J.P. Morgan Energy, Power & Renewables Conference June 23,2022
Premier Pure-Play Appalachian E&P 12.7 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 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…
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%…
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…
Historically High Power Burn Demand Supportive Fundamentals Despite high natural gas prices, natural gas demand from power burn is at all-time highs, outpacing the 5-year average by 4 Bcf/d in the past two months U.S. Natural Gas…
Natural Gas Remains the Cheapest Fuel Source Supportive Fundamentals Natural gas remains the worlds cheapest fuel source on an energy equivalent basis relative to all other commodities MMBtu Price Equivalents 35 30 25…
China PDH Utilization Rates to Rebound on Re-opening Supportive Fundamentals China LPG demand has been negatively impacted by Covid lockdowns and supply chain constraints. A re-opening is expected to increase demand and support LPG…
China PDH Utilization Rates to Rebound on Re-opening Supportive Fundamentals Propane pricing as a percent to WTI is expected to recover as China re-opens, boosting demand for LPG Propane Price (as % of WTI) 100% 90% Propane at…
China PDH Plant Outlook China is adding approximately 500,000 Bbl/d of petrochemical propane demand in 2H22-2023 Source: Argus. 21
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 23
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…
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.…
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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