Antero Resources Corporation · NYSE:AR
Antero Resources — Q1 2024 Earnings Presentation
18 slides from Antero Resources's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Call Presentation
First Quarter 2024 Earnings Call Presentation APRIL 25th, 2024 Antero Resources (NYSE: AR)
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation includes “forward-looking statements.” Such forward-looking statements are subject to a number of risks and uncertainties, many of which are not under AR’s control. All statements, except for statements of historical fact, made in this presentation regarding activi
Slide 3: Drilling and Completion Efficiencies
Drilling and Completion Efficiencies Days per 10,000 Lateral Feet Drilled Increased Completion Stages per Day… 16.0 Stages 6.0 11.3 10.7 Company 5.5 5.4 Record Company Record 8.0 4.2 Days 2023 2023 2022 2023 2024 Daily Record 2022 2023 2024 Daily Record YTD YTD Significantly Reduces Cycle Time per P
Slide 4: Antero Capital Efficiency vs. Peers
Antero Capital Efficiency vs. Peers AR has the lowest CAPEX per Mcfe of its peer group, at just $0.55/Mcfe Capital Efficiency (2024E D&C Capital/ 2024E Production) $1.40 $1.20 $1.14 $1.15 $1.00 Peer Average: $0.90 $0.80 $0.73 $0.76 $0.72 $0.60 $0.55 $0.40 $0.20 $0.00 AR Peer 1 Peer 2 Peer 3 Peer 4 P
Slide 5: U.S. Exports of Propane Hit Record Highs in 2024
U.S. Exports of Propane Hit Record Highs in 2024 U.S. Exports of Propane/Propylene, Quarterly Average (MMBbls/d) Weekly Record High Set on April 19, 2024 of 2.335 MMBbl/d 2.0 2020 2021 2022 2023 2024 1.9 1.8 2023 Avg: 1.62 MMBbl/d 1.7 China 1.6 PDH Demand 2022 Avg: 1.35 1.5 MMBbl/d 1.4 1.3 2021 Avg:
Slide 6: Strong Oil Price-Linked Exposure
Strong Oil Price-Linked Exposure Antero Liquids Barrel Composition Oil Price-Linked Production (1Q 2024 Actuals) (Bbls/d) (1Q 2024 Actuals) ~40,000 Bbls/d tied to ~127,500 Bbls/d WTI Linked Prices Oil Price-Linked Condensate 9% Condensate Pentanes 11,000 15% IsoButane 8% Butane 15% Pentanes 19,000 P
Slide 7: Not All Transport to the U.S. Gulf Coast is Equal
Not All Transport to the U.S. Gulf Coast is Equal Henry Hub-Linked (% of ‘24E Production) “While everything 100 miles back of Henry Hub Tier 3 could be at $3- Cal ’25: ($0.23) 75% 4/MMBtu regional cash Cal ’26: ($0.23) price, Henry Hub cash Cal ‘27: ($0.30) could find itself at periods of time comfo
Slide 8: Natural Gas Power Generation Demand Growth
Natural Gas Power Generation Demand Growth Natural gas power generation demand is expected to grow 14% per year through 2030 as a result of increasing power load growth from AI / Data Centers, Crypto and EVs Natural Gas Power Demand (Bcf/d) AI / Data Centers Crypto Electric & Hybrids 14.0 12.8 12.0
Slide 9: Robust Natural Gas Demand Growth
Robust Natural Gas Demand Growth LNG exports, Mexico exports + electric power generation are expected to increase natural gas demand by ~30 Bcf/d, or 118% from 2023 to 2030 Natural Gas Power Demand (Bcf/d) LNG Exports Mexico Exports Electric Demand 60.0 56.0 12.8 Electric Power Gen: 50.0 +7.7 Bcf/d
Slide 10: Continued Debt Reduction
Continued Debt Reduction • During the first quarter, Antero successfully retired the remainder of its convertible senior notes due 2026 • Antero plans to allocate the majority of its future Free Cash Flow to continue to pay down its credit facility balance Debt Outstanding AR Maturity Schedule at 3/
Slide 11: Lowest Free Cash Flow Breakeven
Lowest Free Cash Flow Breakeven Antero has the lowest Free Cash Flow Natural Gas Price Breakeven 2024E Unhedged FCF Natural Gas Price Breakeven (1) ($/Mcf Henry Hub) Maintenance Capital Interest Expense Cash Costs + Basis - Liquids Uplift Base Dividend Appalachian Operators Haynesville Operators In
Slide 12: Antero Resources: The "Unconstrained" E&P Company
Antero Resources: The “Unconstrained” E&P Company Scale & Inventory 20+ Years of Premium Inventory Integrated Midstream Development Reliability & Visibility Firm Transport to LNG Fairway & Product Diversity Premier Pricing via Gas Sold to LNG Markets & Liquids Uplift Low Absolute Debt and Leverage F
Slide 13: Appendix
APPENDIX
Slide 14: Guidance
Guidance 2024 Guidance Ranges Net Production (Bcfe/d) 3.35 – 3.40 Net Natural Gas Production (Bcf/d) 2.155 – 2.165 Net Liquids Production (Bbl/d) 195,000 – 207,000 Net Daily C3+ NGL Production (Bbl/d) 112,000 – 117,000 Net Daily Ethane Production (Bbl/d) 73,000 – 78,000 Net Daily Oil Production (Bbl
Slide 15: Antero Resources Non-GAAP Measures
Antero Resources Non-GAAP Measures Adjusted EBITDAX: Adjusted EBITDAX as defined by the Company represents income or loss, including noncontrolling interests, before interest expense, interest income, unrealized gains or losses from commodity derivatives, but including net cash receipts or payments
Slide 16: Antero Resources Adjusted EBITDAX Reconciliation
Antero Resources Adjusted EBITDAX Reconciliation Three Months Ended March 31, 2023 2024 Reconciliation of net income to Adjusted EBITDAX: Net income and comprehensive income attributable to Antero Resources Corporation $ 213,431 45,129 Net income and comprehensive income attributable to noncontrolli
Slide 17: Antero Resources Free Cash Flow Reconciliation
Antero Resources Free Cash Flow Reconciliation Three Months Ended March 31, 2023 2024 Net cash provided by operating activities $ 343,902 261,610 Less: Net cash used in investing activities (350,804) (226,810) Plus: Payments for derivative monetizations 202,339 — Less: Proceeds from sale of assets,
Slide 18: Antero Resources Total Debt to Net Debt Reconciliation
Antero Resources Total Debt to Net Debt Reconciliation December 31, March 31, 2023 2024 Credit Facility $ 417,200 415,300 8.375% senior notes due 2026 96,870 96,870 7.625% senior notes due 2029 407,115 407,115 5.375% senior notes due 2030 600,000 600,000 4.250% convertible senior notes due 2026 26,3