Skip to main content 2016 MLP Investor Conference – Antero Midstream Partners Lp Investor Presentation | Shale Experts
Loading...
Pm

2016 MLP Investor Conference – Antero Midstream Partners Lp

Antero Midstream Partners Lp · Jun 2, 2016 · 45 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. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 1
    MLPA 2016 Annual Investor Conference June 2, 2016
  2. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 2
    WHY OWN ANTERO MIDSTREAM 3.5 billion of consolidated liquidity; stable leverage through the down cycle Ba2/BB corporate ratings affirmed; 4.5 billion AR borrowing base affirmed Sponsor Strength 84% of forecasted production hedged…
  3. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 3
    CONTINUOUS OPERATING IMPROVEMENTS BY AR Utica Shale Ohio Marcellus Shale Operating Highlights Top 20 best drilling footage days in Marcellus since 2009 have all occurred in 2016, including 6,528 drilled in 24 hours in West Virginia…
  4. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 4
    STEP CHANGE IN AR MARCELLUS DRILLING FOOTAGE New drilling techniques and technologies are forecast to shave up to 5 days off lateral drilling times and up to 25% off drilling AFEs Key Drilling Highlights: Top 50 AR Marcellus Daily…
  5. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 5
    ADVANCED COMPLETIONS DRIVE INCREASED WATER VOLUMES AR Increased Proppant Load by 25% in the Marcellus and Utica, EARLY RESULTS JUST COMING IN 1,600 Pilot Testing Demonstrated 1,530 Improved Recoveries While 1,500 Sand Placed Per Foot…
  6. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 6
    MARCELLUS IMPROVEMENTS DRIVING AR VALUE CREATION High correlation of EURs to lateral length no degradation in results out to 11,000 laterals Antero has led the way with long lateral drilling programs Antero Marcellus EUR vs. Lateral…
  7. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 7
    WELL ECONOMICS MARCELLUS UPSIDE POTENTIAL While AR has not changed its 1.7 Bcf/1,000' of lateral Marcellus type curve, AR is seeing stronger EURs per 1,000' in a significant portion of the Marcellus rich gas acreage as exhibited in our…
  8. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 8
    ANTERO MIDSTREAM EXERCISES STONEWALL OPTION Stonewall Gathering Pipeline Option Antero Midstream has exercised its option to acquire a 15% non-operated equity interest in the Stonewall gathering pipeline - Capital investment: 45…
  9. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 9
    ANTERO MIDSTREAM UPDATED 2016 GUIDANCE Key Operating & Financial Assumptions Original Updated Key Variable 2016 Guidance 2016 Guidance Financial: Net Income (MM) N/A 165 - 190 Adjusted EBITDA (MM) 300 - 325 325 - 350 Distributable Cash…
  10. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 10
    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 Rich…
  11. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 11
    SPONSOR STRENGTH LEADERSHIP IN APPALACHIAN BASIN Antero has the largest proved reserve base, largest core liquids-rich acreage position and is one of the largest producers in the Appalachian Basin Appalachian Producers by Proved…
  12. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 12
    SPONSOR STRENGTH MOMENTUM THROUGH THE DOWN CYCLE Antero is in the unique position of being able to sustain growth and value creation through the price down cycle AVERAGE NET DAILY PRODUCTION (MMcfe/d) AVERAGE NET DAILY LIQUIDS…
  13. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 13
    SPONSOR STRENGTH MOST ACTIVE OPERATOR AR is operating 23% of all rigs running and 58% of rigs running in liquids rich core areas in Appalachia COMBINED TOTAL 12/31/15 RESERVES Assumes Ethane Rejection Net Proved Reserves 13.2 Tcfe…
  14. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 14
    GROWTH HIGH GROWTH MIDSTREAM THROUGHPUT Low Pressure Gathering (MMcf/d) High Pressure Gathering (MMcf/d) 1,600 Utica Marcellus 1,800 Utica Marcellus 1,400 1,303 1,600 1,124 1,400 1,197 1,216 1,195 1,222 1,200 1,038 1,134 935 965…
  15. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 15
    GROWTH TOP TIER DISTRIBUTION GROWTH Antero Midstream is targeting 28% to 30% annual distribution growth through 2017 AM has delivered on those targets with DCF coverage of 1.6x in the first quarter of 2016 (1) Distribution Per Unit…
  16. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 16
    GROWTH ORGANIC GROWTH STRATEGY DRIVES VALUE CREATION Organic growth strategy provides attractive Organic EBITDA Multiple vs. Precedent Drop Down Multiples returns and project economics, while avoiding the competitive acquisition…
  17. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 17
    GROWTH ESTIMATED PROJECT ECONOMICS BY SEGMENT Project Economics by Segment(1) 40% AM Option 40% Opportunities 35% 35% 35% Internal Rate of Return 30% 30% 25% 25% 25% 25% 25% Wtd. Avg. 21% IRR 20% 25% 20% 20% 15% 15% 15% 10%…
  18. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 18
    LIQUIDS-RICH LARGEST CORE DRILLING INVENTORY Antero has over 2,700 undeveloped rich gas locations with an average lateral length of 7,580 in its 3P reserves as of 12/31/2015 Antero controls an estimated 37% of the NGLs in the…
  19. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 19
    SUSTAINABLE BUSINESS MODEL HEDGES BOLSTER SOLID WELL ECONOMICS AR multi-year drilling inventory supports low risk, high return growth profile Antero has reduced average well costs for a 9,000 lateral by 29% in the Marcellus and 26% in…
  20. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 20
    HIGH VISIBILITY JUST IN TIME GATHERING AND COMPRESSION Gathering and Compression Assets Utica Gathering and compression assets in core of rapidly Shale growing Marcellus and Utica Shale plays Acreage dedication of 442,000 net…
  21. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 21
