Antero Resources (NYSE: AR) 2 2026 Guidance 2026 Guidance & Hedge Position 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 financial s ...

Financial Data and Key Metrics Changes - Berry Corporation reported first quarter oil and gas sales of $148 million, with a realized oil price at 93% of Brent [18] - Adjusted EBITDA for the first quarter was $68 million, and operating cash flow was $46 million [18] - The company generated $7 million in free cash flow after working capital changes [18] - Total debt at the end of the quarter was $439 million, with a leverage ratio improved to 1.37 times [21] - Liquidity increased to $120 million, and the company paid down $11 million of debt during the quarter [21] Business Line Data and Key Metrics Changes - In California, production averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime [8] - The company drilled twice as many wells in Q1 compared to Q4 of the previous year [8] - The thermal diatomite projects are expected to generate rates of return exceeding 100% [9] Market Data and Key Metrics Changes - Approximately 73% of oil production is hedged at $75 per barrel for the remainder of the year [6] - The average floor price for hedged production was raised by $6 per barrel for 2,300 barrels per day in 2026 and 2027 [19] Company Strategy and Development Direction - Berry Corporation aims to generate sustainable free cash flow, reduce debt, and return dividends while investing in high-return development projects [12][23] - The company is focused on executing its 2025 development projects and building inventory for 2026 [6][16] - The management emphasized the importance of navigating the regulatory environment in California as a competitive advantage [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and reaffirmed full-year guidance [5] - The company highlighted a strong hedge position that protects cash flow [6] - Management noted a constructive shift in California's regulatory environment, which could facilitate increased in-state production [15] Other Important Information - Berry Corporation reported zero recordable incidents and zero lost time incidents during the first quarter, reflecting a commitment to safety and environmental standards [14] - The company plans to publish a comprehensive report on its performance metrics and emissions data in the summer [14] Q&A Session Summary Question: Scalability of the thermal diatomite program - Management indicated significant running room in the thermal diatomite program, with about 25 categorized as PUDs and additional future locations for drilling [27][28] Question: Initial production potential in Uinta - Management shared that the four well pad in the Uinta Basin was drilled ahead of schedule, with fracking operations expected to commence in June and initial production anticipated in August [30][32] Question: Navigating the regulatory environment in California - Management attributed their success in growing California production to their experienced teams and innovative strategies, particularly in sidetrack drilling [36][38] Question: Timeline for production data from Uinta - Management clarified that production from the newly drilled wells is expected to begin in late July, with significant production numbers anticipated in August [41]

Core Viewpoint - Pieridae Energy Limited reported strong financial results for Q1 2025, with a production of 22,584 boe/d and a Net Operating Income (NOI) of $32.6 million, reflecting proactive management decisions and a recovery in natural gas prices [1][2][5]. Financial Performance - The company generated a Funds Flow from Operations of $21.7 million, equating to $0.07 per basic and fully diluted share [5]. - Operating expenses were $44.0 million, down 15% from Q1 2024, due to production shut-ins and cost structure reductions [5]. - The company incurred a net income of $2.7 million, compared to a loss of $20.9 million in Q4 2024 [6]. Production Metrics - Total production was 22,584 boe/d, with 78% being natural gas, down 35% from Q1 2024 due to voluntary shut-ins and an unplanned outage at the Jumping Pound gas plant [5][6]. - Natural gas production was 105,338 Mcf/d, while condensate and NGLs production were 2,454 bbl/d and 2,574 bbl/d, respectively [4][5]. Strategic Initiatives - The company restarted 1,800 boe/d of previously shut-in dry gas volumes in response to improved AECO natural gas prices [2]. - A hedge monetization transaction generated proceeds of $10.2 million, which were used to reduce debt [2][5]. - The company proposed a name change to Cavvy Energy Ltd. to align with its corporate strategy, pending shareholder approval [5]. Outlook and Guidance - The 2025 production guidance remains unchanged at 23,000 to 25,000 boe/d, reflecting ongoing shut-ins in Central Alberta [11][14]. - The company aims to strengthen its balance sheet, increase gas processing facility utilization, and reduce operating expenses [9][19]. - Specific priorities for 2025 include growing third-party gathering and processing revenues and optimizing infrastructure [15][19]. Hedging Strategy - Pieridae has hedged 110,000 GJ/d of its 2025 natural gas production at a weighted average fixed price of $3.32/GJ [16]. - The company also hedged 1,679 bbl/d of its 2025 condensate production with a weighted average floor price of CAD$84.42/bbl [16]. Capital Expenditures - The capital expenditure guidance for 2025 is set between $25 million and $30 million, focusing on high-impact well and facility optimization projects [18].

Financial Data and Key Metrics Changes - In 2024, the company achieved a 180% year-on-year increase in oil production, with the Permian contributing over 60% to cash flows [7][10] - Proved reserves grew approximately 20% year-over-year despite pricing headwinds [18] - The company reported net revenue interest production in Pennsylvania at approximately 30 million cubic feet a day, up 85% from the daily average during 2024 [12] Business Line Data and Key Metrics Changes - The Permian business saw significant growth with an investment of $24 million, leading to increased production and undeveloped acreage [14] - In the Marcellus, production curtailments were estimated at 20% to 25% of net total, but the environment improved in the fourth quarter, leading to a strong start in 2025 [9][13] - The company established a new project area in Alberta, Canada, with a joint venture that adds multi-year economic inventory for approximately a $7 million drilling carry [7][16] Market Data and Key Metrics Changes - The Marcellus experienced sub $2 per Mcf net wellhead pricing, but pricing improved significantly in early 2025, with realized prices over $3.90 per Mcf [9][12] - The gathering system throughput in the Marcellus is up over 50% from the average in the third quarter of 2024 [13] Company Strategy and Development Direction - The company remains committed to its fixed dividend while exploring opportunities to reduce share count [10] - Future development in the Permian is expected to pick back up, with significant undeveloped acreage available [14][15] - The company is focused on capital allocation across multiple project areas, including a new project in Alberta [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Marcellus market, indicating a strong start to 2025 and improved cash flows [11][13] - The company is in a strong position with over $50 million of liquidity and strong free cash flows [17] Other Important Information - The operator in the Marcellus has provided clarity on a multi-year plan, which includes development scheduling for 2026 and beyond [41] - The company has not been active in share repurchases year-to-date but remains opportunistic in its capital allocation strategy [49] Q&A Session Summary Question: How many wells were drilled and completed in Alberta in 2024? - The company drilled 2 gross wells, 1 net, in the small project called Killam, and 2 gross wells in the larger Garrington area [28][30] Question: How many wells will be drilled in the larger area in 2025? - There are plans for another 2 wells to be drilled in the larger area over the remainder of 2025 [31][32] Question: What are the expectations regarding the Marcellus operator's plans into 2026? - The operator's multi-year plan includes development scheduling for 2026, 2027, and 2028, which has been included in the reserve report [41][42] Question: What is the company's hedge position for natural gas? - The company is hedged through October at roughly 30% of gas production, with plans to be aggressive in the winter months [46][47] Question: Has the company been active in share repurchases year-to-date? - The company has not been active in share repurchases but considers it an option for capital allocation [48][49]