Antero Midstream Annual Report 2018

FY2018 Annual Report · Antero Midstream
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KEY DRIVERS 
BEHIND LONG-TERM  
OUTLOOK 

PREMIER E&P SPONSOR  
With Deep Drilling Inventory  
And Diversified Commodity Exposure

Highly Visible  
ORGANIC GROWTH

INTEGRATED ASSETS  
With A Fixed-Fee Model

High  
RETURN ON INVESTED CAPITAL 

Peer-Leading  
CASH FLOW PER SHARE GROWTH

STRONG BALANCE SHEET  
With Ample Liquidity 

DEAR FELLOW 
SHAREHOLDERS,

Antero Midstream executed another remarkable 
year in 2018, further positioning the Company as 
a leading infrastructure platform in Appalachia. 
Antero Midstream’s primary customer, Antero 
Resources, exited 2018 as the largest NGL 
producer and the fourth largest natural 
gas producer in the United States. Antero 
Midstream’s Sherwood Processing Facility is 
now the largest processing facility in North 
America and the recently completed Antero 
Clearwater Facility is the largest advanced 
wastewater treatment facility ever built for  
shale oil and gas water production. In short,  
we are achieving scale.

During 2018, we announced the acquisition 
of Antero Midstream Partners by Antero 
Midstream GP LP (NYSE: AMGP). The tax-
efficient transaction was undertaken to simplify 
the Antero family structure and eliminate the 
incentive distribution rights at Antero Midstream. 
The transaction closed in March 2019, resulting 
in a top 20 C-Corp midstream entity renamed 
Antero Midstream Corporation. We are excited 
about these important steps in simplifying 
our story and believe they offer signiﬁcant 
strengthening in corporate governance and 
shareholder rights. Importantly, the new 
midstream structure lowers our cost of capital to 
pursue future growth opportunities. We remain 
committed to our long-term strategy, which is 
to organically invest in midstream infrastructure 
built primarily to service the development 
program of our sponsor and 31% shareholder, 
Antero Resources (NYSE: AR). 

This consistent and focused organic approach 
continues to generate attractive operating 
margins and cash ﬂow, allowing us to achieve 
more attractive risk-adjusted project rates of 
return. By investing organically to support our 
sponsor, we avoid speculative investments and 
the competitive acquisition markets. In 2018, 
we continued to build out our core gathering, 
compression, and fresh water delivery 
infrastructure in support of the 20% production 
growth achieved by Antero Resources.  
By focusing on providing the full suite of 
midstream services required by Antero 
Resources in developing its liquids-rich acreage 
position in Appalachia, Antero Midstream once 
again generated peer-leading volumetric, 
revenue, and cash ﬂow per share growth in 
2018. Our low-pressure gathering volumes grew 
by 29% year-over-year. Compression volumes 
grew by 45% and high-pressure gathering 

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ANTERO MIDSTREAM

11
1

 
 
 
 
 
“““

Antero Midstream’s Sherwood Processing Facility 

is now the largest processing facility in North 

America and the recently completed Antero  

Clearwater Facility is the largest advanced 

wastewater treatment facility ever built for  

shale oil and gas water production.

”””

31% 

AR Ownership*

42% 

DCF Per  
Share Growth

3.1x 

Net Debt/EBITDA*

1.3x 

DCF 
Coverage

2.5 

Bcf/d 

Compression  
Capacity

*As of March 2019 simpliﬁcation closing

535,000 

Gross Dedicated Acres

170 

High Pressure  
Pipeline MIles

227 

Low Pressure  
Pipeline MIles

 
 
 
 
 
 
 
volumes by 39%. Our fresh water delivery 
business continues to increase in scale, driven 
by Antero’s enhanced completion program. Our 
fresh water delivery volumes servicing Antero’s 
completion program increased by 28% over 
the 2017 volumes. The organic growth from our 
gathering and processing, and water handling 
and treatment segments resulted in a 36% 
growth in EBITDA in 2018, to $717 million.  
This ﬁgure supported a peer-leading year-over-
year distributable cash ﬂow per share growth 
of 42%. Looking ahead, we have approximately 
$2.0 billion of “in-hand” projects associated  
with our organic investment backlog through 
2022, allowing us to continue to drive visible 
growth for Antero Midstream. We expect 
this visible growth, in combination with our 
exceptional operational and ﬁnancial strength, 
to deliver growth and value to our shareholders 
in the coming years. 

WORLD-CLASS SPONSOR

Antero Resources was once again one of the 
most active operators in Appalachia in 2018. The 
company focused its development on Antero’s 
peer-leading, liquids-rich acreage position in the 
Marcellus shale dedicated to Antero Midstream. 
Antero Resources positions itself as the high-
margin producer in the lowest cost shale gas 
plays in the United States. Antero’s integrated 
strategy allows it to maintain sustainable, long-
term growth through all commodity price cycles. 
Antero Resources realized net production 
growth of 20% to average 2.7 Bcfe/d in 2018, 
including 162 MBbl/d of NGLs and oil. The 
Company initiated a long lateral development 
program in late 2017, which will continue to 
expand in 2019 with drilled horizontal laterals 
averaging almost 12,000 feet. The purpose of 
the program is to take full advantage of the 

ANTERO MIDSTREAM

3

““““

The signiﬁcant visibility provided AR’s 3,000 core 

undeveloped drilling locations, in combination 

with an industry-leading hedge position and 

access to premium markets for natural gas and 

liquids, will provide growth opportunities for 

Antero Midstream for many years to come. 

”””

Company’s 612,000 net-acre position, with 
a focus on capital efficient and high-return 
drilling opportunities. As a result, the Company 
projects production growth of over 15% in 2019, 
to approximately 3.2 Bcfe/d. This development 
plan will beneﬁt Antero Midstream by increasing 
our gathering and compression volumes. The 
signiﬁcant visibility provided AR’s 3,000 core 
undeveloped drilling locations, in combination 
with an industry-leading hedge position and 
access to premium markets for natural gas and 
liquids, will provide growth opportunities for 
Antero Midstream for many years to come. 

GATHERING AND COMPRESSION SERVICES 

In keeping with the level of activity generated by 
Antero Resources, Antero Midstream invested 
$444 million in gathering and compression 
infrastructure in 2018. We focused our 
investment primarily in the Marcellus Shale, 
adding 52 miles of natural gas gathering 
pipelines and 760 MMcf/d of incremental 

compression capacity. As of year-end 2018, 
we have invested more than $2.5 billion in 
gathering and compression infrastructure in the 
Appalachian Basin. This investment resulted in 
397 miles of natural gas gathering pipelines and 
2.5 Bcf/d of compression capacity. The strength 
of our primary customer and sponsor, Antero 
Resources, drives our long-term project visibility 
and high utilization rates on our gathering and 
compression systems. Because we own and 
operate those systems, the need to invest 
speculative capital is eliminated in favor of 
pursuing the more strategic investment of  
“just-in-time” capital. 

WATER HANDLING AND TREATMENT SERVICES

In 2018, we continued to build out our water 
handling and treatment infrastructure footprint. 
Similar to our gathering and compression 
investment philosophy, we continue to 
organically develop the water handling and 
treatment assets that support the completion 

ANTERO MIDSTREAM

5

operations of Antero Resources. In 2018, Antero 
Midstream added a combined 12 miles of fresh 
water delivery pipelines in the Marcellus and 
Utica Shale plays. Our fresh water delivery 
system, the largest in Appalachia, serviced 162 
well completions in 2018, up 14% from 2017. 
In addition, the Antero Clearwater Facility, a 
60,000 Bbl/d advanced wastewater treatment 
facility for produced and ﬂowback water, 
continued its commissioning progress in 2018. 
The Antero Clearwater Facility places the Antero 
family at the forefront of water management 
and conservation among American shale 
producers. The facility eliminates more than 
620,000 truck trips and 42,000 tons of carbon 
dioxide emissions per year, reducing Antero’s 
environmental footprint in Appalachia. 

PROCESSING AND FRACTIONATION  
JOINT VENTURE

In 2018, Antero Midstream continued to develop 
processing and fractionation infrastructure 
through our 50/50 joint venture with MPLX 
(NYSE: MPLX) in the core of the liquids-rich 
Marcellus and Utica Shale plays. The joint 
venture strengthens Antero Midstream’s full-
value-chain organic growth strategy while 
aligning the largest core liquids-rich resource 
base in Appalachia with the largest processing 
and fractionation footprint in the region. During 
2018, the processing and fractionation joint 
venture added 600 MMcf/d of processing 
capacity at the Sherwood Processing Complex 
in West Virginia, bringing the total joint venture 
capacity to 1.0 Bcf/d. As mentioned earlier, 
the Sherwood Processing Complex is now 
the largest natural gas processing facility in 
North America. Looking ahead to 2019, the 
joint venture expects to place two additional 
processing plants at the Sherwood Processing 
Complex into service, adding another 400 
MMcf/d of capacity. In addition, the joint venture 
began construction on the new Smithburg 
Processing Complex located in the core of the 
Marcellus Shale near the Sherwood Processing 
Complex. Construction will continue at the 
Smithburg complex in 2019, with operations 
commencing in 2020. In early 2020, the joint 
venture also elected to acquire an additional 
20,000 Bbl/d of capacity at the Hopedale 
Fractionation Complex, bringing the total joint 
venture’s fractionation capacity to 40,000 Bbl/d. 

THE POTENTIAL FOR 2019

The year ahead represents an exciting 
transformation for Antero Midstream as we 
broaden our investor base. Antero Midstream 
Corporation continues as a best-in-class 
midstream company with peer-leading 
distributable cash ﬂow growth, low leverage, a 
simpliﬁed structure with no incentive distribution 
rights, and strengthened corporate governance. 
Our operational focus will remain unchanged 
with the goals of improving our capital efficiency 
and delivering on our full-value-chain organic 
growth strategy. We remain well capitalized as 
evidenced by our more than $1.0 billion in credit 
facility liquidity that will fund our 2019 capital 
program. We expect to invest $775 million in 
gathering, processing, fractionation, and water 
handling and treatment infrastructure in 2019. 
Our commitment to support the growth proﬁle of 
our industry-leading sponsor, Antero Resources, 
enables us to continue to achieve peer-leading 
cash ﬂow growth in 2019, and beyond.

THE PEOPLE OF ANTERO MIDSTREAM

We want to express our appreciation for the 
dedication and hard work of our talented 
employees. They continue to generate the 
momentum and value creation that form the 
core of our business model, ultimately to the 
beneﬁt of our shareholders. The skills and 
expertise of our employees in assembling 
and executing world-class midstream projects 
represent Antero Midstream’s true strength and 
competitive advantage. We also appreciate the 
guidance and support of our Board of Directors. 
We thank you, our shareholders, for investing in 
our Company and look forward to further value 
creation in 2019, and in the years to come.

PAUL M. RADY

Chairman and CEO

GLEN C. WARREN, JR.

President

FORM 10K

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 

FORM 10-K 

(cid:95) 

(cid:134) 

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 
OF 1934 

For the fiscal year ended December 31, 2018 
or 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 
ACT OF 1934 

Commission File No. 001-36719 

ANTERO MIDSTREAM PARTNERS LP 
(Exact name of registrant as specified in its charter) 

Delaware 

(State or other jurisdiction of 
incorporation or organization) 

1615 Wynkoop Street 
Denver Colorado 
(Address of principal executive offices) 

46-4109058 
(IRS Employer 
Identification No.) 

80202 
(Zip Code) 

(303) 357-7310 
(cid:11)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:87)(cid:72)(cid:79)(cid:72)(cid:83)(cid:75)(cid:82)(cid:81)(cid:72)(cid:3)number, including area code) 

Securities Registered Pursuant to Section 12(b) of the Act: 

Title of Each Class 
Common Units Representing Limited Partner Interests 

Securities Registered Pursuant to Section 12(g) of the Act: None. 

Name of Each Exchange on which Registered 
New York Stock Exchange 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  (cid:95) Yes  (cid:134) No 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  (cid:134) Yes  (cid:95) No 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject 
to such filing requirements for the past 90 days.  (cid:95) Yes  (cid:134) No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to 
Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to 
submit such files).  (cid:95) Yes  (cid:134) No 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained 

(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:79)(cid:72)(cid:71)(cid:74)(cid:72)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:91)(cid:92)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) statements incorporated by reference in 
Part III of this Form 10-K or any amendment to this Form 10-K. (cid:95) 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting 
company(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:72)(cid:85)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:179)(cid:79)(cid:68)(cid:85)(cid:74)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:72)(cid:79)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:68)(cid:70)(cid:70)(cid:72)(cid:79)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:85)(cid:15)(cid:180)(cid:3)(cid:3)(cid:179)(cid:86)(cid:80)(cid:68)(cid:79)(cid:79)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
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Accelerated filer (cid:134) 
Large accelerated filer (cid:95) 

Non-accelerated filer (cid:134) 

Smaller reporting company (cid:134) 

Emerging growth company (cid:134) 

If an emerging growth company, indicate by checkmark if the registrant has elected to use the extended transition period for complying 

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  (cid:134) 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  (cid:134) Yes  (cid:95) No 
(cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:81)(cid:82)(cid:81)-affiliates of the registrant as 

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of $29.52. 

As of February 8, 2019, there were 187,330,147 common units representing limited partner interests outstanding. 
Documents incorporated by reference: None. 

 
 
 
 
 
 
 
 
 
 
 
 
TABLE OF CONTENTS  

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS  
PART I  

Items 1 and 2.  
Item 1A.  
Item 1B. 
Item 3. 
Item 4. 
PART II 
Item 5. 

Item 6. 
Item 7. 
Item 7A.  
Item 8. 
Item 9. 
Item 9A.  
Item 9B. 

PART III 
Item 10. 
Item 11. 
Item 12. 
Item 13. 
Item 14. 
PART IV  
Item 15. 

Business and Properties 
Risk Factors  
Unresolved Staff Comments  
Legal Proceedings  
Mine Safety Disclosures  

(cid:48)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:44)(cid:86)(cid:86)(cid:88)(cid:72)(cid:85)(cid:3)(cid:51)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)
Securities  
Selected Financial Data  
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)  
Quantitative and Qualitative Disclosures About Market Risk  
Financial Statements and Supplementary Data  
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure  
Controls and Procedures  
Other Information  

Directors, Executive Officers, and Corporate Governance  
Executive Compensation  
Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters 
Certain Relationships and Related Transactions and Director Independence 
Principal Accountant Fees and Services  

Exhibits and Financial Statement Schedules  

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2 

 
 
 
 
 
 
 
 
 
 
 
 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS  

Some of the information in this Annual Report on Form 10-K may contain forward-looking statements.  Forward-looking 
statements give our current expectations, contain projections of results of operations or of financial condition, or forecasts of future 
events.  Wo(cid:85)(cid:71)(cid:86)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:80)(cid:68)(cid:92)(cid:15)(cid:180)(cid:3)(cid:179)(cid:68)(cid:86)(cid:86)(cid:88)(cid:80)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:73)(cid:82)(cid:85)(cid:72)(cid:70)(cid:68)(cid:86)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:85)(cid:72)(cid:71)(cid:76)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:72)(cid:74)(cid:92)(cid:15)(cid:180)(cid:3)(cid:179)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:79)(cid:68)(cid:81)(cid:15)(cid:180)(cid:3)(cid:179)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:15)(cid:180)(cid:3)
(cid:179)(cid:68)(cid:81)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:85)(cid:82)(cid:77)(cid:72)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:69)(cid:88)(cid:71)(cid:74)(cid:72)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:15)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:73)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)d-looking 
statements.  They can be affected by assumptions used or by known or unknown risks or uncertainties.  Consequently, no forward-
looking statements can be guaranteed.  When considering these forward-looking statements, you should keep in mind the risk factors 
and other cautionary statements in this Annual Report on Form 10-K. Actual results may vary materially.  You are cautioned not to 
place undue reliance on any forward-looking statements.  You should also understand that it is not possible to predict or identify all 
such factors and should not consider the following list to be a complete statement of all potential risks and uncertainties.  Factors that 
could cause our actual results to differ materially from the results contemplated by such forward-looking statements include: 

(cid:120)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:30) 

(cid:120)(cid:3)

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120)(cid:3)

(cid:120) 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

our ability to execute our business strategy; 

the possibility that the proposed simplification and related transactions described elsewhere in this Annual Report on 
Form 10-(cid:46)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:88)(cid:80)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:79)(cid:92)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:87)(cid:3)(cid:68)(cid:79)(cid:79)(cid:30) 

the diversion of management in connection with the Transactions and the ability of the resulting entity of the 
Transactions to realize the anticipated benefits of the Transactions; 

the impact of increased levels and costs of indebtedness used to fund the Transactions or the cash portion of the 
consideration being paid in connection therewith, and increased cost of existing indebtedness due to the actions taken to 
consummate the Transactions; 

our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, 
working capital requirements and the repayment or refinancing of indebtedness; 

our ability to realize the anticipated benefits of our investments in unconsolidated affiliates; 

(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:49)(cid:42)(cid:47)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:30) 

our ability to complete the construction or purchase new gathering and compression, processing, water handling and 
treatment or other assets on schedule, at the budgeted cost or at all, and the ability of such assets to operate as designed 
or at expected levels; 

competition and government regulations; 

actions taken by third-party producers, operators, processors and transporters; 

legal or environmental matters; 

costs of conducting our operations; 

general economic conditions; 

credit markets; 

operating hazards, natural disasters, weather-related delays, casualty losses and other matters beyond our control; 

uncertainty regarding our future operating results; and 

plans, objectives, expectations and intentions contained in this report that are not historical. 

3 

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are 

difficult to predict and many of which are beyond our control, incident to our business.  These risks include, but are not limited to, 
commodity price volatility, inflation, environmental risks, drilling and completion and other operating risks, regulatory changes, the 
uncertainty inherent in projecting future rates of production, cash flows and access to capital, the timing of development expenditures, 
conflicts of interest among holders of our common units and the other ri(cid:86)(cid:78)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)
Form 10-K. 

Should one or more of the risks or uncertainties described in this report occur, or should underlying assumptions prove 

incorrect, our actual results and plans could differ materially from those expressed in any forward-looking statements.  

All forward-looking statements, expressed or implied, included in this report are expressly qualified in their entirety by this 

cautionary statement.  This cautionary statement should also be considered in connection with any subsequent written or oral forward-
looking statements that we or persons acting on our behalf may issue.  

Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which 

are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Annual Report on 
Form 10-K. 

GLOSSARY OF COMMONLY USED TERMS   

The following are abbreviations and definitions of certain terms used in this document, which are commonly used in our 

industry: 

(cid:179)(cid:37)(cid:69)(cid:79)(cid:17)(cid:180)(cid:3)(cid:3)One stock tank barrel, of 42 U.S. gallons liquid volume, used herein in reference to crude oil, condensate, NGLs, or 

water. 

(cid:179)(cid:37)(cid:69)(cid:79)(cid:18)(cid:71)(cid:17)(cid:180)  Bbl per day. 

(cid:179)(cid:37)(cid:70)(cid:73)(cid:17)(cid:180)  One billion cubic feet of natural gas. 

(cid:179)(cid:37)(cid:70)(cid:73)(cid:72)(cid:17)(cid:180)  One billion cubic feet of natural gas equivalent with one barrel of oil, condensate, or NGLs converted to six 

thousand cubic feet of natural gas. 

(cid:179)(cid:37)(cid:70)(cid:73)(cid:72)(cid:18)(cid:71)(cid:17)(cid:180)  Bcfe per day. 

(cid:179)(cid:39)(cid:50)(cid:55)(cid:17)(cid:180)  Department of Transportation. 

(cid:179)(cid:39)(cid:85)(cid:92)(cid:3)(cid:74)(cid:68)(cid:86)(cid:17)(cid:180)  A natural gas containing insufficient quantities of hydrocarbons heavier than methane to allow their commercial 

extraction or to require their removal in order to render the gas suitable for fuel use. 

(cid:179)(cid:40)(cid:51)(cid:36)(cid:17)(cid:180)  Environmental Protection Agency. 

(cid:179)(cid:40)(cid:91)(cid:83)(cid:68)(cid:81)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17)(cid:180)  Cash expenditures to construct new midstream infrastructure and those expenditures 
incurred in order to extend the useful lives of our assets, reduce costs, increase revenues or increase system throughput or capacity 
from current levels, including well connections that increase existing system throughput. 

(cid:179)(cid:41)(cid:40)(cid:53)(cid:38)(cid:17)(cid:180)  Federal Energy Regulatory Commission. 

(cid:179)Field(cid:17)(cid:180)(cid:3)(cid:3)(cid:36)(cid:81)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:81)(cid:74)(cid:79)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:82)(cid:76)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:80)(cid:88)(cid:79)(cid:87)(cid:76)(cid:83)(cid:79)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:82)(cid:76)(cid:85)(cid:86)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:3)
geological structural feature or stratigraphic condition. The field name refers to the surface area, although it may refer to both the 
surface and the underground productive formations. 

(cid:179)(cid:43)(cid:76)(cid:74)(cid:75)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:17)(cid:180)  Pipelines gathering or transporting natural gas that has been dehydrated and compressed to the 

pressure of the downstream pipelines or processing plants. 

(cid:179)(cid:43)(cid:92)(cid:71)(cid:85)(cid:82)(cid:70)(cid:68)(cid:85)(cid:69)(cid:82)(cid:81)(cid:17)(cid:180)  An organic compound containing only carbon and hydrogen. 

4 

 
(cid:179)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17)(cid:180)  The joint venture entered into on February 6, 2017 between Antero Midstream Partners L.P. and MarkWest 

(cid:40)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:3)(cid:11)(cid:179)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:51)(cid:47)(cid:59)(cid:15)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:48)(cid:51)(cid:47)(cid:59)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
assets in Appalachia. 

(cid:179)(cid:47)(cid:82)(cid:90)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:17)(cid:180)  Pipelines gathering natural gas at or near wellhead pressure that has yet to be compressed (other 

than by well pad gas lift compression or dedicated well pad compressors) and dehydrated. 

(cid:179)(cid:48)(cid:68)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17)(cid:180)  Cash expenditures (including expenditures for the construction or development of new 

capital assets or the replacement, improvement or expansion of existing capital assets) made to maintain, over the long term, our 
operating capacity or revenue. 

(cid:179)(cid:48)(cid:37)(cid:69)(cid:79)(cid:17)(cid:180)  One thousand Bbls. 

(cid:179)(cid:48)(cid:37)(cid:69)(cid:79)(cid:18)(cid:71)(cid:17)(cid:180)  One thousand Bbls per day. 

(cid:179)(cid:48)(cid:70)(cid:73)(cid:17)(cid:180)  One thousand cubic feet of natural gas. 

(cid:179)(cid:48)(cid:48)(cid:70)(cid:73)(cid:17)(cid:180)  One million cubic feet of natural gas. 

(cid:179)(cid:48)(cid:48)(cid:70)(cid:73)(cid:72)(cid:17)(cid:180)(cid:3)(cid:50)(cid:81)(cid:72)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:88)(cid:69)(cid:76)(cid:70)(cid:3)(cid:73)(cid:72)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:89)(cid:68)(cid:79)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:69)(cid:68)(cid:85)(cid:85)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:76)(cid:79)(cid:15)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)converted to six 

thousand cubic feet of natural gas. 

(cid:179)(cid:48)(cid:48)(cid:70)(cid:73)(cid:18)(cid:71)(cid:17)(cid:180)  One million cubic feet per day. 

(cid:179)(cid:48)(cid:48)(cid:70)(cid:73)(cid:72)(cid:18)(cid:71)(cid:17)(cid:180)  One million cubic feet equivalent per day. 

(cid:179)(cid:49)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:17)(cid:180)  Hydrocarbon gas found in the earth, composed of methane, ethane, butane, propane and other gases. 

(cid:179)(cid:49)(cid:42)(cid:47)(cid:86)(cid:17)(cid:180)  Natural gas liquids. Hydrocarbons found in natural gas which may be extracted as purity products such as ethane, 

propane, isobutene and normal butane, and natural gasoline. 

(cid:179)(cid:50)(cid:76)(cid:79)(cid:17)(cid:180)  Crude oil and condensate. 

(cid:179)(cid:54)(cid:40)(cid:38)(cid:17)(cid:180)  United States Securities and Exchange Commission. 

(cid:179)(cid:55)(cid:70)(cid:73)(cid:72)(cid:17)(cid:180)(cid:3) One trillion cubic feet of natural gas equivalent with one barrel of oil, condensate, or NGLs converted to six 

thousand cubic feet of natural gas. 

(cid:179)(cid:55)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:83)(cid:88)(cid:87)(cid:17)(cid:180)(cid:3) The volume of product transported or passing through a pipeline, plant, terminal or other facility. 

(cid:179)(cid:58)(cid:55)(cid:44)(cid:17)(cid:180) West Texas Intermediate light sweet crude oil. 

5 

 
 
 
PART I 

References in this Annual Report on Form 10-(cid:46)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:51)(cid:85)(cid:72)(cid:71)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)

period prior to November 10, 2014, (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)
(cid:83)(cid:85)(cid:72)(cid:71)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:53)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)iods 
between November 10, 2014 and September 2(cid:22)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:24)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:53)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)s, 
when referring to periods since September 23, 2015 or when used in the present tense or prospectively, refer to Antero Midstream 
Partners LP. 

Items 1 and 2.  Business and Properties  

Our Partnership  

We are a growth-(cid:82)(cid:85)(cid:76)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:80)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:90)(cid:81)(cid:15)(cid:3)

(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:80)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)Our assets consist of gathering 
pipelines, compressor stations, and interests in processing and fractionation plants that collect and process production from Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:87)(cid:76)(cid:70)(cid:68)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)  Our assets also include two independent fresh water 
delivery systems that deliver fresh water from the Ohio River and several regional waterways and a wastewater treatment facility that 
(cid:90)(cid:68)(cid:86)(cid:3)(cid:83)(cid:79)(cid:68)(cid:70)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:11)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:179)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:38)(cid:79)(cid:72)(cid:68)(cid:85)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)
fresh water delivery systems consist of permanent buried pipelines, surface pipelines and fresh water storage facilitates, as well as 
pumping stations and impoundments to transport the fresh water throughout the pipelines.  We also provide water handling and 
(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:17)   The other fluid handling 
services consist of high rate transfer services, wastewater transportation, and disposal.  We believe that our strategically located assets 
and our relationship with Antero Resources have allowed us to become a leading midstream energy company serving the Marcellus 
and Utica Shale plays. 

Since our initial public offering, we have grown our quarterly distribution 176% from our minimum quarterly distribution of 
$0.17 per unit ($0.68 per unit on an annualized basis) for the quarter ended December 31, 2014 (the initial quarter for which we paid a 
quarterly cash distribution) to $0.47 per unit ($1.88 per unit on an annualized basis) for the quarter ended December 31, 2018.  Our 
(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:79)(cid:92)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:71)(cid:85)(cid:76)(cid:89)(cid:72)(cid:81)(cid:3)(cid:69)(cid:92)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:80)(cid:69)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85) 
accretive build-out of additional midstream infrastructure to service that production growth. 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:182)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)

stations, interests in processing and fractionation plants, and water handling and treatment infrastructure, through which Antero 
Midstream and its affiliates provide gathering, compression, processing, fractionation and integrated water services, including fresh 
water delivery services, treatment and other fluid handling services.  These services are provided to Antero Resources under long-
term, fixed-(cid:73)(cid:72)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:71)(cid:76)(cid:87)(cid:92)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85) 31, 2018, all of 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:25)(cid:27)(cid:27)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:74)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:86)(cid:3)(cid:11)(cid:25)(cid:20)(cid:21)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:86)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)tream for gathering, 
compression and water services, except for approximately 153,000 gross acres subject to third-party gathering and compression 
commitments.  Antero Midstream also owns a 15% equity interest in the gathering system of Stonewall Gas Gathering LLC 
(cid:11)(cid:179)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:83)(cid:83)(cid:68)(cid:79)(cid:68)(cid:70)(cid:75)(cid:76)(cid:68)(cid:3)(cid:90)(cid:76)(cid:87)h 
(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:15)(cid:3)(cid:68)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:51)(cid:47)(cid:59)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:72)(cid:81)(cid:87)(cid:85)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
MarkWest, Antero Midstream released to the Joint Venture its right to provide certain processing and fractionation services on 
195,000 gross acres held by Antero Resources in Ritchie, Tyler and Wetzel Counties in West Virginia.  Under its agreements with 
Antero Midstream, and subject to any pre-existing dedications or other third-party commitments, Antero Resources has dedicated to 
Antero Midstream all of its current and future acreage in West Virginia, Ohio and Pennsylvania for gathering and compression 
services and all of its acreage within defined service areas in West Virginia and Ohio for water services.  Antero Midstream also has 
certain rights of first offer with respect to gathering, compression, processing, and fractionation services, and water services for 
acreage located outside of the existing dedicated areas.  The gathering and compression agreement has a 20-year initial term that 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:21)(cid:19)-year initial term that 
commenced on the date of the Water Acquisition (as defined below), both of which are subject to automatic annual renewal after the 
initial term.   

(cid:50)(cid:81)(cid:3)(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:22)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:24)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:36)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)ing limited liability 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:180)(cid:12)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:15)(cid:3)(cid:83)(cid:72)(cid:85)(cid:80)its and 
properties owned or leased by Antero Resources and used primarily in connection with the construction, ownership, operation, use or 

6 

(cid:80)(cid:68)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:71)(cid:89)(cid:68)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:91)(cid:3)(cid:76)(cid:81)(cid:3)(cid:39)(cid:82)(cid:71)(cid:71)(cid:85)(cid:76)(cid:71)(cid:74)(cid:72)(cid:3)(cid:38)(cid:82)(cid:88)(cid:81)(cid:87)(cid:92)(cid:15)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)t 
(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:3)(cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:36)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)
December 31, 2015 have been recast to include the historical results of Antero Water because the transaction was between entities 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:36)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)ed entirely of fresh water delivery 
operations. 

Our water services agreement includes certain minimum fresh water delivery commitments that require Antero Resources to 

take delivery or pay a fee on a minimum volume of fresh water deliveries in calendar years 2016 through 2019.  Minimum volume 
commitments were 90,000 barrels per day in 2016, 100,000 barrels per day in 2017 and 120,000 barrels per day in 2018 and are 
120,000 barrels per day in 2019.  We have a secondment agreement whereby Antero Resources provides seconded employees to 
perform certain operational services with respect to our assets for a 20-(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)
(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:17)(cid:3)(cid:3)(cid:36)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:75)(cid:72)(cid:85)(cid:72)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)ces provides certain administrative 
services to us for a 20-(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:44)(cid:51)(cid:50)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:17) 

In connection with the Water Acquisition, we have agreed to pay Antero Resources (a) $125 million in cash if we deliver 176 

million barrels or more of fresh water during the period between January 1, 2017 and December 31, 2019 and (b) an additional $125 
million in cash if we deliver 219 million barrels or more of fresh water during the period between January 1, 2018 and December 31, 
2020.  As of December 31, 2018, we have delivered 127 million of the 176 million barrels and we expect to pay the entire amount of 
the contingent consideration for the delivery of 176 million barrels or more of fresh water during the period between January 1, 2017 
and December 31, 2019.  As of December 31, 2018, we have delivered 71 million of the 219 million barrels or more of fresh water 
during the period between January 1, 2018 and December 31, 2020 and we do not expect to deliver at least 219 million barrels based 
(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:69)(cid:88)(cid:71)(cid:74)(cid:72)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term outlook. 

Our gathering and compression assets consist of high and low pressure gathering pipelines, compressor stations, and 
processing and fractionation plants that collect and process natural gas and NG(cid:47)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:72)(cid:86)(cid:75)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:86)(cid:82)urces 
including the Ohio River, local reservoirs as well as several regional waterways.  The fresh water delivery services systems consist of 
permanent buried pipelines, surface pipelines and fresh water storage facilities, as well as pumping stations and impoundments to 
transport fresh water throughout the systems used to deliver w(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)As of December 31, 2018, 
we had the ability to store 5.3 million barrels of fresh water in 37 impoundments.  The Partnership also owns water treatment assets 
including the Antero Clearwater Facility, waste water (cid:83)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
(cid:47)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:50)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:73)(cid:79)(cid:88)(cid:76)(cid:71)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:92)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)ro 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)Midstream.   

 Due to the extensive geographic distribution of our water pipeline systems in both West Virginia and Ohio, we have 
(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:71)(cid:77)(cid:68)(cid:70)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)area, and 
we are able to provide water delivery services to other oil and gas producers in the area, subject to our availability to provide the 
services, in an effort to further leverage the use of our existing system. 

Our operations are located in the United States and are organized into two reporting segments: (1) gathering and processing 

and (2) water handling and treatment.  Financial information for our reporting segments is located under Note 15(cid:178)Reporting 
Segments to our consolidated financial statements. 

Developments and Highlights 

Simplification Agreement  

On February 26, 2018, we announced that the board of directors of our general partner formed a conflicts committee 
composed solely of directors who satisfy the requirements for serving on the Partne(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:77)(cid:88)(cid:81)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
formation of the special committee at Antero Resources, and a conflicts committee at AMGP, the sole member of our general 
partner.  (cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)and evaluate potential transaction involving the 
Partnership, on October 9, 2018, we announced that we, (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)
(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)
other things, (1) AMGP will be converted from a limited partnership to a corporation under the laws of the State of Delaware, to be 
(cid:81)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72) (cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:11)(cid:21)(cid:12)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:15)(cid:3)
wholly owned subsidiary of New AM will be merged with and into the Partnership, with the Partnership surviving the merger as an 
(cid:76)(cid:81)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:15)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:22)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)ed and outstanding Series B Units representing 

7 

 
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(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71) for an aggregate of approximately 17.35 million 
(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)
transactions contemplated by the Simplification Agreement are collectively referred (cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Transactions, the Partnership will be a wholly owned subsidiary of New AM and former shareholders of AMGP, unitholders of the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17) 

For (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:180) 

Financial Results 

For the year ended December 31, 2018, we generated cash flows from operations of $658 million, net income of $586 

million, Adjusted EBITDA of $717 million, and Distributable Cash Flow of $596 million.  This compares to cash flows from 
operations of $476 million, net income of $307 million, Adjusted EBITDA of $529 million, and Distributable Cash Flow of $421 
million for the year ended December 31, 2017.  (cid:54)(cid:72)(cid:72)(cid:3)(cid:179)(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:40)(cid:37)(cid:44)(cid:55)(cid:39)(cid:36)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
Distributable Cash Flow (non-GAAP measures) and a reconciliation of Adjusted EBITDA and Distributable Cash Flow to net income.  

Cash Distributions 

The board of directors of our general partner declared a cash distribution of $0.47 per unit for the quarter ended December 

31, 2018.  The distribution was paid on February 13, 2019 to unitholders of record as of February 1, 2019. 

2018 Capital Spending and 2019 Capital Budget  

For  the  year  ended  December  31,  2018,  our  total  capital  spending  was  $588  million,  which  included  $535  million  of 
expansion capital and $53  million of  maintenance capital.   We spent $446  million  for gathering and compression infrastructure, of 
which 97% was invested in the Marcellus Shale and the remaining 3% was invested in the Utica Shale.  The additional gathering and 
compression infrastructure included 51 miles of pipelines in the Marcellus and Utica Shales combined.  Additionally, we invested $89 
million  in  water  infrastructure  to  construct  12  miles  of  additional  buried  fresh  water  pipelines  and  surface  pipelines  and  Antero 
(cid:38)(cid:79)(cid:72)(cid:68)(cid:85)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:73)rastructure 
was  allocated  77%  to  the  Marcellus  Shale  and  the  remaining  23%  to  the  Utica  Shale.    We  also  invested  $136  million  in  our  joint 
ventures. 

During  2019,  we  plan  to  expand  our  existing  Marcellus  and  Utica  Shale  gathering,  processing  and  fresh  water  delivery 
(cid:76)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:86)(cid:17)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)ng and completion 
capital budget is $1.1 billion to $1.25 billion.  Antero Resources plans to operate an average of five drilling rigs and complete between 
115 and 125 horizontal wells, substantially all of which are located on acreage dedicated to us.   

Our 2019 capital budget is a range of $750 million to $800 million, which at the midpoint includes $710 million of expansion 
capital and $65 million of  maintenance capital.  The capital budget includes $400 million of capital for gathering and compression 
infrastructure primarily in the Marcellus Shale.  We also expect to invest $135 million for fresh water delivery infrastructureincluding 
(cid:68)(cid:81)(cid:3) (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:71)(cid:85)(cid:68)(cid:90)(cid:68)(cid:79)(cid:3) (cid:83)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:87)(cid:85)(cid:88)(cid:81)(cid:78)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:55)(cid:92)(cid:79)(cid:72)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:58)(cid:72)(cid:93)(cid:72)(cid:79)(cid:3) (cid:38)(cid:82)(cid:88)nties, 
West Virginia.  Our 2019 budget also includes $200 million for our investment in the Joint Venture primarily for the construction of 
two more processing plants to provide an additional 400 Mmcf/d of processing capacity.    

Credit Facility  

Our revolving credit facility was amended in October 2018 to (i) increase lender commitments from $1.5 billion to $2.0 

billion, (ii) permit us and our guarantors under the facility to consummate the Transactions and (iii) modify the pricing grid to 
decrease pricing.  At December 31, 2018, we have $990 million outstanding and no letters of credit outstanding under the revolving 
(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:87)(cid:88)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:86)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:25)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:21)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:26)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:3)of 
Financial Condition and Results of Operations(cid:178)Capital Resources and Liquidity(cid:178)Debt Agreements(cid:178)(cid:53)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)
a description of our revolving Credit Facility. 

8 

 
 
 
 
Our Assets  

The following table provides information regarding our gathering and processing systems as of December 31, 2017 and 2018: 

Marcellus 
Utica 
Total 

Low-Pressure  

Pipeline (miles) 

Gathering and Processing System 
High-Pressure  

Pipeline (miles) 
As of December 31, 

Compression 

Capacity (MMcf/d) 

2017 

2018 

2017 

2018 

2017 

2018 

126 
68 
194 

 155 
 72 
 227 

116 
36 
152 

 134 
 36 
 170 

1,590 
120 
1,710 

 2,150  
 320  
 2,470  

The following table provides information regarding our water handling and treatment systems as of December 31, 2017 and 

2018:  

Water Handling and Treatment System 

Buried Fresh Water  
Pipeline (miles) 

Surface Fresh Water 
Pipeline (miles) 

Wells Serviced by  
Water Distribution 

Fresh Water  
Impoundments 

2017 

2018 

2017 

As of December 31, 
2017 

2018 

2018 

2017 

2018 

Marcellus 
Utica 
Total 

122 
55 
177 

 127 
 55 
 182 

68 
28 
96 

 76 
 27 
 103 

115 
27 
142 

 138 
 24 
 162 

25 
13 
38 

 25  
 12  
 37   

In addition, our assets include a wastewater treatment facility that was placed into service in 2018.   

Our Relationship with Antero Resources  

Antero Resources is our most significant customer and is one of the largest producers of natural gas and NGLs in the 

Appalachian Basin, where it produced, on average, 2.7 Bcfe/d net (28% liquids) during 2018, an increase of 20% as compared to 
(cid:21)(cid:19)(cid:20)(cid:26)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:20)(cid:27)(cid:17)(cid:19)(cid:3)(cid:55)(cid:70)(cid:73)(cid:72)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:76)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:25)(cid:22)(cid:8)(cid:3)
(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:22)(cid:24)(cid:8)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:8)(cid:3)(cid:82)(cid:76)(cid:79)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)ntory consisted of 3,734 identified 
potential horizontal well locations (approximately 3,200 of which were located on acreage dedicated to us) for gathering and 
compression and water handling and treatment services, which provides us with significant opportunities for growth as Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
completion budget is $1.1 billion to $1.25 billion, and includes plans to operate an average of five drilling rigs, primarily in the 
Marcellus Shale.  Antero Resources relies significantly on us to deliver the midstream infrastructure necessary to accommodate its 
production growth.  For additional information regarding our contracts with Antero Resources, (cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:178)Contractual 
(cid:36)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:180) 

We are highly dependent on Antero Resources as our most significant customer, and we expect to derive most of our 

revenues from Antero Resources for the foreseeable future.  Accordingly, we are indirectly subject to the business risks of Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:36)(cid:17)(cid:3)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:178)(cid:53)(cid:76)(cid:86)(cid:78)(cid:86)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)
all of our revenue is derived from Antero Resources, any development that (cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
operations, financial condition or market reputation could have a material adverse impact on us. 

Contractual Arrangements with Antero Resources 

Gathering and Compression 

In connection with our IPO, Antero Resources dedicated all of its current and future acreage in West Virginia, Ohio and 
Pennsylvania to us for gathering and compression except for acreage attributable to third-party commitments in effect prior to the 
Antero Midstream IPO, or acreage we have acquired that is subject to pre-(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
existing third-party commitments and pre-(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:178)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:40)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:55)(cid:75)(cid:76)(cid:85)(cid:71)-Party 
(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)o gather and compress natural gas produced by Antero Resources on any acreage it acquires 
in the future outside of West Virginia, Ohio and Pennsylvania on the same terms and conditions.  Under the gathering and 

9 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
compression agreement, we receive a low pressure gathering fee per Mcf, a high-pressure gathering fee per Mcf, and a compression 
fee per Mcf, in each case subject to CPI-based adjustments.  If and to the extent Antero Resources requests that we construct new high 
pressure lines and compressor stations, the gathering and compression agreement contains minimum volume commitments that require 
Antero Resources to utilize or pay for 75% and 70%, respectively, of the capacity of such new construction for 10 years.  Additional 
high pressure lines and compressor stations installed on our own initiative are not subject to such volume commitments.  These 
minimum volume commitments on new infrastructure are intended to support the stability of our cash flows.  For additional 
(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180) 

Water Handling and Treatment Services 

In connection with the Water Acquisition on September 23, 2015, we entered in a Water Services Agreement with Antero 
Resources whereby we have agreed to provide certain water handling and treatment services to Antero Resources within an area of 
dedication in defined service areas in Ohio and West Virginia.  We also have certain rights of first offer with respect to water services 
for acreage located outside of the existing dedicated areas.  Antero Resources agreed to pay us for all water handling and treatment 
services provided by us in accordance with the terms of the Water Services Agreement.  The initial term of the Water Services 
Agreement is 20 years from September 23, 2015 and from year to year thereafter until terminated by either party.  Under the 
agreement, Antero Resources will pay a fixed fee per barrel in West Virginia and Ohio and all other locations for fresh water 
deliveries by pipeline directly to the well site, subject to annual CPI adjustments.  Antero Resources committed to pay a fee on a 
minimum volume of fresh water deliveries in calendar years 2016 through 2019.  Antero Resources is obligated to pay a minimum 
volume fee to us in the event the aggregate volume of fresh water delivered to Antero Resources under the Water Services Agreement 
is less than 120,000 barrels per day in 2019, which we expect to exceed.  Antero Resources also agreed to pay us a fixed fee per barrel 
for wastewater treatment at the Antero Clearwater Facility subject to annual CPI-based adjustments.  In addition, we contract with 
third party service providers to provide Antero Resources flow back and produced water services and Antero Resources will reimburse 
us third party out-of-pocket costs plus 3%.  

Gas Processing and NGL Fractionation  

Prior to the formation of the Joint Venture, we did not have any gas processing or NGL fractionation infrastructure; however, 

we have a right-of-first-offer agreement with Antero Resources for the provision of such services, pursuant to which Antero 
Resources, subject to certain exceptions, may not procure any gas processing or NGL fractionation services with respect to its 
production (other than production subject to a pre-existing dedication) without first offering us the right to provide such services. For 
(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:178)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:40)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:55)(cid:75)(cid:76)(cid:85)(cid:71)-(cid:51)(cid:68)(cid:85)(cid:87)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)
(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180) 

In connection with the formation of the Joint Venture, we and Antero Resources amended and restated our right of first offer 

agreement in order to, among other things, amend the list of conflicting dedications set forth in such agreement to include the gas 
processing and NGL fractionation arrangement between Antero Resources and MarkWest.  In connection with the entry into to such 
gas processing and NGL fractionation agreements, we released to the Joint Venture our right to provide  certain processing and 
fractionation services on 195,000 gross acres held by Antero Resources, and MarkWest has separately agreed to use the Joint Venture 
for a portion of processing and fractionation services under the agreements.  

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:40)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:55)(cid:75)(cid:76)(cid:85)(cid:71)-Party Commitments 

Excluded Acreage  

Antero Resources pre(cid:89)(cid:76)(cid:82)(cid:88)(cid:86)(cid:79)(cid:92)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:182)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:72)(cid:91)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:17)(cid:180)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)acreage 
consisted of appr(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:20)(cid:24)(cid:22)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:17)(cid:3)(cid:3)(cid:36)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:24)(cid:22)(cid:19)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:22)(cid:15)(cid:26)(cid:22)(cid:23)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:75)(cid:82)(cid:85)(cid:76)(cid:93)(cid:82)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:17) 

Other Commitments 

In addition to the excluded acreage, Antero Resources has entered into take-or-pay contracts with volume commitments for 
(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:182)(cid:3)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:54)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)p to an 
aggregate of 750 MMcf/d on four high pressure gathering pipelines and 1,020 MMcf/d on nine compressor stations.  

10 

 
 
 
 
 
Acreage Dispositions 

(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
compression agreement, water services agreement and right of first offer agreement between Antero Resources and us permit Antero 
Resources to sell, transfer, convey, assign, grant, or otherwise dispose of dedicated properties free of the dedication under such 
agreements, provided that the number of net acres of dedicated properties so disposed of, when added to the number of net acres of 
dedicated properties previously disposed of free of the dedication since the respective effective dates of the agreements, does not 
exceed the aggregate number of net acres of dedicated properties acquired by Antero Resources since such effective dates. 
Accordingly, under certain circumstances, Antero Resources may dispose of a significant number of net acres of dedicated properties 
free from dedication without our consent, and we have no control over the timing or extent of such dispositions.    

Title to Properties 

Our real property is classified into two categories: (1) parcels that we own in fee and (2) parcels in which our interest derives 

from leases, easements, rights-of-way, permits or licenses from landowners or governmental authorities, permitting the use of such 
land for our operations.  Portions of the land on which our pipelines and major facilities are located are owned by us in fee title, and 
we believe that we have satisfactory title to these lands.  The remainder of the land on which our pipelines and major facilities are 
located are held by us pursuant to surface leases between us, as lessee, and the fee owner of the lands, as lessors.  We have leased or 
owned these lands without any material challenge known to us relating to the title to the land upon which the assets are located, and 
we believe that we have satisfactory leasehold estates or fee ownership of such lands.  We have no knowledge of any challenge to the 
underlying fee title of any material lease, easement, right-of-way, permit or license held by us or to our title to any material lease, 
easement, right-of-way, permit or lease, and we believe that we have satisfactory title to all of its material leases, easements, 
rights-of-way, permits and licenses. 

Seasonality 

Demand for natural gas generally decreases during the spring and fall months and increases during the summer and winter 
months.  However, seasonal anomalies such as mild winters or mild summers sometimes lessen this fluctuation.  In addition, certain 
natural gas end users, utilities and marketers utilize natural gas storage facilities and purchase some of their anticipated winter 
requirements during the spring, summer and fall, thereby smoothing demand for natural gas.  This can also lessen seasonal demand 
fluctuations.  These seasonal anomalies can increase demand for our services during the summer and winter months and decrease 
demand for our services during the spring and fall months. 

Competition 

(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:87)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)

operations for which we currently provide midstream services and will not compete for future portions of (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
operations that are dedicated to us pursuant to our gathering and compression agreement and water handling and treatment services 
(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:178)Our Relationship with Antero Resources(cid:178)
(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:36)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:43)(cid:82)(cid:90)(cid:72)(cid:89)(cid:72)(cid:85)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:73)(cid:68)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:87)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:87)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)-party volumes to our gathering 
and compression and water handling and treatment systems.  In addition, these third parties may develop their own gathering and 
compression and water handling and treatment systems in lieu of employing our assets. 

Regulation of Operations  

Regulation of pipeline gathering services may affect certain aspects of our business and the market for our services. 

Gathering Pipeline Regulation 

Section 1(b) of the Natural Gas Act of 1938, or NGA, exempts natural gas gathering facilities from regulation by the Federal 
Energy Regulatory Commission, or FERC, under the NGA.  Although the FERC has not made any formal determinations with respect 
to any of our facilities, we believe that the natural gas pipelines in our gathering systems meet the traditional tests the FERC has used 
to establish whether a pipeline is a gathering pipeline not subject to FERC jurisdiction.  The distinction between FERC-regulated 
transmission services and federally unregulated gathering services, however, has been the subject of substantial litigation, and the 
FERC determines whether facilities are gathering facilities on a case-by-case basis, so the classification and regulation of some our 
gathering facilities and intrastate transportation pipelines may be subject to change based on future determinations by the FERC, the 
courts, or Congress.  If the FERC were to consider the status of an individual facility and determine that the facility is not a gathering 

11 

 
 
pipeline and the pipeline provides interstate transmission service, the rates for, and terms and conditions of, services provided by such 
facility would be subject to regulation by the FERC under the NGA or the Natural Gas Policy Act of 1978, or NGPA.  Such FERC-
regulation could decrease revenue, increase operating costs, and, depending upon the facility in question, could adversely affect our 
results of operations and cash flows.  In addition, if any of our facilities were found to have provided services or otherwise operated in 
violation of the NGA or NGPA, this could result in the imposition of civil penalties as well as a requirement to disgorge charges 
collected for such service in excess of the rate established by the FERC. 

Unlike natural gas gathering under the NGA, there is no exemption for the gathering of crude oil or NGLs under the 

Interstate Commerce Act, or ICA.  Whether a crude oil or NGL shipment is in interstate commerce under the ICA depends on the 
fixed and (cid:83)(cid:72)(cid:85)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:76)(cid:83)(cid:83)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:85)(cid:88)(cid:71)(cid:72)(cid:3)(cid:82)(cid:76)(cid:79)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:49)(cid:42)(cid:47)(cid:182)(cid:86)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:71)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:69)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:3)(cid:69)(cid:85)(cid:72)(cid:68)(cid:78)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:80)(cid:82)(cid:89)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)  
Antero Midstream believes that the crude oil and NGL pipelines in its gathering system meet the traditional tests the FERC has used to 
determine that a pipeline is not providing transportation service in interstate commerce subject to FERC ICA jurisdiction.  However, 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:85)(cid:68)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:85)(cid:68)(cid:70)(cid:87)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:75)(cid:76)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:85)(cid:88)(cid:71)(cid:72)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:49)(cid:42)(cid:47)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)lines depends on 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:76)(cid:83)(cid:83)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:83)(cid:82)(cid:85)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:85)(cid:88)(cid:71)(cid:72)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:82)(cid:85)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:76)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72) over 
time.  If the FERC were to consider the status of an individual facility and the character of a crude oil or NGL shipment, and 
determine that the shipment is in interstate commerce, the rates for, and terms and conditions of, transportation services provided by 
such facility would be subject to regulation by the FERC under the ICA.  Such FERC regulation could decrease revenue, increase 
(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:15)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:84)(cid:88)(cid:72)(cid:86)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)and cash 
(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:73)(cid:82)(cid:88)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86) or otherwise operated in violation of 
the ICA, this could result in the imposition of administrative and civil remedies and criminal penalties, as well as a requirement to 
disgorge charges collected for such services in excess of the rate established by the FERC. 

State regulation of gathering facilities generally includes various safety, environmental and, in some circumstances, 

nondiscriminatory take requirements and complaint-based rate regulation.  States in which we operate may adopt ratable take and 
common purchaser statutes, which would require our gathering pipelines to take natural gas without undue discrimination in favor of 
one producer over another producer or one source of supply over another similarly situated source of supply.  The regulations under 
these statutes may have the effect of imposing some restrictions on our ability as an owner of gathering facilities to decide with whom 
we contract to gather natural gas.  States in which we operate may also adopt a complaint-based regulation of natural gas gathering 
activities, which allows natural gas producers and shippers to file complaints with state regulators in an effort to resolve grievances 
relating to gathering access and rate discrimination.  We cannot predict whether such regulation will be adopted and whether such a 
complaint will be filed against us in the future.  Failure to comply with state regulations can result in the imposition of administrative, 
civil and criminal remedies.  To date, there has been no adverse effect to our system due to state regulations. 

Our gathering operations could be adversely affected should they be subject in the future to more stringent application of 
state regulation of rates and services.  Our gathering operations also may be or become subject to additional safety and operational 
regulations relating to the design, installation, testing, construction, operation, replacement and management of gathering facilities.  
Additional rules and legislation pertaining to these matters are considered or adopted from time to time.  We cannot predict what 
effect, if any, such changes might have on our operations, but the industry could be required to incur additional capital expenditures 
and increased costs depending on future legislative and regulatory changes. 

The Energy Policy Act of 2005, or EPAct 2005, amended the NGA and NGPA to prohibit fraud and manipulation in natural 
gas markets.  The FERC subsequently issued a final rule making it unlawful for any entity, in connection with the purchase or sale of 
natural gas (cid:82)(cid:85)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:83)(cid:82)(cid:85)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:41)(cid:40)(cid:53)(cid:38)(cid:182)(cid:86)(cid:3)(cid:77)(cid:88)(cid:85)(cid:76)(cid:86)(cid:71)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:73)(cid:85)(cid:68)(cid:88)(cid:71)(cid:15)(cid:3)(cid:80)(cid:68)(cid:78)(cid:72)(cid:3)(cid:68)(cid:81)(cid:3)(cid:88)(cid:81)(cid:87)(cid:85)(cid:88)(cid:72)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:80)(cid:76)(cid:87)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)
(cid:72)(cid:81)(cid:74)(cid:68)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:83)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:73)(cid:85)(cid:68)(cid:88)(cid:71)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:41)(cid:40)(cid:53)(cid:38)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:87)(cid:76)-manipulation rules apply 
(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:87)(cid:85)(cid:68)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:82)(cid:81)(cid:79)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:179)(cid:81)(cid:72)(cid:91)(cid:88)(cid:86)(cid:180)(cid:3)(cid:87)(cid:82)(cid:3)(cid:41)(cid:40)(cid:53)(cid:38)-jurisdictional transactions.  EPAct 2005 
also provided the FERC with the authority to impose civil penalties of up to approximately $2 million (adjusted annually for inflation) 
per day per violation.  On January 9, 2017, FERC issued an order (Order No. 834) increasing the maximum civil penalty amounts 
under the NGA and NGPA to adjust for inflation.  FERC may now assess civil penalties under the NGA and NGPA of up to 
$1,269,500 per violation per day. 

Pipeline Safety Regulation 

Some of our gas pipelines are subject to regulation by the Pipeline and Hazardous Materials Safety Administration, or 

PHMSA, pursuant to the Natural Gas Pipeline Safety Act of 1968, or NGPSA, with respect to natural gas, and the Hazardous Liquids 
Pipeline Safety Act of 1979, or HLPSA, with respect to crude oil and NGLs.  Both the NGPSA and the HLPSA were amended by the 
Pipeline Safety Act of 1992, the Accountable Pipeline Safety and Partnership Act of 1996, the Pipeline Safety Improvement Act of 
2002, or PSIA, as reauthorized and amended by the Pipeline Inspection, Protection, Enforcement and Safety Act of 2006, or the 

12 

 
PIPES Act, and the Pipeline Safety, Regulatory Certainty, and Job Creation Act of 2011, or 2011 Pipeline Safety Act.  The NGPSA 
and HLPSA regulate safety requirements in the design, construction, operation and maintenance of natural gas, crude oil and NGL 
pipeline facilities, while the PSIA establishes mandatory inspections for all U.S. crude oil, NGL and natural gas transmission pipelines 
in high-consequence areas, or HCAs. 

The PHMSA has developed regulations that require pipeline operators to implement integrity management programs, 
including more frequent inspections and other measures to ensure pipeline safety in HCAs.  The regulations require operators, 
including us, to: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

perform ongoing assessments of pipeline integrity; 

identify and characterize applicable threats to pipeline segments that could impact a HCA; 

improve data collection, integration and analysis; 

repair and remediate pipelines as necessary; and 

implement preventive and mitigating actions. 

The 2011 Pipeline Safety Act, among other things, increased the maximum civil penalty for pipeline safety violations and 
directed the Secretary of Transportation to promulgate rules or standards relating to expanded integrity management requirements, 
automatic or remote-controlled valve use, excess flow valve use, leak detection system installation and testing to confirm the material 
strength of pipe operating above 30% of specified minimum yield strength in high consequence areas.  Consistent with the act, 
PHMSA finalized rules that increased the maximum administrative civil penalties for violation of the pipeline safety laws and 
regulations to $200,000 per violation per day, with a maximum of $2,000,000 for a series of violations.  Effective April 27, 2017, 
those maximum civil penalties were increased to $209,002 per violation per day, with a maximum of $2,090,022 for a series of 
violations, to account for inflation.  The PHMSA has also issued a final rule applying safety regulations to certain rural low-stress 
hazardous liquid pipelines that were not covered previously by some of its safety regulation. 

On June 22, 2016, the President of the United States signed into law new legislation entitled Protecting our Infrastructure of 

Pipelines and Enhancing Safety Act of 2016, or the PIPES Act.  The PIPES Act reauthorizes PHMSA through 2019, and facilitates 
greater pipeline safety by providing PHMSA with emergency order authority, including authority to issue prohibitions and safety 
measures on owners and operators of gas or hazardous liquid pipeline facilities to address imminent hazards, without prior notice or an 
opportunity for a hearing, as well as enhanced release reporting requirements, requiring a review of both natural gas and hazardous 
liquid integrity management programs, and mandating the creation of a working group to consider the development of an information-
sharing system related to integrity risk analyses. The PIPES Act also requires that PHMSA publish periodic updates on the status of 
those mandates outstanding from the 2011 Pipeline Safety Act, of which approximately twelve remain to be completed.  The mandates 
yet to be acted upon include requiring certain shut-off valves on transmission lines, mapping all high consequence areas, and 
shortening the deadline for accident and incident notifications. 

PHMSA regularly revises its pipeline safety regulations.  For example, in March of 2015, PHMSA finalized new rules 

applicable to gas and hazardous liquid pipelines that, among other changes, impose new post-construction inspections, welding, gas 
component pressure testing requirements, as well as requirements for calculating pressure reductions for immediate repairs on liquid 
pipelines.  In addition, in May 2016, PHMSA proposed rules that would, if adopted, impose more stringent requirements for certain 
gas (cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:80)(cid:68)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:43)(cid:48)(cid:54)(cid:36)(cid:182)(cid:86)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:86)(cid:68)(cid:73)(cid:72)(cid:87)(cid:92)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:74)(cid:68)s 
(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:69)(cid:72)(cid:92)(cid:82)(cid:81)(cid:71)(cid:3)(cid:181)(cid:181)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:182)(cid:182)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:88)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:81)(cid:72)(cid:90)(cid:79)(cid:92)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:181)(cid:181)(cid:80)(cid:82)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:182)(cid:182)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87) 
contain as few as five dwellings within the potential impact area and would also require gas pipelines installed before 1970 that are 
currently exempted from certain pressure testing obligations to be tested to determine their maximum allowable operating pressures, 
or MAOP.  Other new requirements proposed by PHMSA under rulemaking would require pipeline operators to: report to PHMSA in 
the event of certain MAOP exceedances; strengthen PHMSA integrity management requirements; consider seismicity in evaluating 
threats to a pipeline; conduct hydrostatic testing for all pipeline segments manufactured using longitudinal seam welds; and use more 
detailed guidance from PHMSA in the selection of assessment methods to inspect pipelines.  The proposed rulemaking also seeks to 
impose a number of requirements on natural gas gathering lines.  PHMSA has announced its intention to divide the proposed rule into 
three parts and issue three separate final rulemakings in 2019.  Part I is expected to address the expansion of risk assessment and 
MAOP requirements (expected issuance in March 2019); Part II is expected to address the expansion of integrity management 
program regulations (expected issuance in June 2019); and Part III is expected to expand the regulation of gas gathering lines 
(expected issuance in August 2019).  Separately, in January 2017, PHMSA finalized regulations for hazardous liquid pipelines that 

13 

significantly extend and expand the reach of certain PHMSA integrity management requirements (i.e., periodic assessments, leak 
(cid:71)(cid:72)(cid:87)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:83)(cid:68)(cid:76)(cid:85)(cid:86)(cid:12)(cid:15)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:3)new 
reporting requirements for certain unregulated pipelines, including all hazardous liquid gathering lines.  However, implementation of 
this rule has been delayed as a result of the change in U.S. Presidential Administrations, and the final rule is not expected to be 
published by the Federal Register until the first half of 2019.  Separately, in March 2017, new PHMSA rules related to gas and 
hazardous liquid pipeline accident reporting, control room personnel training requirements, personnel drug and alcohol testing, and 
incorporating consensus standards by reference for integrity management issues such as in-line inspection and stress corrosion 
cracking direct assessment became effective.  

States are largely preempted by federal law from regulating pipeline safety for interstate lines but most are certified by the 
DOT to assume responsibility for enforcing federal intrastate pipeline regulations and inspection of intrastate pipelines.  States may 
adopt stricter standards for intrastate pipelines than those imposed by the federal government for interstate lines; however, states vary 
considerably in their authority and capacity to address pipeline safety.  State standards may include requirements for facility design 
and management in addition to requirements for pipelines.  We do not anticipate any significant difficulty in complying with 
applicable state laws and regulations.  Our natural gas pipelines have continuous inspection and compliance programs designed to 
keep the facilities in compliance with pipeline safety and pollution control requirements. 

We regularly review all existing and proposed pipeline safety requirements and work to incorporate the new requirements 

into procedures and budgets.  We expect to incur increasing regulatory compliance costs, based on the intensification of the regulatory 
environment and upcoming changes to regulations as outlined above.  In addition to regulatory changes, costs may be incurred when 
there is an accidental release of a commodity transported by our system, or a regulatory inspection identifies a deficiency in our 
required programs. 

Regulation of Environmental and Occupational Safety and Health Matters  

General 

Our natural gas gathering and compression and water handling and treatment activities are subject to stringent and complex 
federal, state and local laws and regulations relating to the protection of the environment.  As an owner or operator of these facilities, 
we must comply with these laws and regulations at the federal, state and local levels.  These laws and regulations can restrict or 
impact our business activities in many ways, such as: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

requiring the installation of pollution-control equipment, imposing emission or discharge limits or otherwise restricting 
the way we operate resulting in additional costs to our operations; 

limiting or prohibiting construction activities in areas, such as air quality nonattainment areas, wetlands, coastal regions 
or areas inhabited by endangered or threatened species; 

delaying system modification or upgrades during review of permit applications and revisions; 

requiring investigatory and remedial actions to mitigate discharges, releases or pollution conditions associated with our 
operations or attributable to former operations; and 

enjoining the operations of facilities deemed to be in non-compliance with permits issued pursuant to or regulatory 
requirements imposed by such environmental laws and regulations. 

Failure to comply with these laws and regulations may trigger a variety of administrative, civil and criminal enforcement 

measures, including the assessment of monetary penalties and natural resource damages.  Certain environmental statutes impose strict 
joint and several liability for costs required to clean up and restore sites where hazardous substances, hydrocarbons or solid wastes 
have been disposed or otherwise released.  Moreover, neighboring landowners and other third parties may file common law claims for 
personal injury and property damage allegedly caused by the release of hazardous substances, hydrocarbons or solid waste into the 
environment. 

The trend in environmental regulation has been to place more restrictions and limitations on activities that may affect the 

environment and thus, there can be no assurance as to the amount or timing of future expenditures for environmental compliance or 
remediation and actual future expenditures may be different from the amounts we currently anticipate.  As with the midstream 
industry in general, complying with current and anticipated environmental laws and regulations can increase our capital costs to 

14 

 
construct, maintain and operate equipment and facilities.  While these laws and regulations affect our maintenance capital 
expenditures and net income, we do not believe they will have a material adverse effect on our business, financial position, results of 
operations or cash flows, nor do we believe that they will affect our competitive position since the operations of our competitors are 
generally similarly affected.  In addition, we believe that the various activities in which we are presently engaged that are subject to 
environmental laws and regulations are not expected to materially interrupt or diminish our operational ability to gather natural gas 
and provide water handling and treatment services.  We cannot assure you, however, that future events, such as changes in existing 
laws or enforcement policies, the promulgation of new laws or regulations, or the development or discovery of new facts or conditions 
will not cause us to incur significant costs.  Below is a discussion of the material environmental laws and regulations that relate to our 
business.  

Hydraulic Fracturing Activities  

Hydraulic fracturing is an important and common practice that is used to stimulate production of natural gas and/or oil from 

dense subsurface rock formations.  The hydraulic fracturing process involves the injection of water, sand, and chemicals under 
pressure through a cased and cemented wellbore into targeted subsurface formations to fracture the surrounding rock and stimulate 
production.  Our primary customer, Antero Resources, uses hydraulic fracturing as part of its completion operations as does most of 
the U.S. onshore oil and natural gas industry.  Hydraulic fracturing is typically regulated by state oil and gas commissions and similar 
agencies; however, in recent years the EPA, has asserted limited authority over hydraulic fracturing and has issued or sought to 
propose rules related to the control of air emissions, disclosure of chemicals used in the process, and the disposal of flowback and 
produced water resulting from the process.  Some states, including those in which we operate, have adopted, and other states are 
considering adopting, regulations that could impose more stringent disclosure and/or well construction requirements on hydraulic 
fracturing operations.  For example, in July 2015, the Ohio Department of Natural Resources issued final rules for horizontal drilling 
well-pad construction.  The Ohio legislature has also adopted laws requiring oil and natural gas operators to disclosue chemical 
ingredients used to hydraulically fracture wells and to conduct pre-drilling baseline water quality sampling of certain water wells near 
a proposed horizontal well.  Local governments also may seek to adopt ordinances within their jurisdictions regulating the time, place 
and manner of drilling activities in general or hydraulic fracturing activities in particular.  Some states and municipalities have saught 
to ban hydraulic fracturing altogether.  We cannot predict whether any such federal, state, or local legal restrictions relating to the 
hydraulic fracturing process will ever be enacted in areas where our customers operate and if so, what the effects of such restrictions 
would be.  If additional levels of regulation and permits were required through the adoption of new laws and regulations at the federal 
state or local level, that could lead to delays, increased operating costs and process prohibitions that could reduce the volumes of water 
and natural gas that move through our systems, which in turn could materially adversely affect our revenues and results of operations. 

Hazardous Waste 

A(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:82)(cid:80)(cid:72)(cid:3)(cid:75)(cid:68)(cid:93)(cid:68)(cid:85)(cid:71)(cid:82)(cid:88)(cid:86)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)

to the federal Resource Conservation and Recovery Act, or RCRA, and comparable state laws, which impose requirements for the 
handling, storage, treatment and disposal of hazardous waste.  RCRA currently exempts many natural gas gathering and field 
processing wastes from classification as hazardous waste.  Specifically, RCRA excludes from the definition of hazardous waste 
produced waters and other wastes intrinsically associated with the exploration, development, or production of crude oil and natural 
gas, including residual constituents derived from those exempt wastes.  However, these oil and gas exploration and production wastes 
may still be regulated under state solid waste laws and regulations, and it is possible that certain oil and natural gas exploration and 
production wastes now classified as exploration and production-exempt non-hazardous waste could be classified as hazardous waste in 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:72)(cid:91)(cid:68)(cid:80)(cid:83)(cid:79)(cid:72)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:81)(cid:89)(cid:76)(cid:85)(cid:82)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:86)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)
alleged failure to timely assess its RCRA Subtitle D criteria regulations exempting certain exploration and production related oil and 
gas wastes from regulation as hazardous wastes under RCRA.  The consent decree requires EPA to propose a rulemaking no later than 
March 15, 2019 for revision of certain Subtitle D criteria regulations pertaining to oil and gas wastes or to sign a determination that 
revision of the regulations is not necessary.  Any revisions to Subtitle D would have to be finalized by 2021.  Stricter regulation of 
(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)tions or the operations of our 
customers, which could in turn reduce demand for our services, increase our waste disposal costs, and adversely affect our business. 

Our Antero Clearwater Facility and adjacent Antero Landfill operate pursuant to West Virginia Department of Environmental 
(cid:51)(cid:85)(cid:82)(cid:87)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:39)(cid:40)(cid:51)(cid:180)(cid:12)(cid:3)(cid:83)(cid:72)(cid:85)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:87)(cid:82)(cid:85)(cid:80)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:17)(cid:3)(cid:3)(cid:55)he 
produced water, flowback water, and other waste associated with shale development treated at the Antero Clearwater Facility are 
exempt from RCRA hazardous waste regulations.  Likewise, the input (residual salt derived from the wastewater treated at the Antero 
Clearwater Facility) and output (leachate derived from precipitation run-off contacting the non-hazardous salt) to and from the Antero 
Landfill also qualify as exploration and production-exempt non-hazardous wastes because they derive from non-hazardous exempt 
material.  However, in the event that hazardous non-exempt waste streams are introduced to and mix with the exempt waste at the 

15 

 
 
Antero Clearwater Facility, or if we otherwise fail to handle or treat such exempt materials pursuant to our West Virginia DEP 
permits, we may be subject to penalties and/or corrective action measures.  Additionally, in the event that we dispose of sludges 
containing naturally occurring radioactive material (generated at the Antero Clearwater Facility) at the Antero Landfill or other third-
party facility that is not authorized to receive such radioactive waste, we may be subject to significant liabilities in the form of 
administrative, civil or criminal penalties and/or remedial obligations to remove previously disposed radioactive wastes and remediate 
contaminated property. 

Site Remediation  

The Comprehensive Environmental Response, Compensation and Liability Act, or CERCLA, also known as the Superfund 

law and comparable state laws impose liability without regard to fault or the legality of the original conduct, on certain classes of 
persons responsible for the release of hazardous substances into the environment.  Such classes of persons include the current and past 
owners or operators of sites where a hazardous substance was released, and companies that disposed or arranged for disposal of 
hazardous substances (cid:68)(cid:87)(cid:3)(cid:82)(cid:73)(cid:73)(cid:86)(cid:76)(cid:87)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:79)(cid:87)(cid:75)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:83)(cid:72)(cid:87)(cid:85)(cid:82)(cid:79)(cid:72)(cid:88)(cid:80)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:38)(cid:40)(cid:53)(cid:38)(cid:47)(cid:36)(cid:182)(cid:86)(cid:3)
(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:179)(cid:75)(cid:68)(cid:93)(cid:68)(cid:85)(cid:71)(cid:82)(cid:88)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:70)(cid:72)(cid:15)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)ignated as 
hazardous substances.  CERCLA authorizes the EPA, states, and, in some cases, third parties to take actions in response to releases or 
threatened releases of hazardous substances into the environment and to seek to recover from the classes of responsible persons the 
costs they incur to address the release.  Under CERCLA, we could be subject to strict joint and several liabilities for the costs of 
cleaning up and restoring sites where hazardous substances have been released into the environment and for damages to natural 
resources. 

We currently own or lease, and may have in the past owned or leased, properties that have been used for the gathering and 
compression of natural gas and the gathering and transportation of oil.  Although we typically used operating and disposal practices 
that were standard in the industry at the time, petroleum hydrocarbons or wastes may have been disposed of or released on or under 
the properties owned or leased by it or on or under other locations where such substances have been taken for disposal.  Such 
petroleum hydrocarbons or wastes may have migrated to property adjacent to our owned and leased sites or the disposal sites.  In 
addition, some of the properties may have been operated by third parties or by previous owners whose treatment and disposal or 
release of petroleum hydrocarbons or wastes was not under our control.  These properties and the substances disposed or released on 
them may be subject to CERCLA, RCRA and analogous state laws.  Under such laws, we could be required to remove previously 
disposed wastes, including waste disposed of by prior owners or operators; remediate contaminated property, including groundwater 
contamination, whether from prior owners or operators or other historic activities or spills; or perform remedial operations to prevent 
future contamination.  We are not currently a potentially responsible party in any federal or state Superfund site remediation and there 
are no current, pending or anticipated Superfund response or remedial activities at or implicating our facilities or operations. 

Air Emissions  

The federal Clean Air Act, and comparable state laws, regulate emissions of air pollutants from various industrial sources, 

including natural gas processing plants and compressor stations, and also impose various emission limits, operational limits and 
monitoring, reporting and recordkeeping requirements on air emission sources.  Failure to comply with these requirements could result 
in monetary penalties, injunctions, conditions or restrictions on operations, and potentially criminal enforcement actions.  These laws 
are frequently subject to change.  For example, in October 2015, the EPA lowered the National Ambient Air Quality Standard, or 
NAAQS, for ozone from 75 to 70 parts per billion, and completed attainment/non-attainment designations in July 2018.  State 
implementation of the revised NAAQS could result in stricter permitting requirements, delay or prohibit our ability to obtain such 
permits, and result in increased expenditures for pollution control equipment, the costs of which could be significant.  Applicable laws 
and regulations require pre- construction permits for the construction or modification of certain projects or facilities with the potential 
to emit air emissions above certain thresholds.  These pre-construction permits generally require use of best available control 
technology, or BACT, to limit air emissions.  In addition, in June 2016, the EPA finalized rules under the federal Clean Air Act 
regarding criteria for aggregating multiple sites into a single source for air-quality permitting purposes applicable to the oil and gas 
industry.  This rule could cause small facilities (such as tank batteries and compressor stations), on an aggregate basis, to be deemed a 
major source, thereby triggering more stringent air permitting requirements, which in turn could result in operational delays or require 
us to install costly pollution control equipment.  Several EPA new source performance standards, or NSPS, and national emission 
standards for hazardous air pollutants, or NESHAP, also apply to our facilities and operations.  These NSPS and NESHAP standards 
(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:3)(cid:72)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:68)(cid:76)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:85)(cid:71)(cid:78)(cid:72)(cid:72)(cid:83)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:68)ffected 
(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:179)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:180)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:55)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)(cid:57)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:72)(cid:85)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)
impose semi-annual reporting requirements.  

16 

 
 
Water Discharges  

The Federal Water Pollution Control Act, or the Clean Water Act, and comparable state laws impose restrictions and strict 
controls regarding the discharge of pollutants, including produced waters and other oil and natural gas wastes, into federal and state 
waters.  The discharge of pollutants into regulated waters is prohibited, except in accordance with the terms of a permit issued by the 
EPA or the state.  The discharge of dredge and fill material in regulated waters, including wetlands, is also prohibited, unless 
authorized by a permit issued by the U.S. Army Corps of Engineers.  These laws and any implementing regulations provide for 
administrative, civil, and criminal penalties for any unauthorized discharges of oil and other substances in reportable quantities and 
may impose substantial potential liability for the costs of removal, remediation, and damages.  In September 2015, the EPA and U.S. 
(cid:36)(cid:85)(cid:80)(cid:92)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:81)(cid:74)(cid:76)(cid:81)(cid:72)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:86)(cid:182)(cid:3)(cid:77)(cid:88)(cid:85)(cid:76)(cid:86)(cid:71)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:17)S. (the 
(cid:179)(cid:58)(cid:50)(cid:55)(cid:56)(cid:54)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:79)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:50)TUS rule followed, and the WOTUS rule was stayed nationwide in October 2015 
pending resolution of the court challenges. In January 2018, the U.S. Supreme Court determined that federal district courts have 
jurisdiction to review the WOTUS rule; consequently, the previously filed district court cases have been allowed to proceed, resulting 
in a patchwork of implementation in 22 states (including Pennsylvania and Ohio), the District of Columbia, and the U.S. territories, 
and a stay of the rule in 28 states (including West Virginia).  On December 11, 2018, the EPA and the Corps proposed a new rule that 
would narrow federal jurisdictional reach compared to the WOTUS rule. Several environmental groups have signaled their intent to 
challenge the proposed rule. As a result of these developments, future implementation of the WOTUS rule or any new rule is uncertain 
(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:17)(cid:3)(cid:55)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:50)(cid:55)(cid:56)(cid:54)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:58)(cid:36)(cid:182)(cid:86)(cid:3)(cid:77)(cid:88)(cid:85)(cid:76)(cid:86)(cid:71)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:90)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:90)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:73)(cid:68)ce 
increased costs and delays with respect to obtaining permits for dredge and fill activities in wetland areas.   

Pursuant to these laws and regulations, we may be required to obtain and maintain approvals or permits for the discharge of 

wastewater or storm water and are required to develop and implement spill prevention, control and countermeasure plans, also referred 
(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:54)(cid:51)(cid:38)(cid:38)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:86)(cid:15)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:82)(cid:81)-site storage of significant quantities of oil.  These laws and regulations provide for 
administrative, civil, and criminal penalties for any discharges not authorized by the permit and may impose substantial potential 
liability for the costs of removal, remediation, and damages.  We believe that compliance with such permits will not have a material 
adverse effect on our business operations. 

Occupational Safety and Health Act  

We are also subject to the requirements of the federal Occupational Safety and Health Act, as amended, or OSHA, and 

comparable state laws that regulate the protection of the health and safety of employees.  In (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:50)(cid:54)(cid:43)(cid:36)(cid:182)(cid:86)(cid:3)(cid:75)(cid:68)(cid:93)(cid:68)(cid:85)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:88)(cid:81)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
standard, the Emergency Planning and Community Right to Know Act and implementing regulations and similar state statutes and 
regulations require that information be maintained about hazardous materials used or produced in our operations and that this 
information be provided to employees, state and local government authorities and citizens.  We do not believe that compliance with 
worker health and safety requirements will have a material adverse effect on our business or operations. 

Endangered Species  

The Endangered Species Act, or ESA, and analogous state laws restrict activities that may affect endangered or threatened 
species or their habitats.  The designation of previously unprotected species as threatened or endangered in areas where underlying 
property operations are conducted could cause us to incur increased costs arising from species protection measures or could result in 
limitations on our operating activities that could have an adverse impact on our results of operations. 

Climate Change  

In response to findings that emissions of GHGs present an endangerment to public health and the environment, the EPA has 

adopted regulations under existing provisions of the federal Clean Air Act, that, among other things, establish Prevention of 
Significant Deterioration, or PSD, pre-construction permits, and Title V operating permits for GHG emissions from certain large 
stationary sources that are already potential major sources of criteria pollutant emissions regulated under the statute.  Under these 
regulations, facilities required to obtain PSD permits must meet BACT standards for their GHG emissions established by the states or, 
in some cases, by the EPA, for those emissions.  The EPA has also adopted rules requiring the monitoring and reporting of GHG 
emissions from specified sources in the United States, including, among others, certain onshore oil and natural gas processing and 
fractionating facilities.  In June 2016, the EPA finalized new regulations, known as Subpart OOOOa, that set emissions standards for 
methane and volatile organic compounds from new and modified oil and natural gas production and natural gas processing and 
transmission facilities.  In June 2017, the EPA proposed to delay implementation of these requirements for two years, but in July 
2017, the U.S. Court of Appeals for the District of Columbia Circuit ruled that such a stay was unlawful.  In September 2018, the EPA 
(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:91)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:88)(cid:74)(cid:76)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:80)(cid:76)(cid:86)(cid:86)ions requirements, pneumatic pump standards, 

17 

 
 
 
 
and closed vent system certification requirements, among other changes.  Various industry and environmental groups separately 
(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3)(cid:69)(cid:82)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:68)(cid:81)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:68)(cid:87)(cid:87)(cid:72)(cid:80)(cid:83)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:79)(cid:68)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)on of the rule.  In addition, in April 2018, 
several states filed a lawsuit that seeks to compel the EPA to issue methane performance standards for existing sources in the oil and 
natural gas source category.  As a result of these developments, future implementation of the 2016 standards is uncertain at this time.  
However, given the long-term trend toward increasing regulation, future federal GHG regulations of the oil and gas industry remain a 
possibility, and several states have separately imposed their own regulations on methane emissions from oil and gas production 
activities.  These rules (and any additional regulations) could impose new compliance costs and permitting burdens on natural gas 
operations.   

While Congress has from time to time considered legislation to reduce emissions of GHGs, there has not been significant 

activity in the form of federal legislation in recent years.  Although it is not possible at this time to predict how any new legislation or 
regulations that may be adopted to address GHG emissions would impact our business, any such future laws and regulations that limit 
or otherwise address emissions of GHGs could adversely affect demand for the oil and natural gas that exploration and production 
operators produce, some of whom are our customers, which could thereby reduce demand for our midstream services.  

In addition, the United States (along with numerous other nations) agreed to the Paris Agreement on climate change in 

December 2015, which calls for signatory countries to set their own GHG emissions targets and be transparent about the measures 
each country will use to achieve its GHG emissions targets. The Paris Agreement entered into force in November 2016, however, in 
August 2017, the U.S. State Department officially informed t(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:49)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:71)(cid:85)(cid:68)(cid:90)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:76)(cid:86)(cid:3)
Agreement to seek negotiations either to re-enter the Paris Agreement on different terms or to establish a new framework agreement.  
The Paris Agreement provides for a four-year exit process beginning when it took effect in November 2016, which would result in an 
(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:91)(cid:76)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:82)(cid:89)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:71)(cid:75)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:76)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:18)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)States 
may re-enter the Paris Agreement or a separately negotiated agreement are unclear at this time.   

Notwithstanding potential risks related to climate change, the International Energy Agency estimates that oil and gas will 
continue to represent a major share of global energy use through 2040, and other private sector studies project continued growth in 
demand for the next two decades.  However, recent activism directed at shifting funding away from companies with energy-related 
assets could result in limitations or restrictions on certain sources of funding for the energy sector.  Moreover, activist shareholders 
have introduced proposals that may seek to force companies to adopt aggressive emission reduction targets or to shift away from more 
carbon-intensive activities. While we cannot predict the outcomes of such proposals, they could ultimately make it more difficult to 
engage in exploration and production activities. 

(cid:41)(cid:76)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:76)(cid:87)(cid:3)(cid:86)(cid:75)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:70)(cid:76)(cid:72)(cid:81)(cid:87)(cid:76)(cid:86)(cid:87)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:42)(cid:43)(cid:42)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:68)(cid:85)(cid:87)(cid:75)(cid:182)(cid:86)(cid:3)
atmosphere may produce climate changes that have significant physical effects, such as increased frequency and severity of storms, 
droughts and floods and other climatic events; if any such effects were to occur, it is uncertain if they would have an adverse effect on 
our financial condition and operations. 

Although we have not experienced any material adverse effect from compliance with environmental requirements, there is no 

assurance that this will continue.  We did not have any material capital or other non-recurring expenditures in connection with 
complying with environmental laws or environmental remediation matters in 2018, nor do we anticipate that such expenditures will be 
material in 2019. 

Employees 

We do not have any employees.  The officers of our general partner and its subsidiaries and affiliates, who are also officers of 

Antero Resources, manage our operations and activities.  As of December 31, 2018, Antero Resources employed approximately 623 
people who provide support to our operations.  All of the employees required to conduct and support our operations are employed by 
Antero Resources.  Antero Resources considers its relations with its employees to be satisfactory.  Additionally, we have a 
secondment agreement whereby Antero Resources provides seconded employees to perform certain operational services with respect 
to our assets for a 20-(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:44)(cid:51)(cid:50)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:17)(cid:3) 

Legal Proceedings 

Our operations are subject to a variety of risks and disputes normally incident to our business.  As a result, we may, at any 

(cid:74)(cid:76)(cid:89)(cid:72)(cid:81)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:73)(cid:72)(cid:81)(cid:71)(cid:68)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:79)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:72)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:76)(cid:87)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:85)(cid:76)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) 3. 
(cid:47)(cid:76)(cid:87)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:180)(cid:3) 

18 

We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our 

insurance advisors and brokers, believe are reasonable and prudent.  We cannot, however, assure you that this insurance will be 
adequate to protect us from all material expenses related to potential future claims for personal and property damage or that these 
levels of insurance will be available in the future at economical prices. 

Address, Website and Availability of Public Filings  

Our principal executive offices are at 1615 Wynkoop Street, Denver, Colorado 80202.  Our telephone number is (303) 357-

7310.  Our website is located at www.anteromidstream.com. 

We make available free of charge our Annual Reports on Form 10-K, our Quarterly Reports on Form 10-Q, and our Current 

Reports on Form 8-K as soon as reasonably practicable after we file such material with, or furnish it to, the SEC.  These documents 
are located www.anteromidstream.com (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:3)(cid:79)(cid:76)(cid:81)(cid:78)(cid:17) 

Information on our website is not incorporated into this Annual Report on Form 10-K or our other filings with the SEC and is 

not a part of them. 

Item 1A.  Risk Factors   

Limited partner interests are inherently different from the capital stock of a corporation, although many of the business risks 

to which we are subject are similar to those that would be faced by a corporation engaged in a similar business.  Investors should 
carefully consider the following risk factors together with all of the other information included in this Annual Report of Form 10-K, 
including the matters addre(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:38)(cid:68)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:41)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)-(cid:47)(cid:82)(cid:82)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
in our common units. 

If any of the following risks were to occur, our business, financial condition, results of operations and cash available for 

distribution could be materially adversely affected.  

Risks Related to the Transactions 

We may incur substantial transaction-related costs in connection with the Transactions, and if the Transactions do not occur, 
we will not benefit from the expenses we have incurred in pursuit of the Transactions. 

We expect to incur substantial expenses in connection with completing the Transactions, including fees paid to legal, 
financial and accounting advisors, filing fees, proxy solicitation costs and printing costs.  Many of the expenses that will be incurred, 
by their nature, are difficult to estimate accurately at the present time.  The Transactions may not be completed.  If the Transactions 
are not completed, we will have incurred substantial expenses for which no ultimate benefit will have been received.  

We are subject to contractual interim operating restrictions while the proposed Transactions are pending, which could 
adversely affect our business and operations. 

Under the terms of the Simplification Agreement, we are subject to certain restrictions on the conduct of our business prior to 

completing the Transactions, which may adversely affect our ability to execute certain of our business strategies.  Such limitations 
could negatively affect our businesses and operations prior to the completion of the Transactions. 

We may be subject to class action lawsuits relating to the Transactions, which could materially adversely affect our business, 
financial condition and operating results. 

We and the directors and officers of our general partner may be subject to class action lawsuits relating to the Transactions 

and other additional lawsuits that may be filed.  Such litigation is very common in connection with acquisitions of public companies, 
regardless of any merits related to the underlying acquisition.  While we will evaluate and defend against any actions vigorously, the 
costs of the defense of such lawsuits and other effects of such litigation could have an adverse effect on our business, financial 
condition and operating results. 

One of the conditions to consummating the Transactions is that no injunction or other order prohibiting or otherwise 
preventing the consummation of the Transactions shall have been issued by any court or governmental entity of competent jurisdiction 
in the United States.  Consequently, if any lawsuit is filed challenging the Transactions and is successful in obtaining an injunction 
preventing the parties to the Simplification Agreement from consummating the Transactions, such injunction may prevent the 

19 

 
 
 
Transactions from being completed in the expected timeframe, or at all. 

Failure to complete, or significant delays in completing, the Transactions could negatively affect the trading prices of our 
common units and our future business and financial results. 

Completion of the Transactions is not assured and is subject to risks, including the risks that approval of the Transactions by 

(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:69)(cid:92)(cid:3)(cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:74)(cid:72)(cid:81)(cid:70)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:82)(cid:69)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86) are not 
satisfied.  If the Transactions are not completed, or if there are significant delays in completing the Transactions, the trading price of 
our common units and our future business and financial results could be negatively affected, and we will be subject to several risks, 
including the following: 

(cid:120)  we may be liable for damages to other parties under the terms and conditions of the Simplification Agreement; 

(cid:120) 

(cid:120) 

(cid:120) 

negative reactions from the financial markets, including declines in the prices of our common units due to the fact that 
current prices may reflect a market assumption that the Transactions will be completed; 

having to pay certain significant costs relating to the Transactions; and 

the attention of our management will have been diverted to the Transactions rather than our own operations and pursuit 
of other opportunities that could have been beneficial to us. 

Risks Related to Our Business 

Because substantially all of our revenue is derived from Antero Resources, any development that materially and adversely 
(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:85)(cid:72)(cid:83)(cid:88)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)
us. 

Antero Resources is our most significant customer and has accounted for substantially all of our revenue since inception, and 

we expect to derive most of our revenues from Antero Resources.  As a result, any event, whether in our area of operations or 
(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:90)(cid:76)(cid:86)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:70)(cid:75)(cid:72)(cid:71)(cid:88)(cid:79)(cid:72)(cid:15)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)rage, 
market reputation, liquidity, results of operations or cash flows may adversely affect our revenues and cash available for distribution.  
Accordingly, we are indirectly subject to the business risks of Antero Resources, including, among others: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

a r(cid:72)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:86)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)
demand for our gathering and compression services and our water handling and treatment services; 

(cid:68)(cid:3)(cid:85)(cid:72)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:86)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)l completions, which would directly and adversely impact demand for 
our water handling and treatment services; 

(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:82)(cid:79)(cid:68)(cid:87)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:81)(cid:72)(cid:74)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
properties, its drilling programs or its ability to finance its operations; 

(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:3)(cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)
as to fund our capital expenditure programs; 

(cid:120)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)place reserves; 

(cid:120)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:81)(cid:89)(cid:76)(cid:85)(cid:82)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:30) 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

transportation and processing capacity constraints and interruptions; 

adverse effects of governmental and environmental regulation; and 

losses from pending or future litigation. 

In late 2014, global energy commodity prices declined precipitously as a result of several factors, including an increase in 
worldwide commodity supplies, a stronger U.S. dollar, relatively mild weather in large portions of the U.S., and strong competition 

20 

 
among some oil producing countries for market share.  While commodity prices have increased from the lows experienced in 2016, 
they remain very volatile and substantially less than the highs seen in 2014.  

Changes (cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:71)(cid:76)(cid:87)(cid:92)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:70)(cid:68)(cid:81)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)

capital resources, liquidity, and expected operating results.  Because of the natural decline in production from existing wells, our 
succes(cid:86)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:15)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:83)(cid:79)(cid:68)(cid:70)(cid:72)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:68)(cid:87)ural 
gas from Antero Resources or third parties.  Additionally, our water handling and treatment services are directly associated with 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:81)(cid:72)(cid:72)(cid:71)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:71)(cid:85)(cid:76)(cid:89)(cid:72)(cid:81)(cid:3)(cid:69)(cid:92)(cid:3)(cid:75)(cid:82)(cid:85)(cid:76)(cid:93)(cid:82)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:79)(cid:68)(cid:87)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:79)(cid:72)(cid:81)(cid:74)(cid:87)(cid:75)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)e number 
of completion stages per well.  Any decrease in volumes of natural gas and produced water that Antero Resources produces or any 
decrease in the number of wells that Antero Resources completes could adversely affect our business and operating results. 

Further, we are subject to the risk of non-payment or non-performance by Antero Resources, including with respect to our 

gathering and compression and water handling and treatment services agreements.  We cannot predict the extent to which Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:76)(cid:81)(cid:71)(cid:88)(cid:86)(cid:87)(cid:85)(cid:92)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:76)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:81)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:81)(cid:3)(cid:90)(cid:72)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)
conditio(cid:81)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:72)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)
and compression and water handling and treatment services agreements.  Any material non-payment or non-performance by Antero 
Resources could reduce our ability to make distributions to our unitholders. 

Also, due to our relationship with Antero Resources, our ability to access the capital markets, or the pricing or other terms of 

any capital markets transactions, may be adversely affected (cid:69)(cid:92)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:76)(cid:85)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:3)
changes in its credit ratings. 

Any material limitation on our ability to access capital as a result of such adverse changes at Antero Resources could limit 

our ability to obtain future financing under favorable terms, or at all, or could result in increased financing costs in the future.  
Similarly, material adverse changes at Antero Resources could negatively impact our unit price, limiting our ability to raise capital 
through equity issuances or debt financing, or could negatively affect our ability to engage in, expand, or pursue our business 
activities, and could also prevent us from engaging in certain transactions that might otherwise be considered beneficial to us. 

Please see Item (cid:20)(cid:36)(cid:15)(cid:3)(cid:179)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:20)(cid:19)-K for the year ended December 31, 

2018 (which is not, and shall not be deemed to be, incorporated by reference herein) for a full disclosure of the risks associated with 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:69)(cid:88)(cid:86)iness. 

We may not generate sufficient cash from operations following the establishment of cash reserves and payment of fees and 
expenses, including cost reimbursements to our general partner, to enable us to pay the minimum quarterly distribution to our 
unitholders. 

In order to make our minimum quarterly distribution of $0.17 per common unit per quarter, or $0.68 per unit per year, we 
will require available cash of approximately $32 million per quarter, or approximately $127 million per year based on the common 
units outstanding at December 31, 2018, as well as grants made under the Antero Midstream Partners LP Long-term Incentive Plan.  
We may not generate sufficient cash flows each quarter to support the payment of the minimum quarterly distribution or to increase 
our quarterly distributions in the future from the fourth quarter of 2018 level of $0.47 per unit. 

The amount of cash we can distribute on our units principally depends upon the amount of cash we generate from our 

operations, which will fluctuate from quarter to quarter based on, among other things: 

(cid:120)(cid:3)

(cid:120)(cid:3)

the volume of natural gas we gather and compress and the volume of water we handle and treat in connection with well 
completion operations; 

the rates we charge third parties, if any, for our water handling and treatment and gathering and compression services; 

(cid:120)(cid:3) (cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:70)(cid:75)(cid:72)(cid:71)(cid:88)(cid:79)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:71)(cid:3)

volumes; 

(cid:120)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:30) 

(cid:120)(cid:3)

adverse weather conditions; 

21 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

the level of our operating, maintenance and general and administrative costs; 

regulatory action affecting the supply of, or demand for, natural gas, the rates we can charge for our services, how we 
contract for services, our existing contract, our operating costs or our operating flexibility; and 

prevailing economic conditions. 

In addition, the actual amount of cash we will have available for distribution will depend on other factors, including: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

the level and timing of maintenance and expansion capital expenditures we make; 

our debt service requirements and other liabilities; 

our ability to borrow under our debt agreements to pay distributions; 

fluctuations in our working capital needs; 

restrictions on distributions contained in any of our debt agreements; 

the cost of acquisitions, if any; 

fees and expenses of our general partner and its affiliates (including Antero Resources) we are required to reimburse; 

the amount of cash reserves established by our general partner; and 

other business risks affecting our cash levels. 

(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:15)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)to 
replace declining production and our ability to secure new sources of natural gas from Antero Resources or third parties.  
(cid:36)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
activities and water needs, which are partially driven by horizontal lateral lengths and the number of completion stages per 
well.  Finally, under certain circumstances, Antero Resources may dispose of acreage dedicated to us free from such 
dedication without our consent.  Any decrease in volumes of natural gas that Antero Resources produces, any decrease in the 
number of wells that Antero Resources completes, or any decrease in the number of acres that are dedicated to us could 
adversely affect our business and operating results. 

The natural gas volumes that support our gathering business depend on the level of production from natural gas wells 

connected to our systems, which may be less than expected and will naturally decline over time.  To the extent Antero Resources 
reduces its development activity or otherwise ceases to drill and complete wells, revenues for our gathering and compression and 
water handling and treatment services will be directly and adversely affected.  Our ability to maintain water handling and treatment 
services revenues is substantially dependent on continued completion activity by Antero Resources or third parties over time, as well 
as the volumes of produced water from such activity.  In addition, natural gas volumes from completed wells will naturally decline 
and our cash flows associated with these wells will also decline over time.  In order to maintain or increase throughput levels on our 
gathering systems, we must obtain new sources of natural gas from Antero Resources or third parties.  The primary factors affecting 
our ability to obtain additional sources (cid:82)(cid:73)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:69)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:73)(cid:85)om third 
parties.  Demand for our fresh water delivery services, which make up a substantial portion of our water handling and treatment 
(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:72)sh water 
delivery customers complete wells with shorter lateral lengths or use less water in their completions, the demand for our fresh water 
delivery services would be reduced. 

(cid:58)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:81)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92) in our areas of 
operation, the amount of reserves associated with wells connected to our systems or the rate at which production from a well declines.  
In addition, our water handling and treatment business is dependent upon active development in our areas of operation.  In order to 
maintain or increase throughput levels on our water handling and treatment systems, we must service new wells.  We have no control 
over Antero Resources or other producers or their development plan decisions, which are affected by, among other things: 

22 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

the availability and cost of capital; 

prevailing and projected natural gas, NGLs and oil prices; 

demand for natural gas, NGLs and oil; 

quantities of reserves; 

geologic considerations; 

environmental or other governmental regulations, including the availability of drilling permits and the regulation of 
hydraulic fracturing; and 

the costs of producing the gas and the availability and costs of drilling rigs and other equipment. 

Natural gas prices are affected by storage levels, weather, and production levels.  In late 2014, natural gas prices in the US 

declined as a result of several factors including increased production by producers.  Although prices have recovered periodically since 
then with spikes in January 2018 and November 2018, prices remain below pre-2014 levels for natural gas.  NGL prices have 
generally fluctuated along with oil prices.  Oil prices in 2014 precipitously declined in 2014 from approximately $100 per BBL to 
under $30 per BBL in early 2016.  Oil prices have recovered periodically since then, reaching the mid $70 per BBL range in 2018, but 
then again declined in late 2018 to below $50 per BBL as production increases from the United States and other oil producing 
countries led to a return of market concern regarding increasing global oil stocks and potential future supply and demand 
imbalances.  Lower commodity prices reduce our revenues, profitability, and our ability to borrow.  We may be unable to obtain 
needed capital or financing on satisfactory ter(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:79)(cid:72)(cid:68)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)
depleted.  Lower commodity prices may also reduce the amount of natural gas, NGLs and oil that Antero Resources can produce 
economically. 

These lower prices have compelled most natural gas and oil producers, including Antero Resources, to reduce the level of 
exploration, drilling and production activity and 2019 capital budegets.  This will have a significant effect on our capital resources, 
liquidity and expected opera(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:49)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:44)(cid:73)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)
further, it could reduce our revenues and ability to pay distributions.  Sustained reductions in development or production activity in 
our areas of operation could lead to reduced utilization of our services.  

Due to these and other factors, even if reserves are known to exist in areas served by our assets, producers have chosen, and 

may choose in the future, not to develop those reserves.  If reductions in development activity result in our inability to maintain the 
current levels of throughput on our systems, or our water handling and treatment services, or if reductions in lateral lengths or use less 
water in their completions result in a decrease in demand for our water handling and treatment services on a per well basis, those 
reductions could reduce our revenue and cash flows and adversely affect our ability to make cash distributions to our unitholders. 

Finally, each of the gathering and compression agreement, water services agreement and right of first offer agreement 

between us and Antero Resources permit Antero Resources to sell, transfer, convey, assign, grant, or otherwise dispose of dedicated 
properties free of the dedication under such agreements, provided that the number of net acres of dedicated properties so disposed of, 
when added to the number of net acres of dedicated properties previously disposed of free of the dedication since the respective 
effective dates of the agreements, does not exceed the aggregate number of net acres of dedicated properties acquired by Antero 
Resources since such effective dates.  Accordingly, under certain circumstances, Antero Resources may dispose of a significant 
number of net acres of dedicated properties free from dedication without our consent, and we have no control over the timing or extent 
of such dispositions.  Any such dispositions could adversely affect our business and operating results. 

