Antero Resources announced a $1.2 billion revised 2012 capital budget, updated its 2012 outlook adjusted for the sale of its Arkoma Basin assets which was announced in a separate release and updated its hedge position.

2012 Capital Budget and Outlook

Antero's Board of Directors has approved a 40% increase in the company's 2012 capital budget to $1.2 billion, which includes $695 million for drilling and completion, $442 million for leasehold acquisitions and $63 million for the construction of gathering pipelines and facilities. The budget was revised primarily to fund the acquisition of additional leasehold in the Appalachian Basin and to remove post-effective date drilling costs in the Arkoma Basin due to the sale of the Arkoma Basin assets. Approximately 93% of the budget is allocated to the Marcellus Shale, 6% is allocated to the Piceance Basin and 1% is allocated to the Woodford Shale and Fayetteville Shale for drilling costs incurred prior to June 29, 2012, the expected closing date of the sale. Antero is currently operating nine drilling rigs in the Appalachian Basin and plans to add one additional rig in June 2012 and another rig by September 2012. Antero plans to continue to run one drilling rig in the Piceance Basin until the end of July 2012 when its rig contract expires.

The capital budget is expected to be funded internally from non-core asset sales including Antero's Marcellus Shale midstream asset sale completed in March 2012 and the Arkoma Basin asset sale announced today, as well as operating cash flow and the undrawn committed capacity under Antero's bank credit facility. At March 31, 2012, pro forma for the $100 million bank commitment increase previously disclosed and the newly announced Arkoma Woodford and Fayetteville Shale asset sale, Antero would have had approximately $300 million in cash and a $1.25 billion bank borrowing base after adjusting for an expected $300 million reduction to the borrowing base due to the Arkoma Basin asset sale.

As of now we are using the following key assumptions to generate our outlook for 2012, excluding the Arkoma Woodford and Fayetteville Shale assets as of June 29, 2012:

Antero Resources President and CFO Glen Warren commented, "The $445 million Arkoma Basin asset sale that was announced combined with our $375 million Marcellus Shale midstream sale which closed in March, fills the funding gap between our estimated EBITDAX and our revised $1.2 billion capital budget for 2012. The increased capital budget allows Antero to continue to consolidate acreage into our existing 238,000 net acre leasehold position in the Marcellus, of which approximately 75% contains liquids-rich processable gas. We plan to begin processing our rich gas production from the Marcellus Shale in the third quarter 2012 when MarkWest is expected to complete the 200 MMcfd Sherwood I processing plant located in the heart of our rich gas position."