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MARCH 2014 COMPANY OVERVIEW – Antero Resources

Antero Resources · Mar 1, 2014 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 1
    Company Overview March 2014
  2. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 2
    ANTERO: A PURE PLAY ON THE MARCELLUS / UTICA Marcellus is the largest gas field in the U.S., 2nd largest in the world Industry production approximately 14 Bcf/d today Critical Mass In Two Antero has 35 Tcfe of fully engineered and…
  3. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 3
    PREMIER UNCONVENTIONAL RESOURCE PLATFORM TOTAL 12/31/13 RESERVES(1) A MARCELLUS SHALE Pure-Play Appalachian-Focused Shale Company Assumes Ethane Rejection Net Proved Reserves(1) 7.2 Tcfe 100% operated Net Proved Reserves(1) 7.6 Tcfe…
  4. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 4
    STRONG TRACK RECORD OF GROWTH AVERAGE NET DAILY PRODUCTION (MMcfe/d) APPALACHIAN PRODUCTION (MMcfe/d) Woodford Piceance Marcellus Utica Marcellus Utica 1,000 950 1,000 950 800 Sold Woodford 800 and Piceance 600 522 600 522 400…
  5. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 5
    OUTSTANDING RESERVE GROWTH PROVED RESERVE GROWTH(1) 2013 RESERVE UPDATE Proved PV-10 increased 133% to 7.0 billion (including (Tcfe) hedges) 10 Drivers Successful 3P PV-10 increased 82% to 21.4 billion (including hedges) 7.6 8…
  6. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 6
    MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW-RISK, HIGH-RETURN GROWTH PROFILE MARCELLUS SSL WELL ECONOMICS(1)(2) UTICA WELL ECONOMICS(1) 150% 637 834 890 1000 1,000 200% 205 161 211 250 Total 3P Locations 707 800 182 200…
  7. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 7
    LOW DEVELOPMENT COST DRIVES BEST-IN-CLASS RECYCLE RATIOS 3-Year All-in Development Costs (/Mcfe) through 2012 /Mcfe 4.00 3.00 Antero Appalachia-Focused Peers 2.00 1.71 1.41 1.57 1.03 1.14 1.00 0.00 Source: Proved…
  8. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 8
    MARCELLUS/UTICA ADVANTAGED ECONOMICS Low-cost, liquids-rich Utica and Marcellus Shales will remain attractive in most commodity price environments U.S. INCREMENTAL GAS SUPPLY BREAK-EVEN PRICE CURVE(1) Downside risks to breakeven…
  9. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 9
    INTEGRATED MIDSTREAM PROCESSING AND TAKEAWAY Infrastructure and commitments in place to handle strong Leidy Basis to NYMEX natural gas, NGL and oil production growth Current 2015 Portfolio of firm transportation and sales and West…
  10. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 10
    LONG HAUL PIPELINE AND TRANSPORTATION NETWORK Antero has a leading firm transportation capacity position and is well-positioned in the southern portion of the Marcellus and Utica Shale from a gas takeaway perspective Chicago Leidy…
  11. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 11
    SIGNIFICANT LONG-TERM COMMODITY HEDGE POSITION NATURAL GAS HEDGES 2/24/2014 BBtu/d Hedged Volume Average Index Price (/MMBtu)(1) NYMEX Strip (2/24/2014) (/MMBtu) 800 7.00 4.92 6.00 4.91 4.71 600 4.65 4.46 4.34 5.00 4.85 4.00…
  12. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 12
    ASSET OVERVIEW 12
  13. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 13
    WORLD-CLASS POSITION IN THE CORE OF THE MARCELLUS AND UTICA LIQUIDS-RICH FAIRWAYS ANTERO LIQUIDS-RICH UTICA SHALE Marcellus Utica Shale 106,000 Net Acres Shale Liquids-Rich 18 Horizontals Completed Southwestern Fairway 5 Rigs…
  14. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 14
    WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT Antero Has Delineated And De-Risked Its Large Scale Acreage Position 100% operated DOTSON UNIT MHR WEESE UNIT BLANCHE UNIT 350,000 net acres in 30-Day Rate 30-Day Rate 30-Day Rate…
  15. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 15
    MARCELLUS SIMPLE STRUCTURE Several regional anticlines in core area Predictable layer cake geology No faults at Marcellus level Over 1.7 million feet (315 miles) drilled horizontally without crossing a fault 3-D seismic not…
  16. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 16
    ANTEROS MARCELLUS SHALE TYPE CURVE SUPPORT Antero has over four years of production history to support its 1.5 Bcf/1,000 type curve (non-SSL) Anteros SSL type curve has been increased to 1.73 Bcf/1,000 with only 12% higher well costs…
  17. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 17
    MARCELLUS SINGLE WELL ECONOMICS ASSUMES ETHANE REJECTION Assumptions Marcellus SSL Well Economics and Total Locations(1) 12/31/2013 Strip Pricing & SEC Reserves 150% 890 1,000 NYMEX WTI C3+ NGL(2) 637 834 707 800 Total 3P…
  18. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 18
