Baird Investment Banking Pitch Book slide image

Baird Investment Banking Pitch Book

REVIEW OF KEY FOCUS AREAS & OBJECTIVES As the Special Committee begins its assessment of the AMGP-AM acquisition proposal, it is essential to keep in context how AM / AMGP impact AR HOW DO AM / AMGP IMPACT AR? - KEY FOCUS AREAS WHEN ASSESSING THE PROPOSAL Focus Area: 1 Cash Flow from Distributions conftantin Freliminar Draft 2 Value of AM Units Held 3 Alignment of Interests Distributions from AM are an important component of AR's free cash flow The market value of AR's midstream holdings are imbedded into the overall value of AR's stock ■ AR owns 53% of AM, but 0% of AMGP currently, creating a perceived mis-alignment of interests Proposal Impact BAIRD Minimally dilutive to AR cash flow in 2019 - 2020 Minimally accretive to AR cash flow over 2021 - 2022 New AMGP will have improved characteristics vs. AM stand- alone, which could improve valuation & trading levels Reduces conflict of interest within the Antero family, a core objective Project Bronco Page 2
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