The gathering and compression agreement only includes minimum volume commitments under certain circumstances. 

The gathering and compression agreement includes minimum volume commitments only on new high pressure pipelines and 

compressor stations that we construct subsequent to our initial public offering in Novemb(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:3)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:72)(cid:86)(cid:87)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)
high pressure pipelines and compressor stations that existed prior to our initial public offering are not supported by minimum volume 
commitments from Antero Resources.  Any decrease in the current levels of throughput on our gathering and compression systems 
could reduce our revenue and cash flows and adversely affect our ability to make cash distributions to our unitholders. 

23 

We will be required to make substantial capital expenditures to increase our asset base.  If we are unable to obtain needed 
capital or financing on satisfactory terms, our ability to make cash distributions may be diminished or our financial leverage 
could increase. 

In order to increase our asset base, we will need to make expansion capital expenditures.  If we do not make sufficient or 
effective expansion capital expenditures, we will be unable to expand our business operations and, as a result, we will be unable to 
raise the level of our future cash distributions.  To fund our expansion capital expenditures and investment capital expenditures, we 
will be required to use cash from our operations or incur borrowings.  Alternatively, we may sell additional common units or other 
securities to fund our capital expenditures.  Such uses of cash from our operations will reduce cash available for distribution to our 
unitholders.  Our ability to obtain bank financing or our ability to access the capital markets for future equity or debt offerings may be 
(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)tion at the time of any such financing or offering and the covenants in our existing 
debt agreements, as well as by general economic conditions, contingencies and uncertainties that are beyond our control.  Even if we 
are successful in obtaining the necessary funds, the terms of such financings could limit our ability to pay distributions to our 
unitholders.  In addition, incurring additional debt may significantly increase our interest expense and financial leverage, and issuing 
additional limited partner interests may result in significant unitholder dilution and would increase the aggregate amount of cash 
required to maintain the then current distribution rate, which could materially decrease our ability to pay distributions at the prevailing 
distribution rate.  Neither Antero Resources, our general partner or any of their respective Affiliates is committed to providing any 
direct or indirect support to fund our growth. 

Our gathering and compression and water handling and treatment systems are concentrated in the Appalachian Basin, 
making us vulnerable to risks associated with operating in one major geographic area. 

We rely primarily on revenues generated from gathering and compression and water handling and treatment systems that we 
own, which are located in the Marcellus and Utica Shales.  As a result of this concentration, we may be disproportionately exposed to 
the impact of regional supply and demand factors, delays or interruptions of production from wells in this area caused by 
governmental regulation, market limitations or interruption of the compression, processing or transportation of natural gas, NGLs or 
oil. 

The amount of cash we have available for distribution to our unitholders depends primarily on our cash flows and not solely 
on profitability, which may prevent us from making distributions, even during periods in which we record net income. 

The amount of cash we have available for distribution depends primarily upon our cash flows and not solely on profitability, 

which will be affected by non-cash items.  As a result, we may make cash distributions during periods when we record a net loss for 
financial accounting purposes, and conversely, we might fail to make cash distributions during periods when we record net income for 
financial accounting purposes. 

Our construction or purchase of new gathering and compression, processing, water handling and treatment or other assets 
may not be completed on schedule, at the budgeted cost or at all, may not operate as designed or at the expected levels, may 
not result in revenue increases and may be subject to regulatory, environmental, political, legal and economic risks, all of 
which could adversely affect our cash flows, results of operations and financial condition and, as a result, our ability to 
distribute cash to our unitholders. 

The construction of additions or modifications to our existing systems and the construction or purchase of new assets, 
involves numerous regulatory, environmental, political and legal uncertainties beyond our control and may require the expenditure of 
significant amounts of capital.  Financing may not be available on economically acceptable terms or at all.  If we undertake these 
projects, we may not be able to complete them on schedule, at the budgeted cost or at all, or they may not operate as designed or at the 
expected levels.  Moreover, our revenues may not increase immediately upon the expenditure of funds on a particular project.  For 
instance, the construction of our water treatment facility took longer than planned and to date, the facility has run at reduced operating 
rates below the designed capacity and therefore not met certain completion milestones under the terms of the construction contract.  In 
addition, we may construct facilities to capture anticipated future production growth in an area in which such growth does not 
materialize.  As a result, new gathering and compression, water handling and treatment or other assets may not be able to attract 
enough throughput to achieve our expected investment return, which could adversely affect our results of operations and financial 
condition.  In addition, the construction of additions to our existing assets may require us to obtain new rights-of-way prior to 
constructing new pipelines or facilities.  We may be unable to timely obtain such rights-of-way to connect new natural gas supplies to 
our existing gathering pipelines or capitalize on other attractive expansion opportunities.  Additionally, it may become more expensive 
for us to obtain new rights-of-way or to expand or renew existing rights-of-way.  If the cost of renewing or obtaining new rights-of-
way increases, our cash flows could be adversely affected. 

24 

We may be unable to make attractive acquisitions or successfully integrate acquired businesses, and any inability to do so may 
disrupt our business and hinder our ability to grow. 

In the future, we may make acquisitions of businesses that complement or expand our current business.  We may not be able 

to identify attractive acquisition opportunities.  Even if we do identify attractive acquisition opportunities, we may not be able to 
complete the acquisition or do so on commercially acceptable terms. 

The success of any completed acquisition will depend on our ability to effectively integrate the acquired business into our 

existing operations.  The process of integrating acquired businesses may involve unforeseen difficulties and may require a 
disproportionate amount of our managerial and financial resources.  In addition, possible future acquisitions may be larger and for 
purchase prices significantly higher than those paid for earlier acquisitions.  No assurance can be given that we will be able to identify 
suitable acquisition opportunities, negotiate acceptable terms, obtain financing for acquisitions on acceptable terms or successfully 
acquire identified targets.  Our failure to achieve consolidation savings, to integrate the acquired businesses and assets into our 
existing operations successfully or to minimize any unforeseen operational difficulties could have a material adverse effect on our 
business, results of operations and financial condition and, as a result, our ability to make cash distributions to our unitholders. 

In addition, our revolving credit facility and the indenture governing our senior notes impose certain limitations on our ability 
to enter into mergers or combination transactions.  Our revolving credit facility and the indenture governing our senior notes also limit 
our ability to incur certain indebtedness, which could indirectly limit our ability to engage in acquisitions of businesses. 

We own a 50% interest in the Joint Venture, which is operated by MarkWest Energy.  While we have the ability to influence 
certain business decisions affecting the Joint Venture, the success of our investment in the Joint Venture will depend on 
(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17) 

On February 6, 2017, we entered into the Joint Venture with MarkWest.  While we and MarkWest each own a 50% interest 

in the Joint Venture, MarkWest is the primary operator of the Joint Venture.  Accordingly, we depend on MarkWest for the day-to-day 
(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:79)(cid:68)(cid:70)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:68)(cid:92)-to-day operations and the associated costs of 
operations could result in receiving lower cash distributions from the Joint Venture than currently anticipated, which could reduce our 
cash available for distribution to our unitholders.  In addition, differences in views among the owners of the Joint Venture could result 
in delayed decisions or in failures to agree on significant matters, potentially adversely affecting the business and results of operations 
or prospects of the Joint Venture and, in turn, the amount of cash from the Joint Venture operations distributed to us. 

If the Joint Venture is not successful or if the Joint Venture does not perform as expected, our future financial performance 
may be negatively impacted. 

We may be exposed to certain risks in connection with our ownership interest in the Joint Venture, including regulatory, 

environmental and litigation risks.  If such risks or other anticipated or unanticipated liabilities were to materialize, any desired 
benefits of our entry into the Joint Venture may not be fully realized, if at all, and its future financial performance may be negatively 
impacted. 

In addition, the Joint Venture may result in other difficulties including, among other things: 

(cid:120)(cid:3)

(cid:71)(cid:76)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:68)(cid:87)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:72)(cid:85)(cid:81)(cid:86)(cid:30) 

(cid:120)(cid:3) managing regulatory compliance and corporate governance matters; 

(cid:120)(cid:3)

(cid:120)(cid:3)

an increase in our indebtedness; and 

potential environmental or other regulatory compliance matters or liabilities and/or title issues, including certain 
liabilities arising from the operation of the Joint Venture assets prior to the closing of the Joint Venture. 

In(cid:87)(cid:72)(cid:85)(cid:85)(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
processing and water handling and treatment operations. 

The Joint Venture assets consist of processing plants in West Virginia and a one third interest in a fractionator in Ohio (the 

(cid:179)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:82)(cid:85)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:92)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:85)(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)ions.  
(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)ed by the Joint Venture, any significant interruption at these 
facilities would also adversely affect our midstream operations. 

25 

(cid:58)(cid:72)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:82)(cid:85)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

MarkWest fractionator could be partially or completely shut down, temporarily or permanently, as the result of circumstances not 
within its control, such as: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

unscheduled turnarounds or catastrophic events, including damages to facilities, related equipment and surrounding 
properties caused by earthquakes, tornadoes, hurricanes, floods, fires, severe weather, explosions and other natural 
disasters; 

restrictions imposed by governmental authorities or court proceedings; 

labor difficulties that result in a work stoppage or slowdown; 

(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:85)(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:79)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:30) 

(cid:71)(cid:76)(cid:86)(cid:85)(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:79)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:82)(cid:90)(cid:72)(cid:85)(cid:15)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:81)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:68)(cid:85)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:30) 

(cid:71)(cid:68)(cid:80)(cid:68)(cid:74)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:92)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

inadequate fractionation capacity or market access to support production volumes, including lack of availability of rail 
cars, barges, pipeline capacity, or market constraints, including reduced demand or limited markets for certain NGL 
products. 

(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:182)(cid:86)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:87)(cid:76)(cid:70)(cid:68)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:74)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:15)(cid:3)(cid:76)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)

possible that an interr(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:182)(cid:86)(cid:3)
facilities are located. 

(cid:44)(cid:73)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:87)(cid:68)(cid:78)(cid:72)(cid:68)(cid:90)(cid:68)(cid:92)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:77)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
c(cid:82)(cid:85)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:79)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:15)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:17) 

Antero Resources has secured sufficient long-term firm takeaway capacity in each of its core operating areas to accommodate 

its current development plans, including through major pipelines that are in existence or currently under construction and through 
third-party trucking services; however, any failure of any pipeline under construction to be completed, any unavailability of existing 
takeaway pipelines or the failure of any third party to perform under its service contracts, could cause Antero Resources to curtail its 
future development and production plans.  Sustained reductions in development or production activity in our areas of operation could 
lead to reduced demand for our services, which could adversely affect our operating margin, cash flows and ability to make cash 
distributions to our unitholders. 

Recent action and the possibility of future action on trade by U.S. and foreign governments has increased the costs of certain 
equipment and materials used in the construction of our assets and has created uncertainty in global markets, which may 
adversely affect our income from operations and cash flows. 

26 

The construction of gathering pipelines, compressor stations, processing and fractionation facilities and water handling and 

treatment assets is subject to construction cost overruns due to costs and availability of equipment and materials such as steel. If third 
party providers of steel products essential to our capital improvements and additions are unable to obtain raw materials, including 
steel, at historical prices, they may raise the price we pay for such products. On March 8, 2018, the President of the United States 
issued two proclamations directing the imposition of ad valorem tariffs of 25 percent on certain imported steel products and 10 percent 
on certain imported aluminum products, with limited exceptions. On May 31, 2018, the U.S. announced that it would also impose steel 
and aluminum tariffs on Canada, Mexico, and the 28 member countries of the European Union.  The Canada and Mexico tariffs are 
left in place under the revised free trade agreement reached in late 2018 among the United States, Canada, and Mexico, although the 
agreement has not yet been ratified.  In addition, Argentina, Australia, Brazil, and South Korea implemented measures to address the 
impairment to U.S. national security attributable to steel and aluminum imports that were deemed satisfactory to the United States. As 
a result, imports of steel and/or aluminum from these countries have been exempted from the imposition of tariff-based remedies, but, 
with the exception of Australia, the United States has implemented quantitative restrictions in the form of absolute quotas, meaning 
that imports in excess of the allotted quota will be disallowed.  Effective August 13, 2018, the United States announced that it would 
impose a 50 percent ad valorem tariff on steel articles imported from Turkey.  On August 29, 2018, the President authorized the 
Department of Commerce to provide targeted relief, in response to specific requests from affected domestic parties, from the steel 
and/or aluminum quotas on imports from South Korea, Brazil, and Argentina.  Following these proclamations, domestic prices for 
steel have risen and are expected to continue to rise. These price increases may result in increased costs associated with the continued 
build-out of our assets, as well as projects under development. Because we generate substantially all of our revenue under agreements 
with Antero Resources that provide for fixed-fee structures, we will generally be unable to pass these cost increases along to our 
customers, and our income from operations and cash flows may be adversely affected. 

A shortage of equipment and skilled labor in the Appalachian Basin could reduce equipment availability and labor 
productivity and increase labor costs, which could have a material adverse effect on our business and results of operations. 

Gathering and compression and water handling and treatment services require special equipment and laborers skilled in 

multiple disciplines, such as equipment operators, mechanics and engineers, among others.  The employees supporting our operations 
are employees of Antero Resources.  If Antero Resources experiences shortages of skilled labor or there is a lack of necessary 
equipment in the Appalachian Basin in the future, our allocation of labor costs and overall productivity could be materially and 
adversely affected.  If our allocation labor prices increase or if Antero Resources experiences materially increased health and benefit 
costs for employees, our results of operations could be materially and adversely affected. 

If third-party pipelines or other midstream facilities interconnected to our gathering and compression systems become 
partially or fully unavailable, our operating margin, cash flows and ability to make cash distributions to our unitholders could 
be adversely affected. 

Our gathering and compression assets connect to other pipelines or facilities owned and operated by unaffiliated third parties.  

The continuing operation of third-party pipelines, compressor stations and other midstream facilities is not within our control.  These 
pipelines, plants and other midstream facilities may become unavailable because of testing, turnarounds, line repair, maintenance, 
reduced operating pressure, lack of operating capacity, regulatory requirements and curtailments of receipt or deliveries due to 
insufficient capacity or because of damage from severe weather conditions or other operational issues.  In addition, if the costs to us to 
access and transport on these third-party pipelines significantly increase, our profitability could be reduced.  If any such increase in 
costs occurs or if any of these pipelines or other midstream facilities become unable to receive or transport natural gas, our operating 
margin, cash flows and ability to make cash distributions to our unitholders could be adversely affected. 

Our exposure to commodity price risk may change over time. 

We currently generate all of our revenues pursuant to fee-based contracts under which we are paid based on the volumes of 

natural gas that we gather and compress and water that we handle and treat, rather than the underlying value of the commodity.  
Consequently, our existing operations and cash flows have little direct exposure to commodity price risk.  Although we intend to enter 
into similar fee-based contracts with new customers in the future, our efforts to negotiate such contractual terms may not be 
successful.  In addition, we may acquire or develop additional midstream assets in a manner that increases our exposure to commodity 
price risk.  Future exposure to the volatility of natural gas, NGL and oil prices, especially in light of the recent declines, could have a 
material adverse effect on our business, results of operations and financial condition and, as a result, our ability to make cash 
distributions to our unitholders. 

27 

Restrictions in our existing and future debt agreements could adversely affect our business, financial condition, results of 
operations and ability to make quarterly cash distributions to our unitholders. 

Our revolving credit facility limits our ability to, among other things: 

(cid:120)(cid:3)

(cid:120)(cid:3)

incur or guarantee additional debt; 

redeem or repurchase units or make distributions under certain circumstances; 

(cid:120)(cid:3) make certain investments and acquisitions; 

(cid:120)(cid:3)

(cid:120)(cid:3)

incur certain liens or permit them to exist; 

enter into certain types of transactions with affiliates; 

(cid:120)(cid:3) merge or consolidate with another company; and 

(cid:120)(cid:3)

transfer, sell or otherwise dispose of assets. 

The indenture governing our senior notes contains similar restrictive covenants.  In addition, our revolving credit facility also 
contains covenants requiring us to maintain certain financial ratios.  Our ability to meet those financial ratios and tests can be affected 
by events beyond our control, and we cannot assure you that we will meet any such ratios and tests.  Additionally, we may not be able 
to borrow the full amount of commitments under our revolving credit facility if doing so would cause us to not meet a financial 
covenant. 

The provisions of our revolving credit facility and the indenture governing our senior notes may affect our ability to obtain 
future financing and pursue attractive business opportunities and our flexibility in planning for, and reacting to, changes in business 
conditions.  In addition, a failure to comply with the provisions of our revolving credit facility or the indenture governing our senior 
notes could result in a default or an event of default that could enable our lenders or noteholders to declare the outstanding principal of 
that debt, together with accrued and unpaid interest, to be immediately due and payable.  If the payment of our debt is accelerated, our 
assets may be insufficient to repay such debt in full, and our unitholders could experience a partial or total loss of their investment.  
(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:26)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)on and Analysis of Financial Condition and Results of Operations(cid:178)Liquidity and 
(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:180) 

If our assets become subject to FERC regulation or federal, state or local regulations or policies change, or if we fail to comply 
with market behavior rules, our financial condition, results of operations and cash flows could be materially and adversely 
affected. 

Our gathering and transportation operations are exempt from regulation by the FERC, under the NGA.  Section 1(b) of the 
NGA, exempts natural gas gathering facilities from regulation by the FERC under the NGA.  Although the FERC has not made any 
formal determinations with respect to any of our facilities, we believe that the natural gas pipelines in our gathering systems meet the 
traditional tests the FERC has used to establish whether a pipeline is a gathering pipeline not subject to FERC jurisdiction.  The 
distinction between FERC- regulated transmission services and federally unregulated gathering services, however, has been the 
subject of substantial litigation, and the FERC determines whether facilities are gathering facilities on a case-by-case basis, so the 
classification and regulation of our gathering facilities may be subject to change based on future determinations by the FERC, the 
courts, or Congress.  If the FERC were to consider the status of an individual facility and determine that the facility or services 
provided by it are not exempt from FERC regulation under the NGA, the rates for, and terms and conditions of, services provided by 
such facility would be subject to regulation by the FERC under the NGA or the NGPA.  Such regulation could decrease revenue, 
increase operating costs, and, depending upon the facility in question, could adversely affect our results of operations and cash flows. 

State regulation of natural gas gathering facilities and intrastate transportation pipelines generally includes various safety, 

environmental and, in some circumstances, nondiscriminatory take and common purchaser requirements, as well as complaint-based 
rate regulation.  Other state regulations may not directly apply to our business, but may nonetheless affect the availability of natural 
gas for purchase, compression and sale. 

Moreover, FERC regulations indirectly impact our businesses and the markets for products derived from these businesses.  

(cid:55)(cid:75)(cid:72)(cid:3)(cid:41)(cid:40)(cid:53)(cid:38)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:91)(cid:68)(cid:80)(cid:83)(cid:79)(cid:72)(cid:15)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)cies on open 

28 

access transportation, market manipulation, ratemaking, gas quality, capacity release and market center promotion, indirectly affect 
the intrastate natural gas market.  Should we fail to comply with any applicable FERC administered statutes, rules, regulations and 
orders, we could be subject to substantial penalties and fines, which could have a material adverse effect on our results of operations 
and cash flows.  The FERC has civil penalty authority under the NGA and NGPA to impose penalties for current violations of up to 
$1,265,500 per day for each violation and disgorgement of profits associated with any violation. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:178)Regulation of 

(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180) 

Increased regulation of hydraulic fracturing could result in reductions or delays in natural gas, NGLs and oil production by 
our customers, which could reduce the throughput on our gathering and compression systems and the number of wells for 
which we provide water handling and treatment services, which could adversely impact our revenues. 

(cid:36)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:88)(cid:81)(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)

formations.  These reservoirs require hydraulic fracturing completion processes to release the liquids and natural gas from the rock so 
it can flow through casing to the surface.  Hydraulic fracturing is a well stimulation process that utilizes large volumes of water and 
sand (or other proppant) combined with fracturing chemical additives that are pumped at high pressure to crack open previously 
impenetrable rock to release hydrocarbons.  Hydraulic fracturing is typically regulated by state oil and gas commissions and similar 
agencies, but the EPA has asserted federal regulatory authority pursuant to the SDWA over certain hydraulic fracturing activities 
involving the use of diesel fuels and issued permitting guidance in February 2014 regarding such activities. Also, in May 2014, the 
EPA proposed rules under the Toxic Substances Control Act to require companies to disclose information regarding the chemicals 
used in hydraulic fracturing; however, to date, no further action has been taken on the proposal.  In addition, the EPA finalized rules in 
June 2016 that prohibit the discharge of wastewater from hydraulic fracturing operations to publicly owned wastewater treatment 
plants. 

Certain governmental reviews have been conducted or are underway that focus on environmental aspects of hydraulic 
fracturing practices.  For example, in December 2016, the EPA released its final report on the potential impacts of hydraulic fracturing 
(cid:82)(cid:81)(cid:3)(cid:71)(cid:85)(cid:76)(cid:81)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:179)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:70)(cid:92)(cid:70)(cid:79)(cid:72)(cid:180)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:75)(cid:92)(cid:71)(cid:85)(cid:68)(cid:88)(cid:79)(cid:76)(cid:70)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)ay impact 
(cid:71)(cid:85)(cid:76)(cid:81)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:179)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:86)(cid:82)(cid:80)(cid:72)(cid:3)(cid:70)(cid:76)(cid:85)(cid:70)(cid:88)(cid:80)(cid:86)(cid:87)(cid:68)(cid:81)(cid:70)(cid:72)(cid:86)(cid:15)(cid:180)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:75)(cid:92)(cid:71)(cid:85)(cid:68)(cid:88)(cid:79)(cid:76)(cid:70)(cid:3)(cid:73)(cid:85)(cid:68)cturing water cycle activities and local- 
or regional-scale factors are more likely than others to result in more frequent or more severe impacts: water withdrawals for 
fracturing in times or areas of low water availability; surface spills during the management of fracturing fluids, chemicals or produced 
water; injection of fracturing fluids into wells with inadequate mechanical integrity; injection of fracturing fluids directly into 
groundwater resources; discharge of inadequately treated fracturing wastewater to surface waters; and disposal or storage of fracturing 
wastewater in unlined pits.  Because the report did not find a direct link between hydraulic fracturing itself and contamination of 
groundwater resources, this years-long study report does not appear to provide any basis for further regulation of hydraulic fracturing 
at the federal level.   

In addition, Congress has from time to time considered legislation to provide for federal regulation of hydraulic fracturing 

under the SDWA and to require disclosure of the chemicals used in the hydraulic fracturing process.  At the state level, several states 
have adopted or are considering legal requirements that could impose more stringent permitting, disclosure, and well construction 
requirements on hydraulic fracturing activities.  At the state level, several states have adopted or are considering adopting regulations 
that could impose more stringent disclosure and/or well construction requirements on hydraulic fracturing operations.  For example, in 
July 2015, the Ohio Department of Natural Resources issued final rules for horizontal drilling well-pad construction.  The Ohio 
legislature has also adopted laws requiring oil and natural gas operators to disclose chemical ingredients used to hydraulically fracture 
wells and to conduct pre-drilling baseline water quality sampling of certain water wells near a proposed horizontal well. Local 
governments also may seek to adopt ordinances within their jurisdictions regulating the time, place and manner of drilling activities in 
general or hydraulic fracturing activities in particular. 

Antero Midstream cannot predict whether any such legislation will ever be enacted and if so, what its provisions would be.  If 
additional levels of regulation and permits were required through the adoption of new laws and regulations at the federal, state or local 
level, that could lead to delays, increased operating costs and process prohibitions that could reduce the volumes of liquids and natural 
gas that move through our gathering systems or reduce the number of wells drilled and completed that require fresh water for 
hydraulic fracturing activities, which in turn could materially adversely affect our revenues and results of operations. 

29 

(cid:50)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)ially those using hydraulic fracturing, are substantially dependent on the 
availability of water.  Restrictions on the ability to obtain water may incentivize water recycling efforts by oil and natural gas 
producers, which would decrease the demand for our fresh water delivery services. 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:85)(cid:72)(cid:86)(cid:75)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:88)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:49)(cid:42)(cid:47)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)

activities.  Water is an essential component of natural gas, NGL and oil production during the drilling, and in particular, the hydraulic 
fracturing process.  We depend on Antero Resources to source the fresh water we deliver.  The availability of Antero Resource(cid:86)(cid:182)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)
supply may be limited due to reasons such as prolonged drought.  Some state and local governmental authorities have begun 
restricting the use of water subject to their jurisdiction for hydraulic fracturing to ensure adequate local water supply.  Any such 
decrease in the demand for water handling and treatment services would adversely affect our business and results of operations. 

We or any third-party customers may incur significant liability under, or costs and expenditures to comply with, 
environmental and occupational health and workplace safety regulations, which are complex and subject to frequent change. 

As an owner, lessee or operator of gathering pipelines and compressor stations, we are subject to various stringent federal, 

state, provincial and local laws and regulations relating to the discharge of materials into, and protection of, the environment.  
Numerous governmental authorities, such as the EPA and analogous state agencies, have the power to enforce compliance with these 
laws and regulations and the permits issued under them, oftentimes requiring difficult and costly response actions.  These laws and 
(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)n of 
permits to conduct regulated activities, the incurrence of capital or operating expenditures to limit or prevent releases of materials 
(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:70)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:68)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:82)(cid:85)(cid:78)(cid:72)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:87)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)of 
substantial liabilities and remedial obligations for pollution or contamination resulting from (cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)
Failure to comply with these laws, regulations and permits may result in joint and several, strict liability and the assessment of 
administrative, civil and criminal penalties, the imposition of remedial obligations, and the issuance of injunctions limiting or 
preventing some or all of our operations.  Private parties, including the owners of the properties through which our gathering systems 
pass and facilities where wastes resulting from our operations are taken for reclamation or disposal, may also have the right to pursue 
legal actions to enforce compliance, as well as to seek damages for non-compliance, with environmental laws and regulations or for 
personal injury or property damage.  We may not be able to recover all or any of these costs from insurance.  In addition, we may 
experience a delay in obtaining or be unable to obtain required permits, which may cause us to lose potential and current customers, 
interrupt our operations and limit our growth and revenues, which in turn could affect our profitability.  There is no assurance that 
changes in or additions to public policy regarding the protection of the environment will not have a significant impact on our 
operations and profitability.  For example, in June 2016, the EPA finalized rules under the federal Clean Air Act regarding criteria for 
aggregating multiple sites into a single source for air-quality permitting purposes applicable to the oil and gas industry.  This rule 
could cause small facilities (such as tank batteries and compressor stations), on an aggregate basis, to be deemed a major source, 
thereby triggering more stringent air permitting requirements, which in turn could result in operational delays or require us to install 
costly pollution control equipment. 

Our operations also pose risks of environmental liability due to leakage, migration, releases or spills from our operations to 

surface or subsurface soils, surface water or groundwater.  Certain environmental laws impose strict as well as joint and several 
liability for costs required to remediate and restore sites where hazardous substances, hydrocarbons, or solid wastes have been stored 
or released.  We may be required to remediate contaminated properties currently or formerly operated by us or facilities of third 
parties that received waste generated by our operations regardless of whether such contamination resulted from the conduct of others 
or from consequences of our own actions that were in compliance with all applicable laws at the time those actions were taken.  In 
addition, claims for damages to persons or property, including natural resources, may result from the environmental, health and safety 
impacts of our operations.  Moreover, public interest in the protection of the environment has increased dramatically in recent years.  
The trend of more expansive and stringent environmental legislation and regulations applied to the crude oil and natural gas industry 
could continue, resulting in increased costs of doing business and consequently af(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:178)
(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:81)(cid:89)(cid:76)(cid:85)(cid:82)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:70)(cid:70)(cid:88)(cid:83)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:54)(cid:68)(cid:73)(cid:72)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:43)(cid:72)(cid:68)(cid:79)(cid:87)(cid:75)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

(cid:54)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:75)(cid:68)(cid:93)(cid:68)(cid:85)(cid:71)(cid:82)(cid:88)(cid:86)(cid:3)(cid:81)(cid:82)n-exempt 
waste to our Antero Clearwater Facility, could result in liability under, or costs and expenditures to comply with, 
environmental laws and regulations governing the handling, storage, treatment and disposal of solid and hazardous wastes, 
and the permits issued under them. 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:82)(cid:80)(cid:72)(cid:3)(cid:75)(cid:68)(cid:93)(cid:68)(cid:85)(cid:71)(cid:82)(cid:88)(cid:86)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:53)(cid:38)(cid:53)(cid:36)(cid:15)(cid:3)

and comparable state laws, which impose requirements for the handling, storage, treatment and disposal of hazardous waste.  RCRA 
currently exempts many natural gas gathering and field processing wastes from classification as hazardous waste.  Specifically, RCRA 

30 

excludes from the definition of hazardous waste produced waters and other wastes intrinsically associated with the exploration, 
development, or production of crude oil and natural gas, including residual constituents derived from those exempt wastes.  However, 
these oil and gas exploration and production wastes may still be regulated under state solid waste laws and regulations, and it is 
possible that certain oil and natural gas exploration and production wastes now classified as exploration and production-exempt 
non-hazardous waste could be classified as hazardous waste in the future.  For example, in December 2016, the EPA and 
(cid:72)(cid:81)(cid:89)(cid:76)(cid:85)(cid:82)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:86)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:68)(cid:79)(cid:79)(cid:72)(cid:74)(cid:72)(cid:71)(cid:3)(cid:73)(cid:68)(cid:76)(cid:79)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:53)(cid:38)(cid:53)(cid:36)(cid:3)(cid:54)(cid:88)(cid:69)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)(cid:39)(cid:3)(cid:70)(cid:85)(cid:76)(cid:87)eria 
regulations exempting certain exploration and production related oil and gas wastes from regulation as hazardous wastes under RCRA.  
The consent decree requires EPA to propose a rulemaking no later than March 15, 2019 for revision of certain Subtitle D criteria 
regulations pertaining to oil and gas wastes or to sign a determination that revision of the regulations is not necessary.  Stricter 
(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)the 
operations of our customers, which could in turn reduce demand for our services and adversely affect our business. 

The Antero Clearwater Facility and adjacent Antero Landfill operate pursuant to West Virginia DEP permits for the 
management of stormwater and wastewater and the disposal and management of solid waste.  The produced water, flowback water, 
and other waste associated with shale development treated at the Antero Clearwater Facility are exempt from RCRA hazardous waste 
regulations.  Likewise, the input (residual salt derived from the wastewater treated at the Antero Clearwater Facility) and output 
(leachate derived from precipitation run-off contacting the non-hazardous salt) to and from the Antero Landfill also qualify as 
exploration and production-exempt non-hazardous wastes because they derive from non-hazardous exempt material.  However, in the 
event that hazardous non-exempt waste streams are introduced to and mix with the exempt waste at the Antero Clearwater Facility, or 
if we otherwise fail to handle or treat such exempt materials pursuant to our West Virginia DEP permits, we may be subject to 
penalties and/or corrective action measures. 

(cid:38)(cid:79)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:179)(cid:74)(cid:85)(cid:72)(cid:72)(cid:81)(cid:75)(cid:82)(cid:88)(cid:86)(cid:72)(cid:3)(cid:74)(cid:68)(cid:86)(cid:72)(cid:86)(cid:180)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71) 
reduced demand for the natural gas that we gather while potential physical effects of climate change could disrupt Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:76)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:72)(cid:83)(cid:68)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:17) 

In response to findings that emissions of carbon dioxide, methane and other GHGs present an endangerment to public health 
and the environment, the EPA has adopted regulations under existing provisions of the federal Clean Air Act that, among other things, 
establish PSD construction and Title V operating permit reviews for certain large stationary sources that are already potential major 
sources of certain principal, or criteria, pollutant emissions.  Facilities required to obtain PSD permits for their GHG emissions also 
(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:3)(cid:179)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:87)(cid:72)(cid:70)(cid:75)(cid:81)(cid:82)(cid:79)(cid:82)(cid:74)(cid:92)(cid:180)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72) established by the states or, in some cases, by the 
EPA for those emissions.  These EPA rules could adversely affect our operations and restrict or delay our ability to obtain air permits 
for new or modified sources.  In addition, the EPA has adopted rules requiring the monitoring and reporting of GHG emissions from 
specified onshore and offshore oil and gas production sources in the United States on an annual basis, which include certain of our 
operations.  For example, in December 2015, the EPA finalized rules that added new sources to the scope of the GHG monitoring and 
reporting rule.  These new sources include gathering and boosting facilities, as well as completions and workovers of hydraulically 
fractured wells.  The revisions also include the addition of well identification reporting requirements for certain facilities.  These 
(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:42)(cid:43)(cid:42)(cid:3)(cid:72)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:17)(cid:3) 

In June 2016, the EPA finalized new regulations, known as Subpart OOOOa, that establish emission standards for methane 
and volatile organic compounds from new and modified oil and natural gas production and natural gas processing and transmission 
(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:83)(cid:68)(cid:70)(cid:78)(cid:68)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:76)(cid:85)(cid:86)(cid:87)-time standards to address emissions of methane from equipment and processes across 
the source category, including hydraulically fractured oil and natural gas well completions.  In addition, the rule package extends 
(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:57)(cid:50)(cid:38)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:54)(cid:88)(cid:69)(cid:83)(cid:68)(cid:85)(cid:87)(cid:3)(cid:50)(cid:50)(cid:50)(cid:50)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:76)(cid:82)(cid:88)(cid:86)(cid:79)(cid:92)(cid:3)(cid:88)(cid:81)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)d equipment within the oil and natural gas 
source category.  In June 2017, the EPA proposed to delay implementation of the 2016 methane rule, but in July 2017, the U.S. Court 
of Appeals for the District of Columbia Circuit ruled that such a stay was unlawful.  In September 2018, the EPA proposed 
(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:91)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:88)(cid:74)(cid:76)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:80)(cid:82)(cid:81)(cid:76)(cid:87)(cid:82)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86) to 
pneumatic pump requirements, among other changes.  Various industry and environmental groups separately challenged both the 
(cid:80)(cid:72)(cid:87)(cid:75)(cid:68)(cid:81)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:68)(cid:87)(cid:87)(cid:72)(cid:80)(cid:83)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:79)(cid:68)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:83)(cid:85)(cid:76)(cid:79)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:86)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86) filed a 
lawsuit that seeks to compel the EPA to issue methane performance standards for existing sources in the oil and natural gas source 
(cid:70)(cid:68)(cid:87)(cid:72)(cid:74)(cid:82)(cid:85)(cid:92)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:88)(cid:81)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:87)(cid:92)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25) methane 
rule.  However, given the long-term trend toward increasing regulation, future federal GHG regulations of the oil and gas industry 
remain a possibility, and several states, including West Virginia and Ohio, have separately imposed their own regulations on methane 
emissions from oil and gas production activities.  

While Congress has from time to time considered legislation to reduce emissions of GHGs, there has been significant activity 

in the form of federal legislation in recent years.  In the absence of such federal climate legislation, a number of state and regional 

31 

efforts have emerged that are aimed at tracking and/or reducing GHG emissions by means of cap and trade programs that typically 
require major sources of GHG emissions, such as electric power plants, to acquire and surrender emission allowances in return for 
emitting those GHGs. Although it is not possible at this time to predict how legislation or new regulations that may be adopted to 
address GHG emissions would impact our business, any such future laws and regulations imposing reporting obligations on, or 
limiting emissions of GHGs from, our equipment and operations could require us to incur costs to reduce emissions of GHGs 
associated with our operations. Substantial limitations on GHG emissions could also adversely affect demand for the oil and natural 
gas Antero Resources produces and lower the value of its reserves. Depending on the severity of any such limitations, the effect on the 
value of Antero Resources reserves could be significant.  

On an international level, the United States is one of almost 200 nations that, in December 2015, agreed to an international 

climate change agreement in Paris, France, that calls for countries to set their own GHG emissions targets and be transparent about the 
measures each country will use to achieve its GHG emissions targets ((cid:179)(cid:51)(cid:68)(cid:85)(cid:76)(cid:86)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:76)(cid:86)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
United States in April 2016 and entered into force on  November 4, 2016; however, the Paris Agreement does not impose any binding 
obligations on its participants. In August 2017, the U.S. Department of State officially informed the United Nations of the United 
(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:71)(cid:85)(cid:68)(cid:90)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:76)(cid:86)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:76)(cid:86)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:73)(cid:82)(cid:88)(cid:85)-year exit process beginning when it 
took effect in November 2016, which would result in an effective (cid:72)(cid:91)(cid:76)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:82)(cid:89)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:71)(cid:75)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
exit process and/or the terms on which the United States may reenter the Paris Agreement or a separately negotiated agreement are 
unclear at this time. 

Notwithstanding potential risks related to climate change, the International Energy Agency estimates that oil and gas will 
continue to represent a major share of global energy use through 2040, and other private sector studies project continued growth in 
demand for the next two decades.  However, recent activism directed at shifting funding away from companies with energy-related 
assets could result in limitations or restrictions on certain sources of funding for the energy sector.  Moreover, activist shareholders 
have introduced proposals that may seek to force companies to adopt aggressive emission reduction targets or to shift away from more 
carbon-intensive activities.  While we cannot predict the outcomes of such proposals, they could ultimately make it more difficult to 
engage in exploration and production activities.  Finally, it should be noted that a number of scientists have concluded that increasing 
(cid:70)(cid:82)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:42)(cid:43)(cid:42)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:68)(cid:85)(cid:87)(cid:75)(cid:182)(cid:86)(cid:3)(cid:68)(cid:87)(cid:80)(cid:82)(cid:86)(cid:83)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:3)(cid:70)(cid:79)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:83)(cid:75)(cid:92)(cid:86)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)
increased frequency and severity of storms, floods, droughts, and other extreme climatic events; if any such effects were to occur, they 
have the potential to cause physical damage to our assets or affect the availability of water and thus could have an adverse effect on 
our exploration and production operations. 

We may incur significant costs and liabilities as a result of pipeline integrity management program testing and any related 
pipeline repair or preventative or remedial measures. 

The United States Department of Transportation, or DOT, has adopted regulations requiring pipeline operators to develop 

(cid:76)(cid:81)(cid:87)(cid:72)(cid:74)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:83)(cid:82)(cid:85)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:68)(cid:3)(cid:79)(cid:72)(cid:68)(cid:78)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:88)(cid:83)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:71)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:75)(cid:68)(cid:85)(cid:80)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)
(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:3)operators to: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

perform ongoing assessments of pipeline integrity; 

identify and characterize applicable threats to pipeline segments that could impact a high consequence area; 

improve data collection, integration and analysis; 

repair and remediate the pipeline as necessary; and 

implement preventive and mitigating actions. 

The Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011, or the 2011 Pipeline Safety Act, among other 

things, increased the maximum civil penalty for pipeline safety violations and directed the Secretary of Transportation to promulgate 
rules or standards relating to expanded integrity management requirements, automatic or remote-controlled valve use, excess flow 
valve use, leak detection system installation and testing to confirm the material strength of pipe operating above 30% of specified 
minimum yield strength in high consequence areas.  Consistent with the 2011 Pipeline Safety Act, the Pipelines and Hazardous 
Materials Safety Administration, or PHMSA, finalized rules consistent with the signed act that increased the maximum administrative 
civil penalties for violations of the pipeline safety laws and regulations to $200,000 per violation per day, with a maximum of 
$2,000,000 for a related series of violations.  In April 2017, those maximum civil penalties were increased to $209,002 and 
$2,090,022, respectively, to account for inflation.  Should our operations fail to comply with DOT or comparable state regulations, we 

32 

could be subject to substantial penalties and fines.  Additionally, in May 2011, PHMSA published a final rule adding reporting 
obligations and integrity management standards to certain rural low-stress hazardous liquid pipelines that were not previously 
regulated in such manner. 

In June 2016, the President of the United States signed into law important new legislation entitled Protecting our 

Infrastructure of Pipelines and Enhancing Safety Act of 2016, or the PIPES Act.  The PIPES Act reauthorizes PHMSA through 2019, 
and facilitates greater pipeline safety by providing PHMSA with emergency order authority, including authority to issue prohibitions 
and safety measures on owners and operators of gas or hazardous liquid pipeline facilities to address imminent hazards, without prior 
notice or an opportunity for a hearing, as well as enhanced release reporting requirements, requiring a review of both natural gas and 
hazardous liquid integrity management programs, and mandating the creation of a working group to consider the development of an 
information-sharing system related to integrity risk analyses.  The PIPES Act also requires that PHMSA publish periodic updates on 
the status of those mandates outstanding from 2011 Pipeline Safety Act, of which approximately nine remain to be completed.  The 
mandates yet to be acted upon include requiring certain shut-off valves on transmission lines, mapping all high consequence areas, and 
requiring pipeline owners or operators to reconfirm their MAOP as expeditiously as economically feasible. 

PHMSA regularly revises its pipeline safety regulations.  For example, in March 2015, PHMSA finalized new rules 
applicable to gas and hazardous liquid pipelines that, among other changes, impose new post-construction inspections, welding, gas 
component pressure testing requirements, as well as requirements for calculating pressure reductions for immediate repairs on liquid 
pipelines.  More recently, in January 2017, PHMSA finalized regulations for hazardous liquid pipelines that significantly extend and 
expand the reach of certain PHMSA integrity management requirements (i.e., periodic assessments, leak detection and repairs) 
(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)r certain 
unregulated pipelines, including all hazardous liquid gathering lines.  However, implementation of this rule was delayed as a result of 
the change in U.S. Presidential Administrations, and the final rule is not expected to be published in the Federal Register until the first 
half of 2019.  Separately, in March 2017, new PHMSA rules related to gas and hazardous liquid pipeline accident reporting, control 
room personnel training requirements, personnel drug and alcohol testing, and incorporating consensus standards by reference for 
integrity management issues such as in-line inspection and stress corrosion cracking direct assessment became effective.  Additional 
future regulatory action expanding PHMSA jurisdiction and imposing stricter integrity management requirements is likely.  For 
example, in May 2016, PHMSA proposed rules that would, if adopted, impose more stringent requirements for certain gas 
(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:80)(cid:68)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:43)(cid:48)(cid:54)(cid:36)(cid:182)(cid:86)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)
regulatory safety (cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:69)(cid:72)(cid:92)(cid:82)(cid:81)(cid:71)(cid:3)(cid:179)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:180)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:88)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:81)(cid:72)(cid:90)(cid:79)(cid:92)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)
(cid:179)(cid:80)(cid:82)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:180)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:73)(cid:72)(cid:90)(cid:3)(cid:68)(cid:86)(cid:3)(cid:24)(cid:3)(cid:71)(cid:90)(cid:72)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)ipelines 
installed before 1970 that are currently exempted from certain pressure testing obligations to be tested to determine their MAOP.  
Other new requirements proposed by PHMSA under the rulemaking would require pipeline operators to: report to PHMSA in the 
event of certain MAOP exceedances; strengthen PHMSA integrity management requirements; consider seismicity in evaluating 
threats to a pipeline; conduct hydrostatic testing for all pipeline segments manufactured using longitudinal seam welds; and use more 
detailed guidance from PHMSA in the selection of assessment methods to inspect pipelines.  The proposed rulemaking also seeks to 
impose a number of requirements on gathering lines.  PHMSA has announced its intention to divide the proposed rule into three parts 
and issue three separate final rulemakings in 2019. Part I is expected to address the expansion of risk assessment and MAOP 
requirements (expected issuance in March 2019); Part II is expected to address the expansion of integrity management program 
regulations (expected issuance in June 2019); and Part III is expected to expand the regulation of gas gathering lines (expected 
issuance in August 2019).  The adoption of these and other laws or regulations that apply more comprehensive or stringent safety 
standards could require us to install new or modified safety controls, pursue new capital projects, or conduct maintenance programs on 
an accelerated basis, all of which could require us to incur increased operational costs that could be significant.  While we cannot 
predict the outcome of legislative or regulatory initiatives, such legislative and regulatory changes could have a material effect on our 
(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:178)(cid:51)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:54)(cid:68)(cid:73)(cid:72)(cid:87)(cid:92)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

Our business involves many hazards and operational risks, some of which may not be fully covered by insurance.  The 
occurrence of a significant accident or other event that is not fully insured could curtail our operations and have a material 
adverse effect on our ability to distribute cash and, accordingly, the market price for our common units. 

Our operations are subject to all of the hazards associated with the provision, gathering and compression of natural gas, 

NGLs and oil, and water handling and treatment services, including: 

(cid:120)(cid:3)

unintended breach of impoundment and downstream flooding, release of invasive species or aquatic pathogens, 
hazardous spills near intake points, trucking collision, vandalism, excessive road damage or bridge collapse and 
unauthorized access or use of automation controls; 

33 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

damage to pipelines, compressor stations, pump stations, impoundments, related equipment and surrounding properties 
caused by natural disasters, acts of terrorism and acts of third parties; 

damage from construction, farm and utility equipment as well as other subsurface activity (for example, mine 
subsidence); 

leaks of natural gas, NGLs or oil or losses of natural gas, NGLs or oil as a result of the malfunction of equipment or 
facilities; 

fires, ruptures and explosions; 

other hazards that could also result in personal injury and loss of life, pollution of the environment, including natural 
resources, and suspension of operations; and 

hazards experienced by other operators that may affect our operations by instigating increased regulations and oversight. 

Any of these risks could adversely affect our ability to conduct operations or result in substantial loss to us as a result of 

claims for: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

injury or loss of life; 

damage to and destruction of property, natural resources and equipment; 

pollution and other environmental damage; 

regulatory investigations and penalties; 

suspension of our operations; and 

repair and remediation costs. 

We may elect not to obtain insurance for any or all of these risks if we believe that the cost of available insurance is excessive 

relative to the risks presented.  In addition, pollution and environmental risks generally are not fully insurable under policies we are 
covered under, and neither we nor our general partner on our behalf have obtained pollution insurance.  The occurrence of an event 
that is not fully covered by insurance could have a material adverse effect on our business, financial condition and results of 
operations. 

We do not own all of the land on which our pipelines and facilities are located, which could result in disruptions to our 
operations. 

We do not own all of the land on which our pipelines and facilities have been constructed, and we are, therefore, subject to 
the possibility of more onerous terms or increased costs to retain necessary land use if we do not have valid rights-of-way or if such 
rights-of-way lapse or terminate.  We obtain the rights to construct and operate our pipelines on land owned by third parties and 
governmental agencies for a specific period of time.  Our loss of these rights, through our inability to renew right-of-way contracts or 
otherwise, could have a material adverse effect on our business, results of operations, financial condition and ability to make cash 
distributions to you. 

We are subject to complex federal, state and local laws and regulations that could adversely affect the cost, manner or 
feasibility of conducting our operations or expose us to significant liabilities. 

Our operations are subject to complex and stringent federal, state and local laws and regulations.  In order to conduct our 

operations in compliance with these laws and regulations, we must obtain and maintain numerous permits, approvals and certificates 
from various federal, state and local governmental authorities.  We may incur substantial costs in order to maintain compliance with 
these existing laws and regulations and the permits and other approvals issued thereunder.  In addition, our costs of compliance may 
increase or operational delays may occur if existing laws and regulations are revised or reinterpreted, or if new laws and regulations 
apply to our operations.  Failure to comply with such laws and regulations, including any evolving interpretation and enforcement by 
governmental authorities, could have a material adverse effect on our business, financial condition and results of operations.  Also, we 

34 

might not be able to obtain or maintain all required environmental regulatory approvals for our operations.  If there is a delay in 
obtaining any required environmental regulatory approvals, or if we fail to obtain and comply with them, the operation or construction 
of our facilities could be prevented or become subject to additional costs. 

In addition, new or additional regulations, new interpretations of existing requirements or changes in our operations could 

also trigger the need for Environmental Assessments or more detailed Environmental Impact Statements under the National 
Environmental Policy Act and analogous state laws, or that impose new permitting requirements on our operations could result in 
increased costs or delays of, or denial of rights to conduct, our development programs.  For example, in September 2015, the EPA and 
U.S. Army Corps of Engineers, or the Corps, issued a final rule under the federal Clean Water Act, or the CWA, defining the scope of 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:86)(cid:182)(cid:3)(cid:77)(cid:88)(cid:85)(cid:76)(cid:86)(cid:71)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:58)(cid:50)(cid:55)(cid:56)(cid:54)(cid:180)(cid:12)(cid:15)(cid:3)(cid:69)(cid:88)(cid:87)(cid:3)(cid:86)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:79)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)llowed, 
and the WOTUS rule was stayed nationwide in October 2015 pending resolution of the court challenges.  The EPA and the Corps 
(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:80)(cid:68)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:83)(cid:72)(cid:68)(cid:79)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:50)(cid:55)(cid:56)(cid:54)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:81)(cid:82)(cid:88)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:3)(cid:68)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:58)(cid:36)(cid:182)s 
jurisdiction.  In January 2018, the U.S. Supreme Court issued a decision finding that jurisdiction to hear challenges to the WOTUS 
rule resides with the federal district courts; consequently, the previously filed district court cases have been allowed to proceed, 
resulting in a patchwork of implementation in some states and stays in others.  Followi(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:88)(cid:83)(cid:85)(cid:72)(cid:80)(cid:72)(cid:3)(cid:38)(cid:82)(cid:88)(cid:85)(cid:87)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:51)(cid:36)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
the Corps issued a final rule in January 2018 staying implementation of the WOTUS rule for two years while the agencies reconsider 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:15)(cid:3)(cid:69)(cid:88)(cid:87)(cid:3)(cid:68)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:77)(cid:88)(cid:71)(cid:74)(cid:72)(cid:3)(cid:69)(cid:68)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:74)(cid:72)(cid:81)(cid:70)(cid:76)(cid:72)(cid:86)(cid:182)(cid:3)(cid:86)(cid:88)(cid:86)(cid:83)(cid:72)(cid:81)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:88)(cid:74)ust 2018.  Various district court decisions have revived 
the WOTUS rule in 22 states, while a federal court in Georgia has enjoined implementation of the rule in 11 states.  As a result of 
these developments, future implementation of the rule is uncertain (cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:17)(cid:3)(cid:3)(cid:55)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:58)(cid:36)(cid:182)(cid:86)(cid:3)
jurisdiction, we could face increased costs and delays with respect to obtaining permits for dredge and fill activities in wetland areas.  
Such potential regulations or litigation could increase our operating costs, reduce our liquidity, delay or halt our operations or 
otherwise alter the way we conduct our business, which could in turn have a material adverse effect on our business, financial 
condition and results of operations.  Further, the discharges of  natural gas, NGLs, oil, and other pollutants into the air, soil or water 
(cid:80)(cid:68)(cid:92)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:3)(cid:85)(cid:76)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:17)(cid:3)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:178)Regulation of 
Environmental and Occupatio(cid:81)(cid:68)(cid:79)(cid:3)(cid:54)(cid:68)(cid:73)(cid:72)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:43)(cid:72)(cid:68)(cid:79)(cid:87)(cid:75)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:88)(cid:86)(cid:17) 

The loss of key personnel could adversely affect our ability to operate. 

(cid:58)(cid:72)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:86)(cid:80)(cid:68)(cid:79)(cid:79)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)management and technical personnel.  
We do not maintain, nor do we plan to obtain, any insurance against the loss of any of these individuals.  The loss of the services of 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:72)(cid:70)(cid:75)(cid:81)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)(cid:83)(cid:72)(cid:85)(cid:86)(cid:82)(cid:81)(cid:81)(cid:72)(cid:79)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)dy, Chairman and Chief Executive Officer, and 
Glen C. Warren, Jr., President, could have a material adverse effect on our business, financial condition and results of operations. 

We do not have any officers or employees and rely solely on officers of our general partner and employees of Antero 
Resources. 

We are managed and operated by the board of directors of our general partner.  Affiliates of Antero Resources conduct 

businesses and activities of their own in which we have no economic interest.  As a result, there could be material competition for the 
time and effort of the officers and employees who provide services to our general partner and Antero Resources.  If our general 
partner and the officers and employees of Antero Resources do not devote sufficient attention to the management and operation of our 
business, our financial results may suffer, and our ability to make distributions to our unitholders may be reduced. 

Debt we incur in the future may limit our flexibility to obtain financing and to pursue other business opportunities. 

Our future level of debt could have important consequences to us, including the following: 

(cid:120)(cid:3)

(cid:120)(cid:3)

our ability to obtain additional financing, if necessary, for working capital, capital expenditures (including required 
drilling pad connections and well connections pursuant to our gathering and compression agreements as well as 
acquisitions) or other purposes may be impaired or such financing may not be available on favorable terms; 

our funds available for operations, future business opportunities and distributions to unitholders will be reduced by that 
portion of our cash flows required to make interest payments on our debt; 

(cid:120)(cid:3) we may be more vulnerable to competitive pressures or a downturn in our business or the economy generally; and 

(cid:120)(cid:3)

our flexibility in responding to changing business and economic conditions may be limited. 

35 

Our ability to service our debt will depend upon, among other things, our future financial and operating performance, which 

will be affected by prevailing economic conditions and financial, business, regulatory and other factors, some of which are beyond our 
control.  If our operating results are not sufficient to service any future indebtedness, we will be forced to take actions such as 
reducing distributions, reducing or delaying our business activities, investments or capital expenditures, selling assets or issuing 
equity.  We may not be able to effect any of these actions on satisfactory terms or at all. 

Terrorist or cyber-attacks and threats could have a material adverse effect on our business, results of operations, financial 
condition and ability to make cash distributions. 

Terrorist or cyber-attacks may significantly affect the energy industry, including our operations and those of our suppliers 
and customers, as well as general economic conditions, consumer confidence and spending, and market liquidity.  Strategic targets, 
such as energy-related assets, may be at greater risk of future attacks than other targets in the United States.  Our insurance may not 
protect us against such occurrences.  We depend on digital technology in many areas of our business and operations, including, but not 
limited to, performing many of our gathering and compression and water handling and treatment services, recording financial and 
operating data, oversight and analysis of our operations, and communications with the employees supporting our operations and our 
customers or service providers.  Deliberate attacks on our assets, security breaches in our systems or infrastructure, or the systems or 
infrastructure of third-parties or the cloud, could lead to the corruption or loss of our proprietary and potentially sensitive data, delays 
in the performance of services for our customers, difficulty in completing and settling transactions, challenges in maintaining our 
books and records, environmental damage, communication interruptions, or other operational disruptions and third-party liabilities.  
Cybersecurity attacks in particular are becoming more sophisticated and include, but are not limited to, malicious software, 
ransomware, attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in 
critical systems, unauthorized release of confidential or otherwise protected information, and corruption of data. 

As cyber-attacks continue to evolve, we may be required to expend significant additional resources to continue to modify or 

enhance our protective measures or to investigate and remediate any vulnerabilities to cyber-attacks.  In particular, our implementation 
of various procedures and controls to monitor and mitigate security threats and to increase security for our personnel, information, 
facilities and infrastructure may result in increased capital and operating costs.  To date, we have not experienced any material losses 
relating to cyber-attacks; however, there can be no assurance that we will not suffer such losses in the future.  Consequently, it is 
possible that any of these occurrences, or a combination of them, could have a material adverse effect on our business, results of 
operations, financial condition and ability to make cash distributions. 

Risks Inherent in an Investment in Us  

Antero Resources, our general partner and their respective affiliates, including AMGP, which owns our general partner, have 
conflicts of interest with us and limited duties to us and our unitholders, and they may favor their own interests to the 
detriment of us and our other common unitholders.  

AMGP owns and controls our general partner and appoints all of the officers and directors of our general partner. All of the 

officers and a majority of the directors of our general partner are officers or directors of AMGP GP LLC, the general partner of 
(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:54)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:79)(cid:92)(cid:15)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)
of Antero Resources.  Although our general partner has a duty to manage us in a manner that is beneficial to us and our unitholders, 
the directors and officers of our general partner have a fiduciary duty to manage our general partner in a manner that is beneficial to its 
(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:41)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)ources have a 
fiduciary duty to manage Antero Resources in a manner that is beneficial to Antero Resources.  Conflicts of interest will arise between 
Antero Resources, AMGP, and our general partner, on the one hand, and us and our common unitholders, on the other hand.  In 
resolving these conflicts of interest, our general partner may favor its own interests and the interests of AMGP or Antero Resources 
over our interests and the interests of our unitholders.  These conflicts include the following situations, among others: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

actions taken by our general partner may affect the amount of cash available to pay distributions to unitholders; 

the directors and officers of AMGP have a fiduciary duty to make decisions in the best interests of AMGP and its 
owners, which may be contrary to our interests; 

the directors and officers of Antero Resources have a fiduciary duty to make decisions in the best interests of Antero 
Resources and its owners, which may be contrary to our interests; 

36 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

our general partner is allowed to take into account the interests of parties other than us, such as AMGP, in exercising 
certain rights under our partnership agreement; 

except in limited circumstances, our general partner has the power and authority to conduct our business without 
unitholder approval; 

our general partner may cause us to borrow funds in order to permit the payment of cash distributions; 

our general partner determines the amount and timing of asset purchases and sales, borrowings, issuances of additional 
partnership securities and the level of reserves, each of which can affect the amount of cash that is distributed to our 
unitholders; 

our general partner determines the amount and timing of any capital expenditure and whether a capital expenditure is 
classified as a maintenance capital expenditure, which reduces operating surplus, or an expansion capital expenditure, 
which does not reduce operating surplus, and this determination can affect the amount of cash from operating surplus 
that is distributed to our unitholders; 

our partnership agreement limits the liability of, and replaces the duties owed by, our general partner and also restricts 
the remedies available to our unitholders for actions that, without the limitations, might constitute breaches of fiduciary 
duty; 

common unitholders have no right to enforce obligations of our general partner and its affiliates under agreements with 
us; 

contracts between us, on the one hand, and our general partner and its affiliates, on the other, are not and will not be the 
(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:85)(cid:80)(cid:182)(cid:86)(cid:3)(cid:79)(cid:72)(cid:81)(cid:74)(cid:87)(cid:75)(cid:3)(cid:81)(cid:72)(cid:74)(cid:82)(cid:87)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:30) 

our partnership agreement permits us to distribute up to $75.0 million as operating surplus, even if it is generated from 
asset sales, non-working capital borrowings or other sources that would otherwise constitute capital surplus, which may 
be used to fund distributions on the incentive distribution rights; 

our general partner determines which costs incurred by it and its affiliates (including Antero Resources) are reimbursable 
by us; 

our partnership agreement does not restrict our general partner from causing us to pay it or its affiliates for any services 
rendered to us or entering into additional contractual arrangements with its affiliates on our behalf; 

our general partner intends to limit its liability regarding our contractual and other obligations; 

our general partner may exercise its right to call and purchase common units if it and its affiliates (including Antero 
Resources) own more than 80% of the common units; 

our general partner controls the enforcement of obligations that it and its affiliates (including Antero Resources) owe to 
us; 

(cid:120)(cid:3) we may not choose to retain separate counsel for ourselves or for the holders of common units; 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:87)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:72)(cid:76)(cid:87)(cid:75)er our general partner nor its affiliates have any obligation 
to present business opportunities to us; and 

the holder or holders of our incentive distribution rights may elect to cause us to issue common units to it in connection 
with a resetting of incentive distribution levels without the approval of our unitholders, which may result in lower 
distributions to our common unitholders in certain situations. 

37 

Certain of our common unitholders have investments in our affiliates that may conflict with the interests of other holders of 
our common units, including with respect to the Transactions. 

(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:180)(cid:12)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)

(cid:11)(cid:179)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:79)(cid:72)(cid:81)(cid:3)(cid:38)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15)(cid:3)(cid:45)(cid:85)(cid:17)(cid:3)(cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:88)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)
Warburg and Yorktown, Mr. Rady and Mr. Warren serve as members of the board of directors of our general partner and the board of 
directors of Antero Resources and AMGP GP, and each of Warburg and Yorktown are controlled in part by individuals who serve as 
members of the board of directors of AMGP and the board of directors of Antero Resources.  The Sponsors also own the membership 
interests in AMGP GP, a majority of the common shares in AMGP, a majority of the Series B Units in IDR LLC, the holder of our 
(cid:44)(cid:39)(cid:53)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:20)(cid:17)(cid:3)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)ion(cid:178)
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table(cid:178)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)
more information regarding the Series B Units in IDR LLC.  As a result of their investments in AMGP, AMGP GP and Antero 
Resources, the Sponsors may have conflicting interests with other holders of our common units, including with respect to the 
Transactions.  Conflicts of interest could arise in the future between us, on the one hand, and the Sponsors, on the other hand, 
regarding, among other things, decisions related to our financing, capital expenditure and growth plans, decisions to modify or limit 
the IDRs in the future, the terms of our agreements with Antero Resources and AMGP and their respective subsidiaries, and the 
pursuit of potentially competitive business activities or business opportunities. 

Ongoing cost reimbursements due to our general partner and its affiliates for services provided, which are determined by our 
general partner, will be substantial and will reduce our cash available for distribution to our unitholders. 

Prior to making distributions on our common units, we reimburse our general partner and its affiliates for all expenses they 
incur on our behalf.  These expenses include all costs incurred by our general partner and its affiliates in managing and operating us, 
including costs for rendering administrative staff and support services to us and reimbursements paid by our general partner to Antero 
Resources for customary management and general administrative services.  There is no limit on the amount of expenses for which our 
general partner and its affiliates may be reimbursed under the services agreement.  Our partnership agreement provides that our 
general partner determines the expenses that are allocable to us in good faith.  In addition, under Delaware partnership law, our 
general partner has unlimited liability for our obligations, such as our debts and environmental liabilities, except for our contractual 
obligations that are expressly made without recourse to our general partner.  To the extent our general partner incurs obligations on 
our behalf, we are obligated to reimburse or indemnify it.  If we are unable or unwilling to reimburse or indemnify our general partner, 
our general partner may take actions to cause us to make payments of these obligations and liabilities.  Any such payments could 
reduce the amount of cash otherwise available for distribution to our unitholders. 

We expect to distribute a significant portion of our cash available for distribution to our partners, which could limit our 
ability to grow and make acquisitions. 

We plan to distribute most of our cash available for distribution, which may cause our growth to proceed at a slower pace 
than that of businesses that reinvest their cash to expand ongoing operations.  To the extent we issue additional units in connection 
with any acquisitions or expansion capital expenditures, the payment of distributions on those additional units may increase the risk 
that we will be unable to maintain or increase our per unit distribution level.  There are no limitations in our partnership agreement on 
our ability to issue additional units, including units ranking senior to the common units.  In addition, the incurrence of commercial 
borrowings or other debt to finance our growth strategy would result in increased interest expense, which, in turn, may reduce the cash 
that we have available to distribute to our unitholders. 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:83)(cid:79)(cid:68)(cid:70)(cid:72)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:73)(cid:76)(cid:71)(cid:88)(cid:70)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:71)(cid:88)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)
governing its duties. 

Our partnership agreement contains provisions that eliminate and replace the fiduciary standards to which our general partner 

would otherwise be held by state fiduciary duty law.  For example, our partnership agreement permits our general partner to make a 
number of decisions, in its individual capacity, as opposed to in its capacity as our general partner, or otherwise, free of fiduciary 
duties to us and our unitholders other than the implied contractual covenant of good faith and fair dealing, which means that a court 
will enforce the reasonable expectations of the parties where the language in our partnership agreement does not provide for a clear 
course of action.  This entitles our general partner to consider only the interests and factors that it desires, and it has no duty or 
obligation to give any consideration to any interest of, or factors affecting, us, our affiliates or our limited partners.  Examples of 
decisions that our general partner may make in its individual capacity include: 

(cid:120)(cid:3)

how to allocate business opportunities among us and its other affiliates; 

38 

(cid:120)(cid:3) whether to exercise its limited call right; 

(cid:120)(cid:3)

how to exercise its voting rights with respect to the units it owns; 

(cid:120)(cid:3) whether to exercise its registration rights; 

(cid:120)(cid:3) whether to elect to reset target distribution levels; and 

(cid:120)(cid:3) whether or not to consent to any merger or consolidation of the partnership or amendment to the partnership agreement. 

Unitholders are treated as having consented to the provisions in the partnership agreement, including the provisions discussed 

above.  

Our partnership agreement limits the liability of, and replaces the duties owed by, our general partner and also restricts the 
remedies available to our unitholders for actions that, without the limitations, might constitute breaches of fiduciary duty. 

Our partnership agreement contains provisions that restrict the remedies available to our unitholders for actions that might 

otherwise constitute breaches of fiduciary duty under state fiduciary duty law.  For example, our partnership agreement provides that: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

our general partner will not have any liability to us or our unitholders for decisions made in its capacity as general 
partner so long as it acted in good faith, meaning it believed that the decision was not adverse to the interest of the 
partnership, and, with respect to criminal conduct, did not act with the knowledge that its conduct was unlawful;  

our general partner and its officers and directors will not be liable for monetary damages or otherwise to us or our limited 
partners for any acts or omissions unless there has been a final and non-appealable judgment entered by a court of 
competent jurisdiction determining that such losses or liabilities were the result of the conduct of our general partner or 
such officer or director engaged in by it in bad faith or, with respect to any criminal conduct, with the knowledge that its 
conduct was unlawful; and  

in resolving conflicts of interest, it will be presumed that in making its decision our general partner, the board of 
directors of our general partner or the conflicts committee of the board of directors of our general partner acted in good 
faith, and in any proceeding brought by or on behalf of any limited partner or us, the person bringing or prosecuting such 
proceeding will have the burden of overcoming such presumption and proving that such decision was not in good faith. 

Our partnership agreement designates the Court of Chancery of the State of Delaware as the exclusive forum for certain types 
of actions and (cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:72)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:75)(cid:82)(cid:82)(cid:86)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:77)(cid:88)(cid:71)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)
(cid:73)(cid:82)(cid:85)(cid:88)(cid:80)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:88)(cid:87)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)
provides that any unitholder bringing an unsuccessful action will be obligated to reimburse us for any costs we have incurred 
in connection with such unsuccessful action. 

Our partnership agreement provides that, with certain limited exceptions, the Court of Chancery of the State of Delaware will 

be the exclusive forum for any claims, suits, actions or proceedings (1) arising out of or relating in any way to our partnership 
agreement (including any claims, suits or actions to interpret, apply or enforce the provisions of our partnership agreement or the 
duties, obligations or liabilities among limited partners or of limited partners to us, or the rights or powers of, or restrictions on, the 
limited partners or us), (2) brought in a derivative manner on our behalf, (3) asserting a claim of breach of a duty owed by any 
director, officer or other employee of us or our general partner, or owed by our general partner, to us or the limited partners, 
(4) asserting a claim arising pursuant to any provision of the Delaware Revised Unif(cid:82)(cid:85)(cid:80)(cid:3)(cid:47)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)
(cid:36)(cid:70)(cid:87)(cid:180)(cid:12)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:24)(cid:12)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:3)(cid:70)(cid:79)(cid:68)(cid:76)(cid:80)(cid:3)(cid:68)(cid:74)(cid:68)(cid:76)(cid:81)(cid:86)(cid:87)(cid:3)(cid:88)(cid:86)(cid:3)(cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:73)(cid:73)(cid:68)(cid:76)(cid:85)(cid:86)(cid:3)(cid:71)(cid:82)(cid:70)(cid:87)(cid:85)(cid:76)(cid:81)(cid:72)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:69)(cid:85)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:68)ny of the 
aforementioned claims, suits, actions or proceedings and such person does not obtain a judgment on the merits that substantially 
achieves, in substance and amount, the full remedy sought, then such person shall be obligated to reimburse us and our affiliates for all 
fees, costs and expenses of every kind and description, including b(cid:88)(cid:87)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:85)(cid:72)(cid:68)(cid:86)(cid:82)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:87)(cid:87)(cid:82)(cid:85)(cid:81)(cid:72)(cid:92)(cid:86)(cid:182)(cid:3)(cid:73)(cid:72)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:87)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
expenses, that the parties may incur in connection with such claim, suit, action or proceeding.  Limited partners who own common 
units irrevocably consent to these limitations, provisions and potential reimbursement obligations regarding claims, suits, actions or 
proceedings and submitting to the exclusive jurisdiction of the Court of Chancery of the State of Delaware (or such other court) in 
connection with any such claims, suits, actions or proceedings.  These provisions may have the effect of discouraging lawsuits against 
(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3) 

39 

Holders of our common units have limited voting rights and are not entitled to elect our general partner or its directors, which 
could reduce the price at which our common units will trade. 

Compared to the holders of common stock in a corporation, unitholders have limited voting rights and, therefore, limited 

(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:73)(cid:79)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)business.  Unitholders will have no right on an annual or ongoing basis to 
elect our general partner or its board of directors.  The board of directors of our general partner, including the independent directors, is 
chosen entirely by AMGP, as a result of (cid:76)(cid:87)(cid:3)(cid:82)(cid:90)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:19)(cid:17)(cid:3)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)
Executive Officers, and Corporate Governance(cid:178)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:179)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:56)(cid:81)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)-traded corporations, we do not conduct annual meetings of our unitholders to elect directors or 
conduct other matters routinely conducted at annual meetings of stockholders of corporations.  As a result of these limitations, the 
price at which the common units will trade could be diminished because of the absence or reduction of a takeover premium in the 
trading price. 

Our general partner intends to limit its liability regarding our obligations. 

Our general partner intends to limit its liability under contractual arrangements between us and third parties so that the 
counterparties to such arrangements have recourse only against our assets, and not against our general partner or its assets.  Our 
general partner may therefore cause us to incur indebtedness or other obligations that are nonrecourse to our general partner.  Our 
partnership agreement provides that any action taken by our general partner to limit its liability is not a breach of our gen(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)
duties, even if we could have obtained more favorable terms without the limitation on liability.  In addition, we are obligated to 
reimburse or indemnify our general partner to the extent that it incurs obligations on our behalf.  Any such reimbursement or 
indemnification payments would reduce the amount of cash otherwise available for distribution to our unitholders. 

The holder or holders of our incentive distribution rights may elect to cause us to issue common units to it in connection with a 
resetting of the target distribution levels related to its incentive distribution rights, without the approval of the conflicts 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:79)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3)
distributions to holders of our common units. 

The holder or holders of a majority of our incentive distribution rights have the right, at any time they have received incentive 

distributions at the highest level to which they are entitled (50%) for each of the prior four consecutive fiscal quarters, to reset the 
initial target distribution levels at higher levels based on our cash distribution levels at the time of the exercise of the reset election.  
The incentive distribution rights have received incentive distributions at the highest level for the prior four consecutive fiscal quarters.  
Following a reset election, a baseline distribution amount will be calculated equal to an amount equal to the prior cash distribution per 
common unit for the fiscal quarter immediately preceding the reset election (such amount is referred to (cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:181)(cid:181)(cid:85)(cid:72)(cid:86)(cid:72)(cid:87)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)
(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:182)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:85)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:79)(cid:92)(cid:3)(cid:75)(cid:76)(cid:74)(cid:75)(cid:72)(cid:85)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:83)(cid:72)(cid:85)(cid:70)(cid:72)(cid:81)(cid:87)age increases 
above the reset minimum quarterly distribution. 

We anticipate that the holder of our incentive distribution rights would exercise this reset right in order to facilitate 
acquisitions or internal growth projects that would not be sufficiently accretive to cash distributions per unit without such conversion.  
However, the holder of our incentive distribution rights may transfer the incentive distribution rights at any time.  It is possible that the 
holder of our incentive distribution rights or a transferee could exercise this reset election at a time when we are experiencing declines 
in our aggregate cash distributions or at a time when the holders of the incentive distribution rights expect that we will experience 
declines in our aggregate cash distributions in the foreseeable future.  In such situations, the holders of the incentive distribution rights 
may be experiencing, or may expect to experience, declines in the cash distributions it receives related to the incentive distribution 
rights and may therefore desire to be issued our common units, which are entitled to specified priorities with respect to our 
distributions and which therefore may be more advantageous for them to own in lieu of the right to receive incentive distribution 
payments based on target distribution levels that are less certain to be achieved.  As a result, a reset election may cause our common 
unitholders to experience dilution in the amount of cash distributions that they would have otherwise received had we not issued new 
common units to the holders of the incentive distribution rights in connection with resetting the target distribution levels. 

The incentive distribution rights may be transferred to a third party without unitholder consent.  

The holder of our incentive distribution rights may transfer the incentive distribution rights to a third party at any time 
without the consent of our unitholders.  If the incentive distribution rights are transferred to a third party but our general partner retains 
its general partner interest, our general partner (and its owner, AMGP) may not have the same incentive to grow our partnership and 
increase quarterly distributions to unitholders over time as it would if it had retained indirect ownership of the incentive distribution 
rights. 

40 

Increases in interest rates could adversely impact our unit price and our ability to issue additional equity, to incur debt to 
capture growth opportunities or for other purposes, or to make cash distributions at our intended levels. 

If interest rates rise, the interest rates on our revolving credit facility, future credit facilities and debt offerings could be higher 

than current levels, causing our financing costs to increase accordingly.  As with other yield-oriented securities, our unit price is 
impacted by the level of our cash distributions and implied distribution yield.  The distribution yield is often used by investors to 
compare and rank related yield-oriented securities for investment decision-making purposes.  Therefore, changes in interest rates, 
either positive or negative, may affect the yield requirements of investors who invest in our units, and a rising interest rate 
environment could have an adverse impact on our unit price and our ability to issue additional equity, to incur debt to expand or for 
other purposes, or to make cash distributions at our intended levels. 

Our partnership agreement restricts the voting rights of unitholders owning 20% or more of our common units. 

(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:68)(cid:3)

person or group that owns 20% or more of any class of units then outstanding, other than our general partner, its affiliates (including 
Antero Resources), their transferees and persons who acquired such units with the prior approval of the board of directors of our 
general partner, cannot vote on any matter. 

Control of our general partner may be transferred to a third party without unitholder consent. 

Our general partner may transfer its general partner interest to a third party in a merger or in a sale of all or substantially all of 

its assets without the consent of our unitholders.  Furthermore, our partnership agreement does not restrict the ability of the owners of 
our general partner from transferring all or a portion of their respective ownership interest in our general partner to a third party.   The 
new owners of our general partner would then be in a position to replace the board of directors and officers of our general partner with 
its own choices and thereby exert significant control over the decisions made by the board of directors and officers.  This effectively 
(cid:83)(cid:72)(cid:85)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17) 

We may issue additional units, including units that are senior to the common units, without unitholder approval, which would 
(cid:71)(cid:76)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)wnership interests. 

Our partnership agreement does not limit the number of additional limited partner interests that we may issue at any time 

without the approval of our unitholders.  The issuance by us of additional common units or other equity securities of equal or senior 
rank will have the following effects: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:88)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:30) 

the amount of cash available for distribution on each unit may decrease; 

the ratio of taxable income to distributions may increase; 

the relative voting strength of each previously outstanding unit may be diminished; and 

the market price of the common units may decline. 

Future sales of common units in the public markets or otherwise, which sales could have an adverse impact on the trading 
price of the common units. 

As of February 8, 2019, Antero Resources holds 98,870,335 common units.  Additionally, we have agreed to provide Antero 

Resources with certain registration rights, pursuant to which we may be required to register the common units they hold under the 
Securities Act and applicable state securities laws.  Pursuant to the registration rights agreement and our partnership agreement, we 
may be required to undertake a future public or private offering of common units and use the net proceeds from such offering to 
redeem an equal number of common units held by Antero Resources. 

In November 2014, we filed a registration statement on Form S-8 under the Securities Act to register common units issuable 
under the Antero Midstream Partners Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:54)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)
Rule 144 limitations applicable to affiliates and the expiration of lock-up agreements, common units registered under the registration 
statement on Form S-8 will be available for resale immediately in the public market without restriction.  

41 

Future sales of common units in public or private markets could have an adverse impact on the price of the common units or 

on any trading market that may develop.  

Our general partner has a limited call right that may require unitholders to sell their common units at an undesirable time or 
price. 

If at any time our general partner and its affiliates (including Antero Resources) own more than 80% of the common units, 

our general partner will have the right, but not the obligation, which it may assign to any of its affiliates or to us, to acquire all, but not 
less than all, of the common units held by unaffiliated persons at a price equal to the greater of (i) the average of the daily closing 
price of the common units over the 20 trading days preceding the date three days before notice of exercise of the call right is first 
mailed and (ii) the highest per-unit price paid by our general partner or any of its affiliates for common units during the 90-day period 
preceding the date such notice is first mailed.  As a result, unitholders may be required to sell their common units at an undesirable 
time or price and may not receive any return or a negative return on their investment.  Unitholders may also incur a tax liability upon a 
sale of their units.  Our general partner is not obligated to obtain a fairness opinion regarding the value of the common units to be 
repurchased by it upon exercise of the limited call right.  There is no restriction in our partnership agreement that prevents our general 
partner from issuing additional common units and exercising its call right.  If our general partner exercised its limited call right, the 
effect would be to take us private and, if the units were subsequently deregistered, we would no longer be subject to the reporting 
requirements of the Securities Exchange Act of 1934, or the Exchange Act.  Antero Resources, which is an affiliate of our general 
partner, owns an aggregate of 52.8% of our common units.  

Your liability may not be limited if a court finds that unitholder action constitutes control of our business. 

A general partner of a partnership generally has unlimited liability for the obligations of the partnership, except for those 

contractual obligations of the partnership that are expressly made without recourse to the general partner.  Our partnership is organized 
under Delaware law, and we own assets and conduct business in West Virginia and Ohio.  You could be liable for any and all of our 
obligations as if you were a general partner if: 

(cid:120)(cid:3)

(cid:120)(cid:3)

a court or government agency determined that we were conducting business in a state but had not complied with that 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)(cid:68)(cid:85)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:88)(cid:87)(cid:72)(cid:30)(cid:3)(cid:82)(cid:85) 

your right to act with other unitholders to remove or replace the general partner, to approve some amendments to our 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:68)(cid:78)(cid:72)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17) 

Unitholders may have liability to repay distributions that were wrongfully distributed to them. 

Under certain circumstances, unitholders may have to repay amounts wrongfully returned or distributed to them.  Under 

Section 17-607 of the Delaware Act, we may not make a distribution to our unitholders if the distribution would cause our liabilities to 
exceed the fair value of our assets.  Delaware law provides that for a period of three years from the date of the impermissible 
distribution, limited partners who received the distribution and who knew at the time of the distribution that it violated Delaware law 
will be liable to the limited partnership for the distribution amount.  Substituted limited partners are liable for the obligations of the 
assignor to make contributions to the partnership that are known to the substituted limited partner at the time it became a limited 
partner and for unknown obligations if the liabilities could be determined from the partnership agreement.  Liabilities to partners on 
account of their partnership interest and liabilities that are non-recourse to the partnership are not counted for purposes of determining 
whether a distribution is permitted. 

The New York Stock Exchange does not require a publicly-traded partnership like us to comply with certain of its corporate 
governance requirements. 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:60)(cid:54)(cid:40)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:92)(cid:80)(cid:69)(cid:82)(cid:79)(cid:3)(cid:179)(cid:36)(cid:48)(cid:17)(cid:180)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:90)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)-traded partnership, the NYSE 

(cid:71)(cid:82)(cid:72)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:3)(cid:88)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:69)(cid:79)(cid:76)sh a 
compensation committee or a nominating and corporate governance committee.  Accordingly, unitholders do not have the same 
protections afforded to certain corporations that are subject to all of the NYSE corporate governance requirements.  Please read 
(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) 10.  Directors, Executive Officers, and Corporate Governance(cid:178)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:17)(cid:180) 

42 

Tax Risks to Common Unitholders 

Our tax treatment depends on our status as a partnership for federal income tax purposes, as well as us not being subject to a 
material amount of entity-level taxation.  If the IRS were to treat us as a corporation for federal income tax purposes, or if we 
were to become subject to entity-level taxation for state tax purposes, our cash available for distribution to our unitholders 
would be substantially reduced. 

The anticipated after tax economic benefit of an investment in our common units depends largely on our being treated as a 

partnership for federal income tax purposes. 

Despite the fact that we are organized as a limited partnership under Delaware law, we would be treated as a corporation for 

(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:88)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:92)(cid:3)(cid:68)(cid:3)(cid:179)(cid:84)(cid:88)(cid:68)(cid:79)(cid:76)(cid:73)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:180)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:37)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71) 
current Treasury Restrictions, we believe we satisfy the qualifying income requirement.  We have requested and obtained a favorable 
private letter ruling from the IRS to the effect that, based on the facts presented in the private letter ruling request, income from fresh 
water delivery services is qualifying income for federal income tax purposes.  We have not requested, and do not plan to request, a 
ruling from the IRS on any other matter affecting us.  Failing to meet the qualifying income requirement or a change in current law 
could cause us to be treated as a corporation for U.S. federal income tax purposes or otherwise subject us to taxation as an entity. 

If we were treated as a corporation for federal income tax purposes, we would pay U.S. federal income tax on our taxable 
income at the corporate tax rate.  Distributions to our unitholders would generally be taxed again as corporate distributions, and no 
income, gains, losses or deductions would flow through to our unitholders.  Because a tax would be imposed upon us as a corporation, 
our cash available for distribution to our unitholders would be substantially reduced.  Therefore, treatment of us as a corporation 
would result in a material reduction in the anticipated cash flows and after-tax return to our unitholders, likely causing a substantial 
reduction in the value of our common units. 

Our partnership agreement provides that if a law is enacted or existing law is modified or interpreted in a manner that 

subjects us to taxation as a corporation or otherwise subjects us to entity-level taxation for U.S. federal, state or local income tax 
purposes, the minimum quarterly distribution amount and the target distribution amounts may be adjusted to reflect the impact of that 
law or interpretation on us.  We own assets and conduct business in West Virginia and Ohio.  Several states have been evaluating 
ways to subject partnerships to entity-level taxation through the imposition of state income, franchise or other forms of taxation.  For 
example, Ohio imposes a commercial activity tax of 0.26% on taxable g(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:83)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:179)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:81)(cid:72)(cid:91)(cid:88)(cid:86)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:44)(cid:80)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
of a similar tax on us in other jurisdictions that we may expand to could substantially reduce our cash available for distribution to our 
unitholders. 

The tax treatment of publicly traded partnerships or an investment in our units could be subject to potential legislative, 
judicial or administrative changes and differing interpretations, possibly applied on a retroactive basis. 

The present U.S. federal income tax treatment of publicly traded partnerships, including us, or an investment in our common 

units, may be modified by administrative, legislative or judicial changes or differing interpretations at any time.  From time to time, 
members of Congress have proposed and considered substantive changes to the existing U.S. federal income tax laws that would 
affect publicly traded partnerships including a prior legislative proposal that would have eliminated the qualifying income exception to 
the treatment of all publicly traded partnerships as corporations upon which we rely for our treatment as a partnership for U.S. federal 
income tax purposes. 

In addition, the Treasury Department has issued, and in the future may issue, regulations interpreting those laws that affect 

publicly traded partnerships.  Although there are no current legislative or administrative proposals, there can be no assurance that there 
(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:92)(cid:3)(cid:39)(cid:72)(cid:83)(cid:68)(cid:85)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:83)(cid:85)(cid:72)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:79)(cid:76)(cid:73)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:70)ome rules 
in a manner that could impact our ability to qualify as a publicly traded partnership in the future. 

Any modification to the U.S. federal income tax laws may be applied retroactively and could make it more difficult or 

impossible for us to meet the exception for certain publicly traded partnerships to be treated as partnerships for U.S. federal income 
tax purposes.  We are unable to predict whether any changes or other proposals will ultimately be enacted.  Any future legislative 
changes could negatively impact the value of an investment in our common units.  Our unitholders are urged to consult with their own 
tax advisors with respect to the status of regulatory or administrative developments and proposals and their potential effect on their 
investment in our common units. 

43 

 If the IRS were to contest the federal income tax positions we take, it may adversely impact the market for our common units, 
and the costs of any such contest would reduce cash available for distribution to our unitholders.  

We have not requested a ruling from the IRS with respect to our treatment as a partnership for U.S. federal income tax 
purposes.  The IRS may adopt positions that differ from the conclusions of our counsel or from the positions we take.  It may be 
necessary to resort to administ(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:72)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:86)(cid:82)(cid:80)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:88)(cid:81)(cid:86)(cid:72)(cid:79)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:79)(cid:88)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:87)(cid:68)(cid:78)(cid:72)(cid:17)(cid:3)(cid:3)
(cid:36)(cid:3)(cid:70)(cid:82)(cid:88)(cid:85)(cid:87)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:86)(cid:82)(cid:80)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:88)(cid:81)(cid:86)(cid:72)(cid:79)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:70)(cid:79)(cid:88)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:87)(cid:68)(cid:78)(cid:72)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:92)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:86)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:53)(cid:54)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)ially 
and adversely impact the market for our common units and the price at which they trade.  Moreover, the costs of any contest between 
us and the IRS will result in a reduction in our cash available for distribution to our unitholders and thus will be borne indirectly by 
our unitholders. 

If the IRS makes audit adjustments to our income tax returns for tax years beginning after December 31, 2017, it (and some 
states) may assess and collect any taxes (including any applicable penalties and interest) resulting from such audit 
adjustments directly from us, in which case our cash available for distribution to our unitholders might be substantially 
reduced and our current and former unitholders may be required to indemnify us for any taxes (including any applicable 
penalties and interest) resulting from such audit adjustments that were paid on behalf of such unitholders. 

Pursuant to the Bipartisan Budget Act of 2015, for tax years beginning after December 31, 2017, if the IRS makes audit 

adjustments to our income tax returns, it (and some states) may assess and collect any taxes (including any applicable penalties and 
interest) resulting from such audit adjustments directly from us.  To the extent possible under the new rules, our general partner may 
elect to either pay the taxes (including any applicable penalties and interest) directly to the IRS or, if we are eligible, issue a revised 
information statement to each unitholder and former unitholder with respect to an audited and adjusted return.  Although our general 
partner may elect to have our unitholders and former unitholders take such audit adjustment into account and pay any resulting taxes 
(including applicable penalties or interest) in accordance with their interests in us during the tax year under audit, there can be no 
assurance that such election will be practical, permissible or effective in all circumstances.  As a result, our current unitholders may 
bear some or all of the tax liability resulting from such audit adjustment, even if such unitholders did not own units in us during the tax 
year under audit.  If, as a result of any such audit adjustment, we are required to make payments of taxes, penalties and interest, our 
cash available for distribution to our unitholders might be substantially reduced and our current and former unitholders may be 
required to indemnify us for any taxes (including any applicable penalties and interest) resulting from such audit adjustments that were 
(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:69)(cid:72)(cid:75)(cid:68)(cid:79)(cid:73)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:3)(cid:69)(cid:72)(cid:74)(cid:76)(cid:81)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)prior to December 31, 2017. 

Even if unitholders do not receive any cash distributions from us, unitholders will be required to pay taxes on their share of 
our taxable income. 

Unitholders are required to pay federal income taxes and, in some cases, state and local income taxes on their share of our 

taxable income, whether or not they receive cash distributions from us.  Unitholders may not receive cash distributions from us equal 
to their share of our taxable income or even equal to the actual tax due from them with respect to that income. 

In response to current market conditions, we may engage in transactions to deliver and manage our liquidity that may result 

in income and gain to our unitholders without a corresponding cash distribution.  For example, if we sell assets and use the proceeds to 
repay existing debt or fund capital expenditures, unitholders may be allocated taxable income and gain resulting from the sale without 
receiving a cash distribution.  Further, taking advantage of opportunities to reduce our existing debt, such as debt exchanges, debt 
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(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:180)(cid:12)(cid:3)(cid:69)(cid:72)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:17)(cid:3)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86) may be allocated COD income, and income tax liabilities 
arising therefrom may exceed cash distributions.  The ultimate effect of any such allocations will depend on the unitholder's individual 
tax position with respect to its units.  Unitholders are encouraged to consult their tax advisors with respect to the consequences to them 
of COD income. 

Tax gain or loss on the disposition of our common units could be more or less than expected. 

If a unitholder sells common units, such unitholder will recognize a gain or loss equal to the difference between the amount 

(cid:85)(cid:72)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)share of our 
(cid:81)(cid:72)(cid:87)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:70)ommon units, the amount, if any, of such prior excess distributions with 
respect to the units that unitholder sells will, in effect, become taxable income to such unitholder if the units are sold at a price greater 
(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)units, even if the price the unitholder receives is less than its original cost.  In addition, because 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:81)(cid:82)(cid:81)(cid:85)(cid:72)(cid:70)(cid:82)(cid:88)(cid:85)(cid:86)(cid:72)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:86)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72) unitholder 
may incur a tax liability in excess of the amount of cash it receives from the sale. 

44 

(cid:36)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:74)(cid:68)(cid:76)(cid:81)(cid:15)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)

taxed as ordinary income to such unitholder due to potential recapture items, including depreciation recapture.  Thus, a unitholder may 
recognize both ordinary income and capital loss from the sale of units if the amount realized on a sale of such units is less than such 
(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:49)(cid:72)(cid:87) capital loss may only offset capital gains and, in the case of individuals, up to $3,000 of 
ordinary income per year.  In the taxable period in which a unitholder sells its units, such unitholder may recognize ordinary income 
from our allocations of income and gain to such unitholder prior to the sale and from recapture items that generally cannot be offset by 
any capital loss recognized upon the sale of units. 

Unitholders may be subject to limitation on their ability to deduct interest expense incurred by us. 

In general, we are entitled to a deduction for interest paid or accrued on indebtedness properly allocable to our trade or 

business during our taxable year.  However, under the Tax Cuts and Jobs Act, for taxable years beginning after December 31, 2017, 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:71)(cid:72)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:179)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:88)(cid:80)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:22)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:179)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:17)(cid:180)(cid:3)(cid:3)
For the purposes of this limitation, our adjusted taxable income is computed without regard to any business interest expense or 
business interest income, and in the case of taxable years beginning before January 1, 2022, any deduction allowable for depreciation, 
amortization, or depletion. 

Non-U.S. unitholders will be subject to U.S. taxes and withholding with respect to their income and gain from owning our 
units. 

Non-U.S. unitholders are generally taxed and subject to income tax filing requirements by the United States on income 

effectively connected with a U.S. trade or business.  Income allocated to our unitholders and any gain from the sale of our units will 
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:179)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:15)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:81)(cid:82)(cid:81)-U.S. unitholder 
will be subject to withholding at the highest applicable effective tax rate and a non-U.S. unitholder who sells or otherwise disposes of 
a unit will also be subject to U.S. federal income tax on the gain realized from the sale or disposition of that unit. 

The Tax Cuts and Jobs Act imposes a withholding obligation of 10% of the amount realized upon a non-(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)

sale or exchange of an interest in a partnership that is engaged in a U.S. trade or business.  However, due to challenges of 
administering a withholding obligation applicable to open market trading and other complications, the IRS has temporarily suspended 
the application of this withholding rule to open market transfers of interests in publicly traded partnerships pending promulgation of 
regulations or other guidance that resolves the challenges.  It is not clear if or when such regulations or other guidance will be issued.  
Non-U.S. unitholders should consult a tax advisor before investing in our common units. 

Tax-exempt entities face unique tax issues from owning our common units that may result in adverse tax consequences to 
them. 

Investment in our common units by tax-exempt entities, such as employee benefit plans and individual retirement accounts 

(known as IRAs) raises issues unique to them.  For example, virtually all of our income allocated to organizations that are exempt 
from U.S. federal income tax, including IRAs and other retirement plans, will be unrelated business taxable income and will be 
taxable to them.  With respect to taxable years beginning after December 31, 2017, subject to the proposed aggregation rules for 
certain similarly situated businesses or activities issued by the Treasury Department, a tax-exempt entity with more than one unrelated 
trade or business (including by attribution from investment in a partnership such as ours) is required to compute the unrelated business 
taxable income of such tax-exempt entity separately with respect to each such trade or business (including for purposes of determining 
any net operating loss deduction).  As a result, for years beginning after December 31, 2017, it may not be possible for tax-exempt 
entities to utilize losses from an investment in our partnership to offset unrelated business taxable income from another unrelated trade 
or business and vice versa.  Tax-exempt entities should consult a tax advisor before investing in our common units. 

We treat each purchaser of common units as having the same tax benefits without regard to the common units actually 
purchased.  The IRS may challenge this treatment, which could adversely affect the value of the common units. 

Because we cannot match transferors and transferees of our common units and because of other reasons, we have adopted 

certain methods for allocating depreciation and amortization deductions that may not conform to all aspects of existing Treasury 
Regulations.  Our counsel is unable to opine as to the validity of this approach.  A successful IRS challenge to the use of these 
methods could adversely affect the amount of tax benefits available to our unitholders.  It also could affect the timing of these tax 
(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:81)(cid:72)(cid:74)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)common 
(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:86)(cid:17)(cid:3) 

45 

We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our common units 
each month based upon the ownership of our common units on the first day of each month, instead of on the basis of the date a 
particular unit is transferred.  The IRS may challenge this treatment, which could change the allocation of items of income, 
gain, loss and deduction among our unitholders. 

We generally prorate our items of income, gain, loss and deduction between transferors and transferees of our units each 

month based upo(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:85)(cid:86)(cid:87)(cid:3)(cid:71)(cid:68)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:80)(cid:82)(cid:81)(cid:87)(cid:75)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:39)(cid:68)(cid:87)(cid:72)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:72)(cid:68)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)
a particular unit is transferred.  Similarly, we generally allocate (i) certain deductions for depreciation of capital additions, (ii) gain or 
loss realized on a sale or other disposition of our assets, and (iii) in the discretion of the general partner, any other extraordinary item 
of income, gain, loss or deduction based upon ownership on the Allocation Date.  Treasury Regulations allow a similar monthly 
simplifying convention, but such regulations do not specifically authorize all aspects of our proration method.  If the IRS were to 
challenge our proration method, we may be required to change the allocation of items of income, gain, loss and deduction among our 
unitholders.  

(cid:36)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:90)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:79)(cid:82)(cid:68)(cid:81)(cid:3)(cid:11)(cid:72)(cid:17)(cid:74)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:79)(cid:82)(cid:68)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:179)(cid:86)(cid:75)(cid:82)(cid:85)(cid:87)(cid:3)(cid:86)(cid:72)(cid:79)(cid:79)(cid:72)(cid:85)(cid:180)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:68)(cid:3)(cid:86)(cid:75)(cid:82)(cid:85)(cid:87)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)s) may 
be considered to have disposed of those units.  If so, the unitholder would no longer be treated for tax purposes as a partner 
with respect to those units during the period of the loan and could recognize gain or loss from the disposition. 

Because there are no specific rules governing the U.S. federal income tax consequence of loaning a partnership interest, a 
unitholder whose units are the subject of a securities loan may be considered to have disposed of the loaned units.  In that case, the 
unitholder may no longer be treated for tax purposes as a partner with respect to those units during the period of the loan to the short 
seller and the unitholder may recognize gain or loss from such disposition.  Moreover, during the period of the loan, any of our 
income, gain, loss or deduction with respect to those units may not be reportable by the unitholder and any cash distributions received 
by the unitholder as to those units could be fully taxable as ordinary income.  Unitholders desiring to assure their status as partners and 
avoid the risk of gain recognition from a securities loan are urged to consult a tax advisor to determine whether it is advisable to 
modify any applicable brokerage account agreements to prohibit their brokers from borrowing their units. 

(cid:58)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:82)(cid:79)(cid:82)(cid:74)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)ons of income, gain, loss and 
deduction.  The IRS may challenge these methodologies or the resulting allocations, and such a challenge could adversely 
affect the value of our common units. 

In determining the items of income, gain, loss and deduction allocable to our unitholders, we must routinely determine the 

fair market value of our assets.  Although we may from time to time consult with professional appraisers regarding valuation matters, 
we make many fair market value estimates using a methodology based on the market value of our common units as a means to 
measure the fair market value of our assets.  The IRS may challenge these valuation methods and the resulting allocations of income, 
gain, loss and deduction. 

A successful IRS challenge to these methods or allocations could adversely affect the timing or amount of taxable income or 
loss being allocated to our unitholders.  It also could affect the amount of gain recognized from the sale of our common units, have a 
negative impact on the value of our com(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)
additional deductions. 

Unitholders will likely be subject to state and local taxes and income tax return filing requirements in jurisdictions where they 
do not live as a result of investing in our common units. 

In addition to U.S. federal income taxes, our unitholders may be subject to other taxes, including foreign, state and local 

taxes, unincorporated business taxes and estate, inheritance or intangible taxes that are imposed by the various jurisdictions in which 
we conduct business or own property now or in the future, even if they do not live in any of those jurisdictions.  Unitholders will 
likely be required to file foreign, state and local income tax returns and pay state and local income taxes in some or all of these various 
jurisdictions.  Further, unitholders may be subject to penalties for failure to comply with those requirements. 

We own assets and conduct business in West Virginia and Ohio, each of which imposes a personal income tax on individuals.  

If we make acquisitions or expand our business, we may own assets or conduct business in additional states that impose a personal 
(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:17)(cid:3)(cid:3)(cid:44)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)s federal, foreign, state and local tax returns and pay any taxes 
due in these jurisdictions.  Our counsel has not rendered an opinion on the state or local tax consequences of an investment in our 
common units. Unitholders should consult with their own tax advisors regarding the filing of such tax returns, the payment of such 
taxes, and the deductibility of any taxes paid. 

46 

Item 1B.  Unresolved Staff Comments 

Not applicable. 

Item 3.  Legal Proceedings  

Our operations are subject to a variety of risks and disputes normally incident to our business.  As a result, we may, at any 

given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business.  However, we are not 
currently subject to any material litigation. 

We maintain insurance policies with insurers in amounts and with coverage and deductibles that we, with the advice of our 

insurance advisors and brokers, believe are reasonable and prudent.  We cannot, however, assure you that this insurance will be 
adequate to protect us from all material expenses related to potential future claims for personal and property damage or that these 
levels of insurance will be available in the future at economical prices. 

Item 4.  Mine Safety Disclosures 

Not applicable. 

PART II 

Item (cid:24)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:44)(cid:86)(cid:86)(cid:88)(cid:72)(cid:85)(cid:3)(cid:51)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) 

Common Units  

(cid:50)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:92)(cid:80)(cid:69)(cid:82)(cid:79)(cid:3)(cid:179)(cid:36)(cid:48)(cid:17)(cid:180)(cid:3)(cid:50)(cid:81)(cid:3)(cid:41)(cid:72)(cid:69)(cid:85)(cid:88)(cid:68)(cid:85)(cid:92) 8, 2019, our 

common units were held by 2 holders of record.  The number of holders does not include the holders for whom units are held in a 
(cid:179)(cid:81)(cid:82)(cid:80)(cid:76)(cid:81)(cid:72)(cid:72)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:86)(cid:87)(cid:85)(cid:72)(cid:72)(cid:87)(cid:180)(cid:3)(cid:81)(cid:68)(cid:80)(cid:72)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:72)(cid:69)(cid:85)(cid:88)(cid:68)(cid:85)(cid:92)(cid:3)(cid:20)(cid:22)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)affiliates owned 98,870,335 of our 
common units, which represents a 52.8% limited partner interest in us. 

