Baird Investment Banking Pitch Book
ANTERO FAMILY STRUCTURAL ISSUES (CONT.)
FREE CASH FLOW BY ENTITY
(5 in millions)
■ AR's significant drilling capital through 2017 (and consequential cash
flow outspend) ultimately drove substantial IDR cash flow at the GP
IDR cash flow growth led to an $875 MM IPO, at an implied $4 billion
valuation with proceeds exclusively going to the sponsor group
$1,000
$500
$0
($500)
($1,000)
($1,500)
($2,000)
$53
($1,500)
2014
AR □AM DCF
$192
($750)
$1
2015
$353
($350)
$17
2016
Source: AR and AM SEC filings
(1) All offering data excludes underwriters" overallotment option.
AMGP IDRs
$421
($300)
$600
$70 $0
2017
$144
2018E
3-yr IDR
CAGR:
384%
Based on AM's Q2 2017 distribution, annualized, calculated according to midpoint of management's
public guidance as disclosed in AMGP's S-1.
VALUATION CREATION COMPARISON
Equity market value changes since 1/2014
$8.0
$4.0
$0.0
($4.0)
($8.0)
($12.0)
Antero
MESIME
($10.2 billion)
AMGP IPO (1)
($ in millions)
IPO Date
Total Equity Valuation @ IPO
IPO Proceeds
IPO Yield
IDR Cash Flow Multiple
Proceeds to AR
AR Retained Ownership
(2)
+$5.0 billion
Antero
Confidentia!
Midstreamen
BAIRD
+$3.1 billion
S Antero
Midstream GP
05/03/17
$4,375
$875
0.79%
126.5x
$0
0%
Project Bronco | Page 16View entire presentation