Partnership Overview March 2017
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 expressions 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, 2016 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’ expected future growth, Antero Resources’ ability to meet its drilling and development plan, commodity price volatility, inflation, 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, 2016 and in the Partnership’s subsequent filings with the SEC. Our ability to make future distributions is substantially dependent upon the development and drilling plan of Antero Resources, which itself is substantially dependent upon the review and approval by the board of directors of Antero Resources of its capital budget on an annual basis. In connection with the review and approval of the annual capital budget by the board of directors of Antero Resources, the board of directors will take into consideration many factors, including expected commodity prices and the existing contractual obligations and capital resources and liquidity of Antero Resources at the time. 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 Midstream Partners LP is denoted as “AM” and Antero Resources Corporation is denoted as “AR” in the presentation, which are their respective New York Stock Exchange ticker symbols. 1
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 Note: Market cap and enterprise value as of 2/27/2017 pro forma for the 6.9 million unit offering on 2/6/2017 with net proceeds of $223 million used to fund $155 million MPLX JV payment. 1. Twelve months ended 12/31/2016. 2 2. Net debt pro forma for the 6.9 million unit offering on 2/6/2017 with net proceeds of $223 million used to fund $155 million MPLX JV payment. 3. Excludes 173,000 gross acres dedicated to third parties for gathering and compression services.
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 (1) • Further aligns the largest core liquids-rich Keystone Complex resource base with the largest processing and fractionation footprint in Appalachia Hopedale Fractionation ‒ Up to 11 additional processing plants Complex Harmon Creek Complex Hopedale 1 – 2 – In Service ‒ 20,000 Bbl/d of capacity at Hopedale 3 Hopedale 3 – In Service – 60,000 Bbl/d Potential Future Capacity Ohio Condensate fractionation facility with an option to invest in Stabilization future fractionation capacity ‒ Over $800 million project inventory through Cadiz Complex 2020 (net to AM), including ~$155 million Houston Complex contribution upfront for processing and fractionation infrastructure • Seneca Complex Fits with AM’s “full value chain organic growth” Seneca 1 - 4 - In Service strategy Majorsville Complex ‒ Long-term 100% fixed-fee revenues ‒ Significant MVCs on processing Mobley Complex ‒ Full build out EBITDA multiple of 4x – 6x ‒ 15% – 18% IRR New Processing Complex (2) Future Processing • Improved visibility throughout vertical value TBA 1 – 6 – Potential – 1,200 MMcf/d chain and ability to deploy “just-in-time” capital supporting Antero Resources’ rich gas development Sherwood Complex ‒ Pro forma for the JV, AM has $2.7 billion of Sherwood 1 - 6 - In Service – 1,200 MMcf/d Sherwood 7 – 1Q17 – 200 MMcf/d organic growth opportunities from 2017 – Sherwood 8 – 3Q17 – 200 MMcf/d Sherwood 9 – 1Q18 – 200 MMcf/d 2020 at attractive 4x – 6x investment to Sherwood 10 – 3Q18 – 200 MMcf/d Sherwood 11 – Potential – 200 MMcf/d EBITDA multiples 1. RigData as of 01/06/17. Rigs drilling in rich gas areas only. 3 2. New West Virginia site location still to be determined.
JOINT VENTURE: PROCESSING ASSET SUMMARY Summary Joint Venture Processing Assets • AM and MPLX have formed a 50/50 joint venture to invest (1) New Complex (2) in Marcellus processing infrastructure Future Processing ‒ TBA 1 – 6 – Potential – 1,200 MMcf/d The JV could construct up to 11 new 200 MMcf/d processing plants at both Sherwood and a new location 1 2 3 4 5 6 in Tyler, Wetzel or Doddridge County to meet Antero’s liquids-rich gas production growth profile 195,000 Gross Acres ‒ All JV processing assets will be operated by MPLX • Antero Resources is the anchor producer ‒ Long-term fixed-fee agreement with inflation protection and significant minimum volume commitments 167,000 Gross Acres • Antero Midstream has released 195,000 gross Sherwood Complex processable acres to the JV in Tyler, Wetzel and Ritchie Sherwood 1 - 6 - In Service Counties, WV Sherwood 7 – 1Q17 Sherwood 8 – 3Q17 ‒ Sherwood 9 – 1Q18 Over 2,100 undrilled locations and 29 Tcfe of net 3P Sherwood 10 – 3Q18 reserves dedicated to the JV (1) Sherwood 11 – Potential AM expects the JV to invest up to $1.3 billion (3) over the 4 5 6 • 1 2 3 next four years in processing infrastructure 7 8 9 10 11 10 ‒ Net capital investment of up to $650 million over 4 years, including ~$95 million contribution up front for processing infrastructure under construction (three Sherwood plants) ‒ JV excludes NGL pipeline infrastructure as well as de- = 200 MMcf/d of capacity ethanization facilities Joint Venture Assets Plants JV Plants Note: RigData as of 01/06/17. Rigs drilling in rich gas areas only. 1. Antero undrilled 3P locations and 3P reserves at strip pricing as of 12/31/2016 with Btu greater than 1100. 4 2. New West Virginia site location still to be determined. 3. Antero Midstream management estimate.
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