Antero Midstream Partners Investor Presentation Deck
Antero Midstream Fee Structure
·
i
#
i
Gathering & Compression Agreement
Fixed-fee agreement to provide gathering and
compression services to AR with 20-year term beginning
in November 2014
Low-pressure gathering fee of $0.30/Mcf(1)
- High-pressure gathering fee of $0.18/Mcf(1)
- Compression fee of $0.18/Mcf(1)
Condensate gathering fee of $4.00/Bbl(¹)
Dedication of all current and future AR acreage in West
Virginia, Ohio and Pennsylvania, outside of current third-
party commitments in place prior to IPO or acquired
acreage subject to pre-existing dedications
- Option to gather and compress natural gas produced
by AR on any acreage it acquires in the future outside
of the aforementioned areas on the same terms and
conditions
10-year minimum volume commitments on newly
constructed high-pressure lines and compressor stations
- High-pressure gathering minimum volume
commitments of 75% of design capacity
Compression minimum volume commitments of 70%
of design capacity
Separate right of first offer agreement with AR
AR has agreed not to procure any gas processing or
NGL fractionation, transportation or marketing
services (outside of current third-party dedications)
without first offering AM the right to provide such
services
1. All subject to CPI-adjustments
·
·
Fixed-fee agreement to provide water services to AR
with 20-year term beginning in September 2015
Water Services Agreement
$3.69/Bbl(¹) in West Virginia and $3.64/Bb|(¹) in Ohio
for freshwater deliveries by pipeline directly to the well
site
- $4.00(¹) per barrel for wastewater treatment at the
advanced wastewater treatment complex
Exclusive right to provide freshwater delivery, fluid
handling and disposal services to AR in dedicated area
in West Virginia and Ohio
- Right of first offer on all future areas of operation
4-year minimum volume commitment for fresh water
deliveries in calendar years 2016 through 2019
- 90,000 barrels per day in 2016
- 100,000 barrels per day in 2017
- 120,000 barrels per day in 2018 and 2019
Sponsor incentivized for future growth, which protects
AM future cash flows
#
.
$125MM earn-out payment in 2019 if fresh water
delivery volumes exceed 161,000 barrels per day
from 2017-2019
$125MM earn-out payment in 2020 if fresh water
delivery volumes exceed 200,000 barrels per day
from 2018-2020
s
45View entire presentation