CHANGES SINCE DECEMBER 2014 PRESENTATION Updated land position as of 12/31/2014 and Marcellus Slide 5 rig count position as of 1/9/2015 Updated natural gas and liquids hedge portfolio with Slide 12 mark-to-market value as of…
LEADING UNCONVENTIONAL BUSINESS MODEL Most Active Highest Growth Land Organization Large Cap E&P in Appalachia 2 3 Growth Land Largest Liquids-Rich Most Active Operator 1 4 Core Position in in Appalachia Liquids-Rich…
CATALYSTS 1 Large, low cost core Marcellus and Utica natural gas drilling inventory Sustainability of with associated liquids generates attractive returns supported by long- Anteros Integrated term natural gas hedges, takeaway…
DRILLING MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL 6/30/14 RESERVES Assumes Ethane Rejection Net Proved Reserves 9.1 Tcfe Net 3P Reserves 37.5 Tcfe Pre-Tax 3P PV-10 25.9 Bn SW Marcellus + Utica Rigs(3) Net 3P Reserves &…
GROWTH HIGHEST GROWTH LARGE CAP E&P Anteros 45%-50% production growth target for 2015 leads the U.S. large cap E&P industry(1) 50% 47.5% 40% 29.9% 30% 27.7% 26.8% 25.0% 23.6% 21.3% 19.7% 20% 17.9% 16.4% 9.7%…
GROWTH STRONG TRACK RECORD NET PROVED SEC RESERVES (Bcfe) AVERAGE NET DAILY PRODUCTION (MMcfe/d) Marcellus Utica Marcellus Utica Guidance 10,000 2,400 9,107 2,200 8,000 7,632 1,800 1,500 6,000 4,283 1,200 4,000 1,007 2,844…
LAND MOST ACTIVE LAND ORGANIZATION IN APPALACHIA Assembled a 542,000 net acre position in the core of the Marcellus and Utica shale plays over the past 6 years Dec 2008 Dec 2011 Dec 2014 December 2008 December 2011(1) December…
LIQUIDS-RICH LARGEST CORE POSITION Antero has the largest liquids-rich core position in Appalachia 371,000 net acres ( 1100 Btu) Source: Core outlines and peer net acreage positions based on peer presentations, news releases and…
MIDSTREAM MLP (NYSE: AM) HIGHLIGHTS SUBSTANTIAL VALUE IN MIDSTREAM BUSINESS Corporate Structure Overview(1) Antero Resources Corporation (NYSE: AR) 12.8 Billion Enterprise Value(1) Ba3/BB Corporate Rating 70% Limited Partner…
TAKEAWAY LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA Antero Long Term Firm Processing & Takeaway Position (2018) Accessing Favorable Markets Mariner East II 4 Bcf/d Chicago(1) 62 MBbl/d Commitment(2) +0.19…
LIQUIDITY LARGEST GAS HEDGE POSITION IN U.S. E&P + STRONG FINANCIAL LIQUIDITY 2.0 billion mark-to-market unrealized gain based on 1/13/2015 prices 1.8 Tcfe hedged from January 1, 2015 through year-end 2020 and 273 Bcf of TCO basis…
REALIZATIONS HIGHEST REALIZATIONS & MARGINS AMONG LARGE-CAP APPALACHIAN PEERS 3Q & 4Q 2014 Natural Gas Realizations (/Mcf) Average Average Gas Average Realized Gas Realized NYMEX Average Average Discount to Hedge Realized Premium/…
REALIZATIONS REALIZED PRICE ROAD MAP Antero is forecasting realized gas prices including hedges at a premium to NYMEX strip prices for 2015 and 2016, assuming current strip prices and basis, existing firm transportation and hedges, and…
SECTOR POSITIONING 15
PREMIER POSITION IN LOW-COST RICH GAS PLAYS Over 70% of Anteros 4,243 Marcellus and Utica undeveloped 3P locations are rich gas locations which have the lowest breakeven prices for both oil and natural gas North American Breakeven Oil…
MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW RISK, HIGH RETURN GROWTH PROFILE Antero is well positioned in the core of the highest return shale projects in the U.S. in the current commodity price environment MARCELLUS SSL WELL…
