ANTERO: A PURE PLAY ON THE MARCELLUS / UTICA Marcellus is one of the largest gas fields in the world today Critical Mass In Two Largest gas field in the U.S. currently producing over 15 Bcf/d World Class Shale Plays Antero has 37.5…
SIGNIFICANT MOMENTUM SINCE IPO Net Production Liquids Production Proved Reserves Net Acres (MMcfe/d) (Bbl/d) (Bcfe) 57% 156% 45% 16% 1,200 24,000 1,000 10,000 498k 891 20,200 9,107 500,000 431k 800 18,000 400,000 7,500 6,282…
PREMIER UNCONVENTIONAL RESOURCE PLATFORM COMBINED TOTAL 6/30/14 RESERVES Assuming Ethane Rejection Net Proved Reserves 9.1 Tcfe Net 3P Reserves 37.5 Tcfe Net 3P Reserves & Resource 47.0 Tcfe Pre-Tax 3P PV-10 25.9 Bn Net 3P Liquids…
LARGE MIDSTREAM FOOTPRINT Significant investment in infrastructure - estimated cumulative YE 2014 total capital investment in midstream 1.6 billion Includes gathering lines, compressor stations and fresh water distribution…
INTEGRATED PORTFOLIO OF FIRM GAS & NGL TAKEAWAY Antero Long Term Firm Takeaway Position Mariner East II 51,500 Bbl/d Commitment Marcus Hook Export Odebrecht / Braskem Shell 30 MBbl/d Commitment 25 MBbl/d Commitment Ascent…
ANTERO 2014 CAPITAL BUDGET On August 26th, Antero increased its 2014 capital budget to 3.7 billion due to the acceleration of land, drilling and midstream activities in the Marcellus and Utica Shale plays 2.85 Billion - PREVIOUS 3.7…
DRILLING AND COMPLETION BUDGET DRIVERS DRILLING AND COMPLETION CAPITAL BUDGET RECONCILIATION ( in millions) 2,600 40 2,400 2,400 50 180 2,200 330 2,000 Generates 2H 2014 1,800 Increased Production Guidance of…
STRONG TRACK RECORD OF GROWTH 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 1,000 2,844…
MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW RISK, HIGH RETURN GROWTH PROFILE MARCELLUS SSL WELL ECONOMICS(1) UTICA WELL ECONOMICS(1) 125% 708 826 882 1000 1,000 200% 222 250 204 208 100% 641 800 200 Total 3PLlocations…
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 recent 2011-2013 average all-in F&D cost analysis prepared by Credit Suisse…
INTEGRATED FIRM PROCESSING & GAS TAKEAWAY Antero Long Term Firm Gas Takeaway Infrastructure and commitments in place to handle strong production growth Portfolio of firm gas takeaway and sales and West Virginia and Ohio location…
CONNECTIVITY TO KEY PIPELINES ENHANCES TAKEAWAY Potential Regional Pipeline Assets Rover Pipeline Operator Energy Transfer Rover Pipeline Option to Acquire Non-Op Equity Antero Midstream up to 20% Ownership Interest 2016 in-service…
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…
SIGNIFICANT LONG-TERM COMMODITY HEDGE POSITION NATURAL GAS HEDGE POSITION BBtu/d /MMBtu Hedged Volume Average Index Hedge Price(1) Current NYMEX Strip 800 7.00 4.91 6.00 600 4.80 4.72 4.54 4.41 4.34 5.00 4.00 400 4.18 4.28…
2Q 2014 REALIZATIONS 2Q 2014 NATURAL GAS REALIZATIONS (/MCF) Average 2Q 2014 Average Average Average Hedge Average 2Q 2014 Premium/ Region % Sales NYMEX Price Differential(2) BTU Upgrade Effect Realized Gas Price(3) Discount…
BIGGEST BANG FOR THE BUCK Antero has the highest price realizations and EBITDAX per Mcfe combined with the lowest all-in F&D cost among its large cap Appalachian peers based on 2Q 2014 results Driven by liquids-rich production, firm…
POSITIONED FOR GROWTH & PROFITABILITY Highest Growth & Highest Margin Large Cap E&P Focused On Marcellus & Utica 2014 Projected Growth (%)(1) 2Q 2014 EBITDAX/Mcfe(2) 100% 92% 3.50 3.29 90% 3.00 80% 70% 2.50 60% 2.00 50% 3-Year…
ASSET OVERVIEW 20
