Antero Midstream Partners Mergers and Acquisitions Presentation Deck
Heightened Shareholder Activism Across Oil & Gas
Material increase in activist activity over the past 18 months across the oil and gas space with attention focused on upstream
- 10 public campaigns launched, with many more undisclosed situations
Commodity prices largely viewed as range-bound, with more optimism for oil vs. gas
- Commodity price stability gives activists comfort that commodity price declines won't undermine investment/activism thesis
Activist activity (both in oil and gas and across industries) expanding from "traditional activists to investors who have historically
been more passive
* Activist arguments generally center around the following themes, and are coupled with allegations of governance "failures"
- Need for targeted company to engage in M&A to address undervaluation (whether due to lack of scale, insufficient management
expertise or otherwise)
- Need for targeted company to explore structural alternatives to address sum-of-parts discount
Target
Resolute
Bergy C
HESS
SandRidge
OCEAN
UP
JONES
EQT
Announcement date
ENERGEN
BHP
M
01/26/18
12/14/17
11/20/17
10/16/17
09/18/17
09/14/17
07/03/17
05/31/17
Market cap ($bn)¹
04/10/17
$0.7
14.0
2.2
10.2
5.4
Select Campaigns
98.3
Activist
Monarch / Fir Tree
Elliott Management
Icahn Associates / Fir Tree
Corvex Management
Elliott Management
11/21/16
22.9
Elliott Management
Source: SharkRepellent, Wall Street Journal / Reuters, FactSet, Note: Most recent campaigns listed first; At start of agitation
Elliot / Blue Mountain/
Avenue
Fir Tree
Q Investments / Fir Tree
JANA Partners / D.E. Shaw
Stake¹
9.2%/9.0%
6.7
13.5/8.3
39.0
18.5
7.9/7.2
5.9/4.0
5.5
4.1
Strategic
3
w
W
Activist Demands
Structural
X
30
y
x
Bavim
Ba
X
M
Governance
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