Antero Midstream Partners Investor Presentation Deck
Antero Resources Definitions
Stand-alone Adjusted Operating Cash Flow and Free Cash Flow
Free Cash Flow as presented in this release and defined by the Company represents Stand-alone Adjusted Operating Cash Flow, less
Stand-alone Drilling and Completion capital, less Land Maintenance Capital. Stand-alone Adjusted Operating Cash Flow represents net
cash provided by operating activities that will be reported in the Parent column of Antero's guarantor footnote to its financial statements
before changes in working capital items. Stand-alone Adjusted Operating Cash Flow is widely accepted by the investment community
as a financial indicator of an oil and gas company's ability to generate cash to internally fund exploration and development activities and
to service debt. Stand-alone Adjusted Operating Cash Flow is also useful because it is widely used by professional research analysts in
valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production
industry. In turn, many investors use this published research in making investment decisions.
Management believes that Stand-alone Adjusted Operating Cash Flow and Free Cash Flow are useful indicators of the company's
ability to internally fund its activities and to service or incur additional debt on a Stand-alone basis. Management believes that changes
in current assets and liabilities, which are excluded from the calculation of these measures, relate to the timing of cash receipts and
disbursements and therefore may not relate to the period in which the operating activities occurred and generally do not have a material
impact on the ability of the company to fund its operations.
There are significant limitations to using Stand-alone Adjusted Operating Cash Flow and Free Cash Flow as measures of performance,
including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the company's net income
on a Stand-alone basis, the lack of comparability of results of operations of different companies and the different methods of calculating
Stand-alone Adjusted Operating Cash Flow and Free Cash Flow reported by different companies. Stand-alone Adjusted Operating
Cash Flow and Free Cash Flow do not represent funds available for discretionary use because those funds may be required for debt
service, land acquisitions and lease renewals, other capital expenditures, working capital, income taxes, exploration expenses, and
other commitments and obligations.
Stand-alone Adjusted Operating Cash Flow and Free Cash Flow are not measures of financial performance under GAAP and should not
be considered in isolation or as a substitute for cash flows from operating, investing, or financing activities, as an indicator of cash flows,
or as a measure of liquidity.
Antero has not included reconciliations of Stand-alone Adjusted Operating Cash Flow and Free Cash Flow to their nearest GAAP
financial measures because it cannot do so without unreasonable effort and any attempt to do so would be inherently imprecise.
Total Debt, Net Debt and Stand-alone Net Debt
Net Debt is calculated as total debt less cash and cash equivalents. Management uses Consolidated Net Debt and Stand-alone Net
Debt to evaluate its financial position, including its ability to service its debt obligations.
51View entire presentation