Skip to main content October 2015 Partnership Overview – Antero Midstream Partners Lp Investor Presentation | Shale Experts
Loading...
Pm

October 2015 Partnership Overview – Antero Midstream Partners Lp

Antero Midstream Partners Lp · Oct 13, 2015 · 50 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 1
    Partnership Overview October 2015
  2. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 2
    ANTERO MIDSTREAM 2015 GUIDANCE Key Operating & Financial Assumptions Key Variable Initial Guidance(1) Updated Guidance(2) Adjusted EBITDA (MM) 150 - 160 180 - 190 Distributable Cash Flow (MM) 135 - 145 160 - 170 Year-over-Year…
  3. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 3
    GROWTH HIGH GROWTH MIDSTREAM THROUGHPUT Antero Midstream is targeting 28% to 30% annual distribution growth through 2017 Distribution Per Unit (Left Axis) DCF Coverage - (Right Axis) 0.50 1.4x 1.3x 0.45 1.2x 1.2x 0.40 0.9x…
  4. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 4
    LEADING UNCONVENTIONAL MIDSTREAM BUSINESS MODEL High Growth Sponsor Largest Dedicated Core Drives AM Throughput Liquids-Rich Acreage and Distribution Growth Position in Appalachia 2 3 Growth Liquids- Premier E&P Operator…
  5. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 5
    SPONSOR STRENGTH LEADERSHIP IN APPALACHIAN BASIN Top Producers in Appalachia (Net MMcfe/d) 2Q 2015(1)(2) Top 12 U.S. Natural Gas Producers (Net MMcf/d) 2Q 2015(1) 1,800 3,500 1,600 3rd Largest Appalachian Peers 3,000 1,400…
  6. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 6
    SPONSOR STRENGTH MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL 12/31/14 RESERVES Assumes Ethane Rejection Net Proved Reserves 12.7 Tcfe Net 3P Reserves 40.7 Tcfe Pre-Tax 3P PV-10 22.8 Bn 1H 2015 Avg SW Marcellus & Utica(2)…
  7. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 7
    GROWTH HIGHEST GROWTH LARGE CAP E&P Anteros 40%+ production growth guidance for 2015 leads the U.S. large cap E&P industry and drives AM growth(1) 45% 40%+ 35% 27.4% 26.3% 26.2% 25% 22.8% 19.7% 15.2% 15% 12.5% 11.7%…
  8. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 8
    GROWTH HIGH GROWTH MIDSTREAM THROUGHPUT Low Pressure Gathering (MMcf/d) High Pressure Gathering (MMcf/d) 1,400 Utica Marcellus Utica Marcellus 1,600 1,200 1,038 1,400 935 965 1,197 1,216 1,134 1,000 1,200 738 908 800 1,000 531…
  9. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 9
    LIQUIDS-RICH LARGEST CORE POSITION Antero has over 3,000 undeveloped rich gas locations with an average lateral length of 6,800 in its 3P reserves Antero has the largest core liquids- rich position in Appalachia with 371,000 net…
  10. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 10
    SUSTAINABLE BUSINESS MODEL AR MULTI-YEAR DRILLING INVENTORY SUPPORTS LOW RISK, HIGH RETURN GROWTH PROFILE Antero has reduced average well costs for a 9,000 lateral by 16% in the Marcellus and 18% in the Utica as compared to 2014 well…
  11. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 11
    HIGH VISIBILITY PROJECTED MARCELLUS MIDSTREAM BUILDOUT 2014 2015 2016 2017 2018+ 11
  12. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 12
    HIGH VISIBILITY PROJECTED UTICA MIDSTREAM BUILDOUT 2014 2015 2016 2017 2018+ 12
  13. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 13
    MITIGATED COMMODITY RISK 100% FIXED FEE RICH TO DRY (1) Contract Mix Commodity Commodity Based Commodity Based Based Commodity Fixed Fixed Fixed Based Fee Fee Fee 100% 100% 100% Fixed Fixed Fixed Fee Fee Fee 94% 97%…
  14. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 14
    MITIGATED COMMODITY RISK FIRM TRANSPORTATION & SALES PORTFOLIO Antero Resources Transportation Portfolio Antero Resources has built the largest firm transportation portfolio with 4.85 BBtu/d by year end 2018 BBtu/d 5.0 AR Gross Gas…
  15. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 15
    HEDGING INTEGRAL TO BUSINESS MODEL Hedging is a key component of Anteros business model which includes development of a large, repeatable drilling inventory Antero has realized almost 1.5 billion of gains on commodity hedges since 2009…
  16. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 16
    VALUE CHAIN OPPORTUNITY FULL MIDSTREAM VALUE CHAIN Well Pad Condensate Gathering End Stabilization Users (Miles) YE 2014 YE 2015E Compression (Miles) YE 2014 YE 2015E Utica 16 19 Marcellus 62 76 Low Pressure Gathering Utica 35…
  17. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 17
    STRONG FINANCIAL POSITION STRONG BALANCE SHEET AND FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM)(4) 6/30/15 Debt Liquid Non-E&P Assets 6/30/15 Debt Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type…
