Antero Resources Announces 2014 Capital Budget and Guidance

         Antero Resources Announces 2014 Capital Budget and Guidance

PR Newswire

DENVER, Jan. 29, 2014

DENVER, Jan. 29, 2014 /PRNewswire/ --

  oCapital budget for 2014 is $2.6 billion including $1.8 billion for
    drilling and completion, $600 million for expanding midstream facilities
    and $200 million for core leasehold acreage acquisitions
  oNet daily production for 2014 is projected to average 925 to 975 MMcfe/d,
    a 75% to 85% increase over estimated 2013 average net daily production
  oNet daily liquids production for 2014 is projected to average 24,000 to
    26,000 Bbl/d (16% liquids)
  oPlan to operate an average of 18 drilling rigs between the Marcellus and
    Utica Shales in 2014

(Logo: http://photos.prnewswire.com/prnh/20131101/LA09101LOGO)

Antero Resources (NYSE: AR) ("Antero" or the "Company") today announced that
it expects to invest approximately $2.6 billion in 2014 for drilling and
completion, midstream and leasehold activities. The Company expects its
average 2014 production to grow organically by 75% to 85% over estimated 2013
average net daily production and is guiding to an average 2014 net production
range of 925 to 975 MMcfe/d.

2014 Capital Budget

Antero's capital budget for 2014 is $2.6 billion and includes $1.8 billion for
drilling and completion, $600 million for the expansion of midstream
facilities, including $200 million for fresh water distribution
infrastructure, and $200 million for core leasehold acreage acquisitions.

All of the $1.8 billion drilling and completion budget represents
Antero-operated drilling, with virtually all allocated to drilling
liquids-rich horizontal locations utilizing shorter stage length completions.
Approximately 75% of the drilling and completion budget is allocated to the
Marcellus Shale and the remaining 25% is allocated to the Utica Shale. During
2014, Antero plans to operate an average of 14 drilling rigs in the Marcellus
Shale, including three intermediate rigs that drill the vertical section of
some horizontal wells to kick-off point, and 4 drilling rigs in the Utica
Shale. Antero expects to spud 144 horizontal wells in the Marcellus Shale
with an average lateral length of 7,700 feet and 49 horizontal wells in the
Utica Shale with an average lateral length of 7,300 feet. The Company plans
to complete 140 wells in the Marcellus Shale and 41 wells in the Utica Shale
in 2014.

Antero has deep Utica rights on approximately 126,000 net acres of its West
Virginia Marcellus acreage position and expects to drill and complete an
exploratory Utica Shale dry gas well in the second half of 2014. Antero also
plans to drill two three-well density pilots in the liquids-rich Utica Shale
in Ohio with one using a 500 foot interlateral distance and the other using a
750 foot interlateral distance. Antero drilled and completed a 500 foot
interlateral distance pilot in the liquids-rich Utica in 2013 with encouraging
results to date. Antero's estimated Utica reserves and identified drilling
locations are currently booked using 1,000 foot interlateral distance between
horizontal laterals. A series of successful increased density pilots could
result in a material increase in estimated reserves and identified drilling
locations on all or a portion of Antero's Utica Shale acreage.

The 2014 midstream budget includes an additional 100 miles and 43 miles,
respectively, of low-pressure and high-pressure gathering pipelines in the
Marcellus and Utica Shale. The budget also includes the addition or expansion
of five compressor stations in the Marcellus Shale with 305 MMcf/d of
additional compression capacity. Further, the midstream budget includes 73
miles of permanent pipeline for Antero's fresh water distribution system. The
midstream budget assumes the completion of an initial public offering of a
master limited partnership ("MLP") owning substantially all of Antero's
midstream assets during 2014.

In 2014, Antero plans to continue consolidating acreage in the core of the
southwestern Marcellus liquids-rich play and the core of the Utica
liquids-rich play in southern Ohio. The 2014 capital budget includes $200
million for acreage additions.

The following is a comparison of the 2013 capital budget to the 2014 capital
budget.

Budget Comparison                              2013    2014
Drilling & Completion ($MM)                    $1,550  $1,800
Midstream ($MM)                                $650    $600
Land ($MM)                                     $450    $200
Total                                          $2,650  $2,600
Average Drilling Rigs                          16      18

Wells Spud                                     157     193

Wells Completed                                114     181
Low-Pressure Gathering Line Additions (Miles)  54      100

High-Pressure Gathering Line Additions (Miles) 60      43
Compression Capacity Additions (MMcf/d)        85      305
Permanent Water Pipeline Additions (Miles)     97      73



The capital budget is expected to be funded through internally generated
operating cash flow and available borrowing capacity under Antero's bank
credit facility, as well as the anticipated proceeds from an initial public
offering of an MLP owning substantially all of the Company's midstream
assets.

2014 Guidance

Assuming the execution of the $2.6 billion capital plan discussed above, the
Company is using the following key assumptions in its projections for 2014:

2014 Guidance
Total Net Production                              925 – 975 MMcfe/d
 Net Natural Gas Production                      780 – 820 MMcf/d
 Net Liquids Production                          24,000 – 26,000 Bbl/d
Cash Production Expense(1)                        $1.40 – $1.50/Mcfe
G&A                                               $0.25 – $0.30/Mcfe
Natural gas realized price premium to NYMEX(2)    $0.00 – $0.10/Mcf
Natural gas liquids realized price                50% to 52% of WTI
Oil realized price differential to NYMEX          $(10.00) - $(12.00)/Bbl
(1) Includes lease operating expenses, gathering, compression and
transportation expenses and production taxes.

(2) Antero's processed tailgate and unprocessed dry gas production is
greater than 1000 Btu on average.



Antero's 2014 total net production, including liquids, is expected to average
in a range of 925 to 975 MMcfe/d which would represent a year over year
increase of 75% to 85% compared to our estimated 2013 average net production.
Net liquids production is expected to increase to an average of 24,000 to
26,000 Bbl/d in 2014, primarily driven by increasing development of
liquids-rich areas of the southwestern core in the Marcellus Shale and a full
year of development in the liquids-rich core area of the Utica Shale in
southern Ohio.

Antero Resources is an independent oil and natural gas company engaged in the
acquisition, development and production of unconventional oil and liquids-rich
natural gas properties located in the Appalachian Basin in West Virginia, Ohio
and Pennsylvania. Our website is located at www.anteroresources.com.

This release includes "forward-looking statements". Such forward-looking
statements are subject to a number of risks and uncertainties, many of which
are beyond Antero's control. All statements, other than historical facts
included in this release, are forward-looking statements. All forward-looking
statements speak only as of the date of this release. Although Antero 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.

We caution 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, 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, NGLs 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 our Final Prospectus dated October 9, 2013 on file
with the Securities and Exchange Commission (File No. 333-189284).

SOURCE Antero Resources

Website: http://www.anteroresources.com
Contact: Michael Kennedy - VP Finance, (303) 357-6782 or
mkennedy@anteroresources.com
 
Press spacebar to pause and continue. Press esc to stop.