Antero Family at a Glance The Most Integrated Natural Gas and NGL Platform in the U.S. A World Class E&P Operator in Appalachia NYSE: AR 6 Billion Enterprise Value(1) C-Corp Structure Ba2 / BB+ / BBB- Corporate Debt Ratings…
What Does Antero Midstream Do Provides a customized, integrated full value chain midstream solution 50/50 JV Exploration & Gathering & Natural Gas C3+ NGL Production Compression Processing Fractionation Terminals & Storage Long…
Long Track Record Of Success Antero Midstream has delivered a 27% dividend CAGR through the downturn and exceeded DCF coverage targets by 22% on average since the IPO AM Dividend Per Share and DCF Coverage Since IPO (2) 1.40…
Long-Term Outlook: Antero Resources AR is poised to prudently grow production to maximize free cash flow, ultimately resulting in an appropriate mix of further deleveraging and return of capital Production Growth Scenarios (2020…
Long-Term Outlook: Antero Midstream Based on ARs flexible long-term outlook, AM is targeting an 18% - 25% distributable cash flow (DCF) CAGR from 2020 to 2022 AM Distributable Cash Flow Growth Scenarios (2020 2022) 1,600 1,400…
Highest DCF Growth Among Top 20 Midstream Antero Midstream is a unique midstream vehicle with scale, low leverage and high distributable cash flow growth all in a C-Corp structure C-Corp MLP Leverage * Eliminated IDRs (Simplified)…
DCF Profile Supports Growing Return of Capital Antero Midstreams distributable cash flow growth, self-funding business model, and leverage profile supports an increase in return of capital to shareholders Distributable Cash Flow vs.…
Antero Midstreams Strategy AR + AM ownership captures the integrated natural gas and NGL value chain with C-Corp governance and ongoing return of capital Dominant position in highest return natural gas and 18% to 25% DCF CAGR…
World Class E&P Operator: Antero Resources
Prolific Underlying Resource Underpins Growth Antero Resources holds 40% of the core undrilled liquids-rich locations in Appalachia with attractive economics and low breakeven prices Core Liquids-Rich Appalachian Undrilled…
Scale to Capitalize on Resource Base Antero is the largest NGL producer in the U.S. and 4th largest natural gas producer in the U.S. with 3,000 core drilling locations and 18 Tcfe of proved reserves Top U.S. C2+ NGL Producers -…
Flexible Development Plan to Maintain Strength Anteros flexible development program through 2023 will be responsive to commodity prices to grow production and maximize free cash flow Lower Prices: 50 Oil / 2.85 Gas Higher Prices: 65 Oil…
Sustainable and De-risked Business Model Antero Resources is 100% hedged on natural gas through 2019; Hedges and FT provide price stability to support sustainable long-term development Hedge Portfolio Supports Antero Natural Gas…
Hedge Position Supports Operating Plan Including FT AR is 100% hedged on gas in 2019 and 55%-60% hedged in 2020 at 3.00/MMBtu Antero Hedge Profile (MMcf/d) (/MMBtu) 2,500 2,330 NYMEX Collar Volume NYMEX Swap Volume 4.00 (1) 3.48…
AR Firm Transportation Portfolio Provides Strategic Advantage 2016A 2017A 2018A 2019E 2020E 2021E Realized Hedge Gains (/Mcfe):(1) 1.48 0.26 0.25 0.24 0.06 0.02 - 0.03 Premium gas pricing plus realized hedge profits more than offset…
Peer-leading EBITDAX Margins for Six Years Forward-thinking business strategy including liquids focus, transportation commitments and forwards sales (hedges) has resulted in peer-leading realized prices and margins for 6 straight…
Premier Northeast Infrastructure Platform Premier Integrated Appalachian Midstream Assets Antero Clearwater Facility 19
Antero Midstream Asset Overview ARs core resource base, combined with AMs integrated midstream assets, positions AM as the leading Appalachian infrastructure growth platform Over 300 miles of pipeline Over 2.2 Bcf/d of compression…
High Growth Midstream Throughput Antero Midstream has delivered consistent, peer-leading, and sustainable growth through its organic investments Low Pressure Gathering (MMcf/d) Compression (MMcf/d) 1,738 2,500 1,800 2,148 1,600…
Capital and Adjusted EBITDA Contribution - 2019 2019 organic capital budget fully funded with retained cash flow and credit facility borrowings no need for equity financing Capital Expenditures (MM) Adjusted EBITDA (MM)…
