Partnership Overview December 2017

Transcription

1 Partnership Overview December 2017

2 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 ) or Antero Midstream GP LP and its subsidiaries other than the Partnership (collectively, AMGP ) as applicable 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 AMGP, the Partnership and Antero Resources Corporation ( Antero Resources ). These statements are based on certain assumptions made by the AMGP, 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 AMGP or the Partnership, as applicable, 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, as well as the factors discussed under Risk Factors in AMGP s final prospectus dated May 3, 2017 and filed with the SEC on May 5, AMGP and the Partnership caution 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. The Partnership s 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. In addition, AMGP s ability to make future distributions is substantially dependent on the Partnership s business, financial conditions and the ability to make distributions. Any forward-looking statement speaks only as of the date on which such statement is made, and neither AMGP or the Partnership undertakes any 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, Antero Midstream GP LP is denoted as AMGP and Antero Resources Corporation is denoted as AR in the presentation, which are their respective New York Stock Exchange ticker symbols. 1

3 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 & Production 53% 100% Incentive Distribution Rights (IDRs) (NYSE: AMGP) Enterprise Value : $3.8 Bn General Partner Public 47% Note: Enterprise Value as of 9/30/2017. AR enterprise value excludes 53% ownership in Antero Midstream. (NYSE: AM) Enterprise Value : $7.0 Bn Midstream MLP 2

4 Antero Midstream Profile Market Cap... Enterprise Value (1)..... LTM EBITDA..... % Gathering/Compression % Water Net Debt/LTM EBITDA. Corporate Debt Rating. Gross Dedicated Acres (2). $5.9 Billion $7.0 Billion $513 Million 57% 43% 2.1x Ba2 / BB 562,000 Note: Market cap and enterprise value as of 9/30/ Based on AM market capitalization plus debt minus cash. 2. Excludes 146,000 gross acres dedicated to third party for gathering and compression services. 3

5 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 development plan, resulting in top-tier distribution growth of 28% - 30% annually through 2020 Not dependent on drop-downs, acquisitions, 3 rd party business or equity markets to deliver growth Just-in-time Non-speculative Capital Investment High visibility capital investment driven by superior asset utilization Enter into long-term fixed-fee agreements with minimum volume commitments to minimize direct commodity price risk and insulate cash flows Opportunistically target third party business leveraging existing infrastructure Capture the Energy Value Chain Expand operations across energy value chain to enhance the most integrated natural gas and NGL story in the US Capture significant value and opportunity in integrated operations and cash flow diversity Maintain a Strong and Flexible Balance Sheet Maintain leverage in the low 2x range Target distribution coverage ratio >1.25x through

6 Antero Midstream Asset Overview Midstream Infrastructure (In Service) Gathering Pipelines (Miles) 341 Sherwood Processing Complex Compressor Station Compression Capacity (MMcf/d) 1,600 Condensate Pipelines (Miles) 19 Processing Plant (MMcf/d) 400 Fractionation Plant (Bbl/d) 20,000 Fresh Water Pipelines (Miles) 323 Fresh Water Impoundments 38 Regional Pipeline Capacity (Bcf/d) 1.4 Antero Clearwater Facility (Bbl/d) (1) 60,000 Antero Clearwater Facility. 1. The Antero Clearwater Facility is scheduled to be placed into service in the fourth quarter of Antero Clearwater Facility Sherwood Processing Facility Stonewall Pipeline Gathering Pipelines Freshwater Delivery Pipelines` Antero Rig 5

7 Antero Midstream & AMGP Investment Highlights 1 Strong Sponsor that has the Largest Core Drilling Inventory in Appalachia and is the Largest NGL Producer in the U.S. 2 High Growth Organic Business Model Requiring No Equity Funding and Free Cash Flow Positive in 2018 (1) 3 Efficient Capital Investment Results in Attractive Partnership-Wide Rates of Return 4 Opportunity to Further Build out Northeast Value Chain and Diversify Cash Flow Profile 5 Strong Financial Position with Low Leverage and High Distribution Coverage 1. Before AM distributions. 6

