Antero Resources Corporation · NYSE:AR
Antero Resources — December 2011 Wells Fargo Securities Energy Conference
19 slides from Antero Resources's conference presentation, Apr 11, 2012
Slide 1: December 2011 Wells Fargo Securities Energy Conference
December 2011 Wells Fargo Securities Energy Conference
Slide 2: 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 de
Slide 3: Reserve and resource estimate cautionary notes
The U.S. Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserve estimates (3P). Antero has provided internally generated estimates for proved, probable and possible reserves in this presentation in
Slide 4: Antero Resources Snapshot
Antero Resources Snapshot ___________________________ Assumes 1000 Btu average heat content. In order to compare hedges across basins, hedged basin prices are converted by Antero to NYMEX-equivalent prices using current basis differentials in the over-the-counter futures market. Estimates per 6/30/2
Slide 5: Reserves, production and acreage by basin
Proved Reserves (1) 74 Bcfe Total 3P (2) 132 Bcfe Proved PV-10 (1,3) $30 Million Net Production 10 MMcfe/d Net Acreage 5,300 Fayetteville Shale Proved Reserves (1) 1,716 Bcfe Total 3P (2) 3,356 Bcfe Total 3P Liquids (2) 121 MMBbls Proved PV-10 (1,3) $1.2 Billion Net Production 58 MMcfe/d Net Acreage
Slide 6: Strong Track Record of Growth
Strong Track Record of Growth Proved reserves for 2006, 2007 and 2008 were determined using previously effective SEC methodology. 2009, 2010 and MY2011 reserves based on currently effective SEC methodology and pricing. Preliminary guidance. Capital budget for 2012 not yet board approved – only drill
Slide 7: Industry Leading 3-Year Finding Costs
Industry Leading 3-Year Finding Costs Industry 3-Year All-in Finding Costs(1) 3-Year Comp Median = $1.33/Mcfe(3) 2010 Antero all-in finding costs of $0.28/Mcfe 3-year Antero all-in finding costs of $0.59/Mcfe(2) $ / Mcfe Antero Source: Finding and development cost data provided by JP Morgan Research
Slide 8: Industry Leading Development Costs
2010 Industry Development Costs(1) Antero – 1H 2011 2010 Comp Median = $2.17(2) 2010 Antero development cost includes $0.31/Mcfe of wells drilled but not yet completed Excluding costs for wells not yet completed results in $1.15/Mcfe development costs for 2010 completed wells $ / Mcfe Per Mcfe devel
Slide 9: Marcellus Shale Position
Marcellus Shale Position Antero 2 horizontals completed Strong results Antero 58 horizontals completed Strong results 8 Southwestern and Northeastern Cores Rich Gas Window in Southwestern Core Representation of key acreage positions from Company presentations.
Slide 10: Antero Marcellus Shale Overview
205,000 net acres of leasehold in heart of the play 63% HBP, 20% 2016+ expiration 100% operated Majority of gas is processable 1.1 Tcfe of proved reserves / 9.9 Tcfe of 3P reserves(1) 176 MMcf/d net production (55% of total Company) Surrounded by key Range, Chevron, Exxon, EQT and Chesapeake Marcell
Slide 11: Strong Marcellus Growth
Strong Marcellus Growth Antero has rapidly grown its Marcellus production over the past two years while building out midstream infrastructure Antero Gross Operated Marcellus Production 10
Slide 12: Antero Marcellus Type Curve
Antero Marcellus Type Curve 24-hour peak 30-day avg. rate 60-day avg. rate 90-day avg. rate 180-day avg. rate 365-day avg. rate 545-day avg. rate MMcfd 13.1 7.0 6.2 5.6 4.4 3.4 3.0 # of wells 60 55 53 51 37 20 10 Antero Type Curve Antero has up to two years of production history to support its Marce
Slide 13: Piceance Basin – A Rich Gas Play
Piceance Basin – A Rich Gas Play Rich processable gas from Mesaverde 63,000 net acres – 40% HBP, 17% 2016+ expiration 1.7 Tcfe of proved reserves / 3.4 Tcfe of 3P reserves (1) 58 MMcfe/d net production including 3,000 Bbls/d of NGLs and oil (23% of total Company) Drilled and completed over 200 wells
Slide 14: Arkoma Woodford Shale
Arkoma Woodford Shale Antero Acreage Position Summary East Rockpile Area Torpedo Junction Area Northern Front Area 13 Rich processable gas from west side of play 659 Bcfe of net proved reserves / 1.0 Tcfe 3P reserves (1) 66,000 net acres – 86% HBP Drilled and operated over 130 horizontal wells with
Slide 15: 2011E Capital Budget
2011E Capex Budget by Type 2011E Capex Budget by Basin Total: $881MM Total: $881MM 2011E Capital Budget
Slide 16: Summary operating results and capitalization
As adjusted for new bonds As further adjusted for Marcellus Acquisition(4) Q3 2011 12 mos. 12 mos. 12 mos. LTM LTM LTM Annualized $ millions 12/31/2008 12/31/2009 12/31/2010 9/30/2011 9/30/2011 9/30/2011 9/30/2011E Summary Operating Results Production (Bcfe) 32 38 49 74 74 78 102 EBITDAX $207 $153 $
Slide 17: Strong Hedge Position
Antero will realize over $500 million of hedge gains over the next five years from its 610 Bcfe hedge book assuming current strip prices(1) Protects future cash flow which supports drilling plans and production growth Antero Hedge Position – 2012 through 2016(2) Natural Gas Swaps Hedged Volume (MMBt
Slide 18: Antero Unrisked Resource Potential Today
Antero Unrisked Resource Potential Today Area Resource Gas (Tcf) Liquids (MMBbls) Net Resource Potential (Tcfe) Appalachia Marcellus Shale(1) 9 584 12 Appalachia Upper Devonian Shale 5 – 6 300 – 400 7 – 8 Piceance Mesaverde(1) 3 232 4 Piceance Mancos/Niobrara Shale(2) 2 – 4 – 2 – 4 Arkoma Woodford S
Slide 19: Key Credit Strengths
Key Credit Strengths Significant reserve potential diversified across three of the key U.S. shale plays Ability to allocate capital to most profitable projects based on commodity prices, basis differentials and local cost dynamics Growing liquids exposure Diversified, stable asset base Large invento
Antero Resources — December 2011 Wells Fargo Securities Energy Conference on 6ix