Antero Resources Corporation (NYSE:AR) Q4 2022 Results Conference Call February 16, 2023 11:00 AM ET Company Participants Brendan Krueger - Vice President, Finance Paul Rady - Chairman, Chief Executive Officer & President David Cannelongo - Senior Vice President, Liquids Marketing & Transportation Michael Kennedy - Chief Financial Officer Conference Call Participants Neal Dingmann - Truist Securities Subhash Chandra - The Benchmark Company Umang Choudhary - Goldman Sachs David Deckelbaum - Cowen and Company ...

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.01 AR New York Stock Exchange UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-36120 ANTERO RESOURCES COR ...

Financial Performance & Capital Allocation - Antero increased share buybacks throughout the year, with cumulative buybacks reaching $730 million as of September 30, 2022[5] - The company anticipates 2023E Free Cash Flow to be similar to 2022E levels[50] - Antero estimates a Free Cash Flow yield of approximately 20% for both 2022E and 2023E[53] Operational Highlights & Market Positioning - Antero possesses the largest inventory of sub-$2.00/Mcf breakeven locations in the Marcellus region[9] - The company has organically added over 60 premium core locations year-to-date at an average cost of less than $1 million per location, representing a discount of over 50% compared to peer acquisitions[34] - Antero has peer-leading exposure to premium markets, with improved basis differentials at key indices accessible by its firm transport portfolio[37] Production & Pricing Guidance - Antero's 2022 net production guidance is set at 32 to 33 Bcfe/d, including 22 to 225 Bcf/d of natural gas and 175000 to 185000 Bbl/d of net liquids production[65] - The company anticipates a natural gas realized price premium of $030 to $040 per Mcf relative to NYMEX[65] Environmental Performance - Antero is ahead of schedule in achieving its climate targets by 2025[54] - Antero Resources is ranked 1 for lowest GHG intensity among its peers[60]

Financial Data and Key Metrics Changes - Antero Resources generated approximately $800 million in free cash flow during Q3 2022, which was utilized to reduce debt by over $400 million and repurchase $380 million of stock [23] - Year-to-date debt reduction totaled nearly $1 billion, with a total reduction of $2.6 billion since the debt reduction program began in Q4 2019, bringing total debt down to less than $1.2 billion [8][24] - The company announced a $1 billion increase in its share repurchase program, raising the total to $2 billion, reflecting confidence in business predictability [8] Business Line Data and Key Metrics Changes - Antero's firm transportation portfolio allowed the company to achieve a $0.49 per Mcf premium to NYMEX Henry Hub in Q3 2022, despite industry-wide basis differentials [12] - The company spent $46 million on land acquisitions in Q3, adding 25 additional drilling locations at less than $1 million per location, contributing to a total of approximately 60 new drilling locations added year-to-date [11] Market Data and Key Metrics Changes - U.S. NGL production is expected to grow by 8% year-over-year from 2022 to 2023, while production in the rest of the world is anticipated to decline by 2% [18] - Propane inventories are now in line with five-year average levels, but days of supply remain 13% below the five-year average [17] Company Strategy and Development Direction - Antero Resources focuses on maintaining a strong balance sheet while returning significant cash to shareholders, with a commitment to a maintenance capital level rather than accelerating production [9][31] - The company emphasizes organic land acquisitions over larger transactions to avoid diluting equity and maintain a strong inventory position [10] Management's Comments on Operating Environment and Future Outlook - Management expects regional basis differentials to remain wide in 2023 due to pipeline capacity constraints, but Antero's firm transportation capacity will help mitigate price volatility [13][15] - The company anticipates no cash taxes in 2023, with the first cash taxes expected in 2024, allowing for continued capital returns to shareholders [24] Other Important Information - Antero has reduced its methane leak loss rate by 65% and is on track to achieve net zero on Scope 1 and Scope 2 GHG emissions by 2025 [24][25] - The company is ranked 1 for the lowest GHG intensity among its peers, highlighting its commitment to ESG initiatives [25] Q&A Session Summary Question: Expectations for higher differentials in 2023 - Management expects higher differentials for the industry but anticipates similar performance to 2022 for Antero [26][27] Question: Thoughts on accelerating production in 2023 - Management is committed to maintenance capital levels and does not plan to accelerate production despite having impressive inventory [31] Question: Free cash flow outlook and CapEx - Management expects around 10% inflation for CapEx in 2023 and plans to maintain a similar level of free cash flow usage for debt repayment and share buybacks [34][36] Question: Production expectations for 2023 - Production is expected to be similar to 2022 levels, with a slight increase due to accelerated activity in Q4 2022 [52] Question: Liquidity limitations on buybacks - There are no liquidity constraints on share buybacks, and the majority of free cash flow will be directed towards this [54] Question: Incremental ethane barrels expected in Q4 - Management expects ethane production to increase from 55,000 barrels in Q3 to approximately 75,000 barrels in Q4 [56]

Financial Performance & Strategy - Antero Resources (AR) did not add any hedges during the quarter, positioning the company for greater exposure to rising commodity prices[7] - AR targets approximately $10 billion in free cash flow through 2026, which is about 100% of its current market value[22] - The company projects a 2022 free cash flow yield of approximately 25% based on market value, which is expected to be the highest among Appalachian peers[23] - AR's net debt has been reduced by $22 billion[19] Production & Guidance - AR's 2022 net production guidance is between 32 and 33 billion cubic feet equivalent per day (Bcfe/d)[30] - Net natural gas production is projected to be between 22 and 225 billion cubic feet per day (Bcf/d)[30] - Net liquids production is expected to range from 175000 to 185000 barrels per day (Bbl/d)[30] - The company anticipates drilling 70 to 80 wells and completing 60 to 65 wells in 2022[30] Market Dynamics - The presentation suggests structurally higher natural gas prices ahead, noting that when storage is neutral with the 5-year average, historical natural gas prices have been between $250 and $325 per MMBtu, while in 2022, prices are expected to be greater than $400 per MMBtu[5] - Antero highlights a shift from a "Shale Growth Era" (2015-2019) to a "Maintenance Era" (2020 to-date) characterized by limited capital access, infrastructure constraints, and a focus on ESG initiatives[6]