Issuer Purchases of Equity Securities 

The following table sets forth our common unit repurchase activity for each period presented:  

Period 
October 1, 2018 (cid:177) October 31, 2018 
November 1, 2018 (cid:177) November 30, 2018 
December 1, 2018 (cid:177) December 31, 2018 

Number of 
Common Units 
Purchased 
 548 
 146,486 
 (cid:178) 

Average Price 
Paid per 
Common Unit 
 32.72 

 28.20 
 (cid:178) 

  $ 
  $ 
  $ 

Total Number of 
Common Units 
Purchased as Part of 
Publicly Announced 
Plans 

 (cid:178) 
 (cid:178) 
 (cid:178) 

Maximum Number of 
Common Units that 
May Yet be Purchased 
Under the Plan 
N/A 
N/A 
N/A 

Common units repurchased represent common units withheld  from issuance upon the vesting of phantom units under the 

Midstream LTIP to satisfy tax withholding obligations.  

Securities Authorized for Issuance Under Equity Compensation Plans 

In connection with the completion of our IPO, our general partner adopted the Midstream LTIP, which permits the issuance 
of up to 10,000,000 common units.  Restricted unit grants were made to each of the independent directors of our general partner and 
phantom unit grants have been made to each of the executive officers of our general partner and certain employees of Antero 
Resources under the (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:20)(cid:17)(cid:3)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:177) Compensation 
Discussion and Analysis (cid:177) (cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:180) 

Our Minimum Quarterly Distribution 

Our partnership agreement provides for a minimum quarterly distribution of $0.17 per unit for each whole quarter, or $0.68 

per unit on an annualized basis.  

47 

 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
     
  
   
 
 
 
   
 
 
 
   
 
 
 
 
 
The board of directors of our general partner has adopted a policy pursuant to which distributions for each quarter will be 

paid to the extent we have sufficient cash after establishment of cash reserves and payment of fees and expenses, including payments 
to our general partner and its affiliates.  Our ability to pay the minimum quarterly distribution is subject to various restrictions and 
other factors.  

If cash distributions to our unitholders exceed $0.1955 per common unit in any quarter, our unitholders and the holders of our 

IDRs will receive distributions according to the following percentage allocations: 

Total Quarterly Distribution 
Target Amount 
above $0.1955 up to $0.2125 
above $0.2125 up to $0.2550 
above $0.2550 

Marginal Percentage 
Interest in Distributions 

  Unitholders  

Holder of IDRs  

 85 %   
 75 %   
 50 %   

 15 %   
 25 %   
 50 %   

There is no guarantee that we will make cash distributions to our unitholders.  We do not have a legal or contractual 
obligation to pay distributions quarterly or on any other basis or at our minimum quarterly distribution rate or at any other rate.  Our 
cash distribution policy may be changed at any time and is subject to certain restrictions, including our partnership agreement, our 
credit facility and applicable partnership law. 

General Partner Interest 

Our general partner owns a non-economic general partner interest in us, which does not entitle it to receive cash distributions.  

However, the owner of our general partner controls the owner of our IDRs and is entitled to receive a portion of the distributions on 
our IDRs due to its indirect ownership of our IDRs.  

Cash Distributions and Conversion of Subordinated Units 

On January 16, 2019, the board of directors of our general partner declared a cash distribution of $0.47 per unit for the 

quarter ended December 31, 2018.  The distribution was paid on February 13, 2019 to unitholders of record as of February 1, 2019. 

Antero Resources was issued all of our subordinated units in connection with our IPO.  Under the terms of our partnership 

agreement, the subordination period expired on February 9, 2017 and all 75,940,957 subordinated units were converted into common 
units on a one-for-one basis. 

48 

 
 
 
 
 
 
 
 
  
 
 
     
  
  
 
 
 
Item 6.  Selected Financial Data  

The following table presents our selected historical financial data, for the periods and as of the dates indicated, for the 
Partnership and our Predecessor.  (cid:50)(cid:88)(cid:85)(cid:3)(cid:51)(cid:85)(cid:72)(cid:71)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:74)athering and compression 
assets and related operations on a carve-out basis.  The Partnership was originally formed as Antero Resources Midstream LLC and 
(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:51)(cid:50)(cid:3)(cid:82)(cid:81)(cid:3)(cid:49)(cid:82)(cid:89)ember 10, 2014.  The 
information in this report includes periods prior to the Water Acquisition, which occurred on September 23, 2015.  Consequently, the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:87)(cid:85)(cid:82)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:70)(cid:68)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)nted to include the historical 
results of Antero Water because the Water Acquisition was between entities under common control.  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)
through September 23, 2015 consisted entirely of fresh water delivery. 

The selected financial data presented below are qualified in their entirety by reference to, and should be read in conjunction 

(cid:90)(cid:76)(cid:87)(cid:75)(cid:15)(cid:3)(cid:181)(cid:181)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:26)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:182)(cid:182)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71) 
financial statements and related notes included elsewhere in this report: 

(in thousands, except per unit amounts) 
Revenue: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)Antero Resources 
Gain on sale of assets(cid:177)third-party 

Total revenue 
Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent 

acquisition consideration 

Accretion of asset retirement obligations 
Total operating expenses 
Operating income 

Interest expense, net 
Equity in earnings of unconsolidated affiliates 
Net income and comprehensive income 

Pre-IPO net income attributed to parent 
Pre-Water Acquisition net income attributed to parent 
Net income attributable to incentive distribution rights 

Limited partners' interest in net income 

2014 

Year ended December 31, 
2016 

2017 

2015 

  $   258,029 
 8,245 
 (cid:178) 
 (cid:178) 
 266,274 

 386,164 
 1,160 
 (cid:178) 
 (cid:178) 
 387,324 

 585,517 
 835 
 (cid:178) 
 3,859 
 590,211 

 772,233 
 264 
 (cid:178) 
 (cid:178) 
 772,497 

2018 

 1,027,015 
 924 
 583 
 (cid:178) 
 1,028,522 

 48,821 

 78,852 

  161,587 

  232,538 

   316,423 

 18,748 
 11,618 
 (cid:178) 
 53,029 

 28,736 
 22,470 
 (cid:178) 
 86,670 

 28,114 
 26,049 
 (cid:178) 
 99,861 

 31,529 
 27,283 
 23,431 
  119,562 

 40,556 
 21,073 
 5,771 
   130,013 

 (cid:178) 
 (cid:178) 
      132,216 
    134,058 

 (6,183)   
 (cid:178) 
$   127,875 
 (98,219) 
 (22,234) 
 (cid:178) 
 7,422   

  $ 

 3,333 
 (cid:178) 
  220,061 
  167,263 

 (8,158)   
 (cid:178) 
 159,105 
 (cid:178) 
 (40,193) 
 (1,264) 
 117,648   

 16,489 
 (cid:178) 
  332,100 
  258,111 
   (21,893)   

 485 
 236,703 
 (cid:178) 
 (cid:178) 
 (16,944) 
 219,759   

 13,476 
 (cid:178) 
  447,819 
  324,678 
   (37,557)  
 20,194 
 307,315 
 (cid:178) 
 (cid:178) 
 (69,720)
 237,595   

 (93,019)   
 135 
 420,952 
   607,570 

 (61,906)   
 40,280 
 585,944 
 (cid:178) 
 (cid:178) 
 (142,906) 
 443,038   

Net income per limited partner unit(cid:177)basic 
Net income per limited partner unit(cid:177)diluted 

$ 
$ 

 0.05 
 0.05 

 0.74 
 0.74 

 1.24 
 1.24 

 1.28 
 1.28 

 2.37 
 2.36 

Weighted average limited partner units 

outstanding(cid:177)basic 

Weighted average limited partner units 

outstanding(cid:177)diluted 

 151,882   

 158,479   

 176,647   

 185,630   

 187,048   

 151,882   

 158,527   

 176,801   

 186,083   

 187,398   

49 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
  
   
   
   
   
 
   
   
   
   
   
 
   
   
   
   
   
 
   
   
   
   
   
 
   
   
   
   
   
 
 
 
  
 
  
 
  
 
 
 
  
    
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
   
     
     
     
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands) 
Balance sheet data (at period end): 
Cash and cash equivalents 
Property and equipment, net 
Total assets 
Long-term indebtedness 
(cid:55)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79) 
Cash flows data: 
Net cash provided by operating activities 
Net cash used in investing activities 
Net cash provided by (used in) financing 

activities 

Other financial data: 
Adjusted EBITDA(1) 

2014 

2015 

December 31, 
2016 

2017 

2018 

     $ 

 230,192   
$  1,531,595  
$  1,816,610  
$ 
 115,000   
$  1,620,903   

 6,883       

 14,042        

  1,893,826  
  1,980,032  
 620,000  
  1,082,745  

 2,195,879  
 2,349,895  
 849,914   
 1,222,810  

 8,363  
 2,605,602  
 3,042,209  
 1,196,000  
 1,516,469  

 (cid:178)  
  2,958,415  
  3,546,417  
  1,632,147  
  1,691,508  

$ 
 169,433   
$   (797,505)  

 259,678  
 (445,455)  

 378,607   
 (478,163)  

 475,796   
 (779,818)  

 657,560   
   (666,587)  

$ 

 858,264   

 (37,532)  

 106,715   

 298,343   

 664   

$ 

 198,705   

 279,736  

 404,353   

 528,625   

 717,375   

(1)  For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to its 
most directly comparable financial (cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:178)Non-GAAP 
(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Non-GAAP Financial Measures 

We use Adjusted EBITDA as an important indicator of our performance.  We define Adjusted EBITDA as net income before 

interest expense, impairment, depreciation, accretion and changes in fair value of contingent acquisition consideration, accretion of 
asset retirement obligations, equity-based compensation, excluding equity in earnings of unconsolidated affiliates and gain on sale of 
assets, and including cash distributions from unconsolidated affiliates.   

 We use Adjusted EBITDA to assess: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

the financial performance of our assets, without regard to financing methods in the case of Adjusted EBITDA, capital 
structure or historical cost basis; 

our operating performance and return on capital as compared to other publicly traded partnerships in the midstream 
energy sector, without regard to financing or capital structure; and 

the viability of acquisitions and other capital expenditure projects. 

We define Distributable Cash Flow as Adjusted EBITDA less interest paid, income tax withholding payments and cash 

reserved for payments of income tax withholding upon vesting of equity-based compensation awards, cash reserved/paid for bond 
interest and maintenance capital expenditures.  We use Distributable Cash Flow as a performance metric to compare the cash 
generating performance of the Partnership from period to period and to compare the cash generating performance for specific periods 
to the cash distributions (if any) that are expected to be paid to unitholders.  Distributable Cash Flow does not reflect changes in 
working capital balances. 

 Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures.  The GAAP measure most directly 

comparable to Adjusted EBITDA and Distributable Cash Flow is net income.  The non-GAAP financial measures of Adjusted 
EBITDA and Distributable Cash Flow should not be considered as alternatives to the GAAP measure of net income.  Adjusted 
EBITDA and Distributable Cash Flow are not presentations made in accordance with GAAP and have important limitations as an 
analytical tool because they include some, but not all, items that affect net income and Adjusted EBITDA.  You should not consider 
Adjusted EBITDA and Distributable Cash Flow in isolation or as a substitute for analyses of results as reported under GAAP.  Our 
definition of Adjusted EBITDA and Distributable Cash Flow may not be comparable to similarly titled measures of other partnerships.  

(cid:179)(cid:54)(cid:72)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:40)(cid:37)(cid:44)(cid:55)(cid:39)(cid:36)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:72)(cid:68)(cid:80)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)

operating performance and as a basis for strategic planning and forecasting.  Segment Adjusted EBITDA is a non-GAAP financial 
measure that we define as operating income before equity-based compensation expense, impairment of property and equipment, 
depreciation, accretion and changes in fair value of contingent acquisition consideration, accretion of asset retirement obligations, 
excluding equity in earnings of unconsolidated affiliates and gain on sale from assets, and including cash distributions from 
unconsolidated affiliates.  Operating income represents net income before interest expense and equity in earnings of unconsolidated 

50 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
affiliates, and is the most directly comparable GAAP financial measure to Segment Adjusted EBITDA because we do not account for 
interest expense on a segment basis.  The following tables represent a reconciliation of our operating income to Segment Adjusted 
EBITDA for the periods presented:  

(in thousands) 
Year ended December 31, 2014 

Operating income 
Depreciation 
Equity-based compensation 

Segment and consolidated Adjusted EBITDA 

Year ended December 31, 2015 

Operating income 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Equity-based compensation 

Segment and consolidated Adjusted EBITDA 

Year ended December 31, 2016 

Operating income 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Equity-based compensation 
Distributions from unconsolidated affiliates 
Gain on sale of assets(cid:177)third-party 

Gathering and 
Processing 

Water Handling 
and Treatment   

Consolidated Total  

      $ 

  $ 

      $ 

  $ 

      $ 

 21,452   
 36,789 
 8,619 
 66,860 

 103,523   
 60,838 

 (cid:178) 
 17,840 
 182,201 

 112,606       
 16,240 
 2,999 
 131,845 

 63,740       
 25,832 

 3,333 
 4,630 
 97,535 

 134,058   
 53,029 
 11,618 
 198,705 

 167,263   
 86,670 

 3,333 
 22,470 
 279,736 

 170,861   
 69,962 

 87,250       
 29,899 

 258,111   
 99,861 

 (cid:178) 
 19,714 
 7,702 
 (3,859)   

 16,489 
 6,335 
 (cid:178) 
 (cid:178) 
 139,973 

 117,603       

 (cid:178)  
 33,190 

 13,476 
 7,553 
 (cid:178) 
 171,822 

 271,307       

 (cid:178)  
 46,763 

 (93,019)  
 135 
 4,555 
 (cid:178) 
 (cid:178) 
 229,741 

 16,489 
 26,049 
 7,702 
 (3,859)   

 404,353 

 324,678   
 23,431   
 119,562 

 13,476 
 27,283 
 20,195 
 528,625 

 607,570   
 5,771  
 130,013 

 (93,019)   
 135 
 21,073 
 46,415 

 (583)   

 717,375 

Segment and consolidated Adjusted EBITDA 

  $ 

 264,380 

Year ended December 31, 2017 

Operating income 
Impairment of property and equipment expense 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Equity-based compensation 
Distributions from unconsolidated affiliates 

Segment and consolidated Adjusted EBITDA 

Year ended December 31, 2018 

Operating income 
Impairment of property and equipment expense 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Accretion of asset retirement obligations 
Equity-based compensation 
Distributions from unconsolidated affiliates 
Gain on sale of assets(cid:177)Antero Resources 

      $ 

  $ 

      $ 

 207,075   
 23,431   
 86,372 

 (cid:178) 
 19,730 
 20,195 
 356,803 

 336,263   
 5,771  
 83,250 

 (cid:178) 
 (cid:178) 
 16,518 
 46,415 

 (583)   

Segment and consolidated Adjusted EBITDA 

  $ 

 487,634 

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table represents a reconciliation of our Adjusted EBITDA and Distributable Cash Flow to the most directly 

comparable GAAP financial measures for the periods presented:  

(in thousands) 
Reconciliation of Net Income to Adjusted EBITDA 
and Distributable Cash Flow: 
Net income 

Interest expense, net 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent 

acquisition consideration 

Accretion of asset retirement obligations 
Equity-based compensation 
Equity in earnings of unconsolidated affiliates 
Distributions from unconsolidated affiliates 
Gain on sale of assets(cid:177)Antero Resources 
Gain on sale of assets(cid:177)third-party 

Adjusted EBITDA 

Pre-IPO net income attributed to parent 
Pre-IPO depreciation attributed to parent 
Pre-IPO equity-based compensation attributed to 

parent 

Pre-IPO interest expense attributed to parent 
Pre-Water Acquisition net income attributed to 

parent 

Pre-Water Acquisition depreciation attributed to 

parent 

Pre-Water Acquisition equity-based compensation 

attributed to parent 

Pre-Water Acquisition interest expense attributed to 

parent 
Interest paid 
Decrease (increase) in cash reserved for bond 

interest(1) 

Income tax withholding upon vesting of Antero 

Midstream Partners equity-based compensation 
awards 

Maintenance capital expenditures(2) 

Distributable cash flow  

2014 

Year ended December 31, 
2016 

2015 

2017 

2018 

     $   127,875   
 6,183  
 (cid:178)  
 53,029 

 159,105   
 8,158  
 (cid:178)  
 86,670 

  236,703  
 21,893  
 (cid:178)  
 99,861 

  307,315       
 37,557   
 23,431   
 119,562 

  585,944   
 61,906   
 5,771  
  130,013   

 (cid:178) 
 (cid:178) 
 11,618 
 (cid:178) 
 (cid:178) 
 (cid:178) 
 (cid:178) 
 198,705 
 (98,219)     
 (43,419)     

 3,333 
 (cid:178) 
 22,470 
 (cid:178) 
 (cid:178) 
 (cid:178) 
 (cid:178) 
 279,736 
 (cid:178) 
 (cid:178) 

 (8,697)     
 (5,358)     

 (cid:178) 
 (cid:178) 

 (22,234)     

 (40,193)     

 (3,086)     

 (18,767)     

 (654)     

 (3,445)     

 (359)     
 (331)   

 (2,326)     
 (5,149)   

 16,489 
 (cid:178) 
 26,049 

 (485)    
 7,702 
 (cid:178) 
 (3,859)    

 404,353 
 (cid:178) 
 (cid:178) 

 13,476 
 (cid:178) 
 27,283 
 (20,194)   
 20,195 
 (cid:178) 
 (cid:178) 
 528,625 
 (cid:178) 
 (cid:178) 

   (93,019)  
 135   
 21,073   
   (40,280)  
 46,415   
 (583)  
 (cid:178)  
  717,375   
 (cid:178)  
 (cid:178)  

 (cid:178) 
 (cid:178) 

 (cid:178) 

 (cid:178) 

 (cid:178) 

 (cid:178) 

 (cid:178) 
 (cid:178) 

 (cid:178) 

 (cid:178) 

 (cid:178) 

 (cid:178) 

   (13,494)  

   (46,666)   

 (cid:178)  
 (cid:178)  

 (cid:178)  

 (cid:178)  

 (cid:178)  

 (cid:178)  
   (62,844)  

 (cid:178) 

 (cid:178) 

   (10,481)  

 291 

 (cid:178)  

 (cid:178) 
 (1,157)   
 15,191 

 (4,806)   
 (13,097)   
 191,953 

 (5,636)  
   (21,622)  
  353,120 

 (5,945)   
   (55,159)   
  421,146 

 (5,529)  
   (52,729)  
  596,273   

  $ 

(1)  (cid:38)(cid:68)(cid:86)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:69)(cid:82)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:24)(cid:17)(cid:22)75% senior notes outstanding during the period that is paid on 

a semi-annual basis on March 15th and September 15th of each year. 

(2)  Maintenance capital expenditures represent that portion of our estimated capital expenditures associated with (i) the connection of 
new wells to our gathering and processing systems that we believe will be necessary to offset the natural production declines 
Antero Resources will experience on its wells over time, and (ii) water delivery to new wells necessary to maintain the average 
throughput volume on our systems. 

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
 
 
 
 
     
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
   
 
   
   
   
   
 
   
   
   
   
 
 
   
   
   
   
 
 
   
   
   
   
   
   
   
 
 
   
   
   
   
 
 
   
   
   
 
 
   
   
   
   
 
   
   
   
 
 
   
   
   
 
 
   
   
   
 
 
   
   
   
 
 
   
   
 
 
   
   
 
 
   
   
 
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item (cid:26)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86) 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with 

our consolidated financial statements and related notes included elsewhere in this report.  The information provided below 
supplements, but does not form part of, our financial statements.  This discussion contains forward-looking statements that are based 
on the views and beliefs of our management, as well as assumptions and estimates made by our management.  Actual results could 
differ materially from such forward-looking statements as a result of various risk factors, including those that may not be in the 
control of management.  For further information on items that could impact our future operating performance or financial condition, 
(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) (cid:20)(cid:36)(cid:17)(cid:3)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:179)(cid:38)(cid:68)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:41)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)-L(cid:82)(cid:82)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180)(cid:3)
We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable 
law. 

Overview 

We are a growth-oriented master limited partnership formed by Antero Resources to own, operate and develop midstream 

(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)ions, and 
interests in processing and fractionation plants that collect and process production from Antero R(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
Utica Shales in West Virginia and Ohio.  Our assets also include two independent fresh water delivery systems that deliver fresh water 
from the Ohio River and several regional waterways and a wastewater treatment facility that was placed in service in 2018.  These 
fresh water delivery systems consist of permanent buried pipelines, surface pipelines and fresh water storage facilitates, as well as 
pumping stations and impoundments to transport the fresh water throughout the pipelines.  The Partnership also owns water treatment 
(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:38)(cid:79)(cid:72)(cid:68)(cid:85)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:47)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)
Other fluid handling services include third party services for (cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
operating areas managed by Antero Midstream.   We believe that our strategically located assets and our relationship with Antero 
Resources have allowed us to become a leading midstream energy company serving the Marcellus and Utica Shale plays.  

Simplification Agreement 

On February 26, 2018, we announced that the board of directors of our general partner formed a conflicts committee 
composed solely of directors who satisfy the requirements for (cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:77)(cid:88)(cid:81)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
formation of the special committee at Antero Resources, and a conflicts committee at AMGP, the sole member of our general 
partner.  (cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)s to explore, review and evaluate potential transactions involving the 
Partnership, on October 9, 2018, we announced that we, AMGP and certain of their affiliates entered into the Simplification 
Agreement, pursuant to which, among other things, (1) AMGP will be converted from a limited partnership to a corporation under the 
laws of the State of Delaware, to be named Antero Midstream Corporation; (2) an indirect, wholly owned subsidiary of New AM will 
be merged with and into the Partnership, with the Partnership surviving the merger as an indirect, wholly owned subsidiary of New 
AM and (3) all the issued and outstanding Series B Units representing limited liability company interests of IDR Holdings will be 
exchanged for an aggregate of approximately 17.35 mil(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Partnership will be a wholly owned subsidiary of New AM and former shareholders of AMGP, unitholders of the Partnership and 
(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)stock. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:180) 

Recent Trends and Uncertainties  

The gathering and compression agreement with Antero Resources is based on fixed fee structures, and we intend to continue 

to pursue additional fixed fee opportunities with Antero Resources and third parties in order to avoid direct commodity price exposure.  
However, to the extent that our future contractual arrangements with Antero Resources or third parties do not provide for fixed fee 
structures, we may become subject to commodity price risk.  We are subject to commodity price risks to the extent that they impact 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:3)(cid:68)nd therefore our gathering and water handling volumes.  

During 2019, we plan to expand our existing Marcellus and Utica Shale gathering, compression, and water handling and 

(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
completion capital budget is $1.1 billion to $1.25 billion.  Antero Resources plans to operate an average of five drilling rigs and 
complete between 115 and 125 horizontal wells, substantially all of which are located on acreage dedicated to us.  A further or 
extended decline in commodity prices could cause some of the development and production projects of Antero Resources or third 

53 

parties to be uneconomic or less profitable, which could reduce gathering and water handling and treatment volumes in our current 
and future potential areas of operation.  Those reductions in gathering and water handling and treatment volumes could reduce our 
revenue and cash flows and adversely affect our ability to make cash distributions to our unitholders. 

Cash Distributions 

The board of directors of our general partner declared a cash distribution of $0.47 per unit for the quarter ended 

December 31, 2018.  The distribution was paid on February 13, 2019 to unitholders of record as of February 1, 2019.  

Credit Facility 

Our revolving credit facility was amended in October 2018 to (i) increase lender commitments from $1.5 billion to $2.0 

billion (ii) permit us and our guarantors under the facility to consummate the Transactions and (iii) modify the pricing grid to decrease 
pricing. At December 31, 2018, we have $990 million outstanding and no letters of credit under the facility.  The maturity date of the 
(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:86)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:25)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:21)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:26)(cid:17)(cid:3)(cid:3)(cid:39)(cid:72)(cid:69)(cid:87)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:178)(cid:53)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)it 
Facility. 

Sources of Our Revenues 

Our gathering and compression revenues are driven by the volumes of natural gas we gather and compress, and our water 
handling and treatment revenues are driven by quantities of fresh water delivered to our customers to support their well completion 
operations and produced water treated.  Pursuant to our long-term contracts with Antero Resources, we have secured 20-year 
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We have also entered into a 20-(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:25)(cid:20)(cid:21)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)
West Virginia and Ohio, with a right of first offer on all future areas of operation.  Under the agreement, we will receive a fixed fee 
for all fresh water deliveries by pipeline directly to the well site, subject to annual CPI adjustments.  In addition, Antero Resources has 
agreed to pay a fee on a minimum volume of fresh water deliveries in calendar years 2016 through 2019.  Minimum volume 
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compression services except for existing third-party commitments.  Approximately 153,000 net leasehold acres characterized by dry 
gas and liquids-rich production that have been previously dedicated to third-party gatherers. 

Our gathering and compression operations are substantially dependent upon natural gas and oil production from Antero 

(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:88)(cid:83)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)wells that are 
connected to our gathering systems.  Although we expect that Antero Resources will continue to devote substantial resources to the 
development of oil and gas reserves, we have no control over this activity and Antero Resources has the ability to reduce or curtail 
such development at its discretion. 

Our water handling and treatment operations are substantially dependent upon the number of wells drilled and completed by 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85) (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)
reserves were 18.0 Tcfe, of which 63% was natural gas, 35% were NGLs, and 2% were oil.  As of December 31, 2018, Antero 
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located on acreage dedicated to us, providing us with significant opportunity for gr(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)
continues and its production increases. 

Under the terms of the Water Services Agreement, Antero Resources will pay a fixed fee per barrel in West Virginia and 

Ohio and all other locations for fresh water deliveries by pipeline directly to the well site, subject to annual CPI adjustments.  Antero 
Resources also agreed to pay us a fixed fee per barrel for wastewater treatment at the Antero Clearwater Facility subject to annual 
CPI-based adjustments.  In addition, we contract with third party service providers to provide Antero Resources flow back and 
produced water services and Antero Resources will reimburse us third party out-of-pocket costs plus 3%.  

How We Evaluate Our Operations 

We use a variety of financial and operational metrics to evaluate our performance.  These metrics help us identify factors and 

trends that impact our operating results, profitability and financial condition.  The key metrics we use to evaluate our business are 
provided below. 

54 

 
Adjusted EBITDA and Distributable Cash Flow 

We use Adjusted EBITDA and Distributable Cash Flow as performance measures to assess the ability of our assets to 
generate cash sufficient to pay interest costs, support indebtedness and make cash distributions.  Adjusted EBITDA and Distributable 
Cash flow are non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:25)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:39)(cid:68)(cid:87)(cid:68)(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)
information regarding these financial measures, including a reconciliation of Adjusted EBITDA and Distributable Cash Flow to the 
most directly comparable GAAP measures.  

Gathering and Compression Throughput 

We must continually obtain additional supplies of natural gas and oil to maintain or increase throughput on our systems.  Our 

ability to maintain existing supplies of natural gas and oil and obtain additional supplies is primarily impacted by our acreage 
dedication and the level of successful drilling activity by Antero Resources and, to a lesser extent in the future, the potential for 
acreage dedications with and successful drilling by third party producers.  Any increase in our throughput volumes over the near term 
will likely be driven by Antero Resources continuing its drilling and development activities on its Marcellus and Utica Shale acreage.   

Water Handling and Treatment Volumes 

Our fresh water volumes are primarily driven by hydraulic fracturing activities conducted as part of well completions.  Our 

treatment volumes are primarily driven by produced water volumes, which are a function of Antero Reso(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:50)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)
(cid:73)(cid:79)(cid:88)(cid:76)(cid:71)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:85)(cid:76)(cid:89)(cid:72)(cid:81)(cid:3)(cid:69)(cid:92)(cid:3)(cid:75)(cid:92)(cid:71)(cid:85)(cid:68)(cid:88)(cid:79)(cid:76)(cid:70)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:72)(cid:71)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)d 
acreage positions allow us to provide fresh water and other fluid handling services for Antero Resource(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)
(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:76)(cid:70)(cid:76)(cid:72)(cid:81)(cid:87)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:43)(cid:82)(cid:90)(cid:72)(cid:89)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:70)(cid:75)(cid:72)(cid:71)(cid:88)(cid:79)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:80)(cid:72)(cid:87)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
Resources uses less fresh water and other fluid handling services in its well completion operations than expected (for example, due to 
a reduction in completions), and production declines, our water volumes may decline.  In addition, due to delays in reaching 
contractual treatment capacity of the wastewater treatment facility, the Partnership has and continues to accrue for liquidated damages 
from the vendor. 

Principal Components of Our Cost Structure  

The primary components of our operating expenses that we evaluate include direct operating, general and administrative, 

impairment, depreciation and interest. 

(cid:120)  Direct Operating.   We seek to maximize the profitability of our operations in part by minimizing, to the extent appropriate, 
expenses directly tied to operating and maintaining our assets.  We schedule maintenance over time to avoid significant 
variability in our direct operating expense and minimize the impact on our cash flow.  Gathering and compression operating 
costs consist primarily of  labor, water disposal, pigging, fuel, monitoring, repair and maintenance, utilities and contract 
services, and comprise the most significant portion of our direct operating expense.  Gathering and compression operating 
costs vary with the miles of pipeline and number of compressor stations in our gathering and compression system.  Fresh 
water operating expenses consist primarily of labor, pigging, monitoring, repair and maintenance and contract services.  
Fresh water operating costs vary with the miles of pipeline, number of pumping stations, and to a lesser extent the number of 
well completions in the Marcellus and Utica Shales for which we deliver fresh water and number of impoundments in our 
fresh water system.  Other water handling costs include contract services and vary directly with the costs level of services that 
we provide to Antero Resources.  These costs are billed to Antero Resources at our cost plus 3%.  Our other water handling 
costs consist of labor, monitoring and repair and maintenance costs.  Wastewater treatment costs vary directly with the water 
volumes treated, and the operating efficiency of the wastewater treatment facility and related landfill.  The other primary 
drivers of our direct operating expense include maintenance and contract services, regulatory and compliance and ad valorem 
taxes.  

(cid:120)  General and Administrative.  Our general and administrative expenses include direct charges and costs allocated by Antero 

Resources.  These costs relate to: (i) various business services, including payroll processing, accounts payable processing and 
facilities management, (ii) various corporate services, including legal, accounting, treasury, information technology and 
human resources and (iii) compensation, including equity-based compensation.  These expenses are charged or allocated to 
us based on the nature of the expenses and are allocated based on a combination of our proportionate share of Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:74)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:68)(cid:69)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)
allocation methodologies are reasonable.  

55 

 
 
 
 
Our general and administrative expenses include equity-based compensation costs allocated by Antero Resources to us 
for (cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:29)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:47)(cid:82)(cid:81)(cid:74)-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12) grants 
made to Antero Resources employees under our own plan. 

(cid:120) 

Impairment.  We evaluate our long-lived assets for impairment when events or changes in circumstances indicate that the 
related carrying values of the assets may not be recoverable.  If the carrying values of the assets are deemed not recoverable, 
the carrying values are reduced to their estimated fair value.  In 2017, our impairment expense relates to condensate gathering 
lines which Antero Resources no longer uses.  Our impairment expense in 2018 is due to the impairment of gathering assets 
acquired from Antero Resources at the time of our IPO related to well pads Antero Resources no longer has plans to drill and 
complete. 

(cid:120)  Depreciation.  Depreciation consists of our estimate of the decrease in value of the assets capitalized in property and 

equipment as a res(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3)(cid:3)(cid:39)(cid:72)(cid:83)(cid:85)(cid:72)(cid:70)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:182)(cid:86)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)
useful life using the straight-line basis.  We depreciate our property and equipment using an estimated useful life of 5 years 
for our fresh water surface pipelines and equipment, 10 years for our above ground storage tanks, 20 years for our permanent 
buried fresh water pipelines and equipment, 30 years for our wastewater treatment facility and 50 years for our gathering 
pipelines and compressor stations. 

(cid:120) 

Interest.  In 2017 and 2018, interest expense represents interest related to: (i) borrowings under our revolving credit facility, 
(ii) (cid:69)(cid:82)(cid:85)(cid:85)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:25)(cid:24)(cid:19)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:24)(cid:17)(cid:22)(cid:26)(cid:24)(cid:8)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:20)(cid:24)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12) capital 
leases, and (iv) amortization of deferred financing costs incurred in connection with the revolving credit facility and the 
issuance of the 2024 Notes.  In addition, we capitalized interest during the construction period of the water treatment facility. 

Items Affecting Comparability of Our Financial Results 

Certain of the historical financial results discussed below may not be comparable to our future financial results primarily as a 

result of the significant increase in the scope of our operations over the last several years.  Our gathering and compression and water 
handling and treatment systems are relatively new, having been substantially built within the last five years.  Accordingly, our 
revenues and expenses over that time reflect the significant ramp up in our operations.  Additionally, our wastewater treatment facility 
was placed into service in 2018 and ran at operating rates below the stated capacity during the year.  Due to delays in reaching 
contracted treatment capacity, the Partnership has and continues to accrue for liquidated damages from the contractor engaged to 
construct the facility.  In addition, Antero Resources experienced significant growth in its production and drilling and completion 
activity levels over that same period.  Accordingly, it may be difficult to project trends from our historical financial data going 
forward. 

56 

 
Results of Operations 

Year Ended December 31, 2017 Compared to Year Ended December 31, 2018 

We have two operating segments: (1) gathering and processing, and (2) water handling and treatment.  The operating results 

and assets of our reportable segments were as follows for the year ended December 31, 2017 and 2018:  

(in thousands) 
Year ended December 31, 2017 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 
Total expenses 
Operating income 

Segment and consolidated Adjusted EBITDA(1) 

Year ended December 31, 2018 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)Antero Resources 

Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Accretion of asset retirement obligations 

Total expenses 
Operating income 

Segment and consolidated Adjusted EBITDA(1) 

Gathering and 
Processing 

Water 
Handling and 
Treatment 

Consolidated 
Total 

$ 

 396,202   
 264   
 396,466   

 376,031   
 (cid:178)   
 376,031   

 772,233   
 264   
 772,497   

 39,251   

 193,287   

 232,538   

 20,607   
 19,730   
 23,431   
 86,372   

 (cid:178)   
 189,391   
 207,075   

 10,922   
 7,553   
 (cid:178)   
 33,190   

 13,476   
 258,428   
 117,603   

 31,529   
 27,283   
 23,431   
 119,562   

 13,476   
 447,819   
 324,678   

 356,803   

 171,822   

 528,625   

 520,566   
 (cid:178)   
 583   
 521,149   

 506,449   
 924   
 (cid:178)   
 507,373   

 1,027,015  
 924   
 583   
 1,028,522  

 49,256   

 267,167   

 316,423   

 30,091   
 16,518   
 5,771   
 83,250   

 (cid:178)   
 (cid:178)   
 184,886   
 336,263   

 10,465   
 4,555   
 (cid:178)   
 46,763   

 (93,019)  
 135   
 236,066   
 271,307   

 40,556   
 21,073   
 5,771  
 130,013   

 (93,019) 
 135   
 420,952   
 607,570   

 487,634   

 229,741   

 717,375   

$ 

$ 

$ 

$ 

$ 

(1)  For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to its 
(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:85)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:179)Item 6.  Selected 
Financial Data(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:17) 

57 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
 
 
     
     
  
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
The following sets forth selected financial and operating data for the year ended December 31, 2017 compared to the year 

ended December 31, 2018:  

($ in thousands, except realized fees) 
Revenue: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)Antero Resources 

Total revenue 
Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 

Accretion of asset retirement obligations 

Total operating expenses 
Operating income 

Interest expense 
Equity in earnings of unconsolidated affiliates 

Net income 
Adjusted EBITDA(1)  
Operating Data: 

Gathering(cid:177)low pressure (MMcf) 
Gathering(cid:177)high pressure (MMcf) 
Compression (MMcf) 
Fresh water delivery (MBbl) 
Treated water (MBbl) 
Other fluid handling (MBbl) 
Wells serviced by fresh water delivery 
Gathering(cid:177)low pressure (MMcf/d) 
Gathering(cid:177)high pressure (MMcf/d) 
Compression (MMcf/d) 
Fresh water delivery (MBbl/d) 
Treated water (MBbl/d) 
Other fluid handling (MBbl/d) 

Average realized fees: 

Average gathering(cid:177)low pressure fee ($/Mcf) 
Average gathering(cid:177)high pressure fee ($/Mcf) 
Average compression fee ($/Mcf) 
Average fresh water delivery fee ($/Bbl) 
Average treated water fee ($/Bbl) 

Joint Venture Operating Data: 

Processing(cid:177)Joint Venture (MMcf) 
Fractionation(cid:177)Joint Venture (MBbl) 
Processing(cid:177)Joint Venture (MMcf/d) 
Fractionation(cid:177)Joint Venture (MBbl/d) 

Year Ended December 31, 
2018 
2017 

Amount of 
Increase 
or Decrease 

Percentage 
Change 

  $ 

 772,233 
 264 
 (cid:178) 
 772,497 

 1,027,015   
 924   
 583   
 1,028,522   

 254,782   
 660   
 583   
 256,025   

 232,538 

 316,423   

 83,885   

 31,529 
 27,283 
 23,431 
 119,562 

 13,476 
 (cid:178) 
 447,819 
 324,678 
 (37,557)     
 20,194 
 307,315 
 528,625 

 605,719 
 646,054 
 436,695 
 55,892 
 (cid:178) 
 14,549 
 142 
 1,660 
 1,770 
 1,196 
 153 
 (cid:178) 
 40 

0.32 
0.19 
0.19 
3.71   
 (cid:178)   

 97,276 
 1,861 
 267 
 5 

 40,556   
 21,073   
 5,771   
 130,013   

 (93,019)  
 135   
 420,952   
 607,570   
 (61,906)  
 40,280   
 585,944   
 717,375   

 784,079   
 770,910   
 634,303   
 71,180   
 2,544   
 18,848   
 162   
 2,148   
 2,112   
 1,738   
 195   
 7   
 52   

0.32   
0.19   
0.19   
3.78   
4.72   

 227,113   
 4,784   
 622   
 13   

$ 
  $ 

  $ 
  $ 
  $ 
  $ 
  $ 

 9,027   
 (6,210)  
 (17,660)  
 10,451   

 (106,495)  
 135   
 (26,867)  
 282,892   
 (24,349)  
 20,086   
 278,629   
 188,750   

 178,360   
 124,856   
 197,608   
 15,288   
 2,544   
 4,299   
 20   
 488   
 342   
 542   
 42   
 7   
 12   

 (cid:178)   
 (cid:178)   
 (cid:178)   
0.07   
 4.72   

 129,837   
 2,923   
 355   
 8   

 33  %   
 250  %   
*   
 33  %   

 36  %   

 29  %   
 (23) %   
 (75) %   
 9  %   

*   
*   
 (6) %   
 87  %   
 65  %   
 99  %   
 91  %   
 36  %   

 29  %   
 19  %   
 45  %   
 27  %   
*   
 30  %   
 14  %   
 29  %   
 19  %   
 45  %   
 27  %   
*   
 30  %   

 (cid:178)  %   
 (cid:178)  %   
 (cid:178)  %   
 2  %   
*   

 133  %   
 157  %   
 133  %   
 160  %   

*  Not meaningful or applicable. 
(1)  For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to its 
(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:85)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:179)Item 6.  Selected 
Financial Data(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:17) 

58 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
 
 
     
     
     
     
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
   
   
 
   
   
 
 
   
   
 
 
 
  
  
 
  
 
 
 
 
  
   
 
 
  
   
 
 
 
   
 
 
 
   
 
 
  
   
 
 
 
   
 
 
 
 
   
 
 
 
  
 
  
 
  
 
  
 
 
  
 
 
 
   
 
 
 
   
 
 
 
 
 
  
 
  
 
 
 
 
  
   
 
 
  
   
 
 
  
   
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
   
 
 
  
   
 
 
  
   
 
 
  
   
 
 
 
   
 
 
 
   
 
 
 
 
   
 
 
 
 
 
  
 
  
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
   
 
 
 
   
 
 
  
   
 
 
  
   
 
 
 
 
Revenue(cid:177)Antero Resources.  Revenues from Antero Resources increased by 33%, from $772 million for the year ended 

December 31, 2017 to $1,027 million for the year ended December 31, 2018.  Gathering and processing revenues increased by 32%, 
from $396 million for the year ended December 31, 2017 to $521 million for the year ended December 31, 2018.  Water handling and 
treatment revenues increased by 35%, from $376 million for the year ended December 31, 2017 to $506 million for the year ended 
December 31, 2018.  These fluctuations are primarily the result of the following: 

Gathering and Processing 

(cid:120)(cid:3)

(cid:120) 

(cid:120)(cid:3)

low pressure gathering revenue increased $60 million period over period due to an increase of throughput volumes of 
178 Bcf, or 488 MMcf/d, which was due to 168 new wells added in 2018 and the expansion of our low pressure 
gathering system by 33 miles in 2018; 

high pressure gathering revenue increased $26 million due to an increase of throughput volumes of 125 Bcf, or 342 
MMcf/d, primarily as a result of the addition of three new high pressure gathering lines placed in service in 2018 and 
the expansion of our high pressure gathering system by 18 miles in 2018; 

compression revenue increased $39 million due to an increase of throughput volumes of 198 Bcf, or 542 MMcf/d, 
primarily due to the addition of three new compressor stations that were placed in service during 2018;  

Water Handling and Treatment 

(cid:120)(cid:3)

(cid:120) 

(cid:120) 

fresh water delivery revenue increased $62 million, due to an increase in fresh water delivery of 15,288 MBbl, or 42 
MBbl/d, primarily due to an increase in the wells completed by Antero Resources. 

the wastewater treatment facility was placed in service in 2018, but has not yet had a significant impact on revenues as 
a result of delays in reaching planned capacity. Wastewater treatment revenues was $12 million for 2018 with 
throughput volumes at the facility of 2,544 MBbl or 7 MBbl/d; and 

other fluid handling services revenue increased $56 million due to an increase in wastewater handling and treatment 
volumes of 4,299 MBbl, or 12 MBbl/d, primarily due to an increase in the amount of wastewater produced from Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

Direct operating expenses.  Total direct operating expenses increased by 36%, from $233 million for the year ended 

December 31, 2017 to $316 million for the year ended December 31, 2018.  Gathering and processing direct operating expenses 
increased from $39 million for the year ended December 31, 2017 to $49 million for the year ended December 31, 2018.  The increase 
was primarily due to an increase in the number of gathering pipelines and compressor stations in 2018.  Water handling and treatment 
direct operating expenses increased from $193 million for the year ended December 31, 2017 to $267 million for the year ended 
December 31, 2018.  The increase was primarily due to an increase in wastewater handling and treatment volumes as well as an 
increase in the number of wells serviced by freshwater delivery services. 

General and administrative expenses.  General and administrative expenses (excluding equity-based compensation expense) 

increased by 29%, from $32 million for the year ended December 31, 2017 to $41 million for the year ended December 31, 2018.  The 
increase was primarily due to an increase in the proportion of general and administrative expenses allocated from Antero Resources 
and increased direct general and administrative expenses to support our growth. 

Equity-based compensation expenses.  Equity-based compensation expense decreased by 23%, from $27 million for the year 

ended December 31, 2017 to $21 million for the year ended December 31, 2018.  The decrease was primarily due to the decrease in 
the number and value of equity-based compensation awards in 2018 compared to 2017.  Equity-based compensation expense allocated 
to us from Antero Resources has no effect on our cash flows.  

Impairment of property and equipment expense.  Impairment expense decreased from $23 million for the year ended 

December 31, 2017 to $6 million for the year ended December 31, 2018.  The impairment in 2017 was related to certain condensate 
gathering lines that Antero Resources no longer uses while the impairment in 2018 was due to gathering assets acquired from Antero 
Resources at the time of our IPO related to well pads that Antero Resources no longer has plans to drill and complete. 

59 

Depreciation expense.  Total depreciation expense increased by 9%, from $120 million for the year ended December 31, 

2017 to $130 million for the year ended December 31, 2018.  The increase was primarily due to additional assets placed into service 
partially offset by the change in estimated useful lives of gathering and compression facilities from 20 years to 50 years.  On 
October 1, 2018, the Partnership changed the estimated useful lives of the gathering systems and facilities from 20 years to 50 years 
(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)wells.  
For the year ended December 31, 2018, the change in estimate decreased depreciation by $18 million, increased net income and 
comprehensive income by $18 million and increased basic and diluted net income per limited partner unit by $0.10.   

Accretion and change in fair value of contingent acquisition consideration.  Accretion and change in fair value of contingent 
acquisition consideration changed from an increase of $14 million for the year ended December 31, 2017 to a reduction of $93 million 
for the year ended December 31, 2018 as a result of a decrease in fair value of $106 million.  In connection with the Water 
Acquisition, we agreed to pay Antero Resources $125 million in cash if we deliver 176 million barrels or more of fresh water during 
the period between January 1, 2017 and December 31, 2019.  As of December 31, 2018, we have delivered 127 million of the 176 
million barrels and we expect to pay the entire amount of the contingent consideration for the delivery of 176 million barrels or more 
of fresh water during the period between January 1, 2017 and December 31, 2019.  We have agreed to pay an additional $125 million 
in cash if we deliver 219 million barrels or more of fresh water during the period between January 1, 2018 and December 31, 2020.  
As of December 31, 2018, we have delivered 71 million of the 219 million barrels or more of fresh water during the period between 
January 1, 2018 and December (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:21)(cid:20)(cid:28)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:69)(cid:68)(cid:85)(cid:85)(cid:72)(cid:79)(cid:86)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)
budget and long-term outlook. 

Accretion of asset retirement obligations.  In the first quarter of 2018, the Antero Landfill began accepting waste while the 

wastewater treatment facility was undergoing testing and commissioning, creating an asset retirement obligation to close and monitor 
the landfill in the future according to regulatory standards.  The accretion of this obligation began in January 2018.  

Operating income.  Total operating income increased by 87%, from $325 million for the year ended December 31, 2017 to 

$608 million for the year ended December 31, 2018.  Gathering and processing operating income increased from $207 million for the 
year ended December 31, 2017 to $336 million for the year ended December 31, 2018.  The increase was primarily due to an increase 
in gathering and compression throughput volumes in 2018.  Water handling and treatment operating income increased from $118 
million for the year ended December 31, 2017 to $272 million for the year ended December 31, 2018 due to accretion and change in 
fair value of contingent acquisition consideration of an increase $14 million for the year ended December 31, 2017 to a reduction of 
$93 million for the year ended December 31, 2018 as a result of a decrease in fair value of $106 million.  This increase was also due to 
an increase in fresh water delivery volumes in 2018 as a result of an increase in water used in A(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86). 

Interest expense.  Interest expense increased by 65%, from $38 million, net of $12 million in capitalized interest, for the year 

ended December 31, 2017 to $62 million, net of $4 million in capitalized interest, for the year ended December 31, 2018.  The 
increase was due to an increase in interest expense incurred on increased borrowings outstanding under the revolving credit facility 
and increased interest rates.  

Equity in earnings of unconsolidated affiliates.  Equity in earnings in unconsolidated affiliates increased by 99%, from $20 

million for the year ended December 31, 2017 to $40 million for the year ended December 31, 2018.  Equity in earnings of 
unconsolidated affiliates represents the portion of the net income from our investments in Stonewall and the Joint Venture, which is 
allocated to us based on our equity interests.  The increase is primarily attributable to an increase in the level of operations at the Joint 
Venture in 2018. 

Adjusted EBITDA.  Adjusted EBITDA increased by 36%, from $529 million for the year ended December 31, 2017 to 
$717 million for the year ended December 31, 2018.  The increase was primarily due to an increase in revenue resulting from an 
increase in gathering, compression, and water volumes.  For a discussion of the non-GAAP financial measure Adjusted EBITDA, 
including a reconciliation of Adjusted EBITDA to its most directly comparable financial measures calculated and presented in 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:25)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:79)(cid:72)cted Financial Data(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17)(cid:180) 

60 

Year Ended December 31, 2016 Compared to Year Ended December 31, 2017 

The operating results and assets of our reportable segments were as follows for the year ended December 31, 2016 and 2017:  

(in thousands) 
Year ended December 31, 2016 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets 
Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 
Total expenses 
Operating income 

Segment and consolidated Adjusted EBITDA(1) 

Year ended December 31, 2017 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition 

consideration 
Total expenses 
Operating income 

Segment and consolidated Adjusted EBITDA(1) 

Gathering and 
Processing 

Water 
Handling and 
Treatment 

Consolidated 
Total 

$ 

$ 

$ 

$ 

$ 

$ 

 303,250   
 835   
 3,859   
 307,944   

 282,267   
 (cid:178)   
 (cid:178)   
 282,267   

 585,517   
 835   
 3,859  
 590,211   

 27,289   

 134,298   

 161,587   

 20,118   
 19,714   
 69,962   

 (cid:178)   
 137,083   
 170,861   

 7,996   
 6,335   
 29,899   

 16,489   
 195,017   
 87,250   

 28,114   
 26,049   
 99,861   

 16,489   
 332,100   
 258,111   

 264,380   

 139,973   

 404,353   

 396,202   
 264   
 396,466   

 376,031   
 (cid:178)   
 376,031   

 772,233   
 264   
 772,497   

 39,251   

 193,287   

 232,538   

 20,607   
 19,730   
 23,431   
 86,372   

 (cid:178)   
 189,391   
 207,075   

 10,922   
 7,553   
 (cid:178)   
 33,190   

 13,476   
 258,428   
 117,603   

 31,529   
 27,283   
 23,431   
 119,562   

 13,476   
 447,819   
 324,678   

 356,803   

 171,822   

 528,625   

(1)  For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to its 
(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:79)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:85)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:179)Item 6.  Selected 
Financial Data(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:17) 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
 
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
The following table sets forth selected financial and operating data for the year ended December 31, 2016 compared to the 

year ended December 31, 2017:  

($ in thousands, except realized fees) 
Revenue: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)Antero Resources 

Total revenue 
Operating expenses: 
Direct operating 
General and administrative (excluding equity-based 

compensation) 

Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent 

acquisition consideration 
Total operating expenses 
Operating income 

Interest expense 
Equity in earnings of unconsolidated affiliates 

Net income 
Adjusted EBITDA(1)  
Operating Data: 

Gathering(cid:177)low pressure (MMcf) 
Gathering(cid:177)high pressure (MMcf) 
Compression (MMcf) 
Fresh water delivery (MBbl) 
Other fluid handling (MBbl) 
Wells serviced by fresh water delivery 
Gathering(cid:177)low pressure (MMcf/d) 
Gathering(cid:177)high pressure (MMcf/d) 
Compression (MMcf/d) 
Fresh water delivery (MBbl/d) 
Other fluid handling (MBbl/d) 

Average realized fees: 

Average gathering(cid:177)low pressure fee ($/Mcf) 
Average gathering(cid:177)high pressure fee ($/Mcf) 
Average compression fee ($/Mcf) 
Average fresh water delivery fee ($/Bbl) 

Joint Venture Operating Data: 

Processing(cid:177)Joint Venture (MMcf) 
Fractionation(cid:177)Joint Venture (MBbl) 
Processing(cid:177)Joint Venture (MMcf/d) 
Fractionation(cid:177)Joint Venture (MBbl/d) 

Year ended December 31, 
2017 
2016 

Amount of 
Increase 
or Decrease 

Percentage 
Change 

  $ 

 585,517 
 835 
 3,859 
 590,211 

 772,233   
 264   
 (cid:178)  
 772,497   

 186,716   
 (571)  
 (3,859)  
 182,286   

 161,587 

 232,538   

 70,951   

 28,114 
 26,049 
 (cid:178) 
 99,861 

 16,489 
 332,100 
 258,111 
 (21,893)     
 485 
 236,703 
 404,353 

 513,390 
 481,646 
 271,060 
 45,112 
 10,602 
 131 
 1,403 
 1,316 
 741 
 123 
 29 

0.31 
0.19 
0.19 
3.68 

 (cid:178) 
 (cid:178) 
 (cid:178) 
 (cid:178) 

 31,529   
 27,283   
 23,431   
 119,562   

 13,476   
 447,819   
 324,678   
 (37,557)  
 20,194   
 307,315   
 528,625   

 605,719   
 646,054   
 436,695   
 55,892   
 14,549   
 142   
 1,660  
 1,770  
 1,196  
 153   
 40   

 0.32  
 0.19  
 0.19  
 3.71  

 97,276   
 1,861  
 267   
 5   

$ 
  $ 

  $ 
  $ 
  $ 
  $ 

 3,415   
 1,234   
 23,431   
 19,701   

 (3,013)  
 115,719   
 66,567   
 (15,664)  
 19,709   
 70,612   
 124,272   

 92,329   
 164,408   
 165,635   
 10,780   
 3,947   
 11   
 257   
 454   
 455   
 30   
 11   

 0.01   
 (cid:178)   
 (cid:178)   
 0.03   

 97,276   
 1,861   
 267   
 5   

 32  %   
 (68) %   

                *   

 31  %   

 44  %   

 12  %   
 5  %   
*   
 20  %   

 (18) %   
 35  %   
 26  %   
 72  %   
*   
 30  %   
 31  %   

 18  %   
 34  %   
 61  %   
 24  %   
 37  %   
 8  %   
 18  %   
 34  %   
 61  %   
 24  %   
 38  %   

 3  %   
 (cid:178)  %   
 (cid:178)  %   
 1  %   

*   
*   
*   
*   

*  Not meaningful or applicable. 
(1)  For a discussion of the non-GAAP financial measure Adjusted EBITDA, including a reconciliation of Adjusted EBITDA to its 
most directly comparable financial measures calculated and presented in (cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)Item 6.  Selected 
Financial Data(cid:178)Non-(cid:42)(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:180)(cid:17) 

62 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
 
 
     
     
     
     
 
 
 
  
 
      
  
  
 
 
   
 
   
   
 
   
   
 
 
   
   
 
 
 
  
 
  
 
  
 
 
 
    
   
 
    
   
 
 
 
   
 
 
 
   
 
 
    
   
 
 
 
   
 
    
 
 
 
  
 
 
 
    
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
  
 
  
 
 
 
    
   
 
    
   
 
    
   
 
 
 
   
 
 
 
   
 
 
 
   
 
    
   
 
    
   
 
    
   
 
 
 
   
 
 
 
   
 
 
 
 
 
 
  
 
  
 
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
  
 
  
 
 
 
 
 
   
 
 
 
 
   
 
 
    
   
 
 
    
   
 
 
 
 
 
Revenue(cid:177)Antero Resources.  Revenues from Antero Resources increased by 32%, from $586 million for the year ended 

December 31, 2016 to $772 million for the year ended December 31, 2017.  Gathering and processing revenues increased by 30%, 
from $304 million for the year ended December 31, 2016 to $396 million for the year ended December 31, 2017.  Water handling and 
treatment revenues increased by 33%, from $282 million for the year ended December 31, 2016 to $376 million for the year ended 
December 31, 2017.  These fluctuations are primarily the result of the following: 

Gathering and Processing 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120) 

(cid:120) 

low pressure gathering revenue increased $31 million period over period due to an increase of throughput volumes 
of 92 Bcf, or 257 MMcf/d, which was primarily due to 109 new wells added in 2017 and the expansion of our low 
pressure gathering system by 21 miles in 2017; 

high pressure gathering revenue increased $32 million due to an increase of throughput volumes of 164 Bcf, or 454 
MMcf/d, primarily as a result of the addition of three new high pressure gathering lines placed in service in 2017 and 
the expansion of our high pressure gathering system by 18 miles in 2017; 

compression revenue increased $31 million due to an increase of throughput volumes of 166 Bcf, or 455 MMcf/d, 
primarily due to the addition of five new compressor stations that were placed in service during 2017;  

condensate gathering revenue decreased $2 million as the condensate line ceased operating in early 2017. 

Water Handling and Treatment 

(cid:120) 

(cid:120) 

fresh water delivery revenue increased $42 million due to an increase in fresh water delivery of 10,780 MBbl, or 30 
MBbl/d, primarily due to an increase in the amount of water used in well completions by Antero Resources;  

other fluid handling services revenue increased $52 million period over period due to an increase in other fluid 
handling volumes of 3,947 MBbl, or 11 MBbl/d. 

Direct operating expenses.  Total direct operating expenses increased by 44%, from $162 million for the year ended 

December 31, 2016 to $233 million for the year ended December 31, 2017.  Gathering and compression direct operating expenses 
increased from $27 million for the year ended December 31, 2016 to $39 million for the year ended December 31, 2017.  The increase 
was primarily due to an increase in the number of gathering pipelines and compressor stations in 2017.  Water handling and treatment 
direct operating expenses increased from $135 million for the year ended December 31, 2016 to $194 million for the year ended 
December 31, 2017.  The increase was primarily due to an increase in wastewater handling and treatment volumes as well as an 
increase in the number of wells serviced by freshwater delivery services.   

General and administrative expenses.  General and administrative expenses (excluding equity-based compensation expense) 

increased by 12%, from $28 million for the year ended December 31, 2016 to $32 million for the year ended December 31, 2017.  The 
increase was primarily due to an increase in the proportion of general and administrative expenses allocated from Antero Resources 
and increased direct general and administrative expenses to support our growth. 

Equity-based compensation expenses.  Equity-based compensation expense remained relatively consistent at $26 million for 

the year ended December 31, 2016 and $27 million for the year ended December 31, 2017.  Equity-based compensation expense 
allocated to us from Antero Resources has no effect on our cash flows. 

Depreciation expense.  Total depreciation expense increased by 20%, from $100 million for the year ended December 31, 

2016 to $120 million for the year ended December 31, 2017. The increase was primarily due to additional assets placed into service. 

Accretion and change in fair value of contingent acquisition consideration.  Accretion and change in fair value of contingent 

acquisition consideration accretion expense decreased from $17 million for the year ended December 31, 2016 to $14 million for the 
year ended December 31, 2017. The decrease is due to a change in our estimate of weighted average cost of capital for the fair value 
calculation. In connection with the Water Acquisition, we have agreed to pay Antero Resources (a) $125 million in cash if we deliver 
176 million barrels or more of fresh water during the period between January 1, 2017 and December 31, 2019 and (b) an additional 
$125 million in cash if we deliver 219 million barrels or more of fresh water during the period between January 1, 2018 and 
December 31, 2020.  In conjunction with the Water Acquisition on September 23, 2015, we recorded a liability for the discounted net 
present value of the contingent acquisition consideration and, as time passes, we recognize accretion expense to increase the 

63 

discounted liability to the expected liability amounts. As of December 31, 2017, we expected to pay the entire amount of the 
contingent consideration amounts. 

Operating income.  Total operating income increased by 26%, from $258 million for the year ended December 31, 2016 to 
$325 million for the year ended December 31, 2017.  Gathering and compression operating income increased from $171 million for 
the year ended December 31, 2016 to $207 million for the year ended December 31, 2017.  The increase was primarily due to an 
increase in gathering and compression throughput volumes in 2017.  Water handling and treatment operating income increased from 
$87 million for the year ended December 31, 2016 to $118 million for the year ended December 31, 2017.  This increase was due to 
an increase in fresh water delivery volumes in 2017. 

Interest expense.  Interest expense increased by 72%, from $22 million, net of $4 million in capitalized interest, for the year 

ended December 31, 2016 to $38 million, net of $12 million in capitalized interest, for the year ended December 31, 2017.  The 
increase was due to a full year of interest incurred on our $650 million of 2024 Notes in 2017, and an increase in interest expense 
incurred on increased borrowings outstanding under the revolving credit facility. 

Equity in earnings of unconsolidated affiliates.  Equity in earnings in unconsolidated affiliates increased from less than $1 

million for the year ended December 31, 2016 to $20 million for the year ended December 31, 2017.  Equity in earnings of 
unconsolidated affiliates represents the portion of the net income from our investments in Stonewall and the Joint Venture, which is 
allocated to us based on our equity interests.  The increase is primarily attributable to the formation of the Joint Venture in 2017. 

Adjusted EBITDA.  Adjusted EBITDA increased by 31%, from $404 million for the year ended December 31, 2016 to 
$529 million for the year ended December 31, 2017. The increase was primarily due to an increase in revenue resulting from an 
increase in gathering, compression, and water volumes. For a discussion of the non-GAAP financial measure Adjusted EBITDA, 
including a reconciliation of Adjusted EBITDA to its most directly comparable financial measures calculated and presented in 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:42)(cid:36)(cid:36)(cid:51)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:25)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:39)(cid:68)(cid:87)(cid:68)(cid:178)Non-G(cid:36)(cid:36)(cid:51)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:48)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:17)(cid:180) 

Capital Resources and Liquidity 

Sources and Uses of Cash 

Capital and liquidity is provided by operating cash flow, cash on our balance sheet, borrowings under our revolving credit 

facility and capital market transactions.  We expect that the combination of these capital resources will be adequate to meet our 
working capital requirements, capital expenditures program and expected quarterly cash distributions for at least the next 12 months. 

The board of directors of our general partner has adopted a cash distribution policy pursuant to which we intend to distribute 
at least the minimum quarterly distribution of $0.17 per unit ($0.68 per unit on an annualized basis) on all of our units to the extent we 
have sufficient cash after the establishment of cash reserves and the payment of our expenses, including payments to our general 
partner and its affiliates.  For the year ended December 31, 2018, we made distributions of $1.61 per unit, or a total of $303 million, to 
our common unitholders.  Additionally, we made distributions to the holder of the IDRs of $123 million.  The board of directors of our 
general partner declared a cash distribution of $0.47 per common unit for the quarter ended December 31, 2018.  The distribution was 
paid on February 13, 2019 to unitholders of record as of February 1, 2019. 

64 

 
The following table and discussion presents a summary of our net cash provided by (used in) operating activities, investing 

activities and financing activities for the periods indicated:  

(in thousands) 
Net cash provided by operating activities 
Net cash used in investing activities 
Net cash provided by financing activities 
Net increase (decrease) in cash and cash equivalents 

Cash Flows Provided by Operating Activities 

2016 
 378,607   
 (478,163)  
 106,715   
 7,159  

Year Ended December 31,  
2017 
 475,796   
 (779,818)  
 298,343   
 (5,679)  

$ 

$ 

2018 
 657,560 
 (666,587)   

 664 
 (8,363)  

Net cash provided by operating activities was $379 million, $476 million, and $658 million for the years ended December 31, 

2016, 2017 and 2018, respectively.  The increase in cash flows from operations in 2018 from 2017 of $182 million and in 2017 from 
2016 of $97 million were primarily the result of increased throughput volumes and revenues as a result of new gathering, 
compression, and water systems placed in service in 2018 and 2017, respectively, and increasing distributions from unconsolidated 
affiliates.  

Cash Flows Used in Investing Activities 

During the years ended December 31, 2016, 2017, and 2018, we used cash flows in investing activities of $478 million, $780 

million, and $667 million, respectively.  The decrease of $113 million from 2017 to 2018 was primarily a result of less investment in 
unconsolidated affiliates as well as reductions in capital expenditures on the treatment facility, which were offset by increases in 
capital expenditures on the gathering systems and facilities.  The increase of $302 million from 2016 to 2017 was primarily driven by 
investments made in the Joint Venture that we entered into in early 2017, increased capital expenditures on the gathering systems and 
facilities and construction of the wastewater treatment facility.  

The board of directors of our general partner has approved a capital budget of $750 million to $800 million for 2019, which 
includes $710 million of expansion capital and $65 million of maintenance capital at the midpoint of the range.  Our capital budgets 
may be adjusted as business conditions warrant.  If natural gas, NGLs, and oil prices decline to levels below acceptable levels or costs 
increase to levels above acceptable levels, Antero Resources could choose to defer a significant portion of its budgeted capital 
expenditures until later periods.  As a result, we may also defer a significant portion of our budgeted capital expenditures to achieve 
the desired balance between sources and uses of liquidity and prioritize capital projects that we believe have the highest expected 
returns and potential to generate near-term cash flows.  We routinely monitor and adjust our capital expenditures in response to 
(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:86)(cid:15)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:71)(cid:88)(cid:86)(cid:87)(cid:85)(cid:92)(cid:3)(cid:70)(cid:82)(cid:81)ditions, 
the timing of regulatory approvals, success o(cid:85)(cid:3)(cid:79)(cid:68)(cid:70)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)
internally generated cash flows and other factors both within and outside our control. 

Cash Flows Provided by Financing Activities 

Net cash provided by financing activities for the year ended December 31, 2018 of $664 thousand is primarily the result of 

$435 million in net borrowings under the Credit Facility, offset by $426 million in partnership distributions.  The decrease in cash 
provided by financing activities from 2017 was primarily due to an increase in distributions and borrowings offset by a decrease in 
proceeds from common unit issuances. 

Net cash provided by financing activities for the year ended December 31, 2017 of $298 million is primarily the result of  

$345 million in net borrowings under the Credit Facility, $223 million in net proceeds from the issuance of 6,900,000 common units 
in February 2017 and $284 million in partnership distributions.  The increase in cash provided by financing activities from 2016 was 
primarily due to increases in borrowings and common unit issuances, offset by an increase in distributions paid. 

Net cash provided by financing activities for the year ended December 31, 2016 of $107 million is primarily the result of  

$650 million in proceeds from the issuance of the 2024 Notes and $65 million in proceeds from common unit issuances, offset by the 
repayment of $410 million on the revolving credit facility and $182 million in partnership distributions. 

65 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Agreements  

Revolving Credit Facility 

On October 31, 2018, the Partnership entered into the First Amendment and Joinder Agreement to the senior revolving credit 

facility to (i) increase lender commitments from $1.5 billion to $2.0 billion, (ii) permit us and our guarantors under the facility to 
consummate the Transactions and (iii) modify the pricing grid to decrease pricing.  The maturity date of the facility is October 26, 
2022.  At December 31, 2018, we had $990 million of borrowings and no letters of credit outstanding under the Credit Facility.   

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:81)(cid:82)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:73)(cid:68)(cid:88)(cid:79)(cid:87)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

Partnership is in pro forma compliance with the financial covenants under the Credit Facility, commences when the Partnership elects 
to give notice to the Administrative Agent that the Partnership has received at least one of either (i) a BBB- or better rating from 
(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:68)(cid:3)(cid:37)(cid:68)(cid:68)(cid:22)(cid:3)(cid:82)(cid:85)(cid:3)(cid:69)(cid:72)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:11)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-investment grade rating from the other rating agency 
(cid:76)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:72)(cid:76)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:37)(cid:68)(cid:20)(cid:3)(cid:76)(cid:73)(cid:3)(cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:37)(cid:37)(cid:14)(cid:3)(cid:76)(cid:73)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:53)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:180)(cid:12)(cid:12)(cid:17)(cid:3)(cid:36)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:70)an end 
(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

We have a choice of borrowing in Eurodollars or at the base rate.  Principal amounts borrowed are payable on the maturity 

date with such borrowings bearing interest that is payable (i) with respect to base rate loans, quarterly and (ii) with respect to 
Eurodollar loans, the last day of each Interest Period (as defined below); provided that if any Interest Period for a Eurodollar loan 
exceeds three months, interest will be payable on the respective dates that fall every three months after the beginning of such Interest 
Period.  Eurodollar loans bear interest at a rate per annum equal to the LIBOR Rate administered by the ICE Benchmark 
(cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:81)(cid:72)(cid:15)(cid:3)(cid:87)(cid:90)(cid:82)(cid:15)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)(cid:15)(cid:3)(cid:86)(cid:76)(cid:91)(cid:3)(cid:82)(cid:85)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:87)(cid:90)(cid:72)(cid:79)(cid:89)(cid:72)(cid:3)(cid:80)(cid:82)(cid:81)(cid:87)(cid:75)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:180)(cid:12)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)able margin 
ranging from (i) 125 to 225 basis points during any period that is not an Investment Grade Period, depending on the leverage ratio then 
(cid:76)(cid:81)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:20)(cid:20)(cid:21)(cid:17)(cid:24)(cid:3)(cid:87)(cid:82)(cid:3)(cid:21)(cid:19)(cid:19)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:83)(cid:82)(cid:76)(cid:81)(cid:87)(cid:86)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)then in 
effect. Base rate loans bear interest at a rate per annum equal to the greatest of (i) (cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:74)(cid:72)(cid:81)(cid:87)(cid:3)(cid:69)(cid:68)(cid:81)(cid:78)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12) the federal funds 
effective rate plus 50 basis points and (iii) the rate for one month Eurodollar loans plus 100 basis points, plus an applicable margin 
ranging from (i) 25 to 125 basis points during any period that is not an Investment Grade Period, depending on the leverage ratio then 
(cid:76)(cid:81)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:20)(cid:21)(cid:17)(cid:24)(cid:3)(cid:87)(cid:82)(cid:3)(cid:20)(cid:19)(cid:19)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:83)(cid:82)(cid:76)(cid:81)(cid:87)(cid:86)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)hen in 
effect. 

During any period that is not an Investment Grade Period, the revolving credit facility is guaranteed by our subsidiaries and is 

(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:80)(cid:82)(cid:85)(cid:87)(cid:74)(cid:68)(cid:74)(cid:72)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:30)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:76)(cid:72)(cid:81)(cid:86)(cid:3)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)ving credit 
facility shall be automatically released during an Investment Grade Period.  The revolving credit facility contains restrictive covenants 
that may limit our ability to, among other things: 

(cid:120)(cid:3)

(cid:120)(cid:3)

incur additional indebtedness; 

sell assets; 

(cid:120)(cid:3) make loans to others; 

(cid:120)(cid:3) make investments; 

(cid:120)(cid:3)

enter into mergers; 

(cid:120)(cid:3) make certain restricted payments; 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

incur liens; and 

engage in certain other transactions without the prior consent of the lenders. 

The revolving credit facility also requires us to maintain the following financial ratios: 

a consolidated interest coverage ratio, which is the ratio of our consolidated EBITDA to its consolidated current interest 
charges of at least 2.5 to 1.0 at the end of each fiscal quarter; provided that during an Investment Grade Period, the 
Partnership will not to be subject to such ratio; 

66 

 
(cid:120)(cid:3)

(cid:120)(cid:3)

a consolidated total leverage ratio, which is the ratio of consolidated debt to consolidated EBITDA, of not more than 5.00 to 
1.00 at the end of each fiscal quarter; provided that during (cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)
(cid:38)(cid:82)(cid:89)(cid:72)(cid:81)(cid:68)(cid:81)(cid:87)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:74)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:3)(cid:86)(cid:75)(cid:68)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:81)(cid:82)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:24)(cid:17)(cid:21)(cid:24)(cid:3)(cid:87)(cid:82)(cid:3)(cid:20)(cid:17)(cid:19)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

after a Financial Covenant Election (and up to the commencement of an Investment Grade Period), a consolidated senior 
secured leverage ratio covenant rather than the consolidated total leverage ratio covenant, which is the ratio of consolidated 
senior secured debt to consolidated EBITDA, of not more than 3.75 to 1.0. 

We were in compliance with the applicable covenants and ratios as of December 31, 2017 and 2018.  The actual borrowing 

capacity available to us may be limited by the interest coverage ratio, consolidated total leverage ratio, and consolidated senior 
secured leverage ratio covenants.   

5.375% Senior Notes Due 2024 

On September 13, 2016, the Partnership and its wholly-owned subsidiary, Finance Corp, as co-issuers, issued $650 million in 
(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:24)(cid:17)(cid:22)(cid:26)(cid:24)(cid:8)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:20)(cid:24)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:87)(cid:3)(cid:83)(cid:68)(cid:85)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)e 2024 Notes are unsecured 
and effectively subordinated to the revolving credit facility to the extent of the value of the collateral securing the revolving credit 
facility.  The 2024 Notes are fully and unconditionally guaranteed on a joint and several se(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:88)(cid:81)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:72)(cid:71)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
wholly-owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries.  Interest on the 2024 Notes is 
payable on March 15 and September 15 of each year.  The Partnership may redeem all or part of the 2024 Notes at any time on or after 
September 15, 2019 at redemption prices ranging from 104.031% on or after September 15, 2019 or 100.00% on or after 
September 15, 2022.  In addition, prior to September 15, 2019, the Partnership may redeem up to 35% of the aggregate principal 
amount of the 2024 Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings, if certain 
conditions are met, at a redemption price of 105.375% of the principal amount of the 2024 Notes, plus accrued and unpaid interest.  At 
any time prior to September 15, 2019, the Partnership may also redeem the 2024 Notes, in whole or in part, at a price equal to 100% of 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:3)(cid:179)(cid:80)(cid:68)(cid:78)(cid:72)-(cid:90)(cid:75)(cid:82)(cid:79)(cid:72)(cid:180)(cid:3)(cid:83)(cid:85)(cid:72)(cid:80)(cid:76)(cid:88)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:70)(cid:85)(cid:88)ed and unpaid interest.  If the Partnership undergoes a 
change of control, the holders of the 2024 Notes will have the right to require the Partnership to repurchase all or a portion of the notes 
at a price equal to 101% of the principal amount of the 2024 Notes, plus accrued and unpaid interest. 

Contractual Obligations 

At December 31, 2018, we had $990 million of borrowings and no letters of credit outstanding under the revolving credit 

facility.  Commitment fees on the unused portion of the revolving credit facility are due quarterly at rates ranging from 0.25% to 
0.375% based on the leverage ratio, during a period that is not an Investment Grade Period, and 0.175% to 0.375% based on the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:88)(cid:81)(cid:88)(cid:86)ed facility. 

67 

 
 
 
Future capital contributions to unconsolidated affiliates are excluded from the table as neither the amounts nor the timing of 
the obligations can be determined in advance.  A summary of our contractual obligations by maturity date as of December 31, 2018 is 
provided in the following table.  

(in millions) 
Credit Facility (1) 
5.375% senior notes due 2024(cid:178)principal  
5.375% senior notes due 2024(cid:178)interest   
Water treatment (2) 
Contingent acquisition consideration 
Asset retirement obligations 
Total 

  $ 

    $ 

2019 

 (cid:178)  
 (cid:178)  
 35  
 27  
 125  
 2  
 189      

Year Ended December 31, 
2021 

2022 

2020 

 (cid:178)  
 (cid:178)  
 35  
 (cid:178)  
 (cid:178)  
 1  
 36      

 (cid:178)  
 (cid:178)  
 35  
 (cid:178)  
 (cid:178)  
 2  
 37      

 990  
 (cid:178)  
 35  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 1,025      

2023 

      Thereafter 
 (cid:178) 
 650 
 35 
 (cid:178) 
 (cid:178) 
 2 
 687 

 (cid:178)  
 (cid:178)  
 35  
 (cid:178)  
 (cid:178)  
 1  
 36      

Total 

 990  
 650  
 210  
 27  
 125  
 8  
 2,010  

(1) 

(2) 

Includes outstanding principal amounts on the Credit Facility at December 31, 2018.  This table does not include future 
commitment fees, interest expense or other fees on our revolving credit facility because they are floating rate instruments and we 
cannot determine with accuracy the timing of future loan advances, repayments, or future interest rates to be charged. 
Includes obligations related to the construction of our wastewater treatment facility.  

Critical Accounting Policies and Estimates  

The following discussion relates to the critical accounting policies and estimates for both the Partnership and our 

Predecessor.  The discussion and analysis of our financial condition and results of operations are based upon our financial statements, 
which have been prepared in accordance with GAAP.  The preparation of our consolidated financial statements requires us to make 
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of 
contingent assets and liabilities.  Certain accounting policies involve judgments and uncertainties to such an extent that there is 
reasonable likelihood that materially different amounts could have been reported under different conditions, or if different 
assumptions had been used.  We evaluate our estimates and assumptions on a regular basis.  We base our estimates on historical 
experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the 
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual 
results may differ from these estimates and assumptions used in preparation of our financial statements.  We provide expanded 
discussion of our more significant accounting policies, estimates and judgments below.  We believe these accounting policies reflect 
our more significant estimates and assumptions used in preparation of our financial statements.  See Note 2(cid:178)Summary of Significant 
Accounting Policies to the financial statements for a discussion of additional accounting policies and estimates made by management. 

General and Administrative and Equity-Based Compensation Costs 

General and administrative costs are charged or allocated to us based on the nature of the expenses and are allocated based on 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:74)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:87)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:68)(cid:69)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)e.  These 
allocations are based on estimates and assumptions that management believes are reasonable. 

Equity-based compensation grants are measured at their grant date fair value and related compensation cost is recognized 
over the vesting period of the grant.  Compensation cost for awards with graded vesting provisions is recognized on a straight-line 
basis over the requisite service period of each separately vesting portion of the award.  Estimating the fair value of each award 
requires management to apply judgment. 

Equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:88)(cid:86)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:79)(cid:68)(cid:69)(cid:82)(cid:85)(cid:3)costs.  

These allocations are based on estimates and assumptions that management believes are reasonable. 

Fair Value Measurement 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:41)(cid:36)(cid:54)(cid:37)(cid:180)(cid:12)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:38)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:82)(cid:83)(cid:76)(cid:70)(cid:3)(cid:27)(cid:21)(cid:19)(cid:15)(cid:3)Fair Value 
Measurements and Disclosures, clarifies the definition of fair value, establishes a framework for measuring fair value, and sets forth 
disclosure requirements about fair value measurements.  This guidance also relates to all nonfinancial assets and liabilities that are not 
recognized or disclosed on a recurring basis (e.g., the initial recognition of asset retirement obligations and impairments of long-lived 
assets).  The fair value is the price that we estimate would be received to sell an asset or paid to transfer a liability in an orderly 
transaction between market participants at the measurement date.  A fair value hierarchy is used to prioritize inputs to valuation 

68 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
     
     
     
     
     
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
    
 
 
 
techniques used to estimate fair value.  An asset or liability subject to the fair value requirements is categorized within the hierarchy 
based on the lowest level of input that is significant to the fair value measurement.  Our assessment of the significance of a particular 
input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.  The highest 
priority (Level 1) is given to unadjusted quoted market prices in active markets for identical assets or liabilities, and the lowest priority 
(Level 3) is given to unobservable inputs.  Level 2 inputs are data, other than quoted prices included within Level 1, that are 
observable for the asset or liability, either directly or indirectly.  

In connection with the Water Acquisition, we have agreed to pay Antero Resources (a) $125 million in cash if we deliver 

176,295,000 barrels or more of fresh water during the period between January 1, 2017 and December 31, 2019 and (b) an additional 
$125 million in cash if we deliver 219,200,000 barrels or more of fresh water during the period between January 1, 2018 and 
December 31, 2020.  This contingent consideration liability is valued based on Level 3 inputs related to the expected average volumes 
and weighted average cost of capital and was recorded at the time of the Water Acquisition in accordance with accounting guidance 
for business combinations.  We update our assumptions each reporting period based on new developments and adjust such amounts to 
fair value based on revised assumptions, if applicable, until such consideration is satisfied through payment upon achievement of the 
specified objectives or it is eliminated upon failure to achieve the specified objectives.  

As of December 31, 2018, the Partnership expects to pay the entire amount of the contingent consideration for the 
176,295,000 barrels or more fresh water delivered during the period between January 1, 2017 and December 31, 2019, but not for the 
219,200,000 barrels or more of fresh water during the period between January 1, 2018 and December 31, 2020 based on Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:69)(cid:88)(cid:71)(cid:74)(cid:72)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term outlook.  Accordingly, the fair value of the liability for contingent acquisition consideration 
was reduced by $106 million in 2018.  The fair value measurement is based on significant inputs not observable in the market and thus 
represents a Level 3 measurement within the fair value hierarchy.  The fair value of the contingent consideration liability associated 
with future milestone payments was based on the risk adjusted present value of the contingent consideration payout. 

New Accounting Pronouncements 

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases, which replaced most existing lease guidance under 

GAAP when it became effective on January 1, 2019.  The standard requires lessees to record lease liabilities and right-of-use assets as 
of the date of adoption and we have elected to adopt the new standard prospectively.  The Partnership is not a party to any material 
contracts as a lessee.  The new lease standard does not substantially change accounting by lessors.  The Partnership determined that its 
(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:68)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:80)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86) that will 
(cid:69)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:36)(cid:54)(cid:56)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)t.  No significant 
additional disclosures will be required.  As a result, there will not be a material impact of the new leasing standard on the (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
financial statements.  The Partnership believes that adoption of the standard will not impact its operational strategies, growth 
prospects, net income, or cash flow.  The Partnership as updated internal controls impacted by the new standard and acquired software 
to collect and account for lease data under the standard. 

Off-Balance Sheet Arrangements 

As of December 31, 2018, we did not have any off-balance sheet arrangements.   

69 

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk 

The primary objective of the following information is to provide forward-looking quantitative and qualitative information 

(cid:68)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:3)(cid:179)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:180)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:79)(cid:82)(cid:86)(cid:86)(cid:3)(cid:68)(cid:85)(cid:76)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)in 
commodity prices and interest rates.  The disclosures are not meant to be precise indicators of expected future losses, but rather 
indicators of reasonably possible losses.  This forward-looking information provides indicators of how we view and manage our 
ongoing market risk exposures.  

Commodity Price Risk 

Our gathering and compression and water services agreements with Antero Resources provide for fixed-fee structures, and 

we intend to continue to pursue additional fixed-fee opportunities with Antero Resources and third parties in order to avoid direct 
commodity price exposure.  However, to the extent that our future contractual arrangements with Antero Resources or third parties do 
not provide for fixed-fee structures, we may become subject to commodity price risk.  We are subject to commodity price risks to the 
(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)program and production and therefore our gathering, compression, and water 
handling and treatment volumes.  We cannot predict to what extent our business would be impacted by lower commodity prices and 
(cid:68)(cid:81)(cid:92)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17) 

Interest Rate Risk  

Our primary exposure to interest rate risk results from outstanding borrowings under our Credit Facility, which has a floating 

interest rate.  We do not currently, but may in the future, hedge the interest on portions of our borrowings under our revolving credit 
facility from time-to-time in order to manage risks associated with floating interest rates.  At December 31, 2018, we had $990 million 
of borrowings and no letters of credit outstanding under the Credit Facility.  A 1.0% increase in our Credit Facility interest rate would 
have resulted in an estimated $7.9 million increase in interest expense, for the year ended December 31, 2018.  

Credit Risk 

We are dependent on Antero Resources as our primary customer, and we expect to derive a substantial majority of our 
revenues from Antero Resources for the foreseeable future.  As a result, any event, whether in our area of operations or otherwise, that 
(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:70)(cid:75)(cid:72)(cid:71)(cid:88)(cid:79)(cid:72)(cid:15)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)leverage, market reputation, liquidity, results of 
operations or cash flows may adversely affect our revenues and cash available for distribution. 

Further, we are subject to the risk of non-payment or non-performance by Antero Resources, including with respect to our 

gathering and compression and water handling and treatment services agreements.  We cannot predict the extent to which Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:76)(cid:81)(cid:71)(cid:88)(cid:86)(cid:87)(cid:85)(cid:92)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:76)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:81)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:81)(cid:3)(cid:90)(cid:72)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)e impact such 
(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:72)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)
agreement.  Any material non-payment or non-performance by Antero Resources could reduce our ability to make distributions to our 
unitholders. 

Item 8.  Financial Statements and Supplementary Data 

The Report of Independent Registered Public Accounting Firm, Consolidated Financial Statements and supplementary 
financial data required for this Item are set forth beginning on page F-2 of this report and are incorporated herein by reference. 

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 

Not applicable. 

Item 9A.  Controls and Procedures  

Evaluation of Disclosure Controls and Procedures 

As required by Rule 13a-15(b) under the Exchange Act we have evaluated, under the supervision and with the participation 

of our management, including our principal executive officer and principal financial officer, the effectiveness of the design and 
operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the 
end of the period covered by this annual report.  Our disclosure controls and procedures are designed to ensure that information 
required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, 

70 

 
 
 
(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:182)(cid:86)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:86)(cid:17)(cid:3)(cid:3)(cid:37)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)fficer and 
principal financial officer concluded that our disclosure controls and procedures were effective as of December 31, 2018 at a 
reasonable assurance level.  

Changes in Internal Control Over Financial Reporting 

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) 

under the Exchange Act) during the three months ended December 31, 2018 that have materially affected, or are reasonably likely to 
materially affect, our internal control over financial reporting.  In connection with the anticipated adoption of ASU No. 2016-02, 
Leases, we implemented additional controls and accounting processes related to the adoption of  the lease standard.  These changes 
have not materially affected the P(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:17)  

(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:50)(cid:89)(cid:72)(cid:85)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74) 

The management of our general partner is responsible for establishing and maintaining adequate internal control over 
financial reporting for us as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act.  This system is designed to provide 
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in 
accordance with accounting principles generally accepted in the United States of America. 

Our internal control over financial reporting includes those policies and procedures that: 

(i)  pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and 

dispositions of the assets; 

(ii)  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in 
accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in 
accordance with authorizations of our management and directors; and 

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of 

our assets that could have a material effect on the financial statements. 

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable 

assurance and may not prevent or detect all misstatements.  Further, because of changes in conditions, effectiveness of internal 
controls over financial reporting may vary over time. 

Under the supervision of, and with the participation of our management, including the Chief Executive Officer and Chief 

Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the 
framework and criteria established in Internal Control(cid:178)Integrated Framework in 2013, issued by the Committee of Sponsoring 
Organizations of the Treadway Commission.  Based on this evaluation, management of our general partner concluded that our internal 
control over financial reporting was effective as of December 31, 2018. 

The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by KPMG LLP, 

an independent registered public accounting firm which also audited our consolidated financial statements as of and for the year ended 
December 31, 2018, as stated in their report which appears on page F-2 in this report. 

Item 9B.  Other Information  

Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934 

Pursuant to Section 13(r) of the Exchange Act, we may be required to disclose in our annual and quarterly reports to the SEC 

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individuals or entities targeted by US economic sanctions.  Disclosure is generally required even where the activities, transactions or 
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The descr(cid:76)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:88)(cid:86)(cid:3)(cid:69)(cid:92)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:29)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)
members of the board of directors of our general partner, and (ii) beneficially own more than 10% of the outstanding common stock 
and are memb(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:81)(cid:71)(cid:88)(cid:85)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:44)(cid:81)(cid:70)(cid:17)(cid:3)(cid:11)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:179)(cid:40)(cid:44)(cid:42)(cid:44)(cid:180)(cid:12)(cid:17)(cid:3)

71 

 
 
 
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common control exists. 

The disclosure below relates solely to activities conducted by EIGI. The disclosure does not relate to any activities conducted 

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disclosed activities, and neither we nor WP has independently verified or participated in the preparation of the disclosure.  Neither we 
nor WP is representing as to the accuracy or completeness of the disclosure nor do we or WP undertake any obligation to correct or 
update it. 

We understand that EIGI intends to disclose the following in its next annual or quarterly SEC report: 

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between EIGI and the registered owner of the Domain Name and EIGI did not generate any revenue in connection with the Domain 
Name since Katrangi was added to the SDN list on July 25, 2018. Upon discovering the Domain Name on its platform, EIGI promptly 
suspended the Domain Name and removed it from its platform. EIGI reported the Domain Name to OFAC on August 7, 2018. 

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associated with Arian Bank, which was identified by OFAC as an SDN on November 5, 2018, pursuant to 31 C.F.R. Part 594. EIGI 
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the End Customer Account to OFAC as potentially the property of an SDN subject to blocking pursuant to Executive Order 13224.  
As of February 1, 2019, EIGI had not received any correspondence from OFAC regarding this matter.  

72 

 
 
Item 10.  Directors, Executive Officers, and Corporate Governance 

Management of Antero Midstream Partners LP 

PART III 

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officers and certain of the directors of our general partner are also officers and directors of Antero Resources and AMGP GP LLC, the 
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three independent directors meeting the independence standards established by the NYSE.  Our unitholders are not entitled to directly 
participate in our management or operations.  Our general partner owes certain contractual duties to our unitholders as well as a 
fiduciary duty to its owners. 

Our general partner has seven directors.  The NYSE does not require a listed publicly traded partnership, such as ours, to 

have a majority of independent directors on the board of directors of our general partner or to establish a compensation committee or a 
nominating committee.  However, our general partner is required to have an audit committee of at least three members, and all its 
members are required to meet the independence and experience standards established by the NYSE and the Exchange Act.  As 
previously announced, on January 24, 2019, Richard W. Connor notified us of his intent to resign from the Board effective 
immediately for personal reasons.  The resignation was not the result of any disagreement with the Partnership or any of its affiliates 
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audit committee.  The Board determined that Mr. Korus meets the independence requirements under the rules of the NYSE and the 
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All of the executive officers of our general partner listed below allocate their time between managing our business and affairs 
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to our business and the businesses of Antero Resources and AMGP will vary in any given year based on a variety of factors.  Our 
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:15)(cid:3)(cid:75)(cid:82)(cid:90)(cid:72)(cid:89)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:80)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:73)(cid:73)(cid:68)(cid:76)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86) is 
necessary for the proper conduct of our business and affairs. 

Antero Resources provides customary management and general administrative services to us pursuant to a services 

agreement.  Our general partner reimburses Antero Resources at cost for its direct expenses incurred on behalf of us and a 
proportionate amount of its indirect expenses incurred on behalf of us, including, but not limited to, compensation expenses.  Under a 
services agreement, Antero Resources charges us a general and administrative fee for services it provides us.  Our partnership 
agreement does not set a limit on the amount of expenses for which our general partner and its affiliates may be reimbursed.  These 
expenses include salary, bonus, incentive compensation and other amounts paid to persons who perform services for us or on our 
behalf and expenses allocated to our ge(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:69)(cid:92)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)
(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:180)(cid:3)(cid:3)(cid:49)(cid:72)(cid:76)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:81)(cid:82)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:72)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)(cid:75)er 
compensation. 

Board Leadership Structure 

The Board does not have a formal policy addressing whether or not the roles of Chairman and Chief Executive Officer should 

be separate or combined.  The directors serving on the Board possess considerable professional and industry experience, significant 
experience as directors of both public and private companies and a unique knowledge of the challenges and opportunities that we face.  
As such, the Board believes that it is in the best position to evaluate our needs and to determine how best to organiz(cid:72)(cid:3)(cid:36)(cid:48)(cid:51)(cid:3)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)
leadership structure to meet those needs.  

(cid:36)(cid:87)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:36)(cid:48)(cid:51)(cid:3)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:70)(cid:75)(cid:82)(cid:86)(cid:72)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:69)(cid:76)(cid:81)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:75)(cid:68)(cid:76)(cid:85)(cid:80)(cid:68)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:58)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

Board believes it is important to retain the flexibility to determine whether the roles of Chairman and Chief Executive Officer should 
be separated or combined in one individual, the Board believes that the current Chief Executive Officer is an individual with the 
necessary experience, commitment and support of the other members of the Board to effectively carry out the role of Chairman.  

The Board believes this structure promotes better alignment of strategic development and execution, more effective 

implementation of strategic initiatives and clearer accountability for our success or failure.  Moreover, the Board believes that 

73 

combining the Chairman and Chief Executive Officer positions does not impede independent oversight of the Partnership.  Five of the 
seven members of the Board are independent under NYSE rules.  

(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:182)(cid:86)(cid:3)(cid:53)(cid:82)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:50)(cid:89)(cid:72)rsight 

In the normal course of our business, we are exposed to a variety of risks, including market risks relating to changes in 
commodity prices, interest rates, technical risks affecting our facilities, political risks and credit and investment risk.  The Board 
oversees our strategic direction, and in doing so considers the potential rewards and risks of our business opportunities and challenges, 
and monitors the development and management of risks that impact our strategic goals. 

Executive Sessions  

To facilitate candid discussion among our directors, the non-management directors meet in regularly scheduled executive 

sessions.  The director who presides at these meetings is chosen by the Board prior to such meetings. 

Interested Party Communications  

Unitholders and other interested parties may communicate by writing to: Antero Midstream Partners LP, 1615 

Wynkoop Street, Denver, Colorado 80202.  Unitholders may submit their communications to the Board, any committee of the Board 
or individual directors on a confidential or anonymous basis by sending the communication in a sealed envelope marked "Unitholder 
Communication with Directors" and clearly identify the intended recipient(s) of the communication.  

Our Chief Administrative Officer will review each communication and other interested parties and will forward the 

communication, as expeditiously as reasonably practicable, to the addressees if: (1) the communication complies with the 
requirements of any applicable policy adopted by the Board relating to the subject matter of the communication; and (2) the 
communication falls within the scope of matters generally considered by the Board.  To the extent the subject matter of a 
communication relates to matters that have been delegated by the Board to a committee or to an executive officer of the general 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:88)(cid:81)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:70)(cid:75)airman 
of the committee to which the matter has been delegated.  The acceptance and forwarding of communications to the members of the 
Board or an executive officer does not imply or create any fiduciary duty of the Board members or executive officer to the person 
submitting the communications.  

Information may be submitted confidentially and anonymously, although we may be obligated by law to disclose the 

information or identity of the person providing the information in connection with government or private legal actions and in other 
circumstances.  Our policy is not to take any adverse action, and not to tolerate any retaliation, against any person for asking questions 
or making good faith reports of possible violations of law, our policies or our Corporate Code of Business Conduct and Ethics.  

Available Governance Materials  

The Board has adopted the following materials, which are available on our website at www.anteromidstream.com: 

(cid:120)(cid:3) Charter of the Audit Committee of the Board;  

(cid:120)(cid:3) Corporate Code of Business Conduct and Ethics;  

(cid:120)(cid:3) Financial Code of Ethics; and  

(cid:120)(cid:3) Corporate Governance Guidelines.  

Unitholders may obtain a copy, free of charge, of each of these documents by sending a written request to Antero Midstream 
Partners LP, 1615 Wynkoop Street, Denver, Colorado, 80202.  We intend to disclose any amendments to, or waivers from, our Code 
of Business Conduct and Ethics on our website. 

Directors and Executive Officers 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:86)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:3)(cid:88)(cid:81)(cid:87)(cid:76)l 

their successors have been elected or qualified or until the earlier of their death, resignation, removal or disqualification.  Executive 

74 

officers serve at the discretion of the board.  There are no family relationships among any of the directors or executive officers.  Some 
of the directors and all of the executive officers also serve as directors or executive officers, as applicable, of Antero Resources. 

Name 
Paul M. Rady 
Glen C. Warren, Jr. 
Michael N. Kennedy 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Peter R. Kagan 
W. Howard Keenan, Jr. 
Paul J. Korus 
John C. Mollenkopf 
David A. Peters 

      Age 

Position With Our General Partner   

Chief Financial Officer and Senior Vice President 
Senior Vice President(cid:178)Production 
Chief Administrative Officer, Senior Regional Vice President and Treasurer 

Chairman and Chief Executive Officer 

65     
63      Director, President and Secretary 
44     
64     
60     
50      Director 
68      Director 
62      Director 
57      Director 
60      Director 

Paul M. Rady has served as Chief Executive Officer and Chairman of the Board of Directors of our general partner since 
February 2014.  Mr. Rady has also served as Chief Executive Officer and Chairman of the Board of Directors of Antero Resources 
since May 2004 and of its predecessor company, Antero Resources Corporation, from its founding in 2002 until its sale to XTO 
Energy, Inc. in April 2005, as well as Chief Executive Officer and Chairman of the Board of Directors of of the general partner of 
AMGP since April 2017.  Prior to Antero, Mr. Rady served as President, CEO and Chairman of Pennaco Energy from 1998 until its 
sale to Marathon in early 2001.  Prior to Pennaco, Mr. Rady was with Barrett Resources from 1990 until 1998 where he initially was 
recruited as Chief Geologist in 1990, then served as Exploration Manager, EVP Exploration, President, COO and Director and 
ultimately CEO.  Mr. Rady began his career with Amoco where he served 10 years as a geologist focused on the Rockies and 
Mid-Continent.  Mr. Rady is the managing member of Salisbury Investment Holdings, LLC.  Mr. Rady holds a B.A. in Geology from 
Western Colorado University and M.Sc. in Geology from Western Washington University. 

Mr. (cid:53)(cid:68)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:70)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)s, together with his training as a geologist and 

broad industry knowledge, enable Mr. Rady to provide the board with executive counsel on a full range of business, strategic and 
professional matters. 

Glen C. Warren, Jr. has served as President and Secretary and as a director of our general partner since January 2016, prior to 

which he served as President, Chief Financial Officer and Secretary and as a director of our general partner beginning in February 
2014.  Mr. Warren has also served as President, Chief Financial Officer and Secretary and as a director of Antero Resources since 
May 2004 and of its predecessor company, Antero Resources Corporation, from its founding in 2002 until its sale to XTO 
Energy, Inc. in April 2005, as well as President and Secretary and as a director of the Board of Directors of the general partner of 
AMGP since April 2017.  Prior to Antero Resources, Mr. Warren served as EVP, CFO and Director of Pennaco Energy from 1998 
until its sale to Marathon in early 2001.  Mr. Warren spent 10 years as a natural resources investment banker focused on equity and 
debt financing and M&A advisory with Lehman Brothers, Dillon Read and Kidder Peabody.  Mr. Warren began his career as a 
landman in the Gulf Coast region with Amoco, where he spent six years.  Mr. Warren is the managing member of Canton Investment 
Holdings, LLC.  Mr. Warren holds a B.A. from the University of Mississippi, a J.D. from the University of Mississippi School of Law 
and an M.B.A. from the Anderson School of Management at U.C.L.A. 

Mr. (cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:182)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:70)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)
investment banker and broad industry knowledge, enable Mr. Warren to provide the board with executive counsel on a full range of 
business, strategic, financial and professional matters. 

Michael N. Kennedy has served as Chief Financial Officer of our general partner and Senior Vice President of Finance since 
January 2016, prior to which he served as Vice President of Finance of our general partner beginning in February 2014.  Mr. Kennedy 
has also served as Senior Vice President of Finance of Antero Resources since January 2016, prior to which he served as Vice 
President of Finance of Antero Resources from August 2013 to December 2015.  Mr. Kennedy was Executive Vice President and 
Chief Financial Officer of Forest Oil Corporation from 2009 to 2013.  From 2001 until 2009, Mr. Kennedy held various financial 
positions of increasing responsibility within Forest.  From 1996 to 2001, Mr. Kennedy was an auditor with Arthur Andersen focusing 
on the Natural Resources industry.  Mr. Kennedy holds a B.S. in Accounting from the University of Colorado at Boulder. 

Kevin J. Kilstrom has served as Senior Vice President of Production of our general partner since January 2016, prior to which 

he served as Vice President of Production of our general partner beginning in February 2014.  Mr. Kilstrom has also served as Senior 

75 

 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vice President of Production of the general partner of AMGP since April 2017.  Mr. Kilstrom was a Manager of Petroleum 
Engineering with AGL Energy of Sydney, Australia from 2006 to 2007.  Prior to AGL, Mr. Kilstrom was with Marathon Oil as an 
Engineering Consultant and Asset Manager from 2003 to 2006 and as a Business Unit Manager for Ma(cid:85)(cid:68)(cid:87)(cid:75)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:51)(cid:82)(cid:90)(cid:71)(cid:72)(cid:85)(cid:3)(cid:53)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:68)(cid:79)(cid:3)(cid:69)(cid:72)(cid:71)(cid:3)
methane assets from 2001 to 2003.  Mr. Kilstrom also served as a member of the board of directors of three Marathon subsidiaries 
from October 2003 through May 2005.  Mr. Kilstrom was an Operations Manager and reserve engineer at Pennaco Energy from 1999 
to 2001.  Mr. Kilstrom was at Amoco for more than 22 years prior to 1999.  Mr. Kilstrom holds a B.S. in Engineering from Iowa State 
University and an M.B.A. from DePaul University. 

