Antero Midstream Management LLC, a wholly owned subsidiary of Antero Resources (AR), serves as the general partner of Antero Midstream Partners LP (AM) and owns the partnership’s incentive distribution rights. The image below explains the structure of the company’s ownership.
As the image above notes, the public owns 30.3% limited partner interest, while Antero and its affiliates own the remaining 69.7% interest in the partnership.
Antero’s future plans
Net proceeds of the IPO after the sale of 46,000,000 common units was approximately $1.15 billion. The company noted in a press release that it used $843 million to repay assumed indebtedness from Antero and also to reimburse Antero for certain capital expenditures it incurred.
The company will retain the remaining $250 million of the net proceeds for general partnership purposes. Barclays PLC, Citigroup Inc., Wells Fargo Securities, Credit Suisse Group, J.P. Morgan Chase & Co., and Morgan Stanley led the deal.
What Antero is offering
Antero said that it would pay a dividend of $0.68 to its shareholders, including Antero Resources. The distribution yield will be 2.72%
Antero Midstream is a subsidiary of Antero Resources, which is a component of several energy ETFs, including the SPDR S&P Oil & Gas Exploration & Production ETF (XOP), the iShares US Energy ETF (IYE), and the Vanguard Energy ETF (VDE).
The following part of the series will talk about the assets from Antero Resources that will go to Antero Midstream.