CHANGES SINCE FEBRUARY 2016 PRESENTATION Updated AM slides highlighting 12/31/2016 balance Slides 3, 28, 41 sheet and liquidity results Updated AR slide for 12/31/2016 showing reserve and Slide 14 production performance versus…
ANTERO MIDSTREAM PROFILE Market Cap....... 6.5 Billion Enterprise Value.......... 7.2 Billion LTM EBITDA(1)...... 404 Million % Gathering/Compression 65% % Water 35% Net Debt(2)/LTM EBITDA.. 1.9x Gross Dedicated Acres(3). 528,000…
JOINT VENTURE OVERVIEW Antero Midstream (NYSE: AM) and MPLX (NYSE: MPLX) have formed a 50/50 joint venture for processing and fractionation infrastructure in the core of the liquids-rich Marcellus and Utica Shales Strategic Rationale…
JOINT VENTURE: PROCESSING ASSET SUMMARY Summary Joint Venture Processing Assets AM and MPLX have formed a 50/50 joint venture to invest (1) in Marcellus processing infrastructure New Complex (2) Future Processing The JV could…
JOINT VENTURE: FRACTIONATION ASSET SUMMARY Summary Joint Venture Fractionation Assets AM and MPLX have formed a 50/50 joint venture to Hopedale Fractionation Complex (1) invest in C3+ fractionation infrastructure in Appalachia…
CREATING A DIVERSIFIED ASSET MIX IN THE NORTHEAST Antero Midstream is creating a diversified organic midstream infrastructure business in the Northeast that supports the long-term growth profile of the Marcellus and Utica Shales…
KEY ATTRIBUTES PROCESSING & FRACTIONATION JV Aligns largest core liquids-rich resource base (AR) with the largest processing & fractionation footprint (MPLX) in Appalachia JV secures over 800 million in organic project inventory…
2017 GUIDANCE AND LONG TERM TARGETS Distribution Growth(1): 3.50 Guidance 3.00 Long Term Targets 2.50 2.00 1.50 1.33 1.03 1.00 0.50 0.00 2016A 2016E 2017E 2018E 2019E 2020E Updated 2017 Guidance(2) 2018 - 2020 Long-Term…
TRACK RECORD OF HIGH GROWTH At IPO November (2014) Current Gross Dedicated 418,000 Gross Acres 528,000 Gross Acres Acreage(1): +26% Distribution Per Unit: 0.17 (MQD) 0.28 +65% LTM EBITDA(2): 45 404 +798% Low Pressure: 532…
ADVANCED COMPLETIONS DRIVE INCREASED WATER VOLUMES New AR completion designs result in more water utilization driving higher AM fees, while increased proppant load generates encouraging early results with potential long-term benefits to…
IMPROVING MARCELLUS RETURNS Antero expects to complete 114 wells in 2017 in the highly-rich gas regimes (fully dedicated to AM) where 2016 advanced completions are tracking 2.0 Bcf/1,000 of lateral Highly-Rich Gas/Condensate(1)…
LEADING APPALACHIA MIDSTREAM BUSINESS MODEL Premier E&P Operator in Appalachia High Growth Sponsor Drives AM Throughput Growth Just-in-time Non-Speculative Capital Program 100% Fixed Fee and Largest Firm Transport and Hedge…
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 and the U.S. Appalachian Producers by…
SPONSOR STRENGTH GROWTH & MOMENTUM THROUGH THE DOWN CYCLE Antero is in the unique position of sustaining growth and value creation through the price down cycle Average Net Daily Production (MMcfe/d) Average Net Daily Liquids Production…
SPONSOR STRENGTH LARGEST CORE ACREAGE POSITION IN APPALACHIA Antero has the largest core acreage position in Appalachia, particularly as it relates to undeveloped acreage and is running 36% of the total rigs in liquids-rich core…
SPONSOR STRENGTH SUSTAINABLE INVENTORY OF LOW BREAKEVEN PRICES Antero has a 15 year drilling inventory at 3.00 natural gas or less at the 2017 development pace (170 completions) Breakeven is defined as pre-tax 20% rate of return…
SPONSOR STRENGTH ARS CONTINUOUS OPERATING IMPROVEMENT Driving drilling and completion efficiencies which continues to lower well costs Dramatic Decrease in Drilling Days Increasing Completion Stages per Day Drilling longer laterals…
SPONSOR STRENGTH ARS DRAMATICALLY LOWER F&D COSTS Enhanced completion designs have contributed to improved recoveries (for AR) and volume throughput (for AM) Increasing Proppant Per Foot Increasing Water Per Foot Higher proppant…
ORGANIC GROWTH MULTI-YEAR GROWTH ENGINE Antero plans to develop over 800 horizontal locations in the Marcellus and Ohio Utica by the end of the decade while utilizing less than 25% of its current 3P drilling inventory Planned Antero…
ORGANIC GROWTH 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 market 14.0x 13.3x…
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…
