Company Overview March 2014
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 developments that Antero Resources Corporation and its subsidiaries (collectively, the “Company” or “Antero”) expects, believes or anticipates will or may occur in the future are forward-looking statements. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “project,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Without limiting the generality of the foregoing, forwardlooking statements contained in this presentation specifically include estimates of the Company’s reserves, expectations of plans, strategies, objectives and anticipated financial and operating results of the Company, including as to the Company’s drilling program, production, hedging activities, capital expenditure levels and other guidance included in this presentation. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013 and in the Company’s subsequent filings with the SEC. The Company 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 our control, incident to the exploration for and development, production, gathering and sale of natural gas 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 “Risk Factors” in the Registration Statement and in the Company’s subsequent filings with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made and the Company 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.
1
ANTERO: A “PURE PLAY” ON THE MARCELLUS / UTICA Critical Mass In Two World Class Shale Plays
● Marcellus is the largest gas field in the U.S., 2nd largest in the world – Industry production approximately 14 Bcf/d today ● Antero has 35 Tcfe of fully engineered and audited 3P reserves in Marcellus and Utica Shales ● 678 MMcfe/d of average net production in 4Q 2013 including approximately 11,100 Bbl/d of liquids
Market Leading Growth
● 159% Appalachian production CAGR for 2010 to 2013 ● Most active driller in Appalachia – 20 rigs running − Most active driller in Marcellus Shale – 15 rigs running − 3rd most active driller in the Utica Shale – 5 rigs running
Industry Leading Capital Efficiency and Recycle Ratio
● Low development cost leader: $1.03/Mcfe(1) ● Industry leading growth-adjusted recycle ratio: 6.1x(1) ● Top quartile return on productive capital: 27% for 2013E
Significant Emphasis on Takeaway and Liquids Processing
● 1.6 Bcf/d of processing capacity and 1.7 Bcf/d of gas takeaway ● Liquids expected to grow from 10% of fourth quarter 2013 production to ~ 16% in 2014 due to focus on liquids-rich development
Liquidity and Hedge Position Support High Growth Story
● ~$1.2 billion pro forma available liquidity with current $1.5 billion bank commitment(2) ● 1.3 Tcfe hedged through 2019 at an average index price of $4.62/MMBtu and $96.54/Bbl
Outstanding Management Team 1. Three year average through 2012; pro forma for Arkoma and Piceance divestitures. 2. See page 23 for the derivation of 12/31/2013 liquidity.
● Over 30 years as a team (over 20 years in unconventional) ● “Shale Pioneers” – early mover and driller of over 500 horizontal shale wells in the Barnett, Woodford, Marcellus and Utica Shales
2
PREMIER UNCONVENTIONAL RESOURCE PLATFORM TOTAL – 12/31/13 RESERVES(1) Assumes Ethane Rejection Net Proved Reserves(1) Net 3P Reserves(1) Pre-Tax 3P PV-10(1)
7.6 Tcfe 35.0 Tcfe $20,362 MM
Net 3P Liquids % Liquids – Net 3P 4Q 2013 Net Production(2) - 4Q 2013 Net Liquids(2) Net Acres(3) Undrilled 3P Locations
902 MMBbls 15% 678 MMcfe/d 11,190 Bbl/d 456,000 4,778
A C B
D
A MARCELLUS SHALE
“Pure-Play” Appalachian-Focused Shale Company
Reserves(1)
Net Proved Net 3P Reserves (1) Pre-Tax 3P PV-10(1)
7.2 Tcfe 25.0 Tcfe $15,729 MM
% Liquids – Net 3P 4Q 2013 Net Production Undrilled 3P Locations
17% 621 MMcfe/d 3,068
B UTICA SHALE – LIQUIDS RICH Reserves(1)
C
Net Proved Net 3P Reserves (1) Pre-Tax 3P PV-10(1)
362 Bcfe 5.8 Tcfe $4,666 MM
% Liquids – Net 3P 4Q 2013 Net Production Undrilled 3P Locations
15% 54 MMcfe/d 759
Net Proved Reserves(1) Net 3P Reserves (1) Pre-Tax 3P PV-10(1) % Liquids – Net 3P 4Q 2013 Net Production Undrilled 3P Locations
Net Acres(3) Net Resource Undrilled Locations
2. 3.
