INVESTOR PRESENTATION
NOVEMBER 2023
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 activities, events or developments AR expects, believes or anticipates will or may occur in the future, such as those regarding our strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management, return of capital, expected results, future commodity prices, future production targets, realizing potential future fee rebates or reductions, including those related to certain levels of production, leverage targets and debt repayment, future earnings, future capital spending plans, improved and/or increasing capital efficiency, estimated realized natural gas, natural gas liquids and oil prices, expected drilling and development plans, projected well costs and cost savings initiatives, future financial position, future marketing opportunities, the participation level of our drilling partner and the financial and production results to be achieved as a result of the drilling partnership and the key assumptions underlying its projection and AR's environmental goals are 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 forward-looking statements speak only as of the date of this presentation. Although AR believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Except as required by law, AR expressly disclaims any obligation to and does not intend to publicly update or revise any forward-looking statements.
AR cautions you that these forward-looking statements are subject to all of the risks and uncertainties incident to the exploration for and the development, production, gathering and sale of natural gas, NGLs and oil, most of which are difficult to predict and many of which are beyond AR's control. These risks include, but are not limited to, commodity price volatility, inflation, supply chain disruption, lack of availability of drilling, completion and production equipment and services, environmental risks, drilling and completion and other operating risks, marketing and transportation risks, regulatory changes and changes in law, 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, impacts of geopolitical events and world health events, cybersecurity risks, conflicts of interest among our stockholders, the state of markets for and availability of verified carbon offsets and the other risks described under the heading "Item 1A. Risk Factors" in AR's Annual Report on Form 10-K for the year ended December 31, 2022. Any forward-looking statement speaks only as of the date on which such statement is made and AR 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.
This presentation also includes AR non-GAAP measures which are financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). Please see "Antero Non-GAAP Measures" for definitions of these measures as well as certain additional information regarding these measures.
Antero Resources Corporation is denoted as "AR" in the presentation and Antero Midstream Corporation is
denoted as "AM", which are their respective New York Stock Exchange ticker symbols.
Antero Resources (NYSE: AR) | 2 |
Antero Resources: The "Unconstrained" E&P Company
Scale & Inventory
20+ Years of Premium Inventory
Peer-Leading Capital Efficiency
Drilling Efficiencies + Strong Well Performance = Lower Maintenance Capital
Firm Transport to LNG Fairway & Product Diversity
Premier Pricing via Gas Sold to LNG Markets & Liquids Uplift
Low Absolute Debt and Leverage
Flexibility Allows for Greater Commodity Price Exposure
Integrated Midstream
Development Reliability & Visibility
Photo of Cheat Canyon, WV. Conservation efforts supported by Antero Resources.
Antero Resources (NYSE: AR) | 3 |
AR Has the Largest Low Cost Inventory
Appalachia Sub-$2.75/Mcfe Inventory
(Years - Locations Based on 3rd Party Data)
Years
25 | |
Includes $17 Bn of Acquisitions Since 2021 | |
22 | (six separate transactions) |
20 | |
1616
15 Includes
~$340 MM | 12 | ||
of Organic | |||
10 | Leasing | ||
Since 2021 | |||
6 | 5 | ||
5 | |||
-
AR | P1 | P2 | P3 | P4 | P5 |
Peer rationale for M&A: | Inventory | Gulf Coast/LNG market access | Balance Sheet Repair |
Antero Resources (NYSE: AR) Source: Enverus - September 2023.rd4 Note: Peers include CHK, CNX, EQT, RRC and SWN. Represents sub-$2.75/Mcfe inventory that meets a 10% IRR threshold as defined by 3 party source.
Drilling and Completion Efficiencies
Increasing Pumping Hours per Day…
20.0 | 22.2 | |
18.0 | 17.1 | |
16.0 | 2023 | |
14.0 | 11.7 | |
12.0 | ||
June | ||
10.0 | ||
8.0 | ||
6.0 |
Increases Completion Stages per Day…
Company | 16.0 Stages |
Record | |
10.8 Company
Record
2023 | |
5.8 | March |
2019 2020 2021 2022 YTD | Daily | 2019 2020 2021 2022 | YTD | Daily |
2023 | Record | 2023 | Record | |
Significantly Reduces Cycle Time per Pad (1) |
427 | |||||
Company | |||||
Record (2) | |||||
160 | 129 Days | ||||
June | |||||
2023 | |||||
2019 | 2020 | 2021 | 2022 | YTD 2023 | Record |
Antero Resources (NYSE: AR) | Note: Percentage increase or decrease arrows represent change from 2019 to YTD 2023 as of 9/30/2023. | 5 | |
1) | Cycle time represents days from surface spud date to first production date. | ||
2) | Cycle time record excludes single "step out" wells or wells drilled and completed on pads with 5 wells or less. |
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 | Operator | Well Count | Lateral Length (ft) | Since | +20% vs | ||
Equivalent | 700 | 252 | 12,415 | 2020 | peer avg | ||
600 | Peer Average (1) | 639 | 12,271 | ||||
Cumulative Gas | |||||||
(MMcfe/1,000') | 500 | Peer | |||||
Average (1) | |||||||
400 | |||||||
Normalized | 300 | ||||||
200 | |||||||
100 | |||||||
0 | |||||||
0 | 6 | 12 | 18 | 24 | |||
Months On Line |
Source: Wellhead production from Enverus public data. Well BTU categorization based on Antero internal BTU mapping data. Processing shrink and NGL yields consistently assigned across all operators based on assigned BTU buckets.
