impact to NGL Production in the U.S. The oil price decline is expected to have an even more pronounced impact on NGL supply where two-thirds of the supply comes from oil shale plays U.S. NGL Production Forecast (MBbl/d) LPG…
NGL Price Recovery Expected Domestic and international LPG prices are improving on a relative basis to crude oil, driven by inelastic global demand from petrochemicals and res/comm Mont Belvieu C3+ NGL Prices & % of WTI (1) FEI…
The Impact of the U.S. Shale Revolution The Shale Revolution dramatically changed the NGL landscape, turning the U.S. into a net exporter after decades of importing NGL products U.S. NGL Production (MBbl/d) (1) U.S. NGL Exports /…
LPG Exports US exports surpassed the entire Middle East region combined in 2019 LPG Exports: US versus Middle East US is the incremental 1400 supplier for growing world demand. 1200 1000 MBbl/d 800 Supply from Middle…
Future U.S. NGL Supply Challenged by Oil Price Decline U.S. shale plays were previously forecast (December 2019) to grow C3+ NGL supply through 2022 by almost 500,000 Bbl/d Now, with a 30 to 40/Bbl oil strip, U.S. C3+ NGL supply is…
Corporate Presentation Antero Resources Executive Overview Natural Gas & NGL Macro Detailed Asset Overview Appendix 18
AR Business Strategy Antero Resources Principles Priorities 1 Build Scale with Balance cash flow with Natural Gas & capital spending Liquids Diversification 2 Maintain liquidity & strengthen balance sheet with leverage target…
1 Balance Cash Flow & Capital - Cost Structure Reset Drilling and completion efficiencies and midstream cost savings result in approximately 600 million of savings in 2020 compared to ARs 2019 initial budget Cost Savings Update 2020…
1 Balance Cash Flow & Capital - Momentum Leads to Lower Capital Through drilling and completion efficiencies, midstream cost savings, service cost deflation and deferral of completions Antero has been able to reduce its D&C capex…
1 Balance Cash Flow & Capital Drilling & Completion Efficiencies Antero continues to achieve material improvements to drilling and completion efficiencies which reduces well costs Average Drilled Lateral Feet per Well Lateral Feet…
1 Balance Cash Flow & Capital - Marcellus Well Cost Reductions Significant Reduction in Well Costs already in-hand Reduced well costs by 26% (3.05 million per well) Marcellus Well Cost per Lateral Foot (January 2019 AFE to Current…
1 Balance Cash Flow & Capital 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)…
1 Balance Cash Flow & Capital Lower Costs Drive Free Cash Flow Profile Cost structure reset results in enhanced free cash flow profile. The 2020 capital plan will remain flexible, targeting 175 MM in free cash flow. AR Free Cash Flow…
2 Strengthen Balance Sheet 2020 Asset Sale Program AR has multiple assets that can be monetized in 2020 to reduce debt, including producing properties, undeveloped leasehold, overriding royalty, minerals, hedges and midstream…
2 Strengthen Balance Sheet - Liquidity & Leverage Antero Resources plans to have substantial capacity to address its November 2021 and December 2022 bond maturities through asset sales and cost and activity reductions AR 2020…
3 Develop Highest ROR Locations - Large Delineated Drilling Inventory AR Resource Overview AR Marcellus Asset Map Large Drilling Inventory Diverse set of locations AR holds 1,400 liquids-rich locations, or 40% of the core undrilled…
3 Develop Highest ROR 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…
3 Develop Highest ROR Locations - Premium NGL Price Realizations Producer Disadvantaged: Producer Advantaged & Unconstrained: E&Ps in Permian, Rockies, Mid-Con & Bakken Antero Resources in Appalachia AR is the largest C3+ producer…
4 Hedge Commodities - Natural Gas Price Exposure Mitigated Through 2021 AR continued its consistent hedging program during 1Q20, adding 688 MMBtu/d to its 2022 hedge position (previously unhedged) at a price of 2.48/MMBtu Antero…
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…
2020 Credit Enhancement Momentum Reduced capital budget and operating cost structure improves free cash flow profile while targeted asset sales, hedge position and scale support debt profile Potential Credit 2019A 2020E…
Antero Long-Term Strategy Producer resiliency is a key attribute for a sustainable development plan: Cost AR has targeted 600 MM in reductions to Reduction 2020 capital and operating expenses Initiatives Asset Sale Substantial…
Corporate Presentation Antero Resources Executive Overview Natural Gas & NGL Macro Detailed Asset Overview Appendix 35
2020 Capital Plan and Guidance Represents Revised Guidance 2020 Guidance Ranges Net Production (Bcfe/d) 3.5 Net Natural Gas Production (Bcf/d) 2.375 Net Liquids Production (Bbl/d) 187,500 Natural Gas Realized Price Expected Premium…
Antero Resources Net Debt & LTM EBITDAX Reconciliation December 31, March 31, 2019 2020 AR bank credit facility 552,000 882,000 5.375% AR senior notes due 2021 952,500 730,283 5.125% AR senior notes due 2022 923,041 761,337 5.625%…
Antero Resources 2019 LTM EBITDAX Reconciliation Twelve months ended (in thousands) December 31, 2019 Net loss and comprehensive loss attributable to Antero Resources Corporation (340,129) Net income and comprehensive income…
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