Alvyn A. Schopp has served as Chief Administrative Officer, Senior Regional Vice President, and Treasurer of our general 
partner since January 2016, prior to which he served as Chief Administrative Officer, Regional Vice President and Treasurer of our 
general partner beginning in February 2014.  Mr. Schopp has also served as Chief Administrative Officer, Senior Regional Vice 
President, and Treasurer of Antero Resources since January 2016, as Chief Administrative Officer, Regional Vice President and 
Treasurer from October 2013 to January 2016, as Vice President of Accounting and Administration and Treasurer from January 2005 
to September 2013, as Controller and Treasurer from 2003 to 2005 and as Vice President of Accounting and Administration and 
(cid:55)(cid:85)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:72)(cid:71)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82) Resources Corporation, from January 2005 until its sale to XTO 
Energy, Inc. in April 2005. Mr. Schopp has also served as Chief Administrative Officer, Senior Regional Vice President, and 
Treasurer of the general partner of AMGP since April 2017.  From 1993 to 2000, Mr. Schopp was CFO, Director and ultimately CEO 
of T-Netix.  From 1980 to 1993 Mr. Schopp was with KPMG LLP.  As a Senior Manager with KPMG, he maintained an extensive 
energy and mining practice.  Mr. Schopp holds a B.B.A. from Drake University. 

Peter R. Kagan has served as a director of our general partner since February 2014.  Mr. Kagan also has served as a director 

of Antero Resources since 2004 and as a director of AMGP GP since April 2017.  Mr. Kagan has been with Warburg Pincus since 
1997 w(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:68)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:85)(cid:80)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:43)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86) & Co. and a 
Managing Director of Warburg Pincus LLC.  He is also a member of Warburg Pincus (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:17)(cid:3)(cid:3)
Mr. Kagan received a B.A. degree cum laude from Harvard College and J.D. and M.B.A. degrees with honors from the University of 
Chicago.  Prior to joining Warburg Pincus, he worked in investment banking at Salomon Brothers in both New York and Hong Kong.  
Mr. Kagan currently also serves on the boards of directors of the following public companies: Laredo Petroleum Holdings, Inc., MEG 
Energy Corp. and Targa Resources Corp., as well as the boards of several private companies.  In addition, he is a director of Resources 
for the Future and a trustee of Milton Academy. 

Mr. Kagan has significant experience with energy companies and investments and broad knowledge of the oil and gas 
industry.  We believe his background and skill set make Mr. Kagan well-suited to serve as a member of our board of directors. 

W. Howard Keenan, Jr. has served as a director of our general partner since February 2014.  Mr. Keenan also has served as a 

director of Antero Resources since 2004 and as a director of AMGP GP since April 2017.  Mr. Keenan has over 40 years of 
experience in the financial and energy businesses.  Since 1997, he has been a Member of Yorktown Partners LLC, a private 
investment manager focused on the energy industry.  From 1975 to 1997, he was in the Corporate Finance Department of Dillon, 
Read & Co. Inc. and active in the private equity and energy areas, including the founding of the first Yorktown Partners fund in 1991.  
He is serving or has served as a director of multiple Yorktown Portfolio companies and currently serves as a director of the following 
public companies:  Ramaco Resources, Inc. and Solaris Oilfield Infrastructure, Inc. Mr. Keenan holds an B.A. degree cum laude from 
Harvard College and an M.B.A. degree from Harvard University. 

Mr. Keenan has significant experience with energy companies and investments and broad knowledge of the oil and gas 
industry.  We believe his background and skill set make Mr. Keenan well-suited to serve as a member of our board of directors. 

Paul J. Korus has served as a director and the Chairman of the Audit Committee since January 2019, and he has also served 

as a director and member of the Audit Committee of Antero Resources since December 2018.  Mr. Korus was also appointed to the 
Board of Directors of SRC Energy Inc. in 2016, where he currently serves as Chairman of the Audit Committee and is a member of 
the Corporate Governance and Nominating Committee.  In September 2015, Mr. Korus retired as senior vice president and Chief 
Financial Officer of Cimarex Energy Co., a position he had held since 1999.  His responsibilities there included oversight of all 
financial areas including corporate planning, capital markets, accounting, tax, treasury, investor relations, internal audit and 
information technology.  Between 1995 and 1999 he was an equity research analyst with Petrie Parkman & Co., a boutique energy 
investment banking firm that subsequently merged into Merrill Lynch. From 1982 to 1995 Mr. Korus was with Apache Corporation, 
where he held positions of increasing responsibility in management information systems, corporate planning and investor relations.  
Mr. Korus began his business career in 1980 with a large public accounting firm (Arthur Andersen) as a management information 
systems consultant.  Mr. Korus is currently Chairman of the University of North Dakota (UND) Business School Advisory Council.  

76 

(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:74)(cid:85)(cid:68)(cid:71)(cid:88)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:56)(cid:49)(cid:39)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:37)(cid:68)(cid:70)(cid:75)(cid:72)(cid:79)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:70)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:71)(cid:72)(cid:74)(cid:85)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:40)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:20)(cid:28)(cid:26)(cid:27)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:48)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:70)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:71)(cid:72)(cid:74)(cid:85)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)ng 
in 1980.  He is currently a member of the National Association of Corporate Directors. 

Mr. Korus has extensive knowledge of the energy industry as a former executive officer and current director of  a public 

energy company, and he also has experience in technical accounting and auditing matters.  We believe his background and skill set 
make Mr. Korus well-suited to serve as a member of our board of directors and of the audit committee. 

John C. Mollenkopf  has served as a director of our general partner since April 2017, and serves as a member of the audit 

committee.  Mr. Mollenkopf retired from MPLX, L.P. (NYSE:MPLX) in October 2016.  He previously served MPLX as Executive 
Vice President and Chief Operating Officer, MarkWest operations, from December 2015 through September 2016 following the 
merger of MPLX and MarkWest.  From 2011 through 2015, he served as Executive Vice President and Chief Operating Officer of 
MarkWest.  Mr. Mollenkopf began his employment with MarkWest Hydrocarbon, Inc. in 1996 as Manager New Projects and 
progressed to General Manager and later to Vice President of the Michigan Business unit.  In 2002, Mr. Mollenkopf was one of the 
founders of MarkWest Energy GP, LLC, the general partner of MarkWest.  Between 2002 and 2011, Mr. Mollenkopf served 
MarkWest as Vice President (cid:178) Business Development, Senior Vice President (cid:178) Southwest Business Unit, Senior Vice President and 
Chief Operations Officer, Senior Vice President and Chief Operating Officer.  Between 1982 and 1996, Mr. Mollenkopf worked for 
ARCO Oil and Gas Company in California and Texas, holding positions of increasing responsibility in facilities, project, process and 
plant engineering as well as operations supervision.  Mr. Mollenkopf holds a Bachelor of Science degree in mechanical engineering 
from the University of Colorado at Boulder 1983.  He serves on the Engineering Advisory Council for the college of engineering at 
the University of Colorado at Boulder. 

Mr. Mollenkopf has significant experience with energy companies and investments and broad knowledge of the oil and gas 
industry.  We believe his background and skill set make Mr. Mollenkopf well-suited to serve as a member of our board of directors. 

David A. Peters joined the board of our general partner in connection with our listing on the NYSE, and serves as a member 
of the audit committee.  Mr. Peters served as a director of TransMontaigne GP L.L.C., the general partner of TransMontaigne Partners 
L.P. (NYSE: TLP), from May 2005 to August 2014, and served as a member of the audit and compensation committees and as the 
chair of the conflicts committee.  Since 1999, Mr. Peters has been a business consultant with a primary client focus in the energy 
sector.  In addition, Mr. Peters also served as a member of the board of directors of QDOBA Restaurant Corporation from 1998 to 
2003.  From 1997 to 1999, Mr. Peters was a managing director of a private investment fund, and from 1995 to 1997 he served as an 
executive vice president at Duke Energy Field Services/PanEnergy Field Services Inc., responsible for natural gas gathering, 
compression and storage operations.  Prior to joining Duke Energy Field Services/PanEnergy Field Services Inc., Mr. Peters held 
various positions with Associated Natural Gas Corporation, and from 1980 to 1984, he worked in the audit department of Peat 
Marwick Mitchell & Co. Mr. Peters holds a B.B.A. from the University of Michigan. 

Mr. Peters has extensive knowledge of the energy industry as a business consultant and a former director of the general 

partner of a master limited partnership and significant financial and accounting knowledge.  We believe his background and skill set 
make Mr. Peters well-suited to serve as a member of our board of directors and of the audit committee. 

Committees of the Board of Directors 

The board of directors of our general partner has an audit committee.  We do not have a compensation committee, but rather 

the board of directors of our general partner approves equity grants to directors and Antero Resources employees.  The board of 
directors of our general partner may establish a conflicts committee to review specific matters that the board believes may involve 
conflicts of interest. 

Audit Committee 

Rules implemented by the NYSE and SEC require us to have an audit committee comprised of at least three directors who 
meet the independence and experience standards established by the NYSE and the Exchange Act.  Messrs. Korus, Mollenkopf, and 
Peters serve on our audit committee, and Mr. Korus serves as the Chairman of the committee.  As required by the rules of the SEC and 
listing standards of the NYSE, the audit committee consists solely of independent directors.  SEC rules also require that a public 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:72)(cid:3)(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:180)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:3)(cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)ee 
(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)person who, based on his or her experience, possesses the attributes outlined in such rules.  Our board 
of directors believes that Mr. Korus possesses substantial financial experience based on his extensive experience as a former chief 
financial officer of a public company for over 15 years.  As a result of these qualifications, we believe Mr. Korus satisfies the 
(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:17)(cid:180) 

77 

 
This committee oversees, reviews, acts on and reports on various auditing and accounting matters to our board of directors, 

including: the selection of our independent accountants, the scope of our annual audits, fees to be paid to the independent accountants, 
the performance of our independent accountants and our accounting practices.  In addition, the audit committee oversees our 
compliance programs relating to legal and regulatory requirements.  We adopted an audit committee charter defining the commit(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)
primary duties in a manner consistent with the rules of the SEC and NYSE. 

Conflicts Committee 

Our general partner may, from time to time, have a conflicts committee to which the board will appoint at least two 
independent directors and which may be asked to review specific matters that the board believes may involve conflicts of interest and 
determines to submit to the conflicts committee for review.  The conflicts committee will determine if the resolution of the conflict of 
interest is adverse to the interest of the partnership.  The members of the conflicts committee may not be officers or employees of our 
general partner or directors, officers or employees of its affiliates, including AMGP and Antero Resources, and must meet the 
independence standards established by the NYSE and the Exchange Act to serve on an audit committee of a board of directors, along 
with other requirements in our partnership agreement.  Any matters approved by the conflicts committee will be conclusively deemed 
to be approved by us and all of our partners and not a breach by our general partner of any duties it may owe us or our unitholders. 

On February 26, 2018, we announced that the board of directors of our general partner formed a conflicts committee 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:79)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:77)unction with the 
formation of the special committee at Antero Resources, and a conflicts committee at AMGP, the sole member of our general partner.  
(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86) involving the Partnership, 
on October 9, 2018, we announced that we had entered into the Simplification Agreement, pursuant to which, among other things, 
(1) AMGP will be converted from a limited partnership to a corporation under the laws of the State of Delaware, to be named Antero 
Midstream Corporation; (2) an indirect, wholly owned subsidiary of New AM will be merged with and into the Partnership, with the 
Partnership surviving the merger as an indirect, wholly owned subsidiary of New AM and (3) all the issued and outstanding Series B 
Units representing limited liability company interests of IDR Holdings will be exchanged for an aggregate of approximately 17.35 
(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:90)(cid:76)ll be a wholly owned subsidiary of 
(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:15)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)
common stock. 

Section 16(a) Beneficial Ownership Reporting Compliance 

Section 16(a) of the Exchange Act requires executive officers and board members of our general partner and persons who 
beneficially own more than 10% of a registered class of our equity securities to file reports of ownership and changes in ownership 
with the SEC and to furnish us with copies of all such reports. 

Based solely upon our review of reports received by us, or representations from certain reporting persons that no filings were 
required, we believe that all of the officers and board members of our general partner and persons who beneficially owned more than 
10% of our common units complied with all applicable filing requirements during fiscal year 2018.   

78 

 
 
 
 
Item 11.  Executive Compensation  

COMPENSATION DISCUSSION AND ANALYSIS  

Overview 

Neither we nor our general partner have any employees.  All of the executive officers of our general partner and other 
personnel who provide services to our business are employed by Antero Resources.  This Item 11 provides information relating to the 
compensation of the following named exec(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:90)(cid:75)(cid:82)(cid:80)(cid:3)(cid:90)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:179)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)
(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:180)(cid:29) 

2018 Named Executive Officers 

Name 
Paul M. Rady 
Glen C. Warren, Jr. 
Michael N. Kennedy 
Alvyn A. Schopp 
Kevin J. Kilstrom 

Principal Position 

  Chairman of the Board and Chief Executive Officer 
  Director, President and Secretary 
  Chief Financial Officer and Senior Vice President(cid:178)Finance 
  Chief Administrative Officer, Regional Senior Vice President and Treasurer 
  Senior Vice President(cid:178)Production 

Our Named Executive Officers currently receive all of their compensation and benefits for services provided to our business 

from Antero Resources, Antero Midstream and IDR LLC.  All decisions regarding the compensation of our Named Executive 
Officers, other than with respect to long-term equity incentive awards under the Antero Midstream Partners LP Long-Term Incentive 
(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
Resources and our general partner, we are required to reimburse Antero Resources for a proportionate amount of compensation 
(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:72)(cid:75)(cid:68)(cid:79)(cid:73)(cid:17)(cid:3)(cid:36)(cid:79)(cid:87)(cid:75)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:90)(cid:72)(cid:3)(cid:69)(cid:72)(cid:68)(cid:85)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)ion 
and benefits to our Named Executive Officers, we have no control over such costs and do not establish or direct the compensation 
policies or practices of Antero Resources or IDR LLC. 

The following Compensation Discussion and Analysis provides an overview of compensation policies and programs 

applicable to our Named Executive Officers and describes the compensation objectives, policies and practices with respect to our 
(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)
(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:68)(cid:79) by the Board. Certain members of 
the Board are members of the board of directors of Antero Resources. Messrs. Kagan, Keenan and Connor served on our Board and 
the board of directors of Antero Resources in 2018.  As used in this Item 11 (other than in this (cid:179)(cid:50)(cid:89)(cid:72)(cid:85)(cid:89)(cid:76)(cid:72)(cid:90)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:12)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:15)(cid:180)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)ences to 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)es, and references to the Partnership refer to us, 
Antero Midstream Partners LP. 

The following discussion provides information about our compensation decisions and policies with regard to our Named 
Executive Officers for the 2018 fiscal year, and is intended to provide investors with the information necessary to understand our 
compensation policies and decisions.  It also provides context for the disclosure included in the executive compensation tables below. 

2018 Say-on-Pay Advisory Vote 

(cid:36)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)018 annual meeting, the stockholders of the Company were asked to approve, on an advisory basis, the 
compensation of the Named Executive Officers. Advisory votes in favor of our executive compensation program were cast by over 
98% of the shares of common s(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:76)(cid:81)(cid:74)(cid:17)(cid:3)
(cid:55)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:87)(cid:82)(cid:82)(cid:78)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:68)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:51)(cid:68)(cid:92)(cid:180)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71) 
Executive Officers in 2018. We have continued, and plan to continue, engaging in ongoing shareholder outreach regarding corporate 
governance generally, including executive compensation programs.  

Compensation Philosophy and Objectives of Our Compensation Program 

Since our inception, our compensation philosophy has been predominantly focused on recruiting individuals who are 

motivated to help us achieve superior performance and growth.  Our company was founded by entrepreneurs whose strategy was to 

79 

 
 
 
     
 
 
 
 
 
 
employ high-impact executives who are extremely effective at sparking superior performance with low overhead.  These highly 
qualified and experienced individuals have contributed to the continued success of our Company, driving an 20% compound annual 
growth rate in debt-adjusted net production per share and a 21% compound annual growth rate in oil and gas net proved reserves since 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:3)(cid:44)(cid:51)(cid:50)(cid:17)(cid:3) 

Historically, to achieve our objectives, we sought to implement a compensation program that reflected the unique strategy 

and entrepreneurial culture of our organization.  Specifically, we sought to reward our Named Executive Officers by emphasizing 
long-term equity-based incentive compensation, which allowed our senior leaders to build significant ownership in the Company.  We 
believe this approach served to motivate our Named Executive Officers and align their interests with those of the Company and our 
shareholders.  Our Named Executive Officers currently hold approximately 9% of our outstanding shares, which ensures they identify 
with the best interests of our shareholders. 

As the Company continues to mature, we are continuing to transition from an entrepreneurial-based management incentive 

structure to a more traditional compensation program.  This transition called for us to make certain modifications to our compensation 
philosophy and attendant adjustments in our compensation program.  More specifically, our goal is to focus on returns and value 
creation per share that will reward more disciplined capital investment, efficient operations, and free cash flow generation.  In 
addition, for calendar year 2018, we adopted a simplified annual incentive program that focuses on four key performance metrics.  
Further, our compensation program targets the market median for all elements of our Named Execu(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)
believe these changes to our compensation philosophy and practices promoted a stronger alignment between Named Executive Officer 
pay and Company performance, and deliver greater value to our shareholders as our Company continues to grow and mature. 

Compensation Best Practices 

The following table highlights the compensation best practices we follow: 

What We Do 

(cid:58)(cid:75)(cid:68)(cid:87)(cid:3)(cid:58)(cid:72)(cid:3)(cid:39)(cid:82)(cid:81)(cid:182)(cid:87)(cid:3)(cid:39)(cid:82) 

✓  Use a representative and relevant peer group 
✓  Target the market median for all elements of 
(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) 

✓  Apply robust minimum stock ownership 

guidelines 

✗  No tax gross ups for executive officers 
✗  (cid:49)(cid:82)(cid:3)(cid:179)(cid:86)(cid:76)(cid:81)(cid:74)(cid:79)(cid:72)-(cid:87)(cid:85)(cid:76)(cid:74)(cid:74)(cid:72)(cid:85)(cid:180)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)-in-control cash 

payments 

✗  No excessive perquisites 
✗  No severance arrangements for Named 

✓  Link annual incentive compensation to the 

Executive Officers 

achievement of objective pre-established 
performance goals tied to operational and 
strategic priorities 

✓  Evaluate the risk of our compensation 

programs 

✓  Use and review compensation tally sheets 
✓  Provide 100% long-term incentive awards in 
the form of performance-based equity  
✓  Use an independent compensation consultant 
✓  Maintain a clawback policy 

✗  No guaranteed bonuses for Named Executive 

Officers 

✗  No management contracts 
✗  No re-pricing, backdating or underwater cash 

buy-outs of options or stock appreciation rights 

✗  No hedging or pledging of Company stock 
✗  No separate benefit plans for Named Executive 

Officers 

✗  No granting of stock options with an exercise 
price less than the fair market value of the 
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Implementing Our Compensation Program Objectives 

Role of the Compensation Committee 

The Compensation Committee oversees all matters of our executive compensation program and has the final decision-making 

authority on all executive compensation matters.  Each year, the Compensation Committee reviews, modifies (if necessary), and 
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(cid:11)(cid:179)(cid:38)(cid:40)(cid:50)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)
(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:40)(cid:50)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:54)(cid:72)(cid:70)(cid:85)(cid:72)(cid:87)(cid:68)(cid:85)(cid:92)(cid:3)
(cid:11)(cid:179)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:18)(cid:38)(cid:41)(cid:50)(cid:180)(cid:12)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:85)(cid:68)(cid:80)(cid:72)(cid:90)(cid:82)(cid:85)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:74)(cid:82)(cid:68)(cid:79)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:37)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Compensation Committee sets the compensation of the CEO and the President/CFO.  

80 

 
 
The CEO and the President/CFO typically provide recommendations to the Compensation Committee regarding the 
compensation levels for the other executive officers and for our executive compensation program as a whole.  In making their 
recommendations, the CE(cid:50)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:18)(cid:38)(cid:41)(cid:50)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)
performance during the year, and comparable company compensation levels and independent oil and gas company compensation 
surveys.  The Compensation Committee considers these recommendations when reviewing the performance of, and setting 
compensation for, the other executive officers.  

Actual compensation decisions for individual officers are the result of a subjective analysis of a number of factors, including 

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position, and relevant trends in compensation practices.  The Compensation Committee also considers a Named Executive O(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)
current and prior compensation when setting future compensation. Specifically, current compensation is considered a base, and the 
Compensation Committee determines whether adjustments to that base are necessary to retain the executive in light of competition 
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result of the exercise of judgment based on all reasonably available information and, to that extent, compensation is discretionary. 

Role of External Advisors 

The Compensation Committee has the authority to retain an independent executive compensation consultant.  For 2018, the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:85)(cid:72)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:41)(cid:85)(cid:72)(cid:71)(cid:72)(cid:85)(cid:76)(cid:70)(cid:3)(cid:58)(cid:17)(cid:3)(cid:38)(cid:82)(cid:82)(cid:78)(cid:3)(cid:9)(cid:3)(cid:38)(cid:82)(cid:17)(cid:15)(cid:3)(cid:44)(cid:81)(cid:70)(cid:17)(cid:3)(cid:11)(cid:179)(cid:41)(cid:17)(cid:58)(cid:17)(cid:3)(cid:38)(cid:82)(cid:82)(cid:78)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)h the SEC and NYSE disclosure 
requirements, the Compensation Committee reviewed the independence of F.W. Cook under six independence factors. After its 
review, the Compensation Committee determined that F.W. Cook was independent. 

In 2018, F.W. Cook: 

(cid:120)  Collected and reviewed all relevant company information, including our historical compensation data and our 

organizational structure; 

(cid:120)  With input from management, established a peer group of companies to use for executive compensation comparisons; 

(cid:120)  Assessed (cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)

compensation philosophy; 

(cid:120)  Prepared a report of its analysis, findings and recommendations for our executive compensation program; and 

(cid:120)  Completed other ad hoc assignments, such as helping with the design of incentive arrangements. 

(cid:41)(cid:17)(cid:58)(cid:17)(cid:3)(cid:38)(cid:82)(cid:82)(cid:78)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:48)(cid:72)(cid:86)(cid:86)(cid:85)(cid:86)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)

making their recommendations to the Compensation Committee. 

Competitive Benchmarking 

When assessing the soundness of our compensation programs, the Compensation Committee compares the pay practices for 

our Named Executive Officers against the pay practices of other companies.  This process recognizes our philosophy that our 
compensation practices should be competitive, though marketplace information is only one of the many factors we consider. 

Messrs. Rady and Warren used market compensation data provided by F.W. Cook to assess the total compensation levels of 
our top five executives relative to market, and to make recommendations to the Compensation Committee.  Market data is developed 
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(described below) and with those in the E&P industry in general.  To the extent possible, we consider the specific responsibilities 
assumed by our executives and those assumed by executives at other organizations (based on peer SEC filings) to determine whether 
the positions are comparable.  We give greater weight to Peer Group data if a position appears comparable to the position of one of 
our Named Executive Officers.  Otherwise, we supplement Peer Group data with industry data from the 2018 Oil and Gas E&P 
Industry Compensation Survey prepared by Effective Compensation, Incorporated. 

81 

Peer Group  

In 2018, F.W. Cook identified a peer group of onshore publicly traded oil and gas companies that are reasonably similar to us 

in terms of size and operations. We refer to the f(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:20)(cid:26)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:72)(cid:72)(cid:85)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:180)(cid:29) 

(cid:120)     Cabot Oil & Gas Corporation 
(cid:120)     Cimarex Energy Co. 
(cid:120)     CNX Resources Corporation 
(cid:120)     Concho Resources Inc. 
(cid:120)     Continental Resources Corporation 
(cid:120)     Devon Energy Corporation 
(cid:120)     Diamondback Energy, Inc. 
(cid:120)     EQT Corporation 
(cid:120)     Noble Energy, Inc. 

(cid:120)     Parsley Energy, Inc. 
(cid:120)     Pioneer Natural Resources Company 
(cid:120)     QEP Resources, Inc. 
(cid:120)     Range Resources Corporation 
(cid:120)     SM Energy Company 
(cid:120)     Southwestern Energy Company 
(cid:120)     Whiting Petroleum Corporation 
(cid:120)     WPX Energy, Inc. 

Two members of our 2017 peer group, Energen Corporation and Newfield Exploration Company, were removed from our 

Peer Group for 2018 due to pending acquisitions at the time of the review, and three companies, CNX Resources Corporation, 
Diamondback Energy, Inc. and Parsley Energy, Inc., were added to the Peer Group based on similar size and operational scale. 

Positioning Versus Market  

Beginning in 2018, we determined that it was appropriate to target the median of the Peer Group for base salaries, annual 

cash incentive awards, and long-term equity-based incentive awards.  This is a reduction from 2017, when compensation was targeted 
at the 75th percentile.  This reduction was adopted in response to our 2017 say-on-pay vote and feedback received from our 
shareholder outreach program.  As noted throughout this Compensation Discussion and Analysis, target compensation is only one of 
many factors considered by the Compensation Committee when setting compensation levels for our Named Executive Officers. 

Elements of Direct Compensation 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:78)(cid:72)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:82)(cid:81)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Pay Component 

Form of Pay 

Base salary 

Cash 

Annual incentive 
awards 

Cash 

How Amount is Determined 
Market-competitive amount that reflects 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:86)(cid:78)(cid:76)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)
responsibilities, experience and 
contributions 
Performance against four metrics 

Long-term incentive 
awards 

100% 
performance 
share units 

Three-year return on capital employed; 
and three-year absolute total 
shareholder return, as adjusted by 
relative total shareholder return 
compared to the Peer Group 

Objective 

Provide a minimum, fixed 
level of cash compensation 

Encourage performance that 
is aligned with our business 
strategy and that should lead 
to long-term shareholder 
value 
Encourage performance that 
delivers value to shareholders 
through stock price 
appreciation 

For 2018, these components, at target, were distributed as shown below for our CEO and our other Named Executive Officers: 

82 

 
 
 
Base Salaries 

Base salaries are designed to provide a minimum, fixed level of cash compensation for services rendered during the year.  In 
addition to providing a base salary that is competitive with salaries paid by other independent oil and gas exploration and production 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:92)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:83)(cid:85)(cid:76)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)s 
base salary level relative to the base salary levels of our other officers.  Our objective is to have base salaries that accurately reflect 
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:86)(cid:78)(cid:76)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:82)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:81)(cid:71)(cid:15)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:68)(cid:85)(cid:92)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72) based on a 
subjective analysis of many individual factors, including: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

the responsibilities of the officer; 

the period over which the officer has performed these responsibilities; 

(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:15)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:86)(cid:72)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:30) 

the strategic impact (cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

the potential future contribution and demonstrated individual performance of the officer. 

In addition to the individual factors listed above, the Compensation Committee considers our overall business performance 

and implementation of Company objectives when determining annual base salaries.  While these metrics generally provide context for 

83 

 
 
 
 
making salary decisions, base salary decisions do not depend on attainment of specific goals or performance levels and no specific 
weighting is given to one factor over another. 

Base salaries are reviewed annually, but are not necessarily increased if the Compensation Committee believes that (1) our 
executives are currently compensated at proper levels in light of Company performance or external market factors, or (2) an increase 
or addition to other elements of compensation would be more appropriate in light of our stated objectives. 

In February 2018, after comparing base salary levels to those of similarly situated executives in the Peer Group and 

considering the individual and business factors described above, Messrs. Rady and Warren recommended to the Compensation 
Committee that the Named Executive Officers other than themselves receive a 3% base salary increase to reflect increases in cost of 
living, as reflected in the table below.  The Compensation Committee approved this recommendation. 

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

Annual Cash Incentive Awards 

Purpose and Operation 

Base Salary 
as of March 2017 

Base Salary 
as of March 2018 

Percentage 
Increase 

  $ 
  $ 
  $ 
  $ 
  $ 

858,000    $ 
645,000    $ 
432,000    $ 
432,000    $ 
375,000    $ 

858,000   
645,000   
444,960   
444,960   
386,250   

0  % 
0  % 
3  % 
3  % 
3  % 

Annual cash incentive payments, which we also refer to as cash bonuses, are a key component of each Named Executive 

(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:68)(cid:70)(cid:78)(cid:68)(cid:74)(cid:72)(cid:17)(cid:3)(cid:3)(cid:43)(cid:76)(cid:86)(cid:87)(cid:82)(cid:85)(cid:76)(cid:70)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:85)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:69)(cid:82)(cid:81)(cid:88)(cid:86)(cid:17)(cid:3)
However, based on recommendations from F.W. Cook, the Compensation Committee implemented a formal annual incentive plan 
design beginning in fiscal 2014.  This annual incentive plan is based on a balanced scorecard that is used to measure our performance.  

As part of a more structured annual incentive program, we adopted bonus targets for each of the Named Executive Officers, 

expressed as a percentage of base salary.  These targets, which were determined based on our compensation strategy of providing 
incentive compensation opportunities that are competitive with the market median, are listed below. 

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

2018 Target 
Bonus (as a % 
of base salary)   

120 % 
100 % 
85 % 
85 % 
85 % 

84 

     
    
     
 
 
 
     
 
 
 
 
 
 
 
 
Performance Metrics 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:72)(cid:72)(cid:71)(cid:69)(cid:68)(cid:70)(cid:78)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:85)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

Compensation Committee decided to alter the structure of our annual incentive program.  We believe the new, simplified design of the 
annual incentive program implemented for 2018 provides a more transparent bonus structure with more objectively determinable 
(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:89)estment experience.  The Compensation 
Committee selected the four metrics described below for the 2018 fiscal year under our annual incentive plan.  These metrics, which 
were specifically chosen for their importance in supporting the strategic initiatives we have established for 2018, are weighted equally 
in calculating annual bonuses.  The following tables shows the results of the 2018 annual incentive program: 

Weighting 
Factor 

Selected Metrics 
Debt-Adjusted Net 

Threshold 
Performance 

Target 
Performance 

  Maximum 

Performance 

Actual 
Performance 

  Performance 
(% of Target) 

  Weighted 

Score 

25% 

25% 
25% 

25% 

100% 

Production Growth 
per Share (1) 
Net Debt/EBITDAX 
Free Cash Flow (3) 
Safety and 

(2) 

Environmental (4) 

9% 

13% 

2.5x 
  $(170 million) 

2.1x 
$20 million 

18% 

1.8x 

  $215 million 

13% 

2.2x 
  $(303 million) 

0.800 TRIR 

0.580 TRIR 

.300 TRIR 

0.554 TRIR 

0.100 LTIR 
(cid:178) 

0.080 LTIR 
0 Notices 

.030 LTIR 
(cid:178) 

0.077 LTIR 
0 Notices 

100% 

88% 
0% 

106% 

109% 
100% 

TOTAL   

25% 

21.88% 
0% 

8.83% 

9.11% 
8.33% 
73.15% 

(1)  Debt-Adjusted Net Production Growth per Share 

Definition.  Annual production volumes divided by debt-adjusted shares.  Debt-adjusted shares represent current shares 
outstanding plus the quotient of total debt at year end 2018, divided by the weighted average share price during 2018.  

Rationale.  Production volumes are critical to our profitability.  Measuring those volumes on a debt-adjusted per-share basis 
motivates management to produce those volumes in a capital-efficient manner. 

(2)  Net Debt/EBITDAX 

Definition.  Year-end 2018 net debt divided by 2018 full-year adjusted EBITDAX. 

Rationale.  Managing the balance sheet leverage is essential for growing the business efficiently.  Net Debt/EBITDAX is a key 
debt coverage ratio that motivates management to minimize debt relative to cash flow. 

(3)  Free Cash Flow 

Definition.  Stand-alone E&P adjusted operating cash flow, less stand-alone E&P drilling and completion capital, less land 
maintenance capital.  

Rationale.  Measuring and rewarding Free Cash Flow directly supports our go-forward strategy of sustainable free cash flow 
growth by motivating management to optimize operating cash flow relative to upstream capital budgets. 

(4)  Safety and Environmental 

Definition. The Company measured performance in the Safety and Environmental performance category through several lagging 
indicators:  

(cid:120)  (cid:47)(cid:82)(cid:86)(cid:87)(cid:3)(cid:55)(cid:76)(cid:80)(cid:72)(cid:3)(cid:44)(cid:81)(cid:70)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:68)(cid:87)(cid:72)(cid:3)(cid:11)(cid:179)(cid:47)(cid:55)(cid:44)(cid:53)(cid:180)(cid:12). This metric refers to the number of lost time injuries (i.e., work-related injuries that result 
in an employee being unable to perform normal work duties the work day following the injury event). LTIR is calculated first 
by multiplying the total number of lost time injuries by 200,000, and then dividing that product by the number of labor hours 
for the recording period. 

85 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
(cid:120)  (cid:55)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:44)(cid:81)(cid:70)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:68)(cid:87)(cid:72)(cid:3)(cid:11)(cid:179)(cid:55)(cid:53)(cid:44)(cid:53)(cid:180)(cid:12). This metric refers to the number of OSHA recordable injuries/illnesses (i.e., work-
related injuries/illnesses that result in medical intervention beyond first aid). TRIR is calculated first by multiplying the total 
number of recordable injuries/illnesses by 200,000, and then dividing that product by the number of labor hours for the 
recording period. 

(cid:120)  Environmental. Performance with respect to this metric is attained if there are no major environmental related Notices of 

Violation (fines not exceeding $100,000) occurring during the measurement period. 

In addition, the Company monitored several leading indicators in determining performance for the Safety and Environmental 
performance category. Leading indicators are proactive, preventative and predictive measures that provide current 
information regarding the effective performance, activities and processes of a Safety and Environmental system that may help 
identify, eliminate or control risks in the workplace. Management reviewed the progress of each leading indicator throughout 
2018 and assessed if performa(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:72)(cid:84)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:79)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:79)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:29)(cid:3)(cid:43)(cid:54)(cid:54)(cid:40)(cid:3)
training, Operational Safety Steering Team activities, Corrective Action/Preventative Action closeout, Environmental 
Compliance Audit Score, Operational Risk Register Reviews, and Field Safety Committee meeting compliance. 

Rationale. Maintaining a safe work environment and sustainable environmental record is critical to the success of the business 
and execution of our strategy.  Measuring safety and environmental metrics motivates all participants to maintain focus on these 
metrics. 

2018 Annual Incentive Program Payouts 

The Compensation Committee evaluated the 2018 annual incentive scorecard and considered the factors noted above.  Our 

performance for 2018 resulted in a payout calculation of 73.15%.  The Compensation Committee elected to pay 2018 annual incentive 
bonuses in March 2019 in the amounts shown below for the Named Executive Officers.  There were no adjustments for individual 
performance. 

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

2018 Target Bonus ($) 
1,029,600 
645,000 
378,216 
378,216 
328,313 

Performance Achievement 
Level (Percentage of 
Target) 
73.15% 
73.15% 
73.15% 
73.15% 
73.15% 

Actual 2018 Bonus ($) 

753,140 
471,810 
276,661 
276,661 
240,157 

We are aware that equity prices for E&P companies remain depressed.  However, we believe that the results of our annual 

incentive program are appropriate and aligned with the interests of our shareholders.  We consider the results of this program to have a 
direct correlation to the actions of our management team.  Payments under the annual incentive plan will help us to retain and reward 
the executive team that is responsible for our success.  

Long-Term Equity-Based Incentive Awards 

Long-Term Incentive Awards Granted in 2018 

Based on feedback received from our shareholders in connection with our outreach program, the Compensation Committee 
adjusted our compensation philosophy with respect to long-term equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
experience in the Company.  Specifically, equity awards granted in 2018 targeted the market 50th percentile of the Peer Group, 
resulting in a reduced grant value for each Named Executive Officer (in the aggregate, grant values for 2018 were reduced 23% 
compared to grant values for 2017).  In 2018, all long-term incentive awards for our Named Executive Officers were in the form of 
performance share units granted under the Antero Resources Corporation Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)
performance share units grant(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)-Based 
(cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:41)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79)(cid:3)(cid:60)(cid:72)(cid:68)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

(cid:50)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:26)(cid:19)(cid:8)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:55)(cid:54)(cid:53)(cid:180)(cid:15)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)

relati(cid:89)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:80)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:72)(cid:85)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:54)(cid:53)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:22)(cid:19)(cid:8)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:71)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:53)(cid:50)(cid:38)(cid:40)(cid:180)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)
Compensation Committee selected these metrics as they provide for a rigorous framework that rewards the Named Executive Officers 

86 

 
 
 
 
 
 
 
 
 
 
 
for improv(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:74)(cid:68)(cid:76)(cid:81)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:71)(cid:88)(cid:86)(cid:87)(cid:85)(cid:92)(cid:3)(cid:83)(cid:72)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:17)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)
performance metric because it motivates the Named Executive Officers to make decisions that result in efficient deployment of capital 
in the business. Additionally, ROCE is a metric that many investors consider when assessing the performance of companies in the oil 
and gas sector.  

(cid:44)(cid:81)(cid:3)(cid:82)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:70)(cid:75)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3)(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)price of 

(cid:7)(cid:21)(cid:23)(cid:17)(cid:28)(cid:26)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72)(cid:180)(cid:12)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year performance period on April 15, 2021, with the payout, subject to adjustment 
as described below, determined as follows: 

Performance Level 
Below Threshold 
Threshold 
Target 
Maximum 

Absolute TSR 
< 50% of Target Price 
50% of Target Price 
Target Price 
(cid:149)(cid:3)(cid:20)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72) 

Performance Payout % 
 (Pre-Adjustment) 
0% 
50% 
100% 
150% 

Following determination of the absolute TSR, the payout of the TSR PSUs may be adjusted to reflect our TSR performance 

relative to our peer group over the performance period. A relative TSR ranking of less than the 25th percentile results in a negative 
50% adjustment to the payout of the TSR PSUs, and a relative TSR ranking of greater than the 75th percentile results in a positive 50% 
adjustment to the payout of the TSR PSUs. A relative TSR ranking of between the 25th percentile and the 75th percentile would not 
result in an adjustment to the payout of the TSR PSUs. 

In order to achieve payout und(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:27)(cid:24)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:27)(cid:17)(cid:26)(cid:8)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:180)(cid:12)(cid:3)

at the end of the three-year performance period on December 31, 2020, with the payout determined as follows: 

Performance Level 
Below Threshold 
Threshold 
Target 
Maximum 

ROCE 
< 85% of Target ROCE 
85% of Target ROCE 
Target ROCE 
(cid:149)(cid:3)(cid:20)(cid:20)(cid:24)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40) 

Performance Payout % 
0% 
50% 
100% 
200% 

Other Benefits 

Health and Welfare Benefits 

Our Named Executive Officers are eligible to participate in all of our employee health and welfare benefit arrangements on 

the same basis as other employees (subject to applicable law).  These arrangements include medical, dental and disability insurance, as 
well as health savings accounts.  We provide these benefits in order to ensure that we can competitively attract and retain officers and 
other employees.  This is a fixed component of compensation, and these benefits are provided on a non-discriminatory basis to all 
employees. 

Retirement Benefits 

We maintain an employee retirement savings plan through which employees may save for retirement or future events on a 

tax-advantaged basis.  Participation in the 401(k) plan is at the discretion of each individual employee, and our Named Executive 
Officers participate in the plan on the same basis as all other employees.  The plan permits us to make discretionary matching and non-
elective contributions.  Since January 1, 2014, the Company has matched 100% of the first 4% of eligible compensation that 
employees contribute to the plan, but on January 1, 2019, the Company increased its match to the first 6% of eligible compensation 
that employees contribute to the plan.  These matching contributions are immediately fully vested.  

Perquisites and Other Personal Benefits 

We believe the total mix of compensation and benefits provided to our Named Executive Officers are currently competitive.  

(cid:55)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:83)(cid:72)(cid:85)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:92)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:85)(cid:82)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

87 

 
 
 
 
Impact of Simplification Transaction  

(cid:36)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:178)Agreements Related 

(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:180)(cid:3)(cid:90)(cid:72)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)he 
Transactions contemplated by the Simplification Agreement, outstanding phantom units under the Midstream LTIP and Series B Units 
in IDR LLC held by certain of our Named Executive Officers will be converted or exchanged as described below.  The Transactions 
will not constitute a "change in control" transaction under the applicable compensation arrangements, thus there are no change in 
control payments due to the executive officers in connection with the Transactions.  

Antero Midstream Phantom Units 

Our Named Executive Officers spend a portion of their time providing services to the Partnership, and thus are entitled to 

receive grants of equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:47)(cid:82)(cid:81)(cid:74)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:49)(cid:82)(cid:89)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:15)(cid:3)
each of our Named Executive Officers was granted phantom units under the Midstream LTIP in connection with the initial public 
offering of the Partnership.  In April 2016 and 2017, each of our Named Executive Officers was granted additional phantom units 
under the Midstream LTIP as compensation for their additional services provided to the Partnership.  No phantom units under the 
Midstream LTIP were granted during 2018.  Phantom units granted under the Midstream LTIP generally represent the right to receive 
common units of the Partnership upon vesting.  

At the effective time of the Transactions, each outstanding phantom unit under the Midstream LTIP, including those held by 
our Named Executive Officers, will be converted into a restricted stock unit or similar award of New AM with substantially the same 
terms and conditions (including with respect to vesting) applicable to such phantom unit award immediately prior to the effective time 
of the Transactions, representing the right to receive a number of shares of common stock of New AM equal to (i) the number of 
common units of the Partnership subject to such phantom unit award immediately prior to the effective time of the Transactions, 
multiplied by (ii) (A) 1.6350, plus (B) $3.415 divided by the average of the 20-day volume weighted average trading price per 
common share representing limited partner interests in AMGP prior to the election deadline.  Additionally, all distribution equivalent 
rights granted in tandem with a corresponding phantom unit award will be converted into a distribution equivalent right or similar 
award of New AM with substantially the same terms and conditions (including with respect to vesting) applicable to such distribution 
equivalent right immediately prior to the effective time of the Transactions, representing the right to receive (i) any balance accrued on 
such distribution equivalent right as of the effective time of the Transactions and (ii) any dividends paid or distributions made by New 
AM from and after the effective time of the Transactions with respect to the number of shares of common stock of New AM subject to 
the converted phantom unit award to which such converted distribution equivalent right relates.  

Series B Units in IDR LLC 

(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:3)(cid:20)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:17)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)ecember 31, 2018, Messrs. Rady, Warren and 
Kennedy held 48,000, 32,000 and 4,000, respectively, of the 98,600 outstanding Series B Units in IDR LLC.  To the extent vested, the 
Series B Units in IDR LLC entitle the holders thereof to receive, subject to the terms and provisions of the IDR LLC Agreement and 
the incentive unit award agreements pursuant to which the awards were granted, a proportionate amount of up to 6% of any future 
(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)Rs that are held by IDR LLC in excess of $7.5 million per 
quarter.  Unvested Series B Units in IDR LLC are not entitled to receive any distributions; however, in connection with any 
(cid:86)(cid:88)(cid:69)(cid:86)(cid:72)(cid:84)(cid:88)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:3)(cid:88)(cid:81)vested Series B Unit in IDR LLC becomes vested, the 
holder of such vested Series B Unit in IDR LLC is entitled to receive an additional distribution equal to the aggregate amount of 
distributions that would have been made with respect to such Series B Unit in IDR LLC during the period in which such Series B Unit 
was unvested if such Series B Unit had been vested.  

With respect to vested Series B Units in IDR LLC, Messrs. Rady, Warren and Kennedy have the right, upon delivery of 

notice to IDR LLC, to require IDR LLC to redeem all or a portion of their vested Series B Units for a number of newly issued AMGP 
common shares, equal to the quotient determined by dividing (a) the product of (i) the Per Vested B Unit Entitlement (as defined 
below) and (ii) the number of vested Series B Units being redeemed, by (b) the volume-weighted average price of an AMGP common 
(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:71)(cid:68)(cid:92)(cid:86)(cid:3)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:71)(cid:68)(cid:92)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:70)(cid:72)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72)(cid:180)).   
However, in no event will the aggregate number of AMGP common shares issued by AMGP pursuant to all such redemptions by 
owners of Series B Units exceed 6% of the aggregate number of issued and outstanding AMGP common shares.   

For purposes of the redemption right described above, (cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:72)(cid:85)(cid:3)(cid:57)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)

the IDR LLC Agreement, and will equal, as of the date of determination, the quotient obtained by dividing (a) the product of (i) the 
fair market value of IDR LLC (which for this purpose is based on the equity value of AMGP calculated on the applicable date of 

88 

determination by multiplying the AMGP VWAP Price and the number of then-outstanding AMGP common shares) as of such date 
minus $2.0 billion and (ii) the product of (A) 6%, (B) the percentage of authorized Series B Units that are outstanding at such time and 
(C) the percentage of outstanding Series B Units that have vested, by (b) the total number of vested Series B Units outstanding at such 
time.  In addition, upon the earliest to occur of (x) December 31, 2026, (y) a change of control transaction of AMGP or of IDR LLC, 
or (z) a liquidation of IDR LLC, AMGP may redeem each outstanding Series B Unit in exchange for AMGP common shares in 
accordance with the ratio described above, subject to certain limitations.  

The remaining unvested Series B Units in IDR LLC issued to Messrs. Rady and Warren on December 31, 2016, will become 

vested on December 31, 2019, so long as the applicable executive remains continuously employed by us or one of our affiliates 
through such date.  The remaining unvested Series B Units in IDR LLC issued to Mr. Kennedy on January 10, 2017 will become 
vested on December 31, 2019, so long as Mr. Kennedy remains continuously employed by us or one of our affiliates through such 
date.  The potential acceleration and forfeiture events relating to these units are described in greater detail under the hea(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)
(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Pursuant to the Simplification Agreement, AMGP, as the managing member of IDR Holdings, and Messrs. Rady and Warren, 

as the holders of a majority of the Series B Units, entered into an amendment to the IDR Holdings LLC Agreement to facilitate the 
Series B Exchange.  At the effective time of the Transactions, each holder of Series B Units in IDR LLC, including our Named 
Executive Officers, will transfer each Series B Unit in IDR LLC it owns (vested and unvested) in exchange for (i) 176.0041 shares of 
common stock of New AM, which will be subject to the terms set forth in the limited liability company agreement of IDR LLC (the 
(cid:179)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12) and will vest in accordance with the applicable equity grant agreement pursuant to which the Series B Unit in 
IDR LLC was originally issued, (ii) an amount in cash equal to the unpaid distributions (other than tax distributions) declared with 
respect to vested Series B Units in IDR LLC, if any, pursuant to the distribution provisions of the IDR LLC Agreement, and (iii) an 
amount in cash to be deposited into an escrow account equal to the distributions declared with respect to unvested Series B Units in 
IDR LLC, excluding any amounts attributable to any distributions made with respect to unvested Series B Units in IDR LLC after 
December 31, 2018 but prior to the effective time of the Transactions.  Holders of Series B Units in IDR LLC, including our Named 
Executive Officers who hold Series B Units, will not be entitled to receive any distributions paid by IDR LLC or dividends paid by 
New AM during the 12 months ending December 31, 2019 that are payable on any Series B Units in IDR LLC or shares received in 
exchange for such Series B Units, as applicable, that are scheduled to vest on December 31, 2019. 

Other Matters 

Employment, Severance or Change-in-Control Agreements 

We do not maintain any employment, severance or change-in-control agreements with any of our Named Executive Officers. 

(cid:36)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180) any of Messrs. Rady, Warren, 

Schopp, Kilstrom or Kennedy could be entitled to receive accelerated vesting of his restricted stock units in the Company, Series B 
Units in IDR LLC or phantom units in the Partnership, as applicable (including shares of common stock of New AM received in 
exchange for such Series B Units in IDR LLC or phantom units in the Partnership), that remain unvested upon his termination of 
employment with us under certain circumstances or upon the occurrence of certain corporate events.  The Transactions will not result 
in accelerated vesting of such awards or the Series B Units. 

Unit Ownership Guidelines  

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)
number of common units in the Partnership within five years of the adoption of the guidelines or within five years of becoming an 
executive officer, whichever is later.  Specifically, each of our executive officers is required to own common units in the Partnership 
havi(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:72)(cid:84)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:80)(cid:88)(cid:79)(cid:87)(cid:76)(cid:83)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:68)(cid:85)(cid:92)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:81)(cid:3)(cid:69)(cid:72)low. 

Officer Level 
Chief Executive Officer, President, and Chief Financial Officer 
Vice President 
Other Officers (if applicable) 

Ownership Guideline 

5x annual base salary 
3x annual base salary 
1x annual base salary 

(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3) 

89 

Tax and Accounting Treatment of Executive Compensation Decisions 

(cid:54)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:20)(cid:25)(cid:21)(cid:11)(cid:80)(cid:12)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)(cid:38)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:20)(cid:28)(cid:27)(cid:25)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:71)(cid:72)(cid:180)(cid:12)(cid:15)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:68)(cid:3)(cid:7)(cid:20)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:180)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:54)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:20)(cid:25)(cid:21)(m)) that a public corporation may deduct for federal 
(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:68)(cid:91)(cid:3)(cid:38)(cid:88)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:45)(cid:82)(cid:69)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3)(cid:72)(cid:81)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:15)(cid:3)(cid:85)(cid:72)(cid:83)(cid:72)(cid:68)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)-based compensation 
exception to the Section 162(m) deduction limitation for tax years beginning after December 31, 2017. In addition, the Tax Cuts and 
(cid:45)(cid:82)(cid:69)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:17)(cid:180)(cid:3)(cid:3)(cid:58)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)rtain 
of our executives will be subject to the $1 million per year deduction limitation imposed by Section 162(m) unless such compensation 
qualifies for the transition relief applicable to certain compensation arrangements in place as of November 2, 2017.  While we will 
continue to monitor our compensation programs in light of the deduction limitation imposed by Section 162(m), our Compensation 
Committee considers it important to retain the flexibility to design compensation programs that are in the best long-term interests of 
the Company and our shareholders.  As a result, we have not adopted a policy requiring that all compensation be fully deductible.  The 
Compensation Committee may conclude that paying compensation at levels in excess of the limits under Section 162(m) is 
nevertheless in the best interests of the Company and our shareholders.  Given changes made to Section 162(m), it is likely that the 
Company will not be able to deduct for federal income tax purposes a portion of the compensation paid to our Named Executive 
Officers in 2018. 

Many other Code provisions and accounting rules affect the payment of executive compensation and are generally taken into 

consideration as our compensation arrangements are developed.  Our goal is to create and maintain compensation arrangements that 
are efficient, effective and in full compliance with these requirements. 

Risk Assessment 

We have reviewed our compensation policies and practices to determine if they create risks that are reasonably likely to have 

a material adverse effect on our Company. In connection with this risk assessment, we reviewed the design of our compensation and 
benefits program and related policies and determined that certain features of our programs and corporate governance generally help 
mitigate risk. Among the factors considered were the mix of cash and equity compensation, the balance between short- and long-term 
objectives of our incentive compensation, the degree to which programs provide for discretion to determine payout amounts, and our 
general governance structure. 

Our Compensation Committee believes that our approach of evaluating overall business performance and implementation of 
company objectives assists in mitigating excessive risk-taking that could harm our value or reward poor judgment by our executives. 
Several features of our programs reflect sound risk-management practices.  

(cid:120)  The Compensation Committee believes our overall compensation program provides a reasonable balance between short- 

and long-term objectives, which helps mitigate the risk of excessive risk-taking in the short term.  

(cid:120)  The metrics that determine ultimate value awarded under our incentive compensation programs are associated with total 
company value.  We do not believe these metrics create pressure to meet specific financial or individual performance 
goals.  

(cid:120)  The performance criteria reviewed by the Compensation Committee in determining cash bonuses are based on overall 

performance relative to continually evolving objectives, and the Compensation Committee uses its subjective judgment 
in setting bonus levels for our officer(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:73)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)
company-wide objectives encourages decision-making that is in the best long-term interests of our Company and our 
stakeholders as a whole.  

(cid:120)  The multi-year vesting of our equity awards discourages excessive risk-taking and undue focus on short-term gains that 

may not be sustainable.  

Due to the foregoing program features, the Compensation Committee concluded that our compensation policies and practices 

for all employees, including our Named Executive Officers, are not reasonably likely to have a material adverse effect on the 
Company. 

90 

Tally Sheets 

The Compensation Committee uses tally sheets as a reference point in reviewing and establishing our Named Executive 

(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:86)(cid:75)(cid:72)(cid:72)(cid:87)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:68)(cid:3)(cid:75)(cid:82)(cid:79)(cid:76)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)
compensation, including base salary, annual cash incentive awards, long-term equity incentive awards and indirect compensation such 
as perquisites and retirement benefits.  Tally sheets also demonstrate the amounts each executive could potential receive under various 
termination and change in control scenarios, as well as a summary of all shares beneficially owned.   

Hedging and Pledging Prohibitions 

We have adopted an Insider Trading Policy at each of the Company, the Partnership, and AMGP that prohibits our Named 

Executive Officers from engaging in speculative transactions involving our common stock, common units of the Partnership, and 
common shares of AMGP, including buying or selling puts or calls, short sales, purchases of securities on margin, or otherwise 
hedging the risk of ownership of such securities.  The Insider Trading Policies also strictly prohibit our Named Executive Officers 
from pledging shares of such securities as collateral. 

Clawback Policy 

We have adopted a general clawback policy at each of the Company and the Partnership covering long-term incentive award 

plans and arrangements.  The clawback policy applies to our current Named Executive Officers as well as certain of our former 
Named Executive Officers.  Generally, recoupment of compensation would be triggered under the policy in the event of a financial 
restatement caused by fraud or intentional misconduct.  In the event of such misconduct, we may recoup performance-based equity 
compensation that was granted, earned or vested based wholly or in part upon the attainment of any financial reporting measure during 
the period in which such misconduct took place.  The clawback policy gives the policy administrator discretion to determine whether a 
clawback of compensation should be initiated in any given case, as well as the discretion to make other determinations, including 
(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:15)(cid:3)the amount of compensation to be clawed back, and the form of 
reimbursement to the Company. 

In order to comply with applicable law, the clawback policy may be updated or modified once the SEC adopts final clawback 
rules pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  In addition, the AR LTIP, the Midstream 
LTIP and the Antero Midstream Partners GP LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)
required by applicable law or any applicable securities exchange listing standards, or as otherwise determined by the Compensation 
Committee, all awards under the AR LTIP, Midstream LTIP and AMGP LTIP, as applicable, are subject to the provisions of any 
clawback policy the Company or the Partnership, as applicable, implements. 

Board Report 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:179)(cid:86)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:15)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:71)(cid:72)(cid:72)(cid:80)(cid:72)(cid:71)(cid:3)(cid:179)(cid:73)(cid:76)(cid:79)(cid:72)(cid:71)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)y 
reference into any filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective 
of any general incorporation language in such filing. 

The Board of Directors of our general partner has reviewed and discussed the foregoing Compensation Discussion and 
Analysis required by Item 402(b) of Regulation S-K with management and, based on such review and discussion, the Board of 
Directors of our general partner has determined that the Compensation Discussion and Analysis shall be included in this Annual 
Report on Form 10-K. 

Antero Midstream Partners GP LLC Board Members: 

Peter R. Kagan 
W. Howard Keenan, Jr. 
Paul J. Korus 
David A. Peters 
John C. Mollenkopf 
Paul M. Rady 
Glen C. Warren, Jr. 

91 

 
 
 
Summary Compensation Table 

The following table summarizes, with respect to our Named Executive Officers, information relating to the compensation 

earned for services rendered in all capacities during the fiscal years ended December 31, 2018, 2017 and 2016. 

Summary Compensation Table for the Years Ended December 31, 2018, 2017 and 2016 

Name and Principal 
Position 
Paul M. Rady 
(Chairman of the Board  
of Directors and Chief  
Executive Officer) 

Glen C. Warren, Jr. 
(Director, President 

and 

Chief Financial Officer  
of the Company and 

Secretary) 

Alvyn A. Schopp 
(Chief Administrative 
Officer and Sr. 
Regional 
Vice President) 

Kevin J. Kilstrom 
(Sr. Vice President(cid:178) 
Production) 

Michael N. Kennedy 
(Sr. Vice President(cid:178) 
Finance, and Chief  
Financial Officer of the 

Partnership) 

Year 
2018 
2017 
2016 

2018 

2017 
2016 

2018 
2017 

2016 

2018 
2017 
2016 

2018 
2017 
2016 

Salary ($)(1) 
858,000 
853,833 
831,667 

Bonus ($)(2) 
(cid:178) 
823,680 
  1,249,500 

Stock 
Awards 
($)(3) 
  7,520,882 
  8,240,720 
  8,185,133 

645,000 

641,833 
625,000 

(cid:178) 

  3,076,725 

516,000 
782,500 

  5,493,827 
  5,456,802 

442,800 
429,833 

(cid:178) 
367,200 

  1,538,352 
  2,032,733 

418,333 

445,188 

  12,805,262 

442,800 
429,833 
418,333 

384,375 
373,167 
363,333 

(cid:178) 
367,200 
445,188 

(cid:178) 
300,000 
364,000 

  1,538,352 
  2,032,733 
  6,739,263 

  1,538,352 
  2,032,733 
  2,021,264 

Option 
Awards ($) 

(cid:178)   
(cid:178)   
(cid:178)  (6)  

(cid:178)   

(cid:178)   
(cid:178)  (6)  

(cid:178)   
(cid:178)   

(cid:178)   

(cid:178)   
(cid:178)   
(cid:178)   

(cid:178)   
(cid:178)  (6)  
(cid:178)   

Non-Equity 
Incentive Plan 
Compensation 
($)(4) 

753,140 
(cid:178) 
(cid:178) 

All Other 
Compensation 
($)(5) 

11,000 
10,800 
10,600 

Total ($) 

9,143,022 
9,929,033 
  10,276,900 

471,810 

11,000 

4,204,534 

(cid:178) 
(cid:178) 

10,800 
10,600 

6,662,460 
6,874,902 

276,661 
(cid:178) 

11,000 
10,800 

2,268,813 
2,840,566 

(cid:178) 

10,600 

  13,679,383 

276,661 
(cid:178) 
(cid:178) 

240,157 
(cid:178) 
(cid:178) 

11,000 
10,800 
10,600 

11,000 
10,800 
9,680 

2,268,813 
2,840,566 
7,613,384 

2,173,884 
2,716,700 
2,758,277 

(1)  (cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:71)(cid:76)(cid:73)(cid:73)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:178)Elements of 
Direct Compensation(cid:178)(cid:37)(cid:68)(cid:86)(cid:72)(cid:3)(cid:54)(cid:68)(cid:79)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)fact that adjustments to the base salaries of our Named Executive Officers for 
the 2016, 2017 and 2018 fiscal years took effect on March 1, 2016, March 1, 2017 and March 1, 2018, respectively. 

(2)  Represents the aggregate amount of the annual discretionary cash bonuses paid to each Named Executive Officer for 2016 and 
2017.  The new annual incentive program implemented in 2018 is intended to incentivize our Named Executive Officers to 
achieve specific performance goals throughout the year, and, as a result, such amounts earned under the new annual incentive 
(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:49)(cid:82)(cid:81)-(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:15)(cid:3)(cid:85)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:37)(cid:82)(cid:81)(cid:88)(cid:86)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:17) 
(3)  The amounts in this column represent the grant date fair value of (i) restricted stock unit awards and performance share unit 
awards granted to the Named Executive Officers pursuant to the AR LTIP and (ii) phantom units (which include Midstream 
(cid:39)(cid:40)(cid:53)(cid:86)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)-Based Awards Table(cid:178)
(cid:51)(cid:75)(cid:68)(cid:81)(cid:87)(cid:82)(cid:80)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:3)(cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:12)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)
(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:11)(cid:179)(cid:41)(cid:36)(cid:54)(cid:37)(cid:180)(cid:12)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:38)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:36)(cid:54)(cid:38)(cid:180)(cid:12)(cid:3)(cid:55)(cid:82)(cid:83)(cid:76)(cid:70)(cid:3)(cid:26)(cid:20)(cid:27)(cid:17)(cid:3)(cid:44)(cid:81)(cid:3)
2018, the only awards that were granted were performance share unit awards under the AR LTIP.  See Note 9 to our consolidated 
financial statements for additional detail regarding assumptions underlying the value of these equity awards. 

(4)  The amounts in this column represent the cash bonus paid to each Named Executive Officer under our 2018 annual incentive 

program. 

(5)  (cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:23)(cid:19)(cid:20)(cid:11)(cid:78)(cid:12)(cid:3)(cid:80)(cid:68)(cid:87)(cid:70)(cid:75)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)

(6) 

participating Named Executive Officer.  For fiscal 2016 and 2017, amounts in this column may include additional matching 
contributions with respect to the applicable fiscal year after the filings of the Annual Report relating to such fiscal year.  
In December 2016, Messrs. Rady and Warren were each issued Series B Units in IDR LLC, one-third of which were unvested as 
of December 31, 2018.  Mr. Kennedy was granted Series B Units in IDR LLC on January 10, 2017, one-third of which were 
unvested as of December 31, 2018.  As discussed below und(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:178)
(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:180)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:3)(cid:179)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)oses. 

92 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
Accordingly, if IDR LLC had been liquidated as of the date these Series B Units were granted, Messrs. Rady, Warren and 
(cid:46)(cid:72)(cid:81)(cid:81)(cid:72)(cid:71)(cid:92)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)
Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table(cid:178)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)
information regarding the Series B Units in IDR LLC. 

Grants of Plan-Based Awards for Fiscal Year 2018 

Name 

  Grant Date   

Paul M. Rady 
TSR PSUs (4)  
ROCE PSUs (5)  
Glen C. Warren, Jr. 
TSR PSUs (4)  
ROCE PSUs (5)  
Alvyn A. Schopp 
TSR PSUs (4)  
ROCE PSUs (5)  
Kevin J. Kilstrom 
TSR PSUs (4)  
ROCE PSUs (5)  
Michael N. Kennedy 
TSR PSUs (4)  
ROCE PSUs (5)  

  4/15/18    
  4/15/18    

  4/15/18    
  4/15/18    

  4/15/18    
  4/15/18    

  4/15/18    
  4/15/18    

  4/15/18    
  4/15/18    

Estimated Future Payouts Under Non- 
Equity Incentive Plan Awards (1) 
Target  
($) 
 1,029,600    

Maximum 
($) 
 2,059,200    

Threshold 
($) 
  514,800    

  322,500    

  645,000    

 1,290,000    

  189,108    

  378,216    

  756,432    

  189,108    

  378,216    

  756,432    

  164,156    

  328,313    

  656,625    

Estimated Future Payouts Under 
Incentive Plan Awards (2) 

Grant Date 
Fair Value of 
Stock and 
Option  

Threshold 
(#) 

  Target (#) 

Maximum 
(#) 

  Awards ($)(3)   

    111,487    
    47,780    

  222,973    
  95,560    

  445,946    
  191,120    

 5,540,879     
 1,980,003     

    45,608    
    19,547    

  91,216    
  39,093    

  182,432    
  78,186    

 2,266,718     
  810,007     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

(1)  These columns reflect the threshold, target and maximum amount that may be earned under our 2018 annual incentive plan. 
(2)  These columns reflect the threshold, target and maximum number of shares of the Company that may be earned under 

performance share unit awards granted on April 15, 2018.  

(3)  The amounts in this column represent the grant date fair value of performance share unit awards granted to the Named Executive 
Officers pursuant to the AR LTIP, as computed in accordance with FASB ASC Topic 718.  See Note 9 to our consolidated 
financial statements for additional detail regarding assumptions underlying the value of these equity awards. 

(4)  These TSR PSUs granted on April 15, 2018 under the AR LTIP are earned (or not) based upon our three-year absolute TSR 

performance, as adjusted for relative TSR performance against a peer group of comparable E&P companies.  Pursuant to the TSR 
PSUs, our Named Executive Officers are eligible to receive threshold, target and maximum payouts of 50%, 100% and 150%, 
respectively, of the target amount of TSR PSUs awarded.  In order to achieve threshold, target and maximum payouts under the 
TSR PSUs, t(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3)(cid:20)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)
150% of the target price, respectively.  Additionally, the payout under the TSR PSUs may be further adjusted depending on the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:55)SR performance, where a relative TSR ranking of less than the 25th percentile results in a negative 
adjustment of -50% and a relative TSR ranking of more than the 75th percentile results in a positive adjustment of 50%, which 
may result in payout at 0% of target, even if the threshold for actual TSR is achieved.  If actual TSR is achieved at maximum 
(cid:11)(cid:20)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:21)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)n. 
(5)  These ROCE PSUs granted on April (cid:20)(cid:24)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:12)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)
employed over the three-year performance period beginning January 1, 2018 and ending December 31, 2020.  Pursuant to the 
ROCE PSUs, our Named Executive Officers are eligible to receive threshold, target and maximum payouts of 50%, 100% and 
200%, respectively, of the target amount of ROCE PSUs.  In order to achieve threshold, target and maximum payouts under the 
ROCE PSUs, the ROCE must be at or above 85% of the target ROCE, 100% of the target ROCE, or 115% of the target ROCE, 
respectively.  

93 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
  
 
   
 
 
   
 
 
 
 
   
   
   
  
 
 
 
 
 
   
 
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table 

The following is a discussion of material factors necessary to an understanding of the information disclosed in the Summary 

Compensation Table and the Grants of Plan-Based Awards for Fiscal Year 2018 table. 

Performance Share Units 

The Compensation Committee granted performance share unit awards under the AR LTIP to each of our Named Executive 

Officers in April 2018.  The performance share unit awards will be earned based partially upon our three-year absolute TSR, as 
adjusted by the relative TSR of the Peer Group, and partially upon our three-year ROCE.  In each case, the applicable Named 
Executive Officer must remain continuously employed by us from the grant date through the applicable vesting date. All of the 
(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)death 
or disability.  The potential acceleration and forfeiture events related to these performance share units are described in greater detail 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

94 

 
 
 
Outstanding Equity Awards at 2018 Fiscal Year-End 

The following table provides information concerning equity awards that have not vested for our Named Executive Officers as 

of December 31, 2018.  

Option Awards 

Stock Awards 

Number of 
Securities 
Underlying 
Unexercised 
Options 
Unexercisable 
(#)(1) 

Number of 
Securities 
Underlying 
Unexercised 
Options 
Exercisable 
(#) 

Option 
Exercise 
Price ($) 

Option 
Expiration 
Date 

25,000    

75,000    

50.00 

  4/15/25 

16,000    

32,000    

  N/A 

  N/A 

16,667    

50,000    

50.00 

  4/15/25 

10,667    

21,333    

  N/A 

  N/A 

6,250    

18,750    

50.00 

  4/15/25 

6,250    

18,750    

50.00 

  4/15/25 

6,250    
(cid:178) 

1,333    

18,750    
60,000    

50.00 
54.15 

  4/15/25 
  10/16/23 

2,667    

  N/A 

  N/A 

Name 
Paul M. Rady 
Restricted Stock Units (4) 
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Series B Units in IDR 
LLC (8)  
Glen C. Warren, Jr. 
Restricted Stock Units (4) 
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Series B Units in IDR 
LLC (8)  
Alvyn A. Schopp 
Restricted Stock Units (4) 
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Kevin J. Kilstrom 
Restricted Stock Units (4) 
Performance Share 
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Michael N. Kennedy 
Restricted Stock Units (4) 
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Stock Options  
Series B Units in IDR 
LLC (8)  

Equity 
Incentive 
Plan Awards: 
Number of 
Unearned 
Shares, Units 
or Other 
Rights That 
Have Not 
Vested (#) 

Equity 
Incentive 
Plan Awards: 
Market or 
Payout Value 
of Unearned 
Shares, Units 
or Other 
Rights That 
Have Not 
Vested ($)(3)   

  447,739    

 4,204,269     

Number of 
Units That 
Have Not 
Vested (#) 

Market 
Value of 
Units That 
Have Not 
Vested ($)(2) 

  136,785    

 1,284,411    

87,346    

 1,868,320    

91,191    

  856,279    

58,230    

 1,245,545    

  220,549    

 2,070,955     

  100,714    

  945,706    

22,222    

  208,665    

  231,216    

 2,171,118     

21,075    

  450,784    

63,214    

  593,581    

9,722    

91,290    

  156,216    

 1,466,868     

21,075    

  450,784    

34,048    

  319,706    

21,075    

  450,784    

97,882    

  919,112     

(1)  (cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:56)(cid:81)(cid:72)(cid:91)(cid:72)(cid:85)(cid:70)(cid:76)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:180)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)

have not yet vested. 

95 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
(2)  The amounts reflected in this column represent the market value of (i) common stock underlying the unvested restricted stock unit 
awards and earned but unvested performance share unit awards granted under the AR LTIP held by the Named Executive Officers 
(where the applicable performance hurdle has been achieved but a period of continued service remains), computed based on the 
closing price of our common stock on December 31, 2018, which was $9.39 per share and (ii) common units of the Partnership 
underlying the phantom unit awards granted under the Midstream LTIP to the Named Executive Officers, computed based on the 
(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:7)(cid:21)(cid:20)(cid:17)(cid:22)(cid:28)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:17)(cid:3) 

(3)  The amounts reflected in this column represent the market value common stock underlying the performance share units granted 
under the AR LTIP reported in the preceding column, computed based on the closing price of our common stock on December 
31, 2018, which was $9.39 per share. 

(4)  Except as otherwise provided in the applicable award agreement, (i) the restricted stock unit awards granted under the AR LTIP in 
2016 will vest on April 15 of each of 2019 and 2020 and (ii) the restricted stock unit awards granted under the AR LTIP in 2015 
will vest on April 15, 2019, in each case, so long as the applicable Named Executive Officer remains continuously employed by 
us from the grant date through the applicable vesting date. 

(5)  This row includes performance share units granted under the AR LTIP, outstanding as set forth below. The amounts included in 
the parentheticals reflect (i) the threshold number of performance share units for the performance share units that vest based on 
our relative TSR, the TSR PSU, as performance as of December 31, 2018 was below the threshold for payout of these awards; (ii) 
the maximum number of the ROCE PSUs, as performance as of December 31, 2018 was at maximum, and (iii) the number of 
unearned performance share units granted in 2016 as special retention awards for which the applicable stock price hurdle has not 
been achieved.  The actual number of shares earned pursuant to performance share units may vary substantially from the amounts 
set forth below based on actual performance through the end of the applicable performance period.  

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

In 2016 as a special retention award to Mr. Schopp (133,334) and Mr. Kilstrom (58,334), which vest based upon 
achievement of certain stock price hurdles.  An additional number of performance share units granted to Mr. Schopp 
(22,222) and Mr. Kilstrom (9,722) have previously become earned upon achievement of the applicable stock price hurdle 
and will vest in February 2019, so long as the applicable Named Executive Officer remains continuously employed by us 
from the grant date through such date.    
In 2016 to Mr. Rady (55,887), Mr. Warren (37,258), Mr. Schopp (13,972), Mr. Kilstrom (13,972) and Mr. Kennedy 
(cid:11)(cid:20)(cid:22)(cid:15)(cid:28)(cid:26)(cid:21)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year TSR achievement for the 
performance period ending April 15, 2019, so long as the applicable Named Executive Officer remains continuously 
employed by us from the grant date through such date. 
In 2017 to Mr. Rady (89,245), Mr. Warren (59,497), Mr. Schopp (22,014), Mr. Kilstrom (22,014) and Mr. Kennedy 
(22,014), that will v(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year TSR achievement for the 
performance period ending April 15, 2020, so long as the applicable Named Executive Officer remains continuously 
employed by us from the grant date through such date.  
In 2018 to Mr. Rady (111,487), Mr. Warren (45,608), Mr. Schopp (22,804), Mr. Kilstrom (22,804) and Mr. Kennedy 
(cid:11)(cid:21)(cid:21)(cid:15)(cid:27)(cid:19)(cid:23)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year TSR achievement for the 
performance period ending April 15, 2021, subject to adjustment based on our relative three-year TSR achievement for 
such performance period and so long as the applicable Named Executive Officer remains continuously employed by us 
from the grant date through such date. 
In 2018 to Mr. Rady (191,120), Mr. Warren (78,186), Mr. Schopp (39,092), Mr. Kilstrom (39,092) and Mr. Kennedy 
(cid:11)(cid:22)(cid:28)(cid:15)(cid:19)(cid:28)(cid:21)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:83)(cid:85)(cid:76)(cid:79)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year ROCE achievement for 
the performance period ending December 31, 2020, so long as the applicable Named Executive Officer remains 
continuously employed by us (cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

(6)  Except as otherwise provided in the applicable award agreement, the phantom units granted in 2016 under the Midstream LTIP 
will vest on April 15 of each of 2019 and 2020, so long as the applicable Named Executive Officer remains continuously 
employed by us from the grant date through the applicable vesting date. 

(7)  The unvested stock option awards reflected in this row were granted under the AR LTIP and will become vested and exercisable 
on April 15, 2019, so long as the applicable Named Executive Officer remains continuously employed by us or one of our 
affiliates through such date. 

(8)  The Series B Units in IDR LLC reflected in this row are intended to constitute profits interests for federal tax purposes, rather 
than traditional option awards, and therefore, there is no exercise price or expiration date associated with them.  The unvested 
Series B Units in IDR LLC reflected in this row will become vested and exercisable on December 31, 2019, so long as the 
applicable Named Executive Officer remains continuously employed by us or one of our affiliates through each such date.  

96 

 
Option Exercises and Stock Vested in Fiscal Year 2018 

The following table provides information concerning equity awards that vested or were exercised by our Named Executive 

Officers during the 2018 fiscal year. 

Name 
Paul M. Rady 
Restricted Stock Units 
Phantom Units 
Glen C. Warren, Jr. 
Restricted Stock Units 
Phantom Units 
Alvyn A. Schopp 
Restricted Stock Units 
Phantom Units 
Kevin J. Kilstrom 
Restricted Stock Units 
Phantom Units 
Michael N. Kennedy 
Restricted Stock Units 
Phantom Units 

Option Awards(1) 

Stock Awards 

Number of 
Shares 
Acquired on 
Exercise (#) 

Value Realized 
on Exercise ($) 

Number of 
Shares 
Acquired on 
Vesting (#)(2) 

Value Realized 
on Vesting ($)(3) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

79,093 
83,000 

52,729 
55,333 

139,345 
20,398 

89,345 
20,398 

70,984 
18,898 

1,638,807 
2,231,400 

1,092,545 
1,487,592 

2,531,602 
549,022 

1,680,602 
549,022 

1,152,468 
506,722 

(1)  There were no stock option exercises during the 2018 fiscal year. 
(2)  The equity awards that vested during the 2018 fiscal year disclosed in this column consist of (i) restricted stock units granted 

under the AR LTIP, (ii) the vested portion of the performance share unit awards granted under the AR LTIP as special retention 
awards in February 2016 to Messrs. Schopp and Kilstrom, and (iii) phantom units granted under the Midstream LTIP. 
(3)  The amounts reflected in this column represent the aggregate market value realized by each Named Executive Officer upon 

vesting of (i) the restricted stock unit awards held by such Named Executive Officer, computed based on the closing price of our 
common stock on the applicable vesting date, and (ii) the phantom unit awards held by such Named Executive Officer, computed 
(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86) common units on the applicable vesting date. 

Pension Benefits 

We do not provide pension benefits to our employees. 

Nonqualified Deferred Compensation 

We do not provide nonqualified deferred compensation benefits to our employees. 

Payments Upon Termination or Change in Control 

Restricted Stock Units, Performance Share Units, Phantom Units and Stock Options 

Any unvested restricted stock units, unvested phantom units or unvested stock options subject to time-based vesting criteria 

granted to our Named Executive Officers under the AR LTIP or the Midstream LTIP, as applicable, will become immediately fully 
(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:11)(cid:68)(cid:81)(cid:71)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:68)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:72)(cid:91)(cid:72)(cid:85)(cid:70)(cid:76)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:12)(cid:3)(cid:76)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:3)
(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:68)(cid:87)(cid:75)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Midstream LTIP, as applicable).  For performance share unit awards, any continued employment conditions will be deemed satisfied 
on the date of the applic(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:68)(cid:87)(cid:75)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)
(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)ance 
share unit awards will be settled based on the actual level of performance achieved as of such date.  

(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:68)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:76)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)s 
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be 
expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12 months. 

97 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29) 

(cid:120)  A person or group of persons acquires beneficial ownership of 50% or more of either (a) the outstanding shares of our 

common stock or (b) the combined voting power of our voting securities entitled to vote in the election of directors, in each 
case with the exception of (i) any acquisition directly from us, (ii) any acquisition by us or any of our affiliates, or (iii) any 
acquisition by any employee benefit plan sponsored or maintained by us; 

(cid:120)  The incumbent members of the Board cease for any reason to constitute at least a majority of the Board; 

(cid:120)  The consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of our 

assets, or an acqui(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:92)(cid:3)(cid:11)(cid:68)(cid:3)(cid:179)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:69)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:70)(cid:68)(cid:86)(cid:72)(cid:15)(cid:3)(cid:88)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:15)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)
Combination, (A) our outstanding common stock immediately prior to such Business Combination represents more than 50% 
of the outstanding common equity interests and the outstanding voting securities entitled to vote in the election of directors of 
the surviving entity, (B) no person or group of persons beneficially owns 20% or more of the common equity interests of the 
surviving entity or the combined voting power of the voting securities entitled to vote generally in the election of directors of 
such surviving entity, and (C) at least a majority of the members of the board of directors of the surviving entity were 
members of the incumbent board at the time of the execution of the initial agreement or corporate action providing for such 
Business Combination; or 

(cid:120)  Approval by our shareholders of a complete liquidation or dissolution of the Company. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29) 

(cid:120)  A person or group of persons, other than certain affiliates of the Partnership, becomes the beneficial owner, by way of 

merger, acquisition, consolidation, recapitalization, reorganization, or otherwise, of 50% or more of the voting power of the 
equity interests in the general partner of the Partnership; 

(cid:120)  The sale or disposition by either the Partnership or the general partner of the Partnership of all or substantially all of its 

assets; 

(cid:120)  The general (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:30) 

(cid:120)  A transaction resulting in a person or group of persons other than the general partner of the Partnership, the Partnership, the 

Company or one of their respective affiliates becoming the general partner of the Partnership; or 

(cid:120)  (cid:36)(cid:3)(cid:179)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:17) 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:17) 

Series B Units in IDR LLC 

The Series B Units in IDR LLC held by Messrs. Rady, Warren and Kennedy will vest upon the consummation of a change of 

control transaction (as defined in the IDR LLC Agreement) or upon an involuntary termination without cause or due to death or 
disability. As discussed above, the Series B Units in IDR LLC issued to Messrs. Rady and Warren on December 31, 2016 and to 
Mr. (cid:46)(cid:72)(cid:81)(cid:81)(cid:72)(cid:71)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:45)(cid:68)(cid:81)(cid:88)(cid:68)(cid:85)(cid:92)(cid:3)(cid:20)(cid:19)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:3)(cid:179)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:82)ptions. 

As used in the IDR LLC Agreement and the award agreements pursuant to which the Series B Units in IDR LLC were 

(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29) 

(cid:120)  Any consolidation, conversion, merger or other business combination involving IDR Holdings or AMGP, in which a majority 

(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:36)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:15)(cid:3)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:87)her business organization, or other 
property; 

(cid:120)  A sale or other disposition of all or a material portion of the assets of IDR LLC; 

98 

(cid:120)  A sale or other disposition of all or substantially all of the assets of AMGP followed by a liquidation of AMGP or a 

distribution to the partners of AMGP of all or substantially all of the net proceeds of such disposition after payment of 
liabilities and other obligations of AMGP; 

(cid:120)  The sale by all the members of IDR LLC of all or substantially all of the outstanding IDR LLC membership interests in a 

single transaction or series of related transactions; or 

(cid:120)  The sale of all of the outstanding AMGP common shares in a single transaction or series of related transactions. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72) IDR LLC agreement. 

As discussed above, each of Messrs. Rady, Warren and Kennedy have the right, upon delivery of written notice to IDR LLC, 
to require IDR LLC to redeem all or a portion of their vested Series B Units for a number of newly issued AMGP common shares, as 
(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:88)(cid:79)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)-
Based Awards Table(cid:178) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:17) 

The above mechanisms are subject to customary conversion rate adjustments for equity splits, equity dividends and 

reclassifications. 

Potential Payments Upon Termination or Change in Control Table for Fiscal 2018 

If the employment of any of our Named Executive Officers would have terminated due to any Named Executive (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)

death or disability, the unvested portion of his restricted stock units, phantom units and stock options, as applicable, would have 
become vested.  The restricted stock units (and, if exercised, the stock options) granted under the AR LTIP represent a direct interest 
in shares of our common stock, which had a closing price on December 31, 2018, of $9.39 per share.  The phantom units granted 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:75)(cid:68)(cid:71)(cid:3)(cid:68)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)price on December 31, 
2018, of $21.39 per unit. 

The amounts that each of our Named Executive Officers would receive in connection with the accelerated vesting of their 
equity awards (other than stock options) upon a termination due to their death or disability (assuming such termination occurred on 
December 31, 2018) are reflected in the last column of the Outstanding Equity Awards at 2018 Fiscal Year-End table above. Because 
the exercise price of stock options held by our Named Executive Officers exceeded (cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
stock on December 31, 2018, no value would have been received by our Named Executive Officers with respect to their stock options 
in connection with the accelerated vesting of these awards. 

Quantification of Benefits 

The following table summarizes the compensation and other benefits that would have become payable to each Named 

Executive Officer assuming a change in control of the Company and the Partnership occurred on December 31, 2018. 

Name 

Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

Potential Payments upon a Change in Control of the Company as of December 31, 2018 

Restricted 
Stock Units 
($) 
  1,284,411 
856,279 
945,706 
593,581 
319,706 

Performance 
Share Unit 
Awards ($)(1) 
  1,794,617 
734,167 
575,738 
458,363 
367,074 

Phantom 
Units ($)  
1,868,320 
  1,245,545 
450,784 
450,784 
450,784 

Stock 
Options 
($)(2) 

Series B Units 
in IDR LLC 
($)(3) 

(cid:178) 
(cid:178) 
(cid:178) 
(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 
N/A 
N/A 
(cid:178) 

Total ($) 

4,947,348 
2,835,991 
1,972,228 
1,502,728 
1,137,564 

(1)  Acceleration of the performance share unit awards granted under the AR LTIP in 2016 (other than the special performance share 
unit award in February 2016 to Messrs. Schopp and Kilstrom) and 2017, the TSR PSUs and ROCE PSUs is based upon actual 
performance as of the date of the change in control. As of December 31, 2018, (i) all such awards (other than the ROCE PSUs) 
were trending below threshold, so no value would have been received by our Named Executive Officers with respect to such 
awards in connection with the accelerated vesting of such awards (other than the ROCE PSUs) and (ii) the ROCE PSUs were 
(cid:87)(cid:85)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:87)(cid:3)(cid:80)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:15)(cid:3)(cid:86)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:86)(cid:72)(cid:87)(cid:87)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:87)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:182)(cid:86)(cid:3)(cid:80)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:17)(cid:3)(cid:58)(cid:76)(cid:87)(cid:75)(cid:3)
respect to the special performance share unit award granted in February 2016 to Messrs. Schopp and Kilstrom, the amount 
reflected here represents the lapse of the employment condition for the portion of such awards for which the applicable stock 
price hurdle has previously been achieved.  

99 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2)  Because the exercise price of stock options held by our Named Executive Officers exceeded the fair market value of the 

(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:81)(cid:82)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
respect to their stock options in connection with the accelerated vesting of these awards. 

(3)  The Series B Units in IDR LLC held by each of Messrs. Rady, Warren and Kennedy will vest upon the consummation of a 

change of control transaction or upon an involuntary termination of the (cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)
to death or disability. The Series B Units in IDR LLC are not traditional options. The redemption right described above only 
applies upon a change of control transaction applicable to IDR LLC or the general partner of the Partnership (not a change of 
control of the Company or the Partnership), and, therefore, the redemption value is not disclosed in this table. 

Compensation of Directors 

General 

Our non-employee directors are entitled to receive compensation consisting of retainers, fees and equity awards as described 

below. The Compensation Committee reviews and approves non-employee director compensation on a periodic basis. 

Our employee directors, Messrs. Rady and Warren, do not receive additional compensation for their services as directors. All 

compensation that Messrs. Rady and Warren received from the Company as employees is disclosed in the Summary Compensation 
Table above. 

Messrs. Kagan and Keenan have agreed or are otherwise obligated to transfer all or a portion of the compensation they 

receive for their service as directors to the sponsor with which they are affiliated. 

Annual Retainers  

Each non-employee director received the following compensation for the 2018 fiscal year: 

an annual retainer of $70,000; 

an additional retainer of $7,500 for each member of the audit committee, plus an additional $12,500 for the chairperson; and 

an additional retainer of $10,000 for each member of the conflicts committee, plus an additional $5,000 for the chairperson. 

(cid:120) 

(cid:120) 

(cid:120) 

All retainers are paid in cash on a quarterly basis in arrears, but directors have the option to elect, on an annual basis, to 

receive all or a portion of their retainers in the form of common units.  Directors do not receive any meeting fees, but each director is 
reimbursed for (1) travel and miscellaneous expenses to attend meetings and activities of the Board or its committees, and (2) travel 
(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:76)(cid:86)(cid:70)(cid:72)(cid:79)(cid:79)(cid:68)(cid:81)(cid:72)(cid:82)(cid:88)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:72)(cid:71)(cid:88)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:85)(cid:76)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)programs for directors. 

Equity-Based Compensation 

In addition to cash compensation, our non-employee directors receive quarterly grants of fully vested common units with an 

aggregate value equal to $100,000 per year, subject to the terms and conditions of the Midstream LTIP and the award agreements 
pursuant to which such awards are granted.  

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:81)(cid:82)(cid:81)-employee directors other than Messrs. 

Kagan and Keenan is required to own a minimum number of common units in the Partnership within five years of the adoption of the 
guidelines or within five years of being appointed to the Board, whichever is later.  Specifically, each of such non-employee directors 
is required to own common units in the Partnership having an aggregate fair market value equal to at least five times the amount of the 
annual cash retainer we pay to our non-(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:182)(cid:3)
interests more closely with t(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17) 

100 

 
 
Total Non-Employee Director Compensation 

The following table provides information concerning the compensation of our non-employee directors for the fiscal year 

ended December 31, 2018. 

Name 
Peter R. Kagan 
W. Howard Keenan, Jr. 
Richard W. Connor (3) 
David A. Peters (4) 
John C. Mollenkopf (4) 

Fees Earned or 
Paid in Cash 
($)(1) 

70,000 
70,000 
90,000 
117,500 
107,500 

Unit Awards 
($)(2) 

Total ($) 

100,000 
100,000 
100,000 
100,000 
100,000 

170,000 
170,000 
190,000 
217,500 
207,500 

(1) 

Includes annual cash retainer, committee fees and committee chair fees for each non-employee director during fiscal 2018, as 
more fully explained above. 

(2)  Amounts in this column reflect the aggregate grant date fair value of fully vested common units granted under the Midstream 
LTIP in fiscal year 2018, computed in accordance with FASB ASC Topic 718.  See Note 9 to our consolidated financial 
statements on Form 10-K for the year ended December 31, 2018, for additional detail regarding assumptions underlying the value 
of these equity awards. The grant date fair value for common unit awards is based on the closing price of our common units on 
the grant date. 

(3)  Mr. Connor resigned as a director on January 24, 2019.  
(4)  During 2018, Messrs. Peters and Mollenkopf received additional fees of $25,000 and $20,000, respectively, in connection with 

their service on the special committee created for purposes of evaluating and approving the Transactions. 

Equity Compensation Plan Information 

The following table sets forth information about securities that may be issued under the existing equity compensation plans of 

the Company, the Partnership, and AMGP as of December 31, 2018. 

Number of securities to be 
issued upon exercise of 
outstanding options, 
warrants and rights 
(a) 

Weighted (cid:177) average 
exercise price of 
outstanding options, 
warrants and rights  
(b) 

Number of securities 
remaining available for 
future issuance under 
equity compensation 
plans (excluding 
securities reflected in 
column (a))  
(c) 

4,059,401 

583,000 

$50.55(4) 

N/A(5) 

8,351,638 

7,932,261 

N/A 

N/A(6) 

881,626 

(cid:178) 
4,642,401 

(cid:178) 

(cid:178) 
17,165,525 

Plan Category 
Equity compensation plans 
approved by security 
holders 

Antero Resources Corporation 

Long-Term Incentive Plan (1) 
Antero Midstream Partners LP 
Long-Term Incentive Plan (2) 
Antero Midstream Partners GP 

LP Long-Term Incentive Plan 
(3) 

Equity compensation plans not 

approved by security 
holders 
Total 

(1)  The Antero Resources Corporation Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)approved by our sole shareholder prior to our 

IPO and by our shareholders at the 2014 annual meeting of shareholders. 

(2)  The Antero Midstream Partners LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

general partner of the Partnership prior to its IPO. 

(3)  The Antero Midstream Partners GP LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)

the general partner of the Partnership prior to its IPO. 

(4)  The calculation of the weighted-average exercise price of outstanding options, warrants and rights excludes restricted stock unit 

awards granted under the AR LTIP. 

101 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(5)  Only phantom unit awards and restricted unit awards have been granted under the Midstream LTIP; there is no weighted average 

exercise price associated with these awards. 

(6)  Only common shares representing limited partner interests have been granted under the AMGP LTIP; there is no weighted 

average exercise price associated with these awards.  Awards under the AMGP LTIP have only been issued to non-employee 
(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:49)(cid:82)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
AMGP LTIP. 

CEO Pay Ratio 

Pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 402(u) of 
Regulation S-K, this section provides information regarding the relationship of the annual total compensation of all of our employees 
to the annual total compensation of our CEO, Mr. Rady.  For 2018, the median of the annual total compensation of all Company 
employees (other than our CEO), calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, was $92,772, and 
the annual total compensation of our CEO, as reported in the Summary Compensation Table, was $9,143,022.  

Based on this information, for 2018, the ratio of the annual total compensation of Mr. Rady to the median of the annual total 

compensation of all of our employees was 99 to 1.  

Methodology and Assumptions 

When identifying our median employee in 2018, we selected December 31, 2018, as the date on which to determine our 

employee population for purposes of identifying the median of the annual total compensation of all of our employees (other than the 
CEO), because it was efficient to collect payroll data and other necessary information as of that date.  As of December 31, 2018, our 
employee population consisted of 622 individuals, including all individuals employed by the Company or any of its consolidated 
subsidiaries, whether as full-time, part-time, seasonal or temporary workers.  This population does not include independent contractors 
engaged by the Company.  All of our employees are located in the United States.  

In identifying our median employee in 2018, we utilized the annual total compensation as reported in Box 1 of each 
(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:58)-2 for 2018 provided to the Internal Revenue Service.  We believe this methodology provides a reasonable basis 
(cid:73)(cid:82)(cid:85)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:3)(cid:83)(cid:82)(cid:83)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)
total annual compensation and identifying our median employee.  For the 103 employees hired during 2018, we utilized the annual 
(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:58)-2 for 2018 without annualization adjustments.  No cost-of-living 
adjustments were made in identifying our median employee, as all of our employees (including our CEO) are located in the United 
States.  This calculation methodology was consistently applied to our entire employee population, determined as of December 31, 
2018, in order to identify our median employee in 2018. 

(cid:36)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:90)(cid:72)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)

2018 in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, which resulted in annual total compensation of $92,772.  
The dif(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:69)(cid:72)(cid:87)(cid:90)(cid:72)(cid:72)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:58)-(cid:21)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)
compensation calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K was $3,181.  This amount reflects the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)s 401(k) match and non-cash imputed earnings offset by benefits deductible from gross income.  Similarly, the 2018 annual 
total compensation of our CEO was calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, as reported in 
the (cid:179)(cid:55)(cid:82)(cid:87)(cid:68)(cid:79)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:17)(cid:3)   

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Unitholder Matters 

The following table sets forth the beneficial ownership of common units of Antero Midstream that were issued and 

outstanding as of February 13, 2019 held by: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

our general partner; 

beneficial owners of 5% or more of our common units; 

each director and Named Executive Officer; and 

(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:17) 

102 

Except as otherwise noted, the person or entities listed below have sole voting and investment power with respect to all of our 
common units beneficially owned by them, except to the extent this power may be shared with a spouse.  All information with respect 
to beneficial ownership has been furnished by the respective directors, officers or beneficial owners of 5% or more of our common 
units, as the case may be.  Unless otherwise noted, the address for each beneficial owner listed below is 1615 Wynkoop Street, 
Denver, Colorado 80202.  

Name of Beneficial Owner 
Antero Resources Corporation(¹) 
Antero Midstream Partners GP LLC(²) 
Goldman Sachs Asset Management(3) 
Tortoise Capital Advisors, L.L.C.(4) 
Peter R. Kagan(5) 
W. Howard Keenan, Jr. (6) 
Paul J. Korus 
John C. Mollenkopf 
David A. Peters 
Paul M. Rady 
Glen C. Warren, Jr. 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Michael N. Kennedy 
All directors and executive officers as a group (10 persons) 

  Common Units 

Beneficially 
Owned 
98,870,335 
(cid:178) 
9,267,930 
8,460,503 
15,666
15,666
(cid:178)  
6,065 
21,666
194,152
134,996
32,856
38,856
20,256 
480,179

Percentage of 
  Common Units 
  Beneficially 

Owned 

52.8  % 
(cid:178)  % 
4.9 % 
4.5 % 
*  % 
*  % 
(cid:178)  % 
*  % 
*  % 
*  % 
*  % 
*  % 
*  % 
*  % 
*  % 

*     Less than 1%. 
(1)  (cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:69)(cid:92)(cid:79)(cid:68)(cid:90)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)r 

common units held by Antero Resources will be controlled by the board of directors of Antero Resources.  The board of directors 
of Antero Resources, which acts by majority approval, comprises Peter R. Kagan, W. Howard Keenan, Jr., Robert J. Clark, 
Benjamin A. Hardesty, James R. Levy, Joyce E. McConnell, Paul J. Korus, Paul M. Rady and Glen C. Warren, Jr.  Each of the 
(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:79)(cid:68)(cid:76)(cid:80)(cid:86)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17) 
(2)  (cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)ion of any of our 

common units or the Series A Units of IDR LLC will be controlled by its sole member, AMGP.  The board of directors of AMGP 
GP, which acts by majority approval, comprises Peter R. Kagan, W. Howard Keenan, Jr., Brooks J. Klimley, James R. Levy, 
(cid:53)(cid:82)(cid:86)(cid:72)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:82)(cid:69)(cid:72)(cid:86)(cid:82)(cid:81)(cid:15)(cid:3)(cid:51)(cid:72)(cid:87)(cid:72)(cid:85)(cid:3)(cid:36)(cid:17)(cid:3)(cid:39)(cid:72)(cid:68)(cid:15)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:79)(cid:72)(cid:81)(cid:3)(cid:38)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15)(cid:3)(cid:45)(cid:85)(cid:17)(cid:3)(cid:3)(cid:40)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)
disclaims beneficial ownership of any of our securities held by our general partner. 

(3)  Goldman Sachs Asset Management, L.P. and GS I(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:87)(cid:85)(cid:68)(cid:87)(cid:72)(cid:74)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:179)(cid:42)(cid:82)(cid:79)(cid:71)(cid:80)(cid:68)(cid:81)(cid:3)(cid:54)(cid:68)(cid:70)(cid:75)(cid:86)(cid:3)(cid:36)(cid:86)(cid:86)(cid:72)(cid:87)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:3)
have a mailing address of 200 West Street, New York, New York 10282 and share voting and dispositive power with respect to 
all of our common units reported as beneficially owned. 

(4)  To(cid:85)(cid:87)(cid:82)(cid:76)(cid:86)(cid:72)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:36)(cid:71)(cid:89)(cid:76)(cid:86)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:47)(cid:17)(cid:38)(cid:17)(cid:3)(cid:11)(cid:179)(cid:55)(cid:38)(cid:36)(cid:180)(cid:12)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:76)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:20)(cid:20)(cid:24)(cid:24)(cid:19)(cid:3)(cid:36)(cid:86)(cid:75)(cid:3)(cid:54)(cid:87)(cid:85)(cid:72)(cid:72)(cid:87)(cid:15)(cid:3)(cid:54)(cid:88)(cid:76)(cid:87)(cid:72)(cid:3)(cid:22)(cid:19)(cid:19)(cid:15)(cid:3)(cid:47)(cid:72)(cid:68)(cid:90)(cid:82)(cid:82)(cid:71)(cid:15)(cid:3)(cid:46)(cid:68)(cid:81)(cid:86)(cid:68)(cid:86)(cid:3)(cid:25)(cid:25)(cid:21)(cid:20)(cid:20)(cid:17)(cid:3)(cid:3)(cid:55)(cid:38)(cid:36)(cid:3)
acts as an investment adviser to certain investment companies registered under the Investment Company Act of 1940.  TCA, by 
virtue of investment advisory agreements with these investment companies, has all investment and voting power over securities 
owned of record by these investment companies.  However, despite their delegation of investment and voting power to TCA, 
these investment companies may be deemed to be the beneficial owners, under Rule 13d-3 of the Act, of the securities they own 
of record because they have the right to acquire investment and voting power through termination of their investment advisory 
agreement with TCA.  Thus, TCA has reported that it shares voting power and dispositive power over the securities owned of 
record by these investment companies.  TCA also acts as an investment adviser to certain managed accounts.  Under contractual 
agreements with these managed account clients, TCA, with respect to the securities held in these client accounts, has investment 
and voting power with respect to certain of these client accounts, and has investment power but no voting power with respect to 
certain other of these client accounts.  TCA has reported that it shares voting and/or investment power over the securities held by 
these client managed accounts despite a delegation of voting and/or investment power to TCA because the clients have the right 
to acquire investment and voting power through termination of their agreements with TCA.  TCA may be deemed the beneficial 
owner of the securities covered by this statement under Rule 13d-3 of the Act that are held by its clients.  
(5)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(6)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 

103 

 
 
 
 
  
 
 
 
 
 
     
    
 
 
 
 
 
 
 
The following table sets forth the number of common shares representing limited partner interests in AMGP owned by each 
of the Named Executive Officers and directors of our general partner and all directors and executive officers of our general partner as 
a group as of February 13, 2019: 

Name of Beneficial Owner 
Peter R. Kagan(1)(2) 
W. Howard Keenan, Jr.(3)(4) 
Paul J. Korus 
John C. Mollenkopf 
David A. Peters 
Paul M. Rady(5) 
Glen C. Warren, Jr.(6) 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Michael N. Kennedy 
All directors and executive officers as a group (10 persons) (7) 

Common Shares 
Beneficially 
Owned 

Percentage of    
Common 
Shares 
  Beneficially 
      Owned 

55,125,401  
9,619  
(cid:178)   
(cid:178)  
(cid:178)  
19,996,619 
14,931,079 
917,548 
1,394,146 
27,774  
37,292,597 

29.6 % 
*  
(cid:178)  
(cid:178)  
(cid:178)  
10.7 % 
8.0 % 
*  
*  
*  
20.0 % 

*     Less than 1%. 
(1)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(2) 

Includes 55,109,589 common shares held by the Warburg Pincus Entities (as defined below).  Mr. Kagan is a Partner of Warburg 
Pincus & Co., a New York general partner(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:48)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)
(cid:60)(cid:82)(cid:85)(cid:78)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:76)(cid:87)(cid:86) two affiliated partnerships, Warburg Pincus Netherlands Private 
(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:17)(cid:57)(cid:17)(cid:3)(cid:3)(cid:44)(cid:15)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:79)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:57)(cid:3)(cid:44)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)-WPVIII Investors, L.P., a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:59)(cid:3)
(cid:50)(cid:9)(cid:42)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)
(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)-WPVIII Investors GP L.P., a Delaware limited 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)-WPVIII Investors.  Warburg Pincus X, L.P., a Delaware limited 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)X GP L.P., a Delaware 
(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)
(cid:11)(cid:179)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)-WPVIII GP and WP X GP LP.  Warburg Pincus Partners, L.P., a Delaware limited 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:57)(cid:3)(cid:44)(cid:17)(cid:3)
(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)
Partners.  WP is the managing member of WP Partners GP.  WP LLC is the manager of each of the WP VIII Funds and the WP X 
O&G Funds.  Each of the WP VIII Funds, the WP X O&G Funds, WP-WPVIII GP, WP X GP, WP X GP LP, WPP GP, WP 
Partners, WP Partners GP, WP and WP LL(cid:38)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17) Kagan 
disclaims beneficial ownership of all shares of common stock attributable to the Warburg Pincus Entities except to the extent of 
his pecuniary interest therein. 