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT 100% operated BEE LEWIS PAD DOTSON UNIT BLANCHE UNIT 378,000 net acres in 30-Day Rate 30-Day Rate 30-Day Rate Southwestern Core 4-well combined 1H: 12.4 MMcfe/d 1H: 9.7 MMcfe/d…
MARCELLUS DEVELOPMENT PROGRAM TARGET THE LIQUIDS Antero continues to focus its development program further west to drill liquids-rich locations with higher rates of return From 2013 to 2015 Antero will increase the average BTU…
ANTEROS MARCELLUS SHALE TYPE CURVE Antero has nearly five years of production history to support its Non-SSL type curve Anteros SSL type curve is 1.7 Bcf/1,000 with only 10% to 15% higher well costs vs. Non-SSL Lack of faulting and…
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 regime Assumes 6/30/2014…
MARCELLUS SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Marcellus SSL Well Economics and Total Gross Locations(1) Natural Gas 6/30/2014 strip 125% 708 882 1,000 Oil 6/30/2014 strip for 2014-2016, 826 90 flat thereafter 100%…
LEADING UTICA SHALE CORE POSITION DELIVERS CONDENSATE AND NGLS Utica Shale Industry Activity(1) 100% operated Cadiz 120,000 net acres in the core rich gas/ GULFPORT Processing 24-Hour IP Plant condensate window Wagner 1-28H,…
UTICA DEVELOPMENT PROGRAM TARGET THE RICH GAS REGIMES In the second half of 2014 and all of 2015 Antero has shifted its development plan to focus more heavily in the rich gas regimes in the Utica Shale play At current pricing, the…
UTICA 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 regime Assumes 6/30/2014…
UTICA SINGLE WELL ECONOMICS IN ETHANE REJECTION Assumptions Utica Well Economics and Gross Locations(1) Natural Gas 6/30/2014 strip 200% 250 208 222 Oil 6/30/2014 strip for 2014-2016, 204 Total 3P Locations 150% 200 90 flat…
LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has 175,000 net acres of exposure to Utica dry gas play Hess Chesapeake Range Porterfield 1H-17 Hubbard BRK 3H 29,000 net acres in Ohio with net 3P…
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 4,500 contract personnel working full-time for Antero…
ANTERO KEY ATTRIBUTES 498,000 Net Acres in the Core Marcellus and Utica Shales Triple Digit Historical Production and Reserve Growth Low Cost Leader / High Return Projects Leading Appalachian Processing and Takeaway…
APPENDIX 33
PRO FORMA CAPITALIZATION CAPITALIZATION Pro Forma 500MM Offering(4) ( in millions) 6/30/2014 6/30/2014 Cash 19 19 Senior Secured Revolving Credit Facility 1,240 744 6.00% Senior Notes Due 2020 525 525 5.375% Senior Notes Due 2021…
ANTERO 2014 GUIDANCE Key 2014 Operating & Financial Assumptions(1) Key Variable 2014 Guidance Range Natural Gas Realized Price Differential to NYMEX (/Mcf)(2) (0.15) (0.25) Oil Realized Price Differential to WTI (/Bbl) (10.00)…
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…
ANTERO UTICA SHALE WELLS 30-DAY RATES Anteros wells produced against 1,100 psi line pressure until late January 2014 due to lack of compression facilities First 120 MMcf/d compressor station started up in late January 2014, a second…
ANTERO UTICA SHALE WELLS 30-DAY RATES Outstanding 30-day average rates with high liquids content Anteros wells produced against 1,100 psi line pressure until late January 2014 due to lack of compression facilities First 120 MMcf/d…
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…
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…
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…
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 could raise the ratings due to our assessment of an…
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) Over 2,780 Antero…
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