DEAR STAKEHOLDERS

Following a year of global challenges and disruption, we entered 2021 with a renewed sense of Purpose — a focus on both People and Performance — to create stakeholder value. Our company continues to prioritize employee health and well-being and delivery of the low-emission hydrocarbons the world needs. We are proud of the role we play in providing the energy necessary to power the world economy and to heat our communities.

As the second largest natural gas liquids (NGLs) producer and the fourth largest natural gas producer in the U.S., we celebrate and honor the hard work and dedication of our talented employees. Throughout Antero's history, our team has shown up every day recognizing that the work we do, and the energy we produce, are essential. We respond with flexibility, grit and determination which, combined with our employees’ skills and perseverance, allow us to continue our operations safely and without interruption.

PEOPLE ARE OUR PURPOSE

Our work creates well-paying jobs, provides consistent royalty payments, invests in infrastructure and improves community resources. Because of our targeted operating portfolio, we are able to build long-term relationships with our neighbors, recognizing that we are dedicated to Appalachia for years to come. Partnering with the people of Appalachia has been our commitment for more than 10 years and we will continue to make a difference by respecting its people and land for generations to come.

Looking to the future, we are encouraged by the impact we can make. From a performance perspective, we are maintaining production this year despite a reduced capital budget, resulting in significant free cash flow. We are also well positioned to capitalize on strong liquids pricing due to our market share and global export opportunities. In 2021, we are on track to sell more than 50% of our NGLs and 30% of our natural gas into the global markets.

This ability to sell our product globally not only impacts our bottom line, but fulfills our purpose of positively impacting people with the energy we produce. According to the World Bank, 2.8 billion people are without access to clean cooking fuels and nearly 800 million people do not have access to electricity.

Energy poverty is a global crisis that can be solved. As one of the most integrated energy producers in the U.S., we are playing a significant role in distributing a more accessible, affordable and safer global energy supply to serve our most vulnerable populations.

AN OPERATOR OF CHOICE, A CULTURE OF CONTINUOUS IMPROVEMENT

As an operator and employer of choice, we are committed to a culture of continuous improvement for our stakeholders. Innovation, collaboration and a drive to do better enabled us to improve our safety record and recycle or reuse more than 84% of our produced water.

Our ESG Board Committee — a group of dedicated leaders who guide and collaborate with executives on ESG trends, issues and concerns — is deeply committed to ensuring that we are at the forefront of ESG opportunities. This committee was integral in developing our 2025 goals and will continue to be essential in influencing our executive compensation. We are grateful for the expertise these committee members share with our management team and the perspectives they provide to strengthen our company.

OUR ROLE IN IN A LOW-CARBON FUTURE

Delivering energy to drive a recovering global economy is a responsibility that we take seriously, recognizing our role in creating a low-carbon future. We believe natural gas — as the least greenhouse gas (GHG) intensive hydrocarbon— is key to the energy transition and to our ability to address the risks associated with climate change.



We continue our commitment to lowering GHG emissions across our operations — advancing our track record of industry-leading environmental results. While other operators struggle to manage their flaring activity, we eliminated routine flaring from our operations and have not routinely flared produced natural gas since the infancy of our Marcellus and Utica Shale projects. Last year, we also set aggressive targets to achieve by 2025, including reducing our already low methane leak loss rate and reaching net zero carbon emissions.

Supportive of these goals is our pilot program with Project Canary, a leader in providing independent certification of Responsibly Sourced Gas (RSG). Project Canary’s TrustWell certification process provides independent data verifying our work to mitigate emissions and reduce environmental impacts across multiple operating sites. By using a third party to review our processes and procedures, we aim to validate the high environmental standards by which we produce natural gas.

Also related to our climate efforts, we expanded our ESG reporting to include a climate-risk analysis in accordance with the Task Force on Climate-Related Financial Disclosures (TCFD)’s framework. By increasing our transparency around climate risk, we inform our stakeholders about how climate change could impact our business, while reiterating our emissions reduction strategies and the benefits of natural gas for a low-carbon future.

A LEGACY OF RESPONSIBLE OPERATIONS

Natural gas is critical to delivering low-carbon, affordable fuel to an expanding global economy. In addition, NGLs are the way forward in reducing world energy poverty and improving the lives of billions of impoverished people around the globe.

It is with pride, gratitude and hard work that we support this powerful mission with our performance every day. But bigger than the daily operations of natural gas production are the people we impact. These lives — made better because of our work — will be our enduring legacy. Thank you to our employees, directors, partners and stakeholders for supporting our success and creating a legacy of responsible operations.

Signature
Paul M. Rady

Chairman, President, CEO
and Co-Founder