20 Bcf/d OF INCREMENTAL GAS DEMAND BY 2020 Significant demand growth expected for U.S. Projected Incremental Natural Gas Demand Through 2020 natural gas (Bcf/d) 9.5 Bcf/d of the 20 Bcf/d of 20 incremental demand is 20 More than 65%…
LNG EXPORTS BY PROJECT EXPECTED START UP LNG Exports by Project Through 2020 Assuming 9.5 Bcf/d of LNG exports by 2020, the U.S. would be the worlds 3rd largest LNG LNG Exports by Project exporter (behind Qatar and Australia) (in…
MARCELLUS/UTICA DRIVING GAS SUPPLY GROWTH Lower 48 Gas Supply by Area Of the 23 Bcf/d of expected incremental gas (MMcf/d) supply from 2009 to 2015, 18 Bcf/d, or 78%, is expected to be generated from Marcellus 18,000 and Utica…
ASSET OVERVIEW 21
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated RJ SMITH PAD Operating 13 drilling rigs BEE LEWIS PAD 30-Day Rate including 5 intermediate rigs 30-Day Rate 4-well combined MHR COLLINS UNIT 4-well combined 30-Day Rate…
ANTEROS MARCELLUS SHALE TYPE CURVE Antero has over five years of production history to support its Non-SSL type curve Antero has one and a half years of production history to support its SSL type curve: 1.7 Bcf/1,000 with only 10% to…
INCREASING RECOVERIES AND LOW VARIANCE IN MARCELLUS Anteros Marcellus 30-day rates have increased by 64% over the past two years as the Company increased per well lateral lengths by 20% and shortened stage lengths by 43% 30-Day Rates…
MARCELLUS WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies, through longer laterals, shorter stage lengths and faster drilling SSL completions drove a 21% decline in estimated development costs in 2014 while lower…
MARCELLUS ROR% AND GAS PRICE SENSITIVITY Large portfolio of Highly-Rich Gas/Condensate to Dry Gas locations Focused on drilling highly economic rich gas locations rig symbols represent current rig location by Btu regime Assumes…
LEADING UTICA SHALE CORE POSITION DELIVERS CONDENSATE AND NGLS Utica Shale Industry Activity(1) 100% operated Cadiz Operating 8 rigs including 3 intermediate rigs GULFPORT Processing 24-Hour IP Plant 148,000 net acres in the core…
UTICA WELL PERFORMANCE IMPROVEMENTS Increasing recoveries and efficiencies, through longer laterals, shorter stage lengths and faster drilling Lower service costs are expected to drive development cost reductions in 2015 Lateral…
UTICA ROR% AND GAS PRICE SENSITIVITY Large portfolio of Condensate to Dry Gas locations Focused on drilling highly economic rich gas locations rig symbols represent current rig location by Btu regime Assumes 12/31/2014 WTI strip…
LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has 212,000 net acres of exposure to Utica dry gas play Rice Hess Chesapeake Range 42,000 net acres in Ohio with net 3P reserves of 1.9 Tcf as of…
FRESH WATER DISTRIBUTION SYSTEMS Projected Midstream Infrastructure(1) Marcellus Utica Shale Shale Total YE 2014E Cumulative Fresh Water System Capex (MM) 300 100 400 Water Pipelines (Miles) 107 48 155 Water Storage Facilities 26…
FIRM TRANSPORTATION AND FIRM SALES PORTFOLIO Columbia Tennessee Momentum III EQT REX/MGT/ANR 7/26/2009 9/30/2025 11/1/2015 9/30/2030 9/1/2012 12/31/2023 8/1/2012 6/30/2025 7/1/2014 12/31/2034 ANR Local Distribution Firm Sales 1 Firm…
FIRM TRANSPORTATION REDUCES APPALACHIAN BASIS EXPOSURE Anteros firm transportation (FT) portfolio increases visibility on production growth and increases exposure to Gulf Coast and Midwest pricing, with little incremental cost per Mcf…