  18. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 18
    STRONG FINANCIAL POSITION SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (6/30/2015)(1) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5x Debt/EBITDA Cap) Revolver Capacity(2)…
  19. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 19
    TOP TIER DISTRIBUTION GROWTH & HEALTHY COVERAGE 3Year Expected Distribution Growth Rate and DCF Coverage(1) 30% 2.00x 1.8x 1.80x 25% 1.6x 1.5x 1.6x 1.60x 1.3x 1.2x 1.40x 1.2x 20% 1.2x 1.2x 1.3x 1.20x 1.0x 15% 1.00x…
  20. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 20
    ATTRACTIVE VALUE PROPOSITION Attractive appreciation potential on a relative basis 10% 9% CNNX R-squared = .83 8% MWE 7% 6% AM - Current Yield: 3.18% Yield (%) WES Price: 23.87 5% TEP 4% MPLX AM - Implied Yield:…
  21. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 21
    Antero Midstream (NYSE: AM) Asset Overview 21
  22. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 22
    ANTERO MIDSTREAM ASSET OVERVIEW Midstream Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 434,000 net leasehold acres for gathering and…
  23. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 23
    ANTERO MIDSTREAM ASSETS RICH GAS MARCELLUS Marcellus Gathering & Compression Provides Marcellus gathering and compression services Liquids-rich gas is delivered to MWEs 1.2 Bcf/d Sherwood processing complex Significant growth…
  24. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 24
    ANTERO MIDSTREAM ASSETS RICH & DRY GAS UTICA Utica Gathering & Compression Provides Utica gathering and compression services Liquids-rich gas delivered into MWEs 800 MMcf/d Seneca processing complex Condensate delivered to…
  25. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 25
    ANTERO INTEGRATED WATER BUSINESS AM has acquired ARs integrated water business for 1.05 billion plus earn out payments of 125 million at year-end in each of 2019 and 2020 The acquired business includes Anteros Marcellus and Utica…
  26. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 26
    ADVANCED WASTEWATER TREATMENT Antero has contracted with Veolia to integrate an advanced wastewater treatment complex into its water business Advanced Wastewater Treatment Illustrative Produced & Flowback Water Volumes Veolia will…
  27. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 27
    ORGANIC GROWTH STRATEGY: BUILD VS. BUY Organic growth strategy provides attractive Organic EBITDA Multiple vs. Precedent Drop Down Multiples returns and project economics, while 11.9x avoiding the competitive acquisition market…
  28. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 28
    ESTIMATED PROJECT ECONOMICS BY SEGMENT Project Economics by Segment(1) AM Option Opportunities 40% 40% 35% 35% Internal Rate of Return 30% 30% 25% 25% Wtd. Avg. 24% IRR 25% 25% 20% 20% 20% 15% 15% 15% 10% 10% 0% LP HP…
  29. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 29
    AM UPSIDE OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM Option to participate for up to 15% in regional gathering pipeline project in West Virginia expected to go in-service Regional Pipeline Project in 4Q 2015 Additive to full…
  30. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 30
    REGIONAL PIPELINE PROJECT Regional Gathering Pipeline Option to Acquire Up To 15% Non-Op Equity Interest Throughput Capacity: 1.4 Bcf/d Pipeline 50 miles of 36 inch pipeline Specifications: Project Capital: 400 Million In-Service…
  31. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 31
    PROCESSING VALUE CHAIN POTENTIAL FOR UNDEDICATED ACREAGE Antero Resources has 11.6 Tcf of processable gross 3P gas reserves and 616 Million Bbls of gross 3P NGL reserves across 128,500 gross processable Marcellus acres that are…
  32. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 32
    LARGE UTICA SHALE DRY GAS POSITION Utica Shale Dry Gas Acreage in OH/WV/PA(1) Antero has the right to build gathering and compression Rice Hess Chesapeake infrastructure to move Anteros future dry gas Utica Bigfoot 9H Porterfield…
  33. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 33
    CATALYSTS 1 AM Sponsor is the most active operator in Appalachia; 40%+ production High Growth Sponsor growth targeted for 2015 supported by 1.8 billion capital budget, firm Production Profile processing and takeaway, long-term natural…
  34. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 34
    APPENDIX 34
  35. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 35
