Antero Midstream Partners Mergers and Acquisitions Presentation Deck
Executive Summary
Executive Summary
1
Shareholders of Antero have made requests for management and the Board to consider and evaluate
potential measures to remedy two perceived issues:
-Perceived valuation discount and relative underperformance of AR versus its Appalachian peers
-Shareholder "mis-alignment", primarily referring to the IDR value stream being held outside of the AR
family
JPM and MS have been working with management to analyze potential actions through the lenses of:
-Potential benefits to shareholders of AR, AMGP and AM
-Potential to address shareholder concerns
• Though our analysis is ongoing, we want to highlight two potential actions which, in combination, appear
to meet these criteria
-Consolidation of midstream entities via AMGP buying AM
-Appears financially attractive to AMGP and AM shareholders and solves a key mis-alignment issue
for AR shareholders
-AR share buyback of $500MM+, effected over two years
-Sizable enough to be meaningful while preserving leverage at 2.0x for 2019 and beyond
-Potential use of proceeds to fund buyback from early monetization of water earn-out payments
Antero
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