Howard Weil 47 th Annual Energy Conference MARCH 25, 2019 Legal - PowerPoint PPT Presentation

Howard Weil 47 th Annual Energy Conference MARCH 25, 2019

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 beyond 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 2019 and long-term financial and operational outlook, impacts of hedge monetizations, impacts of natural gas price realizations, AR’s expected ability to return capital to investors and targeted leverage metrics, AR’s estimated unhedged EBITDAX multiples, future plans for processing plants and fractionators and AR’s estimated production, 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. AR 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 AR’s control, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs 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 "Item 1A. Risk Factors" in AR’s Annual Report on Form 10-K for the year ended December 31, 2018. This presentation includes certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures include (i) Adjusted EBITDAX, (ii) Free Cash Flow, (iii) Net Debt, (iv) Distributable Cash Flow, (v) Adjusted EBITDA and (vi) E&P Adjusted EBITDAX Margins. Please see “Antero Non-GAAP Measures” for the definition of each of these measures as well as certain additional information regarding these measures, including the most comparable financial measures calculated in accordance with GAAP. Antero Resources Corporation is denoted as “AR” in the presentation and Antero Midstream Corporation is denoted as “AM” or “New AM” 2

The Size and Scale to Capitalize on the Resource Antero Acreage Antero Resources Profile SW Marcellus Core Ohio Utica Core Market Cap……….……........... $2.9B Enterprise Value (1) ….………… $6.4B Corporate Debt Ratings……… Ba2 / BB+ / BBB- Leverage (2) ….......................... 2.1x 2019 Net Production Guidance 3.15 - 3.25 Bcfe/d Liquids................................ 154 -164 MBbl/d Proved Reserves…..…........... 18.0 Tcfe % Liquids (3) ......................... 37% Net Acres………….…...……… 612,000 Core Drilling Locations……….. 3,013 AR Midstream Ownership (31%) $2.2B Note: Equity market data as of 3/19/19. Reserves as of 12/31/2018. See 2019 Guidance page for production guidance details. (1) Includes ownership of $2.2 billion of Antero Midstream units. 3 (2) Leverage is pro forma net debt (pro forma for cash received in midstream simplification) divided by LTM Adjusted EBITDAX as of 12/31/18. See appendix for details. (3) Proved reserves contain 46 MMBbls of condensate, 498 MMBbls of C3+ NGLs and 554 MMBbls of ethane. Assumes approximately 415 MMBbls of additional ethane are rejected and left in the natural gas stream.

Key Investment Points Shareholders aligned Upstream Recent Company transparency & buybacks and insider 1 independent board at AM share purchase activity Closed Midstream 2 8 Simplification Deconsolidated Antero Run by Co-founders Midstream and – 9% management converted to C-corp ownership 3 Top 20 Highly economic ~1,300 locations 7 midstream liquids-rich with 25% ROR Retained 31% vehicle with A Catalyst for drilling breakeven prices interest in Antero highest DCF Multiple inventory <$2.05 NYMEX Midstream C-corp growth and Expansion lowest leverage 4 Realizing Entire FT portfolio premium 6 for gas and ME2 for Strong balance Investing within natural gas and NGLs now in service sheet with scale: cash flow in NGL pricing 2.1x leverage on 2019 (1) 5 $1.7 B of LTM Appalachia-leading EBITDAX EBITDAX margins for 6 years straight Result of integrated midstream, FT, hedging and liquids-rich development strategy 4 Note: See appendix for Non-GAAP items and reconciliation. Leverage is net debt/LTM Adjusted EBITDAX and is pro forma for midstream simplification transaction. See appendix. These materials are not to be printed, downloaded or distributed. These materials are only available to QIBs and non-US persons. 1) AR’s total capital expenditures expected to be at or less than Cash Flow From Operations.

