Premier Pure-Play Appalachian E&P 13.1 Bn Ohio Utica Shale West Virginia Marcellus Shale ENTERPRISE VALUE (1) 5th Largest U.S. GAS PRODUCER (2) Headquarters: 2nd Largest Denver, CO U.S. NGL PRODUCER (2) 20+ Years OF…
Antero Family at a Glance 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Water Delivery & Blending 4
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)…
2014 vs Now - Why This Cycle is Different for Antero Scale & Diversity Balance Sheet Average Liquids & Total Production Net Debt (MM) & Leverage (1) 200,000 Liquids Production (Bbl/d) Net Debt Leverage 160,000 1Q22 +215%…
Why Antero Resources Antero is well positioned with a strong balance sheet and a business model that can generate substantial, sustainable free cash flow Balance Sheet Deep drilling Supportive Strength Inventory Fundamentals…
Strong and Sustainable Balance Sheet Balance Sheet Strength Balance Sheet AR Debt Term Structure (Pro Forma 3/31/2022) (1) Enhancements 1,400 Called Remaining 2025s CALLED NO 1,200 (3/1/2022) 585 MM NEAR-TERM Revolver…
Significant Debt Reduction Balance Sheet Strength Antero Resources Total Debt Since 12/31/19 4,000 3,759 1.8 Bn 3,500 (757) 3,002 3,000 ABSOLUTE DEBT REDUCTION SINCE YE 2019 2,500 (876) 2,125 1,960 2,000 (166) 1,500…
Strongest Balance Sheet in Appalachia Balance Sheet Strength Appalachian Peer Net Debt (1) 1 6.0 4.9 5.0 5.0 4.0 < 2.0 Bn 3.0 2.0 < 2.0 2.2 2.5 NET DEBT: LOWEST AMONG 1.0 APPALACHIAN PEERS 0.0 AR Peer 1 Peer 2 Peer 3…
Increased Free Cash Flow Profile Sustainable Free Cash Flow Free Cash Flow (MM) (1) 12.0 5-Year Avg. Strip Through YE 2026 10.0 Bn 10.0 TARGETED FREE CASH FLOW NYMEX: 4.65/MMBtu 10.0 THROUGH 2026, 90% OF WTI: 80.50/Bbl…
Leading Commodity Price Exposure Sustainable Return of Capital % Hedged 2Q22 4Q22 (1) % Hedged 2023 (1) % Total Production Hedged % Total Production Hedged % Natural Gas Production Hedged % Natural Gas Production Hedged 100%…
Return of Capital Why Share Buybacks Sustainable Return of Capital 2022E Free Cash Flow / Market Cap (1) 2022E EV/ EBITDAX 14.9x 25% 6.5x 5.7x 20% 5.5x 5.2x 20% 4.7x 17% 4.1x 15% 15% 4.5x 3.9x 3.9x 15% 3.5x 11% 10% 10%…
AR: Lowest Leverage, Highest Return - Major-Like Metrics Sustainable Return of Capital Cash Return (1) vs. Leverage (2) High Return 10% 1.1x Leverage / 10% Cash Return 9% Peer 1 8% Cash Return as % of Market Cap…
Peer Leading Premium Core Drilling Inventory Deep Drilling Inventory Premium Core Marcellus Inventory Southwest Appalachia Core 33% AR HOLDS 1,550 UNDEVELOPED Utica Core LOCATIONS, OR 33% OF TOTAL 38% AR HOLDS 925…
ARs Peer-Leading Exposure to LNG Fairways Optimal Takeaway LNG Access & Exposure Firm Transport to LNG Fairway Antero Firm Transportation 2.5 2.3 Antero Total = 2.3 Bcf/d 2.0 1.5 1.5 1.0 0.9 1.0 0.5 0.0 0.0 AR SWN EQT RRC…
Antero Has the Firm Transport to Supply LNG Demand Optimal Takeaway 2.3 Bcf/d ANTERO FIRM TRANSPORT ACCESSES THE LNG FAIRWAY (1) 26 Bcf/d TOTAL LNG CAPACITY ACCESSIBLE BY ANTEROS FIRM TRANSPORT, 11 Bcf/d IN-SERVICE 15…
Diversity of Product & Destination Optimal Takeaway Liquids Production (1) & Realized Pricing Natural Gas Takeaway & Realized Pricing (2) Liquids Production 2022 Guidance (MBbl/d) Percent Sold Out of Basin (2022E) 200 180 120%…
Structurally Higher Prices Ahead Supportive Fundamentals NYMEX Natural Gas Price and Gas Storage Surplus/Deficit vs. 5-year Avg. 1,000 Storage vs. Previous 5-Year Average Henry Hub Spot Price (/MMBtu) 8.00 800 Storage surplus…
Working Gas in Storage Supportive Fundamentals 2022 Working Gas in Storage Forecast (Bcf) Remainder of 2022 Assumptions Implied Average Production BEGINNING TODAY LNG Feedgas: 13.0 Bcf/d Required to Reach 3.5 Tcf Storage 4,250…
