Tudor, Pickering, Holt & Co Investment Banking slide image

Tudor, Pickering, Holt & Co Investment Banking

Type Curve Summary Type Curve BUR, WH/1k' (Befe) EUR, Gross Wellhead (MMcfe) Oil (Mbbl) Gas (MM) EUR, Sales / 1k" (Befe) EUR, Gross Sales (MMcfe) Oil (Mbbl) NGL (MBB) % Liquids Cond Yield (bb/MMC) Cond Yield, Dedine Period (Months) NGL Yield (bb/MM.) Type Curve Parameters Avg Lateral Length (ft) 24-Hr IP Peak Rate, Gas (Met/d) Initial Dedine Oy) B Factor Terminal Decline (y) Economic Assumptions D&C (SM) DGC / ft (SM) Fixed LOE (S/well/mo) Variable LOE, Oil ($/bb) Variable LOE, NGL (S/M) Total All-In Gas LOE (S/M) Variable LOE, Water ($/bbl) Total Opex / Mefe (S/Mete) Differential Oil ($/bbl) Differential God (S/M) Differential, NGL (% of Strip) BTU Factor (Btusef) Residual Shrink (5) Royalty (4) NPV10 at Strip (SMM) IRR at Strip (%) F&D (S/Mcle) 5 Rich Wet Gas 1.56 10,890 10,390 2.00 85 8.823 779 37% 15-8 3 75 5,500 - 8,000 59% $2,800 $6.00 ($7.50) (50.60) 85% $4.0 $0.54 TPH IB 5 Ga Condensate 1.34 9,413 8,059 1.74 226 47% 55-25 12 7,000 4,000 -7,000 1.30 $6,700 $0.957 $2,800 $5.00 $6.00 $0.89 $1.32 ($7.50) BOW $5.3 53% $0.65 S Rich Wet Gas 12K 146 2.00 37% 3 75 $10,100 $0.842 $1.24 ($7.50) (50.60) 40% 15.0% Condensate 12K 9,400 - 13,700 6,900 - 12,000 $8.0 44% 1.34 14,137 387 13,816 1.74 387 11,053 12 90 1.30 600 $10,500 $0.875 $2,800 $5.00 $6.80 80% $10.3 $50.59 Antero Disclosed" Highly Rich Gas 1.93 23,185 84 2.52 84 21,545 29% 6 40 AN $0.950 ($6.00) 50.03 95% 15.0% 47% $0.44 High Rih Gat Condensate 2.00 211 20,411 1,701 130-5 6 75 $11,400 $1,353 $1.99 ($6.00) $16.2 115% $0.42 Source: Drillinginfo, IHS, Company data. Antero assumptions based on Antero publicly disclosed information. Note: TPH IB assumes 40% ethane recovery: Antero assumes ethane rejection. (1) Assumes 100% AM water & processing fees. (2) Antero Variable LOE is $1.99 / Mcfe (applied on total equivalent production) and includes midstream and transportation expenses. (3) BTU uplift is included in the +$0.03 gas differential. (4) Economics run at 5 year strip as of 3/29/2018. Type Curve Plot -TPH RWG TC Fit Ⓒ TPH Avg Gas 12,000 Cumulative Gas Prod (MMC) 9,000 6,0:00 3,000 M ☐ . -TPH GC TC Fit ⒸTPH Avg Gas Bridging TPH curve to AR by changing well criteria as described below 1 Selected Observations TPH type well criteria Operators: All Vintage Cut-Off: 2015+ 2 CONFIDENTIAL DRAFT SUBJECT TO CHANGE 3 -AR TC Fit ⒸAR/TPH Bridge Gas WV only reports data annually Proppant Cut-Off: 1,500+ lb/ft Stage Spacing Cut-Off: <200 ft Segregated by fluid window 4 5 A type curve similar to Antero's publicly disclosed curve can be observed by filtering the data to observe: Only AR operated wells B 2016+ vintage cut-off All fluid windows TUDORPICKERING HOLT&COCHANT BANKING 91
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