8 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 44% of the total liquids rich undrilled inventory 12 NE Marcellus Rigs Undrilled Core Marcellus and Core Utica 3P Locations (1)(2) 31 Utica Rigs 33 SW Marcellus Rigs 76 Total Rigs Undrilled Locations 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, ,890 Core - NE Pennsylvania Dry Locations Core - SW Marcellus & Utica Dry Locations Core - Marcellus & Utica Liquids Rich Locations 2,096 1,757 1,024 1, Core Liquids-Rich Appalachia Undrilled Locations Avg. - Lateral Antero EQT CHK Range Rice Consol Cabot Chevron Noble Ascent SWN Gulfport Length 7,812 6,429 6,355 6,225 8,601 7,762 5,758 8,594 9,262 7,550 7,085 8,880 Core outlines based upon Antero geologic interpretation, well control and peer acreage positions based on investor presentations, news releases, 10-K/10-Qs and various other sources. Rig information per RigData as of 10/30/ Peers include Ascent, CHK, CNX, COG, CVX, EQT, GPOR, HG, RICE, RRC and SWN. * Undrilled location count net of acreage allocated to publicly disclosed joint ventures. CNX 6% NBL 8% RRC 10% SWN 5% CHK 4% EQT 13% RICE 3% Ascent 3% CVX 2% GPOR 2% 44% 7

9 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 MBbl/d % $ % 11% 13% 8% Largest NGL producer in the U.S. in 3Q 17 with the Highest exposure to NGLs among the top 10 peer group 12% 12% 12% 13% $16.93 $15.15 $31.07 $22.38 $20.72 $21.83 $18.96 $22.91 $22.99 AR RRC DVN APC EOG COP CHK PXD NBL OXY 7% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% NGL % of Product Revenues 3Q17 Daily NGL Production NGL % of Product Revenues Pre-hedged Realized Price ($/Bbl) Source: SEC filings and company press releases. Realized prices are weighted average including ethane (C2) where applicable.. 8

10 1 Longer Laterals Materially Improve E&P Economics Antero has been a leader in drilling long laterals in Appalachia Well Count Antero Lateral Lengths To Date Future completion programs focused on longer lateral length locations Antero # of Wells Avg. Lateral Length Total Drilling Program to Date 894 8, Program (2) 135 9, Program (2) 465 9,500 Wells to Date 10, , ,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14, Lateral Length (1) 6,000 Foot Lateral 9,000 Foot Lateral 12,000 Foot Lateral 15,000 Foot Lateral Pre-Tax Economics Pre-Tax Economics Pre-Tax Economics Pre-Tax Economics ROR (%) 39% ROR (%) 55% ROR (%) 61% ROR (%) 67% PV-10 ($MM) $5.0 PV-10 ($MM) $9.5 PV-10 ($MM) $12.4 PV-10 ($MM) $16.0 NOTE: Assumes 2.0 Bcf/1,000 type curve for the Antero Marcellus Highly-Rich Gas (1250 Btu) and Nymex Henry Hub prices of $3.00 and WTI of $ All laterals rounded to the nearest thousand. 788 of the 894 wells have been completed. 2. Represents wells placed to sales. 9

11 1 Well Recoveries Continue to Improve and Advanced Completions Require More Water AR s 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 243 days) AR Type Curve Outperformance 3,500 3,000 1,875 lb/ft $0.89 MM/1,000 Well Cost 90 wells 40 Bbl/ft of Water 1,500 lb/ft $0.85 MM/1,000 Well Cost 38 wells 34 Bbl/ft of Water Wellhead Production (Cumulative MMcf) 2,500 2,000 1,500 1,000 2,500 lb/ft $0.97 MM/1,000 Well Cost 21 wells 48 Bbl/ft of Water 2.0 Bcf/1,000' Type Curve Cumulative Production Days From Peak Gas 1. Cumulative average production per well normalized to a 9,000 lateral. Cumulative production lines excludes wellhead condensate. 2. 1,875 pounds per foot type curve represents 1,750 pounds per foot wells and 2,000 pounds per foot wells. 10