100% operated
•
Stable acreage base − Marcellus Shale: 51% HBP, with additional 21% not expiring for 5+ years − Utica Shale: 20% HBP, with additional 79% not expiring for 5+ years
•
Portfolio flexibility across dry gas to liquids-rich and condensate windows
•
Significant investment in midstream infrastructure and secured takeaway capacity
•
Financial flexibility to pursue planned 2014 and 2015 development drilling activities
•
Full scale development underway − 20 rigs currently operating
UPPER DEVONIAN SHALE 44 Bcfe 4.2 Tcfe NM 7% 3 MMcfe/d 951
D UTICA SHALE – DRY GAS
1.
•
128,000 5.0 Tcfe 950
Additional Hedge Value •
1.3 Tcfe hedged from 1/1/2014 through 12/31/2019 at an average index price of $4.62/MMBtu and $96.54/Bbl
•
~ $760 million mark-to-market hedge value as of 2/24/2014
•
~ 50% hedged through NYMEX; 50% hedged through regional hubs
Proved, probable, and possible reserves as of December 31, 2013, assuming ethane rejection using SEC methodology and SEC pricing. Evaluations prepared by our internal reserve engineers and audited by DeGolyer & MacNaughton (D&M). Pre-Tax 3P PV-10 is a non-GAAP financial measure. Represents the average net daily production for the period October 1, 2013 through December 31, 2013. All net acres allocated to the Dry Gas Utica and Upper Devonian Shale are included among the net acres allocated to the Marcellus Shale as they are stacked pay formations attributable to the same leases.
3
STRONG TRACK RECORD OF GROWTH AVERAGE NET DAILY PRODUCTION (MMcfe/d) Woodford
Piceance
Marcellus
APPALACHIAN PRODUCTION (MMcfe/d)
Utica
800
Marcellus
950
1,000
600
522
400
950
800
Sold Woodford and Piceance
600
522
400
334 244
200 0
6 2006
31 2007
105
87 2008
2009
2010
2011
2012
2013
Piceance
0
(4)
2014E
2010
2011
2012
(4)
2013
2014E
OPERATED GROSS WELLS SPUD
Marcellus(3)
Utica
Woodford
Piceance
Marcellus
Utica
193
200 7,632
8,000 Sold Woodford and Piceance
7,000 6,000
5,017
5,000 4,000
87
235
2006
2007
680
1,141
2008
2009
162 126
125
4,283
100
3,231
2,000
175 150
85
96
119 91
Financial Crisis
66
75
3,000
0
124 30
9,000
1,000
239
200
133
NET PROVED SEC RESERVES (Bcfe)(2) Woodford
Utica
1,000
50 18
25 2010
2011
2012
(5)
(5)
2013
0
2006
2007
2008
2009
2010
2011
2012
2013
(4)
2014E
1. CAGR = Compound Annual Growth Rate. 2. Proved reserves for 2006, 2007, and 2008 represent previously effective SEC methodology. 2009, 2010, 2011, 2012 and 2013 proved reserves based on current SEC reserve methodology and SEC pricing and are audited by independent third-party engineers. 3. Includes Upper Devonian Shale proved reserves (10 Bcfe in 2012 and 44 Bcfe in 2013). 4. Per Company press release dated January 29, 2014; production mid-point of 925-975 MMcfe/d guidance. 5. 2012 and 2013 proved reserves are both in ethane rejection mode.
4
OUTSTANDING RESERVE GROWTH PROVED RESERVE GROWTH(1) (Tcfe) 10 7.6 0.4
8 6 4
4.2 0.1
2
4.1
7.2
Drivers • Successful drilling • Expanded proved footprint (HDA)
2013 Marcellus
3P RESERVE GROWTH(1)
30 20 10
35.0 4.2
5.8
21.6 4.0 17.6
0 2012 Marcellus
Drivers • 80,000 net acres added in 2013 • SSL results • Utica results
25.0
• Replaced 1,857% of 2013 production • All-in finding cost of $0.58/Mcfe • 2013 “top-down” development cost of $1.25/Mcfe • 2013 “bottoms-up” development cost of $1.10/Mcfe
FUTURE RESERVE GROWTH DRIVERS
(Tcfe)
40
• 3P PV-10 increased 82% to $21.4 billion (including hedges)
• No Utica Shale WV/PA dry gas reserves booked
Utica
50
• Proved PV-10 increased 133% to $7.0 billion (including hedges)
• Only 14% of 1P and 58% of 3P locations booked as SSL (1.73 Bcf/1,000’ type curve)
0 2012
2013 RESERVE UPDATE
Driver • Marcellus SSL completions
Complete transition to SSL type curve
• Full scale Utica program
41 wells to be completed; only 21 PUD locations booked as proved at YE 2013
• Utica increased density drilling
Drilling 2 increased density pilots in Utica
• Utica dry gas drilling
Drilling first Utica dry gas well in WV (126,000 net acres WV/PA)
• Core acreage acquisitions
$200 million leasehold budget
2013 Utica
1. 2012 and 2013 reserves assume ethane rejection.
