ANTERO MIDSTREAM A GROWTH FOCUSED MLP AM sponsor is the most active operator in Appalachia Premier Highest recycle ratio and low F&D cost supports sponsor production growth expectations 1 Sponsor maintains strong liquidity and…
ANTERO MIDSTREAM OWNERSHIP STRUCTURE Midstream Entity Midstream Option Corporation Partnership Option Antero Resources Public Corporation (NYSE: AR) 13.0 Billion Enterprise Value(1) Ba3/BB Corporate Rating Antero 69.7%…
ANTERO MIDSTREAM PARTNERS OVERVIEW Midstream Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 412,000 net leasehold acres for gathering and…
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…
ORGANIC GROWTH STRATEGY: BUILD VS. BUY Organic growth strategy provides attractive Organic EBITDA Multiple vs. Precedent Drop Down Multiples returns and project economics, while 11.9x avoiding the competitive acquisition market…
FULL MIDSTREAM VALUE CHAIN POTENTIAL Well Pad Condensate Gathering End Stabilization Users (Miles) YE 2014 YE 2015 Compression (Miles) YE 2014 YE 2015 Fresh Water Utica 16 20 Marcellus 62 81 Distribution(1) Low Pressure…
AM OPTION FRESH WATER DISTRIBUTION SYSTEMS Currently owned by AR AM holds option to purchase 100% of assets at fair market value Marcellus Fresh Water Distribution System Provides fresh water to support ongoing Marcellus completion…
SIGNIFICANT FINANCIAL FLEXIBILITY Sources & Uses (11/10/2014) AM Liquidity Sources ( in millions) ( in millions) At IPO(1) Primary IPO Proceeds 1,150 Total Sources 1,150 Revolver Capacity 1,000 Less: Borrowings - Uses Plus: Cash…
ANTERO MIDSTREAM MLP INVESTMENT HIGHLIGHTS Premier E&P Sponsorship Pure Play Marcellus/Utica Midstream MLP Top Tier MLP Organic Growth Full Midstream Value Chain Potential Financial Flexibility & Strong Capital Structure…
Antero Resources (NYSE: AR) Overview 15
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…
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 STRONG TRACK RECORD NET PROVED SEC RESERVES (Bcfe) AVERAGE NET DAILY PRODUCTION (MMcfe/d) Marcellus Utica Marcellus Utica Guidance 10,000 1,800 9,107 8,000 7,632 1,400 6,000 1,200 1,007 4,283 4,000 2,844 600 522…
LAND MOST ACTIVE LAND ORGANIZATION IN APPALACHIA Assembled a 543,000 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 Source: Core outlines and peer net acreage positions based on peer presentations, news releases and 10-K/10-Qs. 20
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) +0.23…
LIQUIDITY LARGEST GAS HEDGE POSITION IN U.S. E&P + STRONG FINANCIAL LIQUIDITY 1.6 billion mark-to-market unrealized gain based on 12/31/2014 prices 1.8 Tcfe hedged from January 1, 2015 through year-end 2020 and 262 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 a realized gas price, 1.35/Mcfe in estimated hedge gains(1) including hedges, at a premium to NYMEX 71% exposure to favorable price indices strip prices for 2015, assuming…
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…
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…
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…
APPENDIX 28
MAINTENANCE CAPITAL METHODOLOGY Maintenance Capital Calculation Methodology Estimate the number of new well connections needed during the forecast period in order to offset the natural production decline and maintain the average…
CONTRACTUAL ARRANGEMENTS WITH ANTERO PROVIDE SIGNIFICANT GROWTH OPPORTUNITIES Gathering and Compression 20-year agreement Dedication of all current and future AR acreage in West Virginia, Ohio, and Pennsylvania, outside of current…
FORECASTED CASH FLOW AVAILABLE FOR DISTRIBUTIONS 12 Months Ending ( in millions) December 31, 2015 Antero Midstream Adjusted EBITDA(1) 150 160 Less: Cash interest, net (2.5) Expansion capital expenditures (425 450) Ongoing…
AM OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM Existing dedication of 412,000 acres Gas Gathering and Compression Option to expand outside dedicated area, including ROFR (High-Pressure and Low-Pressure) Minimum Volume…
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…
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…
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…
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