(3)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 
(4)  Mr. Keenan is a member and manager of the direct or indirect general partner of each of Yorktown Energy Partners V, L.P., 

Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P. and Yorktown Energy Partners VIII, L.P., which own 
1,875,802 common shares, 1,970,846 common shares, 4,596,064 common shares and 7,091,699 common shares, respectively.  
Mr. Keenan does not have sole or shared voting or investment power within the meaning of Rule 13d-3 under the Exchange Act 
with respect to the common shares held by such investment funds and disclaims beneficial ownership of such securities except to 
the extent of his pecuniary interest therein. 
Includes 19,180,821 common shares held by (cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:68)(cid:3)(cid:20)(cid:22)(cid:17)(cid:20)(cid:27)(cid:26)(cid:23)(cid:8)(cid:3)
limited liability company interest in Mockingbird, and two trusts under his control own the remaining 86.8126%.  Mr. Rady 
disclaims beneficial ownership of all common shares held by Mockingbird except to the extent of his pecuniary interest therein. 
(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:22)(cid:15)(cid:27)(cid:28)(cid:20)(cid:15)(cid:20)(cid:19)(cid:19)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)
and 50% owner of Canton.  Mr. Warren disclaims beneficial ownership of all common shares held by Canton except to the extent 
of his pecuniary interest therein. 

(5) 

(6) 

(7)  Excludes 55,109,589 common shares held by the Warburg Pincus Entities (as defined in footnote 2), over which Mr. Kagan may 

be deemed to have indirect beneficial ownership. 

104 

 
 
 
 
 
 
 
    
 
 
 
 
The following table sets forth the number of shares of common stock of Antero Resources owned by each of the Named 

Executive Officers and directors of our general partner and all directors and executive officers of our general partner as a group as of 
February 13, 2019: 

Name of Beneficial Owner 
Peter R. Kagan(1)(2)(3)(4) 
W. Howard Keenan, Jr.(1)(5)(6) 
Paul J. Korus 
John C. Mollenkopf 
David A. Peters 
Paul M. Rady(7)(8) 
Glen C. Warren, Jr.(9)(10)(11) 
Kevin J. Kilstrom(12) 
Alvyn A. Schopp(13) 
Michael N. Kennedy(14) 
All directors and executive officers as a group (10 persons)(15) 

Shares 
Beneficially 
Owned 

  Percentage of   
Shares 
  Beneficially 
      Owned 

33,976,002  
199,707 
1,275  
(cid:178)  
(cid:178)  
14,925,387 
10,873,341 
135,539 
1,126,159 
239,848  
27,868,197 

11.0 % 
*  
* 
(cid:178)  
(cid:178)  
4.8 % 
3.5 % 
*  
*  
*  
9.0 % 

*  Less than 1%. 
(1) 

Includes options to purchase 1,477 shares of common stock that expire ten years from the date of grant, or October 10, 2023, and 
options to purchase 1,526 shares of common stock that expire ten years from the date of grant, or October 16, 2024. 

(2)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(3) 

Includes 33,609,061 shares of common stock held by the Warburg Pincus Entities (as defined below).  Mr. Kagan is a Partner of 
(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:9)(cid:3)(cid:38)(cid:82)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:48)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)
(cid:68)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)Warburg Pincus funds are Warburg Pincus Private Equity VIII, L.P., a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:49)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:79)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)e 
Equity VIII C.V. I, a company formed under the laws of the N(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:79)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:57)(cid:3)(cid:44)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)-WPVIII Investors, L.P., a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:59)(cid:15)(cid:3)
(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:180)(cid:12)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)
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(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)WP-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)
partner of WP-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51) (cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)-
(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:42)(cid:51)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:17)(cid:3)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
managing member of WPP GP, and (ii) the general partner of WP VIII and WP VIII CV I. Warburg Pincus Partners GP LLC, a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)
WP Partners GP.  WP LLC is the manager of each of the WP VIII Funds, the WP X Funds and WP X O&G.  Each of the WP 
VIII Funds, the WP X Funds, WP X O&G, WP-WPVIII GP, WP X GP, WP X GP LP, WPP GP, WP Partners, WP Partners GP, 
WP and WP LLC are collectively referred to her(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17) Kagan disclaims beneficial ownership 
of all shares of common stock attributable to the Warburg Pincus Entities except to the extent of his pecuniary interest therein. 
Includes 7,500 shares of common stock held by (cid:55)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:41)(cid:68)(cid:80)(cid:76)(cid:79)(cid:92)(cid:3)(cid:55)(cid:85)(cid:88)(cid:86)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:55)(cid:85)(cid:88)(cid:86)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)
be deemed to have shared voting and dispositive power.  Mr. Kagan disclaims beneficial ownership of all shares held by the 
Kagan Trust except to the extent of his pecuniary interest therein. 

(5)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 
(6)  Mr. Keenan is a member and manager of the direct or indirect general partner of each of Yorktown Energy Partners V, L.P., 

Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P. and Yorktown Energy Partners VIII, L.P., which own 
235,380 shares of common stock, 215,319 shares of common stock, 3,104,317 shares of common stock and 10,425,078 shares of 
common stock, respectively.  Mr. Keenan does not have sole or shared voting or investment power within the meaning of Rule 
13d-3 under the Exchange Act with respect to the shares of common stock held by such investment funds and disclaims beneficial 
ownership of such securities except to the extent of his pecuniary interest therein. 
(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:21)(cid:15)(cid:27)(cid:21)(cid:20)(cid:15)(cid:22)(cid:28)(cid:23)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:54)(cid:68)(cid:79)(cid:76)(cid:86)(cid:69)(cid:88)(cid:85)(cid:92)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:54)(cid:68)(cid:79)(cid:76)(cid:86)(cid:69)(cid:88)(cid:85)(cid:92)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:15)(cid:23)(cid:25)(cid:20)(cid:15)(cid:26)(cid:20)(cid:21)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:68)(cid:3)(cid:28)(cid:24)(cid:8)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)interest 
in Salisbury and his spouse owns the remaining 5%.  Mr. Rady owns a 13.1874% limited liability company interest in 

(7) 

105 

(4) 

 
 
 
 
 
 
 
 
 
    
 
 
 
 
Mockingbird, and two trusts under his control own the remaining 86.8126%.  Mr. Rady disclaims beneficial ownership of all 
shares held by Salisbury and Mockingbird except to the extent of his pecuniary interest therein. 
Includes 136,786 shares of common stock that remain subject to vesting and options to purchase 75,000 shares of common stock 
that expire ten years from the date of grant, or April 15, 2025. 

(8) 

(9)  Mr. Warren indirectly owns 7 shares of common stock purchased by a family member, and these shares are included because of 
his relation to the purchaser.  Mr. Warren disclaims beneficial ownership of all shares reported except to the extent of his 
pecuniary interest therein. 

(10)  (cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:22)(cid:15)(cid:27)(cid:23)(cid:26)(cid:15)(cid:27)(cid:22)(cid:28)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:26)(cid:22)(cid:24)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:76)(cid:87)(cid:88)(cid:86)(cid:3)(cid:41)(cid:82)(cid:88)(cid:81)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:55)(cid:76)(cid:87)(cid:88)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85) of Canton and the President 
of Titus.  Mr. Warren disclaims beneficial ownership of all shares held by Canton and Titus except to the extent of his pecuniary 
interest therein. 

(11)  Includes 91,191 shares of common stock that remain subject to vesting and options to purchase 50,000 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(12)  Includes 34,049 shares of common stock that remain subject to vesting and options to purchase 18,750 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(13)  Includes 34,049 shares of common stock that remain subject to vesting and options to purchase 18,750 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(14)  Includes 34,048 shares of common stock that remain subject to vesting, options to purchase 60,000 shares of common stock that 
expire ten years from the date of grant, or October 10, 2023, and options to purchase 18,750 shares of common stock that expire 
ten years from the date of grant, or April 15, 2025. 

(15)  Excludes 33,609,061 shares of common stock held by the Warburg Pincus Entities (as defined in footnote 4), over which 

Mr. Kagan may be deemed to have indirect beneficial ownership. 

Securities Authorized for Issuance Under Equity Compensation Plan 

(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:20)(cid:17)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:177) Compensation Discussion and Analysis (cid:177) Equity 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:180)  

Item 13.  Certain Relationships and Related Transactions and Director Independence  

As of February 13, 2019, Antero Resources owned 98,870,335 common units representing an approximate 52.8% limited 

partner interest in us.  AMGP owns and controls (and appoints all the directors of) our general partner, AMP GP, which owns a 
non-economic general partner interest in us.  AMGP also controls IDR LLC, the holder of our incentive distribution rights. 

Distributions and Payments to Our General Partner and Its Affiliates 

The following table summarizes the distributions and payments to be made by us to our general partner and its affiliates in 

connection with ongoing operations and any liquidation of us. 

Operational Stage 

Distributions of cash available for distribution 

to our general partner and its affiliates 

We will generally make cash distributions 100% to our unitholders, including 
affiliates of our general partner.  In addition, if distributions exceed the minimum 
quarterly distribution and other higher target distribution levels, our general partner 
will be entitled to increasing percentages of the distributions, up to 50% of the 
distributions above the highest target distribution level. 

  Assuming we have sufficient cash available for distribution to pay the full 

minimum quarterly distribution on all of our outstanding common units for four 
quarters, our general partner and its affiliates (including Antero Resources) would 
receive an annual distribution of approximately $67.2 million on their units. 

106 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to our general partner and its 

affiliates 

Withdrawal or removal of our general partner 

Liquidation Stage 

Liquidation 

Agreements Related to the Transactions 

Simplification Agreement 

  Antero Resources provides customary management and general administrative 
services to us.  Our general partner reimburses Antero Resources at cost for its 
direct expenses incurred on behalf of us and a proportionate amount of its indirect 
expenses incurred on behalf of us, including, but not limited to, compensation 
expenses.  Our general partner does not receive a management fee or other 
compensation for its management of our partnership, but we reimburse our general 
partner and its affiliates for all direct and indirect expenses they incur and 
payments they make on our behalf, including payments made to Antero Resources 
for customary management and general administrative services.  Our partnership 
agreement does not set a limit on the amount of expenses for which our general 
partner and its affiliates may be reimbursed.  These expenses include salary, bonus, 
incentive compensation and other amounts paid to persons who perform services 
for us or on our behalf and expenses allocated to our general partner by its 
affiliates.  Our partnership agreement provides that our general partner will 
determine the expenses that are allocable to us. 

If our general partner withdraws or is removed, its non-economic general partner 
interest and its incentive distribution rights will either be sold to the new general 
partner for cash or converted into common units, in each case for an amount equal 
(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)
Agreement(cid:178)Withdrawal o(cid:85)(cid:3)(cid:53)(cid:72)(cid:80)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:42)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17)(cid:180) 

  Upon our liquidation, the partners, including our general partner, will be entitled to 

receive liquidating distributions according to their respective capital account 
balances. 

On October 9, 2018, we, AMGP and certain of our affiliates entered into the Simplification Agreement pursuant to which, 

among other things, (1) AMGP will be converted from a limited partnership to a corporation under the laws of the State of Delaware, 
to be named Antero Midstream Corporation; (2) an indirect, wholly owned subsidiary of New AM will be merged with and into the 
Partnership, with the Partnership surviving the merger as an indirect, wholly owned subsidiary of New AM; and (3) all the issued and 
outstanding Series B Units representing limited liability company interests of IDR Holdings will be exchanged for an aggregate of 
(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:20)(cid:26)(cid:17)(cid:22)(cid:24)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17)(cid:3)As a result of the Transactions, the Partnership will be a wholly 
owned subsidiary of New AM and former shareholders of AMGP, unitholders of the Partnership and holders of Series B Units will 
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17) 

If the Transactions are complete(cid:71)(cid:15)(cid:3)(cid:11)(cid:20)(cid:12)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:3)

(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:15)(cid:3)(cid:68)(cid:87)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:7)(cid:22)(cid:17)(cid:23)(cid:20)(cid:24)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:20)(cid:17)(cid:25)(cid:22)(cid:24)(cid:19)(cid:3)(cid:89)(cid:68)(cid:79)idly issued, 
fully paid, nonassessable sh(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3)
(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:20)(cid:17)(cid:25)(cid:22)(cid:24)(cid:19)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)
equal to the quotient of (A) $3.415 and (B) the average of the 20-day volume-weighted average trading price per AMGP common 
(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:71)(cid:68)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:36)(cid:48)(cid:3)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86) 
(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:82)(cid:85) (iii) $3.415 in cash plus an additional amount of cash equal to the product of (A) 1.6350 
and (B) (cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:21)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)
(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)ts held, Antero Resources will be entitled, subject to certain adjustments (as described 
(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:12)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:7)(cid:22)(cid:17)(cid:19)(cid:19)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:20)(cid:17)(cid:25)(cid:19)(cid:21)(cid:22)(cid:3)(cid:89)(cid:68)(cid:79)(cid:76)(cid:71)(cid:79)(cid:92)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:15)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:15)(cid:3)(cid:81)(cid:82)(cid:81)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)mon 
(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17) 

107 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
The aggregate cash consideration to be paid to Antero Resources and the AM Public Unitholders will be fixed at an amount 
equal to the aggregate amount of cash that would have been paid and issued if all AM Public Unitholders received $3.415 in cash per 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:7)(cid:22)(cid:17)(cid:19)(cid:19)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:24)(cid:28)(cid:27)(cid:3)
million.  If the Available Cash exceeds the cash consideration elected to be received by the AM Public Unitholders, Antero Resources 
may elect to increase the total amount of cash consideration to be received as a part of the AR Mixed Consideration up to an amount 
equal to the excess and the amount of shares it will receive will be reduced accordingly based on the AMGP VWAP.  In addition, the 
consideration to be received by each AM Public Unitholder may be prorated in the event that more cash or equity is elected to be 
received than what would otherwise have been paid if all AM Public Unitholders had received the Public Mixed Consideration and 
Antero Resources received the AR Mixed Consideration. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3)(cid:86)(cid:75)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:81)(cid:82)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
other than cash received in lieu of fractional shares, if any, in the Merger.  The amount and character of gain or loss recognized by 
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:68)(cid:85)(cid:92)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)(cid:68)(cid:85)(cid:3)(cid:86)(cid:76)(cid:87)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)s of New 
(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)basis 
(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:15)(cid:3)(cid:74)(cid:68)(cid:76)(cid:81)(cid:15)(cid:3)(cid:79)oss and deduction 
to such unitholder for the taxable year that includes the Merger), and the amount of any suspended passive losses that may be 
available to such unitholder to offset a portion of the gain recognized by such unitholder in connection with the Merger.     

Special meetings of AMGP shareholders and Antero Midstream unitholders will be held on March 8, 2019 to vote on the 
Simplification Agreement, the Merger and the other Transactions contemplated thereby, as applicable, and all AMGP shareholders 
and Antero Midstream unitholders of record as of the close of business on January 11, 2019, which is the record date for the special 
meetings, will be entitled to vote the AMGP common shares and Antero Midstream common units, respectively, owned by them on 
the record date.  AMGP and the Partnership expect to fund the cash portion of the merger consideration with borrowings under the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:87)(cid:82)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:76)(cid:81)(cid:74)s, 
increase lender commitments from $1.5 billion to $2.0 billion.  

Voting Agreements 

AMGP Voting Agreement 

On October 9, 2018, concurrently with the execution of the Simplification Agreement, we and the shareholders of AMGP 
named in Schedule I thereto (the (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)
common shares beneficially owned by them in favor of the AMGP shareholder proposals relating to the Transactions, and any other 
matters necessary for consummation of the Merger and the other transactions contemplated in the Simplification Agreement, including 
the Series B Exchange. In addition, the AMGP Voting Agreement Shareholders agreed to vote against the approval or adoption of any 
action, agreement, transaction or proposal that is intended to or would reasonably be expected to (1) result in a breach of any 
obligation of AMGP contained in the Simplification Agreement or of such shareholder contained in the AMGP Voting Agreement or 
(2) impede, interfere with, delay, postpone, discourage, frustrate the purposes of or adversely affect any of the Transactions or any 
action contemplated by the Simplification Agreement. If, without the prior consent of an AMGP Voting Agreement Shareholder, any 
provision of the Simplification Agreement described below is amended or waived, the obligations of the AMGP Voting Agreement 
Shareholders under the AMGP Voting Agreement will terminate with respect to such shareholder. In such event, such AMGP Voting 
Agreement Shareholder will be deemed to vote against all proposals at the AMGP Special Meeting (as defined in the AMGP Voting 
(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:17)(cid:3)(cid:55)(cid:75)(cid:76)(cid:86)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)applies only to amendments or waivers of the Simplification Agreement that (i) extend the 
Termination Date (as defined in the Simplification Agreement), (ii) adversely impact the merger consideration to be received by the 
AMGP Voting Agreement Shareholders or the number or value of the shares of New AM Common Stock held by the AMGP Voting 
Agreement Shareholders upon consummation of the Transactions, or (iii) otherwise have a material adverse effect on the interests of 
the AMGP Voting Agreement Shareholders in the Transactions. As of October 8, 2018, the AMGP Voting Agreement Shareholders 
collectively owned 105,571,698 AMGP Common Shares, representing approximately 57% of the AMGP common shares outstanding 
(as defined in the Simplification Agreement). 

The AMGP Voting Agreement includes certain covenants, and generally prohibits the AMGP Voting Agreement 
Shareholders from transferring their AMGP common shares. The AMGP Voting Agreement terminates upon the earliest to occur of 
(i) the closing of the Transactions, (ii) the termination of the Simplification Agreement in accordance with its terms, (iii) the written 
agreement of the parties to the AMGP Voting Agreement, and (iv) the Termination Date. 

108 

 
AR Voting Agreement 

On October 9, 2018, concurrently with the execution of the Simplification Agreement, AMGP entered into a voting 
(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)e 
(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)ed by it in favor of the Antero Midstream unitholder proposal relating to 
the Merger, and any other matters necessary for consummation of the Merger and the other transactions contemplated in the 
Simplification Agreement, including the Series B Exchange. In addition, Antero Resources agreed to vote against the approval or 
adoption of any action, agreement, transaction or proposal that is intended to or would reasonably be expected to (1) result in a breach 
of any obligation of the Partnership contained in the Simplification Agreement or of Antero Resources contained in the AR Voting 
Agreement or (2) impede, interfere with, delay, postpone, discourage, frustrate the purposes of or adversely affect any of the 
Transactions or any action contemplated by the Simplification Agreement. If, without the prior consent of the special committee of the 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:54)(cid:83)(cid:72)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)ow is 
(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:90)(cid:68)(cid:76)(cid:89)(cid:72)(cid:71)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182) obligations under the AR Voting Agreement will terminate. In such event, the AR 
Special Committee may instruct the Partnership that Antero Resources and AR Sub (as defined below) are deemed to vote against all 
proposals at the AM Special Meeting (as defined in the AR Voting Agreement), which instruction will override any different votes, 
proxies or voting instructions by or on behalf of Antero Resources or AR Sub received by the Partnership or its designees. This 
termination provision applies only to amendments or waivers that (i) extend the Termination Date (as defined in the Simplification 
Agreement), (ii) adversely impact the merger consideration to be received by Antero Resources or the number or value of the shares of 
New AM Common Stock held by Antero Resources upon consummation of the Transactions, or (iii) otherwise have a material 
adverse effect on the interests of Antero Resources in the Transactions. As of February 13, 2019, Antero Resources owned 98,870,335 
(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)esenting approximately 53% of the common units outstanding. 

The AR Voting Agreement includes certain covenants, including a covenant by Antero Resources to enter into a registration 

(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:81)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:73)(cid:72)(cid:85)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:83)(cid:76)(cid:83)(cid:182)(cid:86) common units to a wholly owned subsidiary of Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:15)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:69)(cid:82)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:85)(cid:72)(cid:80)(cid:68)(cid:76)(cid:81) 
subject to the terms of the AR Voting Agreement. The AR Voting Agreement otherwise generally prohibits Antero Resources from 
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Transactions, (ii) the termination of the Simplification Agreement in accordance with its terms, (iii) the Termination Date (as defined 
in the Simplification Agreement), and (iv) the written agreement of the parties to the AR Voting Agreement. 

(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) 

On October 9, 2018, concurrently with the execution of the Simplification Agreement, AMGP, AR Sub, certain affiliates of 
Warburg Pincus LLC and Yorktown Partners LLC (collectively, the “Sponsor Holders”) and Paul M. Rady, Glen C. Warren, Jr. and 
certain of their respective affiliates (collectively, the “Management Stockholders”) entered into a Stockholders' Agreement (the 
“Stockholders’ Agreement”), which will become effective as of the closing of the Transactions and which will govern certain rights 
and obligations of the parties following the consummation of the Transactions. 

Under the Stockholders' Agreement, and subject to additional limitations in the event of a Fundamental Change (as defined in 
the Stockholders’ Agreement), AR Sub will be entitled to designate two directors, who shall initially be Mr. Rady and Mr. Warren, for 
nomination and election to the board of directors of New AM (the “New AM Board”) for so long as, together with its affiliates, AR 
Sub owns an amount of shares equal to at least 8% of the qualifying New AM Common Stock and one director so long as it owns an 
amount of shares equal to at least 5% of the qualifying New AM Common Stock. To the extent that either Mr. Rady and/or 
Mr. Warren are not designated for election to the New AM Board by AR Sub pursuant to the Stockholders' Agreement, the 
Management Stockholders will be entitled to collectively designate two directors (or one director for so long as either Mr. Rady or 
Mr. Warren is designated by AR Sub) for election for so long as the Management Stockholders and their affiliates (other than Antero 
Resources and its subsidiaries) collectively own an amount of shares equal to at least 8% of the qualfiying New AM Common Stock 
and one director for election for so long as they collectively own an amount of shares equal to at least 5% of the qualifying New AM 
Common Stock. The Sponsor Holders will be entitled to collectively designate two directors for election to the New AM Board for so 
long as the Sponsor Holders and their affiliates (other than Antero Resources and its subsidiaries) collectively own an amount of 
shares equal to at least 8% of the qualifying New AM Common Stock and one director for election for so long as they collectively 
own an amount of shares equal to at least 5% of the qualifying New AM Common Stock. Notwithstanding the foregoing, upon the 
occurrence of a Fundamental Change, AR Sub, the Management Stockholders and the Sponsor Holders will each be entitled to 
designate one director so long as they own an amount of shares equal to at least 5% of the qualifying New AM Common Stock, except 
to the extent that AR Sub designates either Mr. Rady or Mr. Warren, in which case the Management Stockholders will not be entitled 
to designate a director. 

109 

 
 
 
Each of the parties to the Stockholders' Agreement has agreed to vote all of their shares of New AM Common Stock in favor 

(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:15)(cid:3)(cid:68)(cid:87)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:92)(cid:10)(cid:86)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81) (i) in 
favor of any other nominees nominated by the Nominating and Governance Committee of the New AM Board or (ii) in proportion to 
the votes cast by the public stockholders of New AM in favor of such nominees. In calculating the 8% and 5% ownership thresholds 
for purposes of the Stockholders' Agreement, qualifying New AM Common Stock is determined by dividing the New AM Common 
Stock ownership for each stockholder or group of stockholders as of the applicable measurement date by (i) the total number of 
outstanding shares of New AM Common Stock at the closing of the Transactions or (ii) the total number of outstanding shares on the 
(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:72)(cid:89)(cid:72)(cid:85)(cid:3)(cid:76)(cid:86)(cid:3)(cid:79)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:81)(cid:82)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:23)(cid:24)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)shares 
of New AM Common Stock outstanding as of closing of the Merger will be subject to the obligations of the Stockholders' Agreement. 

Under the Stockholders' Agreement, a majority of the New AM Board shall at all times consist of directors who are both 

(i) independent under the listing rules of (cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:60)(cid:54)(cid:40)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:36)(cid:70)(cid:87)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:88)(cid:81)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)
Agreement. Such independent and unaffiliated directors will be nominated for election to the New AM Board by the Nominating and 
Governance Committee of the New AM Board, which will itself consist solely of independent and unaffiliated directors. In addition, 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:82)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:82)(cid:81)(cid:72) director, 
(i) if Mr. Rady is an executive officer of Antero Resources, he shall serve as Chief Executive Officer at New AM and (ii) if 
Mr. Warren is an executive officer of Antero Resources, he shall serve as President at New AM, and both Mr. Rady and Mr. Warren 
shall be subject to removal from such officer positions at New AM only for cause. For so long as Mr. Rady is a member of the New 
AM Board and is an executive officer of Antero Resources and/or New AM, the parties have agreed that he shall serve as Chairman of 
the New AM Board, subject (cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:80)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)
terminate as to each stockholder upon the time at which such stockholder no longer has the right to designate an individual for 
nomination to the New AM Board pursuant to the Stockholders' Agreement. 

Agreements with Antero Resources 

We have entered into certain agreements with Antero Resources, as described in more detail below. 

Registration Rights Agreement  

Pursuant to the registration rights agreement, we (cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:11)(cid:76)(cid:12) common units 

issued (or issuable) to it pursuant to the contribution agreement and (ii) common units issued upon conversion of subordinated units 
pursuant to the terms of the partnership agreeme(cid:81)(cid:87)(cid:3)(cid:11)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:70)(cid:76)(cid:85)(cid:70)(cid:88)(cid:80)(cid:86)(cid:87)(cid:68)(cid:81)(cid:70)(cid:72)(cid:86)(cid:17) 

Demand Registration Rights 

Antero Resources has the right to require us by written notice to register the sale of a number of their Registrable Securities 

in an underwritten offering.  We are required to provide notice of the request within 10 days following the receipt of such demand 
request to all additional holders of Registrable Securities, if any, who may, in certain circumstances, participate in the registration.  
We are not obligated to effect any demand registration in which the anticipated aggregate offering price included in such offering is 
less than $50,000,000.  While we are eligible to effect a registration on Form S-3, any such demand registration may be for a shelf 
registration statement. 

Piggy-back Registration Rights 

If, at any time, we propose to register an offering of our securities (subject to certain exceptions) for our own account, then 

we must give to Antero Resources securities to allow it to include a specified number of Registrable Securities in that registration 
statement. 

Redemptive Offerings 

We may be required pursuant to the registration rights agreement to undertake a future public or private offering and use the 

proceeds (net of underwriting or placement agency discounts, fees and commissions, as applicable) to redeem an equal number of 
common units from Antero Resources. 

Conditions and Limitations; Expenses 

The registration rights are subject to certain conditions and limitations, including the right of the underwriters to limit the 
number of Registrable Securities to be included in a registration and our right to delay or withdraw a registration statement under 

110 

 
certain circumstances.  We will generally pay all registration expenses in connection with our obligations under the registration rights 
agreement, regardless of whether a registration statement is filed or becomes effective.  The obligations to register Registrable 
Securities under the registration rights agreement will terminate when no Registrable Securities remain outstanding.  Registrable 
Securities shall cease to be covered by the registration rights agreement when they have (i) been sold pursuant to an effective 
registration statement under the Securities Act, (ii) been sold in a transaction exempt from registration under the Securities Act 
(including transactions pursuant to Rule 144), (iii) ceased to be outstanding, (iv) been sold in a private transaction in which Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)to the transferee or (v) become eligible for resale pursuant to 
Rule 144(b) (or any similar rule then in effect under the Securities Act). 

Services Agreement  

Pursuant to the services agreement, Antero Resources has agreed to provide customary operational and management services 

for us in exchange for reimbursement of its direct expenses and an allocation of its indirect expenses attributable to the provision of 
such services to us.  On September 23, 2015, Antero Resources, the Partnership and Midstream Management amended and restated 
the services agreement to remove provisions relating to operational services in support of our gathering and compression business 
which is now covered by a secondment agreement and to provide that Antero Resources will perform certain administrative services 
for us and our subsidiaries, and we will reimburse Antero Resources for expenditures incurred by Antero Resources in the 
performance of those administrative services.  The initial term of the amended and restated services agreement is twenty years from 
November 10, 2014, and from year to year thereafter. 

Secondment Agreement  

In connection with the Water Acquisition, on September 23, 2015, we entered into a secondment agreement with Antero 
Resources, Midstream Management, Midstream Operating, Antero Water and Antero Treatment, whereby Antero Resources has 
agreed to provide seconded employees to perform certain operational services with respect to our gathering and compression facilities 
and the Contributed Assets, and we have agreed to reimburse Antero Resources for expenditures incurred by Antero Resources in the 
performance of those operational services.  The initial term of the secondment agreement is twenty years from November 10, 2014, 
and from year to year thereafter.  For the year ended December 31, 2018, we reimbursed Antero Resources for approximately $35.5 
million of its direct and allocated indirect expenses under the services and secondment agreement. 

Gathering and Compression Agreement  

Pursuant to our 20-year gas gathering and compression agreement with Antero Resources which was entered into on 
November 10, 2014, Antero Resources has agreed to dedicate all of its current and future acreage in West Virginia, Ohio and 
Pennsylvania to us (other than the existing third-party commitments), so long as such production is not otherwise subject to a 
pre-existing dedication for third-(cid:83)(cid:68)(cid:85)(cid:87)(cid:92)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:83)(cid:85)(cid:72)-existing dedication is also dedicated to 
us at the expiration of such pre-existing dedication.  In addition, if Antero Resources acquires any gathering facilities, it is required to 
offer such gathering facilities to us at its cost. 

Under the gathering and compression agreement, we receive a low pressure gathering fee per Mcf, a high pressure gathering 
fee per Mcf, and a compression fee per Mcf, in each case subject to CPI-based adjustments.  On February 13, 2018, we amended and 
restated the gathering and compression agreement to, among other things, make certain clarifying changes with respect to CPI and the 
associated adjustments to the fees we will receive from Antero Resources under the agreement.  For the year ended December 31, 
2018, we generated revenues of approximately $521 million under the gathering and compression agreement with Antero Resources.  

If and to the extent Antero Resources requests that we construct new high pressure lines and compressor stations requested 

by Antero Resources, the gathering and compression agreement contains minimum volume commitments that require Antero 
Resources to utilize or pay for 75% and 70%, respectively, of the capacity of such new construction.  Additional high pressure lines 
and compressor stations installed on our own initiative are not subject to such volume commitments.  These minimum volume 
commitments on new infrastructure, as well as price adjustment mechanisms, are intended to support the stability of our cash flows. 

We also have an option to gather and compress natural gas produced by Antero Resources on any acreage it acquires in the 
future outside of West Virginia, Ohio and Pennsylvania on the same terms and conditions.  In the event that we do not exercise this 
option, Antero Resources will be entitled to obtain gathering and compression services and dedicate production from limited areas to 
such third-party agreements from third parties. 

111 

 
 
 
(cid:44)(cid:81)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:68)(cid:74)(cid:72)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:15)(cid:3)(cid:71)(cid:72)(cid:75)(cid:92)(cid:71)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82) 

(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:73)(cid:76)(cid:85)(cid:80)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:73)(cid:76)(cid:85)(cid:86)(cid:87)-priority basis.  We may perform all services under the gathering and 
compression agreement or we may perform such services through third parties.  In the event that we do not perform our obligations 
under the gathering and compression agreement, Antero Resources will be entitled to certain rights and procedural remedies 
thereunder. 

(cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:88)(cid:76)(cid:79)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
wells producing dedicated natural gas, subject to certain exceptions, upon 180 days notice by Antero Resources.  In the event of late 
(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)(cid:72)(cid:80)(cid:83)(cid:82)(cid:85)(cid:68)(cid:85)(cid:76)(cid:79)(cid:92)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)n under 
the gathering and compression agreement for capital costs incurred if a well does not commence production within 30 days following 
the target completion date for the well set forth in the notice from Antero Resources, provided that our gathering system is connected 
to such well and available to commence providing gathering and compression services with respect to all dedicated production from 
such well prior to the date such well has reached its projected depth and is ready for completion. 

(cid:58)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:86)(cid:87)(cid:68)(cid:79)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:71)irection, but will not be responsible for inlet pressures 
or for pressuring natural gas to enter downstream facilities if Antero Resources has not directed us to install sufficient compression.  
Additionally, we will provide high pressure gathering pursuant to the gathering and compression agreement. 

Under the gathering and compression agreement, Antero Resources may sell, transfer, convey, assign, grant, or otherwise 
dispose of dedicated properties free of the dedication, provided that the number of net acres of dedicated properties so disposed of, 
when added to the number of net acres of dedicated properties previously disposed of free of the dedication since the effective date of 
the agreement, does not exceed the aggregate number of net acres of dedicated properties acquired by Antero Resources since such 
effective date.  Accordingly, under certain circumstances, Antero Resources may dispose of a significant number of net acres of 
dedicated properties free from dedication without our consent, and we have no control over the timing or extent of such dispositions. 

Upon completion of the initial 20-year term, the gathering and compression agreement will continue in effect from year to 

year until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either us 
or Antero Resources on or before the 180th day prior to the anniversary of such effective date. 

Water Services Agreement 

In connection with the Water Acquisition, on September 23, 2015, we entered in a 20-year Water Services Agreement with 
Antero Resources whereby we have agreed to provide certain water handling and treatment services to Antero Resources within an 
area of dedication in defined service areas in Ohio and West Virginia and Antero Resources agrees to pay monthly fees to us for all 
water handling and treatment services provided by us in accordance with the terms of the Water Services Agreement.  The initial term 
of the Water Services Agreement is twenty years from the date thereof and from year to year thereafter.  Under the agreement, Antero 
Resources will pay a fixed fee per barrel in West Virginia and Ohio and all other locations for fresh water deliveries by pipeline 
directly to the well site, subject to annual CPI adjustments.  On February 12, 2019, we amended and restated the Water Services 
Agreement to, among other things, make certain clarifying changes with respect to CPI and the associated adjustments to the fees we 
will receive from Antero Resources under the agreement. Antero Resources has committed to pay a fee on a minimum volume of fresh 
water deliveries in calendar years 2016 through 2019.  Minimum volume commitments were 90,000 barrels per day in 2016, 100,000 
barrels per day in 2017 and 120,000 barrels per day in 2018 and are 120,000 barrels per day in 2019.  Antero Resources also agreed to 
pay us a fixed fee per barrel for wastewater treatment at the Antero Clearwater Facility and a fee per barrel for wastewater collected in 
trucks owned by us, in each case subject to annual CPI-based adjustments.  In addition, we contract with third party service providers 
to provide Antero Resources other fluid handling services including flow back and produced water services and Antero Resources will 
reimburse us third party out-of-pocket costs plus 3%.  For the year ended December 31, 2018, we generated revenues of 
approximately $506 million under the Water Services Agreement with Antero Resources.  

Under the Water Services Agreement, Antero Resources may sell, transfer, convey, assign, grant, or otherwise dispose of 

dedicated properties free of the dedication, provided that the number of net acres of dedicated properties so disposed of, when added 
to the number of net acres of dedicated properties previously disposed of free of the dedication since the effective date of the 
agreement, does not exceed the aggregate number of net acres of dedicated properties acquired by Antero Resources since such 
effective date. Accordingly, under certain circumstances, Antero Resources may dispose of a significant number of net acres of 
dedicated properties free from dedication without our consent, and we have no control over the timing or extent of such dispositions. 

112 

 
Upon completion of the initial 20-year term, the fresh water distribution agreement will continue in effect from year to year 

until such time as the agreement is terminated, effective upon an anniversary of the effective date of the agreement, by either us or 
Antero Resources on or before the 180th day prior to the anniversary of such effective date. 

Processing  

Joint Venture 

On February 6, 2017, we formed the Joint Venture to develop processing and fractionation assets in Appalachia with 

MarkWest.  We and MarkWest each own a 50% interest in the Joint Venture and MarkWest operates the Joint Venture assets.  The 
Joint Venture assets consist of processing plants in West Virginia, and a one-third interest in a MarkWest fractionator in Ohio.  

Pursuant to a certain gas processing agreement between Antero Resources and MarkWest, MarkWest has agreed to process 
gas from acreage dedicated by Antero Resources for a fee.  MarkWest has entered into a separate agreement with the Joint Venture 
whereby the Joint Venture has agreed to perform gas processing services with respect to certain volumes on behalf of MarkWest in 
exchange for the gas p(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:72)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:58)-JV 
(cid:36)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:72)(cid:69)(cid:85)(cid:88)(cid:68)(cid:85)(cid:92)(cid:3)(cid:25)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)
MarkWest agreed to address c(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:87)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:76)(cid:87)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:73)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)
conditions were not met, Antero Resources agreed to make reimbursement payments for such work directly to the Joint Venture.  
During the year ended December 31, 2018, the Joint Venture derived approximately $98 million of revenues under the MW-JV 
Arrangement, and approximately $30 million of our equity in earnings of unconsolidated affiliates for the year ended December 31, 
2018 was attributable to our investment in the Joint Venture.  During the year ended December 31, 2017, the Joint Venture derived 
approximately $32 million of revenues under the MW-JV Arrangement, and approximately $10 million of our equity in earnings of 
unconsolidated affiliates for the year ended December 31, 2017 was attributable to our investment in the Joint Venture. 

Right-of-First-Offer Agreement 

Prior to the Joint Venture, we did not have any processing or NGLs fractionation infrastructure; however, we have a 

right-of-first-offer agreement with Antero Resources for gas processing services, pursuant to which Antero Resources has agreed, 
subject to certain exceptions, not to procure any gas processing or NGLs fractionation services with respect to its production (other 
than production subject to a pre-existing dedication) without first offering us the right to provide such services. 

If Antero Resources requires any gas processing or NGLs fractionation services that we are not already providing, including 

any services to be provided t(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:68)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
request for offer will, among other things, describe the production that will be dedicated under the resulting agreement and the 
capacities of the facilities it desires and, if applicable, details of the facility Antero Resources has acquired or proposes to acquire. 
Antero Resources is permitted concurrently to seek offers from third parties for the same services on the same terms and conditions, 
but we have a right to match the fees offered by any third-party.  Antero Resources will only be permitted to obtain these services 
from third parties if we either do not make an offer or do not match a competing third-party offer.  The process could result in Antero 
Resources obtaining certain of the required services from us (for example, gas processing) and certain of such services (for example, 
NGLs fractionation and related services) from a third-party.  Our right of first offer does not apply to production that is subject to a 
pre-existing dedication.  The right of first offer agreement has an initial 20-year term from the date of our IPO, and is subject to 
automatic annual renewal after the initial term. 

Pursuant to the procedures provided for in the right of first offer agreement, if our offer prevails, Antero Resources will enter 

into a gas processing agreement or other appropriate services agreement with us and, if such services are to be provided through a 
facility that Antero Resources has acquired or proposes to acquire, transfer such acquired facility to us for the price for which Antero 
Resources acquired it.  Relevant production will be dedicated under such agreement.  We will provide the relevant services for the 
offered fees, subject to price adjustments based on the consumer price index, or CPI, and Antero Resources will be obligated to deliver 
minimum daily volumes or pay fees for any deficiencies in deliveries.  We may perform all services under the gas processing or other 
services agreement or may perform such services through third parties.  In the event that we do not perform our obligations under the 
agreement, Antero Resources will be entitled to certain rights and procedural remedies thereunder. 

If pursuant to the foregoing procedures Antero Resources enters into a gas processing agreement with us, we will agree to 

construct or cause to be constructed a processing plant to process the dedicated natural gas, except to the extent rendered unnecessary 
if Antero Resources is transferring an acquired facility to us.  If Antero Resources requires additional capacity in the future at the plant 
at which we are providing the services, we will have the option to provide such additional capacity on the same terms and conditions.  

113 

 
 
 
 
 
 
In the event that we do not exercise this option, Antero Resources will be entitled to obtain proposals from third parties to process 
such production. 

Under the right of first offer agreement, Antero Resources may sell, transfer, convey, assign, grant, or otherwise dispose of 
dedicated properties free of the dedication, provided that the number of net acres of dedicated properties so disposed of, when added 
to the number of net acres of dedicated properties previously disposed of free of the dedication since the effective date of the 
agreement, does not exceed the aggregate number of net acres of dedicated properties acquired by Antero Resources since such 
effective date.  Accordingly, under certain circumstances, Antero Resources may dispose of a significant number of net acres of 
dedicated properties free from dedication without our consent, and we have no control over the timing or extent of such dispositions. 

On February 6, 2017, in connection with the formation of the Joint Venture, we and Antero Resources amended and restated 
the right of first offer agreement in order to, among other things, amend the list of conflicting dedications set forth in such agreement 
to include the gas processing and NGL fractionation arrangement between Antero Resources and MarkWest.  In connection with the 
entry into to such gas processing and NGL fractionation agreements, we released to the Joint Venture our right to provide  certain 
processing and fractionation services on 195,000 gross acres held by Antero Resources, and MarkWest has separately agreed to use 
the Joint Venture for a portion of processing and fractionation services under the agreements. On February 13, 2018, we further 
amended and restated the right of first offer agreement to make certain clarifying changes to reflect the original intent of the 
agreement. 

License  

Pursuant to a license agreement with Antero Resources, we have the right to use certain Antero Resources related names and 

trademarks in connection with our operation of the midstream business. 

Other Agreements 

From time to time, in the ordinary course of business, we participate in transactions with Antero Resources and other third 
parties in which Antero Resources may be deemed to have a direct or indirect material interest.  These transactions include, among 
other things, agreements that address the provision of midstream services and receipt of contract operating services, the purchase of 
fuel for use in our operations, the release of midstream service dedications in connection with acquisitions, dispositions or exchanges 
of acreage, and the acquisition of assets and the assumption of liabilities by us, our subsidiaries and our unconsolidated affiliates.  
(cid:58)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:85)(cid:80)(cid:182)(cid:86)-length negotiations, we believe that the terms of each of the transactions 
are, and specifically intend the terms to be, generally no less favorable to either party than those that could have been negotiated with 
unaffiliated parties with respect to similar transactions.  During the year ended December 31, 2018, we incurred approximately $3 
million of costs in connection with such transactions. 

Employment 

Each of (i) Timothy Rady, the son of Paul M. Rady, the Chairman and Chief Executive Officer of our general partner, (ii) 

Cole Kilstrom, the son of Kevin J. Kilstrom, Senior Vice President(cid:178)Production of our general partner, and (iii) Alan Peters, the son 
of David A. Peters, a member of the board of directors of our general partner, is a non-executive employee of Antero Resources and 
provides services to us pursuant to our agreements with Antero Resources.  Total compensation paid to Timothy Rady in 2018 
consisted of base salary, bonus and other benefits totaling $307,948 and award grants under the AR LTIP and Midstream LTIP having 
an aggregate grant date fair value of $413,946 and subject to certain time-based and performance-based vesting conditions.  Total 
compensation paid to Cole Kilstrom in 2018 consisted of base salary, bonus and other benefits totaling $100,110 and award grants 
under the AR LTIP having an aggregate grant date fair value of $20,000 and subject to certain time-based vesting conditions.  Total 
compensation paid to Alan Peters in 2018 consisted of base salary, bonus and other benefits totaling $117,878 and award grants under 
the AR LTIP having an aggregate grant date fair value of $30,000 and subject to certain time-based vesting conditions. 

114 

 
 
Procedures for Review, Approval and Ratification of Transactions with Related Persons 

The board has determined that the audit committee will periodically review all related person transactions that the rules of the 

SEC require be disclosed in this Annual Report on Form 10-K, and make a determination regarding the initial authorization or 
ratification of any such transaction. 

The audit committee is charged with reviewing the material facts of all related person transactions and either approving or 

disapproving of our participation in such transactions under our Related Persons Transaction Policy, as amended by the board ("RPT 
Policy") on October 17, 2017.  Our RPT Policy also pre-approves certain related person transactions, including: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

any employment of an executive officer if his or her compensation is required to be reported in our Annual Reports on Form 
10-K under Item 402;  

director compensation which is required to be reported in our Annual Reports on Form 10-K under Item 402;  

any transaction with an entity at which the related person's only relationship is as an employee (other than an executive 
officer), director or beneficial owner of less than 10% of the entity's equity, if the aggregate amount involved does not exceed 
$1 million;  

any charitable contribution, grant or endowment by us to a charitable organization, foundation or university at which a related 
person's only relationship is as an employee (other than an executive officer) or a director is pre-approved or ratified (as 
applicable) if the aggregate amount involved does not exceed $200,000;  

any transaction where the related person's interest arises solely from the ownership of our common units and all holders of 
our common units received the same benefit on a pro rata basis (e.g., distributions) is pre-approved or ratified (as applicable);  

any transaction involving a related person where the rates or charges involved are determined by competitive bids is pre-
approved or ratified (as applicable); 

any transaction with a related person involving the rendering of services as a common or contract carrier, or public utility, at 
rates or charges fixed in conformity with law or governmental authority is pre-approved or ratified (as applicable); and  

any transaction with a related person involving services as a bank depositary of funds, transfer agent, registrar, trustee under a 
trust indenture or similar services is pre-approved or ratified (as applicable). 

The audit committee chairman may approve any related person transaction in which the aggregate amount involved is 

expected to be less than $120,000.  A summary of such approved transactions and each new related person transaction deemed pre-
approved under the RPT Policy is provided to the audit committee for its review.  The audit committee has the authority to modify the 
RPT Policy regarding pre-approved transactions or to impose conditions upon our ability to participate in any related person 
transaction. 

There were no related person transactions during 2018 which were required to be reported in "Related Persons Transactions" 

where the procedures described above did not require review, approval or ratification or where these procedures were not followed. 

Conflicts of Interest 

The board has adopted a written code of business conduct and ethics, under which a director would be expected to bring to 

the attention of our chief executive officer or the board any conflict or potential conflict of interest that may arise between the director 
or any affiliate of the director, on the one hand, and us or our general partner on the other.  The resolution of any such conflict or 
potential conflict should, at the discretion of the board in light of the circumstances, be determined by a majority of the disinterested 
directors. 

If a conflict or potential conflict of interest arises between our general partner or its affiliates, on the one hand, and us or our 
unitholders, on the other hand, the resolution of any such conflict or potential conflict should be addressed by the board of directors of 
our general partner in accordance with the provisions of our partnership agreement.  At the discretion of the board in light of the 
circumstances, the resolution may be determined by the board in its entirety or by the conflicts committee. 

(cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:89)(cid:82)(cid:76)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:17)(cid:3) 

115 

 
 
        
      
Conflicts of interest exist and may arise in the future as a result of the relationships between our general partner and its 

directors, officers, affiliates (including Antero Resources) and owners, on the one hand, and us and our limited partners, on the other 
hand.  Conflicts may arise as a result of the duties of our general partner and its directors and officers to act for the benefit of its 
owners, which may conflict with our interests and the interests of our public unitholders.  We are managed and operated by the board 
of directors and officers of our general partner, AMP GP, which is owned by AMGP.  Certain of our officers and directors are also 
(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:54)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:79)(cid:92)(cid:15)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)y of the 
directors of our general partner are also officers or directors of Antero Resources.  Affiliates of Warburg Pincus LLC ("Warburg"), 
Yorktown Partners LLC ("Yorktown"), Paul M. Rady and Glen C. Warren, Jr. serve as members of the board of directors of our 
general partner, the board of directors of AMGP GP and the board of directors of Antero Resources.  Mr. Rady, Mr. Warren and 
certain investment funds affiliated with Warburg and Yorktown (collectively, the "Sponsors") also own the membership interests in 
AMGP GP, a majority of the common units and other interests in AMGP and a significant portion of the shares of common stock of 
Antero Resources.  As a result of their investments in AMGP, AMGP GP, and its general partner and Antero Resources, the Sponsors 
may have conflicting interests with other holders of our common units, including with respect to the Transactions.  

Although our general partner has a contractual duty to manage us in a manner that it believes is not adverse to our interests, 
the directors and officers of our general partner have a fiduciary duty to manage our general partner in a manner that is beneficial to 
(cid:36)(cid:48)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:73)(cid:76)(cid:71)(cid:88)(cid:70)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)duty to 
manage Antero Resources in a manner that is beneficial to Antero Resources and its shareholders, and our directors and officers who 
are also directors and officers of AMGP GP have a fiduciary duty to manage AMGP GP in a manner that is beneficial to AMGP GP 
and its owners.  Our partnership agreement specifically defines the remedies available to unitholders for actions taken that, without 
these defined liability standards, might constitute breaches of fiduciary duty under applicable Delaware law.  The Delaware Act 
provides that Delaware limited partnerships may, in their partnership agreements, expand, restrict or eliminate the fiduciary duties 
otherwise owed by the general partner to the limited partners and the partnership. 

Whenever a conflict arises between our general partner or its owners and affiliates (including Antero Resources and AMGP), 

on the one hand, and us or our limited partners, on the other hand, the resolution or course of action in respect of such conflict of 
interest shall be permitted and deemed approved by us and all our limited partners and shall not constitute a breach of our partnership 
agreement, of any agreement contemplated thereby or of any duty, if the resolution or course of action in respect of such conflict of 
interest is: 

(cid:120)(cid:3)

(cid:120)(cid:3)

approved by the conflicts committee of our general partner, although our general partner is not obligated to seek such 
approval; or 

approved by the holders of a majority of the outstanding common units, excluding any such units owned by our general 
partner or any of its affiliates. 

Our general partner may, but is not required to, seek the approval of such resolutions or courses of action from the conflicts 

committee of its board of directors or from the holders of a majority of the outstanding common units as described above.  If our 
general partner does not seek approval from the conflicts committee or from holders of common units as described above and the 
board of directors of our general partner approves the resolution or course of action taken with respect to the conflict of interest, then it 
will be presumed that, in making its decision, the board of directors of our general partner acted in good faith, and in any proceeding 
brought by or on behalf of us or any of our unitholders, the person bringing or prosecuting such proceeding will have the burden of 
overcoming such presumption and proving that such decision was not in good faith.  Unless the resolution of a conflict is specifically 
provided for in our partnership agreement, the board of directors of our general partner or the conflicts committee of the board of 
directors of our general partner may consider any factors they determine in good faith to consider when resolving a conflict.  An 
independent third party is not required to evaluate the resolution.  Under our partnership agreement, a determination, other action or 
failure to act by our general partner, the board of directors of our general partner or any committee thereof (including the conflicts 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:12)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:71)(cid:72)(cid:72)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:179)(cid:76)(cid:81)(cid:3)(cid:74)(cid:82)(cid:82)(cid:71)(cid:3)(cid:73)(cid:68)(cid:76)(cid:87)(cid:75)(cid:180)(cid:3)(cid:88)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)er or any 
committee thereof (including the conflicts committee) believed such determination, other action or failure to act was adverse to the 
(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:17)(cid:3)(cid:3)(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:178)Committees of the Board of Directors(cid:178)(cid:38)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:3)(cid:73)or information 
(cid:68)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17) 

Director Independence 

Rather than adopting categorical standards, the Board assesses director independence on a case-by-case basis, in each case 
consistent with applicable legal requirements and the listing standards of the NYSE.  After reviewing all relationships each director 
has with us, including the nature and extent of any business relationships between us and each director, as well as any significant 

116 

charitable contributions we make to organizations where our directors serve as board members or executive officers, the Board has 
affirmatively determined that the following directors have no material relationships with us and are independent as defined by the 
current listing standards of the NYSE: Messrs. Kagan, Keenan, Mollenkopf, Korus and Peters.  Neither Mr. Rady, the Chairman and 
Chief Executive Officer of our general partner, nor Mr. Warren, the President and Secretary of our general partner, is considered by 
the Board to be an independent director because of his employment with Antero Resources. 

Item 14.  Principal Accountant Fees and Services  

The table below sets forth the aggregate fees and expenses billed by KPMG LLP, our independent registered public 

accounting firm, for the Partnership for the following periods:  

(in thousands) 
Audit Fees: 

Audit and Quarterly Reviews 
Audit Related Fees 

Total 

For the Years Ended December 31, 
2018 
2017 

$ 

$ 

540   
433   
 973   

 630  
 153  
 783  

The charter of the Audit Committee and its pre-approval policy require that the Audit Committee review and pre-approve our 

independent registered public accounting firm's fees for audit, audit-related, tax and other services.  The Chairman of the Audit 
Committee has the authority to grant pre-approvals, provided such approvals are within the pre-approval policy and are presented to 
the Audit Committee at a subsequent meeting.  For the year ended December 31, 2018, the audit committee approved 100% of the 
services described above under the captions "Audit Fees."  

117 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Item 15.  Exhibits and Financial Statement Schedules  

(a)(1) and (a)(2) Financial Statements and Financial Statement Schedules 

PART IV 

The consolidated financial statements are listed on the Index to Financial Statements to this report beginning on page F-1.  

(a)(3) Exhibits.  

Exhibit 
Number 

2.1** 

2.2 

3.1 

3.2 

3.3 

3.4 

3.5 

4.1 

4.2 

4.3 

Description of Exhibit 

Contribution, Conveyance and Assumption Agreement, dated as of September 17, 2015, by and among Antero 
Resources Corporation, Antero Midstream Partners LP and Antero Treatment LLC (incorporated by reference to 
Exhibit 2.1 to the Current Report on Form 8-K (Commission File No. 001-36719) filed on September 18, 2015).  

Simplification Agreement, dated as of October 9, 2018, by and among AMGP GP LLC, Antero Midstream GP 
LP, Antero IDR Holdings LLC, Arkrose Midstream Preferred Co LLC, Arkrose Midstream NewCo Inc., Arkrose 
Midstream Merger Sub LLC, Antero Midstream Partners GP LLC and Antero Midstream Partners LP 
(incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed 
on October 10, 2018). 

Certificate of Conversion of Antero Resources Midstream LLC, dated November 5, 2014 (incorporated by 
reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed on November 7, 
2014). 

Amended and Restated Certificate of Limited Partnership of Antero Midstream Partners LP, dated April 11, 2017 
(incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed 
on April 11, 2017).  

Agreement of Limited Partnership, dated as of November 10, 2014, by and between Antero Resources Midstream 
Management LLC, as the General Partner, and Antero Resources Corporation, as the Organizational Limited 
Partner (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File No. 001-
36719) filed on November 17, 2014).  

Amendment No. 1 to Agreement of Limited Partnership of Antero Midstream Partners LP, dated as of 
February 23, 2016 (incorporated by reference to Exhibit 3.4 to Annual Report on Form 10-K (Commission File 
No. 001-36719) filed on February 24, 2016).  

Amendment No. 2 to Agreement of Limited Partnership of Antero Midstream Partners LP, dated as of 
December 20, 2017 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File 
No. 001-36719) filed on December 26, 2017). 

Indenture, dated as of September 13, 2016, by and among Antero Midstream Partners LP, Antero Midstream 
Finance Corporation, the subsidiary guarantors party thereto and Wells Fargo Bank, National Association, as 
trustee (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K (Commission File No. 001-
36719) filed on September 13, 2016).  

Form of 5.375% Senior Note due 2024 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8- K 
(Commission File No. 001-36719) filed on September 13, 2016).  

Registration Rights Agreement, dated as of September 13, 2016, by and among Antero Midstream Partners LP, 
Antero Midstream Finance Corporation, the subsidiary guarantors named therein and J.P. Morgan Securities LLC 
as representative of the initial purchasers named therein (incorporated by reference to Exhibit 4.3 to Current 
Report on Form 8-K (Commission File No. 001-36719) filed on September 13, 2016).  

10.1 

Senior Note Purchase Agreement, dated as of September 8, 2016, by and among Antero Midstream Partners LP, 
Antero Midstream Finance Corporation and the Purchasers named therein (incorporated by reference to Exhibit 
10.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed on September 13, 2016).  

118 

10.2 

10.3 

Secondment Agreement, dated as of September 23, 2015, by and between Antero Midstream Partners LP, Antero 
Resources Midstream Management LLC, Antero Midstream LLC, Antero Water LLC, Antero Treatment LLC 
and Antero Resources Corporation (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-
K (Commission File No. 001-36719) filed on September 24, 2015).  

Amended and Restated Services Agreement, dated as of September 23, 2015, by and among Antero Midstream 
Partners LP, Antero Resources Midstream Management LLC and Antero Resources Corporation (incorporated by 
reference to Exhibit 10.3 to the Current Report on Form 8-K (Commission File No. 001-36719) filed on 
September 24, 2015).  

(cid:20)(cid:19)(cid:17)(cid:23)(cid:130)(cid:13) 

Amended and Restated Water Services Agreement, dated as of February 12, 2019, by and between Antero 
Resources Corporation and Antero Water LLC.  

10.5 

10.6 

10.7 

10.8 

10.9 

10.10 

10.11 

10.12 

10.13 

10.14 

10.15 

10.16 

10.17 

Amended and Restated Contribution Agreement, dated as of November 10, 2014, by and between Antero 
Resources Corporation and Antero Midstream Partners LP (incorporated by reference to Exhibit 10.1 to Current 
Report on Form 8-K (Commission File No. 001-36719) filed on November 17, 2014).  

First Amended and Restated Gathering and Compression Agreement, dated as of February 13, 2018, by and 
between Antero Resources Corporation and Antero Midstream LLC (incorporated by reference to Exhibit 10.1 to 
Quarterly Report on Form 10-Q (Commission File No. 001-36719) filed on April 25, 2018).  

Second Amended and Restated Right of First Offer Agreement, dated as of February 13, 2018, by and between 
Antero Resources Corporation and Antero Midstream LLC (incorporated by reference to Exhibit 10.2 to Quarterly 
Report on Form 10-Q (Commission File No. 001-36719) filed on April 25, 2018).  

License Agreement, dated as of November 10, 2014, by and between Antero Resources Corporation and Antero 
Midstream Partners LP (incorporated by reference to Exhibit 10.4 to Current Report on Form 8-K (Commission 
File No. 001-36719) filed on November 17, 2014).  

Registration  Rights  Agreement,  dated  as  of  November  10,  2014, by  and  among  Antero  Midstream  Partners  LP 
and  Antero  Resources  Corporation  (incorporated  by  reference  to  Exhibit  10.5  to  Current  Report  on  Form  8-K 
(Commission File No. 001-36719) filed on November 17, 2014).  

Amended and Restated Credit Agreement, dated as of October 26, 2017, among Antero Midstream Partners LP 
and  certain  of  its  subsidiaries,  certain  lenders  party  thereto,  Wells  Fargo  Bank,  National  Association,  as 
administrative  agent,  l/c  issuer  and  swingline  lender  and  the  other  parties  thereto  (incorporated  by  reference  to 
Exhibit 10.1 to Quarterly Report on Form 10-Q (Commission File No. 001-36719) filed on November 1, 2017).  

First  Amendment and Joinder Agreement to  Amended and Restated  Credit Agreement,  dated as of October 31, 
2018  (incorporated  by  reference  to  Exhibit  10.1  to  Current  Report  on  Form  8-K  (Commission  File  No.  001-
36719) filed on November 2, 2018). 

Form of Antero Midstream Partners LP Long-Term Incentive Plan (incorporated by reference to Exhibit 10.11 to 
(cid:36)(cid:80)(cid:72)(cid:81)(cid:71)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:49)(cid:82)(cid:17)(cid:3)(cid:23)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:54)-1, filed on July 11, 
2014, File No. 333-193798). 

Form of Amended and Restated Indemnification Agreement (incorporated by reference to Exhibit 10.1 to Current 
Report on Form 8-K (Commission File No. 001-36719) filed on April 17, 2018)).  

Form  of  Phantom  Unit  Grant  Notice  and  Phantom  Unit  Agreement  under  the  Antero  Midstream  Partners  LP 
Long-Term Incentive Plan (incorporated by reference to Exhibit 4.4 to Antero Midstream Partners(cid:182)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
Statement on Form S-8 (Commission File No. 001- 36719) filed on November 12, 2014).  

Form  of  Restricted  Unit  Grant  Notice  and  Restricted  Unit  Agreement  under  the  Antero  Midstream  Partners  LP 
Long-Term Incentive Plan (incorporated by reference to Exhibit 4.5 to Antero Midstream  (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
Statement on Form S-8 (Commission File No. 001- 36719) filed on November 12, 2014).  

Form  of  Bonus  Unit  Grant  Notice  and  Bonus  Unit  Agreement  (Form  for  Non-Employee  Directors)  under  the 
Antero Midstream Partners LP Long-Term Incentive Plan (incorporated by reference to Exhibit 10.16 to Annual 
Report on Form 10-K (Commission File No. 001-36120) filed on February 24, 2016).  

Antero  Resources  Corporation  Long-Term  Incentive  Plan,  effective  as  of  October  1,  2013  (incorporated  by 
(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:40)(cid:91)(cid:75)(cid:76)(cid:69)(cid:76)(cid:87)(cid:3)(cid:23)(cid:17)(cid:22)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:54)-8 (Commission File No. 001- 36120) 

119 

10.18 

10.19 

10.20 

10.21 

10.22 

10.23 

21.1* 
23.1* 
31.1* 

31.2* 

32.1* 

32.2* 

101* 

filed on October 11, 2013).  

Form  of  Restricted  Stock  Unit  Grant  Notice  and  Restricted  Stock  Unit  Agreement  under  the  Antero  Resources 
Corporation Long-Term Incentive Plan (incorporated by reference to Exhibit 10.28 to Annual Report on Form 10-
K (Commission File No. 001-36120) filed on February 25, 2015).  

Form of Bonus Stock Grant Notice and Bonus Stock Agreement (Form for Non-Employee Directors) under the 
Antero Resources Corporation Long-Term Incentive Plan (incorporated by reference to Exhibit 10.36 to Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:20)(cid:19)-K (Commission File No. 001-36120) filed on February 24, 2016).  

Form  of  Performance  Share  Unit  Grant  Notice  and  Performance  Share  Unit  Agreement  (Form  for  Special 
Retention Awards) under the Antero Resources Corporation Long-Term Incentive Plan (incorporated by reference 
(cid:87)(cid:82)(cid:3) (cid:40)(cid:91)(cid:75)(cid:76)(cid:69)(cid:76)(cid:87)(cid:3) (cid:20)(cid:19)(cid:17)(cid:20)(cid:3) (cid:87)(cid:82)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:38)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80)(cid:3) (cid:27)-K  (Commission  File  No.  001-36120)  filed  on 
February 12, 2016).  

Global  Grant  Amendment  to  Grant  Notices  and  Award  Agreements  Under  the  Antero  Midstream  Partners  LP 
Long-Term  Incentive  Plan,  effective  as  of  October  24,  2016  (incorporated  by  reference  to  Exhibit  10.1  to 
Quarterly Report on Form 10-Q (Commission File No. 001-36120) filed on October 26, 2016).  

Voting  Agreement,  dated  as  of  October  9,  2018,  by  and  among  Antero  Midstream  Partners  LP  and  the 
shareholders of Antero Midstream GP LP named on Schedule I thereto (incorporated by reference to Exhibit 10.1 
to the Current Report on Form 8-K (Commission File No. 001-36719) filed on October 10, 2018). 

Voting  Agreement,  dated  as  of  October  9,  2018,  by  and  among  Antero  Midstream  Partners  LP  and  the 
shareholders of Antero Midstream GP LP named on Schedule I thereto (incorporated by reference to Exhibit 10.2 
to the Current Report on Form 8-K (Commission File No. 001-36719) filed on October 10, 2018). 

Subsidiaries of Antero Midstream Partners LP.  

Consent of KPMG LLP.  

Certification  of  the  Chief  Executive  Officer  Pursuant  to  Section  302  of  the  Sarbanes  Oxley  Act  of  2002  (18 
U.S.C. Section 7241).  

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. 
Section 7241). 

Certification  of  the  Chief  Executive  Officer  Pursuant  to  Section  906  of  the  Sarbanes  Oxley  Act  of  2002  (18 
U.S.C. Section 1350).  

Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. 
Section 1350). 

The following  financial information  from this Form 10-K of Antero Midstream Partners LP for the  year ended 
December  31,  2018,  formatted  in  XBRL  (eXtensible  Business  Reporting  Language):  (i)  Consolidated  Balance 
Sheets,  (ii)  Consolidated  Statements  of  Operations  and  Comprehensive  Income  (Loss),  (iii)  Consolidated 
Statements of Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Consolidated Financial 
Statements, tagged as blocks of text. 

The exhibits marked with the asterisk symbol (*) are filed or furnished with this Annual Report on Form 10-K. 
**   Pursuant to Item 601(b)(2) of Regulation S-K, the Partnership agrees to furnish supplementally a copy of any omitted exhibit or 

schedule to the U.S. Securities and Exchange Commission upon request. 

(cid:130)  Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

120 

 
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused 

this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

SIGNATURES 

ANTERO MIDSTREAM PARTNERS LP 

By: 

By: 

ANTERO MIDSTREAM PARTNERS GP LLC, its 
general partner 

/s/ Michael N. Kennedy 
Michael N. Kennedy 
Chief Financial Officer 

Date: 

February 13, 2019 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on 

behalf of the registrant in the capacities and on the dates indicated. 

Signature 

Title (Position with Antero Midstream Partners 
GP LLC) 

Date 

/s/ PAUL M. RADY 
Paul M. Rady 

Chairman of the Board, 
Director and Chief Executive officer 

  (principal executive officer) 

/S/ MICHAEL N. KENNEDY 
Michael N. Kennedy 

  Chief Financial Officer  
  (principal financial officer) 

/s/ K. PHIL YOO 
K. Phil Yoo 

Vice President, Accounting and Chief 
Accounting Officer 

  (principal accounting officer) 

February 13, 2019 

February 13, 2019 

February 13, 2019 

/S/ GLEN C. WARREN, JR. 
Glen C. Warren, Jr. 

  President, Director, and Secretary 

February 13, 2019 

/s/ PAUL J. KORUS 
Paul J. Korus 

  Director 

/s/ W. HOWARD KEENAN, JR. 
W. Howard Keenan, Jr. 

  Director 

/s/ PETER R. KAGAN 
Peter R. Kagan 

  Director 

/s/ JOHN C. MOLLENKOPF 
John C. Mollenkopf 

  Director 

/s/ DAVID A. PETERS 
David A. Peters 

  Director 

February 13 2019 

February 13, 2019 

February 13, 2019 

February 13, 2019 

February 13, 2019 

121 

  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 

Audited Historical Consolidated Financial Statements as of December 31, 2017 and 2018 and for the Years 
Ended December 31, 2016, 2017, and 2018 

Report of Independent Registered Public Accounting Firm  
Consolidated Balance Sheets  
Statements of Consolidated Operations and Comprehensive Income   
Statement(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)  
Statements of Consolidated Cash Flows  
Notes to Consolidated Financial Statements  

Page 

F-2 
F-4 
F-5 
F-6 
F-7 
F-8 

F-1 

 
 
 
 
 
 
Report of Independent Registered Public Accounting Firm 

The Unitholders of Antero Midstream Partners LP and 
Board of Directors of Antero Midstream Partners GP LLC: 

Opinions on the Consolidated Financial Statements and Internal Control over Financial Reporting 

We have audited the accompanying consolidated balance sheets of Antero Midstream Partners LP and its subsidiaries (the 
Partnership) as of December 31, 2017 and 2018, the related consolidated statements of operations and comprehensive income, 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)tal, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes 
(cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:12)(cid:17)(cid:3)(cid:58)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79) reporting as 
of December 31, 2018, based on criteria established in Internal Control (cid:177) Integrated Framework (2013) issued by the Committee of 
Sponsoring Organizations of the Treadway Commission. 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of 
the Partnership as of December 31, 2017 and 2018, and the results of its operations and its cash flows for each of the years in the 
three-year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles. Also in our opinion, 
the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018 based 
on criteria established in Internal Control (cid:177) Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of 
the Treadway Commission. 

Basis for Opinion 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:68)(cid:76)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)ontrol 
over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:50)(cid:89)(cid:72)(cid:85)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)Item 9A. Controls and Procedures. 
O(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company 
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in 
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission 
and the PCAOB. 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits 
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to 
error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.  

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the 
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such 
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial 
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well 
as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting 
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and 
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included 
performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable 
basis for our opinions. 

Definition and Limitations of Internal Control over Financial Reporting 

(cid:36)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:86)(cid:82)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:88)(cid:85)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72) reliability 
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:79)(cid:72)(cid:86)(cid:17)(cid:3)(cid:36)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:71)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(1) pertain 
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of 
the Partnership; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial 
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Partnership are being 
made only in accordance with authorizations of management and directors of the Partnership; and (3) provide reasonable assurance 

F-2 

regarding prevention or timely detection of unauthorized acquisit(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:88)(cid:86)(cid:72)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)
material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ KPMG LLP 

We have served a(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:3)(cid:86)(cid:76)(cid:81)(cid:70)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:17) 

Denver, Colorado 
February 13, 2019 

F-3 

 
 
ANTERO MIDSTREAM PARTNERS LP  

Consolidated Balance Sheets 

December 31, 2017 and 2018 

(In thousands) 

Assets 

December 31, 

2017 

2018 

  $ 

 8,363  
 110,182  
 1,170  
 670   
 120,385  
 2,605,602  
 303,302  
 12,920  
$   3,042,209  

  $ 

 6,459  
 8,642  
 106,006  
 (cid:178)  
 209  
 121,316  

 1,196,000  
 208,014  
 (cid:178)  
 410  
 1,525,740 

 (cid:178)  
 115,378  
 1,544  
 21,513  
 138,435  
 2,958,415  
 433,642   
 15,925   
 3,546,417  

 4,141  
 21,372  
 72,121  
 1,817  
 235  
 99,686  

 1,632,147  
 114,995  
 5,791  
 2,290  
 1,854,909  

 1,708,379  

 1,792,011  

 (215,682)  
 23,772   
 1,516,469  
$   3,042,209  

 (143,995)  
 43,492  
 1,691,508  
 3,546,417  

Current assets: 

Cash and cash equivalents 
Accounts receivable(cid:177)Antero Resources 
Accounts receivable(cid:177)third party 
Other current assets 

Total current assets 

Property and equipment, net 
Investments in unconsolidated affiliates 
Other assets, net 

Total assets 

Current liabilities: 

Accounts payable(cid:177)Antero Resources 
Accounts payable(cid:177)third party 
Accrued liabilities 
Asset retirement obligations 
Other current liabilities 

Total current liabilities 

Long-term liabilities: 
Long-term debt 
Contingent acquisition consideration 
Asset retirement obligations 
Other 

Total liabilities 

Partners' capital: 

Liabilities and Partners' Capital 

Common unitholders(cid:177)public (88,059 and 88,452 units issued and outstanding at December 31, 

2017 and 2018 respectively) 

Common unitholder(cid:177)Antero Resources (98,870 units issued and outstanding at December 31, 

2017 and 2018) 

General partner 

Total partners' capital 

Total liabilities and partners' capital 

See accompanying notes to consolidated financial statements. 

F-4 

 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
   
 
    
 
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Consolidated Statements of Operations and Comprehensive Income 

Years Ended December 31, 2016, 2017, and 2018 

(In thousands, except per unit amounts) 

Revenue: 

Gathering and compression(cid:177)Antero Resources 
Water handling and treatment(cid:177)Antero Resources 
Gathering and compression(cid:177)third party 
Water handling and treatment(cid:177)third party 
Gain on sale of assets(cid:177)Antero Resources 
Gain on sale of assets(cid:177)third party 

$ 

Total revenue 
Operating expenses: 
Direct operating 
General and administrative (including $26,049, $27,283 and $21,073 of equity-based 

compensation in 2016, 2017 and 2018, respectively) 

Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition consideration 
Accretion of asset retirement obligations 

Total operating expenses 
Operating income 

Interest expense, net 
Equity in earnings of unconsolidated affiliates 
Net income and comprehensive income 

Net income attributable to incentive distribution rights 

Limited partners' interest in net income 

Net income per limited partner unit(cid:177)basic 
Net income per limited partner unit(cid:177)diluted 

Weighted average limited partner units outstanding: 

Basic 
Diluted 

$ 

$ 
$ 

Year Ended December 31,  
2017 

2018 

2016 

 303,250   
 282,267   
 835   
 (cid:178)   
 (cid:178)   
 3,859   
 590,211   

 396,202   
 376,031   
 264   
 (cid:178)  
 (cid:178)  
 (cid:178)  
 772,497   

 520,566   
 506,449   
 (cid:178)   
 924   
 583   
 (cid:178)   
  1,028,522   

 161,587   

 232,538   

 316,423   

 54,163   
 (cid:178)   
 99,861   
 16,489   
 (cid:178)   
 332,100   
 258,111   
 (21,893)  
 485   
 236,703   
 (16,944) 
 219,759   

 58,812   
 23,431   
 119,562   
 13,476   
 (cid:178)  
 447,819   
 324,678   
 (37,557)  
 20,194   
 307,315   
 (69,720) 
 237,595   

 61,629   
 5,771   
 130,013   
 (93,019)  
 135   
 420,952   
 607,570   
 (61,906)  
 40,280   
 585,944   
 (142,906)  
 443,038   

1.24    
1.24    

 1.28  
 1.28  

 2.37   
 2.36   

176,647    
176,801    

 185,630   
 186,083   

 187,048   
 187,398   

See accompanying notes to consolidated financial statements.   

F-5 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
  
 
 
 
   
 
 
  
 
 
 
   
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP  

(cid:38)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79) 

Years Ended December 31, 2016, 2017, and 2018 

(In thousands) 

Balance at December 31, 2015 

Net income and comprehensive income 
Distributions 
Equity-based compensation 
Issuance of common units upon vesting of equity-based 

compensation awards, net of units withheld for income taxes 

Issuance of common units, net of offering costs 
Sale of units held by Antero Resources to public 

Balance at December 31, 2016 

Net income and comprehensive income 
Distributions 
Conversion of subordinated units to common units 
Equity-based compensation 
Issuance of common units upon vesting of equity-based 

compensation awards, net of units withheld for income taxes 

Sale of units held by Antero Resources to public 
Issuance of common units, net of offering costs 

Balance at December 31, 2017 

Net income and comprehensive income 
Distributions 
Equity-based compensation 
Issuance of common units upon vesting of equity-based 

compensation awards, net of units withheld for income taxes 

Other 

Balance at December 31, 2018 

Common 
Unitholders 
Public 
    $   1,351,317       

Limited Partners 
Common 
Unitholder 
Antero 
Resources 

Subordinated 
Unitholder 
Antero 
Resources 

Antero IDR 
Holdings 
LLC 

 30,186       
 42,817 
 (33,701)    
 9,128 

 (299,727)     
 94,518 
 (73,663)   
 8,909 

 969       

 16,944 
 (10,370)    
 (cid:178) 

 82,424 
 (64,712)   
 8,012 

 9,555 
 65,395 
 6,419 
 1,458,410       
 100,347 
 (98,861)   
 (cid:178) 
 9,776 

 9,691 
 (19,940)   
 248,956 
 1,708,379   
 208,911   
 (144,085)   
 7,796 

 (15,191)    
 (cid:178) 
 (6,419)    
 26,820       

 137,248 
 (131,598)    
 (269,963)    
 17,507 

 (15,636)    
 19,940 
 (cid:178) 

 (215,682)      
 234,127 
 (159,181)    
 13,277 

 (cid:178) 
 (cid:178) 
 (cid:178) 

 (269,963)     

 (cid:178) 
 (cid:178) 
 269,963 
 (cid:178) 

 (cid:178) 
 (cid:178) 
 (cid:178) 
 7,543       
 69,720 
 (53,491)    
 (cid:178) 
 (cid:178) 

 (cid:178) 
 (cid:178) 
 (cid:178) 
 23,772   
 142,906 
    (123,186)    

 (cid:178) 

 (cid:178) 
 (cid:178) 
 (cid:178) 
 (cid:178)   
 (cid:178) 
 (cid:178) 
 (cid:178) 

 (cid:178) 
 (cid:178) 
 (cid:178)   

Total 
Partners' 
Capital 
 1,082,745   
 236,703   
 (182,446)  
 26,049   

 (5,636)  
 65,395   
 (cid:178)   
 1,222,810   
 307,315   
 (283,950)  
 (cid:178)   
 27,283   

 (5,945)  
 (cid:178)   
 248,956   
 1,516,469   
 585,944   
 (426,452)  
 21,073   

 11,007 
 3 
  $   1,792,011   

 (16,536)    
 (cid:178) 
 (143,995)  

 (cid:178) 
 (cid:178) 
 43,492   

 (5,529)  
 3   
 1,691,508   

See accompanying notes to consolidated financial statements. 

F-6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
     
  
 
  
  
  
  
 
  
  
  
  
  
 
  
  
  
  
 
  
  
  
 
  
  
  
  
 
  
  
     
  
 
  
  
  
  
  
  
 
  
  
  
 
  
  
  
  
 
  
  
  
  
  
  
  
 
  
  
  
 
 
 
 
 
  
  
  
  
  
  
 
  
  
  
  
 
  
  
  
 
  
  
  
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP  

Consolidated Statements of Cash Flows 

Years Ended December 31, 2016, 2017, and 2018 

(In thousands) 

Cash flows provided by operating activities: 

Net income 
Adjustments to reconcile net income to net cash provided by operating activities: 

Depreciation 
Accretion and change in fair value of contingent acquisition consideration 
Accretion of asset retirement obligations 
Impairment of property and equipment 
Equity-based compensation 
Equity in earnings of unconsolidated affiliates 
Distributions from unconsolidated affiliates 
Amortization of deferred financing costs 
Gain on sale of assets(cid:177)Antero Resources 
Gain on sale of assets(cid:177)third-party 
Changes in assets and liabilities: 

Accounts receivable(cid:177)Antero Resources 
Accounts receivable(cid:177)third party 
Prepaid expenses 
Accounts payable(cid:177)Antero Resources 
Accounts payable(cid:177)third party 
Accrued liabilities 

Net cash provided by operating activities 

Cash flows used in investing activities: 

Additions to gathering systems and facilities 
Additions to water handling and treatment systems 
Investments in unconsolidated affiliates 
Proceeds from sale of assets(cid:177)Antero Resources 
Proceeds from sale of assets(cid:177)third party 
Change in other assets 
Change in other liabilities 

Net cash used in investing activities 

Cash flows provided by financing activities: 

Distributions 
Issuance of senior notes 
Borrowings (repayments) on bank credit facilities, net 
Issuance of common units, net of offering costs 
Payments of deferred financing costs 
Employee tax withholding for settlement of equity compensation awards 
Other 

Net cash provided by financing activities 
Net increase (decrease) in cash and cash equivalents 

Cash and cash equivalents, beginning of period 
Cash and cash equivalents, end of period 
Supplemental disclosure of cash flow information: 

Cash paid during the period for interest 
Increase (decrease) in accrued capital expenditures and accounts payable for property and 

equipment 

  $ 

$ 

$ 

Year Ended December 31,  
2017 

2018 

2016 

  $ 

 236,703 

 307,315   

 585,944   

 99,861 
 16,489 
 (cid:178) 
 (cid:178) 
 26,049 
 (485) 
 7,702 
 1,814 
 (cid:178) 
 (3,859) 

 1,573 
 1,467 
 (529) 
 1,055 
 95 
 (9,328) 
 378,607 

 (228,100) 
 (188,220) 
 (75,516) 
 (cid:178) 
 10,000 
 3,673 
 (cid:178) 
 (478,163) 

 (182,446) 
 650,000 
 (410,000) 
 65,395 
 (10,435) 
 (5,636) 
 (163) 
 106,715 
 7,159 
 6,883   
 14,042   

 119,562   
 13,476   
 (cid:178)   
 23,431   
 27,283   
 (20,194)  
 20,195   
 2,888   
 (cid:178)   
 (cid:178)   

 (41,043)  
 70   
 (141)  
 3,266   
 3,003   
 16,685   
 475,796   

 (346,217)  
 (195,162)  
 (235,004)  
 (cid:178)   
 (cid:178)   
 (3,435)  
 (cid:178)   
 (779,818)  

 (283,950)  
 (cid:178)   
 345,000   
 248,956   
 (5,520)  
 (5,945)  
 (198)  
 298,343   
 (5,679)  
 14,042   
 8,363   

 130,013   
 (93,019)  
 135   
 5,771   
 21,073   
 (40,280)  
 46,415   
 2,879   
 (583)  
 (cid:178)   

 (10,196)  
 648   
 (153)  
 (1,804)  
 7,670   
 3,047   
 657,560   

 (446,270)  
 (88,674)  
 (136,475)  
 4,470   
 1,680   
 (3,591)  
 2,273   
 (666,587)  

 (426,452)  
 (cid:178)    
 435,000   
 (cid:178)   
 (2,169)  
 (5,529)  
 (186)  
 664   
 (8,363)  
 8,363   
 (cid:178)   

 13,494 

 46,666   

 62,844   

 (8,471) 

 16,338   

 (32,563)  

See accompanying notes to consolidated financial statements.   

F-7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
 
  
 
  
   
  
   
 
   
     
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements 

Years Ended December 31, 2016, 2017, and 2018 

(1)  Business and Organization 

(a)  Overview 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:180)(cid:12)(cid:3)is a growth-oriented master limited partnership formed by Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:90)(cid:81)(cid:15)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:80)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)energy infrastructure primarily to service Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:83)(cid:83)(cid:68)(cid:79)(cid:68)(cid:70)(cid:75)(cid:76)(cid:68)(cid:81)(cid:3)(cid:37)(cid:68)(cid:86)(cid:76)(cid:81)(cid:182)(cid:86)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:87)(cid:76)(cid:70)(cid:68)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)n West 
(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)s, compressor stations, interests in processing and 
fractionation plants, and water handling and treatment assets, through which the Partnership and its affiliates provide midstream 
services to Antero Resources under long-term, fixed-fee contracts.  The Pa(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86) consolidated financial statements as of 
(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:180)(cid:12)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)
(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:180)(cid:12)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)
which are entities under common control. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:75)(cid:76)(cid:74)(cid:75)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:82)(cid:90)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)
stations, and processing and fractionation plants tha(cid:87)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:49)(cid:42)(cid:47)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)
(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:72)(cid:86)(cid:75)(cid:3)water 
from sources including the Ohio River, local reservoirs as well as several regional waterways, an advanced wastewater treatment 
facility placed into service in 2018 and a related landfill used for the disposal of waste therefrom. 

The Partnership also has a 15% equity interest in the gathering system (cid:82)(cid:73)(cid:3)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:3)(cid:42)(cid:68)(cid:86)(cid:3)(cid:42)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)

(cid:24)(cid:19)(cid:8)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:77)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:89)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:54)ee 
Note 14(cid:178)Investments in Unconsolidated Affiliates.  

The Partnership has been determined to be a variable interest entity and its financial statements are consolidated within the 

financial statements of Antero Resources (NYSE: AR), its primary beneficiary for financial reporting purposes.  

On April 6, 2017, in connection with its ini(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:180)(cid:12)(cid:3)
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owned subsidiary, and, on April 11, 2017, assigned to AMP GP the general partner interest in us.  Concurrent with the assignment, 
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On May 9, 2017, ARMM closed its initial public offering.  In connection with the offering, ARMM was converted into a 

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(b) Simplification Agreement 

On October (cid:28)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)s entered into a 

(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)r 
things, (1) AMGP will be converted from a limited partnership to a corporation under the laws of the State of Delaware, to be named 
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owned subsidiary of New AM will be merged with and into the Partnership, with the Partnership surviving the merger as an indirect, 
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(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:68)nd the holder of 
(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:20)(cid:26)(cid:17)(cid:22)(cid:24)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)res of New 
(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)other transactions 
(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:80)(cid:83)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)ions, the 
Partnership will be a wholly owned subsidiary of New AM and former shareholders of AMGP, unitholders of the Partnership and 
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(cid:44)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:11)(cid:20)(cid:12)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:3)

(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72), at its election, one of (i) $3.415 in cash without interest and 1.6350 validly issued, 
(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:15)(cid:3)(cid:81)(cid:82)(cid:81)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3)

F-8 

 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:20)(cid:17)(cid:25)(cid:22)(cid:24)(cid:19)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)
equal to the quotient of (A) $3.415 and (B) the average of the 20-day volume-weighted average trading price per AMGP common 
share prior to the final election day for AM Public (cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)
(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:7)(cid:22)(cid:17)(cid:23)(cid:20)(cid:24)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:72)(cid:84)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:11)(cid:36)) 1.6350 
and (B) the AMGP VWAP for each of the Partnershi(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:21)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)
(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)bed 
below), to receive $3.00 in cash without interest (cid:68)(cid:81)(cid:71)(cid:3)(cid:20)(cid:17)(cid:25)(cid:19)(cid:21)(cid:22)(cid:3)(cid:89)(cid:68)(cid:79)(cid:76)(cid:71)(cid:79)(cid:92)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:15)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:15)(cid:3)(cid:81)(cid:82)(cid:81)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17) 

The aggregate cash consideration to be paid to Antero Resources and the AM Public Unitholders will be fixed at an amount 
equal to the aggregate amount of cash that would have been paid and issued if all AM Public Unitholders received $3.415 in cash per 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:7)(cid:22)(cid:17)(cid:19)(cid:19)(cid:3)(cid:76)(cid:81)(cid:3)cash per common unit, which is approximately $598 
million.  If the Available Cash exceeds the cash consideration elected to be received by the AM Public Unitholders, Antero Resources 
may elect to increase the total amount of cash consideration to be received as a part of the AR Mixed Consideration up to an amount 
equal to the excess and the amount of shares it will receive will be reduced accordingly based on the AMGP VWAP.  In addition, the 
consideration to be received each AM Public Unitholder may be prorated in the event that more cash or equity is elected to be 
received than what would otherwise have been paid if all AM Public Unitholders had received the Public Mixed Consideration and 
Antero Resources received the AR Mixed Consideration. 

The Merger shou(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:75)(cid:68)(cid:85)(cid:68)(cid:70)(cid:87)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:82)(cid:86)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:74)(cid:81)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)

(cid:69)(cid:92)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:68)(cid:85)(cid:92)(cid:3)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)(cid:68)(cid:85)(cid:3)(cid:86)(cid:76)(cid:87)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)ares of 
(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)on stock, if any, received by such unitholder, the amount of any cash received by such unitholder, the adjusted tax 
(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:15)(cid:3)(cid:74)(cid:68)(cid:76)(cid:81)(cid:15)(cid:3)(cid:79)(cid:82)ss and 
deduction to such unitholder for the taxable year that includes the Merger), and the amount of any suspended passive losses that may 
be available to such unitholder to offset a portion of the gain recognized by such unitholder in connection with the Merger.     

Special meetings of AMGP shareholders and Antero Midstream unitholders will be held on March 8, 2019 to vote on the 
Simplification Agreement, the Merger and the other Transactions contemplated thereby, as applicable, and all AMGP shareholders 
and Antero Midstream unitholders of record as of the close of business on January 11, 2019, which is the record date for the special 
meetings, will be entitled to vote the AMGP common shares and Antero Midstream common units, respectively, owned by them on 
the record date.  AMGP and the Partnership expect to fund the cash portion of the merger consideration with borrowings under the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:79)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)
commitments from $1.5 billion to $2.0 billion.  

Also on October 9, 2018, in connection with the entry into the Simplification Agreement, (1) the Partnership entered into a 

(cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:15)(cid:3)(cid:83)ursuant to which, among 
other things, such shareholders agreed to vote in favor of the Transactions, (2) AMGP entered into a voting agreement with Antero 
Resources, pursuant to which, among other things, Antero Resources agreed to vote in favor of the Transactions and (3) AMGP, 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)), 
Paul M. Rady and Glen C. Warren, Jr. (Messrs. (cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:72)(cid:81)tered into a 
(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
Holders will have the ability to designate members of the New AM board of directors under certain circumstances, effective as the 
closing of the Transactions. 

(2)  Summary of Significant Accounting Policies 

(a)  Basis of Presentation 

These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:42)(cid:36)(cid:36)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:81)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:68)(cid:85)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)
(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:82)perations 

F-9 

 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

and its cash flows for the years ended December 31, 2016, 2017, and 2018.  The Partnership has no items of other comprehensive 
income or loss; therefore, net income is identical to comprehensive income.  

Certain costs of doing business incurred by Antero Resources on our behalf have been reflected in the accompanying 

consolidated financial statements.  These costs include general and administrative expenses attributed to us by Antero Resources in 
exchange for: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

business services, such as payroll, accounts payable and facilities management; 

corporate services, such as finance and accounting, legal, human resources, investor relations and public and regulatory 
policy; and 

employee compensation, including equity-based compensation. 

Transactions between the Partnership and Antero Resources have been identified in the consolidated financial statements (see 

Note 3(cid:178)Transactions with Affiliates). 

As of the date these consolidated financial statements were filed with the SEC, the Partnership completed its evaluation of 

potential subsequent events for disclosure and no items requiring disclosure were identified, except the declaration of a cash 
distribution to unitholders, as described in Note 10(cid:178)Partnership Equity and Distributions. 

(b)  Revenue Recognition 

(cid:50)(cid:81)(cid:3)(cid:48)(cid:68)(cid:92)(cid:3)(cid:21)(cid:27)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:41)(cid:36)(cid:54)(cid:37)(cid:180)(cid:12)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:56)(cid:83)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:11)(cid:179)(cid:36)(cid:54)(cid:56)(cid:180)(cid:12)(cid:3)

No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it 
expects to be entitled for the transfer of promised goods or services to customers.  The ASU replaced most existing revenue 
recognition guidance in GAAP when it became effective and was incorporated into GAAP as Accounting Standards Codification 
(cid:11)(cid:179)(cid:36)(cid:54)(cid:38)(cid:180)(cid:12)(cid:3)(cid:55)(cid:82)(cid:83)(cid:76)(cid:70)(cid:3)(cid:25)(cid:19)(cid:25)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)nership elected the modified retrospective transition method when new standard became effective for the 
Partnership on January 1, 2018.  The adoption of ASU 2014-(cid:19)(cid:28)(cid:3)(cid:71)(cid:76)(cid:71)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3) 

The Partnership provides gathering and compression and water handling and treatment services under fee-based contracts 

primarily based on throughput or at cost plus a margin.  Certain of these contracts contain operating leases of the Partnersh(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)
under GAAP.  Under these arrangements, the Partnership receives fees for gathering oil and gas products, compression services, and 
water handling and treatment services.  The revenue the Partnership earns from these arrangements is directly related to (1) in the case 
of natural gas gathering and compression, the volumes of metered natural gas that it gathers, compresses, and delivers to natural gas 
compression sites or other transmission delivery points, (2) in the case of oil gathering, the volumes of metered oil that it gathers and 
delivers to other transmission delivery points, (3) in the case of fresh water services, the quantities of fresh water delivered to its 
customers for use in their well completion operations, (4) in the case of wastewater treatment services performed by the Partnership, 
the quantities of wastewater treated for our customers, or (5) in the case of flowback and produced water services provided by third 
parties, the third party costs the Partnership incurs plus 3%. The Partnership recognizes revenue when it satisfies a performance 
obligation by delivering a service to a customer or the use of leased assets to a customer.  See Note 4(cid:178)Revenue (cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
required disclosures under ASC 606.  The Partnership report includes lease revenue within service revenue. 

(c)  Use of Estimates 

The preparation of the consolidated financial statements and notes in conformity with GAAP requires that management 
formulate estimates and assumptions that affect revenues, expenses, assets, liabilities and the disclosure of contingent assets and 
liabilities.  Items subject to estimates and assumptions include the useful lives of property and equipment and valuation of accrued 
liabilities, among others.  Although management believes these estimates are reasonable, actual results could differ from these 
estimates. 

F-10 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(d)  Cash and Cash Equivalents 

The Partnership considers all liquid investments purchased with an initial maturity of three months or less to be cash 

equivalents.  The carrying value of cash and cash equivalents approximates fair value due to the short-term nature of these 
instruments.  (cid:41)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:179)(cid:69)(cid:82)(cid:82)(cid:78)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:71)(cid:85)(cid:68)(cid:73)(cid:87)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:75)(cid:72)(cid:70)(cid:78)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)
and cash equivalents.  The Partnership classifies book overdrafts in accounts payable within its consolidated balance sheets, and 
classifies the change in accounts payable associated with book overdrafts as an operating activity within its consolidated statements of 
cash flows.  The Partnership classified $0.5 million of book overdrafts within accounts payable as of December 31, 2018.  

(e)  Property and Equipment 

Property and equipment primarily consists of gathering pipelines, compressor stations, fresh water delivery pipelines and 
facilities, and the wastewater treatment facility and related landfill used for the disposal of waste therefrom, stated at historical cost 
less accumulated depreciation and amortization.  The Partnership capitalizes construction-related direct labor and material costs.  The 
Partnership also capitalized interest on capital costs during the construction phase of the wastewater treatment facility, which was 
placed in service in 2018.  Maintenance and repair costs are expensed as incurred.  

Depreciation is computed using the straight-line method over the estimated useful lives and salvage values of assets.  The 

depreciation of fixed assets recorded under capital lease agreements is included in depreciation expense.  Uncertainties that may 
impact these estimates of useful lives include, among others, changes in laws and regulations relating to environmental matters, 
including air and water quality, restoration and abandonment requirements, economic conditions, and supply and demand for the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:68)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:86)(cid:17)(cid:3) When assets are placed into service, management makes estimates with 
respect to useful lives and salvage values that management believes are reasonable.  However, subsequent events could cause a change 
in estimates, thereby impacting future depreciation amounts. 

Amortization of landfill airspace consists of the amortization of landfill capital costs, including those that have been incurred 

and capitalized and estimated future costs for landfill development and construction, as well as the amortization of asset retirement 
costs arising from landfill final capping, closure, and post-closure obligations.  Amortization expense is recorded on a units-of-
consumption basis, applying cost as a rate per-cubic yard.  The rate per-cubic yard is calculated by dividing each component of the 
(cid:68)(cid:80)(cid:82)(cid:85)(cid:87)(cid:76)(cid:93)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:88)(cid:69)(cid:76)(cid:70)(cid:3)(cid:92)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:81)(cid:72)(cid:72)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:85)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:182)(cid:86)(cid:3)(cid:68)(cid:76)(cid:85)(cid:86)(cid:83)(cid:68)(cid:70)(cid:72)(cid:17)  Landfill capital costs 
and closure and post-closure asset retirement costs are generally incurred to support the operation of the landfill over its entire 
operating life and are, therefore, amortized on a per-(cid:70)(cid:88)(cid:69)(cid:76)(cid:70)(cid:3)(cid:92)(cid:68)(cid:85)(cid:71)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:88)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:182)(cid:86)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:76)(cid:85)(cid:86)(cid:83)(cid:68)(cid:70)(cid:72)(cid:3)(cid:70)(cid:68)(cid:83)(cid:68)(cid:70)(cid:76)(cid:87)(cid:92)(cid:17)  Estimates of disposal 
capacity and future development costs are created using input from independent engineers and internal technical teams and are 
reviewed at least annually.  However, future events could cause a change in estimates, thereby impacting future amortization amounts.  
See Note 5(cid:178)Property and Equipment for discussion on the change in estimated u(cid:86)(cid:72)(cid:73)(cid:88)(cid:79)(cid:3)(cid:79)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
facilities.   

(f)  Impairment of Long-Lived Assets 

The Partnership evaluates its long-lived assets for impairment when events or changes in circumstances indicate that the 
related carrying values of the assets may not be recoverable.  Generally, the basis for making such assessments are undiscounted 
future cash flows projections for the asset group being assessed.  If the carrying values of the assets are deemed not recoverable, the 
carrying values are reduced to the estimated fair value, which are based on discounted future cash flows using assumptions as to 
revenues, costs and discount rates typical of third party market participants, which is a Level 3 fair value measurement.  

 (g)  Asset Retirement Obligations 

In December 2017, the Partnership completed the construction of a landfill site to be used for the disposal of waste from its 

wastewater treatment facility.  The landfill began accepting waste in January 2018.  (cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:3)(cid:85)(cid:72)(cid:87)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)bligations 
relate to its obligation to close, maintain, and monitor landfill cells and support facilities.  After the entire landfill reaches capacity and 
is certified closed, the Partnership must continue to maintain and monitor the landfill for a post-closure period, which generally 
extends for 30 years.  The Partnership records the fair value of its landfill retirement obligations as a liability in the period in which 

F-11 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

the regulatory obligation to retire a specific asset is triggered.  For the Partnership(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:73)(cid:76)(cid:79)(cid:79)(cid:3)(cid:70)(cid:72)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
post-closure obligations under the terms of its permits and its intended operation of the landfill cell are triggered and recorded when 
the cell is placed into service and waste is initially disposed in the landfill cell.  The fair value is based on the total estimated costs to 
close the landfill cell and perform post-closure activities once the landfill cell has reached capacity and is no longer accepting waste.  
Retirement obligations are increased each year to reflect the passage of time by accreting the balance at the weighted average credit-
adjusted risk-free rate that is used to calculate the recorded liability, with accretion charged to direct costs.  Actual cash expenditures 
to perform closure and post-closure activities reduce the retirement obligation liabilities as incurred.  After initial measurement, asset 
retirement obligations are adjusted at the end of each period to reflect changes, if any, in the estimated future cash flows underlying 
the obligation.  Landfill retirement assets are capitalized as the related retirement obligations are incurred, and are amortized on a 
units-of-consumption basis as the disposal capacity is consumed. 

A retirement obligation is created for fresh water impoundments and waste water pits when an abandonment date is 

identified.  The Partnership records the fair value of its freshwater impoundment and waste water pit retirement obligations as 
liabilities in the period in which the regulatory obligation to retire a specific asset is triggered.  The fair value is based on the total 
reclamation costs of the assets.  Retirement obligations are increased each year to reflect the passage of time by accreting the balance 
at the weighted average credit-adjusted risk-free rate that is used to calculate the recorded liability, with accretion charged to direct 
costs.  Actual cash expenditures to perform remediation activities reduce the retirement obligation liabilities as incurred.  After initial 
measurement, asset retirement obligations are adjusted at the end of each period to reflect changes, if any, in the estimated future cash 
flows underlying the obligation.  Fresh water impoundments and waster water pit retirement assets are capitalized as the related 
retirement obligations are incurred, and are amortized on a straight-line basis until reclamation. 

