Baird Investment Banking Pitch Book

EARN-OUT ACCELERATION PRICING RECOMMENDATION 14% ■ Analyzing the earn-out acceleration payment in the context of AM and AR's cost of capital continuum: From AM's perspective, it should be compelled to accelerate the earn-out at or above its overall weighted average cost of capital, and perhaps even lower based on the risk profile of the earn-out From AR's perspective, a discount beyond it's cost of equity is unattractive - AR could raise capital more cost effectively COST OF CAPITAL ANALYSIS (¹) PV OF EARN-OUT PAYMENT (SMM) (2) 12% 10% 8% 6% 4% 2% 0% Cost of Debt 11.0% 9.0% Cost of Equity ▬ ▬ KANE DE A MAI 4.4% Antero Source: Management Base Case projections as March 23, 2017. (1) Based on AR and AM cost of capital analyses. (2) Assumes a present value date of May 1, 2018 9.0% 8.0% 4.0% WACC Antero Midstreamtare un Higher Risk Implied Reasonable Discount Boundaries Lower Risk Implied 2-yr Treasury: 2.3% I L I Discount Rate 11.0% 10.0% Confidential 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% Implied Payment $200 $203 $208 $212 $216 $220 $225 $230 BAIRD Project Bronco Page 6

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