Company Overview September 2017
For orwar ard-Lo Look oking ing Sta State temen ments ts This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Antero Resources Corporation and its subsidiaries (collectively, the “Company” or “Antero”) expec ts, believes or anticipates will or may occur in the future are forward- looking statements. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “project,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward -looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Without limiting the generality of the foregoing, forward- looking statements contained in this presentation specifically include estimates of the Company’s reserves, expectations of p lans, strategies, objectives and anticipated financial and operating results of the Company, including as to the Company’s drilling program, pr oduction, hedging activities, capital expenditure levels and other guidance included in this presentation. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future d evelopments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016 and in the Company’s subsequent filings with the SEC. The Company cautions you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of natural gas and oil. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2016 and in the Company’s subsequent filings with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Antero Resources Corporation is denoted as “AR” in the presentation, Antero Midstream Partners LP is denoted as “AM” and Antero Midstream GP LP is denoted as “AMGP”, which are their respective New York Stock Exchange ticker symbols. 1
Cha hang nges es Si Sinc nce e Septe Septembe mber r 20 2017 17 Pr Prese esent ntation tion New AR slide highlighting impact of deleveraging Slide 4 transactions on debt, leverage and hedge position Updated AR slides showing pro forma affect of Slides 3, 5, 25, 45, 46, 52 deleveraging transactions 2
Ante Antero o Con Consolida solidate ted d Pr Profile ofile Market Cap (1) ……….…….... $6.8 billion Enterprise Value (1)(2) …......…... $11.1 billion LTM EBITDAX………...…… $1.5 billion Corporate Debt Ratings…… Ba2 / BB Net Debt/LTM EBITDAX (2) 2.7x Net Production (2Q 2017)… 2,200 MMcfe/d % Liquids......................... 28% 3P Reserves (3) ………..….... 53.0 Tcfe % Natural Gas………...... 71% Net Acres (4) ………….…...… 636,000 1. Based on market cap as of 6/30/2017 plus net debt excluding minority interest ($0.6 billion) on a consolidated basis as of 6/30/2017. 2. Pro forma for AR sale of 10.0 million AM units for $311 million net proceeds on 9/6/2017 and $750 million hedge monetization announced on 9/21/2017; current NOLs eliminate taxes on transaction gains. 3. 3P reserves as of 6/30/2017, assuming ethane rejection of which 96% represent 2P reserves. 4. Net acres as of 6/30/2017. 3
$1 Billion Delevering Program Completed Antero monetized over $1 billion of non-E&P assets through the sale of $311 million of AM common units and $750 million through hedge restructuring - Reduced pro forma standalone net debt/LTM EBITDAX to 2.4x AR Leverage Reduction (1) Restructuring of hedge swap prices resulted in 4.0x no change to hedge volumes 3.4x 3.2x 2.7x 80% of targeted natural gas production hedged 3.0x 2.4x through 2020 at $3.43/MMBtu 2.0x – $1.3 billion of remaining hedge value 1.0x Utilizing a portion of net operating losses 0.0x carried forward to eliminate cash taxes on 6/30/2017 PF 6/30/2017 realized gains Consolidated Standalone Natural Gas Hedge Position $/Mcf BBtu/d Previous Hedge Price Hedged Volume 2,400 Current NYMEX Strip (2) Restructured Hedge Price $3.91 ~$750 Million of 2,000 $4.00 $3.70 Proceeds $3.63 $3.64 1,600 $3.50 $3.31 $3.50 $3.25 $3.16 1,200 $3.00 $2.91 $3.00 $3.00 800 No Change to Price 400 Remaining Value as of 6/30/17: $1.3 Billion (2) 0 $2.00 2017 2018 2019 2020 2021 2022 2023 1. Pro forma standalone and consolidated debt and leverage as of 6/30/2017, pro forma for ~$1 billion monetization that consisted of 10 million AM units for net proceeds of $311 million and $750 million in net proceeds from hedge restructuring. AR standalone LTM EBITDAX includes $119 million in distributions from AR’s ownership of AM common units. 4 2. Nymex strip pricing as of 9/19/2017. 3. Remaining value calculated using 6/30/2017 Nymex strip pricing.