Note: Production data cutoff at 24 months. Peers limited to SW Marcellus Operators with a minimum of 120 wells TIL since 2020. Represents cumulative sum of the average rate-time profile. Assumes no processing for wells with less than 1100 BTU (zero C3+ yield). Represents Enverus lateral lengths for peer average and internal lateral lengths for AR data.
Antero Resources (NYSE: AR)
1) Peers include EQT, RRC and SWN (SW Marcellus wells). | 6 |
Increased Production Guidance
Drilling and completion efficiencies combined with strong
well performance translates to higher production
2023 Production Guidance (MMcfe/d) | Maintenance Capital ($MM) | |
3,275
3,400
4%
Increase
$925
$875
Material
Reduction
Initial Guidance | Updated Guidance | 2023 Guidance | 2024E | |
Range | ||||
Antero Resources (NYSE: AR) | 7 | |||
Low Decline Rate Leads to Lower Maintenance Capital
Antero Decline Rates vs Peers (Percent Decline)
1-Year3-Year5-Year
5-yr
56%
3-yr
44%
1-yr
23%
Peer 1 | Peer 2 | Peer 3 | Peer 4 | Peer 5 | Peer 6 | Peer 7 | Peer 8 | |
Antero Resources (NYSE: AR) | Source: April 2023 Enverus Intelligence Research note. | 8 | ||||||
Note: Represents U.S. Onshore Boe annual decline rates. Peers include Aethon, Ascent, CHK, CNX, CRK, EQT, RRC and SWN. | ||||||||
Antero Capital Efficiency vs. Peers
D&C Capital vs. Production
+25% | Most Capital Efficient | 10% | ||||||||||
Growth: | ||||||||||||
8% | ||||||||||||
DD&C | 6% | |||||||||||
4% | ||||||||||||
Average | ||||||||||||
2% | ||||||||||||
0% Production Growth | 0% | |||||||||||
Least Capital Efficient | Peer 2 | Peer 4 | ||||||||||
Peer 1 | -2% | |||||||||||
Peer 5 | -4% | |||||||||||
-6% | ||||||||||||
Peer 3 | -8% | |||||||||||
20% | 15% | 10% | 5% | 0% | ||||||||
50% | 45% | 40% | 35% | 30% | 25% | |||||||
% Change in D&C Capital (LTM 3Q23 / LTM 3Q22) | ||||||||||||
Higher Capital | Lower Capital |
% Change in Production (3Q23 / 3Q22) | Production Growth Production Decline |
Antero Resources (NYSE: AR) divestiture. EQT adjusted for Tug Hill acquisition. | 9 |
Note: Peers include CHK, CNX, EQT, RRC and SWN. Represents actual production volumes and capital through 3Q23. CHK adjusted for Eagle Ford shale |
Antero Capital Efficiency vs. Peers
While targeting a maintenance capital program, Antero's volumes grew 9% compared to the year ago period while the peer group declined by 3%
Year-Over-Year Change in Production
9%
9% growth driven by capital
efficiency gains and well productivity
0% | |||
0% | -2% | ||
Peer Average: (-3%) | -4% |
-7%
P1 | P2 | P3 | P4 | P5 |
Adjusted for volume growth, AR has the lowest CAPEX per Mcfe of its peer group, at just $0.57/Mcfe
Capital Efficiency (LTM D&C Capital / 3Q 2023 Annualized Production)
Peer Average: $1.02 | $1.12 | $1.18 | $1.30 | |||||
$0.57 | $0.71 | $0.74 | $0.81 | |||||
P2 | P5 | P1 | P4 | P3 | |
Flat Production(1) | Actual | ||||
Note: Peers include CHK, CNX, EQT, RRC and SWN. Represents actual production volumes and capital through 3Q23. CHK adjusted for | 10 | ||||
Antero Resources (NYSE: AR) Eagle Ford shale divestiture. | |||||
1) | Represents AR's D&C Capital per Mcfe with flat year-over-year production assuming $1 million of capital per 1 MMcfe/d of production. |
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Antero Resources Corporation published this content on 06 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 November 2023 12:49:06 UTC.