Credit Suisse 21 st Annual Energy Summit February 2016 - PDF document

Credit Suisse 21 st Annual Energy Summit February 2016

FORWARD-LOOKING STATEMENTS 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”) expects, 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 plans, strategies, objectives and anticipated financial and operating results of the Company, including as to the Company’s drilling program, production, 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 developments 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, 2014 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, 2014 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” and Antero Midstream Partners LP is denoted as “AM” in the presentation, which are their respective New York Stock Exchange ticker symbols. 1

ANTERO – “THE BRIDGE” TO BETTER OIL & GAS PRICES  Highly Sustainable Business Model - Antero holds a leading position within the lowest cost U.S. basin, a large and growing production base, a substantial long-term hedge position, over $5.0 billion of direct and indirect liquidity, and virtually all of its production volumes sold to favorable markets 2015A 2016E 2017E 48% growth to 15% growth guidance to Large and Growing 20% growth target on 2016E 1.493 Bcfe/d 1.715 Bcfe/d guidance Production Base ~$0.88/Mcfe in 2015 down 10% • 2,227 “high grade” Continue to target peer-leading from 2014 horizontal locations with development costs Declining Development similar economics Costs • Target 12% cost reduction 1,316 BBtu/d hedged at 1,793 BBtu/d hedged at 2,073 BBtu/d hedged at Production Sold $4.43/MMBtu $3.94/MMBtu $3.57/MMBtu Forward at Attractive (94% of guidance) ( ≈ 100% of guidance) ( ≈ 100% of target) Prices • $3.0 billion at 9/30/2015 Continue to target growth in Continue to target growth in • Additional $2.7 billion of PDP reserves, midstream PDP reserves, midstream Strong Liquidity AM units assets and hedge portfolio assets and hedge portfolio • 2.3 Bcf/d of FT • 3.5 Bcf/d of FT • 3.6 Bcf/d of FT • 69% of sales volumes priced • Expect 99% of sales volumes • Expect 97% of sales volumes Firm Transport to at favorable markets priced at favorable markets priced at favorable markets • 61,500 Bbl/d of FT on Favorable Markets Mariner East 2 for NGL export 2

2016 CAPITAL BUDGET DRIVES MOMENTUM  Antero’s 2016 initial capital budget is $1.4 billion, a 23% decrease from 2015 capital expenditures of $1.8 billion and a 58% decline from 2014 capital expenditures $1.8 Billion – 2015 (1) $1.4 Billion – 2016 By Segment ($MM) By Segment ($MM) $160 $100 23% $1,300 $1,650 110 Completions 131 Completions  70 DUCs at YE  50 DUCs at YE Drilling & Completion Land Drilling & Completion Land By Area By Area 25% 56% 44% Marcellus 75% Marcellus Marcellus Utica Marcellus Utica 3 1. Excludes $39 million for leasehold acquisitions in 2015. DUCs are drilled but uncompleted wells at year-end.

ANTERO CREDIT QUALITY AFFIRMED AT Ba2/BB  Amidst the sector wide re-rating of the Energy Sector, Antero recently received affirmed ratings of Ba2 / BB from Moody’s and S&P  Of the 21 public US Baa/Ba E&P issuers reviewed by Moody’s and highlighted below, 15 received downgrades of two or more notches, including five companies that received downgrades of 4 or more notches, and one received a one notch downgrade  S&P reviewed 45 High Yield issuers with 25 downgrades ranging from 1-3 notches Moody’s Baa / Ba Ratings Review Baa1 Baa3 Gray – Previous Rating Red – New Rating Baa2 Baa2 Baa2 Baa2 Baa3 Rating Affirmed Baa3 Baa3 Baa3 Appalachian Company Baa3 Baa3 Baa3 Baa3 Baa3 Baa3 Ba1 Ba1 Ba1 Ba1 Ba1 Ba1 Ba1 Baa3 Ba1 Ba1 Ba1 Ba2 Ba2 Baa3 Ba2 Ba3 Ba3 Ba3 Ba3 Baa3 Ba3 Ba3 Ba3 Ba3 B1 Baa3 B1 B1 B1 Of the 21 public U.S. Baa and Ba B2 Baa3 rated E&P operators, Antero was one B2 B2 B2 of only five companies that received B3 an “affirmed” rating from Moody’s Baa3 B3 Caa1 Baa3 Caa1 Caa2 Baa3 Caa2 Caa3 -Baa3 NBL XEC EQT PXD APC HES CXO AR CLR MUR NFX RRC SWN EGN QEP SM WPX UNT EPE WLL DNR AR 4 Source: Moody’s releases on 02/11/16 and 02/18/16. Note: Issuers are sorted based on rating following review. Appalachia companies in orange.

LEADING UNCONVENTIONAL BUSINESS MODEL Largest Core Liquids- Growing Through the Rich Position in Down Cycle Appalachia 2 3 Growth Liquids-Rich Most Active Operator Sustainable Business 1 in Appalachia 4 Model Well Drilling Economics Premier Appalachian E&P Company Highest Realizations MLP (NYSE: AM) 5 8 Run by Co-Founders and Margins Among Highlights Midstream Large Cap Realizations Substantial Value in Appalachian Peers Midstream Business 7 6 Hedging & Liquidity Takeaway Largest Gas Hedge Largest Firm Transport Position in U.S. E&P + and Processing Strong Financial Portfolio in Appalachia Liquidity 5

DRILLING – MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL – 12/31/15 RESERVES Assumes Ethane Rejection Net Proved Reserves 13.2 Tcfe Net 3P Reserves 37.1 Tcfe Strip Pre-Tax 3P PV-10 (1) $11.2 Bn Net 3P Reserves & Resource 50 to 53 Tcfe January 2016 SW Marcellus & Utica (3) Net 3P Liquids 1,237 MMBbls 12 % Liquids – Net 3P 20% 10 4Q 2015 Net Production 1,497 MMcfe/d Rig Count 8 - 4Q 2015 Net Liquids 54,750 Bbl/d 6 4 Net Acres (2) 569,000 2 Undrilled 3P Locations 3,719 0 OHIO UTICA SHALE CORE Operators Net Proved Reserves 1.8 Tcfe Net 3P Reserves 7.5 Tcfe Strip Pre-Tax 3P PV-10 (1) $2.5 Bn Net Acres 147,000 Undrilled 3P Locations 814 MARCELLUS SHALE CORE Net Proved Reserves 11.4 Tcfe Net 3P Reserves 29.6 Tcfe WV/PA UTICA SHALE DRY GAS Strip Pre-Tax 3P PV-10 (1) $8.7 Bn Net Resource 12.5 to 16 Tcf Net Acres 422,000 Net Acres 188,000 Undrilled Locations 1,889 Undrilled 3P Locations 2,905 Note: 2015 SEC prices were $2.56/MMBtu for natural gas and $50.13/Bbl for oil on a weighted average Appalachian index basis. 6 1. 3P reserve pre-tax PV-10 based on annual strip pricing for first 10-years and flat thereafter as of December 31, 2015. NGL pricing assumes 39%, 46% and 48% of WTI strip prices for 2016, 2017 and 2018 and thereafter, respectively. 2. All net acres allocated to the WV/PA Utica Shale Dry Gas and Upper Devonian Shale are included among the net acres allocated to the Marcellus Shale as they are stacked pay formations attributable to the same leasehold. 3. Antero and industry rig locations as of 1/29/2016, and average rig count for January 2016, per RigData.