Second Quarter 2020 Earnings Call Presentation JULY 30, 2020
Cost Reduction Momentum Drilling and completion efficiencies and midstream cost savings are expected to result in approximately 616 million of savings in 2020 compared to ARs 2019 initial budget Cost Savings Update 2020 Savings (1)…
Marcellus Well Cost Reductions Significant Reduction in Well Costs already in-hand Reduced well costs by 30% (3.5 million per well) Marcellus Well Cost Reductions (January 2019 AFE to Current 2020) (MM) Assumes 12,000 foot…
Marcellus Drilling and Completion Efficiencies Lateral Drilling Feet per Day Drilling Days Spud to Spud 12,000 11,253 35.0 10,000 New 30.0 U.S. 8,000 Record 25.0 6,126 5,934 20.0 6,000 15.0 4,000 11.4 10.4 10.0 8.0 2,000…
Outstanding Drilling Efficiencies Antero has continued to push the limits with respect to lateral feet drilled in a 24 hour period Antero Top 20 Lateral Footage Days Current U.S. Record 11,253 10,622 10,567 10,453 10,067 9,925…
Efficiency and Cost 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%…
Material Impact to NGL Production in the U.S. The oil price decline is expected to have a pronounced impact on NGL supply where two-thirds of the supply comes from shale oil plays U.S. NGL Production Forecast (MBbl/d) LPG Export…
NGL Price Recovery Expected Domestic and international LPG prices are improving on a relative basis to crude oil, driven by resilient global demand for LPG from petrochemicals and res/comm C3+ NGL Prices & % of WTI (1) Far East Index…
NGL Pricing Outlook Limited liquidity in the futures market for C3+ NGL products often does not capture anticipated value further out in the curve A bottoms-up analysis of supply/demand fundamentals suggests NGL prices have…
Northeast LPG Supply & Demand Northeast LPG markets became oversupplied in 2015 and were forced to transport via rail, which was relieved by Mariner East 2 in early 2019 The Northeast is now long LPG pipeline takeaway capacity with…
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 derived…
Significant Reduction in Drilling Rigs Since March 6th, the total U.S. rig count has declined by 526 rigs, or 69% 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 237 crews, or 75% U.S. Oil & Gas Drilling Completion Crew Count Since 3/6/2020 Change Since 3/6/20 Current Dry Current Completion…
Asset Sale Program Update In December 2019, AR announced plans to target 750 MM 1 B of asset sales to enhance its liquidity and reduce total debt. The components are: 1. AM Share Sales - 100 MM completed in December 2019 2. 402 MM…
Asset Monetization Opportunity Set AR entered the year with multiple assets that could be monetized to address maturities and reduce debt, including producing properties, undeveloped leasehold, overriding royalty, minerals, hedges and…
Substantial Liquidity Enhancements 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 Liquidity Outlook…
Antero Long-Term Strategy Producer strength is a key attribute for a sustainable development plan: Cost AR has targeted 616 MM in reductions to Reduction 2020 capital and operating expenses Initiatives Asset Sale AR has closed…
Appendix MPLX Hopedale, OH Fractionation Complex
AR Bond Repurchase Update In total, Antero has repurchased 497 MM notional amount of its 2021s and 344 MM notional amount of its 2022s in the open market at an 18% weighted average discount Senior Notes Due November 2021 Senior Notes…
Enhanced Natural Gas Hedge Position AR monetized 100 BBtu/d of its 2021 hedges for proceeds of 29 million, attributable to the volumes included in the recently announced ORRI transaction Antero Natural Gas Hedge Profile (1) (1)…
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