20 2017 17 Guida Guidanc nce e an and Lo d Long ng Ter erm Outloo m Outlook k (Bcfe/d) 3.9 Production Growth: 4.0 3.5 3.2 Net Daily Production 3.0 Guidance 2.7 2.5 Long-Term Targets 2.3 1.8 $3.50 Hedged Volume (Bcfe) 2.0 $3.52 $ Hedged Price ($/Mcfe) $3.50 1.5 1.0 $3.25 0.5 0.0 (2) (2) (2) 2016A 2017E 2018E 2019E 2020E 2017 Guidance (3) 2018 - 2020 Long Term Targets (3) $1.3 Billion Modest annual increases within Consolidated D&C Flat with prior year Cash Flow from Operations Capital: Consolidated Cash Flow In line with D&C capital Doubling by 2020 from Operations (1) : Standalone Leverage (1) : Mid-2s area Low to mid-2s range Production Hedging (4): ~95% Hedged at $3.52/Mcfe 59% Hedged at $3.44/Mcfe 1. Assuming 12/31/2016 4-year strip pricing averaging $3.12/MMBtu for natural gas and $56.23/Bbl for oil. Consolidated cash flow from operations includes realized hedge gains. 2. Represents midpoint of 20% - 22% long-term production growth targets based off previous 2017 guidance range of 2,160 – 2,250 MMcfe/d. 5 3. Reflects AR sale of 10.0 million AM units for $311 million net proceeds on 9/6/2017 and $750 million hedge monetization announced on 9/21/2017; current NOLs eliminate taxes on transaction gains. 4. Includes natural gas and liquids hedging volumes.
Out utsta stand nding ing 6/ 6/30 30/2 /201 017 7 Rese eserve e Gr Growth wth NET PROVED RESERVES (Tcfe) (1) 6/30/2017 RESERVE ADDITIONS • Proved reserves increased 7% to 16.5 Tcfe (Tcfe) Marcellus Utica − Proved pre-tax PV-10 at SEC pricing of $9.3 billion, including 16.5 15.4 $1.3 billion of hedge value − Proved pre-tax PV-10 at strip pricing of $10.1 billion, including 14.0 13.2 12.7 $1.7 billion of hedge value 12.0 − Increased Marcellus wellhead type curve to 2.0 Bcf /1,000’ of 10.0 lateral for additional 199 PUD locations 7.6 8.0 • 3P reserves increased 14% to 53.0 Tcfe 6.0 − 3P PV-10 at strip pricing of $17.0 billion, including $1.7 billion of 4.3 4.0 hedge value 2.8 − Increased Marcellus wellhead type curve to 2.0 Bcf /1,000’ of 2.0 0.7 lateral for additional 398 Probable locations 0.0 • All-in F&D cost of $0.48/Mcfe for 6/30/2017 2010 2011 2012 2013 2014 2015 2016 6/30/17 NET PDP RESERVES (Tcfe) (1) 3P RESERVES BY VOLUME – 6/30/2017 (1) (Tcfe) $Bn Marcellus Utica Borrowing Base 2.1 Tcfe 10.0 5.0 Possible $4.75 Bn 9.0 4.5 7.6 8.0 4.0 16.5 Tcfe Proved 6.6 7.0 3.5 Proved 6.0 3.0 5.6 Probable 34.4 Tcfe 5.0 2.5 Probable Possible 4.0 2.0 3.5 3.0 1.5 1.8 2.0 1.0 $550 MM 0.9 96% 2P 1.0 0.5 0.4 0.1 Reserves 0.0 0.0 53.0 Tcfe 3P 2010 2011 2012 2013 2014 2015 2016 6/30/17 1. 2012, 2013, 2014 and 2015 reserves assuming ethane rejection. In 2016, 554 MMBbls of ethane assumed recovered to meet ethane contract. In 6/30/2017, 656 MMBbls of ethane assumed recovered to meet ethane contract. 6/30/2017 SEC prices were $2.88/MMBtu for natural gas and $43.33/Bbl for oil on a weighted average Appalachian index basis. 6/30/2017 10-year average strip prices are 6 NYMEX $3.00/Mcf, WTI $52.06/Bbl, propane $0.69/gal and ethane $0.32/gal.
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