12 1 AR s 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 6.0 Standalone E&P Leverage Net Production (Actual) Net Production (Guidance) Net Production (Target) 4.5x 4.0x Reduce Capex & Leverage Net Production (Bcfe/d) x x x Target Leverage in Low 2x x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x Standalone E&P Leverage Maintain Production Growth Generate Free Cash Flow A 2015A 2016A 2017 Guidance 2018 Target 2019 Target 2020 Target 0.0x (1) Assumes WTI price of $54 and Nymex Henry Hub price of $

13 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 no change to hedge volumes 80% of targeted natural gas production hedged through 2020 at $3.43/MMBtu $1.2 billion of remaining hedge value Utilizing a portion of net operating losses carried forward to eliminate cash taxes on realized gains BBtu/d 2,400 2,000 1,600 1, $3.64 No Change to Price $3.91 $3.50 $ x 3.0x 2.0x 1.0x 0.0x $3.63 $3.50 $3.25 AR Leverage Reduction (1) 3.4x Natural Gas Hedge Position Consolidated 3.2x Standalone 3.0x 2.6x 6/30/2017 9/30/2017 Previous Hedge Price Restructured Hedge Price $3.31 $3.00 Remaining Value as of 9/30/17: $1.2 Billion (2) ~$750 Million of Proceeds Hedged Volume Current NYMEX Strip (2) $3.16 $3.00 $2.91 $/Mcf $4.00 $3.00 $ AR standalone LTM EBITDAX includes $119 million in distributions from AR s ownership of AM common units. 2. Nymex strip pricing as of 9/30/

14 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) 2,000 1,800 1,600 1,400 1,200 1, Fixed Fee: $0.32/Mcf 1,431 1,587 3Q Q ,400 1,200 1, Fixed Fee: $0.19/Mcf 1, Q Q 2017 High Pressure Gathering (MMcf/d) Fresh Water Delivery (MBbl/d) 2,000 1,800 1,600 1,400 1,200 1, Fixed Fee: $0.19/Mcf 1,351 1,918 3Q Q Fixed Fee: $3.69/Bbl Q Q 2017 Note: All fees are as of year end Marcellus Utica 13

15 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 Industry leading organic growth story ~$2.3 billion in capital spent through 9/30/2016 on gathering and compression and water assets Assumes midpoint guidance EBITDA for 2017 (excluding JV) 4.4x capital expenditures to buildout EBITDA 10-year identified project inventory of $5.0 billion 12.0x 10.0x Organic Adjusted EBITDA Multiple vs. Drop Down Multiples 8.0x 6.0x 4.0x 2.0x 0.0x 6.9x 6.1x 4.5x 4.4x Drop Down Median: 8.8x E Drop AM Organic EBITDA Multiple (1) Down Antero Midstream Project Unlevered IRRs (2) AM Builds at 3x to 6x EBITDA vs. Other MLPs that Drop Down/Buy at 8x to 12x+ EBITDA Internal Rate of Return 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 35% 25% LP Gathering Wtd. Avg. 24% IRR 25% 15% HP Gathering 20% 10% Compression 40% 30% Fresh Water Delivery 25% 18% 15% 15% Advanced Wastewater Treatment Note: Precedent data per IHS Herold s research and public filings. 1. Antero Midstream organic multiples calculated as gathering and compression and water capital expended through Q3 of each respective year divided by Adjusted EBITDA, assuming month lag between capital incurred and full system utilization. 2. Selected gathering and compression drop down acquisitions since 1/1/2015. Drop down multiples are based on NTM EBITDA. Source: Public company filings and press releases. Processing/ Fractionation 14

16 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 (ROIC) AM s focus on organic growth and capital efficiencies results in an increasing returns on invested capital through 2020 based on consensus estimates Antero Midstream s ROIC declined in 2015 due to the water drop-down transaction and associated earn-out payment included in liabilities on balance sheet 2017 estimated ROIC of 15% in fourth year of operations 25% 20% 15% 10% 12% 9% 12% 15% 17% 19% 20% Return on Invested Capital = 5% Net Income + Interest Expense + Taxes Average Total Liabilities and Partners Capital Current Liabilities 0% Actual Consensus 2014A 2015A 2016A 2017E 2018E 2019E 2020E Source: Factset consensus estimates. 15

