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CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources

Antero Resources · Feb 11, 2014 · 35 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. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 1
    Credit Suisse 19th Annual Energy Summit February 11, 2014
  2. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 2
    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 17 Horizontals Completed Southwestern Fairway 5 Rigs…
  3. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – 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 Most active operator in Appalachian Basin Net…
  4. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – 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. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 5
    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…
  6. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 6
    OUTSTANDING UTICA WELL RESULTS DRIVE STRONG PROVED RESERVE BOOKING Antero Utica Well Results Antero Type Curve Regime - 12/31/2013 Strip Pricing - 7,000' Lateral Ethane Recovery Ethane Rejection Well 24-Hour Peak Rate % Total…
  7. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 7
    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…
  8. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 8
    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…
  9. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 9
    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…
  10. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 10
    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…
  11. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 11
    ASSET OVERVIEW 11
  12. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 12
    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 30-Day Rate 348,000 net acres in 30-Day Rate 30-Day Rate 1H:…
  13. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 13
    MARCELLUS SIMPLE STRUCTURE Several regional anticlines in core area Predictable layer cake geology No faults at Marcellus level Over 1.5 million feet (295 miles) drilled horizontally without crossing a fault 3-D seismic not…
  14. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 14
    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…
  15. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 15
    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 Total 3P Locations…
  16. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 16
    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…
  17. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 17
    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%…
  18. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 18
    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)…
  19. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 19
    INTEGRATED MIDSTREAM PROCESSING AND TAKEAWAY Infrastructure and commitments in place to handle Leidy strong natural gas, NGL and oil production growth Basis to NYMEX Current 2015 Portfolio of firm transportation and sales and -2.25…
  20. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 20
    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…
  21. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 21
    SIGNIFICANT LONG-TERM COMMODITY HEDGE POSITION NATURAL GAS HEDGES 12/31/2013 BBtu/d Hedged Volume Average Index Price (/MMBtu)(1) NYMEX Strip (2/7/2014) (/MMBtu) 800 7.00 4.92 6.00 4.70 4.73 4.65 4.51 600 4.34 5.00 4.57 4.00…
  22. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 22
    ANTERO KEY ATTRIBUTES Critical Mass In Two World Class Shale Plays Market Leading Growth Industry Leading Capital Efficiency and Recycle Ratio Significant Emphasis on Takeaway and Liquids Processing Liquidity and Hedge…
  23. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 23
    APPENDIX 23
  24. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 24
    ANTERO 2014 CAPITAL BUDGET 2014E 2014E 200 27% 600 2.60 Billion 1,800 73% Drilling & Completion Midstream Land Marcellus Utica 2013E 2013E 450 18% 650 1,550 2.65 Billion 82% Drilling & Completion Midstream…
  25. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 25
    ANTERO 2014 GUIDANCE Key 2014 Operating & Financial Assumptions(1) Key Variable Guidance Range Natural Gas Realized Price Premium to NYMEX (/Mcf)(2) 0.00 - 0.10 NGL Realized Price (% of WTI) (/Bbl) 50% - 52% Oil Realized Price…
  26. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 26
    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…
  27. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 27
    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…
  28. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 28
    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…
  29. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 29
    PRO FORMA CAPITALIZATION CAPITALIZATION (PF IPO) (PF Bond Offering) ( in millions) 9/30/2013 9/30/2013 (1) 9/30/2013(3) Cash 12 77 339 Senior Secured Revolving Credit Facility 1,513 9.375% Senior Notes Due 2017 525 525 9.00%…
  30. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 30
    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…
  31. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 31
    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…
  32. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 32
    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…
  33. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 33
    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…
  34. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 34
    2013 YEAR-TO-DATE REALIZATIONS 9/30/2013 YTD NATURAL GAS REALIZATIONS YTD Average Average Average Average YTD % Sales NYMEX Price Differential(2) BTU Upgrade Realized Price TCO 76% 3.68 (0.07) 0.44 4.05 Dominion South 18% 3.68…
  35. CREDIT SUISSE 19TH ANNUAL ENERGY SUMMIT – Antero Resources – slide 35
    ANTERO EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) (9 Months Ended) Antero Resources LLC 9/30/12 9/30/2013 EBITDAX: Net income (loss) from continuing operations 140.4 201.0 Commodity derivative fair value (gains)…

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