    SHORTER STAGE LENGTHS (SSL) ENHANCING MARCELLUS RECOVERIES Enhancing Recoveries SSL vs Non-SSL Wellhead Shorter stage length (SSL) summary: Average Rate Comparison 32 SSL wells completed 30-day 60-day 90-day 120-day Rate Rate Rate…
  19. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 19
    EXCITING CORE UTICA SHALE POSITION DELIVERS CONDENSATE AND NGLS 100% operated Utica Shale Industry Activity(1) 106,000 net acres in the core rich gas / condensate window GULFPORT 24-Hour IP Wagner 1-28H, 20% HBP with additional 79%…
  20. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 20
    ANTERO HAS MOST OF THE TOP UTICA 24-HOUR IPS STRONG SUPPORT FOR CORE POSITION Antero has 11 of the top 12 UTICA 24-HOUR IPs Utica 24-hour peak rates (IPs) Core announced to date 12 to 53 Represent some of the best 24- 60.0 MMcfe/d…
  21. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 21
    UTICA SINGLE WELL ECONOMICS ASSUMES ETHANE REJECTION Assumptions Utica Well Economics and Locations(1) 12/31/2013 Strip Pricing & SEC Reserves 200% 161 250 205 211 NYMEX WTI C3+ NGL(2) 182 200 Total 3P Locations (/MMBtu)…
  22. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 22
    LARGE MIDSTREAM FOOTPRINT Antero Midstream estimated cumulative YE 2014 total capital investment in midstream 1,580 million Includes gathering lines, compressor stations and water distribution infrastructure Proprietary water…
  23. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 23
    PRO FORMA CAPITALIZATION CAPITALIZATION (PF Financing) ( in millions) 12/31/2013 12/31/2013 (2) Cash 17 17 Senior Secured Revolving Credit Facility 288 288 7.25% Senior Notes Due 2019 260 260 6.00% Senior Notes Due 2020 525 525…
  24. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 24
    HEALTH, SAFETY, ENVIRONMENT & COMMUNITY Protection Of Our People And The Environment Is An Antero Core Value Strong West Virginia Presence Keys to Execution Over 75% of Antero Marcellus Closed loop mud system no mud pits employees…
  25. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 25
    ANTERO KEY ATTRIBUTES 456,000 Net Acres in the Core Marcellus and Utica Shales Triple Digit Historical Production and Reserve Growth Low Cost Leader / High Return Projects Significant Takeaway and Processing Capacity…
  26. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 26
    APPENDIX 26
  27. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 27
    ANTERO FIRM TRANSPORTATION AND FIRM SALES Columbia Firm Sales 1 Firm Sales 2 Firm Sales 3 7/26/2009 9/30/2025 10/1/2011 10/31/2019 10/1/2011 5/31/2017 1/1/2013 5/31/2022 Momentum III EQT Chicago Direct 9/1/2012 12/31/2021 8/1/2012…
  28. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 28
    ANTERO UTICA SHALE WELLS 24 HOUR IPS 24hr Peak Rate Lateral Well Gas Equivalent Rate Wellhead Gas Shrunk Gas NGL Condensate % Total Length Name County (MMcfe/d) (MMcf/d) (MMcf/d) (Bbl/d) (Bbl/d) Liquids BTU (Feet) Yontz 1H Monroe…
  29. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 29
    ANTERO UTICA SHALE WELLS 30-DAY RATES Anteros wells have been producing against 1,100 psi line pressure due to lack of compression facilities First 120 MMcf/d compressor station started up in late January 2014 30Day Rates Antero…
  30. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 30
    CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 40 year proved reserve life based on 2013E production Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 2.2 BBbl of NGLs and condensate in ethane…
  31. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 31
    MARCELLUS SHALE RICH GAS LIQUIDS AND PROCESSING UPGRADE Marcellus Shale rich gas and highly-rich gas acreage provides a significant advantage in well economics assuming 4.25/MMBtu NYMEX, 90.00/Bbl WTI and current spot NGL pricing…
  32. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 32
    2013 REALIZATIONS 2013 NATURAL GAS REALIZATIONS (/MCF) Average 2013 Average Average Average Average 2013 Premium / % Sales NYMEX Price Differential(2) BTU Upgrade Realized Price (Discount) TCO 67% 3.65 (0.06) 0.42 4.02 0.37…
  33. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 33
    POSITIVE RATINGS MOMENTUM Moodys / S&P Historical Credit Ratings Moodys Upgrade Criteria S&P Upgrade Criteria An upgrade could be considered if debt / average daily production is We would consider a positive rating action if the…
  34. MARCH 2014 COMPANY OVERVIEW – Antero Resources – slide 34
    ANTERO EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) (12 Months Ended) Antero Resources LLC 12/31/2012 12/31/2013 EBITDAX: Net income (loss) from continuing operations 225.3 (24.2) Commodity derivative fair value…

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