The Partnership is under no legal obligations, neither contractually nor under the doctrine of promissory estoppel, to restore 

or dismantle its gathering pipelines, compressor stations, water delivery pipelines and facilities and wastewater treatment facility upon 
abandonment.   

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:73)(cid:85)(cid:72)(cid:86)(cid:75)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:92)(cid:3)(cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)

treatment facility have an indeterminate life, if properly maintained.  Accordingly, the Partnership is not able to make a reasonable 
estimate of when future dismantlement and removal dates of its pipelines, compressor stations and facilities will occur.  

 (h) Litigation and Other Contingencies 

A liability is recorded for a loss contingency when its occurrence is probable and damages can be reasonably estimated based 

on the anticipated most likely outcome or the minimum amount within a range of possible outcomes.  The Partnership regularly 
reviews contingencies to determine the adequacy of our accruals and related disclosures.  The ultimate amount of losses, if any, may 
differ from these estimates. 

The Partnership accrues losses associated with environmental obligations when such losses are probable and can be 
reasonably estimated.  Accruals for estimated environmental losses are recognized no later than at the time a remediation feasibility 
study, or an evaluation of response options, is complete.  These accruals are adjusted as additional information becomes available or 
as circumstances change.  Future environmental expenditures are not discounted to their present value.  Recoveries of environmental 
costs from other parties are recorded separately as assets at their undiscounted value when receipt of such recoveries is probable. 

As of December 31, 2017 and 2018, the Partnership has not recorded liabilities for litigation, environmental, or other 

contingencies. 

(i)  Equity-Based Compensation 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)ts reflect various equity-based compensation awards granted by Antero 
Resources, as well as compensation expense associated with its own plan.  These awards include profits interests awards, restricted 
stock, stock options, restricted units, and phantom units.  The Partnership recognized expense in each period for an amount allocated 
(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:86)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72) 3(cid:178)Transactions with Affiliates for additional 
(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) of expenses to the Partnership. 

F-12 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:50)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:3)(cid:47)(cid:82)(cid:81)(cid:74)-Term Incentive 

(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:81)(cid:82)(cid:81)-employee directors of our general partner and certain officers, 
(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:88)(cid:79)(cid:87)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:79)(cid:76)(cid:74)(cid:76)(cid:69)(cid:79)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74) equity 
interests in the Partnership.  An aggregate of 10,000,000 common units may be delivered pursuant to awards under the Midstream 
LTIP, subject to customary adjustments.  For accounting purposes, these units are treated as if they are distributed from the 
Partnership to Antero Resources.  Antero Resources recognizes compensation expense for the units awarded to its employees and a 
portion of that expense is allocated to the Partnership.  See Note 9(cid:178)Equity-Based Compensation. 

(j)  Income Taxes 

These consolidated financial statements do not include a provision for income taxes as Antero Midstream Partners LP is 

treated as a partnership for federal and state income tax purposes, with each partner being separately taxed on its distributive share of 
our items of income, gain, loss, or deduction. 

(k)  Fair Value Measures 

The FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, clarifies the definition 
of fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  This guidance 
also relates to all nonfinancial assets and liabilities that are not recognized or disclosed on a recurring basis (e.g., the initial recognition 
of asset retirement obligations and impairments of long-lived assets).  The fair value is the price that the Partnership estimates would 
be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  
A fair value hierarchy is used to prioritize inputs to valuation techniques used to estimate fair value.  An asset or liability subject to the 
fair value requirements is categorized within the hierarchy based on the lowest level of input that is significant to the fair value 
(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)(cid:68)(cid:85)(cid:3)(cid:76)(cid:81)(cid:83)(cid:88)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)rement in its entirety 
requires judgment and considers factors specific to the asset or liability.  The highest priority (Level 1) is given to unadjusted quoted 
market prices in active markets for identical assets or liabilities, and the lowest priority (Level 3) is given to unobservable inputs.  
Level 2 inputs are data, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or 
indirectly. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:70)(cid:68)(cid:85)(cid:85)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:69)(cid:68)(cid:79)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:86)(cid:75)(cid:72)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)s cash and cash equivalents, accounts receivable(cid:177)Antero 
Resources, accounts receivable(cid:177)third party, other current assets, other assets, accounts payable(cid:177)Antero Resources, accounts payable, 
accrued liabilities, other current liabilities, other liabilities and the revolving credit facility approximate fair values due to their short-
term maturities.  

(l)  Investments in Unconsolidated Affiliates 

The Partnership uses the equity method to account for its investments in companies if the investment provides the Partnership 

with the ability to exercise significant influence over, but not control, the operating and financial policies of the investee.  The 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:82)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)such companies.  The 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:77)(cid:88)(cid:71)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:73)(cid:79)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:78)(cid:72)(cid:92)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:86)(cid:88)(cid:70)h as the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:15)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)y-making decisions of the investee 
and material intercompany transactions.  See Note 14(cid:178)Investments in Unconsolidated Affiliates. 

F-13 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(m)  Recently Issued Accounting Standard 

On February 25, 2016, the FASB issued ASU No. 2016-02, Leases, which replaced most existing lease guidance under 

GAAP when it became effective on January 1, 2019.  The standard requires lessees to record lease liabilities and right-of-use assets as 
of the date of adoption and we have elected to adopt the new standard prospectively.  The Partnership is not a party to any material 
contracts as a lessee.  The new lease standard does not substantially change accounting by lessors.  The Partnership determined that its 
contractual arrangement with Antero Resources to provide midstream services is (cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)
(cid:69)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:36)(cid:54)(cid:56)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:85)(cid:85)(cid:68)(cid:81)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:49)(cid:82)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)icant 
additional disclosures will be required.  As a result, there will no(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
financial statements.  The Partnership believes that adoption of the standard will not impact its operational strategies, growth 
prospects, net income, or cash flow.  The Partnership as updated internal controls impacted by the new standard and acquired software 
to collect and account for lease data under the standard. 

(3)  Transactions with Affiliates 

(a)  Revenues 

All revenues earned in the years ended December 31, 2016, 2017 and 2018, except revenues earned from third parties, were 
earned from Antero Resources, under various agreements for gathering and compression and water handling and treatment services.   

(b)  Accounts receivable(cid:177)Antero Resources, and Accounts payable(cid:177)Antero Resources 

Accounts receivable(cid:177)Antero Resources represents amounts due from Antero Resources, primarily related to gathering and 

compression services and water handling and treatment services.  Accounts payable(cid:177)Antero Resources represents amounts due to 
Antero Resources for general and administrative and other costs.  

(c)  Allocation of Costs 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)ng expense 

includes allocated costs of $4 million, $6 million and $7 mllion during the years ended December 31, 2016, 2017, and 2018, 
respectively, related to labor charges for Antero Resources employees associated with the operation of our assets.  General and 
administrative expense includes allocated costs of $50 million, $54 million and $52 million during the years ended December 31, 
2016, 2017, and 2018, respectively.  These costs relate to: (i) various business services, including payroll processing, accounts payable 
processing and facilities management, (ii) various corporate services, including legal, accounting, treasury, information technology 
and human resources and (iii) compensation, including equity-based compensation (see Note 9(cid:178)Equity-Based Compensation for 
more information).  These expenses are charged or allocated to the Partnership based on the nature of the expenses and are allocated 
based on a combination of its proportionate share of gross property and equipment, capital expenditures and labor costs, as applicable.  
The Partnership reimburses Antero Resources directly for all general and administrative costs allocated to it, with the exception of 
noncash equity compensation allocated to the Partnership for awards issued under the Antero Resources long-term incentive plan or 
the Midstream LTIP. 

(4)  Revenue 

(a)  Revenue from Contracts with Customers 

(cid:36)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:85)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:74)(cid:81)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)
satisfies a performance obligation by delivering a service to a customer.  The Partnership derives substantially all of its revenues from 
Antero Resources, its most significant customer.  The following sets forth the nature, timing of satisfaction of performance 
obligations, (cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:83)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17) 

F-14 

 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Gathering and Compression Agreement 

Antero Resources has dedicated all of its current and future acreage in West Virginia, Ohio and Pennsylvania to the 
Partnership for gathering and compression services except for acreage subject to third-party commitments or pre-existing dedications.  
The Partnership also has an option to gather and compress natural gas produced by Antero Resources on any acreage it acquires in the 
future outside of West Virginia, Ohio and Pennsylvania on the same terms and conditions.  Under the gathering and compression 
agreement, the Partnership receives a low pressure gathering fee, a high pressure gathering fee, and a compression fee, in each case 
subject to CPI-based adjustments since 2014.  In addition, the agreement stipulates that the Partnership receives a reimbursement for 
the actual cost of electricity used at its compressor stations. 

The Partnership satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a 
compressor station, high pressure volumes are delivered to a processing plant or transmission pipeline, and compression volumes are 
delivered to a high pressure line.  The Partnership invoices the customer the month after each service is performed, and payment is due 
in the same month.  

Water Services Agreement 

In (cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:3)(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:24)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:36)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)the Partnership entered into a water services agreement with Antero 
Resources whereby the Partnership agreed to provide certain water handling and treatment services to Antero Resources within an 
area of dedication in defined service areas in Ohio and West Virginia.  Antero Resources agreed to pay the Partnership for all water 
handling and treatment services provided by the Partnership in accordance with the terms of the water services agreement.  The initial 
term of the water services agreement is 20 years from September 23, 2015 and from year to year thereafter until terminated by either 
party.  Under the agreement, the Partnership receives a fixed fee per barrel in West Virginia, Ohio and all other locations for fresh 
water deliveries by pipeline directly to the well site.  Additionally, the Partnership receives a fixed fee per barrel for fresh water 
delivered by truck to high-rate transfer facilities.  All of these fees have been subject to annual CPI adjustments since the inception of 
the agreement in 2015.  Antero Resources also agreed to pay the Partnership a fixed fee of per barrel for wastewater treatment at the 
advanced wastewater treatment complex, in each case subject to annual CPI-based adjustments and additional fees based on certain 
costs.  

Under the water services agreement, the Partnership may also contract with third parties to provide water services to Antero 

Resources.  Antero Resources reimburses the Partnership for third party out-of-pocket costs plus a 3% markup.  

The Partnership satisfies its performance obligations and recognizes revenue when the fresh water volumes have been 
(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:92)(cid:71)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:83)(cid:68)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:90)(cid:68)(cid:86)(cid:87)(cid:72)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:90)astewater 
treatment facility.  The Partnership invoices the customer the month after water services are performed, and payment is due in the 
(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:80)(cid:82)(cid:81)(cid:87)(cid:75)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:92)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:90)(cid:75)(cid:72)n the 
service to be performed by the third party provider has been completed.  The Partnership invoices the customer after the third party 
provider billing is received, and payment is due in the same month.  

Minimum Volume Commitments 

Both the gathering and compression and water services agreements include certain minimum volume commitment 
(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:87)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:17)(cid:3)(cid:3)(cid:44)(cid:73)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)es requests 
that the Partnership construct new high pressure lines and compressor stations, the gathering and compression agreement contains 
minimum volume commitments that require Antero Resources to utilize or pay for 75% and 70%, respectively, of the capacity of such 
new construction for 10 years.  Antero Resources also committed to pay a fee on a minimum volume of fresh water deliveries in 
calendar years 2016 through 2019.  Antero Resources is obligated to pay a minimum volume fee to the Partnership in the event the 
aggregate volume of fresh water delivered to Antero Resources under the water services agreement is less than 120,000 barrels per 
day in 2019.  The Partnership recognizes revenue related to these minimum volume commitments at the time it is determined that the 
volumes will not be consumed by Antero Resources, and the amount of the shortfall is known. 

F-15 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Minimum revenue amounts under the minimum volume commitments are as follows:  

(in thousands) 
Minimum revenue under the Gathering 

and Compression Agreement 
Minimum revenue under the Water 

Services Agreement 

Total 

(b)  Disaggregation of Revenue 

2019 

Year Ended December 31, 
2021 

2022 

2020 

2023 

    Thereafter     

Total 

  $  176,126 

   183,126 

    182,626 

   182,626 

   182,626    612,854    1,519,984  

   165,564 

     $  341,690 

 (cid:178) 
  183,126 

 (cid:178) 
   182,626 

 (cid:178) 
  182,626 

 (cid:178)  

 (cid:178)  

 165,564  

  182,626   612,854   1,685,548   

In the following table, revenue is disaggregated by type of service and type of fee.  The table also identifies the reportable 

segment to which the disaggregated revenues relate.  For more information on reportable segments, see Note 15(cid:178)Reporting 
Segments. 

(in thousands) 
Revenue from contracts with 
customers 

Type of service 

Gathering(cid:178)low pressure 
Gathering(cid:178)high pressure 
Compression 
Condensate gathering 
Fresh water delivery 
Wastewater treatment 
Other fluid handling 

Total 

Type of contract 
Fixed Fee 
Fixed Fee 
Cost plus 3% 
Total 

Other 

2016 

Year Ended December 31,  
2017 

2018 

Segment to which 
revenues relate 

$ 

  $ 

$ 

  $ 

 160,925  
 90,124  
 50,938  
 2,098  
 166,013  
 (cid:178)  
 116,254 
 586,352 

 304,085  
 166,013  
 116,254 
 586,352 

 191,766  
 122,134  
 82,502  
 64  
 207,558  
 (cid:178)  
 168,473 
 772,497 

 396,466  
 207,558  
 168,473 
 772,497 

 251,209   Gathering and Processing 
 148,122   Gathering and Processing 
 121,235   Gathering and Processing 
 (cid:178)   Gathering and Processing 
 269,856   Water Handling and Treatment  
 12,135   Water Handling and Treatment  

 225,382 
 1,027,939 

  Water Handling and Treatment   

 520,566   Gathering and Processing 
 281,991   Water Handling and Treatment  
 225,382 
 1,027,939 

  Water Handling and Treatment   

Gain on sale of assets(cid:177)Antero 

Resources 

Gain on sale of assets(cid:177)third 

party 
Total revenue 

 (cid:178)  

 (cid:178)  

 583   Gathering and Processing 

 3,859  
 590,211  

$ 

 (cid:178)  
 772,497  

 (cid:178)   Gathering and Processing 

 1,028,522  

(c)  Transaction Price Allocated to Remaining Performance Obligations 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:3)(cid:74)(cid:85)(cid:72)(cid:68)(cid:87)(cid:72)(cid:85) than one year.  As such, the Partnership has utilized 

the practical expedient in ASC 606, which states that a company is not required to disclose the transaction price allocated to remaining 
performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation.  Under the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:3)(cid:86)(cid:72)(cid:83)(cid:68)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:30) therefore, 
future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not 
required.  

F-16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
   
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
   
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

The remainder of our service contracts, which relate to contracts with third parties, are short-term in nature with a contract 
term of one year or less.  The Partnership has utilized an additional practical expedient in ASC 606, which exempts the Partnership 
from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of a 
contract that has an original expected duration of one year or less. 

(d)  Contract Balances 

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:89)(cid:82)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)

satisfied, at which point payment is unconditional.  Accordingly, the (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:3)(cid:85)(cid:76)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)
or liabilities under ASC 606.  At December (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:68)(cid:69)(cid:79)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:7)(cid:20)(cid:20)(cid:19)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
$115 million, respectively. 

(5)  Property and Equipment 

T(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:86)(cid:29) 

(in thousands) 
Land 
Gathering systems and facilities 
Fresh water permanent buried pipelines and equipment 
Wastewater treatment facility 
Fresh water surface pipelines and equipment 
Landfill 
Heavy trucks and equipment 
Above ground storage tanks 
Construction-in-progress(3) 

Total property and equipment 

Less accumulated depreciation 
Property and equipment, net 

Estimated 
useful lives 

n/a 
50 years(1)  
20 years  
30 years  
5 years  
n/a(2)  
5 years  
10 years  
n/a  

  $ 

$ 

December 31, 

2017 

 15,382 
 1,781,386  
 472,810   
 (cid:178)  
 46,139   
 (cid:178)  
 (cid:178)  
 4,301  
 654,904   
 2,974,922  
 (369,320) 
 2,605,602  

2018 

 18,649   
 2,175,500  
 523,488   
 300,064   
 62,683   
 60,950   
 4,831  
 4,824  
 306,759   
 3,457,748  
 (499,333)  
 2,958,415  

(1) 

In accordance with its policy, the Partnership evaluates the reasonableness of the estimated useful lives of its fixed assets and 
determined that the actual lives of the gathering systems and facilities were longer than the estimated useful lives used in 
calculating depreciation expense.  On October 1, 2018, the Partnership increased the useful lives of the gathering systems and 
facilities from 20 years to 50 years based on a change in the expected period that our systems and facilities will be used to support 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:71)(cid:72)(cid:83)(cid:85)(cid:72)(cid:70)(cid:76)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:69)(cid:92) 
$18 million, increased net income and comprehensive income by $18 million and increased basic and diluted net income per 
limited partner unit by $0.10.    

(2)  Amortization of landfill costs is recorded over the life of the landfill on a units-of-consumption basis. 
(3)  As of December 31, 2017, construction-in-progress included $355 million for the construction of the wastewater treatment facility 

and landfill, which was placed in service in 2018. 

The Partnership capitalized interest of $4 million, $12 million and $4 million for the years ended December 31, 2016, 2017 

and 2018, respectively for the construction of the wastewater treatment facility.   

Net operating expenses incurred during wastewater treatment facility commissioning were capitalized.  Due to delays in 

reaching contractual treatment capacity of the wastewater treatment facility, the Partnership has and continues to accrue for liquidated 
damages from the vendor.  At December 31, 2018, the Partnership had accrued $21 million for liquidated damages as a current asset 
and reduction in cost of the facility.   

The Partnership recorded impairment charges of $23 million and $6 million in the years ended December 31, 2017 and 2018, 

respectively.  The impairment charge for the year ended December 31, 2017 related to condensate gathering lines which Antero 

F-17 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
  
 
 
 
  
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Resources no longer uses.  During the year ended December 31, 2018, the impairment charge is due to the impairment of gathering 
assets acquired from Antero Resources at the time of its IPO related to well pads Antero Resources no longer has plans to drill and 
complete.  (cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)
the Partnership constructs after receiving notice from Antero Resources, and are subsequently delayed or cancelled, Antero Resources 
is required to repurchase the assets at 115% of the cost.  This resulted in a gain of $583 thousand during the year ended December 31, 
2018. 

(6)  Long-term Debt 

Long-term debt was as follows at December 31, 2017 and 2018: 

(in thousands) 
Credit Facility (a) 
5.375% senior notes due 2024 (b) 
Net unamortized debt issuance costs 

Total long-term debt 

(a)  Revolving Credit Facility 

December 31, 

  $ 

$ 

2017 

 555,000 
 650,000  
 (9,000)  
 1,196,000  

2018 

 990,000  
 650,000  
 (7,853)  
 1,632,147  

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:72)(cid:71)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:12)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:87)(cid:76)(cid:88)(cid:80)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:68)(cid:81)(cid:78)(cid:86)(cid:17)(cid:3)(cid:3)(cid:47)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)

commitments under the Credit facility are $2.0 billion. At December 31, 2017 and 2018, the Partnership had borrowings under the 
Credit Facility of $555 million and $990 million, respectively, with a weighted average interest rate of 2.81% and 3.75%, respectively.  
No letters of credit were outstanding at December 31, 2017 or 2018 under the Credit Facility.  The maturity date of the facility is 
October 26, 2022.  The facility includes fall away covenants and lower interest rates that are triggered if and when we are assigned an 
(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:74)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:69)(cid:92)(cid:3)(cid:72)(cid:76)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:17)(cid:3)(cid:3) 

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:81)(cid:82)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:73)(cid:68)(cid:88)(cid:79)(cid:87)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

Partnership is in pro forma compliance with the financial covenants under the Credit Facility, commences when the Partnership elects 
to give notice to the Administrative Agent that the Partnership has received at least one of either (i) a BBB- or better rating from 
(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:68)(cid:3)(cid:37)(cid:68)(cid:68)(cid:22)(cid:3)(cid:82)(cid:85)(cid:3)(cid:69)(cid:72)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:11)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-investment grade rating from the other rating agency 
is at least either Ba1 if (cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:37)(cid:37)(cid:14)(cid:3)(cid:76)(cid:73)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:53)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:180)(cid:12)(cid:12)(cid:17)(cid:3)(cid:36)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:70)(cid:68)(cid:81)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)
(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)    

During a period that is not an Investment Grade Period, the Credit Facility is ratably secured by mortgages on substantially 

(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:88)(cid:68)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:72)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:39)(cid:88)(cid:85)ing an 
Investment Grade Period, the liens securing the obligations thereunder shall be automatically released (subject to the provisions of the 
Credit Facility).  

The revolving credit facility contains certain covenants including restrictions on indebtedness, and requirements with respect 

to leverage and interest coverage ratios; provided, however, that during an Investment Grade Period, such covenants become less 
(cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:83)(cid:72)(cid:85)(cid:80)(cid:76)(cid:87)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)ty interests in 
accordance with the cash distribution policy adopted by the board of directors of our general partner in connection with the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:81)(cid:82)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:73)(cid:68)(cid:88)(cid:79)(cid:87)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:69)(cid:92)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:81)(cid:79)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)xtent 
permitted by our organizational documents.  The Partnership was in compliance with all of the financial covenants under the Credit 
Facility as of December 31, 2017 and 2018. 

Principal amounts borrowed are payable on the maturity date with such borrowings bearing interest that is payable quarterly 
or, in the case of Eurodollar Rate Loans, at the end of the applicable interest period if shorter than six months.  Interest is payable at a 
variable rate based on LIBOR or the base rate, determined by election at the time of borrowing.  Interest at the time of borrowing is 
determined wit(cid:75)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:81)-current leverage ratio 
(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:69)(cid:92)(cid:3)(cid:48)(cid:82)(cid:82)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:82)(cid:82)(cid:85)(cid:182)(cid:86)(cid:17)(cid:3) 

F-18 

 
 
 
 
 
 
 
 
 
 
     
  
 
 
 
   
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

During an Investment Grade Period, the applicable margin rates are reduced by 25 basis points.  Commitment fees on the unused 
portion of the revolving credit facility are due quarterly at rates ranging from 0.25% to 0.375% based on the leverage ratio, during a 
(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:51)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:19)(cid:17)(cid:20)(cid:26)(cid:24)(cid:8)(cid:3)(cid:87)(cid:82)(cid:3)(cid:19)(cid:17)(cid:22)(cid:26)(cid:24)(cid:8)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)ade 
Period. 

 (b)  5.375% Senior Notes Due 2024 

On September 13, 2016, the Partnership and its wholly-owned subsidiary, Finance Corp, as co-issuers, issued $650 million in 
(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:24)(cid:17)(cid:22)(cid:26)(cid:24)(cid:8)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:54)(cid:72)(cid:83)(cid:87)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:20)(cid:24)(cid:15)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:87)(cid:3)(cid:83)(cid:68)(cid:85)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:81)(cid:86)(cid:72)(cid:70)ured 
and effectively subordinated to the revolving credit facility to the extent of the value of the collateral securing the revolving credit 
facility.  The 2024 Notes are fully and unconditionally guaranteed on a joint and several senior unsecured basis by the Partn(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
wholly-owned subsidiaries (other than Finance Corp) and certain of its future restricted subsidiaries.  Interest on the 2024 Notes is 
payable on March 15 and September 15 of each year.  The Partnership may redeem all or part of the 2024 Notes at any time on or after 
September 15, 2019 at redemption prices ranging from 104.031% on or after September 15, 2019 or 100.00% on or after 
September 15, 2022.  In addition, prior to September 15, 2019, the Partnership may redeem up to 35% of the aggregate principal 
amount of the 2024 Notes with an amount of cash not greater than the net cash proceeds of certain equity offerings, if certain 
conditions are met, at a redemption price of 105.375% of the principal amount of the 2024 Notes, plus accrued and unpaid interest.  At 
any time prior to September 15, 2019, the Partnership may also redeem the 2024 Notes, in whole or in part, at a price equal to 100% of 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:3)(cid:179)(cid:80)(cid:68)(cid:78)(cid:72)-(cid:90)(cid:75)(cid:82)(cid:79)(cid:72)(cid:180)(cid:3)(cid:83)(cid:85)(cid:72)(cid:80)(cid:76)(cid:88)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:70)(cid:85)(cid:88)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:88)(cid:81)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:17)(cid:3)(cid:3)(cid:44)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:74)(cid:82)(cid:72)(cid:86)(cid:3)(cid:68)(cid:3)
change of control, the holders of the 2024 Notes will have the right to require the Partnership to repurchase all or a portion of the notes 
at a price equal to 101% of the principal amount of the 2024 Notes, plus accrued and unpaid interest. 

(7)  Accrued Liabilities 

Accrued liabilities as of December 31, 2017 and 2018 consisted of the following items: 

(in thousands) 
Capital expenditures 
Operating expenses 
Interest expense 
Other 

Total accrued liabilities 

(8)  Asset Retirement Obligations 

December 31,  

  $ 

  $ 

2017 

 63,286  
 29,905  
 10,508  
 2,307  
 106,006  

2018 

 26,354  
 32,818  
 10,922  
 2,027  
 72,121  

The following is a reconciliation of our asset retirement obligations for the period shown below (in thousands): 

Asset retirement obligations(cid:178)December 31, 2017 
Obligations incurred 
Accretion expense 
Asset retirement obligations(cid:178)December 31, 2018 

$ 

$ 

 (cid:178) 
 7,473 
 135   
 7,608 

F-19 

 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(9)  Equity-Based Compensation 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)-based compensation costs allocated to it by Antero 

Resources for (cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term incentive plan and the Midstream LTIP.  Equity-based 
compensation expense allocated to the Partnership was $26 million, $27 million and $21 million for the years ended December 31, 
2016, 2017 and 2018, respectively.  These expenses were allocated to the Partnership based on its proportionate share of Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:79)(cid:68)(cid:69)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:88)(cid:81)(cid:68)(cid:80)(cid:82)(cid:85)(cid:87)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:25)(cid:19)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)
related to its various equity-based compensation plans, which includes the Midstream LTIP.  A portion of this will be allocated to the 
Partnership as it is amortized over the remaining service period of the related awards.  The Partnership does not reimburse Antero 
Resources for noncash equity compensation allocated to it for awards issued under the Antero Resources long-term incentive plan or 
the Midstream LTIP. 

Midstream LTIP 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)personnel who 

(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)
non-employee directors of the general partner and certain officers, employees and consultants of the general partner and its affiliates 
are eligible to receive awards representing limited partner interests in the Partnership.  An aggregate of 10,000,000 common units may 
be delivered pursuant to awards under the Midstream LTIP, subject to customary adjustments.  A total of 7,932,261 common units are 
available for future grant under the Midstream LTIP as of December 31, 2018.  Restricted units and phantom units granted under the 
Midstream LTIP vest subject to the satisfaction of service requirements, upon the completion of which common units in the 
Partnership are delivered to the holder of the restricted units or phantom units.  Phantom units also contain distribution equivalent 
(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:68)(cid:87)(cid:70)(cid:75)(cid:3)(cid:88)(cid:83)(cid:180)(cid:3)(cid:83)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:72)(cid:84)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)on unit distributions paid 
during the vesting period of the phantom unit award.  Compensation related to each restricted unit and phantom unit award is 
recognized on a straight-line basis over the requisite service period of the entire award.  The grant date fair values of these awards are 
(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)as if they 
are distributed by the Partnership to Antero Resources.  Antero Resources recognizes compensation expense for the units awarded and 
a portion of that expense is allocated to the Partnership.  Antero Resources allocates equity-based compensation expense to the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:79)(cid:68)(cid:69)(cid:82)(cid:85)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)-based 
compensation expense is included in general and administrative expenses, and recorded as a credit to the applicable classes of 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:17) 

A summary of restricted unit and phantom unit awards activity during the year ended December 31, 2018 is as follows:  

Total awarded and unvested(cid:178)December 31, 2017 
Granted 
Vested 
Forfeited 
Total awarded and unvested(cid:178)December 31, 2018 

Aggregate 

  Weighted  
  Average   
  grant date    intrinsic value  
     fair value     (in thousands)  
 30,288  

  Number of 

units 

 1,042,963   $  28.69   $ 
 260,847   $  25.84  
 (577,566)   $  28.63  
 (143,244)   $  28.08  
 583,000   $  27.63   $ 

 12,470  

(cid:44)(cid:81)(cid:87)(cid:85)(cid:76)(cid:81)(cid:86)(cid:76)(cid:70)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)Midstream LTIP 

unamortized expense of $12 million at December 31, 2018 is expected to be recognized over a weighted average period of 
(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:21)(cid:17)(cid:24)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72) allocated to it as it is recognized.  The Partnership paid $5.5 
million in minimum statutory tax withholdings for restricted and phantom units that vested during 2018, which is included in the 
(cid:179)(cid:44)(cid:86)(cid:86)(cid:88)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:72)(cid:86)(cid:180)(cid:3)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:76)(cid:87)(cid:72)(cid:80)(cid:3)(cid:76)(cid:81)(cid:3)
the Consolidated (cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:17) 

F-20 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
  
 
 
  
 
 
  
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(10)  Partnership Equity and Distributions 

Minimum Quarterly Distribution 

The partnership agreement provides for a minimum quarterly distribution of $0.17 per unit for each quarter, or $0.68 per unit 

on an annualized basis.  

(cid:44)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:3)(cid:7)(cid:19)(cid:17)(cid:20)(cid:28)(cid:24)(cid:24)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)to the 
following percentage allocations: 

Total Quarterly Distribution 
Target Amount 
above $0.1955 up to $0.2125 
above $0.2125 up to $0.2550 
above $0.2550 

General Partner Interest 

Marginal Percentage 
Interest in Distributions 

  Unitholders  

Holder of IDRs  

 85 %   
 75 %   
 50 %   

 15 %   
 25 %   
 50 %   

The general partner owns a non-economic general partner interest in the Partnership, which does not entitle it to receive cash 
distributions.  However, the general partner is under common control with the holder of the IDRs and may in the future own common 
units or other equity interests in the Partnership and will be entitled to receive distributions on any such interests.  

Upon payment of the February 8, 2017 distribution to unitholders, the requirements for the conversion of all subordinated 

units were satisfied under our partnership agreement.  As a result, effective February 9, 2017, the 75,940,957 subordinated units 
owned by Antero Resources were converted into common units on a one-for-one basis and participate on terms equal with all other 
common units in distributions of available cash.  The conversion did not impact the amount of the cash distributions paid by the 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:69)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:3)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:76)(cid:87)(cid:72)(cid:80)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)he 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:17) 

F-21 

 
 
 
 
 
 
 
 
  
 
 
     
  
  
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Cash Distributions 

The board of directors of the general partner declared a cash distribution of $0.47 per unit for the quarter ended December 31, 

2018.  The distribution was paid on February 13, 2019 to unitholders of record as of February 1, 2019. 

The following table details the amount of quarterly distributions the Partnership paid for each of its partnership interests, with 

respect to the quarter indicated (in thousands, except per unit data): 

      Distribution Date 

Common 
unitholders 

      Holder of IDRs       

Total 

Distributions 
per unit 

Distributions 

Quarter   
and Year       Record Date 
Q4 2016    February 1, 2017 

* 

  April 21, 2017 

Q1 2017    May 3, 2017 
Q2 2017    August 3, 2017 
Q3 2017    November 1, 2017 

  February 8, 2017 
  April 30, 2017 
  May 10, 2017 
  August 16, 2017 
  November 16, 2017 
  November 12, 2017    November 17, 2017 
  Total 2017 

* 

Q4 2017    February 1, 2018 

Q1 2018    May 3, 2018 
  July 15, 2018 

* 

Q2 2018    August 2, 2018 
Q3 2018    November 2, 2018 

  April 15, 2018 

  February 13, 2018 
  April 20, 2018 
  May 18, 2018 
  July 31, 2018 
  August 17, 2018 
  November 16, 2018 
  November 12, 2018    November 19, 2018 
  Total 2018 

* 

* 

$ 

$ 

$ 

$ 

 50,090   
 75   
 55,753   
 59,695   
 63,454   
 1,392  
 230,459  

 68,231   
 263   
 72,943   
 21   
 77,624   
 82,303   
 1,881  
 303,266  

 7,543  
 (cid:178)  
 11,553   
 15,328   
 19,067   
 (cid:178)  
 53,491   

 23,772   
 (cid:178)  
 28,461   
 (cid:178)  
 33,138   
 37,815   
 (cid:178)  
 123,186   

$ 

$ 

 57,633   
 75   
 67,306   
 75,023   
 82,521   
 1,392   
 283,950   

 92,003   
 263   
 101,404   
 21   
 110,762   
 120,118   
 1,881   
 426,452   

0.280   
* 
0.300   
0.320   
0.340   
* 

0.365   
* 
0.390   
* 
0.415   
0.440   
* 

*  Distribution equivalent rights on limited partner common units that vested under the Midstream LTIP. 

(11)  Net Income Per Limited Partner Unit 

The Partnership computes earnings per unit using the two-class method for master limited partnerships.  The classes of 
participating securities include common units and the holders of the IDRs.  Under the two-class method, earnings per unit is calculated 
as if all of the earnings for the period were distributed under the terms of the Partnership agreement, regardless of whether the general 
partner has discretion over the amount of distributions to be made in any particular period, whether those earnings would actually be 
distributed during a particular period from an economic or practical perspective, or whether the general partner has other legal or 
contractual limitations on its ability to pay distributions that would prevent it from distributing all of the earnings for a particular 
period.   

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:87)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)

ownership percentages, and when applicable, giving effect to incentive distributions paid to the general partner.  Basic and diluted net 
(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:15)(cid:3)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)ntive 
distributions, by the weighted average number of outstanding limited partner units during the period. 

Basic earnings per unit is computed by dividing net earnings attributable to unitholders by the weighted average number of 

units outstanding during each period.  Diluted net income per limited partner unit reflects the potential dilution that could occur if 
agreements to issue common units, such as awards under long-term incentive plans, were exercised, settled or converted into common 
units.  When it is determined that potential common units resulting from an award should be included in the diluted net income per 
limited partner unit calculation, the impact is reflected by applying the treasury stock method.  Earnings per common unit assuming 
dilution for the year ended December 31, 2018 was calculated based on the diluted weighted average number of units outstanding of 
187,397,524, including 349,339 dilutive units attributable to non-vested restricted unit and phantom unit awards.  For the year ended 

F-22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

December 31, 2018, there were no non-vested phantom unit and restricted unit awards that were anti-dilutive and therefore excluded 
from the calculation of diluted earnings per unit. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3)(in thousands, except per unit 

data):  

Net income 
Less net income attributable to incentive distribution rights 

Limited partner interest in net income 

Net income per limited partner unit(cid:177)basic 

Net income per limited partner unit(cid:177)diluted 

Weighted average limited partner units outstanding(cid:177)

basic 

Weighted average limited partner units outstanding(cid:177)

diluted 

(12)  Sale of Common Units 

2016 

Year Ended December 31, 
2017 

 236,703  
 (16,944)     
 219,759 

 307,315  
 (69,720)    
 237,595 

 1.24 

 1.24 

 1.28 

 1.28  

$ 

  $ 

 $ 

 $ 

2018 

 585,944  
 (142,906)   
 443,038 

 2.37 

 2.36 

 176,647 

 185,630 

 187,048  

 176,801 

 186,083 

 187,398 

During the (cid:87)(cid:75)(cid:76)(cid:85)(cid:71)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:39)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:39)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:86)(cid:72)(cid:79)(cid:79)(cid:15)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:69)(cid:85)(cid:82)(cid:78)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:68)(cid:79)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81) units 
representing limited partner interests having an aggregate offering price of up to $250 million.  The program is registered with the 
SEC on an effective registration statement on Form S-(cid:22)(cid:17)(cid:3)(cid:3)(cid:54)(cid:68)(cid:79)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:69)(cid:92)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:69)(cid:85)(cid:82)(cid:78)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)
transactions on the New York Stock Exchange, at market prices, in block transactions, or as otherwise agreed to between the 
Partnership and the sales agents.  Proceeds are expected to be used for general partnership purposes, which may include repayment of 
indebtedness and funding working capital or capital expenditures.  The Partnership is under no obligation to offer and sell common 
units under the Distribution Agreement. 

During the years ended December 31, 2016 and 2017, the Partnership issued and sold 2,391,595 and 777,262 common units 

under the Distribution Agreement, respectively.  For the years ended December 31, 2016 and 2017, the sale resulted in net proceeds of 
$65 million and $26 million, respectively.  The Partnership did not issue or sell any common units under the Distribution Agreement 
during the year ended December 31, 2018.  As of December 31, 2018, additional common units under the Distribution Agreement up 
to an aggregate sales price of $157 million were available for issuance. 

On February 10, 2017, the Partnership issued 6,900,000 common units, including common units issued pursuant to the 

(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:90)(cid:85)(cid:76)(cid:87)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:72)(cid:71)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:21)(cid:21)(cid:22)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:50)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)
The Partnership used the proceeds from the Offering to repay outstanding borrowings under its Credit Facility incurred to fund the 
investment in the Joint Venture, and for general partnership purposes. 

(13)  Fair Value Measurement 

In connection with the Water Acquisition, the Partnership agreed to pay Antero Resources (a) $125 million in cash if the 

Partnership delivers 176,295,000 barrels or more of fresh water during the period between January 1, 2017 and December 31, 2019 
and (b) an additional $125 million in cash if the Partnership delivers 219,200,000 barrels or more of fresh water during the period 
between January 1, 2018 and December 31, 2020.  This contingent consideration liability is valued based on Level 3 inputs related to 
expected average volumes and weighted average cost of capital.  

F-23 

 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
     
 
     
  
 
 
 
   
   
   
 
 
   
     
   
   
  
  
 
 
  
 
  
  
   
  
 
 
 
 
 
  
 
  
   
  
  
  
 
  
 
  
 
  
   
  
  
  
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

The following table provides a reconciliation of changes in Level 3 financial liabilities measured at fair value on a recurring 

basis for the periods shown below (in thousands): 

Contingent acquisition consideration(cid:178)December 31, 2016 
Accretion and change in fair value of contingent acquisition consideration 
Contingent acquisition consideration(cid:178)December 31, 2017 
Accretion and change in fair value of contingent acquisition consideration 
Contingent acquisition consideration(cid:178)December 31, 2018 

$ 

$ 

 194,538   
 13,476   
 208,014    
 (93,019)  
 114,995 

The Partnership accounts for contingent consideration in accordance with applicable accounting guidance pertaining to 

business combinations.  The Partnership is contractually obligated to pay Antero Resources contingent consideration in connection 
with the Water Acquisition, and therefore recorded this contingent consideration liability at the time of the Water Acquisition.  The 
Partnership updates its assumptions each reporting period based on new developments and adjusts such amounts to fair value based on 
revised assumptions, if applicable, until such consideration is satisfied through payment upon achievement of the specified objectives 
or it is eliminated upon failure to achieve the specified objectives.  

As of December 31, 2018, the Partnership expects to pay the entire amount of the contingent consideration for the 
176,295,000 barrels or more of fresh water delivered during the period between January 1, 2017 and December 31, 2019, but not for 
the 219,200,000 barrels or more of fresh water during the period between January 1, 2018 and December 31, 2020 as a result in the 
(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:79)(cid:68)(cid:87)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:69)(cid:88)(cid:71)(cid:74)(cid:72)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term outlook.  As of December 31, 2017, based on previous 
budgets and forecasts, both contingent consideration payments were expected to be made.  Accordingly, the fair value of the liability 
for contingent acquisition consideration was reduced by $106 million in 2018.  The fair value measurement is based on significant 
inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy.  The fair value of the 
contingent consideration liability associated with future milestone payments was based on the risk adjusted present value of the 
contingent consideration payout. 

The carrying values of accounts receivable and accounts payable at December 31, 2017 and 2018 approximated fair value 
because of their short-term nature.  The carrying value of the amounts under the revolving credit facility at December 31, 2017 and 
2018 approximated fair value because the variable interest rates are reflective of current market conditions. 

(cid:37)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:47)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:21)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:68)(cid:3)(cid:76)(cid:81)(cid:83)(cid:88)(cid:87)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:21)(cid:23)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:25)(cid:19)(cid:27)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:87)(cid:3)

December 31, 2018. 

(14)  Investments in Unconsolidated Affiliates 

The Partnership has a 15% equity interest in Stonewall, which operates a 67-mile pipeline on which Antero is an anchor 

shipper. 

On February 6, 2017, the Partnership formed the Joint Venture to develop processing and fractionation assets in Appalachia 

with MarkWest, a wholly owned subsidiary of MPLX.  The Partnership and MarkWest each own a 50% equity interest in the Joint 
Venture and MarkWest operates the Joint Venture assets, which consist of processing plants in West Virginia and a one-third interest 
in a MarkWest fractionator in Ohio. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3)(cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:17)(cid:3)(cid:3)(cid:58)(cid:75)(cid:72)(cid:81)(cid:3)
the Partnership records its proportionate share of net income, it increases equity income in the consolidated statements of operations 
and comprehensive income and the carrying value of that investment on its balance sheet.  When distributions on the Partnersh(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
proportionate share of net income are received, they are recorded as reductions to the carrying value of the investment on the balance 
sheet and are classified as cash inflows from operating activities in accordance with the nature of the distribution approach under ASU 
No. 2016-15.  The Partnership uses the equity method of accounting to account for its investments in Stonewall and the Joint Venture 
(cid:69)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:76)(cid:87)(cid:3)(cid:72)(cid:91)(cid:72)(cid:85)(cid:70)(cid:76)(cid:86)(cid:72)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:73)(cid:79)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3)(cid:69)(cid:88)(cid:87)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:77)(cid:88)(cid:71)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:89)el of 
influence over its equity investments includes considering key factors such as its ownership interest, representation on the board of 
directors and participation in policy-making decisions of Stonewall and the Joint Venture. 

F-24 

 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

The following table is a reconciliation of our investments in these unconsolidated affiliates:  

(in thousands) 
Balance at December 31, 2016 

  $ 

Initial investment 
Additional investments 
Equity in net income of unconsolidated affiliates     
Distributions from unconsolidated affiliates 

Balance at December 31, 2017 
Additional investments 
Equity in net income of unconsolidated affiliates     
Distributions from unconsolidated affiliates 

Balance at December 31, 2018 

  $ 

Stonewall (1) 

MarkWest 
Joint Venture 

  Total Investment   
  in Unconsolidated   
Affiliates 

 68,299 
 (cid:178)  
 (cid:178) 
 10,304 
 (11,475)
 67,128   

 (cid:178) 
 10,740 
 (9,765)
 68,103   

 (cid:178)    

 153,770   
 81,234   
 9,890   
 (8,720)  
 236,174   
 136,475   
 29,540   
 (36,650)  
 365,539   

 68,299    
 153,770   
 81,234   
 20,194   
 (20,195)  
 303,302   
 136,475   
 40,280   
 (46,415)  
 433,642   

(1)  Distributions are net of operating and capital requirements retained by Stonewall. 

(b)  Summarized Financial Information of Unconsolidated Affiliates 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:68)(cid:69)(cid:79)(cid:72)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:88)(cid:81)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:17)  

Summarized financial information for Stonewall is presented from May 26, 2016, the effective date the Partnership exercised its 
option to acquire an equity interest in the Stonewall Gathering Pipeline.  Summarized financial information for the Joint Venture is 
presented from January 1, 2017, the effective date of the Joint Venture formation.   

Combined Balance Sheets 

(in thousands) 
Current assets 
Noncurrent assets 
Total assets 

Current liabilities 
Noncurrent liabilities  
Noncontrolling interest 
Partners' capital 

Total liabilities and partners' capital 

Statements of Combined Operations 

December 31, 

2017 

2018 

$ 

$ 

$ 

$ 

 62,955 
 1,052,760  
 1,115,715  

 39,964  
 219  
 179,736  
 895,796  
 1,115,715  

 90,481 
 1,327,947  
1,418,428  

 76,605  
 6,986  
 172,865  
 1,161,972  
 1,418,428  

(in thousands) 
Revenues 
Operating expenses 
Income from operations 
Net income attributable to the equity method investments 

   $ 

Year ended December 31, 

2016 

2017 

2018 

 51,428 
 12,176  
 39,252  
 3,227  

 119,371 
 40,059  
 79,312  
 88,717  

 189,222    
 75,250  
 113,972  
 131,626  

F-25 

 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(15) Reporting Segments 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:85)(cid:74)(cid:68)(cid:81)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:72)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29)(cid:3)(cid:11)(cid:20)(cid:12) gathering 

and processing and (2) water handling and treatment. 

Gathering and Processing 

The gathering and processing segment includes a network of gathering pipelines and compressor stations that collect and 
(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:55)he gathering and processing segment also includes 
income from processing and fractionation plants through our equity interest in the Joint Venture with MarkWest. 

Water Handling and Treatment 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:86)(cid:72)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)wo independent systems that deliver fresh water from 

sources including the Ohio River, local reservoirs as well as several regional waterways.  The water handling and treatment segment 
also includes a wastewater treatment facility that was placed in service in 2018, as well as other fluid handling services, which 
includes high rate transfer, wastewater transportation and disposal.  See Note 5(cid:178)Property and Equipment. 

These segments are monitored separately by management for performance and are consistent with internal financial 
reporting.  These segments have been identified based on the differing products and services, regulatory environment and the expertise 
(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)s segments based on operating 
income.  Interest expense is primarily managed and evaluated on a consolidated basis. 

F-26 

ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Gathering and 
Processing 

Water 
Handling and 
Treatment 

Consolidated 
Total 

Year ended December 31, 2016 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)third-party 

Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based compensation) 
Equity-based compensation 
Depreciation 
Accretion and change in fair value of contingent acquisition consideration 

Total expenses 
Operating income 

Equity in earnings of unconsolidated affiliates 
Total assets 
Additions to property and equipment 

Year ended December 31, 2017 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based compensation) 
Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition consideration 

Total expenses 
Operating income 

Equity in earnings of unconsolidated affiliates 
Total assets 
Additions to property and equipment 

Year ended December 31, 2018 

Revenues: 

Revenue(cid:177)Antero Resources 
Revenue(cid:177)third-party 
Gain on sale of assets(cid:177)Antero Resources 

Total revenues 

Operating expenses: 
Direct operating 
General and administrative (excluding equity-based compensation) 
Equity-based compensation 
Impairment of property and equipment 
Depreciation 
Accretion and change in fair value of contingent acquisition consideration 
Accretion of asset retirement obligations 

Total expenses 
Operating income 

Equity in earnings of unconsolidated affiliates 
Total assets 
Additions to property and equipment 

$ 

$ 

$ 
$ 
$ 

$ 

$ 

$ 
$ 
$ 

$ 

$ 

$ 
$ 
$ 

 303,250   
 835   
 3,859   
 307,944   

 27,289   
 20,118   
 19,714   
 69,962   
 (cid:178)   
 137,083   
 170,861   

 485   
 1,734,208   
 228,100   

 396,202   
 264   
 396,466   

 39,251   
 20,607   
 19,730   
 23,431   
 86,372   
 (cid:178)   
 189,391   
 207,075   

 20,194   
 2,237,913   
 346,217   

 520,566   
 (cid:178)   
 583   
 521,149   

 49,256   
 30,091   
 16,518   
 5,771   
 83,250   
 (cid:178)   
 (cid:178)   
 184,886   
 336,263   

 40,280   
 2,610,300   
 446,270   

F-27 

 282,267   
 (cid:178)   
 (cid:178)   
 282,267   

 134,298   
 7,996   
 6,335   
 29,899   
 16,489   
 195,017   
 87,250   

 (cid:178)   
 615,687   
 188,220   

 376,031   
 (cid:178)   
 376,031   

 193,287   
 10,922   
 7,553   
 (cid:178)   
 33,190   
 13,476   
 258,428   
 117,603   

 (cid:178)   
 804,296   
 195,162   

 506,449   
 924   
 (cid:178)   
 507,373   

 267,167   
 10,465   
 4,555   
 (cid:178)   
 46,763   
 (93,019)  
 135   
 236,066   
 271,307   

 (cid:178)   
 936,117   
 88,674   

 585,517   
 835   
 3,859   
 590,211   

 161,587   
 28,114   
 26,049   
 99,861   
 16,489   
 332,100   
 258,111   

 485   
 2,349,895   
 416,320   

 772,233   
 264   
 772,497   

 232,538   
 31,529   
 27,283   
 23,431   
 119,562   
 13,476   
 447,819   
 324,678   

 20,194   
 3,042,209   
 541,379   

 1,027,015   
 924   
 583   
 1,028,522   

 316,423   
 40,556   
 21,073   
 5,771   
 130,013   
 (93,019)  
 135   
 420,952   
 607,570   

 40,280   
 3,546,417   
 534,944   

  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
 
 
  
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
  
 
  
 
  
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM PARTNERS LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(16) Quarterly Financial Information (Unaudited) 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:88)(cid:81)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)

in the table below: 

(in thousands, except per unit data) 
Year ended December 31, 2017: 
Total operating revenues 
Total operating expenses(1) 
Operating income 
Net income 
Less: general partner's interest in net income 
Net income attributable to limited partner units 

Net income per limited partner unit(cid:177)basic and diluted  

Year ended December 31, 2018: 
Total operating revenues 
Total operating expenses(2) 
Operating income 
Net income 
Less: general partner's interest in net income 
Net income attributable to limited partner units 

Net income per limited partner unit(cid:177)basic  

Net income per limited partner unit(cid:177)diluted 

$ 

$ 

$ 

$ 

$ 

$ 

$ 

First 
quarter 

Second 
quarter 

Third 
quarter 

Fourth 
quarter 

 174,770  
 93,073  
 81,697  
 75,092  
 (11,553)  
 63,539  

 193,766  
 101,199  
 92,567  
 87,175  
 (15,328)  
 71,847  

 193,629  
 110,458  
 83,171  
 80,893  
 (19,067)  
 61,826  

 210,332  
 143,089  
 67,243  
 64,155  
 (23,772)  
 40,383  

0.35  

0.39  

0.33  

0.22  

 229,591  
 118,051  
 111,540  
 108,105  
 (28,453)  
 79,652  

0.43  

0.43  

 250,975  
 136,145  
 114,830  
 109,466  
 (33,145)  
 76,321  

0.41  

0.41  

 266,205  
 140,159  
 126,046  
 119,764  
 (37,816)  
 81,948  

0.44  

0.44  

 281,751  
 26,597  
 255,154  
 248,609  
 (43,492)  
 205,117  

 1.10  

 1.09  

(1)  Operating expenses in the fourth quarter of 2017 include $23 million of impairment on certain condensate gathering lines that 

Antero Resources no longer uses. 

(2)  Operating expenses in the fourth quarter of 2018 reflects a $106 million reduction in the fair value of contingent acquisition 

consideration.  

F-28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
     
  
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
This(cid:3)Page(cid:3)Intentionally(cid:3)Left(cid:3)Blank 

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549 

FORM 10-K 

(cid:95)  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 

OF 1934 

(cid:134)  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE 

ACT OF 1934 

For the fiscal year ended December 31, 2018 
or 

Commission File No. 001-38075

ANTERO MIDSTREAM GP LP 
(Exact name of registrant as specified in its charter) 

Delaware 
(State or other jurisdiction of 
incorporation or organization) 
1615 Wynkoop Street 
Denver Colorado 
(Address of principal executive offices) 

61-1748605 
(IRS Employer 
Identification No.) 

80202 
(Zip Code) 

(303) 357-7310 
(cid:11)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:87)(cid:72)(cid:79)(cid:72)(cid:83)(cid:75)(cid:82)(cid:81)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)ber, including area code) 

Securities Registered Pursuant to Section 12(b) of the Act: 

Title of Each Class 
Common Shares Representing Limited Partner Interests 

Securities Registered Pursuant to Section 12(g) of the Act: None. 

Name of Each Exchange on which Registered 
New York Stock Exchange 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. (cid:95) Yes  (cid:134) No 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. (cid:134) Yes (cid:95) No 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange 
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject 
to such filing requirements for the past 90 days. (cid:95) Yes  (cid:134) No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to 
Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to 
submit such files). (cid:95) Yes  (cid:134) No 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained 

(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:79)(cid:72)(cid:71)(cid:74)(cid:72)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:91)(cid:92)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)rporated by reference in 
Part III of this Form 10-K or any amendment to this Form 10-K. (cid:95) 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting 

company, or an emerging (cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:179)(cid:79)(cid:68)(cid:85)(cid:74)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:72)(cid:79)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:68)(cid:70)(cid:70)(cid:72)(cid:79)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:86)(cid:80)(cid:68)(cid:79)(cid:79)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:179)(cid:72)(cid:80)(cid:72)(cid:85)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:53)(cid:88)(cid:79)(cid:72) 12b-2 of the Exchange Act. 

Large accelerated filer  (cid:95) 
Smaller reporting company (cid:134) 

Accelerated filer  (cid:134) 
Emerging growth company  (cid:134) 

Non-accelerated filer  (cid:134) 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying 

with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   (cid:134) 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). (cid:134) Yes  (cid:95) No 
(cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:81)(cid:82)(cid:81)-affiliates of the registrant 
as of June (cid:21)(cid:28)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:86)(cid:87)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:71)(cid:68)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:80)(cid:82)(cid:86)(cid:87)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:81)(cid:87)(cid:79)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:71)(cid:3)(cid:86)(cid:72)(cid:70)(cid:82)(cid:81)(cid:71)(cid:3)(cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:20)(cid:17)(cid:23)(cid:3)(cid:69)(cid:76)(cid:79)(cid:79)ion based on 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:85)eported on the New York Stock Exchange 
of $18.86.  

As of February 8, 2019, there were 186,235,845 common shares representing limited partner interests outstanding. 
Documents incorporated by reference: Antero Midstream Partners LP Annual Report on Form 10-K for the year ended December 31, 2018 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
EXPLANATORY NOTE 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:82)(cid:85)(cid:76)(cid:74)(cid:76)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:180)(cid:12)(cid:3)
(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:87)(cid:75)(cid:68)t is 
publicly  traded  on  the  New  York  Stock  Exchange  (NYSE:  AM).    On  May 4,  2017,  ARMM  converted  from  a  Delaware  limited 
liability company to a Delaware limited partnership and changed its name to Antero Midstream GP LP in connection with our initial 
public offer(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:56)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:91)(cid:87)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:90)(cid:76)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:90)(cid:72)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:180)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:29)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:48)(cid:68)(cid:92) 4, 
2017, ARMM, and (ii) beginning on May 4, 2017, AMGP.  We are traded on the New York Stock Exchange (NYSE: AMGP).  We 
own 100% of (cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-economic general 
partner interest in  Antero Midstream, and  we own all of  the Series (cid:36)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:15)(cid:3)
which owns the incen(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:17)(cid:3)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:88)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)
IPO,  net  of  any  related  liabilities  including  income  taxes  through  that  date  and  expenses  of  the  IPO,  were  distributed  to  Antero 
Resources Invest(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:53)(cid:48)(cid:48)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:51)(cid:50)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)
on October 31, 2017. 

 
 
TABLE OF CONTENTS 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 
PART I  

Items 1 and 2.   Business and Properties 
Item 1A.  
Item 1B.  
Item 3. 
Item 4.  
PART II 
Item 5. 

Risk Factors  
Unresolved Staff Comments  
Legal Proceedings  
Mine Safety Disclosures  

Item 6. 
Item 7. 
Item 7A.  
Item 8. 
Item 9. 
Item 9A.  
Item 9B.  

PART III 
Item 10. 
Item 11. 
Item 12. 
Item 13. 
Item 14. 
PART IV 
Item 15. 

(cid:48)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) Related Stockholder Matters and Issuer Purchases of Equity 
Securities  
Selected Financial Data  
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)Analysis of Financial Condition and Results of Operations  
Quantitative and Qualitative Disclosures About Market Risk  
Financial Statements and Supplementary Data  
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure  
Controls and Procedures  
Other Information  

Directors, Executive Officers, and Corporate Governance  
Executive Compensation  
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters  
Certain Relationships and Related Transactions and Director Independence  
Principal Accountant Fees and Services  

Exhibits and Financial Statement Schedules  

Page 

5 
5 
7 
20 
20 
20 
20 

20 
20 
22 
28 
28 
28 
29 
30 
31 
31 
37 
63 
66 
76 
77 
77 

 
 
 
 
 
 
 
 
 
 
 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS 

Some of the information in this report may contain forward-looking statements.  Forward-looking statements give our current 
expectations, co(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:72)(cid:70)(cid:68)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:82)(cid:85)(cid:71)(cid:86)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:80)(cid:68)(cid:92)(cid:15)(cid:180)(cid:3)
(cid:179)(cid:68)(cid:86)(cid:86)(cid:88)(cid:80)(cid:72)(cid:15)(cid:180)(cid:3) (cid:179)(cid:73)(cid:82)(cid:85)(cid:72)(cid:70)(cid:68)(cid:86)(cid:87)(cid:15)(cid:180)(cid:3) (cid:179)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:180)(cid:3) (cid:179)(cid:83)(cid:85)(cid:72)(cid:71)(cid:76)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3) (cid:179)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:72)(cid:74)(cid:92)(cid:15)(cid:180)(cid:3) (cid:179)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3) (cid:179)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:15)(cid:180)(cid:3) (cid:179)(cid:83)(cid:79)(cid:68)(cid:81)(cid:15)(cid:180)(cid:3) (cid:179)(cid:72)(cid:86)(cid:87)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:15)(cid:180)(cid:3) (cid:179)(cid:68)(cid:81)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:72)(cid:15)(cid:180)(cid:3) (cid:179)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:15)(cid:180)(cid:3) (cid:179)(cid:83)(cid:85)(cid:82)(cid:77)(cid:72)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3)
(cid:179)(cid:69)(cid:88)(cid:71)(cid:74)(cid:72)(cid:87)(cid:15)(cid:180)(cid:3)(cid:179)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:15)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:73)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)-looking statements.  They can be affected by 
assumptions used or by known or unknown risks or uncertainties.  Consequently, no forward-looking statements can be guaranteed 
and actual results may vary materially.  When considering these forward-looking statements, you should keep in mind the risk factors 
and other cautionary statements in this Annual Report on Form 10-K.  You are cautioned not to place undue reliance on any forward-
looking statements.  You should also understand that it is not possible to predict or identify all such factors and should not consider the 
following list to be a complete statement of all potential risks and uncertainties.  We own the general partner of Antero Midstream 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3) (cid:47)(cid:51)(cid:3) (cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3) (cid:36)(cid:48)(cid:12)(cid:3) (cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:79)(cid:79)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:85)(cid:76)(cid:74)(cid:75)(cid:87)s 
(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3) (cid:80)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:24)(cid:21)(cid:17)(cid:27)(cid:8)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)ro  Resources Corporation 
(cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3)(cid:36)(cid:53)(cid:12)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:76)(cid:80)(cid:68)(cid:85)(cid:76)(cid:79)(cid:92)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)the 
(cid:36)(cid:83)(cid:83)(cid:68)(cid:79)(cid:68)(cid:70)(cid:75)(cid:76)(cid:68)(cid:81)(cid:3)(cid:37)(cid:68)(cid:86)(cid:76)(cid:81)(cid:182)(cid:86)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:56)(cid:87)(cid:76)(cid:70)(cid:68)(cid:3)(cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3)(cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:39)Rs are our sole source of 
revenues, all potential risks and uncertainties that affect the results of operations, financial condition, or forecasts of future events of 
both Antero Resources and Antero Midstream will also affect us.  Factors that could cause our actual results to differ materially from 
the results contemplated by such forward-looking statements include: 

(cid:120) 

our expected receipt of, and the amounts of, distributions from Antero Midstream and IDR LLC in respect of the IDRs; 

(cid:120)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)ed production and ability to execute its drilling and development plan; 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:72)(cid:74)(cid:76)(cid:72)(cid:86)(cid:30) 

the  possibility  that  the  proposed  simplification  and  related  transactions  described  elsewhere  in  this  Annual  Report  on 
Form 10-K (the (cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:88)(cid:80)(cid:80)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:79)(cid:92)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:87)(cid:3)(cid:68)(cid:79)(cid:79)(cid:30) 

the  diversion  of  management  in  connection  with  the  Transactions  and  the  ability  of  the  resulting  entity  of  the 
Transactions to realize the anticipated benefits of the Transactions; 

the  impact  of  increased  levels  and  costs  of  indebtedness  used  to  fund  the  Transactions  or  the  cash  portion  of  the 
consideration being paid in connection therewith, and increased cost of existing indebtedness due to the actions taken to 
consummate the Transactions; 

(cid:120)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:87)(cid:82)(cid:3) (cid:82)(cid:69)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:71)(cid:72)(cid:69)(cid:87)(cid:3) (cid:82)(cid:85)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3) (cid:82)(cid:81)(cid:3) (cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3) (cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:3) (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3) (cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)

expansion projects, working capital requirements and the repayment or refinancing of indebtedness; 

(cid:120)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:3)the anticipated benefits of investing in unconsolidated affiliates; 

(cid:120) 

(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:15)(cid:3)(cid:81)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:49)(cid:42)(cid:47)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:86)(cid:30) 

(cid:120)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)
handling and treatment or other assets on schedule, at the budgeted cost or at all, and the ability of such assets to operate 
as designed or at expected levels; 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

competition and government regulations; 

actions taken by third party producers, operators, processors and transporters; 

legal or environmental matters; 

(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:30) 

general economic conditions; 

2 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

credit markets; 

operating hazards, natural disasters, weather related delays, casualty losses and other matters beyond our control; 

(cid:88)(cid:81)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:87)(cid:92)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

plans, objectives, expectations and intentions contained in this report that are not historical. 

We  caution  you  that  these  forward  looking  statements  are  subject  to  all  of  the  risks  and  uncertainties,  most  of  which  are 
(cid:71)(cid:76)(cid:73)(cid:73)(cid:76)(cid:70)(cid:88)(cid:79)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:83)(cid:85)(cid:72)(cid:71)(cid:76)(cid:70)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:80)(cid:68)(cid:81)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:69)(cid:72)(cid:92)(cid:82)(cid:81)(cid:71)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:3) (cid:76)(cid:81)(cid:70)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86).  
These risks include, but are not limited to, commodity price volatility, inflation, environmental risks, drilling and completion and other 
operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flows and access to capital, 
the timing of development expenditures, and the other risks described un(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K and 
(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K for the year ended December 31, 2018, which has been included in this filing as 
Exhibit 99.1 and incorporated herein by reference. 

Should  one  or  more  of  the  risks  or  uncertainties  described  in  this  report  occur,  or  should  underlying  assumptions  prove 
(cid:76)(cid:81)(cid:70)(cid:82)(cid:85)(cid:85)(cid:72)(cid:70)(cid:87)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:79)(cid:68)(cid:81)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:71)(cid:76)(cid:73)(cid:73)(cid:72)(cid:85)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)(cid:3)(cid:79)(cid:82)oking 
statements. 

All forward looking statements, expressed or implied, included in this report are qualified in their entirety by this cautionary 
statement.  This cautionary  statement should also be considered in connection  with any subsequent  written or oral forward looking 
statements that we or persons acting on our behalf may issue. 

Except as otherwise required by applicable law, we disclaim any duty to update any forward looking statements, all of which 
are  expressly  qualified  by  the  statements  in  this  section,  to  reflect  events  or  circumstances  after  the  date  of  this  Annual  Report  on 
Form 10-K. 

3 

 
 
The following are abbreviations and definitions of certain terms used in this document, which are commonly used in the oil 

GLOSSARY OF COMMONLY USED TERMS 

and gas industry: 

(cid:179)(cid:38)(cid:51)(cid:44)(cid:17)(cid:180)  Consumer Price Index. 

(cid:179)(cid:40)(cid:51)(cid:36)(cid:17)(cid:180)  Environmental Protection Agency. 

(cid:179)(cid:43)(cid:92)(cid:71)(cid:85)(cid:82)(cid:70)(cid:68)(cid:85)(cid:69)(cid:82)(cid:81)(cid:17)(cid:180)  An organic compound containing only carbon and hydrogen. 

(cid:179)(cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3) (cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17)(cid:180)  The  joint  venture  entered  into  on  February 6,  2017  between  Antero  Midstream  and  MarkWest  Energy 
Partners, L.P(cid:17)(cid:3)(cid:11)(cid:179)(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:51)(cid:47)(cid:59)(cid:15)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:48)(cid:51)(cid:47)(cid:59)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)
Appalachia. 

(cid:179)(cid:48)(cid:70)(cid:73)(cid:17)(cid:180)  One thousand cubic feet of natural gas. 

(cid:179)(cid:49)(cid:68)(cid:87)(cid:88)(cid:85)(cid:68)(cid:79)(cid:3)(cid:74)(cid:68)(cid:86)(cid:17)(cid:180)  Hydrocarbon gas found in the earth, composed of methane, ethane, butane, propane and other gases. 

(cid:179)(cid:49)(cid:42)(cid:47)(cid:86)(cid:17)(cid:180)  Natural gas liquids.  Hydrocarbons found in natural gas which may be extracted as purity products such as ethane, 

propane, isobutane and normal butane, and natural gasoline. 

(cid:179)(cid:50)(cid:76)(cid:79)(cid:17)(cid:180)  Crude oil and condensate. 

(cid:179)(cid:54)(cid:40)(cid:38)(cid:17)(cid:180)  United States Securities and Exchange Commission. 

(cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:17)(cid:180)    The  entities  and  individuals  that  collectively  own  100%  of  the  membership  interests  in  our  general  partner, 
including Warbur(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:180)(cid:12)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
Glen C. Warren, Jr. 

4 

 
 
 
References in this Annual Report on Form 10-(cid:46)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)
prior  to  May 4,  2017,  refer  to  our  predecessor,  Antero  Resources  Midstream  Management (cid:47)(cid:47)(cid:38)(cid:17)(cid:3) (cid:3) (cid:53)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:15)(cid:180)(cid:3) (cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)
(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:69)(cid:72)(cid:74)(cid:76)(cid:81)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:48)(cid:68)(cid:92) 4, 2017 and prospectively, refer to Antero Midstream GP LP. 

PART I 

Items 1 and 2.  Business and Properties 

Our Business 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:82)(cid:85)(cid:76)(cid:74)(cid:76)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:180)(cid:12)(cid:3)
(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3) limited partnership that is 
(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3) (cid:60)(cid:82)(cid:85)(cid:78)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:11)(cid:179)(cid:49)(cid:60)(cid:54)(cid:40)(cid:180)(cid:12)(cid:3)(cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3)(cid:36)(cid:48)(cid:12)(cid:17)(cid:3)(cid:3)(cid:50)(cid:81)(cid:3)(cid:48)(cid:68)(cid:92) 4, 2017, ARMM converted  from a Delaware 
limited liability company to a Delaware limited partnership and changed its name to Antero Midstream GP LP in connection with our 
(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3) (cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:17)(cid:3) (cid:3) (cid:58)(cid:72)(cid:3) (cid:82)(cid:90)(cid:81)(cid:3) (cid:20)(cid:19)(cid:19)(cid:8)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3) (cid:42)(cid:51)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:36)(cid:48)(cid:51)(cid:3) (cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)
which  owns  the  non-economic  general  partner  interest  in  Antero  Midstream,  and  we  own  all  of  the  Series A  capital  interests 
(cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:36)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:44)(cid:39)(cid:53)(cid:3) (cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:82)(cid:90)(cid:81)(cid:86)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3) (cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
Midstream.  IDR LLC also has Series (cid:37)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:88)(cid:83)(cid:3)to 6% of 
the distributions that Antero Midstream makes on the IDRs in excess of $7.5 million per quarter, subject to certain vesting conditions.  
We  are  taxed  as  a  corporation  for  U.S.  federal  income  tax  purposes  and  we  refer  to  our  outstanding  limited  partner  interests  as 
common shares. 

Our  only  income  results  from  distributions  made  on  the  IDRs  of  Antero  Midstream.    The  Antero  Midstream  IDRs  entitle 

holders to receive cash distributions from Antero Midstream when distributions exceed certain target amounts.  

(cid:58)(cid:72)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:69)(cid:79)(cid:76)(cid:86)(cid:75)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
payable  to  shareholders.    AMGP  GP  has  a  board  of  directors  appointed  by  our  Sponsors.    Following  the  completion  of  our  IPO, 
certain of our directors and executive officers own AMGP common shares as well as Series B Units in IDR LLC.  In addition, certain 
(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3)(cid:36)(cid:53)(cid:12)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)n 
stock and An(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)
general  and  administrative  services  to  us  for  a  fee  of  $0.5  million  per year,  subject  to  annual  inflation  adjustments.    We  also  incur 
recurring direct expenses for the costs associated with being a publicly traded entity. 

IDR distributions earned by us through the date of our IPO, net of any related liabilities including income taxes through that 
date and expenses of the IPO, were distributed to Antero Resources Investment LLC, the sole member of ARMM for all periods prior 
to the IPO, prior to its liquidation. 

Our Relationship with Antero Midstream 

Antero Midstream is a growth-oriented  master limited partnership 52.8% owned by  Antero Resources and formed to own, 
(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3) (cid:80)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3) (cid:76)(cid:81)(cid:73)(cid:85)(cid:68)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:83)(cid:85)(cid:76)(cid:80)(cid:68)(cid:85)(cid:76)(cid:79)(cid:92)(cid:3) (cid:87)(cid:82)(cid:3) (cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:85)(cid:68)(cid:83)(cid:76)(cid:71)(cid:79)(cid:92)(cid:3) (cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3)
completion activity under long-term, fixed-(cid:73)(cid:72)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:82)(cid:87)(cid:75)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:82)(cid:88)(cid:87)(cid:75)western core of the 
Marcellus Shale in northwest West Virginia and in the core of the Utica Shale in southern Ohio, which Antero Resources believes are 
two of the premier North American shale plays and are its primary operating areas. 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)sets consist of gathering pipelines, compressor stations, processing and fractionation plants and water 
handling  and  treatment  infrastructure,  through  which  Antero  Midstream  provides  gathering,  compression,  processing,  fractionation 
and integrated water services, including fresh water delivery services, wastewater treatment and other fluid handling services.  These 
services  are  provided  to  Antero  Resources  under  long-term,  fixed-(cid:73)(cid:72)(cid:72)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:15)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3) (cid:72)(cid:91)(cid:83)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3)
commodity price volatility.  As of December (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:3)(cid:25)(cid:27)(cid:27)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:74)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:86)(cid:3)(cid:11)(cid:25)(cid:20)(cid:21)(cid:15)(cid:19)(cid:19)(cid:19)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:68)(cid:70)(cid:85)(cid:72)(cid:86)(cid:12)(cid:3)
are  dedicated  to  Antero  Midstream  for  gathering,  compression  and  water  services,  except  for  approximately  153,000  gross  acres 
subject to third party gathering and compression commitments.  Under its agreements with Antero Midstream, and subject to any pre-
existing  dedications  or  other  third  party  commitments,  Antero  Resources  has  dedicated  to  Antero  Midstream  all  of  its  current  and 
future acreage in West Virginia, Ohio and Pennsylvania for gathering and compression services and all of its acreage within defined 
services areas in West Virginia and Ohio for water services.  Antero Midstream also has certain rights of first offer with respect to 
gathering, compression, processing and fractionation services and water services for acreage located outside of the existing dedicated 

5 

areas.  The gathering and compression and water services agreements each have a 20-year initial term and are subject to automatic 
annual renewal after the initial term.   Antero Midstream also owns a 15% equity interest in the  gathering system of  Stonewall Gas 
(cid:42)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:3) (cid:24)(cid:19)(cid:8)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:45)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3) (cid:57)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3) (cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:86)(cid:86)(cid:72)(cid:87)s  in 
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Venture  with  MarkWest,  Antero  Midstream  released  to  the  Joint  Venture  its  right  to  provide  certain  processing  and  fractionation 
services on 195,000 gross acres held by Antero Resources in Ritchie, Tyler and Wetzel Counties in West Virginia.  The processing 
and fractionation arrangements are underpinned by long-term agreements subject to automatic annual renewal after the initial term. 

Our results of operations, financial position and cash flows are dependent on the results of operations, financial position and 
cash flows of Antero Midstream.  We are highly dependent on Antero Midstream as we derive all of our income from distributions 
made  on  the  IDRs  of  Antero  Midstream.    Accordingly,  we  are  indirectly  subject  to  the  business  risks  of  Antero  Midstream.    For 
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Ant(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:15)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3) (cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:85)(cid:3)
market reputation could affect their ability to make cash distributions, and therefore could have a material adverse impact on us.  As a 
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and notes thereto presented in its Annual Report on Form 10-K for the year ended December 31, 2018. 

For  a  discussion  o(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:83)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3) (cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3) (cid:85)(cid:72)(cid:68)(cid:71)(cid:3) (cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:86) (cid:20)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:21)(cid:17)(cid:3) (cid:3) (cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:51)(cid:85)(cid:82)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3) (cid:82)(cid:73)(cid:3)
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K for the year ended December 31, 2018, which has been included in this filing as 
Exhibit 99.1 and incorporated herein by reference, as the activities of Antero Midstream have a significant impact on our results of 
operations and financial position. 

Simplification Agreement 

On February 26, 2018, we announced that the board of directors of AMGP GP formed a conflicts committee composed solely 
of independent directors in conjunction with the formation of a conflicts committee at Antero Midstream and a special committee at 
Antero Resources.  (cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:89)aluate potential transactions involving 
us,  on  October  9,  2018,  we  announced  that  we  and  certain  of  our  affiliates  entered  into  a  Simplification  Agreement  (as  may  be 
(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85) things, (1) we will be converted from a 
limited partnership to a corporation under the laws of the State of Delaware, to be named Antero Midstream Corporation (which is 
(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:11)(cid:21)(cid:12)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:15)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92) owned subsidiary of New AM will be merged 
with and into Antero Midstream, with Antero Midstream surviving the merger as an indirect, wholly owned subsidiary of New AM 
(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:11)(cid:22)(cid:12)(cid:3) (cid:68)(cid:79)(cid:79)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3) (cid:37)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:69)(cid:72)(cid:3) (cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3) (cid:73)or  an  aggregate  of  approximately  17.35 
(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:11)(cid:179)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:180)(cid:12)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:68)(cid:80)(cid:72)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:81)ditions to which the Series B Units 
are currently subject, with two-thirds fully vested and one-third scheduled to vest at December 31, 2019.  With respect to the Series B 
Units and shares of New AM Common Stock scheduled to vest on December 31, 2019, the  holders of Series B Units have agreed to 
forego  any  distributions  from  IDR  LLC  and  any  dividends  from  New  AM  that  are  paid  with  respect  to  such  units  or  shares,  as 
applicable, during the twelve months ended December 31, 2019.   The Conversion, the Merger, the Series B Exchange and the other 
(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:80)(cid:83)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:86)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180)(cid:3) (cid:3) (cid:36)(cid:86)(cid:3) (cid:68)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3) (cid:82)(cid:73)  the 
Transactions, Antero Midstream will be a wholly owned subsidiary of New AM and our former shareholders, unitholders of Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17) 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

Related Transactions a(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:180) 

Initial Public Offering and Cash Distributions 

On May 9, 2017, we completed our IPO of 37,250,000 common shares representing limited partnership interests at a price of 
$23.50 per common share.  All of the common shares sold in the offering were offered by the selling shareholder.  We did not receive 
any of the proceeds from the offering. 

6 

The board of directors of our general partner has declared cash distributions per share as follows:  

2017 
Second quarter 
Third quarter 
Fourth quarter 
2018 
First quarter 
Second quarter 
Third quarter 
Fourth quarter 

$ 
$ 
$ 

$ 
$ 
$ 
$ 

 0.027  
 0.059  
 0.075  

 0.108  
 0.125  
 0.144  
 0.164  

Employees 

We and AMGP GP have no employees.  All of our officers and other personnel necessary for our business to function (to the 
extent  not  outsourced)  are  employed  by  Antero  Resources,  and  we  pay  Antero  Resources  an  annual  fee  for  corporate,  general  and 
administrative  services.    This  fee  was  initially  $0.5  million  per year  and  is  subject  to  adjustment  on  an  annual  basis,  beginning  on 
January 1, 2018, based on the CPI.  The fee is also subject to adjustment to reflect any increase in the cost of providing services due to 
changes in applicable law, rules or regulations and any increase in the scope and extent of the services provided.  The fee will not be 
decreased below the initial fee unless the type or extent of services provided materially decreases. 

Antero  Midstream  does  not  have  any  employees.    The  officers  of  AMP GP,  who  are  also  officers  of  Antero  Resources, 
(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:79)(cid:79)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3) (cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72) 
(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:15)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)-time personnel are subject to the services agreement with 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:69)(cid:72)(cid:3)
satisfactory.  Additionally, Antero Midstream has a secondment agreement whereby Antero Resources provides seconded employees 
(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:68)(cid:87)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:81)(cid:71)(cid:79)(cid:76)(cid:81)g and 
treatment assets for a 20-year period from the initial term of such agreement. 

Address, Internet Website and Availability of Public Filings 

Our  principal  executive  offices  are  at 1615  Wynkoop  Street,  Denver,  Colorado  80202.    Our  telephone  number  is 

(303) 357-7310.  Our website is located at www.anteromidstreamgp.com. 

We  furnish  or  file  with  the  Se(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:54)(cid:40)(cid:38)(cid:180)(cid:12)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3) (cid:82)(cid:81)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80) 10-K,  our 
Quarterly  Reports  on  From  10-Q,  and  our  Current  Reports  on  Form 8-K.    We  make  these  documents  available  free  of  charge  at 
www.anteromidstreamgp.com (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:3)(cid:79)(cid:76)(cid:81)(cid:78)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:82)(cid:82)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:85)(cid:72)(cid:68)(cid:86)(cid:82)(cid:81)(cid:68)(cid:69)(cid:79)(cid:92)(cid:3)(cid:83)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:92)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:73)(cid:76)(cid:79)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:73)(cid:88)(cid:85)(cid:81)(cid:76)(cid:86)(cid:75)(cid:72)(cid:71)(cid:3)
with the SEC. 

Information on our website is not incorporated into this Annual Report on Form 10-K or our other filings with the SEC and is 

not a part of them. 

Item 1A. Risk Factors 

Limited partner interests are inherently different from the capital stock of a corporation, although many of the business risks 
to  which  we  are  subject are  similar  to  those  that  would  be  faced by  a  corporation  engaged  in  a  similar  business.    Because  of our 
relationship with Antero Midstream and its relationship with Antero Resources, adverse developments or announcements concerning 
Antero Midstream or Antero Resources could materially adversely affect our business.  You should carefully consider the following 
risk factors together with all of the other information included in this Annual Report on Form 10-K, including the matters addressed 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:38)(cid:68)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:41)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)-(cid:47)(cid:82)(cid:82)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:180)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)hares. 

If  any  of  the  following  risks  were  to  occur,  our  business,  financial  condition,  results  of  operations  and  cash  available  for 

distribution could be materially adversely affected. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:85)(cid:76)(cid:86)(cid:78)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:44)(cid:87)(cid:72)(cid:80) 1(cid:36)(cid:17)(cid:3)(cid:3)(cid:179)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)
Report on Form 10-K for the year ended December 31, 2018, which has been included in this filing as Exhibit 99.1 and incorporated 

7 

 
 
 
 
 
     
 
 
  
 
 
 
 
   
 
 
 
 
 
 
 
herein  by  reference,  as  the  activities  of  Antero  Midstream  have  a  significant  impact  on  our  results  of  operations  and  financial 
position. 

Risks Related to the Transactions 

We may incur substantial transaction-related costs in connection with the Transactions, and if the Transactions do not occur, 
we will not benefit from the expenses we have incurred in pursuit of the Transactions. 

We  expect  to  incur  substantial  expenses  in  connection  with  completing  the  Transactions,  including  fees  paid  to  legal, 
financial and accounting advisors, filing fees, proxy solicitation costs and printing costs.  Many of the expenses that will be incurred, 
by their nature, are difficult to estimate accurately at the present time.  The Transactions may not be completed.  If the Transactions 
are not completed, we will have incurred substantial expenses for which no ultimate benefit will have been received.   

We  are  subject  to  contractual  interim  operating  restrictions  while  the  proposed  Transactions  are  pending,  which  could 
adversely affect our business and operations. 

Under the terms of the Simplification Agreement, we are subject to certain restrictions on the conduct of our business prior to 
completing the Transactions,  which  may adversely affect our ability to execute certain of our business  strategies.   Such limitations 
could negatively affect our businesses and operations prior to the completion of the Transactions. 

We may be subject to class action lawsuits relating to the Transactions, which could materially adversely affect our business, 
financial condition and operating results. 

We and the directors and officers of our general partner may be subject to class action lawsuits relating to the Transactions 
and other additional lawsuits that may be filed.  Such litigation is very common in connection with acquisitions of public companies, 
regardless of any merits related to the underlying acquisition.  While we will evaluate and defend against any actions vigorously, the 
costs  of  the  defense  of  such  lawsuits  and  other  effects  of  such  litigation  could  have  an  adverse  effect  on  our  business,  financial 
condition and operating results. 

One  of  the  conditions  to  consummating  the  Transactions  is  that  no  injunction  or  other  order  prohibiting  or  otherwise 
preventing the consummation of the Transactions shall have been issued by any court or governmental entity of competent jurisdiction 
in the United States.  Consequently, if any lawsuit is filed challenging the Transactions and is successful in obtaining an injunction 
preventing  the  parties  to  the  Simplification  Agreement  from  consummating  the  Transactions,  such  injunction  may  prevent  the 
Transactions from being completed in the expected timeframe, or at all. 

Failure  to  complete,  or  significant  delays  in  completing,  the  Transactions  could  negatively  affect  the  trading  prices  of  our 
common shares and our future business and financial results. 

Completion of the Transactions is not assured and is subject to risks, including the risks that approval of the Transactions by 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:69)(cid:92)(cid:3)(cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:74)(cid:72)(cid:81)(cid:70)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:82)(cid:69)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)hat other closing conditions are 
not satisfied.  Antero Midstream is not required to pay a termination fee in the event that either the conflicts committee or board of 
directors at Antero Midstream makes a good faith determination that the Transactions are no longer in the best interests of the Antero 
Midstream public unitholders.  If the Transactions are not completed, or if there are significant delays in completing the Transactions, 
the  trading  price  of  our  common  shares  and  our  future  business  and  financial  results  could  be  negatively  affected,  and  we  will  be 
subject to several risks, including the following: 

(cid:120)  we may be liable for damages to the other parties under the terms and conditions of the Simplification Agreement; 

(cid:120) 

(cid:120) 

(cid:120) 

negative reactions from the financial markets, including declines in the prices of our common shares due to the fact that 
current prices may reflect a market assumption that the Transactions will be completed; 

having to pay certain significant costs relating to the Transactions; and 

the attention of our management will have been diverted to the Transactions rather than our own operations and pursuit 
of other opportunities that could have been beneficial to us. 

8 

Risks Inherent in an Investment in Us 

Our cash flows are entirely dependent upon the ability of Antero Midstream to make cash distributions on the IDRs. 

We own all of the capital interests in IDR LLC, which owns all of the IDRs in Antero Midstream.  Accordingly, the source of 
our  earnings  and  cash  flows  currently  consist  exclusively  of  cash  distributions  from  IDR LLC,  which  consist  exclusively  of  cash 
distributions from Antero Midstream on the IDRs.  We receive at least 94% of the cash distributions paid by Antero Midstream on the 
IDRs.  The amount of cash that  Antero Midstream is able to distribute to its partners, including IDR LLC, each quarter principally 
depends upon the amount of cash it generates from its business. 

Antero Midstream may not have sufficient available cash each quarter to continue paying distributions at its current level or 
at all.  If Antero Midstream reduces its per unit distribution, either because of reduced operating cash flow, higher expenses, increased 
capital  requirements,  increased  common  units  outstanding  (including  common  units  issued  in  connection  with  A(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
at-the-market equity offering program) or otherwise, we will have less cash available for distribution and would likely be required  to 
reduce our per share distribution to you.  The amount of cash Antero Midstream has available for distribution depends primarily upon 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:69)(cid:82)(cid:85)(cid:85)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:3)(cid:73)(cid:88)(cid:81)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:81)(cid:82)(cid:81)-cash items.  
As a result, Antero Midstream may make cash distributions during periods when it records losses and may not make cash distributions 
during periods when it records profits. 

Furthermore, our ability to distribute cash received in connection with distributions on the IDRs to our shareholders is limited 

by a number of factors, including: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

the expenses we incur as a result of being a publicly traded company; 

our payment of any income taxes; 

interest expense and principal payments on any future indebtedness incurred by us; 

distributions made by IDR LLC with respect to the Series B Units; 

restrictions  (cid:82)(cid:81)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) (cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)
credit facility and any future debt agreements entered into by Antero Midstream or us; and 

reserves, if any, our general partner establishes for the proper conduct of our business, to comply with applicable law or 
any agreement binding on us or our subsidiaries (exclusive of Antero Midstream and its subsidiaries), which reserves are 
not subject to a limit pursuant to our partnership agreement. 

A material increase in amounts paid or reserved with respect to any of these factors could restrict our ability to pay quarterly 

distributions to our shareholders. 

In the future, we may not have sufficient cash to pay our estimated initial quarterly distribution or to increase distributions. 

Because our cash flows are entirely dependent on cash distributions from IDR LLC, which is dependent on cash distributions 
from Antero Midstream on the IDRs, the amount of distributions we are able to make to our shareholders may fluctuate based on the 
level of distributions Antero Midstream makes to its partners, including IDR LLC, and the level of distributions IDR LLC makes to its 
members, including us.  Antero Midstream may not make quarterly distributions at its most recently declared level of $0.47 per unit, 
or  any  other  level,  or  increase  its  quarterly  distributions  in  the  future.    In  addition,  while  we  would  expect  to  increase  or  decrease 
distributions  to  our  shareholders  if  Antero  Midstream  were  to  increase  or  decrease  distributions,  the  timing  and  amount  of  such 
changes in distributions, if any, would not necessarily be comparable to the timing and amount of any changes in distributions made 
by  Antero  Midstream.    Various  factors,  such  as  reserves  established  by  the  board  of  directors  of  our  general  partner  (including  in 
anticipation of increasing distributions to our unitholders to account for make-whole distributions paid by IDR LLC to the holders of 
newly-vested Series B Units), may affect the distributions we make to our shareholders.  The actual amount of cash that is available 
for  distribution  to  our  shareholders  will  depend  on  numerous  factors,  many  of  which  are  beyond  our  control  or  the  control  of  our 
general partner. 

9 

Our right to receive distributions paid by Antero Midstream on the IDRs may be limited or modified by our general partner 
without the consent of our shareholders, which may reduce cash distributions. 

We  own  all  of  the  capital  interests  in  IDR LLC,  which  owns  all  of  the  IDRs  that  entitle  IDR LLC  to  receive 
increasing percentages  (up  to  a  maximum  of  50%)  of  any  cash  distributed  by  Antero  Midstream  in  excess  of  $0.1955  per  Antero 
Midstream common unit in any quarter.  We receive at least 94% of the cash distributions paid by Antero Midstream on the IDRs.  All 
of the cash flows we receive from IDR LLC are derived from its ownership of these IDRs. 

Antero  Midstream,  like  other  publicly  traded  partnerships,  generally  will  undertake  an  acquisition  or  expansion  capital 
project only if, after giving effect to related costs and expenses, the transaction would be expected to be accretive, meaning it would 
increase cash distributions per unit in future periods.  Because IDR LLC currently participates in the IDRs at all levels, including the 
highest  sharing  level  of  50%,  an  acquisition  or  capital  project  generally  is  less  likely  to  be  accretive  to  the  unitholders  of  Antero 
Midstream than if the IDRs were entitled to a lower incremental cash flow.  IDR LLC may receive a proposal to reduce the IDRs to 
facilitate  a  particular  acquisition  or  expansion  capital  project.    Any  such  reduction  of  IDRs  will  reduce  the  amount  of  cash  that 
otherwise would have been distributed by IDR LLC to us, which will in turn reduce the cash distributions we otherwise would be able 
to pay.  Our shareholders will not be able to vote on, or otherwise prohibit our general partner from taking similar actions in the future 
and  our  general  partner  may  elect  to  modify  the  incentive  distributions.    In  addition,  there  can  be  no  guarantee  that  the  expected 
benefits of any IDR modification will be realized. 

(cid:36)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:3)
to relinquish the right to receive incentive distribution payments based on the initial target distribution levels and to reset, at higher 
levels,  the  minimum  quarterly  distribution  amount  and  target  distribution  levels  upon  which  the  incentive  distribution  payments  to 
IDR LLC  would  be  set.    In  connection  with  the  resetting  of  the  target  distribution  levels  and  the  corresponding  relinquishment  by 
IDR LLC  of  incentive  distribution  payments  based  on  the  target  cash  distributions  prior  to  the  reset,  IDR LLC  will  be  entitled  to 
receive a number of newly-issued common units in Antero Midstream equal to the result of dividing (i) the aggregate amount of cash 
distributions made by Antero Midstream for the quarter immediately preceding the reset event by (ii) the cash distribution made by 
Antero  Midstream  in  respect  of  each  common  unit  for  such  quarter.    IDR (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3) (cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:85)(cid:72)(cid:86)(cid:72)(cid:87)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3) (cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
amount and target distribution levels upon which the incentive distributions payable to IDR LLC are based may be exercised, subject 
to  certain  restrictions,  without  approval  of  Antero  Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)
committee.  The reset minimum quarterly distribution amount and target distribution levels will be higher than the minimum quarterly 
distribution amount and the target distribution levels prior to the reset such that IDR LLC will not receive any incentive distributions 
under the reset target distribution levels until cash distributions per unit following this event increase. 

IDR LLC may exercise this reset right in order to facilitate acquisitions or internal growth projects that would otherwise not 
be  sufficiently  accretive  to  cash  distributions  per  common  unit,  taking  into  account  the  existing  levels  of  incentive  distribution 
payments being made to the general partner. 

A reduction in (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:17) 

IDR (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:3)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:79)(cid:92)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)(cid:76)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74) percentages, ranging from 15% 
up  to  50%,  of  all  cash  distributed  by  Antero  Midstream  in  excess  of  $0.1955  per  common  unit  per  quarter.    Based  on  Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:75)(cid:76)(cid:86)(cid:87)(cid:82)(cid:85)(cid:92)(cid:15)(cid:3) (cid:44)(cid:39)(cid:53) LLC  initially  will  be  entitled  to  receive  50%  of  all  cash  distributed  by  Antero  Midstream  in 
excess of $0.2550 per common  unit per quarter.   A decrease in the amount of quarterly distributions paid by  Antero Midstream  to 
$0.2550 or less per common unit would reduce IDR (cid:47)(cid:47)(cid:38)(cid:182)(cid:86) percentage of incremental quarterly cash distributions in excess of $0.1955 
per common unit  from 50% to 15%.  As a result, any  such reduction in quarterly cash  distributions from  Antero Midstream  would 
have the effect of disproportionately reducing the amount of distributions that IDR LLC receives from Antero Midstream on the IDRs 
as compared to cash distributions Antero Midstream makes with respect to its common units. 

If distributions on our common shares are not paid with respect to any fiscal quarter, our shareholders will not be entitled  to 
receive any payments in respect of such quarter. 

Our distributions to our shareholders are not cumulative.  Consequently, if distributions on our common shares are not paid 
with respect to any fiscal quarter, our shareholders will not be entitled to receive any payments in respect of such quarter in the future. 

10 

The amount of cash that we and Antero Midstream distribute each quarter may limit our ability to grow. 

Because we and Antero Midstream each distribute all of our respective cash from operations on a quarterly basis, our growth 
(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)not be as fast as the growth of businesses that continually reinvest their cash to expand ongoing 
operations.  In  fact, because  our cash  flows currently are  generated  solely from distributions  we receive  from IDR LLC,  which are 
derived exclusively from the IDRs, our growth will be completely dependent upon Antero Midstream.  The amount of distributions 
paid  on  the  IDRs  is  based  on  the  per  unit  distribution  paid  by  Antero  Midstream  on  each  of  its  common  units  and  the  number  of 
Antero Midstream common units outstanding.  If we issue additional common shares or incur debt, the payment of distributions on 
those additional common shares or interest on that debt could increase the risk that we will be unable to maintain or increase our cash 
distribution levels. 

Our rate of distribution growth may be reduced to the extent we purchase equity interests from Antero Midstream, which will 
reduce the relative percentage of the cash we receive from the IDRs. 

Our business strategy includes, where appropriate, supporting the growth of Antero Midstream by making loans, purchasing 
equity  interests  or  providing  other  forms  of  financial  support  to  Antero  Midstream  to  fund  an  acquisition  of  a  business  or  asset  or 
another growth project.  To the extent we purchase equity interests from Antero Midstream that are not entitled to distributions or do 
not receive distributions at the same rates as the IDRs, the rate of our distribution growth may be reduced, at least in the short term, as 
less  of  our  cash  distributions  will  come  from  our  ownership  of  IDRs,  whose  distributions  increase  at  a  faster  rate  than  Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17) 

(cid:53)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:71)(cid:72)(cid:69)(cid:87)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3) (cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:87)(cid:82)(cid:3) (cid:80)(cid:68)(cid:78)(cid:72)(cid:3)
distributions to IDR LLC, and therefore IDR (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:78)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:88)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)
to make distributions on our common shares. 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) (cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3) (cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)
(cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:82)(cid:88)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:81)(cid:68)(cid:81)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:92)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)ions and 
covenants may be affected by events beyond its control, including prevailing economic, financial and industry conditions.  If Antero 
Midstream  is  unable  to  comply  with  these  restrictions  and  covenants,  any  indebtedness  under  this  revolving  credit  facility  may 
become immediately due and payable and Antero Mi(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:79)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:78)(cid:72)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:79)(cid:82)(cid:68)(cid:81)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)
facility may terminate.  Antero Midstream might not have, and might be unable to obtain, sufficient funds to satisfy these accelerated 
payment obligations. 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:83)ayment  of  principal  and  interest  on  any  indebtedness  will  reduce  its  cash  distributions  on  the  IDRs, 
(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:69)(cid:92)(cid:3) (cid:85)(cid:72)(cid:71)(cid:88)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:81)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) (cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) the 
indenture governing Antero (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:68)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)
an event of default or if an event of default would result from the distribution. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:76)(cid:86)(cid:78)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:69)(cid:87)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:178)Risks Related to Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:178)(cid:53)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:69)(cid:87)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)
its business, financial condition, results of operations and ability (cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:78)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:180) 

Our partnership agreement restricts the rights of shareholders owning 20% or more of our shares. 

(cid:50)(cid:88)(cid:85)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:85)(cid:72)(cid:86)(cid:87)(cid:85)(cid:76)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:76)(cid:81)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)ly  providing  that  any 
shares held by a person or group that owns 20% or more of any class of shares then outstanding, other than our general partner, the 
Sponsors  (or  certain  transferees  in  private,  non-exchange  transactions),  their  respective  affiliates  and  persons  who  acquired  such 
(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:70)(cid:68)(cid:81)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3) partnership 
agreement contains provisions limiting the ability of our shareholders to call meetings or to acquire information about our operations, 
(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:73)(cid:79)(cid:88)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)result, the 
price at which our common shares will trade may be lower because of the absence or reduction of a takeover premium in the trading 
price. 

11 

Our shareholders will not elect or have the power to remove our general partner. The Sponsors will own a sufficient number 
of common shares to allow them to prevent the removal of our general partner. 

Our shareholders only have limited voting rights on matters affecting our business and, therefore, limited ability to influence 
(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)t directors, 
were initially designated and elected by the Sponsors or their designees following our IPO.  Our remaining shareholders do not have 
the ability to elect our general partner or the members of the board of directors of our general partner unless the Sponsors no longer 
own specified amounts of our common shares.  Additionally, as a result of our resulting governance arrangements and the 20% voting 
limitation in our partnership agreement, it will be difficult for one or more of our shareholders to (cid:74)(cid:68)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)
board of directors. 

In addition, if our shareholders are dissatisfied with the performance of our general partner, they have little ability to remove 
our general partner.  Our general partner may not be removed unless  that removal is for cause and is approved by the holders of at 
least  80%  of  our  outstanding  shares.    The  ownership  level  of  the  Sponsors  enables  the  Sponsors  to  prevent  our  general  partner(cid:182)(cid:86)(cid:3)
removal. 

As  a  result  of  these  provisions,  the  price  at  which  our  common  shares  will  trade  may  be  lower  because  of  the  absence  or 

reduction of a takeover premium in the trading price. 

Our general partner may cause us to issue additional common shares, including in connection with the redemption of Series B 
Units, or other equity securities, as well as issue equity securities that are senior to our common shares, without shareholder 
approval. 

Our general partner may cause us to issue an unlimited number of additional common shares, including in connection with 
the redemption of Series B Units, or other equity securities of equal rank with the common shares, without shareholder approval.  For 
a discussion of what will happen to the Series B Units in connection with the Transactions, see Note 1(cid:178)Business and Organization.  
In addition, we may issue an unlimited number of shares that are senior to our common shares in right of distribution, liquidation and 
voting.  The issuance of additional common units or our other equity securities of equal or senior rank will have the following effects: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:88)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:71)(cid:72)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:30) 

the amount of cash available for distribution on each common share may decrease; 

the relative voting strength of each previously outstanding common share may be diminished; and 

the market price of the common shares may decline. 

(cid:44)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:85)(cid:72)(cid:80)(cid:82)(cid:89)(cid:72)(cid:3)(cid:36)(cid:48)(cid:51) GP as the general partner of Antero Midstream, AMP GP would be required 
to sell or exchange its general partner interest, and we would lose the ability to manage and control Antero Midstream. 

We  own,  and  appoint  all  of  the  members  of  the  board  of  directors  of,  AMP GP,  which  owns  the  non-economic  general 
partner interest in Antero Midstream.  AMP GP may not be removed as general partner of Antero Midstream unless that removal is for 
cause and is approved by the vote of the holders of not less than 662/3% of the outstanding units of Antero Midstream, voting together 
as a single class, including units held by AMP GP and its affiliates, and Antero Midstream receives an opinion of counsel regarding 
limited liability and tax matters.  Any removal of AMP GP is also subject to the approval of a successor general partner by the vote of 
the holders of a majority of the outstanding Antero Midstream common units, voting  as a class.  The ownership of more than 331/3% 
of the outstanding units by AMP (cid:42)(cid:51)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:80)(cid:82)(cid:89)(cid:68)(cid:79)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)
the  removal  of  AMP GP  as  general  partner  of  Antero  Midstream  or  its  withdrawal  as  general  partner  in  violation  of  Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:68)(cid:3)(cid:86)(cid:88)(cid:70)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:3)(cid:36)(cid:48)(cid:51) (cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)
for a cash payment equal to the fair market value of that interest.  Under all other circumstances where AMP GP withdraws as general 
partner of Antero Midstream, AMP GP will have the option to require the successor general partner to purchase the general partner 
interest  of  Antero  Midstream  for  fair  market  value.    In  each  case,  this  fair  market  value  will  be  determined  by  agreement  between 
AMP GP and the successor general partner.  If no agreement is reached, an independent investment banking firm or other independent 
expert selected by  AMP GP and the  successor  general partner  will determine the fair  market value.  If, however,  AMP GP and the 

12 

successor general partner cannot agree upon an expert, then an expert chosen by agreement of the experts selected by each of  them 
will determine the fair market value.  In each case, AMP GP would also lose its ability to manage Antero Midstream. 