Upper Devonian
2014 Action
5
MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW-RISK, HIGH-RETURN GROWTH PROFILE 890
834 707
ROR
100%
0%
800 600
117%
50%
400
65% Highly-Rich Gas/ Condensate
1000 1,000
200
Highly-Rich Gas
32%
21%
Rich Gas
Dry Gas
Locations
200%
100%
161
0%
ROR
250
211
182
200
169%
150
137%
100
95%
50%
0
71% of Marcellus locations are processable (1100-plus Btu)
205
150% ROR
637
Total 3P Locations
150%
UTICA WELL ECONOMICS(1)
50
56% Highly-Rich Gas/ Condensate
Highly-Rich Gas
Rich Gas
Locations
0
Dry Gas
Total 3P Locations
MARCELLUS SSL WELL ECONOMICS(1)(2)
ROR
72% of Utica locations are processable (1100-plus Btu)
$ / MMBtu NYMEX (Gas)
Large Inventory of Low Breakeven Projects(3) $7.00 $6.00 $5.00
$3.00 $2.00
$0.00
1,541
366
Locations
637
182 $2.47 $2.50 Locations
890
Locations
$3.75 $3.80 $3.81
$4.00
$1.00
1. 2. 3. 4.
3 Yr Strip - $4.38/MMBtu(4)
2,726 Antero Liquids-Rich Locations $2.60
$2.94
$3.20
$3.27
$3.51
$4.13 $4.25 $4.66
$5.05
$5.37 $5.49
$3.65 $3.66 $3.70
Locations
Locations $0.89
$1.15
$0.00 $0.00 $0.00 $0.00
`
Well economics based on 12/31/2013 3P SSL reserves and strip pricing as of 12/31/2013. A portion of these locations do not assume SSL completions. Source: Credit Suisse report dated January 2014 – Break even price for 15% after tax rate-of-return; assumes $90.00/Bbl WTI. 3-year NYMEX STRIP as of 2/24/2014.
6
LOW DEVELOPMENT COST DRIVES BEST-IN-CLASS RECYCLE RATIOS 3-Year All-in Development Costs ($/Mcfe) through 2012 $/Mcfe
$4.00 Antero
$3.00 $2.00 $1.00
$1.03
$1.14
Appalachia-Focused Peers
$1.41
$1.71
$1.57
$0.00
Source: Proved developed F&D research prepared by JP Morgan Research report dated 07/22/2013. Defined as total drilling and completion capital expenditures for the period divided by PDP and PDNP volumes added after adding back production for the period. Includes all drilling and completion costs but excludes land and acquisition costs for all companies. 1. Antero internal estimate using JP Morgan development cost methodology; excludes Arkoma and Piceance operations. 2. Antero estimate based on public information; includes Arkoma and Piceance operations.
3-Year Average Growth – Adjusted Recycle Ratio through 2012 8.0x 6.0x 4.0x
6.1x Antero
3.5x
Appalachia-Focused Peers
3.1x
2.7x
2.0x 0.0x
Source: Wall Street research. Defined as 2010-2012 average (Cash Operating Netback / PD F&D costs) x (1 + 2012-2014 production CAGR). PD F&D Costs defined as total drilling and completion capital expenditures for the period divided by PDP and PDNP volumes added after adding back production for the period per JP Morgan analysis. Includes all drilling and completion costs but excludes land and acquisition costs for all companies. 1. Antero data pro forma for Woodford and Piceance divestitures; Antero production growth based on first half of 2013 only.
