Antero Midstream Partners Mergers and Acquisitions Presentation Deck
Wall Street Perspectives
Wall Street Believes In Less Upside At AR Relative To Peers
Broker Commentary
"Antero set the stage for strong
growth for the next five years,
while simultaneously
transitioning to a FCF positive
company with <2.0x leverage
levels. We remain at Hold on
the name as we take a wait-
and see approach to the
company's ability to reach its
targets.... We think interest
from investors could potentially
pick up as the company
positions itself for fiscally
responsible
growth."
Broker Price Targets (1)(2)
* $24.86 Street consensus
price target
-31% premium to current
50% "Buy" vs. 50% "Hold"
street recommendations
-67% "Buy"
recommendations for
peers on average
-33% "Hold"
recommendations for
peers on average
Notes
1. Market Data as of February 16, 2018
2 AR peers include COG, EOT and RRC
"We view [Antero's] valuation
multiple as cheap given that
we forecast AR E&P can grow
production at a mid-teens rate
in 2020+ within cash flow with
>10 years of inventory
remaining post 2022."
% of Ratings
40%
0%
Buy Recommendations Have Declined Over the Last Year as the
Street Shifted To More Hold Recommendations
NJIH
02 14
03 14
Buy
Q1 15
Q2 15
Hold
Q3 15
Sell
04 15
Q116
Q3 16
Average Price Target
"While we believe management
remains one of the best in the
business, and the strategy of
transitioning to free cash
generation should be well
received, we remain on the
sidelines awaiting a better
entry point given complexity
of integrated corporate
structure, momentum from 5
year plan that doesn't build until
2019, and the 6%
outperformance of shares vs.
gassy peers over
the last 12 months"
Share Price
Q3 17
$/Share
Today
60.00
45.00
30.00
Antero
15.00
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