Baird Investment Banking Pitch Book slide image

Baird Investment Banking Pitch Book

REVISED DISTRIBUTION POLICY: PRO FORMA IMPACT ($ in millions, unless otherwise noted) "Keep Whole" Case (2) Dividend and Dividend Coverage per AR-Owned AM Unit Status Quo AM 2019 Distr. + All-in ER to AR (¹) PF AMC 2019 Disr. x Equity XR to AR $2.21 $2.21 Status Quo (1) $1.96 $2.00 2019 $2.210 1.775x $1.245 1.6023x $2.00 1.31x 1.19x 1.34x 1.32x AM Status Quo (2) (3) "Keep Whole" Case Management Distr. Case (4) Potential AR/AM Counter $2.85 $2.74 (5) 1.16x 1.16x 1.26x 1.24x Cash Dividends to AR Analysis (excluding $3.00/unit at closing) Total Cash Dividends to AR $2.53 $2.57 2019 2020 $219 $219 $194 $197 Management Distr. Case (3) 2020 $282 $270 $250 $254 $3.42 $3.39 2021 1.11x 1.11x 1.25x 1.23x 2022 $338 $405 $335 $411 $300 $360 $305 $366 $3.03 $3.09 2021 Total Cash '19-'22 $1,244 $1,236 $1,103 $1,124 Potential AR/AM Counter (4) Source: Antero management projections. (1) Based on 10-day VWAP ended October 5, 2018. (2) As set forth in the AM stand-alone projections. (3) Equivalent initial AM distribution ($1.38) based on 1.6023x exchange ratio; then AM stand-alone projection coverage. (4) Equivalent initial AM distribution ($1.22) based on 1.807x all-in exchange ratio; then 29% growth in 2020 and 20% annual growth thereafter. (5) Equivalent initial AM distribution ($1.25) based on 1.775x all-in exchange ratio; then 29% growth in 2020 and 20% annual growth thereafter. Preliminar Praft PV-10 $1,009 $1,002 $895 $912 $4.10 $4.16 PV-10 vs. AM Status Quo 1.05x 1.05x 1.21x 1.19x ($8) (114) (98) BAIRD $3.64 $3.71 2022 + $16 Project Bronco | Page 1
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