4-year Organic Project Backlog: 2019 - 2022 High-graded organic Primary focus on rich project backlog of 2.0B gas Marcellus through 2022 infrastructure 2.0B Project Backlog By Area 2.0B Project Backlog By Function Processing &…
Gathering and Compression Assets & Strategy Significant long-term volumetric visibility from AR supports efficient gathering and compression infrastructure buildout and attractive project returns Asset Strategy Historical Compression…
Processing and Fractionation Assets & Strategy Joint Venture with MPLX (subsidiary of Marathon) aligns the largest core liquids-rich resource base with largest processing and fractionation footprint in Appalachia Asset Strategy…
Water Handling and Treatment Assets & Strategy Due to the reliability of AMs buried fresh water pipeline system, AM has a 100% track record of timely fresh water deliveries to ARs completions Asset Strategy Water Services Provided…
Fixed Fee Business Model Supports Stable Cash Flows Antero Midstream generates all of its revenues through fixed-fee contracts, insulating EBITDA growth from commodity price volatility Details Antero Midstream Adjusted EBITDA (MM)…
Organic Strategy Drives Attractive Return on Capital Fixed-fee tolling business combined with Just-in-Time capital investment drives attractive returns on capital across commodity environments Investment Philosophy AM Return on…
The New Energy Infrastructure Model Antero Midstream checks all the boxes Old MLP Model New Infrastructure Perception Model Corporate K-1 tax form and 1099 tax form and Plus C-Corp Structure IDRs No IDRs governance Niche and retail…
APPENDIX
Antero Midstream Project Economics Just-in-Time capital investment philosophy drives attractive project IRRs AM Project Economics by Investment (Ranges) 45% 40% 40% 40% Weighted Internal Rate of Return 35% Avg: 25% IRR 30%…
Antero Capitalization Pro forma as of 12/31/18 As of December 31, 2018 (MM) Antero Midstream Antero Resources Pro Forma Status Quo for AM Senior Notes Offering Cash 0 0 Debt Revolving Credit Facility 348 405 5.375% Senior…
Liquidity & Debt Term Structure 12/31/2018 Debt Maturity Profile AR Credit Facility AM Credit Facility AR Senior Notes AM Senior Notes 3,000 2,500 2,000 946 1,500 405 1,000 1,100 1,000 750 500 650 650 600 0 2018 2019…
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 Non-GAAP Measures Non-GAAP Financial Measures and Definitions Antero Midstream (theCompany) views Adjusted EBITDA as an important indicator of the Companys performance. Antero Midstream defines Adjusted EBITDA as Net…
Adjusted EBITDA and DCF Reconciliation Adjusted EBITDA and DCF Reconciliation ( in thousands) Years ended December 31, 2017 2018 Net income 307,315 585,944 Impairment of property and equipment 23,431 5,771 Change in fair value of…
Antero Midstream Non-GAAP Reconciliation The following reconciles net income to Adjusted EBITDA and Distributable Cash Flow: 2014 in Thousands G&C Only 2014 2015 2016 2017 Net income 16,832 127,875 159,105 236,703 307,315 Interest…
Antero Midstream Non-GAAP Measures Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. The GAAP measure most directly comparable to Adjusted EBITDA and Distributable Cash Flow is Net Income. The non-GAAP…
Antero Non-GAAP Measures Stand-alone Adjusted Operating Cash Flow and Free Cash Flow Free Cash Flow as presented in this release and defined by the Company represents Stand-alone Adjusted Operating Cash Flow, less Stand-alone Drilling and…
Antero Non-GAAP Measures Continued Adjusted EBITDAX and Stand-alone Adjusted EBITDAX Adjusted EBITDAX as defined by the Company represents net income or loss, including noncontrolling interests, before interest expense, interest income,…
Antero Non-GAAP Measures Continued The pre-tax PV-10 value is a non-GAAP financial measure as defined by the SEC. Antero believes that the presentation of pre-tax PV-10 is relevant and useful to its investors because it presents the…
Antero Resources Stand-alone Adjusted EBITDAX Reconciliation Stand-alone LTM Adjusted EBITDAX Reconciliation Stand-alone Twelve months ended (in thousands) December 31, 2018 Net (loss) and comprehensive (loss) attributable to Antero…
Antero Resources Stand-alone Adjusted EBITDAX Per Mcfe Stand-alone Adjusted EBITDAX per Mcfe Reconciliation (Annual) 2013 2014 2015 2016 2017 1Q2018 2Q2018 3Q2018 4Q2018 (/Mcfe) Natural Gas, Oil, Ethane and NGL sales 4.31 4.74 2.53…
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