7
MARCELLUS/UTICA – ADVANTAGED ECONOMICS Low-cost, liquids-rich Utica and Marcellus Shales will remain attractive in most commodity price environments
U.S. INCREMENTAL GAS SUPPLY BREAK-EVEN PRICE CURVE(1) Downside risks to breakeven costs for older shale plays once exploration resumes with higher natural gas prices?
?
?
1. Source: Credit Suisse report dated January 2014 – Break even price for 15% after tax rate-of-return; assumes $90.00/Bbl WTI
Haynesville
?
Barnett
?
Eagle Ford Shale
Niobrara
Utica Shale
SW (Rich) Marcellus Shale
NE (Dry) Marcellus Shale
Permian
Needed to make up for base declines in conventional and GOM production
Granite Wash
Over 2,700 Antero Drilling Locations
8
INTEGRATED MIDSTREAM PROCESSING AND TAKEAWAY Infrastructure and commitments in place to handle strong natural gas, NGL and oil production growth – Portfolio of firm transportation and sales and West Virginia location minimizes basis risk Producers located in northern West Virginia have seen much less basis widening and volatility than Pennsylvania producers Antero sold ~67% of its 2013 production at TCO index at NYMEX less $0.06/MMbtu prior to the Btu upgrade Antero Transport and Processing
2014
2015
Firm Transport (FT) (MMBtu/d) Firm Sales (MMBtu/d)(1)
1,369,000 330,000
1,407,000 320,000
Firm Processing Capacity (Mcf/d) Ethane FT (Bbl/d)
1,400,000 20,000
1,550,000 20,000
Leidy Basis to NYMEX Current 2015 -$2.78 -$2.17 Dom South Basis to NYMEX Current 2015 -$0.17 -$0.93
Chicago Basis to NYMEX Current 2015 +$3.23 -$0.07
TCO Basis to NYMEX Current 2015 +$0.13 -$0.43
Growing Processing Capacity Total Capacity 1,550
1,600 Seneca IV
1,400
CGTLA Basis to NYMEX Current 2015 -$0.02 -$0.09
1,200 Seneca III
(MMcf/d)
1,000 800
Seneca II
600
Seneca I
400
Sherwood III
200
Sherwood V Sherwood IV
Sherwood II Sherwood I
0
1. 2.
Appalachian Basis to NYMEX(2)
2013 % of Production Sold
Marcellus
Sherwood I
Sherwood II
Sherwood III
Sherwood IV
Utica
Seneca I
Seneca II
Seneca III
Seneca IV
2014
TCO
67%
TCO
Dom South
22%
Dom South
TETCO
5%
TETCO M2
NYMEX
6%
Sherwood V
80,000 MMBtu/d and 70,000 MMbtu/d also utilize firm transportation in 2014 and 2015, respectively. Basis data from Wells Fargo daily indications and various private quotes as of 2/24/2014.
2015
2016
2017
2018
2019 -$0.20 -$0.60 -$1.00 -$1.40 -$1.80
Leidy
-$2.20 -$2.60
9
LONG HAUL PIPELINE AND TRANSPORTATION NETWORK Antero has a leading firm transportation capacity position and is well-positioned in the southern portion of the Marcellus and Utica Shale from a gas takeaway perspective
Leidy Basis to NYMEX Current 2015 -$2.78 -$2.17
Chicago Basis to NYMEX Current 2015 +$3.23 -$0.07
Dom South Basis to NYMEX Current 2015 -$0.17 -$0.93
(1)
TCO Basis to NYMEX Current 2015 +$0.13 -$0.43
Appalachian Firm Transportation/Sales Commitment by Operator 2,000,000
Firm Sales
Firm Transportation
CGTLA Basis to NYMEX Current 2015 -$0.02 -$0.09
Mcf/d
1,600,000 1,200,000 800,000 400,000 0
(2)
AR
RRC EQT CNX COG CHK TLM STO SWN WPX RDS APC NFG
Source: Tudor Pickering & Holt research report dated 9/3/2013 and company presentations, press releases.
Note: Antero firm transportation and firm sales positions listed by pipeline in colored-coded boxes. 1. Firm transport as of year-end 2014. See Page 27 for timing of firm transportation graph. 2. Antero firm transportation as of 2/24/2014; includes 250 MMcf/d of firm sales.
