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…
ORRI Asset Sale / 2Q Debt Repurchases On 6/12/2020 Antero Announced Closing of ORRI Transaction With Sixth Street Partners Antero has entered into an overriding royalty interest (ORRI) transaction with Sixth Street for proceeds of…
Pro Forma Liquidity and Use of ORRI Proceeds With the close of the ORRI transaction, Antero Resources will have substantial capacity to address its November 2021 bond maturity AR Pro Forma 3/31/20 Liquidity Relative to Remaining 2021…
Antero Resources Snapshot Lowered 2020 Capital Budget to 750 MM Revised D&C capital budget of 750 MM in 2020, a 35% D&C Capital Spending (MM) decrease from initial 2020 guidance and a 41% decrease from 1,600 1,490 2019 spending…
Strategy Aligned with Industry Risks & Reality Energy Industry Realities Commodity Price Risk AR is 98% hedged on natural gas through 2021 at prices 20% above current strip pricing (1) AR firm transport substantially reduces basis…
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)…
Corporate Presentation Antero Resources Executive Summary Natural Gas & NGL Macro Detailed Asset Overview Appendix 11
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 502 rigs, or 66% NGL production associated with shale oil activity represents 66% of total U.S. NGL production and is expected to decline…
Significant Reduction in Completion Crews Since March 6th, U.S. completion crew count has declined by 244 crews, or 77% U.S. Oil & Gas Drilling Completion Crew Count Since 3/6/2020 Change Since 3/6/20 Current Dry Current Completion…
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 shale oil 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 35 to 45/Bbl oil strip, U.S. C3+ NGL supply is…
Corporate Presentation Antero Resources Executive Summary Natural Gas & NGL Macro Detailed Asset Overview Appendix 20
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 602 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 reduced its D&C capex budget by 41%…
1 Balance Cash Flow & Capital Low Maintenance Capital Antero Average Development Well 3,600 Avg. Lateral Length per Well 13,000 Net Production Rate: 3.45 Bcfe/d 3,400 Bcfe/1,000 2.71 Replacement Volume 205 Bcfe Wellhead Gas BTU…
1 Balance Cash Flow & Capital Drilling & Completion Efficiencies Antero continues to achieve material improvements to drilling and completion efficiencies which reduce 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 45% in 2020 (90 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 190 MM in Free Cash Flow. AR Free Cash Flow…
2 Strengthen Balance Sheet 2020 Asset Sale Program AR has additional assets that can be monetized in 2020 to further reduce debt Asset Monetization Opportunity Set Targeting 750 MM to 1 B E&P Assets Financial / Midstream Assets…
2 Strengthen Balance Sheet - Liquidity & Leverage Affirmation of the bank borrowing base above 2.64 B in lender commitments plus the execution of the 402 MM asset sale positions Antero to address upcoming bond maturities 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…
3 Develop Highest ROR Locations - NGL Price Recovery NGL prices have risen on an absolute basis and relative to WTI since March/April lows AR Monthly Realized C3+ NGL Price /Bbl AR C3+ Realized Price (/Bbl) WTI Price % of WTI 70…
3 Develop Highest ROR Locations Attractive Well Economics Post ORRI transaction, Anteros average half cycle rate of return for its 2020 and 2021 development program is 41% Antero Half Cycle Well Economics by BTU Regime (2020 + 2021…
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 asset sales, hedge position and scale support debt profile Potential Credit 2019A 2020E Enhancement D&C…
Antero Long-Term Strategy Producer resiliency is a key attribute for a sustainable development plan: Cost AR has budgeted 602 MM in reductions to Reduction 2020 capital and operating expenses Initiatives Asset Sale 502 MM (1) of…
Corporate Presentation Antero Resources Executive Summary Natural Gas & NGL Macro Detailed Asset Overview Appendix 40
2020 Capital Plan and Guidance Represents Revised Guidance Variance From 2020 Guidance Ranges Previous Guidance Net Production (Bcfe/d) 3.45 (0.05) Net Natural Gas Production (Bcf/d) 2.310 (0.08) Net Liquids Production (Bbl/d)…
Antero Resources Net Debt & LTM EBITDAX Reconciliation December 31, March 31, (in thousands) 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…
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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