ANTERO FIRM TRANSPORTATION APPROPRIATELY DESIGNED TO ACCOMMODATE GROWTH % FT Utilization % FT Utilization % FT Utilization (BBtu/d) (including (including (including Anteros firm transport (FT) is marketable FT): marketable FT):…
HEALTH, SAFETY, ENVIRONMENT & COMMUNITY Antero Core Values: Protect Our People, Communities And The Environment Strong West Virginia Keys to Execution Presence Antero has more than 4,000 employees and contract personnel working…
CLEAN FLEET & CNG TECHNOLOGY LEADER Antero has contracted for two clean completion fleets to enhance the economics of its completion operations and reduce the environmental impact Replaces diesel engines (for pressure pumping) with…
Antero Midstream (NYSE: AM) Asset Overview 37
SUBSTANTIAL INVESTMENT IN MIDSTREAM MLP (NYSE: AM) Midstream Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 411,000 net leasehold acres for…
ANTERO MIDSTREAM ASSETS RICH GAS MARCELLUS Marcellus Gathering & Compression Provides Marcellus gathering and compression services Liquids-rich gas is delivered to MWEs Sherwood Complex for processing Significant growth projected…
ANTERO MIDSTREAM ASSETS RICH & DRY GAS UTICA Utica Gathering Provides Utica natural gas and condensate gathering services Liquids-rich gas delivered into MWEs Seneca Complex for processing Condensate delivered to centralized…
APPENDIX 41
PRO FORMA CAPITALIZATION ( in millions) 9/30/2014 Pro Forma 1.15 Bn AM IPO(4) 9/30/2014 Cash 6 256 Senior Secured Revolving Credit Facility 1,505 662 6.00% Senior Notes Due 2020 525 525 5.375% Senior Notes Due 2021 1,000 1,000…
LOWEST FINDING & DEVELOPMENT COST AMONG U.S. PRODUCERS Antero ranks as the most efficient finder and developer of reserves, on a per Mcfe basis, based on a 2011-2013 average all-in F&D cost analysis prepared by Credit Suisse 3-Year…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus SSL Well Economics and Total Gross Locations(1) Natural Gas 12/31/2014 strip 60% 896 1,000 Oil 12/31/2014 strip 875 NGLs 55% of Oil Price 727 800 Total 3P…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 12/31/2014 strip 60% 400 369 Oil 12/31/2014 strip Total 3P Locations 46% NGLs 55% of Oil Price 45% 300 248…
LOW DEVELOPMENT COST DRIVES BEST IN CLASS RECYCLE RATIOS 3-Year Proved Development Costs (/Mcfe) through 2013 /Mcfe 6.00 Antero Appalachia-Focused Peers Other Peers 5.00 4.00 3.00 2.00 1.60 1.15 1.18 1.21 1.00 0.00…
CONSIDERABLE RESERVE BASE WITH ETHANE OPTIONALITY 30 year proved reserve life based on 1H 2014 production annualized Reserve base provides significant exposure to liquids-rich projects 3P reserves of over 2.3 BBbl of NGLs and…
POSITIVE RATINGS MOMENTUM Moodys / S&P Historical Corporate Credit Ratings Moodys Upgrade Criteria S&P Upgrade Criteria An upgrade could be considered if debt / average daily production is We could raise the ratings due to our…
PRO FORMA OFFERING BALANCE SHEET POSITIONED FOR LONG-TERM GROWTH The recent bond offerings, at progressively lower coupons, have allowed Antero to reduce its cost of debt to approximately 5.0% and enhance liquidity while extending the…
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) 3,000 Antero Drilling…
LNG EXPORTS BY PROJECT CURRENT STATUS LNG Exports by Project Current Status Dates of Key Milestones Send Out Non- DOE Non-FTA FERC FTA Permit Underlying Permit Construction Capacity Gas Demand Project Awarded Approval (Bcf/d)…
Loading...
