Slide 1: Second Quarter 2024 Earnings Call Presentation
Second Quarter 2024 Earnings Call Presentation August 1st, 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 Completed Avg. Lateral Lengths (Feet) Spud to Kick Off Point (Days) 5.0 18,172 4.4 4.0 13,662 13,621 2022 2023 2Q 2024 2022 2023 1H 2024 Increased Completion Stages per Day… Significantly Reduces Cycle Time per Pad (1) 11.9 163 10.7 137 117 8.0 2022 2023 2Q 2024
Slide 4: Wells Continue to Outperform Peers
Antero Wells Continue to Outperform Peers Antero leads its Appalachian peers in well productivity trends, and importantly, continues to increase its liquids productivity AR Cumulative Well Productivity vs. Peers (MMcfe/1,000’) 800 +24% vs Operator Well Count Lateral Length (ft) Since peer avg Normal
Slide 5: Capital Efficiency vs. Peers
Antero Capital Efficiency vs. Peers Capital Efficiency Capital Efficiency Drivers (2024E D&C Capital/ 2024E Production) $1.40 Operational Efficiencies via $1.17 $1.20 Enhanced D&C Techniques $1.10 $1.04 $1.00 Peer Average: $0.95 Strong Well Performance $0.80 $0.76 $0.71 Longer Laterals > 11% Y-O-Y I
Slide 6: New U.S. Propane Export Records Set In Q2 2024
New U.S. Propane Export Records Set In Q2 2024 U.S. Exports of Propane/Propylene, Quarterly Average (MMBbls/d) 2.0 2021 2022 2023 2024 1.9 1H 2024: 1.73 MMBbl/d 1.8 2023 Avg: 1.62 MMBbl/d 1.7 Weekly Record 1.6 High Set on April 19, 2024 of 2.34 2022 Avg: 1.35 MMBbl/d MMBbl/d 1.5 1.4 1.3 2021 Avg: 1.
Slide 7: Holds Northeast LPG Export Advantage
Antero Holds Northeast LPG Export Advantage AR’s export capacity is not impacted by near-term U.S. Gulf Coast capacity constraints U.S. Gulf Coast LPG Export Capacity vs. LPG Exports (MMBbls/d) 3,500 Existing Export Capacity Export Capacity Additions 3,000 Near-term capacity 2,500 constraints 2,000
Slide 8: Improving U.S. LPG Export Fundamentals
Improving U.S. LPG Export Fundamentals Tight LPG Export Capacity Results in Premium Export Differentials Export Premium vs. Mont Belvieu (1) ($/Gallon) $0.25 $0.23 $0.20 $0.18 $0.15 $0.10 $0.09 $0.09 $0.08 $0.05 $0.05 $0.00 2022 2023 1Q 24 2Q 24 Jul-24 Current Source: S&P Global Commodity Insights.
Slide 9: 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 Tier 3 miles back of Henry Hub Cal ’25: ($0.26) 75% could be at $3-4/MMBtu Cal ’26: ($0.25) regional cash price, Cal ‘27: ($0.28) Henry Hub cash could find itself at periods of time comfor
Slide 10: U.S. Power Burn
U.S. Power Burn YTD 2024 average power burn is 1.4 Bcf/d higher than the prior year period U.S. Natural Gas Demand From Power Burn (2013-YTD 2024) (Bcf/d) 40.0 35.0 30.0 25.0 35.9 34.5 33.1 30.9 31.7 31.0 29.0 26.4 27.1 20.0 25.5 22.7 15.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 1H 1H 2023 2024
Slide 11: Lowest Free Cash Flow Breakeven
Lowest Free Cash Flow Breakeven 2024E Unhedged FCF Natural Gas Price Breakeven (1) 1H 2024 Unhedged Free Cash Flow / (Outspend) (2) ($/Mcf Henry Hub) ($MM) Maintenance Capital Interest Expense Cash Costs + Basis - Liquids Uplift 1H 2024 NYMEX Henry Hub: $2.07/MMBtu Haynesville Appalachian Operators
Slide 12: AR Credit Momentum
AR Credit Momentum Credit Ratings (S&P Corporate Ratings) Investment Grade 5 Upgrades Rating Achieved BBB+ Since 2020 BBB BBB- BBB- BB+ BB+ ($2.2) Bn BB BB BB- Debt reduction BB- since 2019 B+ B B B- B- CCC+ Unsecured CCC Credit Facility CCC- Dec-20 Mar-21 Jun-21 Dec-21 Mar-22 Jun-24 Antero Resource
Slide 13: Appendix
APPENDIX
Slide 14: Guidance
Guidance 2024 Guidance Ranges Net Production (Bcfe/d) 3.375 – 3.425 Net Natural Gas Production (Bcf/d) 2.170 – 2.180 Net Liquids Production (Bbl/d) 199,000 – 207,000 Net Daily C3+ NGL Production (Bbl/d) 113,000 – 116,000 Net Daily Ethane Production (Bbl/d) 76,000 – 80,000 Net Daily Oil Production (B
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: Adjusted EBITDAX Reconciliation
Antero Resources Adjusted EBITDAX Reconciliation Three Months Ended June 30, 2023 2024 Reconciliation of net loss to Adjusted EBITDAX: Net loss and comprehensive loss attributable to Antero Resources Corporation $ (83,084) (65,663) Net income and comprehensive income attributable to noncontrolling i
Slide 17: Free Cash Flow Reconciliation
Antero Resources Free Cash Flow Reconciliation Six Months Ended June 30, 2024 Net cash provided by operating activities 405,109 Less: Net cash used in investing activities (414,125) Less: Proceeds from sale of assets, net (418) Less: Distributions to non-controlling interests in Martica (42,899) Fre
Slide 18: Total Debt to Net Debt Reconciliation
Antero Resources Total Debt to Net Debt Reconciliation December 31, June 30, 2023 2024 Credit Facility $ 417,200 496,000 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 26,38