10
SIGNIFICANT LONG-TERM COMMODITY HEDGE POSITION NATURAL GAS HEDGES – 2/24/2014 BBtu/d
600 400
Average Index Price ($/MMBtu)(1)
Hedged Volume
800 $4.92 $4.85
$4.91
$4.20
NYMEX Strip (2/24/2014) ($/MMBtu)
$7.00 $6.00
$4.71
$4.65
$4.34 $4.10
$4.09
$4.14
$4.46 $4.22
$4.00 $3.00 $2.00
200 0
$5.00
729
550
643
740
630
358
2014
2015
2016
2017
2018
2019
$1.00 $0.00
1. Reflects weighted average index price per annum based on volumes hedged and 6:1 gas to oil ratio. Antero has hedged ~3,000 Bbl/d for 2014, WTI hedges comprise ~1% of overall hedge book.
~$760 million mark-to-market unrealized gain as of February 24, 2014 1.3 Tcfe hedged from January 1, 2014 through year-end 2019
% HEDGE VOLUMES BY INDEX – 2/24/2014 Chicago 2% NYMEX
TCO 12% 18%
Dom South
50% 18%
CGTLA
11
ASSET OVERVIEW
12
WORLD-CLASS POSITION IN THE CORE OF THE MARCELLUS AND UTICA LIQUIDS-RICH FAIRWAYS ANTERO LIQUIDS-RICH UTICA SHALE
Utica Shale Liquids-Rich Fairway
106,000 Net Acres 18 Horizontals Completed 5 Rigs Currently Running
Utica Shale Core Area
Marcellus Shale Southwestern & Northeastern Core Areas
Marcellus Shale Liquids-Rich Fairway
ANTERO MARCELLUS SHALE SW PA
25,000 Net Acres 2 Horizontals Completed Strong Results ANTERO MARCELLUS SHALE NW WV
325,000 Net Acres (Primarily Liquids-Rich Fairway) 234 Horizontals Completed 15 Rigs Currently Running
Utica Shale Dry Gas Resource Underlies Marcellus Acreage
Upper Devonian Shale Resource Overlies Marcellus Acreage
13 Source: Company presentations and press releases.
WORLD CLASS MARCELLUS SHALE DEVELOPMENT PROJECT
Antero Has Delineated And De-Risked Its Large Scale Acreage Position 100% operated 350,000 net acres in Southwestern Core – 51% HBP with additional 21% not expiring for 5+ years 236 horizontal wells completed and online – Laterals average 7,000’ – 100% drilling success rate Net production of 621 MMcfe/d in 4Q 2013, including 8,900 Bbl/d of liquids
MHR WEESE UNIT 30-Day Rate 4-well average 9.3 MMcfe/d (31% liquids)
BLANCHE UNIT 30-Day Rate 2H: 10.0 MMcfe/d (29% liquids)
DOTSON UNIT 30-Day Rate 1H: 12.4 MMcfe/d 2H: 11.8 MMcfe/d (27% liquids)
EQT 30-Day Rate 12 Recent Wells 9.2 MMcfe/d (20% Liquids)
CHK HADLEY UNIT 24-Hour IP 9.1 MMcfe/d (32% liquids)
MOORE UNIT 30-Day Rate 1H: 9.9 MMcfe/d 2H: 10.0 MMcfe/d (17% liquids)
Sherwood Processing Plant
EQT PENN 15 UNIT 30-Day Rate 5-well average 9.3 MMcfe/d (29% liquids)
142 Horizontals Completed 30-Day Rate 10.3 Bcf average EUR 8.1 MMcf/d 6,915’ average lateral length
3,068 future drilling locations in the Marcellus (71% are processable) Operating 15 drilling rigs including 4 shallow rigs 25.0 Tcfe of net 3P (17% liquids), includes 7.2 Tcfe of proved reserves (assuming ethane rejection)
CONSTABLE UNIT 30-Day Rate 1H: 15.2 MMcfe/d (30% liquids) PRUNTY UNIT 30-Day Rate 1H: 11.0 MMcfe/d (29% liquids)
Highly-Rich/Condensate 60,000 Net Acres 637 Gross Locations
Highly-Rich Gas 100,000 Net Acres 834 Gross Locations
HINTERER UNIT 30-Day Rate 1H: 12.9 MMcfe/d (20% liquids) Rich Gas 86,000 Net Acres 707 Gross Locations
RUTH UNIT 30-Day Rate 1H: 19.3 MMcfe/d (14% liquids)
Dry Gas 104,000 Net Acres 890 Gross Locations
14 Source: Company presentations and press releases. Antero acreage position reflects tax districts in which greater than 3,000 net acres are owned. Note: Rates assume ethane rejection.