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…
VALUE CHAIN OPPORTUNITY MIDSTREAM VALUE CHAIN BUILDOUT Processing and fractionation infrastructure adds to AMs full value chain model Well Pad Condensate Gathering End Stabilization Users Compression Low Pressure Gathering…
STRONG FINANCIAL POSITION SIGNIFICANT FINANCIAL FLEXIBILITY AM Liquidity (12/31/2016) Financial Flexibility 1.5 billion revolver in place to fund future growth capital ( in millions) (5.0x Debt/EBITDA Cap) Revolver Capacity 1,372…
STRONG FINANCIAL POSITION TOP TIER DISTRIBUTION GROWTH & HEALTHY COVERAGE 3 Year Street Consensus Distribution Growth Rate and DCF Coverage(1) 40% 1.9x 2.0x Distribution Growth DCF Coverage Ratio 1.8x 35% 1.6x 1.5x 1.6x 1.5x…
STRONG FINANCIAL POSITION LONG TERM GROWTH OUTLOOK THROUGH 2020 WITH LOW LEVERAGE Antero Midstreams 2.7 billion organic opportunity set and visible cash flow growth allow it to target a 28% to 30% distribution CAGR through 2020 and…
Antero Midstream (NYSE: AM) Asset Overview 31
ANTERO MIDSTREAM GATHERING AND COMPRESSION ASSET OVERVIEW Gathering and Compression Assets Gathering and compression assets in core of rapidly growing Marcellus and Utica Shale plays Acreage dedication of 528,000 gross leasehold…
ANTERO MIDSTREAM ASSETS RICH GAS MARCELLUS Marcellus Gathering & Compression Provides Marcellus gathering and compression services Liquids-rich gas is delivered to MPLXs 1.2 Acquisition Acreage Bcf/d Sherwood processing complex…
ANTERO MIDSTREAM ASSETS RICH & DRY GAS UTICA Utica Gathering & Compression Provides Utica gathering and compression services Liquids-rich gas delivered into MPLXs 800 MMcf/d Seneca processing complex Condensate delivered to…
ANTERO MIDSTREAM WATER BUSINESS OVERVIEW AM 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…
ANTERO MIDSTREAM ADVANCED WASTEWATER TREATMENT ASSET OVERVIEW Antero has contracted with Veolia to build the largest advanced wastewater treatment complex in the world for oil and gas produced water Advanced Wastewater Treatment…
AM UPSIDE OPPORTUNITY SET ACTIVITY CURRENTLY DEDICATED TO AM AR must request a bid from AM and can only reject if third Transportation and Marketing party service fees are lower. AM has right to match lower fee offer.…
CATALYSTS 1 AM sponsor is the most active operator in Appalachia; 20% - 25% production growth guidance for 2017 supported by 1.5 billion High Growth Sponsor capital budget, firm processing and takeaway, long-term natural gas…
STRONG BALANCE SHEET AND HIGH FLEXIBILITY Antero Resources (NYSE:AR) Antero Midstream (NYSE:AM) 12/31/2016 Debt(1) Liquid Non-E&P Assets Pro Forma 12/31/2016 Debt (1) Liquid Assets Debt Type MM Asset Type MM Debt Type MM Asset Type MM…
2017 CAPITAL BUDGET Antero Midstreams 2017 capital budget is 800 million, a 67% increase from the 2016 capital budget of 480 million, including 275 for the processing and fractionation JV announced on 2/6/2017 480 Million 2016 800…
LARGEST FT PORTFOLIO IN NORTHEAST Antero Long Term Firm Processing & Takeaway Position (YE 2018) Accessing Favorable Markets Dom Mariner East 2 Chicago(1) Shell South(1) 62 MBbl/d Commitment YE 2018 Gas Market Mix 0.17 / 30 MBbl/d…
KEY APPALACHIAN NEW TAKEAWAY PROJECTS: UNLOCKING THE NORTHEAST 18,000 By year-end 2019, an incremental 700 MMcf/d 1,500 16,832 16.8 Bcf/day of new takeaway Atlantic Coast 16,000 capacity is expected to be in service 4,660 in…
NORTHEAST TAKEAWAY ACCESSES ALL MAJOR NGL MARKETS More NGL infrastructure to be built to support growing liquids production in Appalachia presents additional opportunities for downstream investment Ethane In service Ethane Proposed…
SUSTAINABLE WATER BUSINESS GROWTH Long-term production growth drives substantial water business growth in 2017 and beyond, underpinned by minimum volume commitments Fresh Water Delivery Volumes (MBbl/d) Traditional Completions…
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…
ANTERO RESOURCES EBITDAX RECONCILIATION EBITDAX Reconciliation ( in millions) Year Ended Year Ended 12/31/2015 12/31/2016 EBITDAX: Net income including noncontrolling interest 980.0 (737.0) Commodity derivative fair value (gains)…
ANTERO MIDSTREAM EBITDA RECONCILIATION EBITDA and DCF Reconciliation Year ended in thousands December 31, 2015 2016 Reconciliation of Net Income to Adjusted EBITDA and Distributable Cash Flow: Net income 159,105 236,703 Interest…
Loading...
