J.P. Morgan 2021 Energy, Power and Renewables Conference June 22, 2021
Antero Resources Snapshot Denver, CO Antero Resources Acreage Map HEADQUARTERS Antero Marcellus Rig Industry Marcellus Rig 6.7 B Industry Utica Rig Antero Acreage ENTERPRISE VALUE (1) SW Marcellus Core Ohio Utica Core 4th…
The Antero Investment Opportunity Antero is positioned to deliver peer-leading Free Cash Flow, with a rapidly declining leverage profile in 2021 1 Scale and 2nd Largest NGL Producer in the U.S. Operating 4th Largest Natural Gas…
1 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…
1 Best Exposure to Rising Commodity Prices Anteros differentiated business model provides the cleanest upside to increasing commodity prices Leverage to Liquids Pricing Flow Nymex Price Upside Assurance Increase Peer 1 Peer…
2 Enhanced Free Cash Flow Profile Antero expects to generate over 2.0 B of Free Cash Flow through 2025 pro forma for the Drilling Partnership and 5-year backwardated strip pricing Free Cash Flow (Before Changes in Working Capital)…
Much Improved Senior Note Term Structure Unsecured Debt Maturity Summary Antero has now eliminated or termed out 2.85 B of bond maturities in 2021-2023, with the next maturity not until March 2025 AR 9/30/19 Senior Note Maturity…
2 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 600+ MM of estimated 2021 Free Cash Flow (1)…
2 Peer Leading Premium Core Drilling Inventory Anteros technical and management teams have performed an extensive update on acreage positions, undrilled locations, well performance and EURs across the basin Led to division of the SW…
3 Well Positioned Financially vs Appalachian Peers Total Net Debt (MM) Net Debt / LTM EBITDAX (as of 3/31/2021) 6,000 5.0x 4.6x 5,000 4,765 4.0x 3.3x 4,000 2.9x 3,034 3,055 3.0x 2.6x 3,000 2,569 2.0x 2,333 2.0x 2,000 1.1x…
2 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 Natural Gas Producers Have the Lowest Emissions Natural gas producers are best positioned relative to oil producers with the lowest GHG emissions 2020 Antero vs 2019 Industry GHG Emission Intensity(1) 60 Antero 50 Oil Producer…
AR Business Strategy Antero Resources Principles Priorities Build Scale with Natural Gas & Liquids Balance capital spending Diversification within cash flow Maintain Maintain liquidity & strengthen Strong Deliver balance sheet…
Drilling & Completion Efficiencies Average Lateral Length per Well Lateral Drilling Feet per Day 18,000 14,000 16,320 12,118 16,000 12,000 Achieved February 2021 New Achieved March 2020 14,000 12,539 12,839 10,000 U.S.…
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…
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) (1)…
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…
Strong Natural Gas and NGL Price Momentum Natural gas and NGL prices have strengthened as global demand continues to increase while supply flattens Propane storage levels near five year lows provide a bullish set up for winter…
U.S. NGL Production vs. LPG Export Reduced drilling & completion activity in the U.S. has flattened NGL supply growth, while LPG exports increased 17% in 2020 Supply in 2H 2021 forecast to stay home offsetting historically low…
Propane Market Fundamentals A record setting level of withdrawals via LPG exports has led to low propane inventories in the U.S. and only 26 days of supply, 25% below the 5-year average U.S. Propane Inventories (MMBbls) Propane Days…
NGL Price Strength NGL prices remain elevated on an absolute basis and relative to WTI due to sufficient export capacity and resilient global demand AR Monthly Realized C3+ NGL Price /Bbl AR C3+ Realized Price (/Bbl) WTI Price % of…
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 / 4th Largest natural gas producer…
Corporate Presentation Executive Summary Asset Overview Natural Gas & NGL Macro Antero Midstream Overview Appendix 28
Premier Northeast Infrastructure Platform
Antero Midstream Corporation at a Glance Denver, CO Antero Midstream Asset Map HEADQUARTERS S&P 400 CONSTITUENT 8.0 Bn ENTERPRISE VALUE (1) 14% ROIC AVERAGE FROM 2015-2020 Sherwood and Smithburg 3.2 Bcf/d…
Antero Midstream Outlook Summary AR Maintenance AR + Drilling Capital Program Partnership % Change Annual Adjusted EBITDA 0% to 1% Growth through 2025 1% to 4% +3% Organic Project Backlog 875 - 975 through 2025 (MM) 1,050 -…
Uniquely Positioned Midstream Entity AMs is a unique self-funding midstream C-Corp with long-term growth, Free Cash Flow after dividends, declining leverage and a strong balance sheet C-Corp Structure Volume & Adjusted EBITDA…
4 Generating Significant Free Cash Flow AMs legacy midstream infrastructure and flexible capital budget with no long lead-time projects allows it to generate significant free cash flow Free Cash Flow Before Dividends (MM) 1,000 2.6…
Antero Midstream Investment Thesis Well positioned natural gas and NGL producer with scale and sustainable business model 100% fixed fee business with no direct commodity price exposure Peer leading leverage profile of 3.7x…
Corporate Presentation Executive Summary Drilling Partnership Formed Natural Gas & NGL Macro Antero Midstream Overview Appendix 35
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 2.67 NYMEX WTI Oil Price…
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…
Leading Sustainability and ESG Metrics GHG Emissions Social Antero has zero flaring of produced gas, one of the lowest GHG 33% of Independent Directors are intensity metrics in the industry (upstream independents and majors) and…
Natural Gas and NGLs Are Essential Antero plays a critical role in producing reliable energy for consumers 3 Largest U.S. 2 Largest U.S. Natural Gas NGL Producer Producer Natural Gas Natural Gas Liquids (NGLs) Natural gas is a…
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…
Natural Gas Liquids Hedging Update Antero has added C3+ NGL hedges for the summer of 2021 to protect against seasonal weakness and potential near-term changes in the COVID-19 recovery Antero C3+ NGL Hedge Profile (Excludes Oil and…
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 Antero NYMEX Swap Price…
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…
Antero Resources Adjusted EBITDAX Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve Months Ended March 31, 2021 Reconciliation of net loss to Adjusted EBITDAX: Net income loss and comprehensive income loss attributable to…
Antero Resources Adjusted EBITDAX Reconciliation Three Months Ended, 12/31/2020 3/31/2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero Resources Corporation 69,830 (15,499)…
Free Cash Flow Reconciliation Working capital adjustments in 2021 include 60.5 million in changes in current assets and liabilities and 35.9 million in accounts payable and accrued liabilities for additions to property and…
Total Debt to Net Debt Reconciliation Total Debt to Net Debt Reconciliation December 31, March 31, 2020 2021 AR bank credit facility 1,017,000 143,200 5.125% AR senior notes due 2022 660,516 5.625% AR senior notes due 2023 574,182…
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 (loss) plus amortization of customer…
Antero Midstream Non-GAAP Measures Antero Midstream has not included a reconciliation of Adjusted EBITDA, Free Cash Flow, Net Debt or Return on Invested Capital to the nearest GAAP financial measure for 2021 because it cannot do so…
Antero Midstream Non-GAAP Measures The following table reconciles net income to Adjusted EBITDA and Free Cash Flow: in Millions 2014 2015 2016 2017 2018 2019 2020 Net Income (Loss) 127,875 159,105 236,703 307,315 312,894 (284,896)…
Antero Midstream Non-GAAP Measures The following table reconciles net income to return on invested capital: in Millions 2014 2015 2016 2017 2018 2019 2020 Net income 127,900 159,100 236,700 310,700 312,894 (284,896) (122,527)…
Loading...
