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Understanding Antero Resources’ Organizational Structure

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Antero Midstream Partners’ organizational structure

Antero Resources (AR) announced the initial public offering of Antero Midstream Partners LP (AM) in late 2014. The midstream company owns gathering and compression assets that are primarily used to service Antero Resources. The public owns 39% limited partner interest in Antero Midstream Partners, while Antero owns the remaining 61% interest in the partnership.

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Asset overview: Antero Midstream

Antero Midstream Partner’s assets are primarily divided into two segments: Gathering and Compression and Water Infrastructure.

The Gathering and Compression assets are located in the core Marcellus and Utica Shale plays, with an acreage dedication of ~576,000 gross leasehold acres. According to AR’s November 2016 presentation, AM manages 273 miles of low and high-pressure gathering pipelines in the Marcellus and Utica Shales. AM plans to increase this number to 304 miles by the end of 2016. The combined compression capacity in the Marcellus and Utica Shales is 820 MMcfpd (million cubic feet per day).

Antero Midstream also owns a system of condensate gathering pipelines which primarily collects wellhead condensate in Antero Resources-owned, liquids-rich production regions in the Utica. AM’s fresh water delivery assets deliver fresh water to support Antero Resources’ Marcellus and Utica well completions.

All these assets are under 100% fixed-fee, long-term contracts with Antero Resources. Antero Midstream’s revenues would thus be generated via fixed fees.

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