Antero Resources Snapshot Denver, CO Antero Resources Acreage Map HEADQUARTERS Antero Marcellus Rig Industry Marcellus Rig 5.9 B Industry Utica Rig Antero Acreage ENTERPRISE VALUE (1) SW Marcellus Core Ohio Utica Core 3rd…
Antero Family at a Glance 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Water Delivery & Blending 4
Uniquely Positioned for a Drilling Partnership AR is uniquely positioned to enhance its Free Cash Flow profile with the incremental gross production generated by a drilling partnership, by leveraging its dominant liquids-rich resource…
AR Drilling Partnership Announcement (2/17/2021) Announced Drilling Partnership With QL Capital Partners (QL), an Affiliate of Quantum Energy Partners Entered into Drilling Partnership to fund drilling of 60 incremental wells between…
Drilling Partnership Development Plan Breakdown The preliminary Drilling Partnership development plan (1) is primarily focused on Marcellus liquids-rich development with 88% of the total completions in the Marcellus and 95% of the…
Free Cash Flow Enhancement 2021 - 2025 Through the Drilling Partnership, Antero expects to increase its forecasted 2021 2025 Free Cash Flow by 400 MM Net Marketing Midstream Fee Drilling Carry Interest Expense Free Cash Flow…
Partner Production Helps Fill ARs Unutilized FT The development plan for the Drilling Partnership was designed to help fill Anteros unutilized premium firm transportation capacity over the next several years As a result of the…
Growth Incentive Program Capture The gross production forecast pro forma for the Drilling Partnership results in 88 MM of AM fee rebates through 2023, an incremental 76 MM of fee rebates relative to the Base development plan Low…
Creative Financing With Outstanding Counterparties Over the past 12 months, Antero has raised over 1.1 B of committed capital in three transactions with outstanding counterparties Date of Principal Transaction Capital Commitment…
Much Improved Senior Note Term Structure Unsecured Debt Maturity Summary (Pro forma for redemption of remaining 2022s and convert equitization): Eliminated 2.3 B of near term maturities: 1.3 B of open market repurchases and tenders,…
Significant Leverage Reduction Through a combination of senior note offering proceeds, Free Cash Flow and the ORRI contingent payment, AR is expected to reduce leverage below 2x by year end 2021 AR Pro Forma Year-End 2021E Credit…
Enhanced Free Cash Flow Profile Antero expects to generate over 1.5 B of Free Cash Flow through 2025 pro forma for the Drilling Partnership Free Cash Flow (Before Changes in Working Capital) (MM) 5-Year Cumulative 2021E 2025E Free…
Continued Operational Momentum 2021 Capital Guidance of 590 MM (net to Antero) Announced 2021 drilling and completion guidance of 590 MM in 2021, a 20% decrease from 2020 spending 500 MM of estimated 2021 Free Cash Flow (1) Reduced…
Significant Commodity Price Leverage As one of the largest natural gas and NGL producers in the U.S., Antero has significant cash flow upside in a rising commodity price environment Top 5 U.S. Natural Gas Producers (MMcf/d) Top 5 U.S.…
Strong Natural Gas and NGL Price Momentum Natural gas and NGL prices have strengthened as global demand continues to increase while supply flattens. A cold winter in Asia has provided further support to natural gas and NGL prices U.S.…
Strategy Aligned with Industry Risks & Reality Energy Industry Realities Commodity Price Risk Opportunistically Hedge Commodities 93% hedged on natural gas through 2021 at 2.77/MMBtu (1) Utilize Firm Transport - substantially reduces…
AR Business Strategy Antero Resources Principles Priorities 1 Build Scale with Natural Gas & Liquids Balance capital spending Diversification within cash flow 2 Maintain Maintain liquidity & strengthen Strong Deliver balance…
1 Drilling & Completion Efficiencies Average Lateral Length per Well Lateral Drilling Feet per Day 18,000 12,000 11,253 16,320 16,000 New 10,000 Achieved March 2020 14,000 12,539 13,100 U.S. Achieved June 2020 12,000…
Balance Capex with Cash Flow Low Maintenance Capital Antero Average Development Well 3,600 Net Production Rate: 3.4 Bcfe/d Avg. Lateral Length per Well 13,000 3,400 Bcfe/1,000 2.70 3,200 Replacement Volume 198 Bcfe 16% of 2022…
2 Strong Liquidity Outlook Through a combination of senior note offering proceeds, Free Cash Flow, the litigation proceeds and the ORRI contingent payment, AR is expected to have almost 2 B of liquidity by year-end 2021 AR Pro Forma…
3 Peer Leading Premium Core Drilling Inventory Southwest Marcellus Core Inventory SW Appalachia Core Anteros technical and management team have done an extensive update on acreage positions, undrilled locations, well performance and…
