Barclays CEO Energy-Power Conference September 2021
Antero Family at a Glance 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Water Delivery & Blending 3
Antero Resources Snapshot Denver, CO Antero Resources Acreage Map HEADQUARTERS Antero Marcellus Rig Industry Marcellus Rig 7.7 B Industry Utica Rig Antero Acreage ENTERPRISE VALUE (1) SW Marcellus Core Ohio Utica Core 4th…
Antero Strategy Evolution Anteros business strategy has evolved to match the U.S. shale industry life cycle AR Net Production (Right Axis) & Capital Investment (Left Axis) (MMs) (1) (MMcfe/d) We are 3,500 Production (MMcfe/d)…
Positioned for Success in Shale 3.0 World Antero is well positioned with a strong balance sheet and differentiated operating leverage to higher commodity prices Peer-leading 6 ESG Performance Sustainable 5 Development and Free…
1 Peer Leading Debt & Leverage Reduction Sustainable long-term leverage reduction is achieved only through absolute debt reduction, not just EBITDA expansion in a commodity price upswing Year-over-Year Change in Total Debt (1) 1,000…
1 Strong and Sustainable Balance Sheet AR has no near-term senior note maturities and has reset debt levels to insulate leverage against a downside commodity price scenario Antero Resources Debt Term Structure (Pro Forma 6/30/2021)…
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 Right-Sizing Firm Takeaway Commitments ARs under-utilized firm transportation commitments are expected to decline by over 1.0 Bcf/d by year-end 2025, resulting in a 100+ MM reduction in annualized net marketing expense and an…
3 Diversity of Product & Destination Anteros liquids-rich strategy and diversified firm transportation portfolio allows it to capture commodity price upside both domestically and internationally Leader in Liquids Production Leader in…
3 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 Propane Market Fundamentals A repeat of the same weekly withdrawals as last winter would result in the U.S. ending withdrawal season with only about 12 million barrels in storage, significantly below 5-year minimum storage level…
5 Natural Gas Fundamentals Are Strong U.S. production growth has meaningfully slowed and exports have increased dramatically compared to 2018 U.S. Dry Natural Gas Production Lower 48 (Bcf/d) +0.1 Bcf/d per month 100.0 +0.5 Bcf/d per…
5 Strategy Transition For Commodity Price Exposure ARs significant scale, strong balance sheet, commodity product diversity and development program flexibility allows AR to capture commodity price upside AR Hedges as a % of Guided…
5 Peer Hedging Comparison Antero has not added any natural gas hedges in 18 months and is unhedged on its 4Q21 and going forward liquids production % Hedged 2022 Total Production and Natural Gas Production (1) % Total Production…
5 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…
5 Enhanced Free Cash Flow Profile Antero expects to generate over 3.5 B of Free Cash Flow through 2025 Free Cash Flow (Before Changes in Working Capital) (MM) 2021E 2025E Free Cash Flow: Free Cash Flow Outspend 07/22/2021 Strip…
6 ESG Momentum Continues Anteros peer-leading ESG ranking reflects the internal efforts to prioritize ESG performance and disclosures 2025 Goals Progress World Bank Zero Routine Flaring Initiative (1): COMMITMENT TO NO ROUTINE…
The Antero Investment Opportunity Antero is positioned to deliver sustainable Free Cash Flow, with a peer-leading leverage profile Strong Leverage at 1.7x and targeting below 1.5x at YE 2021 (1) Balance Absolute debt reduction of…
Appendix
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) 3.36 2.94 NYMEX WTI Oil Price…
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…
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…
Recent Wells Fargo ESG Ranking Anteros peer leading ESG ranking reflects the Wells Fargo U.S. E&P internal efforts to prioritize ESG performance ESG Scorecard and disclosures Wells Fargo ESG scorecard report highlights: AR ranked 2 for…
Antero Resources Adjusted EBITDAX Reconciliation LTM Adjusted EBITDAX Reconciliation Twelve Months Ended June 30, 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 Six Months Ended June 30, June 30, 2020 2021 2020 2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero…
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, June 30, 2020 2021 AR bank credit facility 1,017,000 5.125% AR senior notes due 2022 660,516 5.625% AR senior notes due 2023 574,182 5.000%…
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