    WATER DROP DOWN COMPLETED Transaction Specifics Anteros Marcellus and Utica freshwater delivery business, the fully contracted future ASSETS: advanced wastewater treatment complex and 20-year agreement to cover all fluid handling and…
  36. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 36
    MVCS SUPPORT AND EARN OUTS DRIVE RETURNS Minimum volume commitments (MVCs) on fresh water delivery volumes, at 3.68 and 3.63 per barrel for the Marcellus and Utica respectively (with CPI adjustments), support revenues and rates of…
  37. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 37
    IMPACT OF DROP DOWN TRANSACTION ON ANTERO FINANCIAL STATEMENTS Pre-Drop Down Pro Forma Drop Down Antero Resources Antero Resources Antero Midstream Metrics (Consolidated) (Consolidated) Partners N/A - Eliminated Upon N/A - Eliminated…
  38. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 38
    LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA 4.85 Bcf/d natural gas FT portfolio by YE 2018 with 85% serving favorable markets and an average demand fee of 0.40/MMBtu Antero Long Term Firm Processing & Takeaway…
  39. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 39
    NORTHEAST NGLS ARE TRANSPORTATION CHALLENGED Not so much a supply problem but more of a logistics problem for NGLs in the northeast today The majority of northeast NGL production is being transported by expensive rail and trucking NGLs…
  40. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 40
    NORTHEAST NGL GROWTH IS SUPPORTED BY INCREASING TAKEAWAY OPTIONS NGL transportation rates are expected to decline 0.12 to 0.15 per gallon by 2017 as pipeline options to domestic markets and export terminals go in-service (Mariner East…
  41. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 41
    U.S. EXPORTS ARE SUPPORTED BY EXCESS DOCK CAPACITY AND FLEET GROWTH LPG transportation rates from northeast fractionation to Europe and Asia should improve by 0.05 to 0.15 per gallon by YE 2016, driven both by pipelines replacing rail…
  42. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 42
    2015 GLOBAL LPG DEMAND Global LPG demand is 8.5 MMBbl/d and growing 42
  43. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 43
    POSITIVE OUTLOOK FOR LONG-TERM NGL MARKETS Forecast global LPG demand growth of 800 MBbl/d to 1 MMBbl/d by 2020 to be driven by petrochem projects in Asia and Middle East as well as residential/commercial, alkylate and power generation…
  44. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 44
    GLOBAL LPG DEMAND DRIVEN BY PETCHEM AND RES/COMM Largest end-use sectors for LPG are residential/commercial, which tends to grow with population and improvement in living standards in the emerging markets PIRA forecasting 1.0 MMBbl/d…
  45. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 45
    GLOBAL LPG TRADE DRIVEN BY U.S. SHALE The U.S. is the largest single driver of the rapid expansion in LPG trade accounting for over 90% in trade growth MMBbl/d 5.2 4.6 3.9 3.3 2.6 2.0 United States 1.3 0.7 1.…
  46. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 46
    U.S. SHALE NGL EURS SUPPORT LPG TRADE GROWTH U.S. shale play NGL reserves are 50.8 billion barrels (1) Eagle Ford, Marcellus, Utica, Bakken and Permian are the work horses of U.S. shale production growth Marcellus/Utica NGL resource…
  47. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 47
    POSITIVE OUTLOOK FOR LONG-TERM ETHANE MARKETS AS WELL U.S. ethane demand is projected to increase at an annual 3.5% CAGR through 2020, primarily based on an 8% CAGR for U.S. petrochem demand and a 30% growth in exports primarily to…
  48. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 48
    AR COMPLETION DEFERRALS 2016 VOLUME IMPACT Plan to defer 50 Marcellus well completions into 2016 to achieve higher gas price realizations, approximately half of which are located on AM areas of dedication Regional gathering pipeline…
  49. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 49
    ANTERO RESOURCES UPDATED 2015 GUIDANCE Key Operating & Financial Assumptions Key Variable 2015 Guidance Net Daily Production (MMcfe/d) 1,400 Net Residue Natural Gas Production (MMcf/d) 1,175 Net Liquids Production (Bbl/d) 33,000 Net…
  50. October 2015 Partnership Overview – Antero Midstream Partners Lp – slide 50
    MAINTENANCE CAPITAL METHODOLOGY Maintenance Capital Calculation Methodology Estimate the number of new well connections needed during the forecast period in order to offset the natural production decline and maintain the average…

From the store

Browse maps, data & reports in the Shale Experts store