17 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 Midpoint of Guidance and Long-term Targets $3.00 Distribution Guidance Distribution Target 3.0x Distribution Per Unit $2.50 $2.00 $1.50 $1.00 $0.50 DCF Coverage 1.8x $1.03 $ x Target Leverage in Low 2x DCF Coverage >1.25x 2.5x 2.0x 1.5x 1.0x DCF Coverage Ratio and Leverage Ratio $ A 2017 Guidance 2018E Target 2019E Target 2020E Target 0.5x Note: Future distributions subject to Board approval. 16

18 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 Long-term Targets AMGP Cash Available for Distribution ($MM) $250 $200 $150 $100 $50 $0 AM DPU $0.00 $0.00 $0.68 AMGP Estimated Cash Available for Distribution (1) AMGP Distributions per Share Target (1) $0.80 $0.04 $1.03 Early Stage IDR Participation $0.21 $1.33 (2) $0.45 $1.71 $0.73 $2.21 $1.11 $2.85 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $0.00 AMGP Distributions Per Share ($/Share) Year MQD 2015A 2016A 2017G 2018T 2019T 2020T 1. AMGP estimated cash available for distribution (CAFD) is net of (i) Series B unit distributions, (ii) general and administrative expense, and (iii) U.S. federal and state income taxes (assuming 38% effective income tax rate) AMGP distribution assumes full-year distribution. Pro-rated distribution from IPO date to year-end 2017 equal to $0.16 per share at the midpoint. 17

19 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 Lateral Lengths (Feet) Increasing Wells Per Pad 12,000 11,000 10,000 9,000 8,000 7,000 6,000 5,000 17,400 10,300 8, A 2017E Record A 2017E Record Increasing Recoveries Per 1,000 (Bcfe) Increasing Water Per Foot (Bbl/ft) A 2017E Record A 2017E Record 18

20 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 In-service 2017 Budget 19

21 4 Northeast Value Chain Opportunity Participating in the full value chain diversifies and sustains Antero s integrated business model $5.0 billion organic project backlog and $1.0 billion downstream investment opportunity set Upstream Downstream AM Assets AM/MPLX JV Assets Potential AM Opportunities ~$800 Million JV Project Backlog FRACTIONATION NGL PRODUCT PIPELINES TERMINALS & STORAGE (ETHANE, PROPANE, BUTANE) WELL PAD LOW PRESSURE GATHERING COMPRESSION HIGH PRESSURE GATHERING ~$4.2 Billion Organic Project Backlog GAS PROCESSING (50% INTEREST) REGIONAL GATHERING PIPELINE (15% INTEREST) Y-GRADE PIPELINE >$1.0 Billion Downstream Investment Opportunity Set PDH PLANT LONG HAUL PIPELINE END USERS Note: Third party logos denote company operator of respective asset. INTERCONNECT 20

22 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 2020E Regional Gas Pipeline 2% Processing & Fractionation JV 10% 2% Regional Gas Pipeline 35% Fresh Water 63% Delivery Gathering & Compression 24% Fresh Water Delivery 60% Gathering & Compression EBITDA Contribution % 4% Wastewater Treatment EBITDA Contribution % 21

23 5 Strong Financial Position Strong and flexible balance sheet combined with significant liquidity AM Liquidity (9/30/2017) ($ in millions) Revolver Capacity $1,500 Less: Borrowings (418) Plus: Cash 2 Liquidity $1,084 Financial Flexibility $1.5 billion revolver in place to fund future growth capital (5.0x Debt/EBITDA Cap) Liquidity of $1,084 million at 9/30/2017 based off $1,500 million revolver Sponsor (NYSE: AR) has Ba2/BB corporate debt ratings AM corporate debt ratings also Ba2/BB AM Peer Leverage Comparison (1) Net Debt / LTM EBITDA 4.5x 4.0x 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 2.1x 1. As of 9/30/2017. Peers include TEP, EQM, WES, RMP, SHLX, DM, and CNNX. 22

