Antero Midstream Partners Investor Presentation Deck
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Antero Midstream Non-GAAP Measures
Non-GAAP Financial Measures and Definitions
Antero Midstream views Adjusted EBITDA as an important indicator of the Partnership's performance. Antero Midstream defines Adjusted
EBITDA as Net Income before interest expense, depreciation expense, impairment expense, accretion of contingent acquisition consideration,
equity-based compensation expense, excluding equity in earnings of unconsolidated affiliates and including cash distributions from
unconsolidated affiliates.
Antero Midstream uses Adjusted EBITDA to assess:
the financial performance of the Partnership's assets, without regard to financing methods in the case of Adjusted EBITDA, capital structure
or historical cost basis;
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its operating performance and return on capital as compared to other publicly traded partnerships in the midstream energy sector, without
regard to financing or capital structure; and
the viability of acquisitions and other capital expenditure projects.
The Partnership defines Distributable Cash Flow as Adjusted EBITDA less interest paid, income tax withholding payments and cash reserved
for payments of income tax withholding upon vesting of equity-based compensation awards, cash reserved for bond interest and ongoing
maintenance capital expenditures paid. Antero Midstream uses Distributable Cash Flow as a performance metric to compare the cash
generating performance of the Partnership from period to period and to compare the cash generating performance for specific periods to the
cash distributions (if any) that are expected to be paid to unitholders. Distributable Cash Flow does not reflect changes in working capital
balances.
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The Partnership defines Free Cash Flow as cash flow from operating activities before changes in working capital less capital expenditures.
Management believes that Free Cash Flow is a useful indicator of the Partnership's ability to internally fund infrastructure investments, service
or incur additional debt, and assess the company's financial performance and its ability to generate excess cash from its operations.
Management believes that changes in operating assets and liabilities relate to the timing of cash receipts and disbursements and therefore
may not relate to the period in which the operating activities occurred.
The Partnership defines Return on Invested Capital as net income plus interest expense divided by average total liabilities and partners'
capital, excluding current liabilities. Management believes that Return on Invested Capital is a useful indicator of the Partnership's return on
its infrastructure investments.
The Partnership defines Net Debt as total debt minus cash.
Antero Resources non-GAAP measures and definitions are included in the Antero Resources analyst day presentation, which can be found on
www.anteroresources.com.
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