Repositioned With Simplified Structure Midstream simplification transaction results in ownership of one publicly traded midstream entity with all midstream investors owning the same security Simplified Structure Original Public Management Private Equity Investors 9% 9% 82% NYSE: AR 309 MM shares Original Private Equity Management Investors Simplification Transaction Closed 31% Public No IDRs • No MLP 14% • 10% 45% C-corp governance • Majority of independent directors at AM • AR retains significant stake in midstream • NYSE: AM 508 MM shares 5

Shareholder-Friendly Initiatives Improve Transparency Announced deconsolidation of Antero Midstream from Antero Resources financial • statements going forward New AM is independently funded with its own $2 billion credit facility and ready access to • capital markets: AM 2027 Senior Notes yielding 5.45% (Ba2/BB+/BBB-) Previous View of Antero New View of Antero Consolidated… Deconsolidated… YE 2018 Net Debt $5.8 Bn $3.5 Bn LTM EBITDAX $2,037 MM $1,717 MM Benefits From Financial Statement YE 2018 Pro Forma Net 2.8x 2.1x Deconsolidation Debt / LTM EBITDAX Cash Flow Deficit Due to Investing within 2019 Cash Flow Midstream Capital Needs Cash Flow (1) Enterprise Value / 4.2x 2.9x 2019E EBITDAX (Peers: 4.5x) 6 Note: See appendix for Non-GAAP items and reconciliation. Peers include CNX, COG, EQT, RRC & SWN. Peer data and AR 2019E EBITDAX represents Bloomberg consensus estimates. Enterprise value as of 3/19/2019. 1) Total capital expenditures expected to be at or less than cash flow from operations.

Leading NGL Position & Integrated Strategy Drive Peer-Leading Margins

Prolific Underlying Resource Underpins Growth Antero Resources holds 40% of the core undrilled liquids-rich locations in Appalachia with attractive economics and low breakeven prices Core Liquids-Rich Appalachian Undrilled Locations (1) J H B F I 2% 5% 5% 3% 8% D 3% AR K ~40% 7% 2,043 Locations C 13% A 15% 8 Peers include Ascent, CNX, COG, CVX, Encino, EQT, GPOR, HG, RRC and SWN. Based on Antero analysis of undeveloped acreage in the core of the Marcellus and Ohio Utica Shales. Rigs as of 3/8/19. Locations as of 12/31/18.

Largest NGL Producer and the 4 th Largest Gas Producer Antero is the largest NGL producer in the U.S. and has the most exposure to NGL prices among the top producers Top U.S. C2+ NGL Producers - 2019E (1) Top U.S. Natural Gas Producers – 4Q18 (MBbls/d) (MMcf/d) 150 50% Most exposure 150 4,500 45% to NGL prices 4,000 4 th largest gas 40% 130 producer 3,500 35% in the U.S. 3,000 30% 110 2,500 Peer Avg. Pre-Hedge NGL % of 2,240 29% 25% Product Revenue 2,000 20% 90 1,500 13% 15% 1,000 70 10% 500 5% 50 0% 0 9 1) Antero C2+ NGL production represents the midpoint of 2019 guidance. Peer C2+ NGL production represents consensus as of 3/12/2019. Percentage of pre-hedge commodity revenues based on 4Q 2018 actuals.

Drilling and Completion Efficiencies Continue Drilling Days Average Lateral Feet Drilled per Day 35 8,206 6,000 30 5,169 4,562 5,000 25 Drilling Days Lateral Feet 4,000 20 18 2,901 3,000 15 12 10 8 2,000 10 5 1,000 0 - 2014 2015 2016 2017 2018 RECORD 2014 2015 2016 2017 2018 RECORD Marcellus Utica Marcellus Utica Average Lateral Length per Well Completion Stages per Day 10.0 10.0 17,445 9.0 18,000 9.0 15,075 16,000 8.0 14,000 Stages per Day 7.0 11,412 Lateral Feet 12,000 6.0 10,107 5.2 4.9 10,000 4.6 5.0 8,000 3.6 4.0 6,000 3.0 4,000 2.0 2,000 1.0 - - 2014 2015 2016 2017 2018 RECORD 2014 2015 2016 2017 2018 RECORD Marcellus Utica Marcellus Utica 10 Note: Percentage increase and decrease arrows represent change in Marcellus data from 2014 to 2018.