24 AM Upside Opportunity Set AM has multiple pathways to upside beyond its $5.0 billion organic project backlog 1 OPPORTUNITY Downstream Infrastructure Buildout POSITIONING Antero leverages its resource and production to optimize projects for AR and AM invests in the infrastructure Natural gas and NGL pipelines, terminals and storage 2 AR Acreage Consolidation Undedicated acreage acquisitions by AR are dedicated to AM for gathering, compression, processing and water services AR has added over 200,000 net acres since 2013 IPO 3 Third Party Business Fresh water delivery, waste water treatment and gathering/compression services to capture third party business in Appalachia and enhance asset utilization 4 Upper Devonian ~1,000 incremental locations prospective for Upper Devonian dedicated to AM for gathering and water services Volumes can go to Marcellus system already in place 5 WV/PA Utica Dry Gas 400 Deep Utica locations underlying the Marcellus in West Virginia dedicated to AM and will require some new dry gas infrastructure Industry is continuing to delineate deep Utica resource 23

25 Antero Midstream Detailed Asset Overview 24

26 Marcellus Gathering and Compression Assets Marcellus Gathering & Compression Provides Marcellus gathering and compression services Liquids-rich gas is delivered to AM/MPLX s 1.6 Bcf/d Sherwood processing complex Significant growth projected over the next twelve months as set out below: Acquisition Acreage YE 2016 YE 2017E Low Pressure Gathering Pipelines (Miles) High Pressure Gathering Pipelines (Miles) Compression Capacity (MMcf/d) ,015 1,505 Antero plans to operate an average of four drilling rigs in the Marcellus Shale during 2017, including intermediate rigs Antero plans to complete 110 Marcellus wells in 2017 AM dedicated acreage contains over 2,000 gross undeveloped Marcellus locations Antero 2017 development plan averages nine wells per pad, improving economics at AM Note: Antero acreage position reflects tax districts in which greater than 3,000 net acres are owned. 25

27 Utica Gathering and Compression Assets Utica Gathering & Compression Provides Utica gathering and compression services Liquids-rich gas delivered into MPLX s 800 MMcf/d Seneca processing complex Condensate delivered to centralized stabilization and truck loading facilities Significant growth projected over the next twelve months as set out below: YE 2016 YE 2017E Low Pressure Gathering Pipelines (Miles) High Pressure Gathering Pipelines (Miles) Condensate Pipelines (Miles) Compression Capacity (MMcf/d) Antero plans to operate an average of three drilling rigs in the Utica Shale during 2017, including intermediate rigs All 25 gross wells targeted to be completed in 2017 are on Antero Midstream s footprint Antero 2017 development program plan averages six wells per pad Note: Antero acreage position reflects tax districts in which greater than 3,000 net acres are owned. 26

28 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 rivers & reservoirs (2) 100% fixed fee long term contracts Projected Water Business Infrastructure (1) Marcellus Shale Utica Shale Total YE 2016 Cumulative Fresh Water Delivery Capex ($MM) (2) $610 $135 $745 Water Pipelines (Miles) Fresh Water Storage Impoundments E Fresh Water Delivery Capex Budget ($MM) $50 $25 $75 Water Pipelines (Miles) Fresh Water Storage Impoundments Cash Operating $1.0MM - Margin per Well (3) $1.1MM $925k - $975k 2017E Advanced Waste Water Treatment Budget ($MM) $ E Total Water Business Budget ($MM) $175 Antero Clearwater advanced wastewater treatment facility currently under construction connects to Antero freshwater delivery system Note: Antero acreage position reflects tax districts in which greater than 3,000 net acres are owned. 1. All Antero water withdrawal sites are fully permitted under long-term state regulatory permits both in WV and OH. 2. As of 12/31/ Marcellus assumes fee of $3.69 per barrel subject to annual inflation and 40 barrels of water per lateral foot that utilize the fresh water delivery system based on 9,000 foot lateral. Operating margin excludes G&A. Utica assumes fee of $3.64 per barrel subject to annual inflation and 37 barrels of water per lateral foot that utilize the fresh water delivery system based on 9,000 foot lateral. Water volumes assume 5% recycling. Operating margin excludes G&A. 27