In addition, if AMP GP is removed as general partner of Antero Midstream, we would face an increased risk of being deemed 

an investment company. 

Our shareholders may not have limited liability if a court finds that shareholder action constitutes control of our business. 

Under Delaware law, our  shareholders could be held liable for our obligations to the same extent as a  general partner if a 
court determined that the right or the exercise of the right by our shareholders as a group to remove or replace our general partner, to 
approve  some  amendments  to  the  partnership  agreement  or  to  take  other  action  under  our  partnership  agreement  constituted 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)e limitations on the liability of holders of limited partner interests for the 
liabilities of a limited partnership have not been clearly established in many jurisdictions. 

Furthermore,  Section 17-607  of  the  Delaware  Revised  Uniform  Limited  Partnership  Act  provides  that,  under  some 
circumstances,  a  shareholder  may  be  liable  to  us  for  the  amount  of  a  distribution  for  a  period  of  three years  from  the  date  of  the 
distribution. 

If in the future we cease to manage and control Antero Midstream, we may be deemed to be an investment company under the 
Investment Company Act of 1940. 

If we cease to manage and control Antero Midstream or IDR LLC and are deemed to be an investment company under the 
(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:20)(cid:28)(cid:23)(cid:19)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:36)(cid:70)(cid:87)(cid:180)), we would either have to register as an investment 
company  under  the  Investment  Company  Act,  obtain  exemptive  relief  from  the  SEC  or  modify  our  organizational  structure  or  our 
contractual rights or asset mix to fall outside the definition of an investment company.  Registering as an investment company could, 
among  other  things,  materially  limit  our  ability  to  engage  in  transactions  with  affiliates,  including  the  purchase  and  sale  of  certain 
securities  or  other  property  to  or  from  our  affiliates,  restrict  our  ability  to  borrow  funds  or  engage  in  other  transactions  involving 
leverage,  require  us  to  add  additional  directors  who  are  independent  of  us  and  our  affiliates,  and  adversely  affect  the  price  of  our 
common shares. 

The price of our common shares may be volatile, and a trading market that will provide you with adequate liquidity may not 
develop. 

The market price of our common shares could be subject to significant fluctuations, and may decline below the current price.  
You may be unable to resell your common shares at or above the current price.  The following factors, among others, could affect our 
common share price: 

(cid:120)  (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:30) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

the level of Antero Midstre(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:30) 

quarterly variations in the rate of growth of our financial indicators, such as distributable cash flow per common share, 
net income and revenues; 

changes in revenue or earnings estimates or publication of research reports by analysts; 

speculation by the press or investment community; 

the  proposed  Transactions  with  Antero  Midstream,  the  Series  B  Holders  and  the  other  parties  to  the  Simplification 
Agreement;   

the possibility that the Transactions are not consummated in a timely manner or at all; 

sales of our common shares by our shareholders; 

the exercise by the Series B Holders of their redemption rights with respect to any vested Series B Units; 

13 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

announcements by Antero Midstream or its competitors of significant contracts, acquisitions, strategic partnerships, joint 
ventures, securities offerings or capital commitments; 

general market conditions; 

changes in accounting standards, policies, guidance, interpretations or principles; 

adverse changes in tax laws or regulations; 

(cid:71)(cid:82)(cid:80)(cid:72)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:15)(cid:3)(cid:79)(cid:72)(cid:74)(cid:68)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:179)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:180) 

Our common shares and Antero Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:68)(cid:81)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:17) 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:86)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:68)(cid:81)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)
Instead, while the trading prices of our common shares and An(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:79)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)
broad trends, the trading prices may diverge because, among other things: 

(cid:120)  (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:85)(cid:86)(cid:87)(cid:3)(cid:7)(cid:19)(cid:17)(cid:20)(cid:28)(cid:24)(cid:24)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)ns to its 

unitholders have a priority over distributions on its IDRs; 

(cid:120) 

(cid:120) 

(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:89)(cid:82)(cid:79)(cid:68)(cid:87)(cid:76)(cid:79)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:69)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:90)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)
tiered  incentive  distributions  associated  with  the  IDRs  in  Antero  Mi(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)
participate in all distributions made by Antero Midstream; 

IDR LLC will distribute a portion of the cash it receives from Antero Midstream to the holders of outstanding Series B 
Units; 

(cid:120)  we expect to continue to pay federal and state income taxes in the future; and 

(cid:120)  we may enter into other businesses separate and apart from Antero Midstream or any of its affiliates. 

An increase in interest rates may cause the market price of our common shares to decline. 

Like all equity investments, an investment in our common shares is subject to certain risks.  In exchange for accepting these 
risks,  investors  may  expect  to  receive  a  higher  rate  of  return  than  would  otherwise  be  obtainable  from  lower-risk  investments.  
Accordingly,  as  interest  rates  rise,  the  ability  of  investors  to  obtain  higher  risk-adjusted  rates  of  return  by  purchasing 
government-backed  debt  securities  may  cause  a  corresponding  decline  in  demand  for  riskier  investments  generally,  including 
yield-based  equity  investments  such  as  publicly  traded  limited  partnership  interests.    Reduced  demand  for  our  common  shares 
resulting from investors seeking other more favorable investment opportunities may cause the trading price of our common shares to 
decline. 

In addition, if interest rates rise, the interest rates on our revolving credit facility, future credit facilities and debt offerings 
could be higher than current levels, causing our financing costs to increase accordingly.  As with other yield-oriented securities, our 
share price is impacted by the level of our cash distributions and implied distribution yield.  The distribution yield is often used by 
investors  to  compare  and  rank  related  yield-oriented  securities  for  investment  decision-making  purposes.    Therefore,  changes  in 
interest rates, either positive or negative, may affect the yield requirements of investors who invest in our shares, and a rising interest 
rate environment could have an adverse impact on our unit price and our ability to issue additional equity, to incur debt to expand or 
for other purposes, or to make cash distributions at our intended levels. 

Future  sales  of  our  common  shares  in  the  public  market  could  reduce  our  common  share  price,  and  any  additional  capital 
raised by us through the sale of equity or convertible securities may dilute your ownership in us. 

Subject  to  certain  limitations  and  exceptions,  each  Series B  Holder  may  require  IDR LLC  to  redeem  all  or  a  part  of  such 
(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) B  Units  for  common  shares  in  us  at  a  ratio  described  in  the  IDR LLC  Agreement,  subject  to  customary 

14 

conversion rate adjustments for equity splits, equity dividends and reclassification and other similar transactions, and then sell those 
common  shares.    For  a  discussion  of  what  will  happen  to  the  Series  B  Units  in  connection  with  the  Transactions,  see  Note  1(cid:178)
Business  and  Organization.    We  may  also  issue  additional  common  shares  or  convertible  securities  in  subsequent  public  or  private 
offerings.  We cannot predict the size of future issuances of our common shares or securities convertible into common shares or the 
effect, if any, that future issuances and sales of our common shares will have on the market price of our common shares.  Sales of 
substantial  amounts  of  our  common  shares  (including  shares  issued  in  connection  with  an  acquisition),  or  the  perception  that  such 
sales could occur, may adversely affect prevailing market prices of our common shares.  

The Sponsors hold a majority of the voting power of our common shares. 

The Sponsors are entitled to act separately in their own respective interests with respect to their partnership interests in us, 
and have the ability to elect all of the members of our board of directors.  In addition, they will be able to determine the outcome of all 
matters requiring shareholder approval, including certain mergers and other material transactions, and will be able to cause or prevent 
a change in the composition of our board of directors or a change in control of our company that could deprive our shareholders of an 
opportunity to receive a premium for their common shares as part of a sale of our company.  So long as the Sponsors continue to own 
a  significant  amount  of  our  outstanding  shares,  even  if  such  amount  is  less  than  50%,  they  will  continue  to  be  able  to  strongly 
influence all matters requiring shareholder approval, regardless of whether or not other shareholders believe that the transaction is in 
their own best interests. 

If we or Antero Midstream fail to develop or maintain an effective system of internal controls, our ability to accurately report 
our financial results or prevent fraud could be adversely affected.  As a result, our shareholders could lose confidence in our 
financial reporting, which would harm our business and the trading price of our common shares. 

Effective internal controls are necessary for us to provide reliable financial reports, prevent fraud and operate successfully as 
(cid:68)(cid:3) (cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)(cid:3) (cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3) (cid:3) (cid:58)(cid:72)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:92)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:40)(cid:38)(cid:182)(cid:86)(cid:3) (cid:85)(cid:88)(cid:79)(cid:72)(cid:86) implementing  Sections 302  and  404  of  the 
Sarbanes-Oxley  Act  of  2002,  which  require  our  management  to  certify  financial  and  other  information  in  our  quarterly  and  annual 
reports and provide an annual management report on the effectiveness of our internal control over financial reporting.  If we or Antero 
M(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:70)(cid:68)(cid:81)(cid:81)(cid:82)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:76)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:83)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:85)(cid:68)(cid:88)(cid:71)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:88)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)lts will 
be  harmed.    We  cannot  be  certain  that  our  efforts  to  develop  and  maintain  our  internal  controls  will  be  successful.    Any  failure  to 
develop or maintain effective internal controls, or difficulties encountered in implementing or improving our internal controls, could 
(cid:75)(cid:68)(cid:85)(cid:80)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3) (cid:88)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:87)(cid:82)(cid:3) (cid:73)(cid:68)(cid:76)(cid:79)(cid:3) (cid:87)(cid:82)(cid:3) (cid:80)(cid:72)(cid:72)(cid:87)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)  obligations.  
Ineffective internal controls could also cause investors to lose confidence in our reported financial information,  which  would likely 
(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:81)(cid:72)(cid:74)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17) 

The NYSE does not require a limited partnership like us to comply with certain of its corporate governance requirements. 

Because  we  are  a  limited  partnership,  the  NYSE  does  not  require  our  general  partner  to  have  a  majority  of  independent 
directors  on  its  board  of  directors  or  to  establish  a  compensation  committee  or  a  nominating  and  corporate  governance  committee.  
Accordingly, our shareholders will not have the same protections afforded to certain corporations that are subject to all of  the NYSE 
corporate  governance  requirements.    In  addition,  as  a  limited  partnership,  we  are  not  required  to  seek  shareholder  approval  for 
issuances of common shares, including issuances in excess of 20% of our outstanding equity securities, or for issuances of equity to 
certain affiliates. 

(cid:58)(cid:72)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17) 

Under  Delaware  law,  a  general  partner  of  a  limited  partnership  is  generally  liable  for  the  debts  and  liabilities  of  the 
partnership for which it serves as general partner, subject to the terms of any indemnification agreements contained in the partnership 
(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:83)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-recourse to the general partner.  As a result of our structure, we 
own all of the interests in and appoint all of the members of the board of directors of the general partner of Antero Midstream.  To the 
extent  the  indemnification  provisions  in  the  applicable  partnership  agreement  or  non-recourse  provisions  in  our  contracts  are  not 
sufficient to protect us from such liability, we may in the future incur liabilities as a result of our ownership of AMP GP. 

15 

Our general partner interest or the control of our general partner may be transferred to a third party without shareholder 
consent. 

Our  general  partner  may  transfer  its  general  partner  interest  to  a  third  party,  including  in  a  merger  or  in  a  sale  of  all  or 
substantially all of its assets, without the consent of our shareholders.  Furthermore, the Sponsors may transfer all or a portion of their 
ownership interests in our general partner to a third party, also without shareholder consent.  The new owners of our general partner 
would then be in a position to replace the board of directors and officers of our general partner with its own designees and thereby 
exert significant control over the decisions made by the board of directors and officers. 

Restrictions  in  our  existing  and  future  debt  agreements  could  adversely  affect  our  ability  to  make  distributions  on  our 
common shares. 

Our revolving credit facility limits our ability to, among other things: 

(cid:120) 

(cid:120) 

incur or guarantee additional debt; 

redeem or repurchase units or make distributions under certain circumstances; 

(cid:120)  make certain investments and acquisitions; 

(cid:120) 

incur certain liens or permit them to exist; 

(cid:120)  merge or consolidate with another company; and 

(cid:120) 

transfer, sell or otherwise dispose of assets. 

Our payment of principal and interest under our revolving credit facility and with respect to our indebtedness will reduce our 
cash available for distribution to our shareholders.  In addition, our revolving credit facility limits our ability to pay distributions to our 
shareholders during an event of default or if an event of default would result from the distributions. 

Moreover,  our  current  indebtedness  and  any  future  indebtedness  that  we  incur  may  adversely  affect  our  ability  to  obtain 
additional financing for future operations or capital needs, limit our ability to pursue other business opportunities, or make our results 
of operations more susceptible to adverse economic or operating conditions. 

Risks Related to Conflicts of Interest 

Our  existing  organizational  structure  and  the  relationships  among  us,  Antero  Midstream,  our  respective  general  partners, 
Antero Resources, the Sponsors and affiliated entities present the potential for conflicts of interest.  Moreover, additional conflicts of 
interest may arise in the future among us and the entities affiliated with any general partner or similar interests we acquire or among 
Antero Midstream and such entities. 

Certain holders of our common shares have investments in our affiliates that may conflict with the interests of other holders of 
our common shares. 

(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:180)(cid:12)(cid:15)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)s  LLC 
(cid:11)(cid:179)(cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:79)(cid:72)(cid:81)(cid:3)(cid:38)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15) (cid:45)(cid:85)(cid:17)(cid:3)(cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:20)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
a  majority  of  our  outstanding  common  shares.    Messrs.  Rady  and  Warren  also  own  a  portion  of  the  Series  B  Units  in  IDR  LLC.  
Affiliates of Warburg and Yorktown, Mr. Rady and Mr. Warren serve as members of the board of directors of our general partner, the 
(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:68)rburg and 
Yorktown are controlled in part by individuals who serve as members of the board of directors of our general partner, the board of 
(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3) (cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82) own common 
units representing limited partner interests in Antero Midstream and shares of common stock in Antero Resources.  Please see  (cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)
11.  Executive  Compensation(cid:178)Narrative  Disclosure  to  Summary  Compensation  Table(cid:178)Long-Term  Equity-Based  Incentive 
Awards(cid:178)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)
happen  to  the  Series  B  Units  in  connection  with  the  Transactions,  see  Note  1(cid:178)Business  and  Organization.    As  a  result  of  their 
investments  in  Antero  Midstream  and  Antero  Resources,  the  Sponsors  may  have  conflicts  of  interest  with  other  holders  of  our 

16 

common shares.  These conflicts of interest could arise in the future between us, on the one hand, and the Sponsors, on the other hand, 
regarding, among other things, decisions to modify or limit the IDRs in the future, the terms of our agreements with Antero Midstream 
and  Antero  Resources  and  their  respective  subsidiaries  and  the  pursuit  of  potentially  competitive  business  activities  or  business 
opportunities. 

Conflicts of interest may arise as a result of our organizational structure and the relationships among us, Antero Midstream, 
our respective general partners, Antero Resources and other affiliated entities. 

Our  partnership  agreement  defines  the  duties  of  our  general  partner  (and,  by  extension,  its  officers  and  directors).    Our 
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:88)(cid:87)(cid:75)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:72)(cid:75)(cid:68)(cid:79)(cid:73)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:86)(cid:82)(cid:79)(cid:89)(cid:72)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:3)(cid:76)(cid:81)(cid:89)olving us 
and they have broad latitude to consider the interests of all parties to the conflict. 

Conflicts  of  interest  may  arise  between  us  and  our  shareholders,  on  the  one  hand,  and  our  general  partner  and  affiliated 
entities, on the other hand, or between us and our shareholders, on the one hand, and Antero Midstream and its unitholders, on the 
other hand.  The resolution of these conflicts may not always be in our best interest or that of our shareholders. 

(cid:50)(cid:88)(cid:85)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:71)(cid:88)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:88)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:86)(cid:3) (cid:83)(cid:85)ovisions  that  reduce  the  remedies 
available  to our  shareholders  for  actions  that  might  otherwise  be  challenged  as  breaches  of  fiduciary  or  other  duties  under 
state law. 

Our  partnership  agreement  contains  provisions  that  substantially  reduce  the  standards  to  which  our  general  partner  would 

otherwise be held by state fiduciary duty law.  For example, our partnership agreement: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

permits our general partner to make a number of decisions in its individual capacity, as opposed to in its capacity as our 
general partner.  This entitles our general partner to consider only the interests and factors that it desires, and it has no 
duty or obligation to give any consideration to any interest of, or factors affecting, us, the Sponsors, our affiliates or any 
limited partner.  Examples include the exercise of its limited call right, its rights to transfer or vote any shares it  may 
own, and its determination whether or not to consent to any merger or consolidation of our partnership or amendment to 
our partnership agreement; 

generally provides that our general partner will not have any liability to us or our shareholders for decisions made in its 
capacity as a general partner so long as it acted in good faith which, pursuant to our partnership agreement, requires a 
subjective  belief  that  the  determination,  or  other  action  or  anticipated  result  thereof  is  in,  or  not  opposed  to,  our  best 
interests; 

generally provides that any resolution or course of action adopted by our general partner and its affiliates in respect of a 
conflict of interest will be permitted and deemed approved by all of our shareholders, and will not constitute a breach of 
our partnership agreement or any duty stated or implied by law or equity if the resolution or course of action in respect of 
such conflict of interest is: 

(cid:120) 

(cid:120) 

(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:76)(cid:81)(cid:84)(cid:88)(cid:76)(cid:85)(cid:92)(cid:15)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)
a belief that the course of action or determination that is the subject of such approval is not adverse to us; 

approved  by  majority  vote  of  our  common  shares  (excluding  shares  owned  by  our  general  partner  and  its 
affiliates, but including shares owned by the Sponsors) voting together as a single class; 

provides that, to the fullest extent permitted by law, in connection with any action or inaction of, or determination made 
(cid:69)(cid:92)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3)
relating to us, it shall be presumed that our general partner or the conflicts committee of ou(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)
directors  acted  in  a  manner  that  satisfied  the  contractual  standards  set  forth  in  our  partnership  agreement,  and  in  any 
proceeding brought by any limited partner or by or on behalf of such limited partner or any other limited partner or our 
partnership  challenging  any  such  action  or  inaction  of,  or  determination  made  by,  our  general  partner,  the  person 
bringing or prosecuting such proceeding shall have the burden of overcoming such presumption; and 

17 

(cid:120) 

provides that our general partner and its officers and directors will not be liable for monetary damages to us, our limited 
partners or assignees for any acts or omissions unless there has been a final and non-appealable judgment entered by a 
court of competent jurisdiction determining that our general partner or those other persons acted in bad faith or, in the 
(cid:70)(cid:68)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:70)(cid:85)(cid:76)(cid:80)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:79)(cid:72)(cid:71)(cid:74)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:86)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:70)(cid:85)(cid:76)(cid:80)(cid:76)(cid:81)(cid:68)(cid:79)(cid:17) 

The Sponsors may have interests that conflict with holders of our common shares. 

The Sponsors own a certain number of our outstanding shares and certain of the Sponsors own a portion of the Series B Units 
in IDR LLC.  For a discussion of what will happen to the Series B Units in connection with the Transactions, see Note 1(cid:178)Business 
and Organization.  (cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
common stock.  As a result, the Sponsors may have conflicting interests with holders of our common shares. 

Furthermore, conflicts of interest could arise in the future between us, on the one hand, and the Sponsors, on the other hand, 
concerning  among  other  things,  a  decision  whether  to  modify  or  limit  the  IDRs  in  the  future  or  potential  competitive  business 
activities or business opportunities.  These conflicts of interest may not be resolved in our favor. 

Antero Resources does not own our general partner and is under no obligation to adopt a business strategy that favors us. 

The directors and officers of Antero Resources have a fiduciary duty to make decisions in the best interests of the owners of 
Antero Resources,  which  may be contrary to our interests.   Antero Resources has dedicated acreage to, and entered into long-term 
contracts  for gathering and compression services on,  Antero Midstream(cid:182)(cid:86)(cid:3) (cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:86)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3) (cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term 
contracts for receiving water services.  However, while Antero Midstream has a 20-year right of first offer to provide processing and 
fractionation services to Antero Resources, subject to certain exceptions, Antero Resources is under no obligation to consider whether 
any  future  drilling  plans  would  create  beneficial  opportunities  for  Antero  Midstream.    Additionally,  although  Antero  Midstrea(cid:80)(cid:182)(cid:86)(cid:3)
water  services  agreement  and  the  processing  and  fractionation  services  provided  by  the  Joint  Venture  are  supported  by  minimum 
(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)(cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:79)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)
high-pressure  pipelines  and  compressor  stations  constructed  at  An(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:85)(cid:72)(cid:84)(cid:88)(cid:72)(cid:86)(cid:87)(cid:3) (cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:44)(cid:51)(cid:50)(cid:17)(cid:3) (cid:3) (cid:36)(cid:3)
(cid:85)(cid:72)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:87)(cid:3) (cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:55)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:83)(cid:88)(cid:87)(cid:3) (cid:89)(cid:82)(cid:79)(cid:88)(cid:80)(cid:72)(cid:86)(cid:3) (cid:82)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:86)(cid:92)(cid:86)(cid:87)(cid:72)(cid:80)(cid:86)(cid:3) (cid:69)(cid:92)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:68)(cid:71)(cid:89)(cid:72)(cid:85)(cid:86)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86), financial condition, results of operations and ability 
to make quarterly cash distributions to its unitholders, including us. 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:87)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:17) 

Our partnership agreement provides that our general partner will be restricted from engaging in any business activities other 
than acting as our general partner and those activities incidental to its ownership of interests in us.  The restrictions contained in our 
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)ement are subject to a number of exceptions.  Affiliates of our general partner and the 
Sponsors will not be prohibited from engaging in other businesses or activities that might be in direct competition with us except to 
the extent they compete using our confidential information. 

Our  general  partner  has  a  call  right  that  may  require  shareholders  to  sell  their  common  shares  at  an  undesirable  time  or 
price. 

If at any time more than 80% of our outstanding common shares on a combined basis (including common shares issued in 
connection  with  the  redemption  of  Series B  Units)  are  owned  by  our  general  partner,  the  Sponsors  (or  certain  transferees)  or  their 
respective affiliates, our general partner will have the right (which it may assign to any of its affiliates, the Sponsors or us), but not the 
obligation, to acquire all, but not less than all, of the remaining common shares  held by public shareholders at a price equal to the 
greater of (x) the current market price of such shares as of the date three days before notice of exercise of the call right is first mailed 
and  (y) the  highest  price  paid  by  our  general  partner,  the  Sponsors  (or  certain  transferees  in  private,  non-exchange  transactions)  or 
their  respective  affiliates  for  such  shares  during  the  90 day  period  preceding  the  date  such  notice  is  first  mailed.    As  a  result, 
shareholders  may  be  required  to  sell  common  shares  at  an  undesirable  time  or  price  and  may  not  receive  any  return  of  or  on  their 
investment.  Shareholders may also incur a tax liability upon a sale of common shares. 

As  our  only  cash-generating  assets  consists  of  our  capital  interest  in  IDR LLC  and  its  related  direct  interests  in  Antero 

Midstream, our tax risks are primarily derivative of the tax risks associated with an investment in Antero Midstream. 

Tax Risks 

18 

The tax treatment of Antero Midstream depends on its status as a partnership for U.S. federal income tax purposes, as well as 
it not being subject to a material amount of entity-(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:44)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:11)(cid:179)(cid:44)(cid:53)(cid:54)(cid:180)(cid:12)(cid:3)(cid:90)(cid:72)(cid:85)e to treat Antero 
Midstream as a corporation for U.S. federal income tax purposes or Antero Midstream was to become subject to additional 
amounts of entity-level taxation for state tax purposes, it would reduce the amount of cash available for distribution to us. 

We own all of the capital interests in IDR LLC, which directly owns all of the IDRs in Antero Midstream.  Accordingly, the 
value of our investment in IDR LLC, as well as the anticipated after-tax economic benefit of an investment in our common shares, 
depends largely on Antero Midstream being treated as a partnership for U.S. federal income tax purposes, which requires that  at least 
(cid:28)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72) year of its existence consist of qualifying income, as that term is defined in 
Section (cid:26)(cid:26)(cid:19)(cid:23)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)(cid:38)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:20)(cid:28)(cid:27)(cid:25)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:71)(cid:72)(cid:180)(cid:12)(cid:17) 

Despite  the  fact  that  Antero  Midstream  is  a  limited  partnership  under  Delaware  law  and,  unlike  us,  has  not  elected  to  be 
treated as a corporation for U.S. federal income tax purposes, it is possible, under certain circumstances, for Antero Midstream to be 
treated as a corporation for U.S. federal income tax purposes.  Although we do not believe, based on its current operations, that Antero 
Midstream will be so treat(cid:72)(cid:71)(cid:15)(cid:3)(cid:68)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:76)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:87)(cid:85)(cid:72)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)
income  tax  purposes.    A  change  in  current  law  could  also  cause  Antero  Midstream  to  be  treated  as  a  corporation  for  U.S.  federal 
income tax purposes or otherwise subject Antero Midstream to entity-level taxation.  In addition, several states have been evaluating 
ways to subject partnerships to entity-level taxation through the imposition of state income, franchise and other forms of taxation. 

If Antero Midstream were treated as a corporation for U.S. federal income tax purposes, it would pay federal income tax on 
its  taxable  income  at  the  applicable  corporate  tax  rate  and  would  likely  pay  state  income  taxes  at  varying  rates.    Distributions  to 
Antero Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:44)(cid:39)(cid:53) LLC, would generally be taxed again as corporate distributions, and no income, gains, 
(cid:79)(cid:82)(cid:86)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:72)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:68)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80) as 
a  corporation,  its  cash  available  for  distribution  would  be  substantially  reduced.    Therefore,  treatment  of  Antero  Midstream  as  a 
corporation would result in a material reduction in the anticipated cash flows and after-tax return to us, likely causing a substantial 
reduction in the value of our common shares. 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:73)(cid:3) (cid:68)(cid:3) (cid:79)(cid:68)(cid:90)(cid:3)(cid:76)(cid:86)(cid:3)(cid:72)(cid:81)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:72)(cid:91)(cid:76)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:79)(cid:68)(cid:90)(cid:3)(cid:76)(cid:86)(cid:3) (cid:80)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:83)(cid:85)(cid:72)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)
manner that subjects Antero Midstream to taxation as a corporation or otherwise subjects Antero Midstream to entity-level taxation for 
(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:80)ounts 
may  be  adjusted  to  reflect  the  impact  of  that  law  or  interpretation  on  Antero  Midstream.    If  this  were  to  happen,  the  amount  of 
distributions  IDR LLC  receives  from  Antero  Midstream  and  our  resulting  cash  flows  could  be  reduced  substantially,  which  would 
adversely affect our ability to pay distributions. 

The tax treatment of publicly traded partnerships such as Antero Midstream could be subject to potential legislative, judicial 
or administrative changes and differing interpretations, possibly applied on a retroactive basis. 

The present U.S. federal income tax treatment of publicly traded partnerships, including Antero Midstream, may be modified 
by administrative, legislative  or judicial changes, or differing interpretations at any time.  From time to time, members of  Congress 
propose and consider such substantive changes to the existing U.S. federal income tax laws that affect publicly traded partnerships, 
including  a  prior  legislative  proposal  that  would  have  eliminated  the  qualifying  income  exception  to  the  treatment  of  all  publicly 
traded partnerships as corporations upon which Antero Midstream relies for its treatment as a partnership for U.S. federal income tax 
purposes. 

In addition, the Treasury Department has issued, and in the future may issue, regulations interpreting those laws that affect 
publicly traded partnerships.  Although there are no current legislative or administrative proposals, there can be no assurance that there 
(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:92)(cid:3)(cid:39)(cid:72)(cid:83)(cid:68)(cid:85)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:83)(cid:85)(cid:72)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:79)(cid:76)(cid:73)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:70)ome rules 
in a manner that c(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:87)(cid:82)(cid:3)(cid:84)(cid:88)(cid:68)(cid:79)(cid:76)(cid:73)(cid:92)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:17) 

Any  modification  to  the  U.S.  federal  income  tax  laws  may  be  applied  retroactively  and  could  make  it  more  difficult  or 
impossible for Antero Midstream to meet the exception for certain publicly traded partnerships to be treated as partnerships for U.S. 
federal income tax purposes.  Antero Midstream is unable to predict whether any changes or other proposals will be reintroduced or 
ultimately  will  be  enacted.    Any  future  legislative  changes  could  negatively  impact  the  value  of  our  indirect  investment  in  Antero 
Midstream. 

19 

 
Item 1B.  Unresolved Staff Comments 

Not applicable. 

Item 3.  Legal Proceedings 

Our operations are subject to a variety of risks and disputes normally incident to our business.  As a result, we may, at any 
given time, be a defendant in various legal proceedings and litigation arising in the ordinary course of business.  However,  we are not 
currently subject to any material litigation. 

Item 4.  Mine Safety Disclosures 

Not applicable. 

PART II 

Item (cid:24)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:15)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:48)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:44)(cid:86)(cid:86)(cid:88)(cid:72)(cid:85)(cid:3)(cid:51)(cid:88)(cid:85)(cid:70)(cid:75)(cid:68)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86) 

Common Shares 

(cid:50)(cid:88)(cid:85)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:79)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:49)(cid:60)(cid:54)(cid:40)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:85)(cid:68)(cid:71)(cid:72)(cid:71)(cid:3) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:86)(cid:92)(cid:80)(cid:69)(cid:82)(cid:79)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:17)(cid:180)(cid:3)   On  February 8,  2019,  our  common 
shares  were  held  by  57  holders  of  record.    The  number  of  holders  does  not  include  the  holders  for  whom  shares  are  held  in  a 
(cid:179)(cid:81)(cid:82)(cid:80)(cid:76)(cid:81)(cid:72)(cid:72)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:86)(cid:87)(cid:85)(cid:72)(cid:72)(cid:87)(cid:180)(cid:3)(cid:81)(cid:68)(cid:80)(cid:72)(cid:17) 

Securities Authorized for Issuance Under Equity Compensation Plans 

On April 17, 2017, our general partner adopted the Antero Midstream GP LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)
pursuant to  which certain  non-employee directors of our general partner and certain officers, employees, and consultants of  Antero 
Resources are eligible to receive common shares representing limited partner interests in AMGP.  An aggregate of 930,851 common 
shares  may be delivered pursuant to awards under the  AMGP LTIP, subject to customary adjustments.  Common shares have been 
granted  to  each  of  the  independent  directors  of  our  general  partner  under  the  AMGP  LTIP.    Please  read  the  information  under 
(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) 11.  Executive Compensation(cid:178)Compensation Discussion and Analysis (cid:177) (cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:180) 

Item 6.  Selected Financial Data 

The following table presents our selected historical financial data, for the periods and as of the dates indicated, for AMGP 
and our predecessor.  AMGP was originally formed as ARMM to become the general partner of Antero Midstream, and converted into 
a limited partnership on May 4, 2017 in connection with our IPO. 

The selected statement of operations data and statement of cash flows data for the years ended December 31, 2016, 2017, and 
2018 and the balance sheet data as of December 31, 2017 and 2018 are derived  from our audited consolidated financial statements 
included in Item 8 of this Annual Report on Form 10-K.  The selected statement of operations data and statement of cash flows data 
for the  year ended December 31, 2015 and the  selected balance sheet data as of December 31, 2015 and 2016 is derived from our 
audited  consolidated  financial  statements  not  included  in  Item  8  of  this  Annual  Report  on  Form  10-K.    There  were  no  IDR 
distributions prior to 2015, and therefore, we had no activity prior to 2015. 

20 

 
 
 
 
The selected financial data presented below are qualified in their entirety by reference to, and should be read in conjunction 
(cid:90)(cid:76)(cid:87)(cid:75)(cid:15)(cid:3) (cid:179)(cid:44)(cid:87)(cid:72)(cid:80) (cid:26)(cid:17)(cid:3) (cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3) (cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:38)(cid:82)(cid:81)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:53)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:180)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)
financial statements and related notes included elsewhere in this report.  

(in thousands, except per share amounts) 
Statement of operations data: 
Total income 
Total expenses 
Net income and comprehensive income 

Net income per common share(cid:177)basic and diluted 
Distributions declared per share 

Balance sheet data (at period end): 
Cash and cash equivalents 
Total assets 
Total capital 

Cash flow data: 
Net cash provided by operating activities 
Net cash used in financing activities 

2015 

2016 

2017 

2018 

December 31, 

$ 

$ 

$ 

$ 

 1,264  
 (cid:178)  
 781  

 (cid:178)  
 (cid:178)  

 72  
 1,041  
 558  

 295  
 (223)  

 16,944  
 814  
 9,711  

 (cid:178)  
 (cid:178)  

 9,609  
 17,369  
 10,269  

 69,720  
 41,134  
 2,325  

 0.03  
 0.161  

 5,987  
 29,759  
 15,608  

 142,906  
 43,987  
 66,608  

 0.33  
 0.541  

 2,822  
 47,705  
 30,861  

 9,537  
 (cid:178)  

 28,080  
 (31,702) 

 83,531  
 (86,696)  

21 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
Item (cid:26)(cid:17)(cid:3)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)Analysis of Financial Condition and Results of Operations 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with 
our  consolidated  financial  statements  and  related  notes  included  elsewhere  in  this  report.    The  information  provided  below 
supplements, but does not form part of, our financial statements.  This discussion contains forward-looking statements that are based 
on the views and beliefs of our management, as well as assumptions and  estimates made by our management.  Actual results could 
differ  materially  from  such  forward-looking  statements  as  a  result  of  various  risk  factors,  including  those  that  may  not  be  in  the 
control of management.  For further information on items that could impact our future operating performance or financial condition, 
(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) (cid:20)(cid:36)(cid:17)(cid:3)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:41)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:179)(cid:38)(cid:68)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:41)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)-(cid:47)(cid:82)(cid:82)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)
We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable 
law. 

References in this Annual Report on Form 10-(cid:46)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)
prior  to  May 4,  2017,  refer  to  our  predecessor,  Antero  Resources  Midstream  Management (cid:47)(cid:47)(cid:38)(cid:17)(cid:3) (cid:3) (cid:53)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:15)(cid:180)(cid:3) (cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)
(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3)(cid:69)(cid:72)(cid:74)(cid:76)(cid:81)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:48)(cid:68)(cid:92) 4, 2017 and prospectively, refer Antero Midstream GP LP. 

Overview 

We are a Delaware limited partnership that is taxed as a corporation for U.S. federal income tax purposes.  We own 100% of 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-economic general partner interest 
(cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3) (cid:47)(cid:51)(cid:3) (cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3) (cid:36)(cid:48)(cid:12)(cid:3) (cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:90)(cid:72)(cid:3) (cid:82)(cid:90)(cid:81)(cid:3) (cid:68)ll  of  the  Series (cid:36)(cid:3) (cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3) (cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) A 
(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:17)(cid:3)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)LC 
also has Series (cid:37)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3)the holders to receive up to 6% of the distributions that 
Antero Midstream makes on the IDRs in excess of $7.5 million per quarter, subject to certain vesting conditions.  We receive  at least 
94%  of  the  cash  distributions  paid  by  Antero  Midstream  on  the  IDRs.    Antero  Midstream  is  a  growth-oriented  master  limited 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:24)(cid:21)(cid:17)(cid:27)(cid:8)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3)(cid:36)(cid:53)(cid:12)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:90)(cid:81)(cid:15)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
develop midstream energy infrastructure primarily to service Antero Resour(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:36)(cid:83)(cid:83)(cid:68)(cid:79)(cid:68)(cid:70)(cid:75)(cid:76)(cid:68)(cid:81)(cid:3) (cid:37)(cid:68)(cid:86)(cid:76)(cid:81)(cid:182)(cid:86)(cid:3) (cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3) (cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:56)(cid:87)(cid:76)(cid:70)(cid:68)(cid:3) (cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3) (cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:58)(cid:72)(cid:86)(cid:87)(cid:3) (cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3) (cid:3) (cid:58)(cid:72)(cid:3) (cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
strategically  located  assets  and  integrated  relationship  with  Antero  Resources  position  it  to  be  a  leading  Appalachian  midstream 
provider across the full midstream value chain. 

Our  revenues  are  generated  solely  from  the  cash  distributions  we  receive  from  Antero  Midstream  through  our  interests  in 
IDR LLC.    Because  our  success  is  dependent  upon  the  operations  and  management  of  Antero  Midstream  and  its  resulting 
(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80) 10-K  for  the year  ended  December 31,  2018,  has  been  included  in  this 
filing as Exhibit 99.1 and incorporated herein by reference. 

Simplification Agreement 

On  February  26,  2018,  we  announced  that  the  board  of  directors  of  our  general  partner  formed  a  conflicts  committee 
composed  solely  of  independent  directors  in  conjunction  with  the  formation  of  a  conflicts  committee  at  Antero  Midstream  and  a 
special committee at Antero Resources.  (cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)
transactions  involving  us,  on  October  9,  2018,  we  announced  that  we  and  certain  of  our  affiliates  entered  into  a  Simplification 
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(cid:69)(cid:72)(cid:3) (cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3) (cid:73)(cid:85)(cid:82)(cid:80)(cid:3) (cid:68)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:3) (cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:90)(cid:72)(cid:3) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:86)(cid:3) (cid:179)(cid:49)(cid:72)(cid:90)  (cid:36)(cid:48)(cid:15)(cid:180)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3)
acquire  all  of  the  outstanding  common  units  of  Antero  Midstream.  Each  of  our  issued  and  outstanding  common  shares  will  be 
(cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:89)(cid:68)(cid:79)(cid:72)(cid:81)(cid:87)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)  Based on the 
number of outstanding  Antero Midstream common units and  AMGP common shares  and their respective closing  sales prices as of 
October 8, 2018 (the last trading day before the day the Simplification Agreement was announced), the approximately 17.35 million 
shares of New AM common stock expected to be transferred pursuant to an exchange of the issued and outstanding Series B Units (the 
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excess of $2 billion (representing approximately 3.4% of the total pro forma market capitalization of New AM). 

Further, one of our indirect, wholly-owned subsidiaries will merge with and into Antero Midstream with Antero Midstream 
surviving as an indirect, wholly-(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:36)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:3)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15) 

22 

will  be  con(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:15)(cid:3) (cid:68)(cid:87)(cid:3) (cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:83)(cid:85)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:86)(cid:3) (cid:86)(cid:72)(cid:87)(cid:3) (cid:73)(cid:82)(cid:85)(cid:87)(cid:75)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) (cid:82)(cid:81)(cid:72)(cid:3) (cid:82)(cid:73)(cid:29)(cid:3) (cid:11)(cid:76)(cid:12)(cid:3) (cid:7)(cid:22)(cid:17)(cid:23)(cid:20)(cid:24)(cid:3) (cid:76)(cid:81)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:20)(cid:17)(cid:25)(cid:22)(cid:24)(cid:19)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:75)(cid:72)(cid:79)(cid:71)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3) (cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3) (cid:11)(cid:76)(cid:76)(cid:12)(cid:3) (cid:20)(cid:17)(cid:25)(cid:22)(cid:24)(cid:19)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:83)(cid:79)(cid:88)(cid:86)(cid:3) (cid:68)(cid:81)(cid:3)
(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3) (cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:72)(cid:84)(cid:88)(cid:68)(cid:79)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:84)(cid:88)(cid:82)(cid:87)(cid:76)(cid:72)(cid:81)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:11)(cid:36)(cid:12) $3.415  and  (B) the  average  of  the  20-day 
volume-weighted  average  trading  price  per  AMGP  common  share  prior  to  the  final  election  day  for  AM  Public  Unitholders  (the 
(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:22)(cid:17)(cid:23)(cid:20)(cid:24)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:79)(cid:88)s 
an additional amount of cash equal to the product of (A) 1.6350 and (B) (cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:36)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)ive $3.00 
in  cash  without  interest  and  1.60(cid:21)(cid:22)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:53)(cid:3) (cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3) (cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:75)(cid:72)(cid:79)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3) (cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:68)(cid:86)(cid:3) (cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3)
Conversion,  the  Merger,  the  Series  B  Exchange  and  the  other  transactions  contemplated  by  the  Simplification  Agreement  are 
(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:180) 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:86)(cid:72)(cid:72)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

Related Tra(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:180) 

Our Sources of Revenue 

Our  revenues  are  generated  solely  from  the  cash  distributions  we  receive  from  Antero  Midstream  through  our  interests  in 
IDR LLC.  As a result of our ownership interest in IDR LLC, we are positioned to grow our distributions disproportionately relative to 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:85)(cid:82)(cid:90)(cid:87)(cid:75)(cid:3)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:79)(cid:92)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:85)(cid:76)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)our cash 
available for distribution to our shareholders through the execution by Antero Midstream of its business strategy.  Unless we directly 
acquire and hold assets or businesses in the future, our revenues will continue to be generated solely from the cash distributions we 
receive from Antero Midstream through our interests in IDR LLC. 

Financial Presentation 

We own the general partner interest in Antero Midstream through our interest in AMP GP and own all of the capital interests 
in IDR LLC, which we control as managing member.  We have no separate operating activities apart from those conducted by Antero 
(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:79)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)IDRs.  Our 
financial statements are based on the equity method of accounting for our investment in Antero Midstream. 

Cash Distributions 

We  distribute  cash  available  for  distribution  to  our  shareholders.    Cash  available  for  distribution  is  the  cash  distribution 
received  from  Antero  Midstream  reduced  by  reserves  for  estimated  federal  and  state  income  taxes,  general  and  administrative 
expenses, and reserves for other purposes deemed necessary by the board of directors of our general partner.  Distributable cash for 
the three months ended December 31, 2018 was as follows: 

(in thousands) 
Cash distributions from Antero Midstream Partners LP 

Cash reserved for distributions to unvested Series B units of IDR LLC 
Cash distribution to vested Series B units of IDR LLC 

Cash distributions to Antero Midstream GP LP 

General and administrative expenses 
Interest expense, net 
Conflicts Committee legal and advisory fees included in G&A expense(1) 
Provision and reserve for income taxes 

Cash available for distribution 

Three Months Ended 
December 31, 2018 

$ 

$ 

 43,492   
 (710)  
 (1,419)  
 41,363   
 (3,184)  
 (55)  
 2,753   
 (10,240)  
 30,637   

(1)  General and administrative expenses related to the formation and ongoing evaluations of the conflicts committee.  See Note 2(cid:178)

Summary of Significant Accounting Policies to the consolidated financial statements. 

23 

 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The board of directors of our general partner has declared a cash distribution of $0.164 per share, or a total of approximately 
$31  million,  for  the  quarter  ended  December 31,  2018.    The  distribution  will  be  payable  on  February  21,  2019  to  shareholders  of 
record as of February 1, 2019. 

Items Affecting Comparability of Our Financial Results 

Certain  of  the  historical  financial  results  discussed  below  may  not  be  comparable  to  future  financial  results  primarily  as  a 
result of the (cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:3)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:15)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)
(cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:75)(cid:68)(cid:89)(cid:72)(cid:3) (cid:68)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:88)(cid:86)(cid:17)(cid:3) (cid:3) (cid:39)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:44)(cid:39)(cid:53)(cid:86)(cid:3) (cid:69)(cid:72)(cid:74)(cid:68)(cid:81)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:73)ourth 
quarter of 2015 and have increased significantly since that time as the IDRs are entitled to a greater marginal percentage interest in 
distributions. 

(cid:44)(cid:81)(cid:3) (cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3) (cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:3) (cid:71)(cid:82)(cid:3) (cid:81)ot  reflect  the 
incremental expenses we are now incurring as a result of being a publicly traded company, and such results include the non-recurring 
costs we incurred in connection with the IPO.  Our historical results of operations for the year ended December 31, 2017 also reflect a 
U.S. federal corporate tax rate of 35%.  Effective January 1, 2018, the U.S. federal corporate tax rate was reduced from 35%  to 21%.  
Accordingly, our historical results of operations will reflect a higher U.S. federal corporate tax rate in comparison to our current and 
future financial results. 

Certain  of  the  historical  financial  results  discussed  below  may  not  be  comparable  to  future  financial  results  primarily  as  a 
result  of  the  significant  increase  in  the  scope  of  Antero  Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:82)(cid:89)(cid:72)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:79)(cid:68)(cid:86)(cid:87)(cid:3) (cid:86)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79) (cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
gathering and compression and water handling and treatment systems are relatively new, as a substantial portion of these assets have 
been built  within the last five years.  Accordingly,  An(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)
increase  in  its  operations.    Similarly,  Antero  Resources  has  experienced  significant  changes  in  its  production  and  drilling  and 
completion schedule over that same period.  As our (cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)
(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3) (cid:68)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3) (cid:88)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:79)(cid:92)(cid:15)(cid:3)(cid:76)(cid:87)(cid:3) (cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:71)(cid:76)(cid:73)(cid:73)(cid:76)(cid:70)(cid:88)(cid:79)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:82)(cid:77)ect 
trends from our historical financial data going forward.  

Results of Operations 

Year Ended December 31, 2017 Compared to Year Ended December 31, 2018 

(in thousands) 
Equity in earnings of Antero Midstream Partners LP 

$ 

Total income 

General and administrative expense 
Equity-based compensation 
Total operating expenses 

Operating income  
Interest expense, net 

Income before income taxes 

Provision for income taxes 

Net income and comprehensive income 

 $ 

Year Ended December 31,  
2018 
2017 
 142,906   
 142,906   
 8,740   
 35,111   
 43,851   
 99,055   
 (136)  
 98,919   
 (32,311)  
 66,608   

 69,720   
 69,720   
 6,201  
 34,933   
 41,134   
 28,586   
 (cid:178)  
 28,586   
 (26,261) 
 2,325  

Amount of 
Increase 
 or Decrease 

Percentage 
Change 

 73,186  
 73,186  
 2,539  
 178   
 2,717  
 70,469  
 (136) 
 70,333  
 (6,050) 
 64,283  

 105  % 
 105  % 
 41  % 
 1  % 
 7  % 
 247  % 
*   
 246  % 
 23  % 
 2,765  % 

24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
  
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
*  Not meaningful or applicable.  

Equity in earnings of Antero Midstream Partners LP.  Equity in earnings of Antero Midstream increased from $69.7 million 
for  the year  ended  December 31,  2017  to  $142.9  million  for  the year  ended  December (cid:22)(cid:20)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:83)(cid:72)(cid:85)-unit 
distribution increased to $0.47 in the year ended December 31, 2018 from $0.365 for the year ended December 31, 2017, resulting in 
an increase in distributions on the IDRs.  IDR LLC receives a portion of Antero Midstream distributions based on a tiered approach, in 
which the percentage received of the total distribution increases at certain levels.  The highest tier, which was met in both periods, in 
(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:86)(cid:3)(cid:7)(cid:19)(cid:17)(cid:21)(cid:24)(cid:24)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:87)(cid:82) 50% 
of such incremental distribution amounts.   

General and administrative expenses.   General and administrative expenses increased from $6.2 million for the year ended 
December 31,  2017  to  $8.7  million  for  the year  ended  December 31,  2018.    General  and  administrative  expenses  during  the  year 
ended  December  31,  2017  reflect  $5.1  million  of  costs  incurred  related  to  our  IPO.    For  the  year  ended  December  31,  2018,  we 
(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:7)(cid:25)(cid:17)(cid:28)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:81)(cid:74)(cid:82)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:40)(cid:91)cluding 
expenses related to the IPO in 2017 and costs incurred by the conflicts committee in 2018, general and administrative expenses were 
(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:3) (cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3) (cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3) (cid:22)(cid:20)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:26)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3) (cid:3) (cid:54)(cid:72)(cid:72)(cid:3) (cid:179)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:3) (cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)
elsewhere herein for discussion of the Transactions.  

Equity-based compensation expenses.  Equity-based compensation expenses remained relatively consistent at $34.9 million 
and $35.1 million for the years ended December 31, 2017 and 2018, respectively.  See Note 5(cid:178)Long-Term Incentive Plans(cid:178) to the 
consolidated financial statements. 

Interest  expense,  net.    Interest  expense,  net  was  $136  thousand  for  the  year  ended  December  31,  2018,  including  $150 
thousand of interest expense and $14 thousand of interest income.  Interest expense in 2018 is primarily due to the amortization of 
deferred financing costs incurred under the Credit Facility (defined below), which was entered into on May 9, 2018.  See Note 3(cid:178)
Credit Facility(cid:178) to the consolidated financial statements. 

Income  tax  expense.    Income  tax  expense  increased  from  $26.3  million  for  the year  ended  December 31,  2017  to  $32.3 
million for the year ended December 31, 2018.  The increase is primarily due to higher taxable income as a result of the increase in 
equity in earnings of Antero Midstream related to the IDRs, partially offset by the decrease in the U.S. corporate income tax rate from 
35% to 21% beginning in 2018. 

The difference between income tax expense and expected income tax expense for financial statement purposes computed by 
applying the federal statutory rate of 21% to pre-tax income is caused by nondeductible equity-based compensation and the effect of 
state income taxes. 

Net  income  and  comprehensive  income.    Net  income  and  comprehensive  income  increased  from  $2.3  million  for  the year 
ended December 31, 2017 to $66.6 million for the year ended December 31, 2018.  The increase was primarily due to an increase in 
equity  in  earnings  of  Antero  Midstream,  partially  offset  by  an  increase  in  general  and  administrative  expenses  and  income  tax 
expenses.  

25 

 
 
Year Ended December 31, 2016 Compared to Year Ended December 31, 2017 

(in thousands) 
Equity in earnings of Antero Midstream Partners LP 

Total income 

General and administrative expense 
Equity-based compensation 
Total operating expenses 

Income before income taxes 

Provision for income taxes 

Net income and comprehensive income 

*  Not meaningful or applicable.  

Year Ended December 31, 
2016 
2017 
 16,944   
 16,944   
 814   
 (cid:178)   
 814   
 16,130   
 (6,419)  
 9,711   

 69,720   
 69,720   
 6,201   
 34,933   
 41,134   
 28,586   
 (26,261)  
 2,325   

$ 

$ 

Amount of 
Increase 
 or Decrease 

Percentage 
Change 

 52,776  
 52,776  
 5,387  
 34,933  
 40,320  
 12,456  
 (19,842) 
 (7,386) 

 311  % 
 311  % 
 662  % 
*   

 4,953 % 
 77  % 
 309  % 
 (76)% 

Equity in earnings of Antero Midstream Partners LP. Equity in earnings of Antero Midstream increased from $16.9 million 
for  the year  ended  December 31,  2016  to  $69.7  million  for  the year  ended  December (cid:22)(cid:20)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:26)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:83)(cid:72)(cid:85)-unit 
distribution  increased  in  the  year  ended  December  31,  2017  from  the  year  ended  December  31,  2016,  resulting  in  an  increase  in 
distributions on the IDRs.  In addition, IDR LLC receives a portion of Antero Midstream distributions based on a tiered approach, in 
which  the  percentage  received  of  the  total  distribution  increases  at  certain  levels.    The  highest  tier,  in  which  cash  distributions  to 
Ant(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:86)(cid:3)(cid:7)(cid:19)(cid:17)(cid:21)(cid:24)(cid:24)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:76)(cid:87)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:87)(cid:82)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:68)(cid:76)(cid:71)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:76)s 
tier was met in each quarter of 2017, opposed to only the third and fourth quarter of 2016, which contributed to the increase in our 
equity in earnings of Antero Midstream. 

General  and administrative  expenses.  General  and  administrative  expenses  increased  from  $0.8  million  for  the year  ended 
December 31,  2016  to  $6.2 million  for  the year  ended  December 31, 2017.   During  the year  ended  December 31,  2016,  we  did  not 
incur any significant general and administrative costs; however, during the year ended December 31, 2017, we incurred approximately 
$5.1 million of  general and administrative costs in connection  with our IPO and $1.1  million of expenses related to being a public 
company. 

Equity-based  compensation  expenses.  Equity-based  compensation  expenses  was  $34.9  million  for  the year  ended 
December 31, 2017 due to the issuance of equity-based compensation in the form of Series B Units on December 31, 2016, which vest 
over a three-year period.  See Note 5(cid:178)Long-Term Incentive Plans(cid:178) to the consolidated financial statements. 

Income tax expense. Income tax expense increased from $6.4 million for the year ended December 31, 2016 to $26.2 million 
for the year ended December 31, 2017.  The increase is primarily due to higher taxable income as a result of the increase in equity in 
earnings of Antero Midstream  related to the IDRs, net of the increase in general and administrative expenses. 

The difference between income tax expense and expected income tax expense for financial statement purposes computed by 
applying the federal statutory rate of 35% to pre-tax income is caused by nondeductible equity-based compensation and IPO expenses, 
and the effect of state income taxes. 

Net  income  and  comprehensive  income.  Net  income  and  comprehensive  income  decreased  from  $9.7  million  for  the year 
ended December 31, 2016 to $2.3 million for the year ended December 31, 2017.  The decrease was primarily due to an  increase in 
equity-based compensation and general and administrative expenses, partially offset by the increase in equity in earnings of Antero 
Midstream in 2017.  

Capital Resources and Liquidity 

Sources and Uses of Cash 

As a result of our interest in IDR LLC, we will receive at least 94% of the cash distributions paid by Antero Midstream on its 
IDRs.    Our  interest  in  the  IDR  distributions  is  our  only  cash-generating  asset.    We  expect  that  income  attributable  to  the  IDR 
distributions  from  Antero  Midstream  will  be  adequate  to  meet  our  working  capital  requirements  and  expected  quarterly  cash 
distributions  for  at  least  the  next  twelve months.    At  December  31,  2018,  we  had  a  working  capital  deficit  due  to  our  income  tax 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
payable,  which  is  based  on  equity  in  earnings  from  unconsolidated  affiliates  for  the  year  ended  December  31,  2018.    The  cash 
distribution attributable to our equity in earnings for the three months ended December 31, 2018 will be received in the first quarter of 
2019 when Antero Midstream declares and pays the cash distribution for the fourth quarter, and will be received prior to the  due date 
of our tax payment.   

The following table and discussion present a summary of our combined net cash provided by (used in)  operating activities 

and financing activities for the periods indicated: 

(in thousands) 
Net cash provided by operating activities 
Net cash used in financing activities 
Net increase (decrease) in cash 

Cash Flows Provided by Operating Activities 

2016 

Year Ended December 31,  
2017 

$ 

$ 

 9,537  
 (cid:178)  
 9,537  

 28,080   
 (31,702)  
 (3,622)  

2018 

 83,531  
 (86,696)  
 (3,165)  

Net  cash  provided  by  operating  activities  was  $9.5  million,  $28.1  million,  and  $83.5  million  for  the  years  ended 
December 31, 2016, 2017, and 2018, respectively.  The increase in cash flows from operating activities in 2018 from 2017 of $55.5 
million was due to an increase in distributions received from Antero Midstream of $69.7 million, partially offset by a $12.7  million 
increase  in  cash  income  taxes  paid.    These  changes,  together  with  other  working  capital  items,  resulted  in  the  net  increase  in  cash 
provided by operating activities.   

The  increase  in  cash  flows  from  operating  activities  in  2017  from  2016  of  $18.5  million  was  due  to  an  increase  in 
distributions from Antero Midstream of $43.1 million in 2017 compared to 2016, partially offset by a $5.5 million increase in general 
and administrative expenses (primarily attributable to the IPO) and a $19.1 million payment in 2017 for 2016 and 2017 income taxes.  
These changes, together with other working capital items, resulted in the net increase in cash provided by operating activities. 

Cash Flows Used in Investing Activities 

We did not have any investing cash flows activities during the years ended December 31, 2016, 2017 or 2018. 

Cash Flows Used in Financing Activities 

Net  cash  used  in  financing  activities  increased  from  $31.7  million  in  2017  to  $86.7  million  in  2018,  an  increase  of  $55.0 
million.  The increase was due to an increase in quarterly cash distributions to our shareholders of $68.2 million, a decrease of $15.7 
million in liquidating distributions to Antero Resources Investment LLC, the sole member of ARMM for all periods prior to our IPO, 
and  an  increase  in  distributions  to  Series  B  unitholders  of  $2.3  million.    Net  cash  used  in  financing  activities  for  the  year  ended 
December 31,  2017  consisted  of  $15.7  million  in  pre-IPO  income  distributed  to  Antero  Resources  Investment  LLC  prior  to  its 
liquidation and $16.0 million in quarterly cash distributions to our shareholders.  We did not have any financing cash flows activities 
during the year ended December 31, 2016. 

Credit Facility 

(cid:50)(cid:81)(cid:3)(cid:48)(cid:68)(cid:92)(cid:3)(cid:28)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:90)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:12)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:69)(cid:68)(cid:81)(cid:78)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75) provides for a line of credit of up 

to $12 million.  The maturity date of the Credit Facility is May 6, 2019. 

The  Credit  Facility  is  guaranteed  by  IDR  LLC  and  secured  by  a  pledge  of  the  Series  A  Units  in  IDR  LLC  and  the 

membership interests in AMP GP.  

Interest is payable on borrowings at a variable rate based on the base rate plus a margin rate of interest equal to 1.00% per 
annum.    The  base  rate  is  the  highest  of  (i)  the  Federal  Funds  Rate  plus  ½  of  1%,  (ii)  the  rate  of  interest  in  effect  for  such  day  as 
(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)(cid:3)(cid:68)(cid:81)(cid:81)(cid:82)(cid:88)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:47)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:179)(cid:83)(cid:85)(cid:76)(cid:80)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:72)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:88)(cid:85)(cid:82)(cid:71)(cid:82)(cid:79)(cid:79)(cid:68)(cid:85)(cid:3)(cid:53)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:20)(cid:17)(cid:19)(cid:19)(cid:8)(cid:17)(cid:3) 

The  Credit  Facility  contains  customary  events  of  default  and  various  affirmative  and  negative  covenants,  including  a 
requirement to completely repay amounts outstanding under the line of credit at least once each fiscal quarter.  We were in compliance 
with all of the financial covenants under the Credit Facility as of December 31, 2018. 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2018, we had no borrowings under the Credit Facility. 

Critical Accounting Policies and Estimates 

The  discussion  and  analysis  of  our  financial  condition  and  results  of  operations  are  based  upon  our  consolidated  financial 
statements,  which  have  been  prepared  in  accordance  with  GAAP.    The  preparation  of  our  financial  statements  requires  us  to  make 
estimates  and  assumptions  that  affect  the  reported  amounts  of  assets,  liabilities,  revenues  and  expenses,  and  related  disclosure  of 
contingent  assets  and  liabilities.    Certain  accounting  policies  involve  judgments  and  uncertainties  to  such  an  extent  that  there  is 
reasonable  likelihood  that  materially  different  amounts  could  have  been  reported  under  different  conditions,  or  if  different 
assumptions  had  been  used.    We  evaluate  our  estimates  and  assumptions  on  a  regular  basis.    We  base  our  estimates  on  historical 
experience and various other assumptions that are believed to be reasonable under the circumstances, the results of  which form  the 
basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual 
results may differ from these estimates and assumptions used in preparation of our consolidated financial statements.   See Note 2(cid:178)
Summary  of  Significant  Accounting  Policies  to  the  financial  statements  for  a  discussion  of  additional  accounting  policies  and 
estimates made by management. 

Equity Method Accounting 

We  use  the  equity  method  to  account  for  our  investment  in  Antero  Midstream  because  we  have  the  ability  to  exercise 
significant  influence  over,  but  not  control,  Antero  Midstream.    Accordingly,  we  record,  in  the  period  in  which  it  is  earned, 
(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:73)(cid:85)(cid:82)(cid:80)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3) (cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:20)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:17)(cid:3)(cid:3)
The  financial  statements  of  AMGP  do  not  consolidate  the  accounts  of  Antero  Midstream.    The  accounts  of  Antero  Midstream,  a 
variable interest entity, are included in the consolidated financial statements of Antero Resources, the primary beneficiary  of Antero 
Midstream.  See Note 2(cid:178)Summary of Significant Accounting Policies for further discussion.  

Equity-Based Compensation 

Equity-based compensation awards are  measured at their grant date fair value and related compensation cost is recognized 
over the vesting period of the grant.  Compensation cost for awards with only service conditions is recognized on a straight-line basis 
over  the  requisite  service  period  of  the  entire  reward.    Estimating  the  fair  value  of  each  award  involves  a  number  of  significant 
estimates including interest rates, expected volatility of our equity value, and expected distributions on the Series B Units. 

Off-Balance Sheet Arrangements 

As of December 31, 2018, we did not have any off-balance sheet arrangements. 

Item 7A.  Quantitative and Qualitative Disclosures About Market Risk 

The nature of our business and operations is such that no activities or transactions are conducted or entered into by us that 

would require us to have a discussion under this item. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3) (cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:92)(cid:3)(cid:83)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:15)(cid:3)(cid:83)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:71)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80) 7A.  Quantitative and Qualitative 
(cid:39)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:36)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:48)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:180)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K for the year ended December 31, 2018, which 
has  been  included  in  this  filing  as  Exhibit 99.1  and  incorporated  herein  by  reference,  as  the  activities  of  Antero  Midstream  have  a 
significant impact on our results of operations and financial position. 

Item 8.  Financial Statements and Supplementary Data 

The  Report  of  Independent  Registered  Public  Accounting  Firm,  Consolidated  Financial  Statements  and  supplementary 

financial data required for this Item are set forth beginning on page F-1 of this report and are incorporated herein by reference. 

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 

Not applicable. 

28 

 
 
 
Item 9A.  Controls and Procedures 

Evaluation of Disclosure Controls and Procedures 

As  required  by  Rule 13a(cid:827)15(b) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3) (cid:36)(cid:70)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:20)(cid:28)(cid:22)(cid:23)(cid:15)(cid:3) (cid:68)(cid:86)(cid:3) (cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:40)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3) (cid:36)(cid:70)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3) (cid:90)(cid:72)(cid:3) (cid:75)(cid:68)(cid:89)(cid:72)(cid:3)
evaluated, under the supervision and with the participation of our management, including our principal executive officer and principal 
financial  officer,  the  effectiveness  of  the  design  and  operation  of  our  disclosure  controls  and  procedures  (as  defined  in  Rules 13a(cid:827)
15(e) and 15d(cid:827)15(e) under the Exchange Act) as of the end of the period covered by this annual report.  Our disclosure controls and 
procedures are designed to provide reasonable assurance that information required to be disclosed in the reports that we file or submit 
under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal 
financial officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and 
reported, within the time periods specified in the S(cid:40)(cid:38)(cid:182)(cid:86)(cid:3)(cid:85)(cid:88)(cid:79)(cid:72)(cid:86) and forms. Based upon that evaluation, our principal executive officer 
and  principal  financial  officer  concluded  that  our  disclosure  controls  and  procedures  were  effective  as  December 31,  2018  at  a 
reasonable assurance level. 

Changes in Internal Control Over Financial Reporting 

There  have  been  no  changes  in  our  internal  control  over  financial  reporting  (as  defined  in  Rules 13a-15(f)  and  15d-15(f) 
under the Exchange Act) during the fourth quarter of 2018 that have materially affected, or are reasonably likely to materially affect, 
our internal control over financial reporting. 

(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:50)(cid:89)(cid:72)(cid:85)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74) 

Our general partner is responsible for establishing and maintaining adequate internal control over financial reporting for us as 
defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act.  This system is designed to provide reasonable assurance regarding the 
reliability  of  financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  accounting 
principles generally accepted in the United States of America. 

Our internal control over financial reporting includes those policies and procedures that: 

(i)  pertain  to  the  maintenance  of  records  that,  in  reasonable  detail,  accurately  and  fairly  reflect  our  transactions  and 

dispositions of the assets; 

(ii)  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in 
accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in 
accordance with authorizations of our management and directors; and 

(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of 

our assets that could have a material effect on the financial statements.  

Because  of  its  inherent  limitations,  a  system  of  internal  control  over  financial  reporting  can  provide  only  reasonable 
assurance  and  may  not  prevent  or  detect  all  misstatements.  Further,  because  of  changes  in  conditions,  effectiveness  of  internal 
controls over financial reporting may vary over time. 

Under  the  supervision  of,  and  with  the  participation  of  our  management,  including  the  Chief  Executive  Officer  and  Chief 
Financial  Officer,  we  conducted  an  evaluation  of  the  effectiveness  of  our  internal  control  over  financial  reporting  based  on  the 
framework  and  criteria  established  in Internal  Control(cid:178)Integrated  Framework in  2013,  issued  by  the  Committee  of  Sponsoring 
Organizations of the Treadway Commission.  Based on this evaluation, management of our general partner concluded that our internal 
control over financial reporting was effective as of December 31, 2018. 

The effectiveness of our internal control over financial reporting as of December 31, 2018 has been audited by KPMG LLP, 
an independent registered public accounting firm which also audited our consolidated financial statements as of and for the year ended 
December 31, 2018, as stated in their report which appears on page F-2 in this report. 

29 

Item 9B.  Other Information 

Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934 

Pursuant to Section 13(r) of the Exchange Act, we may be required to disclose in our annual and quarterly reports to the SEC 

(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:179)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:180)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:79)(cid:92)(cid:3)(cid:72)(cid:81)(cid:74)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:72)(cid:68)(cid:79)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:82)(cid:3)(cid:44)(cid:85)(cid:68)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:90)ith certain 
individuals or entities targeted by US economic sanctions.  Disclosure is generally required even where the activities, transactions or 
(cid:71)(cid:72)(cid:68)(cid:79)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:79)(cid:68)(cid:90)(cid:17)(cid:3)(cid:3)(cid:37)(cid:72)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:3)(cid:179)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:180)(cid:3)(cid:69)(cid:85)(cid:82)(cid:68)(cid:71)(cid:79)(cid:92)(cid:15)(cid:3)(cid:76)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86) any 
(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:92)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:3)(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:85)(cid:88)(cid:72)(cid:71)(cid:3)(cid:69)(cid:85)(cid:82)(cid:68)(cid:71)(cid:79)(cid:92)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:12)(cid:17) 

The description of the activities below has been provided to us (cid:69)(cid:92)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:29)(cid:3)(cid:11)(cid:76)(cid:12)(cid:3)

beneficially own more than 10% of our outstanding common shares and are members of the board of directors of our general partner, 
and (ii) beneficially own more than 10% of the outstanding common stock and are members of the board of directors of Endurance 
(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3)(cid:44)(cid:81)(cid:70)(cid:17)(cid:3)(cid:11)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:179)(cid:40)(cid:44)(cid:42)(cid:44)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:69)(cid:72)(cid:3)(cid:71)(cid:72)(cid:72)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81) 
(cid:179)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:90)(cid:76)th us; however, this statement is not meant to be an admission that common control exists. 

The disclosure below relates solely to activities conducted by EIGI.  The disclosure does not relate to any activities 
conducted by us or by WP and does not involve (cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:58)(cid:51)(cid:182)(cid:86)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:49)(cid:72)(cid:76)(cid:87)(cid:75)(cid:72)(cid:85) we nor WP has had any involvement in or control 
over the disclosed activities, and neither we nor WP has independently verified or participated in the preparation of the disclosure.  
Neither we nor WP is representing as to the accuracy or completeness of the disclosure nor do we or WP undertake any obligation to 
correct or update it. 

We understand that EIGI intends to disclose the following in its next annual or quarterly SEC report: 

On July 25, 2018, the Office of Foreign As(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:11)(cid:179)(cid:50)(cid:41)(cid:36)(cid:38)(cid:180)(cid:12)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:40)(cid:79)(cid:72)(cid:70)(cid:87)(cid:85)(cid:82)(cid:81)(cid:76)(cid:70)(cid:86)(cid:3)(cid:46)(cid:68)(cid:87)(cid:85)(cid:68)(cid:81)(cid:74)(cid:76)(cid:3)(cid:55)(cid:85)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:46)(cid:68)(cid:87)(cid:85)(cid:68)(cid:81)(cid:74)(cid:76)(cid:180)(cid:12)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)
(cid:54)(cid:83)(cid:72)(cid:70)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:39)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:49)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:11)(cid:179)(cid:54)(cid:39)(cid:49)(cid:180)(cid:12)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:58)(cid:72)(cid:68)(cid:83)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:68)(cid:86)(cid:86)(cid:3)(cid:39)(cid:72)(cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:51)(cid:85)(cid:82)(cid:79)(cid:76)(cid:73)(cid:72)(cid:85)(cid:68)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:54)(cid:68)(cid:81)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:53)(cid:72)(cid:74)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:22)(cid:20)(cid:3)(cid:38)(cid:17)(cid:41).R. 
Part 544. On July 30, 2018, during a regular co(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:86)(cid:70)(cid:68)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:182)(cid:86)(cid:3)(cid:88)(cid:86)(cid:72)(cid:85)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:15)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:82)(cid:80)(cid:68)(cid:76)(cid:81)(cid:3)(cid:54)(cid:42)(cid:51)-FRANCE.COM 
(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:39)(cid:82)(cid:80)(cid:68)(cid:76)(cid:81)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:180)(cid:12)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:79)(cid:76)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:90)(cid:72)(cid:69)(cid:86)(cid:76)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:46)(cid:68)(cid:87)(cid:85)(cid:68)(cid:81)(cid:74)(cid:76)(cid:15)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:182)(cid:86)(cid:3)(cid:83)(cid:79)(cid:68)(cid:87)(cid:73)(cid:82)(cid:85)(cid:80)(cid:86)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:39)(cid:82)(cid:80)(cid:68)(cid:76)(cid:81)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)
(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:88)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:182)(cid:86)(cid:3)(cid:83)(cid:79)(cid:68)(cid:87)(cid:73)(cid:82)(cid:85)(cid:80)(cid:86)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)eller customers.  Accordingly, there was no direct financial transaction 
between EIGI and the registered owner of the Domain Name and EIGI did not generate any revenue in connection with the Domain 
Name since Katrangi was added to the SDN list on July 25, 2018.  Upon discovering the Domain Name on its platform, EIGI 
promptly suspended the Domain Name and removed it from its platform.  EIGI reported the Domain Name to OFAC on August 7, 
2018. 

On November 6, 2018, EIGI terminated an end customer account (the  (cid:179)(cid:40)(cid:81)(cid:71)(cid:3)(cid:38)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:180)(cid:12)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:40)(cid:44)(cid:42)(cid:44)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)
associated with Arian Bank, which was identified by OFAC as an SDN on November 5, 2018, pursuant to 31 C.F.R. Part 594.  EIGI 
(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3) (cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:40)(cid:81)(cid:71)(cid:3) (cid:38)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:45)(cid:68)(cid:81)(cid:88)(cid:68)(cid:85)(cid:92)(cid:3) (cid:21)(cid:22)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:23)(cid:3) (cid:68)(cid:86)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:40)(cid:44)(cid:42)(cid:44)(cid:182)(cid:86)  acquisition  of  P.D.R  Solutions  FZC.    EIGI 
reported the End Customer Account to OFAC as potentially the property of an SDN subject to blocking pursuant to Executive Order 
13224.  As of February 1, 2019, EIGI had not received any correspondence from OFAC regarding this matter. 

30 

Item 10.  Directors, Executive Officers, and Corporate Governance 

Management of Antero Midstream GP LP 

PART III 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)
partners and do not participate in the management of our operations.  As a general partner, our general partner is liable for all of our 
debts (to the extent not paid from our assets), except for indebtedness or other obligations that are made specifically non-recourse to it.  
Our  general  partner  has  the  sole  discretion  to  incur  indebtedness  or  other  obligations  on  our  behalf  on  a  non-recourse  basis  to  the 
general partner. 

We and our general partner have no employees.  All of our officers and other personnel necessary for our business to function 
(to the extent not outsourced) are employed by Antero Resources.  As a result, the services agreement provides for our payment of an 
annual fee to Antero Resources for corporate, general and administrative services.  This fee was initially $0.5 million per year and is 
subject to adjustment on an annual basis based on the CPI.  The fee is also subject to adjustment to reflect any increase in  the cost of 
providing  services  due  to  changes  in  applicable  law,  rules or  regulations  and  any  increase  in  the  scope  and  extent  of  the  services 
provided.  The fee will not be decreased below the initial fee unless the type or extent of services provided materially decreases. 

All of our officers and a majority of the directors of our general partner are also officers or directors of Antero Resources and 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:83)(cid:72)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:86)(cid:88)(cid:69)(cid:86)(cid:87)(cid:68)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3) (cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)ir time 
managing the business of Antero Midstream and Antero Resour(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:88)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)
our success.  We estimate that these officers spend less than 10% of their time on our business, as distinct from Antero Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:71)(cid:72)(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:73)(cid:79)(cid:88)(cid:70)(cid:87)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:92)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:69)(cid:72)(cid:87)(cid:90)(cid:72)(cid:72)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)emental time 
spent by non-officer directors who serve on both boards depends to some extent on committee assignments, but our general partner 
estimates that such directors will spend less than 20% more time by serving on the board of directors of our general partner.  

In addition to the fee and expenses described above, we reimburse Antero Resources for costs and expenses to the extent that 
such costs and expenses are directly allocable to the provision of services to us, our general partner, or our subsidiaries (other than 
Antero Midstream and its subsidiaries), including recurring costs associated  with being a separate publicly traded entity, and taxes, 
other than payroll taxes, or other direct operating expenses, paid by Antero Resources for our benefit.  We also reimburse our general 
partner for any additional expenses incurred on our behalf or to maintain our legal existence and good standing.  There is no limit on 
the amount of fees and expenses we may be required to pay to affiliates of our general partner on our behalf pursuant to the  services 
agreement. 

Board Leadership Structure 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:180)(cid:12)(cid:3)(cid:71)(cid:82)(cid:72)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3) (cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3) (cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:79)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:92)(cid:3)(cid:68)(cid:71)(cid:71)(cid:85)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3) (cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:82)(cid:79)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)
Chairman  and  Chief  Executive  Officer  should  be  separate  or  combined.    The  directors  serving  on  the  Board  possess  considerable 
professional and industry experience, significant experience as directors of both public and private companies and a unique knowledge 
of the challenges and opportunities that we face.  As such, the Board believes that it is in the best position to evaluate our needs and to 
determine how best to organize our leadership structure to meet those needs. 

At  present,  our  Board  has  chosen  to  combine  the  positions  of  Chairman  and  Chief  Executive  Officer.    While  the  Board 
believes  it  is  important  to  retain  the  flexibility  to  determine  whether  the  roles  of  Chairman  and  Chief  Executive  Officer  should  be 
separated  or  combined  in  one  individual,  the  Board  believes  that  the  current  Chief  Executive  Officer  is  an  individual  with  the 
necessary experience, commitment and support of the other members of the Board to effectively carry out the role of Chairman. 

The  Board  believes  this  structure  promotes  better  alignment  of  strategic  development  and  execution,  more  effective 
implementation  of  strategic  initiatives  and  clearer  accountability  for  our  success  or  failure.    Moreover,  the  Board  believes  that 
combining the Chairman and Chief Executive Officer positions does not impede independent oversight of AMGP.  Five of the seven 
members of the Board are independent under NYSE rules. 

31 

(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:182)(cid:86)(cid:3)(cid:53)(cid:82)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:53)(cid:76)(cid:86)(cid:78)(cid:3)(cid:50)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:74)(cid:75)(cid:87) 

In the normal course of our business, we are exposed to a variety of risks.  The Board oversees our strategic direction, and in 
doing so considers the potential rewards and risks of our business opportunities  and challenges, and  monitors the development and 
management of risks that impact our strategic goals. 

Executive Sessions 

To  facilitate  candid  discussion  among  our  directors,  the  non-management  directors  meet  in  regularly  scheduled  executive 

sessions.  The director who presides at these meetings is chosen by the Board prior to such meetings. 

Interested Party Communications 

Shareholders and other interested parties may communicate by writing to: Antero Midstream GP LP, 1615 Wynkoop Street, 
Denver,  Colorado  80202.    Shareholders  may  submit  their  communications  to  the  Board,  any  committee  of  the  Board  or  individual 
directors  on  a  confidential  or  anonymous  basis  by  sending  the  communication  in  a  sealed  envelope  marked  "Shareholder 
Communication with Directors" and clearly identify the intended recipient(s) of the communication. 

Our  Chief  Administrative  Officer  will  review  each  communication  and  other  interested  parties  and  will  forward  the 
communication, as expeditiously as reasonably practicable, to the addressee if: (1) the communication complies with the requirements 
of any applicable policy adopted by the Board relating to the subject matter of the communication; and (2) the communication falls 
within the scope of matters generally considered by the Board.  To the extent the subject matter of a communication relates to matters 
that have been delegated by the Board to a committee or to an executive officer of the general partner, then the general part(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)
Administrative Officer may forward the communication to the executive officer or chairman of the committee to which the matter has 
been  delegated.    The  acceptance  and  forwarding  of  communications  to  the  members  of  the  Board  or  an  executive  officer  does  not 
imply or create any fiduciary duty of the Board members or executive officer to the person submitting the communications. 

Information  may  be  submitted  confidentially  and  anonymously,  although  we  may  be  obligated  by  law  to  disclose  the 
information or identity of the person providing the information in connection with government or private legal actions and in other 
circumstances.  Our policy is not to take any adverse action, and not to tolerate any retaliation, against any person for asking questions 
or making good faith reports of possible violations of law, our policies or our Corporate Code of Business Conduct and Ethics. 

Available Governance Materials 

The Board has adopted the following materials, which are available on our website at www.anteromidstreamgp.com: 

(cid:120)  Charter of the Audit Committee of the Board of Directors; 

(cid:120)  Corporate Code of Business Conduct and Ethics; 

(cid:120)  Financial Code of Ethics; and 

(cid:120)  Corporate Governance Guidelines. 

Shareholders  may  obtain  a  copy,  free  of  charge,  of  each  of  these  documents  by  sending  a  written  request  to  Antero 
Midstream GP LP, 1615 Wynkoop Street, Denver, Colorado, 80202.  We intend to disclose any amendments to, or waivers from, our 
Code of Business Conduct and Ethics on our website. 

32 

Directors and Executive Officers 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:86)(cid:3)(cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)s executive officers and directors.  Directors hold office until 
their successors have been elected or qualified or until the earlier of their death, resignation, removal or disqualification.  Executive 
officers serve at the discretion of the board.  There are no family relationships among any of the directors or executive officers.  Some 
(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)s general 
partner.  

Name 
Paul M. Rady 
Glen C. Warren, Jr. 
Michael N. Kennedy 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Peter R. Kagan 
W. Howard Keenan, Jr. 
James R. Levy 
Brooks J. Klimley 
Rose M. Robeson 
Peter A. Dea 

      Age 

Position With Our General Partner   

Chief Financial Officer and Senior Vice President 
Senior Vice President(cid:178)Production 
Chief Administrative Officer, Senior Regional Vice President and Treasurer 

Chairman and Chief Executive Officer 

65     
63      Director, President and Secretary 
44     
64     
60     
50      Director 
68      Director 
42      Director 
61      Director 
58      Director 
65      Director 

Paul M. Rady has served as Chief Executive Officer of our general partner since January 2017 and as Chairman of the Board 
of Directors of our general partner since April 2017 and has served as Chief Executive Officer and Chairman of the Board of Directors 
of the general partner of Antero Midstream since February 2014.  Mr. Rady was a co-founder and served as Chief Executive Officer 
and Chairman of the Board of Directors of Antero Resources since May 2004 and of its predecessor company from its founding in 
2002 to its sale to XTO Energy, Inc. in April 2005.  Prior to Antero Resources, Mr. Rady served as President, CEO and Chairman of 
Pennaco Energy  from 1998 until its  sale to Marathon in early 2001.  Prior to Pennaco, Mr. Rady  was  with Barrett Resources  from 
1990 until 1998 where he initially was recruited as Chief Geologist in 1990, then served as Exploration Manager, EVP Exploration, 
President, COO and Director and ultimately CEO.  Mr. Rady began his career with Amoco where he served 10 years as a geologist 
focused on the Rockies and Mid-Continent.  Mr. Rady is the managing member of Salisbury Investment Holdings, LLC.  Mr. Rady 
holds a B.A. in Geology from Western Colorado University and M.Sc. in Geology from Western Washington University. 

Mr. (cid:53)(cid:68)(cid:71)(cid:92)(cid:182)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)nce as a chief executive of oil and gas companies, together with his training as a geologist and 
broad  industry  knowledge,  enable  Mr. Rady  to  provide  the  board  with  executive  counsel  on  a  full  range  of  business,  strategic  and 
professional matters. 

Glen C. Warren, Jr. has served as President and Secretary of our general partner since January 2017 and as a director of our 
general  partner  since  April 2017  and  has  served  as  President  and  Secretary  and  as  a  director  of  the  general  partner  of  Antero 
Midstream since January 2016, prior to which he served as President, Chief Financial Officer and Secretary and as a director of the 
general  partner  of  Antero  Midstream  beginning  in  February 2014.    Mr. Warren  was  a  co-founder  and  served  as  President,  Chief 
Financial  Officer  and  Secretary  and  as  a  director  of  Antero  Resources  since  May 2004  and  of  its  predecessor  company  from  its 
founding  in  2002  to  its  sale  to  XTO  Energy, Inc.  in  April 2005.   Prior  to  Antero  Resources,  Mr. Warren  served  as  EVP,  CFO  and 
Director  of  Pennaco  Energy  from  1998  until  its  sale  to  Marathon  in  early  2001.    Mr. Warren  spent  10 years  as  a  natural  resources 
investment  banker  focused  on  equity  and  debt  financing  and  M&A  advisory  with  Lehman  Brothers,  Dillon,  Read  and  Kidder, 
Peabody & Co.  Mr. Warren  began  his  career  as  a  landman  in  the  Gulf  Coast  region  with  Amoco,  where  he  spent  six years.    Mr. 
Warren is the managing member of Canton Investment Holdings, LLC.  Mr. Warren holds a B.A. from the University of Mississippi, 
a J.D. from the University of Mississippi School of Law and an M.B.A. from the Anderson School of Management at U.C.L.A. 

Mr. (cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:182)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:70)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)
investment banker and broad industry knowledge, enable Mr. Warren to provide the board with executive counsel on a full range of 
business, strategic, financial and professional matters. 

Michael N. Kennedy has served as our Chief Financial Officer and Senior Vice President of Finance since April 2017 and has 
served  as  Chief  Financial  Officer  and  Senior  Vice  President  of  Finance  of  the  general  partner  of  Antero  Midstream  since 

33 

 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 2016,  prior  to  which  he  served  as  Vice  President  of  Finance  of  the  general  partner  of  Antero  Midstream  beginning  in 
February 2014.  Mr. Kennedy has also served as Senior Vice President of Finance of Antero Resources since January 2016, prior to 
which  he  served  as  Vice  President  of  Finance  of  Antero  Resources  beginning  in  August 2013.    Mr. Kennedy  was  Executive  Vice 
Pres(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:41)(cid:82)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)(cid:50)(cid:76)(cid:79)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:41)(cid:82)(cid:85)(cid:72)(cid:86)(cid:87)(cid:180)(cid:12)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:21)(cid:19)(cid:19)(cid:28)(cid:3)(cid:87)(cid:82)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:41)(cid:85)(cid:82)(cid:80)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)(cid:88)(cid:81)(cid:87)(cid:76)(cid:79)(cid:3)(cid:21)(cid:19)(cid:19)(cid:28)(cid:15)(cid:3)(cid:48)(cid:85)(cid:17) Kennedy 
held  various  financial  positions  of  increasing  responsibility  within  Forest.    From  1996  to  2001,  Mr. Kennedy  was  an  auditor  with 
Arthur  Andersen focusing  on  the  Natural  Resources  industry.    Mr. Kennedy  holds  a  B.S.  in  Accounting  from  the  University  of 
Colorado at Boulder. 

Kevin  J.  Kilstrom  has  served  as  our  Senior  Vice  President  of  Production  since  April 2017  and  has  served  as  Senior  Vice 
President of Production of the general partner of Antero Midstream since January 2016, prior to which he served as Vice President of 
Production  of  the  general  partner  of  Antero  Midstream  beginning  in  February 2014.    Mr. Kilstrom  also  has  served  as  Senior  Vice 
President of Production of Antero Resources since January 2016, prior to which he served as Vice President of Production of Antero 
Resources beginning in June 2007.  Mr. Kilstrom was a Manager of Petroleum Engineering with AGL Energy of Sydney, Australia 
(cid:11)(cid:179)(cid:36)(cid:42)(cid:47)(cid:180)(cid:12)(cid:3) (cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:21)(cid:19)(cid:19)(cid:25)(cid:3)(cid:87)(cid:82)(cid:3)(cid:21)(cid:19)(cid:19)(cid:26)(cid:17)(cid:3)(cid:3)(cid:51)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:42)(cid:47)(cid:15)(cid:3)(cid:48)(cid:85)(cid:17) (cid:46)(cid:76)(cid:79)(cid:86)(cid:87)(cid:85)(cid:82)(cid:80)(cid:3) (cid:90)(cid:68)(cid:86)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:48)(cid:68)(cid:85)(cid:68)(cid:87)(cid:75)(cid:82)(cid:81)(cid:3)(cid:50)(cid:76)(cid:79)(cid:3)(cid:11)(cid:179)(cid:48)(cid:68)(cid:85)(cid:68)(cid:87)(cid:75)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:40)(cid:81)(cid:74)(cid:76)(cid:81)(cid:72)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:38)(cid:82)(cid:81)(cid:86)(cid:88)(cid:79)(cid:87)(cid:68)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:36)(cid:86)(cid:86)(cid:72)(cid:87)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:21)(cid:19)(cid:19)(cid:22)(cid:3)(cid:87)(cid:82)(cid:3)(cid:21)(cid:19)(cid:19)(cid:25)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:48)(cid:68)(cid:85)(cid:68)(cid:87)(cid:75)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:51)(cid:82)(cid:90)(cid:71)(cid:72)(cid:85)(cid:3)(cid:53)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:68)(cid:79)(cid:3)(cid:69)(cid:72)(cid:71)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:68)(cid:81)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)
to 2003.  Mr. Kilstrom also served as a member of the board of directors of three Marathon subsidiaries from October 2003 through 
May 2005.  Mr. Kilstrom was an Operations Manager and reserve engineer at Pennaco Energy from 1999 to 2001.  Mr. Kilstrom was 
at Amoco for more than 22 years prior to 1999.  Mr. Kilstrom holds a B.S. in Engineering from Iowa State University and an M.B.A. 
from DePaul University. 

Alvyn  A.  Schopp  has  served  as  our  Chief  Administrative  Officer,  Regional  Senior  Vice  President,  and  Treasurer  since 
April (cid:21)(cid:19)(cid:20)(cid:26)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:75)(cid:68)(cid:86)(cid:3) (cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:71)(cid:3) (cid:68)(cid:86)(cid:3) (cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3) (cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3) (cid:53)(cid:72)(cid:74)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3) (cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3) (cid:57)(cid:76)(cid:70)(cid:72)(cid:3) (cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:55)(cid:85)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
general partner since January 2016, prior to which he served as Chief Administrative Officer, Regional Vice President and Treasurer 
(cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3) (cid:69)(cid:72)(cid:74)(cid:76)(cid:81)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3) (cid:76)(cid:81)(cid:3) (cid:41)(cid:72)(cid:69)(cid:85)(cid:88)(cid:68)(cid:85)(cid:92) 2014.    Mr. Schopp  has  also  served  as  Chief  Administrative  Officer, 
Regional  Senior  Vice  President,  and  Treasurer  of  Antero  Resources  since  January 2016,  as  Chief  Administrative  Officer,  Regional 
Vice  President  and  Treasurer  from  September 2013  to  January 2016,  as  Vice  President  of  Accounting  and  Administration  and 
Treasurer from January 2005 to September 2013, as Controller and Treasurer from 2003 to 2005 and as Vice President of Accounting 
(cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:55)(cid:85)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:83)(cid:85)(cid:72)(cid:71)(cid:72)(cid:70)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:73)(cid:85)(cid:82)(cid:80)(cid:3) (cid:45)(cid:68)(cid:81)(cid:88)(cid:68)(cid:85)(cid:92) 2005 
until its sale to XTO Energy, Inc. in April 2005. From 1993 to 2000, Mr. Schopp was CFO, Director and ultimately CEO of T-Netix.  
From 1980 to 1993 Mr. Schopp was  with KPMG LLP.  As a Senior Manager  with KPMG, he  maintained an extensive energy and 
mining practice.  Mr. Schopp holds a B.B.A. from Drake University. 

Peter R. Kagan has served as a director of our general partner since April 2017.  Mr. Kagan has also served as a director of 
Antero  Midstream  since  February 2014  and  a  director of  Antero  Resources  since  2004.    Mr. Kagan  has  been  with  Warburg  Pincus 
(cid:86)(cid:76)(cid:81)(cid:70)(cid:72)(cid:3)(cid:20)(cid:28)(cid:28)(cid:26)(cid:3)(cid:90)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:75)(cid:72)(cid:3)(cid:79)(cid:72)(cid:68)(cid:71)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:85)(cid:80)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:68)(cid:81)d natural resources.  He is a Partner of Warburg Pincus & Co. 
and a Managing Director of Warburg Pincus LLC.  He is also a member of Warburg Pincus (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:17)(cid:3)(cid:3)
Mr. Kagan received a B.A. degree cum laude from Harvard College and J.D. and M.B.A. degrees with honors from the University of 
Chicago.  Prior to joining Warburg Pincus, he worked in investment banking at Salomon Brothers in both New York and Hong Kong.  
Mr. Kagan currently also serves on the boards of directors of the following public companies: Laredo Petroleum Holdings, Inc., MEG 
Energy Corp. and Targa Resources Corp., as well as the boards of several private companies.  In addition, he is a director of Resources 
for the Future and a trustee of Milton Academy. 

Mr. Kagan  has  significant  experience  with  energy  companies  and  investments  and  broad  knowledge  of  the  oil  and  gas 

industry.  We believe his background and skill set make Mr. Kagan well-suited to serve as a member of our board of directors. 

W. Howard Keenan, Jr. has served as a director of our general partner since April 2017.  Mr. Keenan has also served as a 
director of Antero Midstream since February 2014 and a director of Antero Resources since 2004.  Mr. Keenan has over 40 years of 
experience  in  the  financial  and  energy  businesses.    Since  1997,  he  has  been  a  Member  of  Yorktown  Partners LLC,  a  private 
investment  manager  focused  on  the  energy  industry.    From  1975  to  1997,  he  was  in  the  Corporate  Finance  Department  of  Dillon, 
Read & Co. Inc. and active in the private equity and energy areas, including the founding of the first Yorktown Partners fund in 1991.  
He is serving or has served as a director of multiple Yorktown Portfolio companies and currently serves as a director of the  following 
public companies: Ramaco Resources, Inc. and Solaris Oilfield Infrastructure, Inc. Mr. Keenan holds a B.A. degree cum laude from 
Harvard College and an M.B.A. degree from Harvard University. 

34 

Mr. Keenan  has  significant  experience  with  energy  companies  and  investments  and  broad  knowledge  of  the  oil  and  gas 

industry.  We believe his background and skill set make Mr. Keenan well-suited to serve as a member of our board of directors. 

James R. Levy has served as a director of our general partner since April 2017 and joined the audit committee of the board of 
directors  of  our  general  partner  in  connection  with  our  listing  on  the  NYSE.    Mr. Levy  has  also  served  as  a  director  of  Antero 
Resources  since  October 2013,  where  he  serves  on  the  compensation  committee.    Mr. Levy  joined  Warburg  Pincus  in  2006  and 
focuses on investments in the energy industry.  Mr. Levy is a Partner of Warburg Pincus & Co. and a Managing Director of Warburg 
Pincus LLC.  Prior to joining Warburg Pincus, Mr. Levy worked as a private equity investor at Kohlberg & Company and in M&A 
advisory at Wasserstein Perella & Co. Mr. Levy currently serves on the board of directors of Laredo Petroleum as well as the board of 
directors of several private companies.  In addition, he is a trustee of Prep for Prep.  Mr. Levy received a Bachelor of Arts degree from 
Yale University. 

Mr. Levy  has  significant  experience  with  energy  companies  and  investments  and  broad  knowledge  of  the  oil  and  gas 

industry.  We believe his background and skill set make Mr. Levy well-suited to serve as a member of our board of directors. 

Brooks J. Klimley joined the board of our general partner in connection with our listing on the NYSE in 2017, and serves as a 
member of the audit committee.  Mr. Klimley served as a director of Antero Midstream, where he also served as a member of the audit 
committee,  from  March 2015  until  he  joined  the  board  of  our  general  partner.    In  2013,  Mr. Klimley  joined  The  Silverfern  Group, 
which  is  focused  on  private  equity  co-investments,  after  a  nearly  25 year  career  leading  investment  banking  practices  covering the 
(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:75)(cid:72)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:36)(cid:71)(cid:77)(cid:88)(cid:81)(cid:70)(cid:87)(cid:3)(cid:51)(cid:85)(cid:82)(cid:73)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3)(cid:68)(cid:87)(cid:3)(cid:38)(cid:82)(cid:79)(cid:88)(cid:80)(cid:69)(cid:76)(cid:68)(cid:3)(cid:56)(cid:81)(cid:76)(cid:89)(cid:72)(cid:85)(cid:86)(cid:76)(cid:87)(cid:92)(cid:182)(cid:86)(cid:3)(cid:74)(cid:85)(cid:68)(cid:71)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:70)(cid:75)(cid:82)(cid:82)(cid:79)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)usiness 
and  international  affairs  since  2010.    Previously,  Mr. Klimley  acted  as  President  of  Brooks J.  Klimley &  Associates,  an  energy 
advisory services firm focused on strategy and capital raising for energy and natural resources companies.  Prior to founding his own 
firm  in  2009,  Mr. Klimley  acted  as  the  President  of  CIT Energy  and  held  senior  leadership  positions  at  a  number  of  financial 
institutions, including Citicorp, Bear Stearns, UBS and Kidder, Peabody.  Mr. Klimley holds a dual B.A./M.A. in Jurisprudence (Law) 
from Oxford University and a joint degree in Economics and History from Columbia University. 

Mr. Klimley  has  significant  experience  with  energy  companies  and  investments  and  broad  knowledge  of  the  oil  and  gas 

industry.  We believe his background and skill set make Mr. Klimley well-suited to serve as a member of our board of directors. 

Rose M. Robeson joined the board of directors of our general partner in connection with our listing on the NYSE in 2017, and 
serves as chairman of the audit committee.  Prior to her retirement in March 2014, Ms. Robeson was Senior Vice President & Chief 
Financial  Officer  of  DCP  Midstream GP, LLC,  the  general  partner  of  DCP  Midstream  Partners, LP  from  May 2012  until 
January 2014.    Ms. Robeson  also  served  as  Group  Vice  President  and  Chief  Financial  Officer  of  DCP  Midstream LLC  from 
January 2002  to  May 2012.    Ms. Robeson  served  as  a  director  of  American  Midstream GP, LLC,  the  general  partner  of  American 
Midstream Partners, LP (NYSE: AMID) from June 2014 to June 2016.  Ms. Robeson served as a director of Tesco Corporation from 
November 2015 to December 2017.  Ms. Robeson earned her B.S. degree in accounting from Northwest Missouri State University.  
Ms. Robeson  became  a  certified  public  accountant  in  1983  and  her  license  is  currently  inactive.    Ms. Robeson  is  a  member  of  the 
board of directors of SM Energy, an independent energy company engaged in the acquisition, development, and production of crude 
oil, natural gas and natural gas liquids in onshore North America, and serves as Audit Committee Chair and serves on the Nominating 
and Governance Committee.   Ms. Robeson is also a director of Newpark Resources (NYSE: NR), a  worldwide provider of drilling 
fluids systems and composite matting systems used in oilfield services, and serves on the Audit, Compensation, and Nominating and 
Governance committees. 

Ms. Robeson  brings  to  the  Board  over  30 years  of  experience  in  various  aspects  of  the  oil  and  gas  industry,  including 
exploration and production, midstream and refining and marketing.  She also has significant financial management, risk management 
and accounting oversight experience, which is important in the oversight of our financial reporting and risk management functions.  
Ms. (cid:53)(cid:82)(cid:69)(cid:72)(cid:86)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3) (cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3) (cid:82)(cid:81)(cid:3) (cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3) (cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3) (cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3) (cid:72)(cid:81)(cid:75)(cid:68)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3) (cid:75)(cid:72)(cid:85)(cid:3) (cid:86)(cid:87)(cid:85)(cid:82)(cid:81)(cid:74)(cid:3) (cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3) (cid:74)(cid:82)(cid:89)(cid:72)(cid:85)(cid:81)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:69)(cid:68)(cid:70)(cid:78)(cid:74)(cid:85)(cid:82)(cid:88)(cid:81)(cid:71)(cid:17)(cid:3) (cid:3) (cid:58)(cid:72)(cid:3) (cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3) (cid:75)(cid:72)(cid:85)(cid:3)
background and skill set make Ms. Robeson well-suited to serve as a member of our board of directors and as Chairman of the audit 
committee. 

Peter Dea has served as a director of our general partner since April 2018.  He is the Co-Founder and Executive Chairman of 
Confluence  Resources  LP,  a  Denver,  Colorado-based  oil  and  gas  exploration  and  production  company,  and  has  been  with  the 
company since its inception in September 2016.  Mr. Dea also serves  on  the  Boards  of  Encana  Corporation and  Liberty  Oilfield 
Services.  Additionally, Mr. Dea served as Co-Founder, President and CEO of Cirque Resources LP since its inception in May 2007 
and  served  as  President,  CEO  and  a  Director  of  Western  Gas  Resources, Inc.,  from  2001  through  their  merger  with  Anadarko 

35 

Petroleum  Corporation  in  2006.   He  joined  Barrett  Resources  Corporation  in  1993  and  was  CEO  from  1999  and  Chairman  of  the 
Board from 2000 until its sale in 2001 to Williams.  Prior to joining Barrett, Mr. Dea held various management and geologic positions 
for  Exxon  Company  USA.    In  addition  to  receiving  geology  degrees  from  the  University  of  Montana,  MS,  and  Western  Colorado 
University, BA, he also attended the Harvard Business School Advanced Management Program. 

Mr. Dea brings to the Board 35 years of experience and leadership in the exploration and development of multiple shale plays 
(cid:68)(cid:70)(cid:85)(cid:82)(cid:86)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:17)(cid:54)(cid:17)(cid:15)(cid:3)(cid:73)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:74)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term strategy and focus. We believe his background and 
skill set make Mr. Dea well-suited to serve as a member of our board of directors and audit committee.  

Committees of the Board of Directors 

The board of directors of our general partner has an audit committee.  We do not have a compensation committee, but rather 
the  board  of  directors  of  our  general  partner  approves  equity  grants  to  directors  and  Antero  Resources  employees.    The  board  of 
directors of our  general partner  may establish a conflicts committee to review  specific  matters that the board believes  may involve 
conflicts of interest. 

