Antero Simplified Organizational Structure The combined enterprise value of the Antero complex is over 17 billion Affiliates Public Affiliates Public 32% 68% 80% 20% (NYSE: AR) Enterprise Value: 6.7 Bn Exploration &…
Antero Midstream Profile Market Cap....... 5.9 Billion Enterprise Value(1)........... 7.0 Billion LTM EBITDA........ 513 Million % Gathering/Compression 57% % Water 43% Net Debt/LTM EBITDA. 2.1x Corporate Debt Rating. Ba2 / BB…
Antero Midstream Business Strategy Deliver Organic Growth Over the Long Term Run by co-founders and employees with significant ownership in Antero complex Organically grow midstream operations servicing Antero Resources de-risked…
Antero Midstream Asset Overview Sherwood Midstream Infrastructure (In Service) Processing Complex Compressor Gathering Pipelines (Miles) 341 Station Antero Compression Capacity (MMcf/d) 1,600 Clearwater Facility Condensate…
Antero Midstream & AMGP Investment Highlights Strong Sponsor that has the Largest Core Drilling Inventory 1 in Appalachia and is the Largest NGL Producer in the U.S. High Growth Organic Business Model Requiring 2 No Equity…
1 Largest Core Drilling inventory in Appalachia Based on thorough technical analysis of peer acreage configuration, well results and geology, Antero has the largest core drilling inventory (see core outlines) in Appalachia and holds…
1 Largest NGL Producer in the U.S. Antero is the largest NGL producer in the U.S and has the most NGL exposure at 34% of total upstream company revenues Top U.S. NGL Producers (MBbl/d) 3Q 2017 115.0 45% Largest NGL producer in the…
1 Longer Laterals Materially Improve E&P Economics Antero has been a leader in drilling long laterals in Appalachia Avg. Antero Lateral Lengths To Date of Lateral 350 Antero Wells Length 294 Future completion Total Drilling 894…
Well Recoveries Continue to Improve and Advanced 1 Completions Require More Water ARs production from advanced completions is outperforming the 2.0 Bcf/1,000 wellhead type curve 2,500 lb/ft completions are 17% above type curve (First…
1 ARs Attractive Long Term Outlook Antero Resources is now well positioned to generate peer leading growth and free cash flow Antero Resources Standalone E&P Long-Term Targets Standalone E&P Leverage Net Production (Actual) 4.5x…
1 1 Billion Delevering Program Completed Antero monetized over 1 billion of non-E&P assets through the sale of 311 million of AM common units and 750 million through hedge restructuring Restructuring of hedge swap prices resulted in…
2 High Growth Midstream Throughput High growth throughput driven by de-risked sponsor development plan and fixed-fee contracts eliminate direct commodity price exposure Low Pressure Gathering (MMcf/d) Compression (MMcf/d) Fixed Fee:…
2 Organic Growth Results in Attractive Rates of Return Organic growth strategy provides attractive returns while avoiding the competitive acquisition market and reliance on capital markets Organic Adjusted EBITDA Multiple vs. Drop…
2 Attractive Return on Invested Capital Attractive project rates of return and increasing capital efficiencies result in economic and rapidly improving Partnership-wide return on invested capital (ROIC) AM Return on Invested Capital…
2 AM Long Term Growth With Low Leverage High growth midstream throughput and efficient capital investment result in top-tier distribution growth of 28% to 30% through 2020 while maintaining leverage in the low 2-times AM Growth…
2 AMGP Highly Levered to AM Distribution Growth AM distributions drive IDR cash flow which drives AMGP distributions with upside to potential corporate tax reform in c-corp structure AMGP Distribution Growth Midpoint of Guidance and…
3 Midstream Capital Efficiencies Continue to Improve Longer lateral wells, increasing recoveries per well, and more wells per pad result in more efficient gathering, compression and freshwater delivery capital investment Increasing…
3 Significant Visibility on Midstream Investment Antero Midstream has significant visibility and insight into Antero Resources long-term development plan, resulting in non-speculative midstream investment Utica Marcellus…
4 Northeast Value Chain Opportunity Participating in the full value chain diversifies and sustains Anteros integrated business model 5.0 billion organic project backlog and 1.0 billion downstream investment opportunity set Upstream…
4 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 2016A…
5 Strong Financial Position Strong and flexible balance sheet combined with significant liquidity AM Liquidity (9/30/2017) Financial Flexibility ( in millions) 1.5 billion revolver in place to fund future growth capital (5.0x…
AM Upside Opportunity Set AM has multiple pathways to upside beyond its 5.0 billion organic project backlog OPPORTUNITY POSITIONING Downstream Infrastructure Antero leverages its resource and production to optimize 1 Buildout…
Antero Midstream Detailed Asset Overview 24
Marcellus Gathering and Compression Assets Marcellus Gathering & Compression Provides Marcellus gathering and compression services Acquisition Acreage Liquids-rich gas is delivered to AM/MPLXs 1.6 Bcf/d Sherwood processing complex…
Utica Gathering and Compression Assets Utica Gathering & Compression Provides Utica gathering and compression services Liquids-rich gas delivered into MPLXs 800 MMcf/d Seneca processing complex Condensate delivered to centralized…
Marcellus and Utica Fresh Water Delivery Assets Water Business Assets Fresh water delivery assets provide fresh water for Marcellus and Utica well completions Year-round water supply sources: Clearwater Facility, Ohio River, local…
Advanced Wastewater Treatment Assets Antero has contracted with Veolia to build the largest advanced wastewater treatment complex in the world for produced water from shale oil and gas Advanced Wastewater Treatment Illustrative…
Antero Clearwater Facility Nearing Completion Largest shale oil and gas related water treatment facility in the world 60,000 Bbls/d capacity 100% fixed fee long term contracts Compliments fresh water delivery infrastructure (800…
Processing and Fractionation Assets Antero Midstream (NYSE: AM) and MPLX (NYSE: MPLX) formed a joint venture for processing and fractionation infrastructure in the core of the liquids-rich Marcellus and Utica Shales in February 2017…
Appendix 31
Antero Midstream 2017 Guidance Key Variable 2017 Guidance(1) Financial: Net Income (MM) 305 345 Adjusted EBITDA (MM) 520 560 Distributable Cash Flow (MM) 405 445 Year-over-Year Distribution Growth 28% 30% DCF Coverage Ratio 1.30x…
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…
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 Midstream EBITDA Reconciliation EBITDA and DCF Reconciliation Three months ended September 30, 2016 2017 Net income 70,524 80,893 Interest expense 5,303 9,311 Depreciation expense 26,136 30,556 Accretion of contingent…
Cautionary Note Regarding Hydrocarbon Quantities The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserve estimates (collectively, 3P). Antero has provided internally…
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