Citigroup MLP / Midstream Infrastructure Conference August 19 – 20, 2015
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. All statements, other than statements of historical facts, included in this presentation that address activities, events or developments that Antero Midstream Partners LP, and its subsidiaries (collectively, the “Partnership”) expect, believe or anticipate will or may occur in the future are forward - looking statements. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “project,” “foresee,” “should,” “would,” “could,” or other similar expr essions are intended to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this presentation specifically include expectations of plans, strategies, objectives, and anticipated financial and operating results of the Partnership and Antero Resources Corporation (“Antero Resources”). These statements are based on certain assumptions made by the Partnership and Antero Resources based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced under the heading “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014 and in the Partnership’s subsequent filings with the SEC. The Partnership cautions you that these forward-looking statements are subject to risks and uncertainties that may cause these statements to be inaccurate, and readers are cautioned not to place undue reliance on such statements. These risks include, but are not limited to, Antero Resources’ ability to meet its drilling and development plan, commodity price volatility, inflatio n, environmental risks, drilling and completion and other operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks discussed or referenced under the heading “Item 1A. Risk Factors” in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2014 and in the Partnership’s subsequent filings with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Partnership undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law. Antero Resources Corporation is denoted as “AR” and Antero Midstream Partners LP is denoted as “AM” in the presentation, which are their respective New York Stock Exchange ticker symbols. 1
ANTERO ADVANCED WASTEWATER TREATMENT COMPLEX Advanced Wastewater Treatment Complex Water Asset System Map • Veolia Water Technologies, Inc. will design and build the largest advanced wastewater treatment complex in Appalachia to support the growing needs for the treatment and recycling of flowback and produced water for Antero Resources ‒ Additional opportunities to treat volumes from third party operators • Complex will be strategically located in the core of the Marcellus Shale in West Virginia and will aggregate both Marcellus and Utica Shale flowback and produced water volumes • Facility will produce fresh water that meets stringent fresh water quality specifications. This allows it to be returned directly into Antero’s existing freshwater delivery system to provide water for both Marcellus and Utica well completions in West Virginia ‒ Reliable year-round water source for drilling and completion activities ‒ Reduces environmental impact by eliminating hundreds of thousands of water truckloads every year Advanced Wastewater Treatment Complex Capital expenditures ($ million) (1) ~$275 ~$55 – $65 Standalone EBITDA at 100% utilization (2) ~4x – 5x Implied investment to standalone EBITDA build-out multiple Per well savings to Antero Resources ~$150,000 In service date Late 2017 Antero advanced wastewater treatment facility Operating capacity (Bbl/d) 60,000 connects to Antero freshwater delivery system Operating agreement 10 Years 2 1) Includes capital to construct pipeline to connect facility to freshwater delivery system. 2) Standalone EBITDA projection assumes inter-company fixed fee for recycling of $4.00 per barrel and 60,000 barrels per day of capacity. Does not include potential sales of marketable byproducts.