29 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 Veolia will build and operate, and Antero will fund and own the Clearwater facility Will treat and recycle AR produced and flowback water Creates additional year-round water source for completions Will have capacity for significant third party business Advanced Wastewater Treatment Complex Estimated capital expenditures ($ million) (1) ~$275 Standalone EBITDA at 100% utilization (2) ~$55 $65 Implied investment to standalone EBITDA build-out multiple ~4x 5x Estimated per well savings to Antero Resources ~$150,000 Estimated in-service date Late 2017 Operating capacity (Bbl/d) 60,000 Operating agreement 20 Years, Extendable (Bbl/d) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Illustrative Produced & Flowback Water Volumes Antero Clearwater Advanced Wastewater Treatment Capacity (Bbl/d) Produced/Flowback Volumes (Bbl/d) 3 rd Party Recycling and Well Disposal Antero Produced Water Services and Freshwater Delivery Business Capacity for third party business Antero Advanced Wastewater Treatment Well Pad Antero Advanced Wastewater Treatment Freshwater delivery system Well Pad Flowback and produced Freshwater Water Salt Marketable byproduct Producing Calcium Chloride Marketable byproduct used in oil and gas operations Completion Operations Integrated Water Business 1. Includes capital to construct pipeline to connect facility to freshwater delivery system. Includes $10 million that AR agreed to fund in the drop down transaction. 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. 28

30 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 million investment) At full capacity, will eliminate ~172,000 water truck trips per year, or ~15 MMBbls 29

31 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 Achievements Since Announcement Successfully placed in service two processing plants with 400 MMcf/d of combined capacity Sherwood 7: Fully Utilized Sherwood 8: Fully Utilized Sherwood 9: Expected year-end 2017 Announced additional commitments for Sherwood Plants 10 and 11 MarkWest / Antero Midstream Hopedale Fractionation Complex C3+ Fractionation 1 & 2: 120 MBbl/d In Service C3+ Fractionation 3: 60 MBbl/d In Service 20 MBbl/d In Service, net to JV Strategic Rationale Further aligns the largest core liquids-rich resource base with the largest processing and fractionation footprint in Appalachia Fits with AM s full value chain organic growth strategy Improved visibility throughout vertical value chain and ability to deploy just-intime capital supporting Antero Resources rich gas development Future Processing Complex TBD 1 6 Potential 1,200 MMcf/d (1) MarkWest / Antero Midstream Sherwood Complex: 11 x 200 MMcf/d Sherwood 1 6: 1.2 Bcf/d In Service Sherwood 7: 200 MMcf/d In Service Sherwood 8: 200 MMcf/d In Service Sherwood 9: 200 MMcf/d 4Q 2017 Sherwood 10: 200 MMcf/d 3Q 2018 Sherwood 11: 200 MMcf/d 4Q 2018 De-ethanization: 40 MBbl/d In Service Note: RigData as of 9/30/17. Rigs drilling in rich gas areas only. 1. New West Virginia site location still to be determined. 30

32 Appendix 31

33 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 $445 Year-over-Year Distribution Growth 28% 30% DCF Coverage Ratio 1.30x 1.45x Operating: Gathering Pipelines (Miles) 35 Compression Capacity Added (MMcf/d) 490 Fresh Water Pipeline Added (Miles) 37 Fresh Water Impoundments 4 Capital Expenditures ($MM): Gathering and Compression Infrastructure $350 Fresh Water Infrastructure $75 Advanced Wastewater Treatment $100 Processing and Fractionation Joint Venture $275 Total Capital Expenditures ($MM) $ Per press release dated 2/6/

34 2017 Capital Budget Antero Midstream s 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 $480 Million 2016 By Segment ($MM) $800 Million 2017 By Segment ($MM) Advanced Wastewater Treatment $130 27% Stonewall $45 9% Fresh Water $50 11% By Area Gathering and Compression $255 53% Processing and Fractionation $275 34% Fresh Water $100 13% 130 Completions By Area Gathering and Compression $350 44% Advanced Wastewater Treatment $75 9% Utica $24 5% Utica $120 15% Marcellus $456 95% Marcellus $680 85% 33