MARCELLUS – SIMPLE STRUCTURE Several regional anticlines in core area − Predictable “layer cake” geology − No faults at Marcellus level • Over 1.7 million feet (315 miles) drilled horizontally without crossing a fault − 3-D seismic not required to guide horizontal wells Regional East-West seismic line shows gentle structure at Marcellus level Allegheny Front and complex structure located many miles east of core area Favorable geology allows for longer laterals
Regional Seismic Line
Average Marcellus Lateral Lengths 8,000
7,300
Feet
6,000
4,800
4,500
4,100
4,000
100’ Contours Top Marcellus
W
Profile along regional seismic line
(time) No Data
2,000 0 Antero
EQT
Source: Company presentations.
RRC
COG
Big Moses
Arches Fork
Wolf Summit
E
Benson Rhinestreet Tully Marcellus Onondaga
15
ANTERO’S MARCELLUS SHALE TYPE CURVE SUPPORT Antero has over four years of production history to support its 1.5 Bcf/1,000’ type curve (non-SSL) Antero’s SSL type curve has been increased to 1.73 Bcf/1,000’ with only 12% higher well costs Lack of faulting and contiguous acreage position allows for drilling of long laterals ~ 7,300’ − Drives down costs per 1,000’ of lateral resulting in best-in-class development costs
Marcellus Type Curve – Normalized to 7,000’ Lateral Actual Non-SSL Production (1)
Non-SSL Type Curve Cumulative Production
1.7 Bcf/1,000' SSL Type Curve
15.0
SSL Actual Production (2)
12.0 MMcf/d
Antero Non-SSL Type Curve
9.0
Wellhead (MMcf/d) # of wells
12.0
24-Hour Peak Rate
30-Day Avg. Rate
90-Day Avg. Rate
180-Day Avg. Rate
One-Year Avg. Rate
Two-Year Avg. Rate
Three-Year Avg. Rate
14.3 236
8.1 224
6.3 221
5.3 193
4.2 131
3.1 65
2.3 26
Cumulative Bcf
15.0
9.0
6.0
6.0
3.0
3.0
0.0
0.0 0
1
2
3
4
5
6
7
8
9
10
Production Year Well Cost / 1,000’ Decreases with Lateral Length
Wellhead 24-hour Peak Rates (IPs) - 236 Wells
$1.8
30
16
$1.6
25
$1.4
20
12 8 4 0 2,000
MMcf/d
20
$MM / 1,000'
EUR, BCF
EURs Increase With Lateral Length
$1.2 $1.0 $0.8
4,000
6,000
8,000
Lateral Length, ft
10,000
$0.6 2,000
Average IP – 14.3 MMcf/d
15 10 5
4,000 6,000 8,000 Lateral length, ft
1. 236 Antero Marcellus wells normalized to time zero, production for each well normalized to 7,000’ lateral length. 2. 32 Antero Marcellus SSL wells normalized to time zero, production for each well normalized to 7,000’ lateral length.
10,000
0 1st Production from All Wells 2009 - 2013
16
MARCELLUS SINGLE WELL ECONOMICS – ASSUMES ETHANE REJECTION Marcellus SSL Well Economics and Total Locations(1)
12/31/2013 Strip Pricing & SEC Reserves WTI ($/Bbl)
C3+ NGL(2) ($/Bbl)
2014
$4.24
$95
$54
2015
$4.16
$88
$50
2016
$4.09
$83
$50
2017
$4.09
$80
$50
2018+
$4.14
$79
$50
150%
1,000
890
834
637
800
707 100% ROR
NYMEX ($/MMBtu)
117%
600
50% 0%
400
65%
200 32%
Highly-Rich Gas/ Condensate
Highly-Rich Gas Locations
21%
Rich Gas
0
Dry Gas
ROR
Classification
Highly-Rich/ Condensate
Highly-Rich Gas
Rich Gas
Dry Gas
BTU Range Modeled BTU
1275-1350 1313
1200-1275 1250
1100-1200 1150