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 5 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…
Antero Midstream Financial Policy Maintain Target conservative leverage profile in the low 3-times or below Prudent net debt to LTM Adjusted EBITDA by 2021 Leverage Ability to flex balance sheet on a short-term basis for additional…
Long Track Record Of Success Antero Midstream has delivered a 28% 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 Antero is poised to prudently grow production to maximize free cash flow, ultimately resulting in an appropriate mix of further delevering 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 has the highest DCF growth and one of the lowest leverage profiles among the top 20 midstream companies C-Corp MLP Leverage Current Yield * 3-Year Distributable Cash Flow…
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 18% to 25% DCF CAGR in highest return from 2020-2022 and…
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…
AR is a Strong Sponsor With Scale Since AMs IPO in 2014, AR has reduced its leverage by 54% and reduced total debt by 900MM while growing into one of the top gas and NGL producers in the U.S. AR Net Debt / LTM Adjusted EBITDAX Top…
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…
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 Protects Downside Commodity Exposure AR has consistently executed a comprehensive commodity hedging program with 4.4 billion of realized hedge gains since 2008 (1) Antero Hedge Profile (BBtu/d) NYMEX Collar Volume…
Firm Transportation Portfolio is a Strategic Advantage 2016A 2017A 2018A 2019E 2020E 2021E Realized Hedge Premium gas pricing plus realized hedge Gains (/Mcfe):(1) 1.48 0.26 0.25 0.20 0.11 0.06 - 0.07 profits more than offset the cost…
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 370 miles of pipeline Over 2.7 Bcf/d of compression…
High Growth Year-Over-Year Midstream Throughput AM reported strong year-over-year throughput growth in 1Q19 Low Pressure Gathering (MMcf/d) Compression (MMcf/d) Fixed Fee: 0.32/Mcf 2,800 Fixed Fee: 0.19/Mcf 2,800 2,562 2,400 2,255…
Capital and Adjusted EBITDA Contribution - 2019 2019 organic capital budget fully funded with retained cash flow and credit facility borrowings no expectation 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 Insulates EBITDA Growth 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%…
Liquidity & Debt Term Structure 3/31/2019 Debt Maturity Profile AM Credit Facility AM Senior Notes 1,200 1,000 800 No maturities 600 until 2022 1,100 400 650 650 200 0 2018 2019 2020 2021 2022 2023 2024 2025 2026…
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 (the Company) 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) Three Months Ended March 31, 2018 2019 Pro forma net income 50,970 82,123 Amortization of customer relationships 8,440 8,440 Impairment…
Antero Midstream Non-GAAP Reconciliation The following reconciles net income to Adjusted EBITDA and Distributable Cash Flow on a Pro Forma basis: ( in thousands) 2018 Pro forma net income 585,944 Amortization of customer…
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 Non-GAAP Measures Continued Adjusted Net Cash Provided by Operating Activities and Free Cash Flow Adjusted Net Cash Provided by Operating Activities represents net cash provided by operating activities excluding net cash…
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