35 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 maintain the average throughput volume on our system over the LTM period (1) Compare this number of well connections to the total number of well connections estimated to be made during such period, and (2) Designate an equal percentage of our estimated low pressure gathering capital expenditures as maintenance capital expenditures Maintenance Capital Calculation Methodology Fresh Water Distribution Estimate the number of wells to which we would need to distribute fresh water during the forecast period in order to maintain the average fresh water throughput volume on our system over the LTM period (1) Compare this number of wells to the total number of new wells to which we expect to distribute fresh water during such period, and (2) Designate an equal percentage of our estimated water line capital expenditures as maintenance capital expenditures Maintenance capital expenditures are cash expenditures (including expenditures for the construction or development of new capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, our operating capacity or revenue Illustrative Example LTM Production NTM Production Forecast Average LTM Production Decline of LTM average throughput to be replaced with production volume from new well connections LTM Forecast Period 34

36 Antero Midstream EBITDA Reconciliation EBITDA and DCF Reconciliation Three months ended September 30, Net income $ 70,524 $ 80,893 Interest expense 5,303 9,311 Depreciation expense 26,136 30,556 Accretion of contingent acquisition consideration 3,527 2,556 Equity-based compensation 6,599 7,199 Equity in earnings of unconsolidated affiliates (1,544) (7,033) Distributions from unconsolidated affiliates 4,300 Adjusted EBITDA $ 110,545 $ 127,782 Interest paid (4,043) (20,554) Decrease in cash reserved for bond interest 8,831 Cash reserved for payment of income tax withholding upon vesting of Antero Midstream Partners LP equity-based compensation awards (1,000) (1,500) Cash distribution to be received from unconsolidated affiliate 2,221 Maintenance capital expenditures (4,638) (10,772) Distributable cash flow $ 103,085 $ 103,787 Distributions Declared to Antero Midstream Holders Limited Partners $ 47,025 $ 63,454 Incentive distribution rights 4,820 19,067 Total Aggregate Distributions $ 51,845 $ 82,521 DCF coverage ratio 2.0x 1.3x 35

37 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 generated estimates for proved, probable and possible reserves in this presentation in accordance with SEC guidelines and definitions, which have been audited by Antero s third-party engineers. Unless otherwise noted, reserve estimates as of December 31, 2016 assume ethane rejection and strip pricing. Actual quantities that may be ultimately recovered from Antero s interests may differ substantially from the estimates in this presentation. Factors affecting ultimate recovery include the scope of Antero s ongoing drilling program, which will be directly affected by commodity prices, the availability of capital, drilling and production costs, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals and other factors, and actual drilling results, including geological and mechanical factors affecting recovery rates. In this presentation: 3P reserves refer to Antero s estimated aggregate proved, probable and possible reserves as of December 31, The SEC prohibits companies from aggregating proved, probable and possible reserves in filings with the SEC due to the different levels of certainty associated with each reserve category. EUR, or Estimated Ultimate Recovery, refers to Antero s internal estimates of per well hydrocarbon quantities that may be potentially recovered from a hypothetical future well completed as a producer in the area. These quantities do not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer s Petroleum Resource Management System or the SEC s oil and natural gas disclosure rules. Condensate refers to gas having a heat content between 1250 BTU and 1300 BTU in the Utica Shale. Highly-rich gas/condensate refers to gas having a heat content between 1275 BTU and 1350 BTU in the Marcellus Shale and 1225 BTU and 1250 BTU in the Utica Shale. Highly-rich gas refers to gas having a heat content between 1200 BTU and 1275 BTU in the Marcellus Shale and 1200 BTU and 1225 BTU in the Utica Shale. Rich gas refers to gas having a heat content of between 1100 BTU and 1200 BTU. Dry gas refers to gas containing insufficient quantities of hydrocarbons heavier than methane to allow their commercial extraction or to require their removal in order to render the gas suitable for fuel use. 36