3 Develop Highest ROR Locations AR Resource Overview AR Marcellus Asset Map Large Delineated Drilling Inventory Diverse set of locations AR holds 1,130 liquids-rich locations, or 38% of the core undrilled liquids-rich locations in…
3 Focus on Liquids Rich Drilling Antero currently recovers only 30% of the ethane in its rich gas stream while rejecting 70% of the ethane, sending it to pipeline sales in the natural gas stream Antero NGL Barrel Composition (2021…
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 NGL Price Strength NGL prices have risen on an absolute basis and relative to WTI since March/April lows due to resilient global demand AR Monthly Realized C3+ NGL Price /Bbl AR C3+ Realized Price (/Bbl) WTI Price % of WTI…
3 Attractive Breakeven Well Economics Antero has some of the lowest natural gas breakeven prices in Appalachia as highlighted in a recent JP Morgan research report Breakeven gas prices for rich gas producers like AR are actually lower…
4 Hedge Commodities - Natural Gas Price Exposure Mitigated Through 2022 Antero is very well hedged on its forecast natural gas production through 2022 Antero Natural Gas Hedge Profile (1) (1) (BBtu/d) Antero Swap Volumes NYMEX…
4 Firm Transport A Competitive Advantage FT Destination Atlantic Seaboard 8% TCO Pool 9% Regional 13% Gulf Coast 51% Midwest 19% 34
4 FT Protects Basis and Provides Flow Assurance ARs firm transportation portfolio provides price stability, production flow assurance, and premium pricing vs. Appalachia-dependent producers Antero Basis vs. Appalachia Basis (/Mcf)…
4 Appalachian Takeaway Capacity is a Strategic Advantage Differential With uncertainty on future pipeline projects in Appalachia, Antero is one of the few natural gas to NYMEX producers in Appalachia that can take advantage of rising…
Material Impact to NGL Production in the U.S. The drilling and completion activity decline is expected to have a pronounced negative impact on U.S. NGL supply, 68% of which comes from shale oil plays U.S. C2+ NGL Production Forecast…
Propane Market Fundamentals A record setting level of withdrawals via LPG exports has led to low propane inventories in the U.S. and only 15.4 days of supply, 34% below the 5-year average U.S. Propane Inventories (MMBbls) Propane…
Strong NGL Price Recovery Domestic and international LPG prices have improved 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…
Key Investment Highlights Antero is well positioned for both the commodity price outlook and energy transition as a large scale, low cost natural gas and NGL producer with strong ESG metrics Scale / 3rd Largest natural gas producer…
Antero Guidance and Long-Term Target Assumptions Long-term Outlook Assumptions (Consistent in 2021 2021-2025 both Base Plan and Drilling Partnership plans) NYMEX Henry Hub Natural Gas Price (/MMBtu) (1) 2.90 2.65 NYMEX WTI Oil Price…
Balance Capex with Cash Flow - Marcellus Well Cost Reductions Significant Reduction in Well Costs already in-hand Reduced well costs by 34% (4.0 million per well) Marcellus Well Cost Reductions (January 2019 AFE to Current 2020)…
Global LPG Trade Arb Improvement LPG export arbs have widened to their highest levels since Antero began exporting in early 2019, providing strong realized NGL pricing for Antero Propane International Arbs to Mont Belvieu Butane…
Natural Gas Liquids Primer NGLs play an essential role in the domestic and international industrial, residential, commercial and transportation industries Gas Linked Pricing Crude Linked Pricing Iso- Methane Ethane Propane Butane…
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 with the most international…
Significant Reduction in Drilling Rigs Since March 6th, the total U.S. rig count has declined by 388 rigs, or 51%, and oil focused rig count has declined by 55% NGL production associated with shale oil activity represents 68% of total…
Significant Reduction in Completion Crews Since March 6th, U.S. completion spread count has declined by 150 crews, or 47%, and oil focused completion crew count has declined by 51% U.S. Oil & Gas Drilling Completion Crew Count Since…
Antero Resources Adjusted EBITDAX Reconciliation LTM Adjusted EBITDAX Reconciliation Year Ended December 31, (in thousands) 2020 Reconciliation of net income (loss) to Adjusted EBITDAX: Net income (loss) and comprehensive income (loss)…
Total Debt to Net Debt Reconciliation Total Debt to Net Debt Reconciliation December 31, 2020 AR bank credit facility 1,017,000 5.375% AR senior notes due 2021 5.125% AR senior notes due 2022 660,516 5.625% AR senior notes due 2023…
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