    HIGH VISIBILITY PROJECTED MARCELLUS MIDSTREAM BUILDOUT In-service 2016 2017 2018+ 21
  22. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 22
    HIGH VISIBILITY PROJECTED UTICA MIDSTREAM BUILDOUT In-service 2016 2017 2018+ 22
  23. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 23
    HIGH VISIBILITY JUST IN TIME WATER INFRASTRUCTURE All of ARs 570,000 net acres in Appalachia are dedicated to AM for fresh water delivery to well pads and fluid handling and disposal services Water Business Assets Fresh water delivery…
  24. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 24
    MITIGATED COMMODITY RISK 100% FIXED FEE RICH TO DRY AM has no direct commodity price exposure (1) Contract Mix Commodity Commodity Based Based Fixed Fixed Fixed Fixed Fee Fee Fee Fee 100% 100% 100% 100% Fixed Fixed Fee…
  25. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 25
    MITIGATED COMMODITY RISK FIRM TRANSPORTATION & SALES PORTFOLIO Antero Resources Transportation Portfolio Antero Resources has built the largest firm transportation portfolio in Appalachian Basin with 4.85 BBtu/d by year end 2018…
  26. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 26
    MITIGATED COMMODITY RISK HEDGING INTEGRAL TO BUSINESS MODEL Hedging is a key component of Anteros business model which includes development of a large, repeatable drilling inventory Locks in higher returns in a low commodity price…
  27. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 27
    VALUE CHAIN OPPORTUNITY FULL MIDSTREAM VALUE CHAIN AM recently exercised its option on 15% interest in Stonewall, adding a regional gas gathering pipeline to its portfolio Well Pad Condensate Gathering End Stabilization Users (Miles)…
  28. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 28
    STRONG FINANCIAL POSITION STRONG BALANCE SHEET AND FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 3/31/2016 Debt Liquid Non-E&P Assets 3/31/2016 Debt Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type…
  29. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 29
    STRONG FINANCIAL POSITION SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (3/31/2016) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5x Debt/EBITDA Cap) Revolver Capacity 1,500…
  30. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 30
    TOP TIER DISTRIBUTION GROWTH & HEALTHY COVERAGE 3Year Street Consenus Distribution Growth Rate and DCF Coverage(1) 35% 2.00x 1.8x 1.80x 30% 1.5x 1.60x 1.4x 1.4x 25% 1.3x 1.40x 1.3x 1.3x 1.3x 1.2x 1.2x 1.20x 20% 1.00x…
  31. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 31
    CATALYSTS 1 AM Sponsor is the most active operator in Appalachia; 17% production growth guidance for 2016 supported by 1.4 billion High Growth Sponsor capital budget, firm processing and takeaway, long-term natural gas Production…
  32. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 32
    APPENDIX 32
  33. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 33
    AM UPSIDE OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM AR must request a bid from AM and can only reject if third Processing, Fractionation, party service fees are lower. AM has right to match Transportation and Marketing…
  34. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 34
    2016 UPDATED CAPITAL BUDGET Antero Midstreams 2016 updated capital budget is 480 million, a 13% increase from 2015 capital expenditures of 423 million 423 Million 2015(1) 480 Million 2016 By Segment (MM) By Segment (MM) 13 25 55…
  35. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 35
    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…
  36. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 36
    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…
  37. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 37
    ANTERO MIDSTREAM ADVANCED WASTEWATER TREATMENT ASSET OVERVIEW Antero has contracted with Veolia to integrate an advanced wastewater treatment complex into its water business Advanced Wastewater Treatment Illustrative Produced &…
  38. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 38
    ATTRACTIVE VALUE PROPOSITION Attractive appreciation potential on a relative basis 10.0% 9.0% R-squared = 88% 8.0% WES CNNX 7.0% MPLX TEP 6.0% AM 03/31/15 Yield: 4.03% Yield (%) Price: 21.81 5.0% AM - Implied 4.0%…
  39. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 39
    LARGEST FIRM TRANSPORTATION AND PROCESSING PORTFOLIO IN APPALACHIA Anteros natural gas firm transportation (FT) portfolio builds to 4.85 Bcf/d by YE 2018 with 87% serving favorable markets, with an average demand fee of 0.46/MMBtu and…
  40. 2016 MLP Investor Conference – 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 in 2017 as pipeline options to domestic markets and export terminals go in-service (Mariner…
  41. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 41
    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…
  42. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 42
    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…
  43. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 43
    MAINTENANCE CAPITAL METHODOLOGY Maintenance Capital Calculation Methodology Low Pressure Gathering Estimate the number of new well connections needed during the forecast period in order to offset the natural production decline and…
  44. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 44
    ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Quarter Ended LTM Ended 3/31/2016 3/31/2016 EBITDAX: Net income including noncontrolling interest 10.7 591.5 Commodity derivative fair value (gains)…
  45. 2016 MLP Investor Conference – Antero Midstream Partners Lp – slide 45
    ANTERO MIDSTREAM EBITDA RECONCILIATION EBITDA and DCF Reconciliation Three months ended in thousands March 31, 2015 2016 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 32,327 42,918 Add:…

From the store

Browse maps, data & reports in the Shale Experts store