Antero Resources Snapshot Denver, CO Antero Resources Acreage Map HEADQUARTERS Antero Marcellus Rig Industry Marcellus Rig 8.8 B Industry Utica Rig Antero Acreage ENTERPRISE VALUE (1) SW Marcellus Core Ohio Utica Core 4th…
Antero Family at a Glance 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Water Delivery & Blending 4
Recent Credit Enhancements Received corporate ratings upgrades from Moodys and S&P Global to Ba2 and BB, respectively (10/6/21 - 10/8/21) Extended credit facility to 2026, with a borrowing base increase to 3.5 B and lender…
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 Supportive 5 Commodity…
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) 2,000…
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 9/30/2021)…
2 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…
2 Enhanced Free Cash Flow Profile Antero expects to generate over 6.0 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 10/25/2021 Strip…
2 Well Positioned Financially vs Appalachian Peers Appalachian Leading YTD 2021 Free Cash Flow(1) (MM) 700 612 600 500 400 324 300 200 143 123 100 0 (100) (200) (300) (202) AR CNX RRC SWN EQT Drives 600 MM of Absolute…
2 Best Positioned to Return Capital in Appalachia Antero currently has the highest Free Cash Flow to Enterprise Value yield (1) and the most advanced debt reduction program among its Appalachian peers 2021E 2023E Cumulative Corporate…
3 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…
4 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…
4 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…
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)…
5 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 at five year lows provide a bullish set up for winter…
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) Jan-20: Dec-22E: 100.0 94.3 Sep-21:…
5 2021 Supply/Demand Balance Detail The U.S. is forecast to be undersupplied in 2021 with demand outweighing supply by 1.4 Bcf/d This backdrop should continue to support higher NYMEX prices Weather remains a key variable to watch 150…
5 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 16 million barrels in storage, significantly below 5-year minimum storage level…
5 Propane Export Arb Despite the dramatic increase in domestic propane pricing in 2021, the export pricing arb has remained attractive, and has recently reached a yearly high of +6.25 cents per gallon Propane Export Arb (Cents 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 essentially unhedged on its 4Q21 and going forward propane production % Hedged 2022 Total Production and Natural Gas Production (1) % Total…
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…
6 Social Responsibility and Safety Exported approximately 60,000 Bbls/d of LPG in 2020, including approximately one-third to developing nations Paid approximately 375 million in lease and royalty payments to Ohio and West Virginia…
6 Environmental and Sustainability Leadership Total Direct GHG Emissions and Intensity (CO2e) Thousand Metric Tons Tons/MBOE 3.4 Antero has zero routine flaring of 2.7 457 produced gas and one of the lowest 427 2.3 GHG…
6 Governance and Gender Diversity 88% of the Board of Directors are independent 43% of independent directors are female Established ESG Committee of Board of Directors Aligned executive compensation with ESG performance &…
The Antero Investment Opportunity Antero is positioned to deliver sustainable Free Cash Flow, with a peer-leading leverage profile Strong Leverage at 1.6x 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 2021 2021-2025 NYMEX Henry Hub Natural Gas Price (/MMBtu) (1) 3.88 3.75 NYMEX WTI Oil Price (/Bbl) (1) 68.26 68.08 AR Weighted C3+ NGL Price (/Bbl) (1)…
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…
Continued Operational Momentum 2021 D&C 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 900+ MM of estimated 2021 Free Cash Flow (1)…
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…
Drilling & Completion Efficiencies Average Lateral Length per Well Lateral Drilling Feet per Day 20,000 18,998 14,000 12,118 18,000 12,000 Achieved February 2021 New 16,000 U.S. Achieved June 2021 10,000 14,000 12,539…
Natural Gas and NGLs Are Essential Antero plays a critical role in producing reliable energy for consumers 4 Largest U.S. 2 Largest U.S. Natural Gas NGL Producer Producer Natural Gas Natural Gas Liquids (NGLs) Natural gas is a…
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…
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…
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…
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…
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 September 30, 2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero…
Antero Resources Adjusted EBITDAX Reconciliation Three Months Ended September 30, Nine Months Ended September 30, 2020 2021 2020 2021 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to…
Antero Resources Pre-Hedge Adjusted EBITDAX Per Mcfe Pre-Hedge Adjusted EBITDAX per Mcfe Reconciliation Q3 2021 (/Mcfe) Natural gas, oil, ethane and NGL sales 5.15 Distributions from Antero Midstream 0.10 All-In Revenue (Pre-Hedge)…
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, September 30, 2020 2021 Credit Facility 1,017,000 97,500 5.125% senior notes due 2022 660,516 5.625% senior notes due 2023 574,182 5.000%…
Loading...