Natural Gas Remains Essential in Energy Transition Supportive Fundamentals Natural gas and renewables displace coal and oil in the global energy transition as demand increases for low carbon energy sources U.S. Electricity…
NGL Price Strength Supportive Fundamentals Antero continues to benefit from the strength in NGL prices AR Monthly Realized C3+ NGL Price (/Bbl) 120 WTI Price 100% 67.02/Bbl 90% 100 % of WTI 80% CURRENT AR C3+ NGL 70% 80…
ESG Momentum Continues ESG Leader ESG Progress Project Canary 2020 ESG Report (February 2022): (October 2021): RECEIVED RESPONSIBLY SOURCED REPORT IS EXPECTED TO DRIVE GAS CERTIFICATION FURTHER RATINGS UPSIDE MSCI UPGRADE…
Scope 1 Net Zero ESG Leader AR removed or converted 6,000 pneumatic devices in 2021, a 76% reduction Pneumatic Devices Replacement 9,000 8,000 76% 7,000 OF PNEUMATIC DEVICES REPLACED TO DATE 6,000 5,000 4,000 3,000…
Appalachia Responsible for CO2 Emission Reductions ESG Leader The natural gas supply growth from Appalachia has powered coal to gas switching, driving declining CO2 emissions in the U.S. since 2005 U.S. CO2 Emissions (Billion…
ARs Role in Supporting Global Energy Access ESG Leader In 2020, 20 MBbl/d of ARs LPG was shipped to developing countries Antero LPG Cargo Destinations & Uses Industrial & Electricity Generation Recyclable food packaging…
Industry-Leader in ESG ESG Leader Wells Fargo ESG Scorecard - 2021 Environmental Social Governance 2nd of 27 WELLS FARGO EQT 73.4 AR 71.4 ESG SCORECARD RANKING RRC 71 FANG 66 CNX 65 CHK 64 SWN 64 SM 64 EOG 61 Top 5…
Antero Investment Highlights BALANCE SHEET STRENGTH AND FLEXIBILITY SCALE & DIVERSIFIED PRODUCT MIX DIRECT EXPOSURE TO RISING GLOBAL DEMAND SUSTAINABLE BUSINESS MODEL INDUSTRY-LEADING ESG METRICS 28
Appendix
2022 Capital Plan and Guidance 2022 Guidance Ranges Net Production (Bcfe/d) 3.2 3.3 Net Natural Gas Production (Bcf/d) 2.2 2.25 Net Liquids Production (Bbl/d) 175,000 185,000 Natural Gas Realized Price Expected Premium to 0.15…
Antero Guidance and Long-Term Target Assumptions Long-term Outlook Assumptions 2022 2022-2026 NYMEX Henry Hub Natural Gas Price (/MMBtu) (1) 6.40 4.65 NYMEX WTI Oil Price (/Bbl) (1) 99.00 80.50 AR Weighted C3+ NGL Price (/Bbl) (1)…
2022 Activity Summary Well Completions 65% of well 60-65 Net Wells Completed 50 completions in 2H 2022 45 40 35 13,800 Average Lateral 30 25 20 15 1255 Average BTU 10 5 0 1H 2022 2H 2022 Production (Bcfe/d) 3.5 3.2 3.3…
Natural Gas and NGLs Are Essential Antero plays a critical role in producing reliable energy for consumers 5 Largest U.S. 2 Largest U.S. Natural Gas NGL Producer Producer Natural Gas Natural Gas Liquids (NGLs) Natural gas is a…
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.…
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)…
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…
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…
Antero Resources Adjusted EBITDAX Reconciliation Twelve Months Ended Year ended Then December 31, Now March 31, 2014 2022 Reconciliation of net loss to Adjusted EBITDAX: Reconciliation of net loss to Adjusted EBITDAX: Net income…
Free Cash Flow Reconciliation Then Year Ended December 31, 2014 Net cash provided by operating activities 998,121 Less: Net cash used in investing activities (4,089,650) Free Cash Flow (3,091,529) Changes in Working Capital 17,805…
Total Debt to Net Debt Reconciliation Then Now December 31, March 31, 2014 2022 Credit Facility 1,730,000 387,700 7.250% senior notes due 2019 6.000% senior notes due 2020 525,000 5.375% senior notes due 2021 1,000,000 5.125%…
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