ANTERO INTEGRATED WATER BUSINESS Advanced Wastewater Treatment Illustrative Produced & Flowback Water Volumes • Antero’s advanced wastewater treatment facility will (Bbl/d) 80,000 Antero Advanced Wastewater Treatment Capacity (Bbl/d) incorporate Veolia’s proprietary evaporation and Produced/Flowback Volumes (Bbl/d) 70,000 crystallization technology to treat a full range of water 3 rd Party Recycling 60,000 qualities 50,000 and Well Disposal ‒ This proven process has been used for over 40 40,000 Antero Advanced years to treat wastewater and produce 30,000 Wastewater Treatment stringent quality fresh water 20,000 • Operating agreement contains process guarantees 10,000 including 97% uptime availability 0 Antero Produced Water Services and Freshwater Delivery Business Well Pad Freshwater Delivery System Antero Advanced Wastewater Treatment Well Pad Flowback and Fresh Water Produced Water Salt Marketable byproduct Completion Operations Marketable byproduct used in oil Calcium Chloride and gas operations 3 Contemplated Drop Down Assets
LEADING UNCONVENTIONAL MIDSTREAM BUSINESS MODEL High Growth Sponsor Largest Dedicated Core Drives AM Throughput Liquids-Rich Acreage and Distribution Growth Position in Appalachia 3 2 Liquids- Growth Consolidated Acreage Premier E&P Operator Rich Position in Lowest in Appalachia 1 Sponsor 4 Unit Cost Basin Sustainable Strength Business Model Premier Appalachian Midstream Partnership Run by Co-Founders 8 5 Strong High Financial Visibility Position “Just - in Time” No Debt and $1.1 Billion 7 Value 6 Mitigated Non-Speculative of Liquidity Chain Commodity Capital Program Opportunity Risk Opportunity to Build Out 100% Fixed Fee and Northeast Value Chain Largest Firm Transport and Hedge Portfolio 4
SPONSOR STRENGTH – LEADERSHIP IN APPALACHIAN BASIN Antero has the largest proved reserve base, the largest core liquids-rich acreage position and is one of the largest producers in the Appalachian Basin Top Producers in Appalachia (Net MMcfe/d) – 2Q 2015 (1)(2) Top 12 U.S. Natural Gas Producers (Net MMcf/d) – 2Q 2015 (1) 3,500 1,800 Appalachian Peers 1,600 3,000 1,400 2,500 1,200 2,000 1,000 800 1,500 600 1,000 400 500 200 0 0 Appalachian Producers by Core Net Acres (000’s) – YE 2014 (3)(4) Appalachian Producers by Proved Reserves (Bcfe) – YE 2014 (1)(2) 600 14,000 Core Net Acres - Dry 500 12,000 Core Net Acres - Liquids-Rich 10,000 400 8,000 300 6,000 200 4,000 100 2,000 - 0 1. Based on company filings and presentations. 5 2. Appalachian only production and reserves where available. Excludes companies that do not break out Appalachian production including CHK, CVX, HES and XOM. 3. Based on Antero geologic interpretation supported by state well data, company presentations and public land data. Peer group includes AEP, CHK, CNX, COG, CVX, EQT, NBL, RICE, RRC, STO, SWN. 4. Southwestern leasehold and reserves include the impact from STO and WPX property acquisitions closed in January 2015. 5. Includes proved reserves categorized in “Northern Division” consisting of Utica Shale, Marcellus Shale and Powder River Basin .
SPONSOR STRENGTH – MOST ACTIVE OPERATOR IN APPALACHIA COMBINED TOTAL – 12/31/14 RESERVES Assumes Ethane Rejection Net Proved Reserves 12.7 Tcfe Net 3P Reserves 40.7 Tcfe Pre-Tax 3P PV-10 $22.8 Bn 1H 2015 Avg SW Marcellus & Utica (2) Net 3P Reserves & Resource 53 to 57 Tcfe 14 Net 3P Liquids 1,026 MMBbls 12 10 % Liquids – Net 3P 15% Rig Count 8 2Q 2015 Net Production 1,484 MMcfe/d 6 - 2Q 2015 Net Liquids 45,900 Bbl/d 4 Net Acres (1) 559,000 2 0 Undrilled 3P Locations 5,331 UTICA SHALE CORE Operators Net Proved Reserves 758 Bcfe Net 3P Reserves 7.6 Tcfe MARCELLUS SHALE CORE Pre-Tax 3P PV-10 $6.1 Bn Net Acres 149,000 Net Proved Reserves 11.9 Tcfe Undrilled 3P Locations 1,024 Net 3P Reserves 28.4 Tcfe Pre-Tax 3P PV-10 $16.8 Bn Net Acres 410,000 Undrilled 3P Locations 3,191 UPPER DEVONIAN SHALE WV/PA UTICA SHALE DRY GAS Net Proved Reserves 8 Bcfe Net 3P Reserves 4.6 Tcfe Net Resource 12.5 to 16 Tcf Net Acres 181,000 Pre-Tax 3P PV-10 NM Undrilled Locations 1,889 Undrilled 3P Locations 1,116 Note: 2014 SEC prices were $4.07/MMBtu for natural gas and $81.48/Bbl for oil on a weighted average Appalachian index basis. 6 1. All net acres allocated to the WV/PA Utica Shale Dry Gas and Upper Devonian Shale are included among the net acres allocated to the Marcellus Shale as they are stacked pay formations attributable to the same leasehold. 2. Antero and industry rig locations as of 6/26/2015, and average rig count for 1H 2015, per RigData.
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