Audit Committee 

Rules implemented by the NYSE and SEC require us to have an audit committee comprised of at least three directors who 
meet the independence and experience standards established by the NYSE and the Exchange Act.  Messrs. Klimley and Dea serve on 
our  audit  committee,  and  Ms. Robeson  serves  as  the  Chairman  of  the  committee.    As  required  by  the  rules of  the  SEC  and  listing 
standards of the NYSE, the audit committee currently consists solely of independent directors under the standards established by the 
NYSE and the Exchange Act.  SEC rules (cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:72)(cid:3)(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3)
(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:180)(cid:3) (cid:68)(cid:86)(cid:3) (cid:68)(cid:3) (cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:3) (cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:180)(cid:3) (cid:76)(cid:86)(cid:3) (cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3) (cid:68)(cid:86)(cid:3) (cid:68)(cid:3) (cid:83)(cid:72)(cid:85)(cid:86)(cid:82)(cid:81)(cid:3) (cid:90)(cid:75)(cid:82)(cid:15)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:75)(cid:76)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:75)er 
experience,  possesses  the  attributes  outlined  in  such  rules.    Our  board  of  directors  believes  that  Ms.  Robeson  possesses  substantial 
financial experience based on her extensive experience in finance as it relates to the oil and gas industry as the former CFO of DCP 
Midstream  LLC.    As  a  result  of  these  qualifications,  we  believe  Ms. (cid:53)(cid:82)(cid:69)(cid:72)(cid:86)(cid:82)(cid:81)(cid:3) (cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:76)(cid:72)(cid:86)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:179)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)
(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:17)(cid:180) 

This committee oversees, reviews, acts on and reports on various auditing and accounting matters to our board of directors, 
including: the selection of our independent accountants, the scope of our annual audits, fees to be paid to the independent accountants, 
the  performance  of  our  independent  accountants  and  our  accounting  practices.    In  addition,  the  audit  committee  oversees  our 
compliance programs relating to legal and regulatory requirements.  We adopted an audit committee charter defining the commit(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)
primary duties in a manner consistent with the rules of the SEC and NYSE. 

Conflicts Committee 

Our  general  partner  may,  from  time  to  time,  have  a  conflicts  committee  to  which  the  board  will  appoint  at  least  two 
independent directors and which may be asked to review specific matters that the board believes may involve conflicts of interest and 
determines to submit to the conflicts committee for review.  The conflicts committee will determine if the resolution of the conflict of 
interest is adverse to the interest of the partnership.  The members of the conflicts committee may not be officers or employees of our 
general  partner  or  directors,  officers  or  employees  of  its  affiliates,  Antero  Resources,  and  must  meet  the  independence  standards 
established by the NYSE and the Exchange Act to serve on an audit committee of a board of directors, along with other requirements 
in our partnership agreement.  Any matters approved by the conflicts committee will be conclusively deemed to be approved by us and 
all of our partners and not a breach by our general partner of any duties it may owe us or our unitholders. 

On  February  26,  2018,  we  announced  that  the  board  of  directors  of  our  general  partner  formed  a  conflicts  committee 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:71)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:79)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:86)(cid:68)(cid:87)(cid:76)(cid:86)(cid:73)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:77)(cid:88)(cid:81)(cid:70)tion with 
the formation of the special committee at Antero Resources, and a conflicts committee at Antero Midstream.  In connection with the 
(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3) (cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3) (cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3) (cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:76)(cid:81)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:15)(cid:3) (cid:82)(cid:81)(cid:3) (cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3) (cid:28)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3) (cid:90)(cid:72)(cid:3)
announced that we had entered into the Simplification Agreement, pursuant to which, among other things, (1) we  will be converted 
from a limited partnership to a corporation under the laws of the State of Delaware, to be named Antero Midstream Corporation; (2) 
an indirect, wholly owned subsidiary of New AM will be merged with and into Antero Midstream, with Antero Midstream surviving 
the  merger as an indirect,  wholly owned subsidiary of New  AM and (3) all the issued  and outstanding  Series B Units representing 
limited  liability  company  interests  of  IDR  LLC  will  be  exchanged  for  an  aggregate  of  approximately  17.35  million  shares  of  New 

36 

(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:3)(cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)
former shareholders, unitholders of Ante(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17) 

Section 16(a) Beneficial Ownership Reporting Compliance 

Section 16(a) of  the  Exchange  Act  requires  executive  officers  and  board  members  of  our  general  partner  and  persons  who 
beneficially own more than 10% of a registered class of our equity securities to file reports of ownership and changes in ownership 
with the SEC and to furnish us with copies of all such reports. 

Based solely upon our review of reports received by us, or representations from certain reporting persons that no filings were 
required, we believe that all of the officers and board members of our general partner and persons who beneficially owned more than 
10% of our common units complied with all applicable filing requirements during fiscal year 2018. 

Item 11.  Executive Compensation 

COMPENSATION DISCUSSION AND ANALYSIS  

Overview 

Neither  we  nor  our  general  partner  have  any  employees.    All  of  the  executive  officers  of  our  general  partner  and  other 
personnel who provide services to our business are employed by Antero Resources.  This Item 11 provides information relating to the 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:81)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:90)(cid:75)(cid:82)(cid:80)(cid:3)(cid:90)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:179)(cid:49)amed 
Executiv(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:180)(cid:29) 

2018 Named Executive Officers 

Name 
Paul M. Rady 
Glen C. Warren, Jr. 
Michael N. Kennedy 
Alvyn A. Schopp 
Kevin J. Kilstrom 

Principal Position 

Chairman of the Board and Chief Executive Officer 
Director, President and Secretary 
Chief Financial Officer and Senior Vice President(cid:178)Finance 
Chief Administrative Officer, Regional Senior Vice President and Treasurer 
Senior Vice President(cid:178)Production 

Our Named Executive Officers currently receive all of their compensation and benefits for services provided to our business 
from  Antero  Resources,  Antero  Midstream  and  IDR  LLC.    All  decisions  regarding  the  compensation  of  our  Named  Executive 
Officers, other than with respect to long-term equity incentive awards under the Antero Midstream Partners LP Long-Term Incentive 
(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:80)(cid:68)(cid:71)(cid:72)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182) 
(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3) (cid:3) (cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:90)(cid:72)(cid:3) (cid:75)(cid:68)(cid:89)(cid:72)(cid:3) (cid:72)(cid:81)(cid:87)(cid:72)red  into  with  Antero 
Resources  and  our  general  partner,  we  are  required  to  reimburse  Antero  Resources  for  a  proportionate  amount  of  compensation 
(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:72)(cid:75)(cid:68)(cid:79)(cid:73)(cid:17)(cid:3)(cid:3)(cid:36)(cid:79)(cid:87)(cid:75)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:90)(cid:72)(cid:3)(cid:69)(cid:72)(cid:68)(cid:85)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:76)(cid:81)(cid:74) such compensation 
and benefits to our Named Executive Officers,  we have  no control over such costs and do not establish or direct the compensation 
policies or practices of Antero Resources, Antero Midstream or IDR LLC. 

The  following  Compensation  Discussion  and  Analysis  provides  an  overview  of  compensation  policies  and  programs 
applicable  to  our  Named  Executive  Officers  and  describes  the  compensation  objectives,  policies  and  practices  with  respect  to  our 
Named  Executive  Officers.    The  elements  of  compensati(cid:82)(cid:81)(cid:3) (cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)
(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)rs of 
the Board are members of the board of directors of Antero Resources. Messrs. Kagan, Keenan and Levy served on our Board and the 
(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:20)(cid:3)(cid:11)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:179)(cid:50)(cid:89)(cid:72)(cid:85)(cid:89)(cid:76)(cid:72)(cid:90)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) of 
(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:12)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:15)(cid:180)(cid:3)(cid:179)(cid:90)(cid:72)(cid:15)(cid:180)(cid:3)(cid:179)(cid:88)(cid:86)(cid:15)(cid:180) (cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)
(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:180)(cid:3) (cid:82)(cid:85)(cid:3) (cid:179)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3) (cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:3) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:85)(cid:72)fer  to 
Antero Midstream. 

The  following  discussion  provides  information  about  our  compensation  decisions  and  policies  with  regard  to  our  Named 
Executive  Officers  for  the  2018  fiscal  year,  and  is  intended  to  provide  investors  with  the  information  necessary  to  understand  our 
compensation policies and decisions.  It also provides context for the disclosure included in the executive compensation tables below. 

37 

2018 Say-on-Pay Advisory Vote 

(cid:36)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:68)(cid:86)(cid:78)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:15)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:71)(cid:89)(cid:76)(cid:86)(cid:82)(cid:85)(cid:92)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
compensation of the Named Executive Officers.  Advisory votes in favor of our executive compensation program were cast by over 
(cid:28)(cid:27)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:76)(cid:81)(cid:74).  
The Compensa(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:87)(cid:82)(cid:82)(cid:78)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:68)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:51)(cid:68)(cid:92)(cid:180)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)
Executive Officers in 2018.  We have continued, and plan to continue, engaging in ongoing shareholder outreach regarding corporate 
governance generally, including executive compensation programs.  

Compensation Philosophy and Objectives of Our Compensation Program 

Since  our  inception,  our  compensation  philosophy  has  been  predominantly  focused  on  recruiting  individuals  who  are 
motivated to help us achieve superior performance and growth.  Our company was founded by entrepreneurs whose strategy was to 
employ  high-impact  executives  who  are  extremely  effective  at  sparking  superior  performance  with  low  overhead.    These  highly 
qualified and experienced individuals have contributed to the continued success of our Company, driving an 20% compound annual 
growth rate in debt-adjusted net production per share and a 21% compound annual growth rate in oil and gas net proved reserves since 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:3)(cid:44)(cid:51)(cid:50).  

Historically,  to achieve our objectives,  we  sought to implement a compensation program that reflected the  unique  strategy 
and  entrepreneurial  culture  of  our  organization.    Specifically,  we  sought  to  reward  our  Named  Executive  Officers  by  emphasizing 
long-term equity-based incentive compensation, which allowed our senior leaders to build significant ownership in the Company.  We 
believe this approach served to motivate our Named Executive Officers and align their interests with those of the Company and our 
shareholders.  Our Named Executive Officers currently hold approximately 9% of our outstanding shares, which ensures they identify 
with the best interests of our shareholders. 

As the Company continues to mature, we are continuing to transition from an entrepreneurial-based management incentive 
structure to a more traditional compensation program.  This transition called for us to make certain modifications to our compensation 
philosophy  and  attendant  adjustments  in  our  compensation  program.    More  specifically,  our  goal  is  to  focus  on  returns  and  value 
creation  per  share  that  will  reward  more  disciplined  capital  investment,  efficient  operations,  and  free  cash  flow  generation.    In 
addition,  for  calendar  year  2018,  we  adopted  a  simplified  annual  incentive  program  that  focuses  on  four  key  performance  metrics.  
(cid:41)(cid:88)(cid:85)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3) We 
believe these changes to our compensation philosophy and practices promoted a stronger alignment between Named Executive Officer 
pay and Company performance, and deliver greater value to our shareholders as our Company continues to grow and mature. 

Compensation Best Practices 

The following table highlights the compensation best practices we follow: 

What We Do 

✓  Use a representative and relevant peer group 
✓  Target the market median for all elements of Named 

(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) 

✓  Apply robust minimum stock ownership guidelines 
✓  Link annual incentive compensation to the achievement of 

objective pre-established performance goals tied to 
operational and strategic priorities 

✓  Evaluate the risk of our compensation programs 
✓  Use and review compensation tally sheets 
✓  Provide 100% long-term incentive awards in the form of 

performance-based equity  

✓  Use an independent compensation consultant 
✓  Maintain a clawback policy 

(cid:58)(cid:75)(cid:68)(cid:87)(cid:3)(cid:58)(cid:72)(cid:3)(cid:39)(cid:82)(cid:81)(cid:182)(cid:87)(cid:3)(cid:39)(cid:82) 
✗  No tax gross ups for executive officers 
✗  (cid:49)(cid:82)(cid:3)(cid:179)(cid:86)(cid:76)(cid:81)(cid:74)(cid:79)(cid:72)-(cid:87)(cid:85)(cid:76)(cid:74)(cid:74)(cid:72)(cid:85)(cid:180)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)-in-control cash payments 
✗  No excessive perquisites 
✗  No severance arrangements for Named Executive Officers 
✗  No guaranteed bonuses for Named Executive Officers 
✗  No management contracts 
✗  No re-pricing, backdating or underwater cash buy-outs of 

options or stock appreciation rights 

✗  No hedging or pledging of Company stock 
✗  No separate benefit plans for Named Executive Officers 
✗  No granting of stock options with an exercise price less than 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
date of grant 

38 

 
Implementing Our Compensation Program Objectives 

Role of the Compensation Committee 

The Compensation Committee oversees all matters of our executive compensation program and has the final decision-making 
authority  on  all  executive  compensation  matters.    Each  year,  the  Compensation  Committee  reviews,  modifies  (if  necessary),  and 
approves  o(cid:88)(cid:85)(cid:3) (cid:83)(cid:72)(cid:72)(cid:85)(cid:3) (cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:15)(cid:3) (cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3) (cid:74)(cid:82)(cid:68)(cid:79)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:3) (cid:85)(cid:72)(cid:79)(cid:72)(cid:89)(cid:68)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3) (cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)
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responsible  for  re(cid:89)(cid:76)(cid:72)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:40)(cid:50)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3) (cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) (cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:54)(cid:72)(cid:70)(cid:85)(cid:72)(cid:87)(cid:68)(cid:85)(cid:92)(cid:3)
(cid:11)(cid:179)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:18)(cid:38)(cid:41)(cid:50)(cid:180)(cid:12)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:73)(cid:85)(cid:68)(cid:80)(cid:72)(cid:90)(cid:82)(cid:85)(cid:78)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:74)(cid:82)(cid:68)(cid:79)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:82)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:17)(cid:3) (cid:3) (cid:37)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:76)(cid:86)(cid:3) (cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
Compensation Committee sets the compensation of the CEO and the President/CFO.  

The  CEO  and  the  President/CFO  typically  provide  recommendations  to  the  Compensation  Committee  regarding  the 
compensation  levels  for  the  other  executive  officers  and  for  our  executive  compensation  program  as  a  whole.    In  making  their 
(cid:85)(cid:72)(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:40)(cid:50)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:18)(cid:38)(cid:41)(cid:50)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)
performance  during  the  year,  and  comparable  company  compensation  levels  and  independent  oil  and  gas  company  compensation 
surveys.    The  Compensation  Committee  considers  these  recommendations  when  reviewing  the  performance  of,  and  setting 
compensation for, the other executive officers.  

Actual compensation decisions for individual officers are the result of a subjective analysis of a number of factors, including 
(cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:85)(cid:82)(cid:79)(cid:72)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:82)(cid:85)(cid:74)(cid:68)(cid:81)(cid:76)(cid:93)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3) (cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3) (cid:86)(cid:78)(cid:76)(cid:79)(cid:79)(cid:86)(cid:3) (cid:82)(cid:85)(cid:3) (cid:87)(cid:72)(cid:81)(cid:88)(cid:85)(cid:72)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:88)(cid:86)(cid:15)(cid:3) (cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:182)(cid:86)(cid:3)
position, and relevant trends in compensation practices.  The Compensat(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)
current and prior compensation when setting future compensation.  Specifically, current compensation is considered a base, and the 
Compensation  Committee determines  whether adjustments  to that base are necessary to  retain the executive in  light of competition 
(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:88)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)e 
result of the exercise of judgment based on all reasonably available information and, to that extent, compensation is discretionary. 

Role of External Advisors 

The Compensation Committee has the authority to retain an independent executive compensation consultant.  For 2018, the 
Compensation Committee retained Frederic W. C(cid:82)(cid:82)(cid:78)(cid:3)(cid:9)(cid:3)(cid:38)(cid:82)(cid:17)(cid:15)(cid:3)(cid:44)(cid:81)(cid:70)(cid:17)(cid:3)(cid:11)(cid:179)(cid:41)(cid:17)(cid:58)(cid:17)(cid:3)(cid:38)(cid:82)(cid:82)(cid:78)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:49)(cid:60)(cid:54)(cid:40)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)
requirements,  the  Compensation  Committee  reviewed  the  independence  of  F.W.  Cook  under  six  independence  factors.    After  its 
review, the Compensation Committee determined that F.W. Cook was independent. 

In 2018, F.W. Cook: 

(cid:120)  Collected  and  reviewed  all  relevant  company  information,  including  our  historical  compensation  data  and  our 

organizational structure; 

(cid:120)  With input from management, established a peer group of companies to use for executive compensation comparisons; 

(cid:120)  (cid:36)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)

compensation philosophy; 

(cid:120)  Prepared a report of its analysis, findings and recommendations for our executive compensation program; and 

(cid:120)  Completed other ad hoc assignments, such as helping with the design of incentive arrangements. 

(cid:41)(cid:17)(cid:58)(cid:17)(cid:3)(cid:38)(cid:82)(cid:82)(cid:78)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:88)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:48)(cid:72)(cid:86)(cid:86)(cid:85)(cid:86)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)

making their recommendations to the Compensation Committee. 

Competitive Benchmarking 

When assessing the soundness of our compensation programs, the Compensation Committee compares the pay practices for 
our  Named  Executive  Officers  against  the  pay  practices  of  other  companies.    This  process  recognizes  our  philosophy  that  our 
compensation practices should be competitive, though marketplace information is only one of the many factors we consider. 

39 

Messrs. Rady and Warren used market compensation data provided by F.W. Cook to assess the total compensation levels of 
our top five executives relative to market, and to make recommendations to the Compensation Committee.  Market data is developed 
(cid:69)(cid:92)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:86)(cid:76)(cid:80)(cid:76)(cid:79)(cid:68)(cid:85)(cid:3) (cid:83)ositions  with  companies  in  our  Peer  Group 
(described  below)  and  with  those  in  the  E&P  industry  in  general.    To  the  extent  possible,  we  consider  the  specific  responsibilities 
assumed by our executives and those assumed by executives at other organizations (based on peer SEC filings) to determine whether 
the positions are comparable.  We give greater weight to Peer Group data if a position appears comparable to the position of  one of 
our  Named  Executive  Officers.    Otherwise,  we  supplement  Peer  Group  data  with  industry  data  from  the  2018  Oil  and  Gas  E&P 
Industry Compensation Survey prepared by Effective Compensation, Incorporated. 

Peer Group  

In 2018, F.W. Cook identified a peer group of onshore publicly traded oil and gas companies that are reasonably similar to us 

(cid:76)(cid:81)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:76)(cid:93)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:20)(cid:26)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:72)(cid:72)(cid:85)(cid:3)(cid:42)(cid:85)(cid:82)(cid:88)(cid:83)(cid:180)(cid:29) 

(cid:120)     Cabot Oil & Gas Corporation 
(cid:120)     Cimarex Energy Co. 
(cid:120)     CNX Resources Corporation 
(cid:120)     Concho Resources Inc. 
(cid:120)     Continental Resources Corporation 
(cid:120)     Devon Energy Corporation 
(cid:120)     Diamondback Energy, Inc. 
(cid:120)     EQT Corporation 
(cid:120)     Noble Energy, Inc. 

(cid:120)     Parsley Energy, Inc. 
(cid:120)     Pioneer Natural Resources Company 
(cid:120)     QEP Resources, Inc. 
(cid:120)     Range Resources Corporation 
(cid:120)     SM Energy Company 
(cid:120)     Southwestern Energy Company 
(cid:120)     Whiting Petroleum Corporation 
(cid:120)     WPX Energy, Inc. 

Two  members of our 2017 peer group, Energen  Corporation and Newfield Exploration Company,  were removed from our 
Peer  Group  for  2018  due  to  pending  acquisitions  at  the  time  of  the  review,  and  three  companies,  CNX  Resources  Corporation, 
Diamondback Energy, Inc. and Parsley Energy, Inc., were added to the Peer Group based on similar size and operational scale. 

Positioning Versus Market  

Beginning in 2018, we determined that it  was appropriate to target the  median of the Peer Group for base salaries, annual 
cash incentive awards, and long-term equity-based incentive awards.  This is a reduction from 2017, when compensation was targeted 
at  the  75th  percentile.    This  reduction  was  adopted  in  response  to  our  2017  say-on-pay  vote  and  feedback  received  from  our 
shareholder outreach program.  As noted throughout this Compensation Discussion and Analysis, target compensation is only one of 
many factors considered by the Compensation Committee when setting compensation levels for our Named Executive Officers. 

Elements of Direct Compensation 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:78)(cid:72)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:82)(cid:81)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Pay Component 

Form of Pay 

How Amount is Determined 

Objective 

Base salary 

Cash 

Annual incentive awards 

Cash 

Market-competitive amount that reflects the 
(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:86)(cid:78)(cid:76)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)
experience and contributions 
Performance against four metrics 

Long-term incentive 
awards 

100% performance 
share units 

Three-year return on capital employed; and three-
year absolute total shareholder return, as adjusted 
by relative total shareholder return compared to the 
Peer Group 

Provide a minimum, fixed level of 
cash compensation 

Encourage performance that is 
aligned with our business strategy 
and that should lead to long-term 
shareholder value 
Encourage performance that delivers 
value to shareholders through stock 
price appreciation 

40 

 
 
 
For  2018,  these  components,  at  target,  were  distributed  as  shown  below  for  our  CEO  and  our  other  Named  Executive 

Officers: 

Base Salaries 

Base salaries are designed to provide a minimum, fixed level of cash compensation for services rendered during the year. In 
addition to providing a base salary that is competitive with salaries paid by other independent oil and gas exploration and production 
(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:68)(cid:92)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:83)(cid:85)(cid:76)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)s 
base salary level relative to the base salary levels of our other officers.  Our objective is to have base salaries that accurately reflect 
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:86)(cid:78)(cid:76)(cid:79)(cid:79)(cid:86)(cid:15)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:82)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:72)(cid:81)(cid:71)(cid:15)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:68)(cid:85)(cid:92)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72) based on a 
subjective analysis of many individual factors, including: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

the responsibilities of the officer; 

the period over which the officer has performed these responsibilities; 

(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:15)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:86)(cid:72)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)position; 

(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:72)(cid:74)(cid:76)(cid:70)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71) 

41 

 
 
 
 
(cid:120) 

the potential future contribution and demonstrated individual performance of the officer. 

In addition to the individual factors listed above, the Compensation Committee considers our overall business performance 
and implementation of Company objectives when determining annual base salaries.  While these metrics generally provide context for 
making salary decisions, base salary decisions do not depend on attainment of specific  goals or performance levels and no specific 
weighting is given to one factor over another. 

Base salaries are reviewed annually, but are not necessarily increased if the Compensation Committee believes that (1) our 
executives are currently compensated at proper levels in light of Company performance or external market factors, or (2) an increase 
or addition to other elements of compensation would be more appropriate in light of our stated objectives. 

In  February  2018,  after  comparing  base  salary  levels  to  those  of  similarly  situated  executives  in  the  Peer  Group  and 
considering  the  individual  and  business  factors  described  above,  Messrs.  Rady  and  Warren  recommended  to  the  Compensation 
Committee that the Named Executive Officers other than themselves receive a 3% base salary increase to reflect increases in cost of 
living, as reflected in the table below.  The Compensation Committee approved this recommendation. 

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

Annual Cash Incentive Awards 

Purpose and Operation 

Base Salary as 
of March 2017 
$ 
$ 
$ 
$ 
$ 

858,000  $ 
645,000  $ 
432,000  $ 
432,000  $ 
375,000  $ 

Base Salary as 
of March 2018 

Percentage 
Increase 

858,000 
645,000 
444,960 
444,960 
386,250 

0% 
0% 
3% 
3% 
3% 

Annual  cash  incentive  payments,  which  we  also  refer  to  as  cash  bonuses,  are  a  key  component  of  each  Named  Executive 
(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:83)(cid:68)(cid:70)(cid:78)(cid:68)(cid:74)(cid:72)(cid:17)(cid:3) (cid:3) (cid:43)(cid:76)(cid:86)(cid:87)(cid:82)(cid:85)(cid:76)(cid:70)(cid:68)(cid:79)(cid:79)(cid:92)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3) (cid:88)(cid:86)(cid:72)(cid:71)(cid:3) (cid:68)(cid:81)(cid:3) (cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:71)(cid:76)(cid:86)(cid:70)(cid:85)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:85)(cid:92)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:69)(cid:82)(cid:81)(cid:88)(cid:86)(cid:17)(cid:3)(cid:3)
However,  based  on  recommendations  from  F.W.  Cook,  the  Compensation  Committee  implemented  a  formal  annual  incentive  plan 
design beginning in fiscal 2014.  This annual incentive plan is based on a balanced scorecard that is used to measure our performance.  

As part of a more structured annual incentive program, we adopted bonus targets for each of the Named Executive Officers, 
expressed  as  a  percentage  of  base  salary.    These  targets,  which  were  determined  based  on  our  compensation  strategy  of  providing 
incentive compensation opportunities that are competitive with the market median, are listed below.  

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

2018 Target Bonus 
(as a % of base 
salary) 

120% 
100% 
85% 
85% 
85% 

42 

Performance Metrics 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:73)(cid:72)(cid:72)(cid:71)(cid:69)(cid:68)(cid:70)(cid:78)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:85)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Compensation Committee decided to alter the structure of our annual incentive program.  We believe the new, simplified design of the 
annual  incentive  program  implemented  for  2018  provides  a  more  transparent  bonus  structure  with  more  objectively  determinable 
(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:86)(cid:17)(cid:3) (cid:3) (cid:58)(cid:72)(cid:3) (cid:68)(cid:79)(cid:86)(cid:82)(cid:3) (cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:81)(cid:72)(cid:90)(cid:3) (cid:86)(cid:87)(cid:85)(cid:88)(cid:70)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:76)(cid:86)(cid:3) (cid:80)(cid:82)(cid:85)(cid:72)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)mpensation 
Committee selected the four metrics described below for the 2018 fiscal year under our annual incentive plan.  These metrics, which 
were specifically chosen for their importance in supporting the strategic initiatives we have established for 2018, are weighted equally 
in calculating annual bonuses.  The following tables shows the results of the 2018 annual incentive program: 

Selected Metrics 
Debt-Adjusted Net Production 

Growth per Share (1) 
Net Debt/EBITDAX (2) 
Free Cash Flow (3) 
Safety and Environmental (4) 

Weighting 
Factor 

25% 

25% 
25% 
25% 

100% 

Threshold 
Performance 

Target 
Performance 

Maximum 
Performance 

Actual 
Performance 

Performance  
(% of Target) 

Weighted 
Score 

9% 

13% 

18% 

13% 

2.5x 
$(170 million) 
0.800 TRIR 
0.100 LTIR 
(cid:178) 

2.1x 
$20 million 
0.580 TRIR 
0.080 LTIR 
0 Notices 

1.8x 
$215 million 
.300 TRIR 
.030 LTIR 
(cid:178) 

2.2x 
$(303 million) 
0.554 TRIR 
0.077 LTIR 
0 Notices 

100% 

88% 
0% 
106% 
109% 
100% 

TOTAL 

25% 

21.88% 
0% 
8.83% 
9.11% 
8.33% 
73.15% 

(1)  Debt-Adjusted Net Production Growth per Share 

Definition.    Annual  production  volumes  divided  by  debt-adjusted  shares.    Debt-adjusted  shares  represent  current  shares 
outstanding plus the quotient of total debt at year end 2018, divided by the weighted average share price during 2018.  

Rationale.    Production  volumes  are  critical  to  our  profitability.    Measuring  those  volumes  on  a  debt-adjusted  per-share  basis 
motivates management to produce those volumes in a capital-efficient manner. 

(2)  Net Debt/EBITDAX 

Definition.  Year-end 2018 net debt divided by 2018 full-year adjusted EBITDAX. 

Rationale.  Managing the balance sheet leverage is essential for growing the business efficiently.  Net Debt/EBITDAX is a key 
debt coverage ratio that motivates management to minimize debt relative to cash flow. 

(3)  Free Cash Flow 

Definition.    Stand-alone  E&P  adjusted  operating  cash  flow,  less  stand-alone  E&P  drilling  and  completion  capital,  less  land 
maintenance capital.  

Rationale.    Measuring  and  rewarding  Free  Cash  Flow  directly  supports  our  go-forward  strategy  of  sustainable  free  cash  flow 
growth by motivating management to optimize operating cash flow relative to upstream capital budgets. 

(4)  Safety and Environmental 

Definition.  The Company measured performance in the Safety and Environmental performance category through several lagging 
indicators:  

(cid:120)  (cid:47)(cid:82)(cid:86)(cid:87)(cid:3)(cid:55)(cid:76)(cid:80)(cid:72)(cid:3)(cid:44)(cid:81)(cid:70)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:53)(cid:68)(cid:87)(cid:72)(cid:3)(cid:11)(cid:179)(cid:47)(cid:55)(cid:44)(cid:53)(cid:180)(cid:12).  This metric refers to the number of lost time injuries (i.e., work-related injuries that result 
in an employee being unable to perform normal work duties the  work day following the  injury event).  LTIR is calculated 
first by multiplying the total number of lost time injuries by 200,000, and then dividing that product by the number of labor 
hours for the recording period. 

(cid:120)  (cid:55)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3) (cid:53)(cid:72)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:44)(cid:81)(cid:70)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3) (cid:53)(cid:68)(cid:87)(cid:72)(cid:3) (cid:11)(cid:179)(cid:55)(cid:53)(cid:44)(cid:53)(cid:180)(cid:12).    This  metric  refers  to  the  number  of  OSHA  recordable  injuries/illnesses  (i.e., 
work-related injuries/illnesses that result in medical intervention beyond first aid).  TRIR is calculated first by multiplying the 

43 

 
 
 
 
 
 
 
 
 
 
 
 
total number of recordable injuries/illnesses by 200,000, and then dividing that product by the number of labor hours for the 
recording period. 

(cid:120)  Environmental.  Performance  with respect to this  metric is attained  if there are no  major environmental related Notices of 

Violation (fines not exceeding $100,000) occurring during the measurement period. 

In addition, the Company monitored several leading indicators in determining performance for the Safety and Environmental 
performance  category.    Leading  indicators  are  proactive,  preventative  and  predictive  measures  that  provide  current  information 
regarding the effective performance, activities and processes of a Safety and Environmental system that may help identify, eliminate 
or  control  risks  in  the  workplace.    Management  reviewed  the  progress  of  each  leading  indicator  throughout  2018  and  assessed  if 
(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:72)(cid:84)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:79)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:79)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:70)(cid:68)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:29)(cid:3)(cid:43)(cid:54)(cid:54)(cid:40)(cid:3)(cid:87)(cid:85)(cid:68)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:15)(cid:3)(cid:50)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:54)afety 
Steering Team activities, Corrective Action/Preventative Action closeout, Environmental Compliance Audit Score, Operational Risk 
Register Reviews, and Field Safety Committee meeting compliance. 

Rationale.  Maintaining a safe work environment and sustainable environmental record is critical to the success of the business 
and execution of our strategy. Measuring safety and environmental metrics motivates all participants to maintain focus on these 
metrics. 

2018 Annual Incentive Program Payouts 

The Compensation Committee evaluated the 2018 annual incentive scorecard and considered the factors noted above.  Our 
performance for 2018 resulted in a payout calculation of 73.15%.  The Compensation Committee elected to pay 2018 annual incentive 
bonuses in March 2019 in the amounts shown below  for the Named Executive Officers.  There were no adjustments for individual 
performance. 

Executive Officer 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

2018 Target Bonus ($) 
1,029,600 
645,000 
378,216 
378,216 
328,313 

Performance Achievement 
Level (Percentage of 
Target) 
73.15% 
73.15% 
73.15% 
73.15% 
73.15% 

Actual 2018 Bonus ($) 

753,140 
471,810 
276,661 
276,661 
240,157 

We are aware that equity prices for E&P companies remain depressed.  However, we believe that the results of our annual 
incentive program are appropriate and aligned with the interests of our shareholders.  We consider the results of this program to have a 
direct correlation to the actions of our management team.  Payments under the annual incentive plan will help us to retain and reward 
the executive team that is responsible for our success.  

Long-Term Equity-Based Incentive Awards 

Long-Term Incentive Awards Granted in 2018 

Based on feedback received from our shareholders in connection with our outreach program, the Compensation Committee 
adjusted  our  compensation  philosophy  with  respect  to  long-term  equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:69)(cid:72)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3) (cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
experience  in  the  Company.    Specifically,  equity  awards  granted  in  2018  targeted  the  market  50th  percentile  of  the  Peer  Group, 
resulting  in  a  reduced  grant  value  for  each  Named  Executive  Officer  (in  the  aggregate,  grant  values  for  2018  were  reduced  23% 
compared to grant values for 2017).  In 2018, all long-term incentive awards for our Named Executive Officers were in the form of 
performance share units granted under the Antero Resources Corporation Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)
performance  share  units  grant(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3) (cid:80)(cid:82)(cid:85)(cid:72)(cid:3) (cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3) (cid:179)(cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:51)(cid:79)(cid:68)(cid:81)-Based 
(cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:41)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79)(cid:3)(cid:60)(cid:72)(cid:68)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

(cid:50)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3) (cid:26)(cid:19)(cid:8)(cid:3) (cid:90)(cid:72)(cid:85)(cid:72)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3) (cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3) (cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:15)(cid:3) (cid:82)(cid:85)(cid:3) (cid:179)(cid:55)(cid:54)(cid:53)(cid:180)(cid:15)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:68)(cid:3)
relati(cid:89)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:80)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:72)(cid:85)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:54)(cid:53)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:22)(cid:19)(cid:8)(cid:3)(cid:90)(cid:72)(cid:85)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:71)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:53)(cid:50)(cid:38)(cid:40)(cid:180)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)
Compensation Committee selected these metrics as they provide for a rigorous framework that rewards the Named Executive Officers 
for impro(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:68)(cid:74)(cid:68)(cid:76)(cid:81)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:71)(cid:88)(cid:86)(cid:87)(cid:85)(cid:92)(cid:3)(cid:83)(cid:72)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79)(cid:17)(cid:3)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:71)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)
a  performance  metric  because  it  motivates  the  Named  Executive  Officers  to  make  decisions  that  result  in  efficient  deployment  of 

44 

 
 
 
 
 
 
 
 
 
 
capital in the business.  Additionally, ROCE is a metric that many investors consider when assessing the performance of companies in 
the oil and gas sector.  

(cid:44)(cid:81)(cid:3)(cid:82)(cid:85)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:70)(cid:75)(cid:76)(cid:72)(cid:89)(cid:72)(cid:3)(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:3) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:55)(cid:54)(cid:53)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3) (cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3) (cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:87)(cid:68)(cid:85)(cid:74)et price of 
(cid:7)(cid:21)(cid:23)(cid:17)(cid:28)(cid:26)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72)(cid:180)(cid:12)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year performance period on April 15, 2021, with the payout, subject to adjustment 
as described below, determined as follows: 

Performance Level 
Below Threshold 
Threshold 
Target 
Maximum 

Absolute TSR 
< 50% of Target Price 
50% of Target Price 
Target Price 
(cid:149)(cid:3)(cid:20)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72) 

Performance Payout % 
 (Pre-Adjustment) 
0% 
50% 
100% 
150% 

Following determination of the absolute TSR, the payout of the TSR PSUs may be adjusted to reflect our TSR performance 
relative to our peer group over the performance period.  A relative TSR ranking of less than the 25th percentile results in a negative 
50% adjustment to the payout of the TSR PSUs, and a relative TSR ranking of greater than the 75th percentile results in a positive 50% 
adjustment to the payout of the TSR PSUs.  A relative TSR ranking of between the 25th percentile and the 75th percentile would not 
result in an adjustment to the payout of the TSR PSUs. 

In order to achieve payout u(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:27)(cid:24)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:27)(cid:17)(cid:26)(cid:8)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:180)(cid:12)(cid:3)

at the end of the three-year performance period on December 31, 2020, with the payout determined as follows: 

Performance Level 
Below Threshold 
Threshold 
Target 
Maximum 

ROCE 
< 85% of Target ROCE 
85% of Target ROCE 
Target ROCE 
(cid:149)(cid:3)(cid:20)(cid:20)(cid:24)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:55)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40) 

Performance Payout % 
0% 
50% 
100% 
200% 

Other Benefits 

Health and Welfare Benefits 

Our Named Executive Officers are eligible to participate in all of our employee  health and welfare benefit arrangements on 
the same basis as other employees (subject to applicable law).  These arrangements include medical, dental and disability insurance, as 
well as health savings accounts.  We provide these benefits in order to ensure that we can competitively attract and retain officers and 
other employees.   This  is a  fixed component of compensation, and these benefits are provided on a non-discriminatory basis to all 
employees. 

Retirement Benefits 

We maintain an employee retirement savings plan through which employees may save  for retirement or future events on a 
tax-advantaged  basis.    Participation  in  the  401(k)  plan  is  at  the  discretion  of  each  individual  employee,  and  our  Named  Executive 
Officers participate in the plan on the same basis as all other employees.  The plan permits us to make discretionary matching and non-
elective  contributions.    Since  January  1,  2014,  the  Company  has  matched  100%  of  the  first  4%  of  eligible  compensation  that 
employees contribute to the plan, but on January 1, 2019, the Company increased its match to the first 6% of eligible compensation 
that employees contribute to the plan.  These matching contributions are immediately fully vested.  

Perquisites and Other Personal Benefits 

We believe the total mix of compensation and benefits provided to our Named Executive Officers is currently competitive. 

(cid:55)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:83)(cid:72)(cid:85)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:83)(cid:79)(cid:68)(cid:92)(cid:3)(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:85)(cid:82)(cid:79)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

45 

 
 
Impact of Simplification Transaction  

(cid:36)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3)(cid:20)(cid:22)(cid:17)(cid:3)(cid:3)(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:53)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:178)Agreements Related 
(cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:180)(cid:3) (cid:90)(cid:72)(cid:15)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3) (cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:87)(cid:82)(cid:3) (cid:68)(cid:3) (cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3) (cid:3) (cid:44)(cid:81)(cid:3) (cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)  with  the 
Transactions contemplated by the Simplification Agreement, outstanding phantom units under the Midstream LTIP and Series B Units 
in IDR LLC held by certain of our Named Executive Officers will be converted or exchanged as described below.   The Transactions 
will  not  constitute  a  "change  in  control"  transaction  under  the  applicable  compensation  arrangements,  thus  there  are  no  change  in 
control payments due to the  executive officers in connection  with the Transactions.  As  a result,  there are no payments that  will be 
made to named executive officers that are based on or otherwise related to the Transactions. 

Antero Midstream Phantom Units 

Our Named Executive Officers spend a portion of their time providing services to the  Partnership, and thus are entitled to 
receive grants of equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:47)(cid:82)(cid:81)(cid:74)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:49)(cid:82)(cid:89)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:23)(cid:15)(cid:3)
each  of  our  Named  Executive  Officers  was  granted  phantom  units  under  the  Midstream  LTIP  in  connection  with  the  initial  public 
offering  of  the  Partnership.    In  April  2016  and  2017,  each of  our  Named  Executive  Officers  was  granted  additional  phantom  units 
under  the  Midstream  LTIP  as  compensation  for  their  additional  services  provided  to  the  Partnership.    No  phantom  units  under  the 
Midstream LTIP were granted during 2018.  Phantom units granted under the Midstream LTIP generally represent the right to receive 
common units of the Partnership upon vesting.  

At the effective time of the Transactions, each outstanding phantom unit under the Midstream LTIP, including those held by 
our Named Executive Officers, will be converted into a restricted stock unit or similar award of New AM with substantially the same 
terms and conditions (including with respect to vesting) applicable to such phantom unit award immediately prior to the effective time 
of  the  Transactions,  representing  the  right  to  receive  a  number  of  shares  of  common  stock  of  New  AM  equal  to  (i)  the  number  of 
common  units  of  the  Partnership  subject  to  such  phantom  unit  award  immediately  prior  to  the  effective  time  of  the  Transactions, 
multiplied  by  (ii)  (A)  1.6350,  plus  (B)  $3.415  divided  by  the  average  of  the  20-day  volume  weighted  average  trading  price  per 
common share representing limited partner interests in AMGP prior to the election deadline.  Additionally, all distribution equivalent 
rights  granted  in  tandem  with  a  corresponding  phantom  unit  award  will  be  converted  into  a  distribution  equivalent  right  or  similar 
award of New AM with substantially the same terms and conditions (including with respect to vesting) applicable to such distribution 
equivalent right immediately prior to the effective time of the Transactions, representing the right to receive (i) any balance accrued on 
such distribution equivalent right as of the effective time of the Transactions and (ii) any dividends paid or distributions made by New 
AM from and after the effective time of the Transactions with respect to the number of shares of common stock of New AM subject to 
the converted phantom unit award to which such converted distribution equivalent right relates.  

Series B Units in IDR LLC 

(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:90)(cid:68)(cid:86)(cid:3) (cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:75)(cid:82)(cid:79)(cid:71)(cid:3) (cid:20)(cid:19)(cid:19)(cid:8)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3) (cid:44)(cid:39)(cid:53)(cid:86)(cid:17)(cid:3) (cid:3) (cid:36)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3) (cid:22)(cid:20)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3) (cid:48)(cid:72)(cid:86)(cid:86)(cid:85)(cid:86)(cid:17)(cid:3) (cid:53)(cid:68)(cid:71)(cid:92)(cid:15)(cid:3) (cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3)
Kennedy held 48,000, 32,000 and 4,000, respectively, of the 98,600 outstanding Series B Units in IDR LLC.  To the extent vested, the 
Series B Units in IDR LLC entitle the holders thereof to receive, subject to the terms and provisions of the IDR LLC Agreement and 
the incentive unit award agreements pursuant to  which the awards  were granted, a proportionate amount of up to 6% of any future 
profits of (cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:26)(cid:17)(cid:24)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)
quarter.    Unvested  Series  B  Units  in  IDR  LLC  are  not  entitled  to  receive  any  distributions;  however,  in  connection  with  any 
subsequ(cid:72)(cid:81)(cid:87)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3) (cid:44)(cid:39)(cid:53)(cid:86)(cid:3) (cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:71)(cid:68)(cid:87)(cid:72)(cid:3) (cid:68)(cid:81)(cid:3) (cid:88)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3) (cid:37)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:86)(cid:3) (cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
holder  of  such  vested  Series  B  Unit  in  IDR  LLC  is  entitled  to  receive  an  additional  distribution  equal  to  the  aggregate  amount  of 
distributions that would have been made with respect to such Series B Unit in IDR LLC during the period in which such Series B Unit 
was unvested if such Series B Unit had been vested.  

With  respect  to  vested  Series  B  Units  in  IDR  LLC,  Messrs.  Rady,  Warren  and  Kennedy  have  the  right,  upon  delivery  of 
notice to IDR LLC, to require IDR LLC to redeem all or a portion of their vested Series B Units for a number of newly issued  AMGP 
common  shares,  equal  to  the  quotient  determined  by  dividing  (a)  the  product  of  (i)  the  Per  Vested  B  Unit  Entitlement  (as  defined 
below) and (ii) the number of vested Series B Units being redeemed, by (b) the volume-weighted average price of an AMGP common 
share  for the 20 trading days ending on and including the trading day prior to the date  (cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:70)(cid:72)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:3)
However,  in  no  event  will  the  aggregate  number  of  AMGP  common  shares  issued  by  AMGP  pursuant  to  all  such  redemptions  by 
owners of Series B Units exceed 6% of the aggregate number of issued and outstanding AMGP common shares.   

46 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:71)(cid:72)(cid:80)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:72)(cid:85)(cid:3)(cid:57)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
the IDR LLC Agreement, and will equal, as of the date of determination, the quotient obtained by dividing (a) the product of (i) the 
fair  market  value  of  IDR  LLC  (which  for  this  purpose  is  based  on  the  equity  value  of  AMGP  calculated  on  the  applicable  date  of 
determination by multiplying the AMGP VWAP Price and the number of then-outstanding AMGP common shares) as of such date 
minus $2.0 billion and (ii) the product of (A) 6%, (B) the percentage of authorized Series B Units that are outstanding at such time and 
(C) the percentage of outstanding Series B Units that have vested, by (b) the total number of vested Series B Units outstanding at such 
time.  In addition, upon the earliest to occur of (x) December 31, 2026, (y) a change of control transaction of AMGP or of IDR LLC, 
or  (z)  a  liquidation  of  IDR  LLC,  AMGP  may  redeem  each  outstanding  Series  B  Unit  in  exchange  for  AMGP  common  shares  in 
accordance with the ratio described above, subject to certain limitations.  

The remaining unvested Series B Units in IDR LLC issued to Messrs. Rady and Warren on December 31, 2016, will become 
vested  on  December  31,  2019,  so  long  as  the  applicable  executive  remains  continuously  employed  by  us  or  one  of  our  affiliates 
through  such  date.    The  remaining  unvested  Series  B  Units  in  IDR  LLC  issued  to  Mr.  Kennedy  on  January  10,  2017  will  become 
vested on December 31, 2019, so long as Mr. Kennedy remains continuously employed by us or one of our affiliates through such 
date.  The potential acceleration and forfeiture events relating to these units are described in greater detail under the hea(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)
Payments Upon Termination or Change of Contr(cid:82)(cid:79)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Pursuant to the Simplification Agreement, AMGP, as the managing member of IDR Holdings, and Messrs. Rady and Warren, 
as the holders of a majority of the Series B Units, entered into an amendment to the IDR Holdings LLC Agreement to facilitate the 
Series  B  Exchange.    At  the  effective  time  of  the  Transactions,  each  holder  of  Series  B  Units  in  IDR  LLC,  including  our  Named 
Executive Officers, will transfer each Series B Unit in IDR LLC it owns (vested and unvested) in exchange for (i) 176.0041 shares of 
common stock of New AM, which will be subject to the terms set forth in the limited liability company agreement of IDR LLC (the 
(cid:179)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12) and will vest in accordance with the applicable equity grant agreement pursuant to which the Series B Unit in 
IDR LLC was originally issued, (ii) an amount in cash equal to the unpaid distributions (other than tax distributions) declared with 
respect to vested Series B Units in IDR LLC, if any, pursuant to the distribution provisions of the IDR LLC Agreement, and (iii) an 
amount in cash to be deposited into an escrow account equal to the distributions declared with respect to unvested Series B Units in 
IDR  LLC, excluding any amounts attributable  to any distributions  made  with respect to unvested Series B Units  in IDR  LLC after 
December 31, 2018 but prior to the effective time of the Transactions. Holders of Series B Units in IDR LLC, including our Named 
Executive Officers who hold Series B Units, will not be entitled to receive any distributions paid by IDR LLC or dividends paid by 
New AM during the 12 months ending December 31, 2019 that are payable on any Series B Units in IDR LLC or shares received in 
exchange for such Series B Units, as applicable, that are scheduled to vest on December 31, 2019. 

Other Matters 

Employment, Severance or Change-in-Control Agreements 

We do not maintain any employment, severance or change-in-control agreements with any of our Named Executive Officers. 

(cid:36)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81) (cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:48)(cid:72)(cid:86)(cid:86)(cid:85)(cid:86)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15)(cid:3)
Schopp, Kilstrom or Kennedy could be entitled to receive accelerated vesting of his restricted stock units in the Company, Series B 
Units  in  IDR  LLC  or  phantom  units  in  the  Partnership,  as  applicable  (including  shares  of  common  stock  of  New  AM  received  in 
exchange  for  such  Series  B  Units  in  IDR  LLC  or  phantom  units  in  the  Partnership),  that  remain  unvested  upon  his  termination  of 
employment with us under certain circumstances or upon the occurrence of certain corporate events.  The Transactions will not result 
in accelerated vesting of such awards or the Series B Units. 

Share Ownership Guidelines  

(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:71)(cid:82)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)
of AMGP common shares within five years of the adoption of the guidelines or within five years of becoming an executive officer, 
whichever is later.  Specifically, each of our executive officers is required to own  AMGP common shares having an  aggregate fair 
mark(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:72)(cid:84)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:87)(cid:3)(cid:79)(cid:72)(cid:68)(cid:86)(cid:87)(cid:3)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:80)(cid:88)(cid:79)(cid:87)(cid:76)(cid:83)(cid:79)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:68)(cid:85)(cid:92)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:86)(cid:75)(cid:82)(cid:90)(cid:81)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

Officer Level 
Chief Executive Officer, President, and Chief Financial Officer 
Vice President 
Other Officers (if applicable) 

Ownership Guideline 

5x annual base salary 
3x annual base salary 
1x annual base salary 

47 

(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)

shareholders.  

Tax and Accounting Treatment of Executive Compensation Decisions 

(cid:54)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:20)(cid:25)(cid:21)(cid:11)(cid:80)(cid:12)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:89)(cid:72)(cid:81)(cid:88)(cid:72)(cid:3)(cid:38)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:20)(cid:28)(cid:27)(cid:25)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:82)(cid:71)(cid:72)(cid:180)(cid:12)(cid:15)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:76)(cid:80)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:68)(cid:3)(cid:7)(cid:20)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:180)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:54)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:20)(cid:25)(cid:21)(cid:11)(cid:80)(cid:12)(cid:12)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:3)(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:80)(cid:68)(cid:92) deduct for federal 
(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3) (cid:87)(cid:68)(cid:91)(cid:3) (cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:179)(cid:55)(cid:68)(cid:91)(cid:3) (cid:38)(cid:88)(cid:87)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:45)(cid:82)(cid:69)(cid:86)(cid:3) (cid:36)(cid:70)(cid:87)(cid:15)(cid:180)(cid:3) (cid:72)(cid:81)(cid:68)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:21)(cid:19)(cid:20)(cid:26)(cid:15)(cid:3) (cid:85)(cid:72)(cid:83)(cid:72)(cid:68)(cid:79)(cid:72)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)-based  compensation 
exception to the Section 162(m) deduction limitation for tax years beginning after December 31, 2017.  In addition, the Tax Cuts and 
(cid:45)(cid:82)(cid:69)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:72)(cid:91)(cid:83)(cid:68)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:70)(cid:82)(cid:83)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:17)(cid:180)(cid:3)(cid:3)(cid:58)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:83)(cid:68)(cid:76)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)rtain 
of our executives will be subject to the $1 million per year deduction limitation imposed by Section 162(m) unless such compensation 
qualifies for the transition relief applicable to certain compensation arrangements in place as of November 2, 2017.  While  we  will 
continue to monitor our compensation programs in light of the deduction limitation imposed by Section 162(m), our Compensation 
Committee considers it important to retain the flexibility to design compensation programs that are in the best long-term interests of 
the Company and our shareholders.  As a result, we have not adopted a policy requiring that all compensation be fully deductible.  The 
Compensation  Committee  may  conclude  that  paying  compensation  at  levels  in  excess  of  the  limits  under  Section  162(m)  is 
nevertheless in the best interests of the Company and our shareholders.  Given changes made to Section 162(m), it is likely that the 
Company  will  not  be  able  to  deduct  for  federal  income  tax  purposes  a  portion  of  the  compensation  paid  to  our  Named  Executive 
Officers in 2018. 

Many other Code provisions and accounting rules affect the payment of executive compensation and are generally taken into 
consideration as our compensation arrangements are developed.  Our goal is to create and maintain compensation arrangements that 
are efficient, effective and in full compliance with these requirements. 

Risk Assessment 

We have reviewed our compensation policies and practices to determine if they create risks that are reasonably likely to have 
a material adverse effect on our Company.  In connection with this risk assessment, we reviewed the design of our compensation and 
benefits program and related policies and determined that certain features of our programs and corporate governance generally help 
mitigate risk.  Among the factors considered were the mix of cash and equity compensation, the balance between short- and long-term 
objectives of our incentive compensation, the degree to which programs provide for discretion to determine payout amounts, and our 
general governance structure. 

Our Compensation Committee believes that our approach of evaluating overall business performance and implementation of 
company objectives assists in mitigating excessive risk-taking that could harm our value or reward poor judgment by our executives. 
Several features of our programs reflect sound risk-management practices.  

(cid:120)  The Compensation Committee believes our overall compensation program provides a reasonable balance between short- 

and long-term objectives, which helps mitigate the risk of excessive risk-taking in the short term.  

(cid:120)  The metrics that determine ultimate value awarded under our incentive compensation programs are associated with total 
company value.   We do not  believe these  metrics create pressure to  meet specific  financial or individual performance 
goals.  

(cid:120)  The performance criteria reviewed by the  Compensation Committee in determining cash bonuses are based on overall 
performance relative to continually evolving objectives, and the Compensation Committee uses its subjective judgment 
in  setting  (cid:69)(cid:82)(cid:81)(cid:88)(cid:86)(cid:3) (cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:86)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:76)(cid:86)(cid:3) (cid:76)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:73)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:68)(cid:83)(cid:83)(cid:79)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)
company-wide  objectives  encourages  decision-making  that  is  in  the  best  long-term  interests  of  our  Company  and  our 
stakeholders as a whole.  

(cid:120)  The multi-year vesting of our equity awards discourages excessive risk-taking and undue focus on short-term gains that 

may not be sustainable.  

48 

Due to the foregoing program features, the Compensation Committee concluded that our compensation policies and practices 
for  all  employees,  including  our  Named  Executive  Officers,  are  not  reasonably  likely  to  have  a  material  adverse  effect  on  the 
Company. 

Tally Sheets 

The  Compensation  Committee  uses  tally  sheets  as  a  reference  point  in  reviewing  and  establishing  our  Named  Executive 
(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:87)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3) (cid:86)(cid:75)(cid:72)(cid:72)(cid:87)(cid:86)(cid:3) (cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3) (cid:68)(cid:3) (cid:75)(cid:82)(cid:79)(cid:76)(cid:86)(cid:87)(cid:76)(cid:70)(cid:3) (cid:89)(cid:76)(cid:72)(cid:90)(cid:3) (cid:82)(cid:73)(cid:3) (cid:68)(cid:79)(cid:79)(cid:3) (cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3) (cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)
compensation, including base salary, annual cash incentive awards, long-term equity incentive awards and indirect compensation such 
as perquisites and retirement benefits.  Tally sheets also demonstrate the amounts each executive could potential receive under various 
termination and change in control scenarios, as well as a summary of all shares beneficially owned.   

Hedging and Pledging Prohibitions 

We have adopted an Insider Trading Policy at each of the Company, the Partnership and AMGP that prohibits our Named 

Executive Officers from engaging in speculative transactions involving our common stock, common units of the Partnership, and 
common shares of AMGP, including buying or selling puts or calls, short sales, purchases of securities on margin, or otherwise 
hedging the risk of ownership of such securities.  The Insider Trading Policies also strictly prohibit our Named Executive Officers 
from pledging such securities as collateral. 

Clawback Policy 

We have adopted a general clawback policy at each of the Company and the Partnership covering long-term incentive award 
plans  and  arrangements.    The  clawback  policy  applies  to  our  current  Named  Executive  Officers  as  well  as  certain  of  our  former 
Named Executive Officers.  Generally, recoupment of compensation would be triggered under the policy in the event of a financial 
restatement caused by fraud or intentional misconduct.  In the  event of such misconduct,  we may recoup performance-based equity 
compensation that was granted, earned or vested based wholly or in part upon the attainment of any financial reporting measure during 
the period in which such misconduct took place.  The clawback policy gives the policy administrator discretion to determine whether a 
clawback  of  compensation  should  be  initiated  in  any  given  case,  as  well  as  the  discretion  to  make  other  determinations,  including 
(cid:90)(cid:75)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:88)(cid:68)(cid:79)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:80)(cid:72)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:3)(cid:86)(cid:83)ecified standard, the amount of compensation to be clawed back, and the form of 
reimbursement to the Company. 

In order to comply with applicable law, the clawback policy may be updated or modified once the SEC adopts final clawback 
rules pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  In addition, the AR LTIP, the Midstream 
LTIP  and  the  AMGP  LTIP  generally  provide  that,  to  the  extent  required  by  applicable  law  or  any  applicable  securities  exchange 
listing standards, or as otherwise determined by the Compensation Committee, all awards under the AR LTIP, Midstream LTIP and 
AMGP  LTIP,  as  applicable,  are  subject  to  the  provisions  of  any  clawback  policy  the  Company  or  the  Partnership,  as  applicable, 
implements. 

49 

 
 
Board Report 

T(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:179)(cid:86)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:80)(cid:68)(cid:87)(cid:72)(cid:85)(cid:76)(cid:68)(cid:79)(cid:15)(cid:180)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:71)(cid:72)(cid:72)(cid:80)(cid:72)(cid:71)(cid:3)(cid:179)(cid:73)(cid:76)(cid:79)(cid:72)(cid:71)(cid:180)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:40)(cid:38)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92) 
reference into any filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective 
of any general incorporation language in such filing. 

The  Board  of  Directors  of  our  general  partner  has  reviewed  and  discussed  the  foregoing  Compensation  Discussion  and 
Analysis  required  by  Item  402(b)  of  Regulation  S-K  with  management  and,  based  on  such  review  and  discussion,  the  Board  of 
Directors  of  our  general  partner  has  determined  that  the  Compensation  Discussion  and  Analysis  shall  be  included  in  this  Annual 
Report on Form 10-K. 

AMGP GP LLC Board Members: 

Peter R. Kagan 
W. Howard Keenan, Jr. 
James R. Levy 
Brooks J. Klimley 
Rose M. Robeson 
Peter A. Dea 
Paul M. Rady 
Glen C. Warren, Jr. 

50 

 
 
 
Summary Compensation Table 

The  following  table  summarizes,  with  respect  to  our  Named  Executive  Officers,  information  relating  to  the  compensation 

earned for services rendered in all capacities during the fiscal years ended December 31, 2018, 2017 and 2016. 

Summary Compensation Table for the Years Ended December 31, 2018, 2017 and 2016 

Name and Principal 
Position 
Paul M. Rady 
(Chairman of the Board  
of Directors and Chief  
Executive Officer) 

Glen C. Warren, Jr. 
(Director, President and 
Chief Financial Officer  
of 

the  Company  and 
Secretary) 

Alvyn A. Schopp 
(Chief Administrative 
Officer and Sr. 
Regional 
Vice President) 

Kevin J. Kilstrom 
(Sr. Vice President(cid:178) 
Production) 

Michael N. Kennedy 
(Sr. Vice President(cid:178) 
Finance, and Chief  
Financial Officer of the 

Partnership) 

Year 
2018 
2017 
2016 

2018 
2017 
2016 

2018 
2017 

2016 

2018 
2017 
2016 

2018 
2017 
2016 

Salary ($)(1) 
858,000 
853,833 
831,667 

Bonus ($)(2) 
(cid:178) 
823,680 
  1,249,500 

Stock 
Awards 
($)(3) 
  7,520,882 
  8,240,720 
  8,185,133 

645,000 
641,833 
625,000 

(cid:178) 
516,000 
782,500 

  3,076,725 
  5,493,827 
  5,456,802 

442,800 
429,833 

(cid:178) 
367,200 

  1,538,352 
  2,032,733 

418,333 

445,188 

  12,805,262 

442,800 
429,833 
418,333 

384,375 
373,167 
363,333 

(cid:178) 
367,200 
445,188 

(cid:178) 
300,000 
364,000 

  1,538,352 
  2,032,733 
  6,739,263 

  1,538,352 
  2,032,733 
  2,021,264 

Option 
Awards ($) 

Non-Equity 
Incentive Plan 
Compensation 
($)(4) 

All Other 
Compensation 
($)(5) 

(cid:178)   
(cid:178)   
(cid:178)  (6)  

(cid:178)   
(cid:178)   
(cid:178)  (6)  

(cid:178)   
(cid:178)   

(cid:178)   

(cid:178)   
(cid:178)   
(cid:178)   

(cid:178)   
(cid:178)  (6)  
(cid:178)   

753,140 
(cid:178) 
(cid:178) 

471,810 
(cid:178) 
(cid:178) 

11,000 
10,800 
10,600 

11,000 
10,800 
10,600 

Total ($) 

9,143,022 
9,929,033 
  10,276,900 

4,204,534 
6,662,460 
6,874,902 

276,661 
(cid:178) 

11,000 
10,800 

2,226,813 
2,840,566 

(cid:178) 

10,600 

  13,679,383 

276,661 
(cid:178) 
(cid:178) 

240,157 
(cid:178) 
(cid:178) 

11,000 
10,800 
10,600 

11,000 
10,800 
9,680 

2,268,813 
2,840,566 
7,613,384 

2,173,884 
2,716,700 
2,758,277 

(1)  (cid:55)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:71)(cid:76)(cid:73)(cid:73)(cid:72)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:179)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:68)(cid:79)(cid:92)(cid:86)(cid:76)(cid:86)(cid:178)Elements of 
Direct Compensation(cid:178)(cid:37)(cid:68)(cid:86)(cid:72)(cid:3)(cid:54)(cid:68)(cid:79)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:180)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:86)(cid:68)(cid:79)(cid:68)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) Executive Officers for 
the 2016, 2017 and 2018 fiscal years took effect on March 1, 2016, March 1, 2017 and March 1, 2018, respectively. 

(2)  Represents the aggregate amount of the annual discretionary cash bonuses paid to each Named Executive Officer for 2016  and 
2017.    The  new  annual  incentive  program  implemented  in  2018  is  intended  to  incentivize  our  Named  Executive  Officers  to 
achieve  specific  performance  goals  throughout  the  year,  and,  as  a  result,  such  amounts  earned  under  the  new  annual  incentive 
program (cid:73)(cid:82)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:49)(cid:82)(cid:81)-(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:15)(cid:3)(cid:85)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:37)(cid:82)(cid:81)(cid:88)(cid:86)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:17) 

(3)  The  amounts  in  this  column  represent  the  grant  date  fair  value  of  (i)  restricted  stock  unit  awards  and  performance  share  unit 
awards  granted  to  the  Named  Executive  Officers  pursuant  to  the  AR  LTIP  and  (ii)  phantom  units  (which  include  Midstream 
(cid:39)(cid:40)(cid:53)(cid:86)(cid:15)(cid:3) (cid:68)(cid:86)(cid:3) (cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:39)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:51)(cid:79)(cid:68)(cid:81)-Based  Awards  Table(cid:178)
(cid:51)(cid:75)(cid:68)(cid:81)(cid:87)(cid:82)(cid:80)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:3)(cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:12)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:68)med Executive Officers pursuant to the Midstream LTIP, each as computed in 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3) (cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:11)(cid:179)(cid:41)(cid:36)(cid:54)(cid:37)(cid:180)(cid:12)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:3) (cid:38)(cid:82)(cid:71)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:11)(cid:179)(cid:36)(cid:54)(cid:38)(cid:180)(cid:12)(cid:3) (cid:55)(cid:82)(cid:83)(cid:76)(cid:70)(cid:3) (cid:26)(cid:20)(cid:27)(cid:17)(cid:3) (cid:44)(cid:81)(cid:3)
2018, the only awards that were granted were performance share unit awards under the AR LTIP.  See Note 9 to our consolidated 
financial statements for additional detail regarding assumptions underlying the value of these equity awards. 

(4)  The  amounts  in  this  column  represent  the  cash  bonus  paid  to  each  Named  Executive  Officer  under  our  2018  annual  incentive 

program. 

(6) 

(5)  (cid:55)(cid:75)(cid:72)(cid:3) (cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:76)(cid:86)(cid:3) (cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3) (cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3) (cid:23)(cid:19)(cid:20)(cid:11)(cid:78)(cid:12)(cid:3) (cid:80)(cid:68)(cid:87)(cid:70)(cid:75)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:73)(cid:76)(cid:86)(cid:70)(cid:68)(cid:79)(cid:3) (cid:21)(cid:19)(cid:20)(cid:25)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:26)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3)
participating  Named  Executive  Officer.    For  fiscal  2016  and  2017,  amounts  in  this  column  may  include  additional  matching 
contributions made with respect to the applicable fiscal year after the filings of the Annual Report relating to such fiscal year.  
In December 2016, Messrs. Rady and Warren were each issued Series B Units in IDR LLC, one-third of which were unvested as 
of  December  31,  2018.    Mr.  Kennedy  was  granted  Series  B  Units  in  IDR  LLC  on  January 10,  2017,  one-third  of  which  were 
(cid:88)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3)(cid:3)(cid:36)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:70)(cid:88)(cid:86)(cid:86)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:178)
(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:180)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:3)(cid:179)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:17)(cid:3)

51 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
Accordingly,  if  IDR  LLC  had  been  liquidated  as  of  the  date  these  Series  B  Units  were  granted,  Messrs.  Rady,  Warren  and 
Kennedy  would  not  have  been  entitled  to  rec(cid:72)(cid:76)(cid:89)(cid:72)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3) (cid:37)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3) (cid:3) (cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3) (cid:86)(cid:72)(cid:72)(cid:3) (cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)
Disclosure to Summary  Compensation Table and Grants of Plan-Based  Awards Table(cid:178)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:180)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:80)(cid:82)(cid:85)(cid:72)(cid:3)
information regarding the Series B Units in IDR LLC. 

Grants of Plan-Based Awards for Fiscal Year 2018 

Name 

  Grant Date   

Paul M. Rady 
TSR PSUs (4)  
ROCE PSUs (5)  
Glen C. Warren, Jr. 
TSR PSUs (4)  
ROCE PSUs (5)  
Alvyn A. Schopp 
TSR PSUs (4)  
ROCE PSUs (5)  
Kevin J. Kilstrom 
TSR PSUs (4)  
ROCE PSUs (5)  
Michael N. Kennedy 
TSR PSUs (4)  
ROCE PSUs (5)  

  4/15/18    
  4/15/18    

   4/15/18 
   4/15/18 

   4/15/18  
  4/15/18    

   4/15/18    
   4/15/18    

  4/15/18    
  4/15/18    

Estimated Future Payouts Under Non- 
Equity Incentive Plan Awards (1) 
Target  
($) 
 1,029,600    

Maximum 
($) 
 2,059,200    

Threshold 
($) 
  514,800    

  322,500    

  645,000    

 1,290,000    

  189,108    

  378,216    

  756,432    

  189,108    

  378,216    

  756,432    

  164,156    

  328,313    

  656,625    

Estimated Future Payouts Under 
Incentive Plan Awards (2) 

Grant Date 
Fair Value of 
Stock and 
Option  

Threshold 
(#) 

  Target (#) 

Maximum 
(#) 

  Awards ($)(3)   

    111,487    
    47,780    

  222,973    
  95,560    

  445,946    
  191,120    

 5,540,879     
 1,980,003     

    45,608    
    19,547    

  91,216    
  39,093    

  182,432    
  78,186    

 2,266,718     
  810,007     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

    22,804    
9,773    

  45,608    
  19,546    

  91,216    
  39,092    

 1,133,359     
  404,993     

(1)  These columns reflect the threshold, target and maximum amount that may be earned under our 2018 annual incentive plan. 
(2)  These  columns  reflect  the  threshold,  target  and  maximum  number  of  shares  of  the  Company  that  may  be  earned  under 

performance share unit awards granted on April 15, 2018.  

(3)  The amounts in this column represent the grant date fair value of performance share unit awards granted to the Named Executive 
Officers  pursuant  to  the  AR  LTIP,  as  computed  in  accordance  with  FASB  ASC  Topic  718.    See  Note  9  to  our  consolidated 
financial statements for additional detail regarding assumptions underlying the value of these equity awards. 

(4)  These  TSR  PSUs  granted  on  April  15,  2018  under  the  AR  LTIP  are  earned  (or  not)  based  upon  our  three-year  absolute  TSR 
performance, as adjusted for relative TSR performance against a peer group of comparable E&P companies.  Pursuant to the TSR 
PSUs, our Named Executive  Officers are eligible to receive threshold, target and  maximum payouts of 50%, 100% and 150%, 
respectively, of the target amount of TSR PSUs awarded.  In order to achieve threshold, target and maximum payouts under the 
(cid:55)(cid:54)(cid:53)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:80)(cid:88)(cid:86)(cid:87)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:87)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3)(cid:20)(cid:19)(cid:19)% of the target price or 
150% of the target price, respectively.  Additionally, the payout under the TSR PSUs may be further adjusted depending on the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:55)(cid:54)(cid:53)(cid:3) (cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:15)(cid:3) (cid:90)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3) (cid:68)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:55)(cid:54)(cid:53)(cid:3) (cid:85)(cid:68)(cid:81)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3) (cid:82)(cid:73)(cid:3) (cid:79)(cid:72)(cid:86)(cid:86)(cid:3) (cid:87)(cid:75)(cid:68)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:21)(cid:24)th  percentile  results  in  a  negative 
adjustment of  -50% and a relative TSR ranking of more than the 75th percentile results in a positive adjustment of 50%,  which 
may result in payout at 0% of target, even if the threshold for actual TSR is achieved.  If actual TSR is achieved  at maximum 
(cid:11)(cid:20)(cid:24)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:92)(cid:82)(cid:88)(cid:87)(cid:3)(cid:68)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:55)(cid:54)(cid:53)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:21)(cid:19)(cid:19)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:15)(cid:3)(cid:68)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)n. 
(5)  (cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:53)(cid:50)(cid:38)(cid:40)(cid:3)(cid:51)(cid:54)(cid:56)(cid:86)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:36)(cid:83)(cid:85)(cid:76)(cid:79)(cid:3)(cid:20)(cid:24)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:81)(cid:82)(cid:87)(cid:12)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:70)(cid:68)pital 
employed  over  the  three-year  performance  period  beginning  January  1,  2018  and  ending  December  31,  2020.   Pursuant  to  the 
ROCE PSUs, our Named Executive Officers are eligible to receive threshold, target and maximum payouts of 50%, 100% and 
200%, respectively, of the target amount of ROCE PSUs.  In order to achieve threshold, target and maximum payouts under the 
ROCE PSUs, the ROCE must be at or above 85% of the target ROCE, 100% of the target ROCE, or 115% of the target ROCE, 
respectively.  

52 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
  
 
   
 
 
   
 
 
 
 
   
   
   
  
 
 
 
 
 
   
 
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
 
 
   
   
   
  
 
   
 
 
   
 
   
 
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards Table 

The following is a discussion of material factors necessary to an understanding of the information disclosed in the Summary 

Compensation Table and the Grants of Plan-Based Awards for Fiscal Year 2018 table. 

Performance Share Units 

The Compensation Committee granted performance share unit awards under the AR LTIP to each of our Named Executive 
Officers  in  April  2018.    The  performance  share  unit  awards  will  be  earned  based  partially  upon  our  three-year  absolute  TSR,  as 
adjusted  by  the  relative  TSR  of  the  Peer  Group,  and  partially  upon  our  three-year  ROCE.    In  each  case,  the  applicable  Named 
Executive  Officer  must  remain  continuously  employed  by  us  from  the  grant  date  through  the  applicable  vesting  date.    All  of  the 
(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:3)(cid:88)(cid:83)(cid:82)(cid:81)(cid:3)(cid:68)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3) death 
or disability.  The potential acceleration and forfeiture events related to these performance share units are described in greater detail 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:72)(cid:68)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:179)(cid:51)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:51)(cid:68)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:56)(cid:83)(cid:82)(cid:81)(cid:3)(cid:55)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:17) 

53 

Outstanding Equity Awards at 2018 Fiscal Year-End 

The following table provides information concerning equity awards that have not vested for our Named Executive Officers as 

of December 31, 2018. 

Option Awards 

Stock Awards 

Number of 
Securities 
Underlying 
Unexercised 
Options 
Unexercisable 
(#)(1) 

Number of 
Securities 
Underlying 
Unexercised 
Options 
Exercisable 
(#) 

Option 
Exercise 
Price ($) 

Option 
Expiration 
Date 

25,000    
16,000    

75,000    
32,000    

50.00 
  N/A 

  4/15/25    
  N/A 

16,667    
10,667    

50,000    
21,333    

50.00 
  N/A 

  4/15/25    
  N/A 

6,250    

18,750    

50.00 

4/15/25   

6,250    

18,750    

50.00 

  4/15/25    

6,250    
(cid:178) 
1,333    

18,750    
60,000    
2,667    

50.00 
54.15 
  N/A 

  4/15/25    
  10/16/23    
  N/A 

Name 
Paul M. Rady 
Restricted Stock Units (4)  
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Series B Units in IDR 
LLC (8)  
Glen C. Warren, Jr. 
Restricted Stock Units (4)    
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Series B Units in IDR 
LLC (8)  
Alvyn A. Schopp 
Restricted Stock Units (4)    
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Kevin J. Kilstrom 
Restricted Stock Units (4)    
Performance Share 
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Michael N. Kennedy 
Restricted Stock Units (4)    
Performance Share  
Units (5)  
Phantom Units (6)  
Stock Options (7)  
Stock Options  
Series B Units in IDR 
LLC (8)  

Equity 
Incentive 
Plan Awards: 
Number of 
Unearned 
Shares, Units 
or Other 
Rights That 
Have Not 
Vested (#) 

Equity 
Incentive 
Plan Awards: 
Market or 
Payout Value 
of Unearned 
Shares, Units 
or Other 
Rights That 
Have Not 
Vested ($)(3) 

  447,739    

 4,204,269    

Number of 
Units That 
Have Not 
Vested (#) 

Market Value 
of Units That 
Have Not 
Vested ($)(2) 

  136,785    

 1,284,411    

87,346    

 1,868,320    

91,191    

  856,279    

58,230    

 1,245,545    

  220,549    

 2,070,955    

  100,714    
22,222    

  945,706    
  208,665    

21,075    

  450,784    

  231,216    

 2,171,118    

63,214    
9,722    

  593,581    
91,290    

21,075    

  450,784    

34,048    

  319,706    

21,075    

  450,784    

  156,216    

 1,466,868    

97,882    

  919,112    

(1)  (cid:36)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:56)(cid:81)(cid:72)(cid:91)(cid:72)(cid:85)(cid:70)(cid:76)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:180)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)

have not yet vested. 

(2)  The amounts reflected in this column represent the market value of (i) common stock underlying the unvested restricted stock unit 
awards and earned but unvested performance share unit awards granted under the AR LTIP held by the Named Executive Officers 
(where the applicable performance hurdle has been achieved but a period of continued service remains), computed based on the 
closing price of our common stock on December 31, 2018, which was $9.39 per share and (ii) common units of the Partnership 
underlying the phantom unit awards granted under the Midstream LTIP to the Named Executive Officers, computed based on the 
(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:7)(cid:21)(cid:20)(cid:17)(cid:22)(cid:28)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:17)(cid:3) 

54 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3)  The amounts reflected in this column represent the market value common stock underlying the performance share units granted 
under the AR LTIP reported in the preceding column, computed based on the closing price of our common stock on December 
31, 2018, which was $9.39 per share. 

(4)  Except as otherwise provided in the applicable award agreement, (i) the restricted stock unit awards granted under the AR LTIP in 
2016 will vest on April 15 of each of 2019 and 2020 and (ii) the restricted stock unit awards granted under the AR LTIP in 2015 
will vest on April 15, 2019, in each case, so long as the applicable Named Executive Officer remains continuously employed by 
us from the grant date through the applicable vesting date. 

(5)  This row includes performance share units granted under the AR LTIP outstanding as set forth below. The amounts included in 
the parentheticals reflect (i) the threshold number of performance share units for the performance share units that vest based on 
our relative TSR, the TSR PSU, as performance as of December 31, 2018 was below the threshold for payout of these awards; (ii) 
the maximum number of the ROCE PSUs, as performance as of December 31, 2018 was at maximum, and (iii) the number of 
unearned performance share units granted in 2016 as special retention awards for which the applicable stock price hurdle has not 
been achieved. The actual number of shares earned pursuant to performance share units may vary substantially from the amounts 
set forth below based on actual performance through the end of the applicable performance period.  
(cid:120) 

In 2016 as a special retention award to Mr. Schopp (133,334) and Mr. Kilstrom (58,334), which vest based upon achievement 
of  certain  stock  price  hurdles.    An  additional  number  of  performance  share  units  granted  to  Mr.  Schopp  (22,222)  and 
Mr. Kilstrom (9,722) have previously become earned upon achievement of the applicable stock price hurdle and will vest in 
February 2019, so long as the applicable Named Executive Officer remains continuously employed by us from the grant date 
through such date.    
In 2016 to Mr. Rady (55,887), Mr. Warren (37,258), Mr. Schopp (13,972), Mr. Kilstrom (13,972) and Mr. Kennedy (13,972), 
(cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:89)(cid:72)(cid:86)(cid:87)(cid:3) (cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year  TSR  achievement  for  the  performance 
period ending April 15, 2019, so long as the applicable Named Executive Officer remains continuously employed by us from 
the grant date through such date. 
In 2017 to Mr. Rady (89,245), Mr. Warren (59,497), Mr. Schopp (22,014), Mr. Kilstrom (22,014) and Mr. Kennedy (22,014), 
that  will  ves(cid:87)(cid:3) (cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year  TSR  achievement  for  the  performance 
period ending April 15, 2020, so long as the applicable Named Executive Officer remains continuously employed by us from 
the grant date through such date.  
In  2018  to  Mr.  Rady  (111,487),  Mr.  Warren  (45,608),  Mr.  Schopp  (22,804),  Mr.  Kilstrom  (22,804)  and  Mr.  Kennedy 
(cid:11)(cid:21)(cid:21)(cid:15)(cid:27)(cid:19)(cid:23)(cid:12)(cid:15)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:89)(cid:72)(cid:86)(cid:87)(cid:3) (cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:68)(cid:69)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:72)(cid:3) (cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year  TSR  achievement  for  the 
performance period ending April 15, 2021, subject to adjustment based on our relative three-year TSR achievement for such 
performance period and so long as the applicable Named Executive Officer remains continuously employed by us from the 
grant date through such date. 
In  2018  to  Mr.  Rady  (191,120),  Mr.  Warren  (78,186),  Mr.  Schopp  (39,092),  Mr.  Kilstrom  (39,092)  and  Mr.  Kennedy 
(cid:11)(cid:22)(cid:28)(cid:15)(cid:19)(cid:28)(cid:21)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:83)(cid:85)(cid:76)(cid:79)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:87)(cid:75)(cid:85)(cid:72)(cid:72)-year ROCE achievement for the 
performance  period  ending  December  31,  2020,  so  long  as  the  applicable  Named  Executive  Officer  remains  continuously 
(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:88)(cid:86)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17) 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

(6)  Except as otherwise provided in the applicable award agreement, the phantom units granted in 2016 under the Midstream LTIP 
will vest on April 15 of each of 2019 and 2020, so long as the applicable Named Executive Officer remains continuously 
employed by us from the grant date through the applicable vesting date. 

(7)  The unvested stock option awards reflected in this row were granted under the AR LTIP and will become vested and exercisable 
on  April 15,  2019,  so  long  as  the  applicable  Named  Executive  Officer  remains  continuously  employed  by  us  or  one  of  our 
affiliates through such date. 

(8)  The Series B Units in IDR LLC reflected in this row are intended to constitute profits interests for federal tax purposes, rather 
than traditional option awards, and therefore,  there is no exercise price or expiration date associated  with them.   The  unvested 
Series  B  Units  in  IDR  LLC  reflected  in  this  row  will  become  vested  and  exercisable  on  December  31,  2019,  so  long  as  the 
applicable Named Executive Officer remains continuously employed by us or one of our affiliates through each such date.  

55 

 
Option Exercises and Stock Vested in Fiscal Year 2018 

The following table provides information concerning equity awards that vested or were exercised by our Named Executive 

Officers during the 2018 fiscal year. 

Name 
Paul M. Rady 
Restricted Stock Units 
Phantom Units 
Glen C. Warren, Jr. 
Restricted Stock Units 
Phantom Units 
Alvyn A. Schopp 
Restricted Stock Units 
Phantom Units 
Kevin J. Kilstrom 
Restricted Stock Units 
Phantom Units 
Michael N. Kennedy 
Restricted Stock Units 
Phantom Units 

Option Awards(1) 

Stock Awards 

Number of 
Shares 
Acquired on 
Exercise (#) 

Value Realized 
on Exercise ($) 

Number of 
Shares 
Acquired on 
Vesting (#)(2) 

Value Realized 
on Vesting ($)(3) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 

79,093 
83,000 

52,729 
55,333 

139,345 
20,398 

89,345 
20,398 

70,984 
18,898 

1,638,807 
2,231,400 

1,092,545 
1,487,592 

2,531,602 
549,022 

1,680,602 
549,022 

1,152,468 
506,722 

(1)  There were no stock option exercises during the 2018 fiscal year. 
(2)  The  equity  awards  that  vested  during  the  2018  fiscal  year  disclosed  in  this  column  consist  of  (i)  restricted  stock  units  granted 
under the AR LTIP, (ii) the vested portion of the performance share unit awards granted under the AR LTIP as special retention 
awards in February 2016 to Messrs. Schopp and Kilstrom, and (iii) phantom units granted under the Midstream LTIP. 

(3)  The  amounts  reflected  in  this  column  represent  the  aggregate  market  value  realized  by  each  Named  Executive  Officer  upon 
vesting of (i) the restricted stock unit awards held by such Named Executive Officer, computed based on the closing price of our 
common stock on the applicable vesting date, and (ii) the phantom unit awards held by such Named Executive Officer, computed 
(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81) units on the applicable vesting date. 

Pension Benefits 

We do not provide pension benefits to our employees. 

Nonqualified Deferred Compensation 

We do not provide nonqualified deferred compensation benefits to our employees. 

Payments Upon Termination or Change in Control 

Restricted Stock Units, Performance Share Units, Phantom Units and Stock Options 

Any unvested restricted stock units, unvested phantom units or unvested stock options subject to time-based vesting criteria 
granted to our Named Executive Officers under the AR LTIP or the Midstream LTIP, as applicable, will become immediately fully 
(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3) (cid:11)(cid:68)(cid:81)(cid:71)(cid:15)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:70)(cid:68)(cid:86)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3) (cid:73)(cid:88)(cid:79)(cid:79)(cid:92)(cid:3) (cid:72)(cid:91)(cid:72)(cid:85)(cid:70)(cid:76)(cid:86)(cid:68)(cid:69)(cid:79)(cid:72)(cid:12)(cid:3) (cid:76)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:88)(cid:86)(cid:3)
(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:76)(cid:86)(cid:3)(cid:71)(cid:72)(cid:68)(cid:87)(cid:75)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:82)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
Midstream LTIP, as applicable).  For performance share unit awards, any continued employment conditions will be deemed satisfied 
on  the  date  of  the  applicable  (cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:71)(cid:88)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:75)(cid:76)(cid:86)(cid:3) (cid:71)(cid:72)(cid:68)(cid:87)(cid:75)(cid:3) (cid:82)(cid:85)(cid:3) (cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3) (cid:82)(cid:85)(cid:3) (cid:88)(cid:83)(cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3) (cid:82)(cid:73)(cid:3) (cid:68)(cid:3)
(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)ance 
share unit awards will be settled based on the actual level of performance achieved as of such date.  

56 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:68)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:179)(cid:71)(cid:76)(cid:86)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:3)(cid:76)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)s 
unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be 
expected to result in death or which has lasted or can be expected to last for a continuous period of at least 12 months. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29) 

(cid:120)  A person or group of persons acquires beneficial ownership of 50% or more of either (a) the outstanding shares of our 
common stock or (b) the combined voting power of our voting securities entitled to vote in the election of directors, in 
each case with the exception of (i) any acquisition directly from us, (ii) any acquisition by us or any of our affiliates, or 
(iii) any acquisition by any employee benefit plan sponsored or maintained by us; 

(cid:120)  The incumbent members of the Board cease for any reason to constitute at least a majority of the Board; 

(cid:120)  The consummation of a reorganization, merger or consolidation, or sale or other disposition of all or substantially all of 
our assets, or an acquisitio(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:92)(cid:3)(cid:11)(cid:68)(cid:3)(cid:179)(cid:37)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:69)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:70)(cid:68)(cid:86)(cid:72)(cid:15)(cid:3)(cid:88)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:15)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)
Business Combination, (A) our outstanding common stock immediately prior to such Business Combination represents 
more than 50% of the outstanding common equity interests and the outstanding voting securities entitled to vote in the 
election  of  directors  of  the  surviving  entity,  (B)  no  person or  group  of  persons  beneficially  owns  20%  or  more  of  the 
common equity interests of the surviving entity or the combined voting power of the voting securities entitled to vote 
generally in the election of directors of such surviving entity, and (C) at least a majority of the members of the board of 
directors  of  the  surviving  entity  were  members  of  the  incumbent  board  at  the  time  of  the  execution  of  the  initial 
agreement or corporate action providing for such Business Combination; or 

(cid:120)  Approval by our shareholders of a complete liquidation or dissolution of the Company. 

(cid:41)(cid:82)(cid:85)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180) means the occurrence of any of the following events: 

(cid:120)  A person or group of persons, other than certain affiliates of the Partnership, becomes the beneficial owner, by way of 
merger, acquisition, consolidation, recapitalization, reorganization, or otherwise, of 50% or more of the voting power of 
the equity interests in the general partner of the Partnership; 

(cid:120)  The sale or disposition by either the Partnership or the general partner of the Partnership of all or substantially all of its 

assets; 

(cid:120)  The general (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:72)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:30) 

(cid:120)  A transaction resulting in a person or group of persons other than the general partner of the Partnership, the Partnership, 

the Company or one of their respective affiliates becoming the general partner of the Partnership; or 

(cid:120)  (cid:36)(cid:3)(cid:179)(cid:38)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:73)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:17) 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:17)(cid:3) 

Series B Units in IDR LLC 

The Series B Units in IDR LLC held by Messrs. Rady, Warren and Kennedy will vest upon the consummation of a change of 
control  transaction  (as  defined  in  the  IDR  LLC  Agreement)  or  upon  an  involuntary  termination  without  cause  or  due  to  death  or 
disability.    As  discussed  above,  the  Series  B  Units  in  IDR  LLC  issued  to  Messrs.  Rady  and  Warren  on  December 31, 2016  and  to 
Mr. (cid:46)(cid:72)(cid:81)(cid:81)(cid:72)(cid:71)(cid:92)(cid:3)(cid:82)(cid:81)(cid:3)(cid:45)(cid:68)(cid:81)(cid:88)(cid:68)(cid:85)(cid:92)(cid:3)(cid:20)(cid:19)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:87)(cid:76)(cid:87)(cid:88)(cid:87)(cid:72)(cid:3)(cid:179)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:180)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:73)(cid:72)(cid:71)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:88)(cid:85)(cid:83)(cid:82)(cid:86)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:87)(cid:85)(cid:68)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:82)ptions. 

As  used  in  the  IDR  LLC  Agreement  and  the  award  agreements  pursuant  to  which  the  Series  B  Units  in  IDR  LLC  were 

(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:15)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:80)(cid:72)(cid:68)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:70)(cid:70)(cid:88)(cid:85)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:86)(cid:29) 

(cid:120)  Any  consolidation,  conversion,  merger  or  other  business  combination  involving  IDR  Holdings  or  AMGP,  in  which  a 
majority of the outstanding Series A Units of IDR LLC or a majority of the outstanding common shares of AMGP (the 

57 

(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:82)(cid:85)(cid:3) (cid:70)(cid:82)(cid:81)(cid:89)(cid:72)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:87)(cid:82)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:15)(cid:3) (cid:86)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:68)(cid:3) (cid:70)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:85)(cid:3) other  business 
organization, or other property; 

(cid:120)  A sale or other disposition of all or a material portion of the assets of IDR LLC; 

(cid:120)  A  sale  or  other  disposition  of  all  or  substantially  all  of  the  assets  of  AMGP  followed  by  a  liquidation  of  AMGP  or  a 
distribution to the partners of AMGP of all or substantially all of the net proceeds of such disposition after payment of 
liabilities and other obligations of AMGP; 

(cid:120)  The sale by all the members of IDR LLC of all or substantially all of the outstanding IDR LLC membership interests in a 

single transaction or series of related transactions; or 

(cid:120)  The sale of all of the outstanding AMGP common shares in a single transaction or series of related transactions. 

(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:180)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)he IDR LLC agreement. 

Pursuant to Amendment No. 2 to the IDR LLC Agreement entered into in connection with the entry into the Simplification 

Agreement, the Transactions contemplated by the Simplification Agreement, including the Series B Exchange, do not constitute a 
(cid:179)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17) 

As discussed above, each of Messrs. Rady, Warren and Kennedy have the right, upon delivery of written notice to IDR LLC, 
to require IDR LLC to redeem all or a portion of their vested Series B Units for a number of newly issued AMGP common shares, as 
(cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:88)(cid:79)(cid:68)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:179)(cid:49)(cid:68)(cid:85)(cid:85)(cid:68)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:39)(cid:76)(cid:86)(cid:70)(cid:79)(cid:82)(cid:86)(cid:88)(cid:85)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:85)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)-
Based Awards Table(cid:178) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:47)(cid:47)(cid:38)(cid:180)(cid:3)(cid:68)(cid:69)(cid:82)(cid:89)(cid:72)(cid:17) 

The  above  mechanisms  are  subject  to  customary  conversion  rate  adjustments  for  equity  splits,  equity  dividends  and 

reclassifications. 

Potential Payments Upon Termination or Change in Control Table for Fiscal 2018 

If the employment of any of our Named Executive  (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)
death  or  disability,  the  unvested  portion  of  his  restricted  stock  units,  phantom  units  and  stock  options,  as  applicable,  would  have 
become vested.  The restricted stock units (and, if exercised, the stock options) granted under the AR LTIP represent a direct interest 
in  shares  of  our  common  stock,  which  had  a  closing  price  on  December  31,  2018,  of  $9.39  per  share.   The  phantom  units  granted 
under the Midstream LTIP represent a direct intere(cid:86)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:75)(cid:68)(cid:71)(cid:3)(cid:68)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:70)(cid:72)(cid:3)(cid:82)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)
2018, of $21.39 per unit. 

The amounts that each of our Named Executive Officers  would receive in connection  with the accelerated vesting of their 
equity awards (other than stock options) upon a termination due to their death or disability (assuming such termination occurred on 
December 31, 2018) are reflected in the last column of the Outstanding Equity Awards at 2018 Fiscal Year-End table above.  Because 
the exercise price of s(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)
stock on December 31, 2018, no value would have been received by our Named Executive Officers with respect to their stock options 
in connection with the accelerated vesting of these awards. 

58 

Quantification of Benefits  

The  following  table  summarizes  the  compensation  and  other  benefits  that  would  have  become  payable  to  each  Named 

Executive Officer assuming a change in control of the Company and the Partnership occurred on December 31, 2018. 

Name 
Paul M. Rady 
Glen C. Warren, Jr. 
Alvyn A. Schopp 
Kevin J. Kilstrom 
Michael N. Kennedy 

Potential Payments upon a Change in Control of the Company as of December 31, 2018 

Restricted 
Stock Units 
($) 
 1,284,411 
  856,279 
  945,706 
  593,581 
  319,706 

Performance 
Share Unit 
Awards ($)(1) 
 1,794,617 
  734,167 
  575,738 
  458,363 
  367,074 

Phantom 
Units ($)  
 1,868,320 
1,245,545 
  450,784 
  450,784 
  450,784 

Stock 
Options 
($)(2) 

Series B Units 
in IDR LLC 
($)(3) 

(cid:178) 
(cid:178) 
(cid:178) 
(cid:178) 
(cid:178) 

(cid:178) 
(cid:178) 
N/A 
N/A 
(cid:178) 

Total ($) 
  4,947,348 
  2,835,991 
  1,972,228 
  1,502,728 
  1,137,564 

(1)  Acceleration of the performance share unit awards granted under the AR LTIP in 2016 (other than the special performance share 
unit award in February 2016 to Messrs. Schopp and Kilstrom) and 2017, the TSR PSUs and ROCE PSUs is based upon actual 
performance as of the date of the change in control.  As of December 31, 2018, (i) all such awards (other than the ROCE PSUs) 
were  trending  below  threshold,  so  no  value  would  have  been  received  by  our  Named  Executive  Officers  with  respect  to  such 
awards  in connection  with the accelerated vesting of  such  awards (other than the ROCE PSUs) and (ii) the ROCE PSUs  were 
(cid:87)(cid:85)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:87)(cid:3) (cid:80)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:15)(cid:3) (cid:86)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:79)(cid:72)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:86)(cid:72)(cid:87)(cid:87)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:87)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:68)(cid:90)(cid:68)(cid:85)(cid:71)(cid:182)(cid:86)(cid:3) (cid:80)(cid:68)(cid:91)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3) (cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:17)(cid:3)(cid:3)(cid:58)(cid:76)(cid:87)(cid:75)(cid:3)
respect  to  the  special  performance  share  unit  award  granted  in  February  2016  to  Messrs.  Schopp  and  Kilstrom,  the  amount 
reflected  here  represents  the  lapse  of  the  employment  condition  for  the  portion  of  such  awards  for  which  the  applicable  stock 
price hurdle has previously been achieved.  

(2)  Because  the  exercise  price  of  stock  options  held  by  our  Named  Executive  Officers  exceeded  the  fair  market  value  of  the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:82)(cid:81)(cid:3)(cid:39)(cid:72)(cid:70)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:81)(cid:82)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3) (cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:69)(cid:72)(cid:72)(cid:81)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:49)(cid:68)(cid:80)(cid:72)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
respect to their stock options in connection with the accelerated vesting of these awards. 

(3)  The  Series  B  Units  in  IDR  LLC  held  by  each  of  Messrs.  Rady,  Warren  and  Kennedy  will  vest  upon  the  consummation  of  a 
change of control transaction or upon an involuntary termination of th(cid:72)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:182)(cid:86)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)
to death or disability.  The Series B Units in IDR LLC are not traditional options.  The redemption right described above only 
applies upon a change of control transaction applicable to  IDR  LLC or the  general partner of  the Partnership (not a  change of 
control of the Company or the Partnership), and, therefore, the redemption value is not disclosed in this table. 

Compensation of Directors 

General 

Our non-employee directors are entitled to receive compensation consisting of retainers, fees and equity awards as described 

below.  The Compensation Committee reviews and approves non-employee director compensation on a periodic basis. 

Our employee directors, Messrs. Rady and Warren, do not receive additional compensation for their services as directors. All 
compensation that Messrs. Rady and Warren received from the Company as employees is disclosed in the Summary Compensation 
Table above. 

Messrs. Kagan, Keenan and Levy have agreed or are otherwise obligated to transfer all or a portion of the compensation they 

receive for their service as directors to the sponsor with which they are affiliated. 

Annual Retainers  

Each non-employee director received the following compensation for the 2018 fiscal year: 

(cid:120) 

(cid:120) 

an annual retainer of $70,000; 

an additional retainer of $7,500 for each member of the audit committee, plus an additional $12,500 for the chairperson; 
and 

59 

 
 
 
 
 
 
 
 
 
 
(cid:120) 

an additional retainer of $10,000 for each member of the conflicts committee, plus an additional $5,000 for the 
chairperson. 

All retainers are paid on a quarterly basis in arrears, but directors have the option to elect, on an annual basis, to receive all or 

a portion of their retainers in the form of shares of our common stock.  Directors do not receive any meeting fees, but each director is 
reimbursed for (1) travel and miscellaneous expenses to attend meetings and activities of the Board or its committees, and (2) travel 
(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:76)(cid:86)(cid:70)(cid:72)(cid:79)(cid:79)(cid:68)(cid:81)(cid:72)(cid:82)(cid:88)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:76)(cid:83)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:76)(cid:81)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:72)(cid:71)(cid:88)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81) and orientation programs for directors. 

Equity-Based Compensation 

In addition to cash compensation, our non-employee directors receive quarterly grants of fully vested common shares with an 

aggregate value equal to $100,000 per year, subject to the terms and conditions of the AMGP LTIP and the award agreements 
pursuant to which such awards are granted.  

Under our share ownership guidelines adopted in 2017, each of our non-employee directors other than Messrs. Kagan, 

Keenan and Levy is required to own a minimum number of our common shares within five years of the adoption of the guidelines or 
within five years of being appointed to the Board, whichever is later.  Specifically, each of such non-employee directors is required to 
own common shares having an aggregate fair market value equal to at least five times the amount of the annual cash retainer we pay to 
our non-(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:74)(cid:88)(cid:76)(cid:71)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:79)(cid:76)(cid:74)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:182)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:70)(cid:79)(cid:82)(cid:86)(cid:72)(cid:79)(cid:92)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)of 
our shareholders. 

Total Non-Employee Director Compensation 

The  following  table  provides  information  concerning  the  compensation  of  our  non-employee  directors  for  the  fiscal  year 

ended December 31, 2018. 

Name 
Peter R. Kagan (3) 
W. Howard Keenan, Jr. 
Rose M. Robeson (4) 
James R. Levy (3) 
Peter A. Dea (5) 
Brooks J. Klimley (4) 

Fees Earned or 
Paid in Cash 
($)(1) 

Unit Awards 
($)(2) 

Total ($) 

70,000 
70,000 
120,000 
77,500 
58,125 
117,500 

100,000 
100,000 
100,000 
100,000 
68,132 
100,000 

170,000 
170,000 
220,000 
177,500 
126,257 
217,500 

(1) 

Includes  annual  cash  retainer,  committee  fees  and  committee  chair  fees  for  each  non-employee  director  during  fiscal  2018,  as 
more fully explained above. 

(2)  Amounts in this column reflect the aggregate grant date fair value of shares granted under the AMGP LTIP in fiscal year 2018, 
computed in accordance with FASB ASC Topic 718.  See Note 5 to our consolidated financial statements on Form 10-K for the 
year  ended  December  31,  2018,  for  additional  detail  regarding  assumptions  underlying  the  value  of  these  equity  awards.    The 
grant date fair value for awards of common shares is based on the closing price of our common shares on the grant date. 

(3)  Messrs. Kagan and Levy elected to receive their retainer fees for the 2018 fiscal year in the form of common shares. 
(4)  During 2018, Ms. Robeson and Mr. Klimley received additional fees of $20,000 and $25,000, respectively, in connection  with 

their service on the special committee created for purposes of evaluating and approving the Transactions. 

(5)  Mr. Dea was appointed as a non-employee director on April 26, 2018. 

Equity Compensation Plan Information 

The following table sets forth information about securities that may be issued under the existing equity compensation plans of 

the Company, the Partnership, and AMGP as of December 31, 2018. 

60 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of securities to be 
issued upon exercise of 
outstanding options, 
warrants and rights  
(a) 

Weighted (cid:177) average 
exercise price of 
outstanding options, 
warrants and rights  
(b) 

Number of securities 
remaining available for 
future issuance under 
equity compensation 
plans (excluding 
securities reflected in 
column (a))  
(c) 

4,059,401 

$50.55(4) 

583,000 

N/A 

(cid:178) 
4,642,401 

N/A(5) 

N/A(6) 

(cid:178) 

8,351,638 

7,932,261 

881,626 

(cid:178) 
17,165,525 

Plan Category 
Equity compensation plans 

approved by security holders 

Antero Resources Corporation 

Long-Term Incentive Plan (1) 
Antero Midstream Partners LP 
Long-Term Incentive Plan (2) 
Antero Midstream Partners GP LP 
Long-Term Incentive Plan (3) 
Equity compensation plans not 
approved by security holders 
Total 

(1)  The Antero Resources Corporation Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)approved by our sole shareholder prior to our 

IPO and by our shareholders at the 2014 annual meeting of shareholders. 

(2)  The Antero Midstream Partners LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)

general partner of the Partnership prior to its IPO. 

(3)  The AMGP LTIP was approved by the general partner of the general partner of the Partnership prior to its IPO. 
(4)  The calculation of the weighted-average exercise price of outstanding options, warrants and rights excludes restricted stock unit 

awards granted under the AR LTIP. 

(5)  Only phantom unit awards and restricted unit awards have been granted under the Midstream LTIP; there is no weighted average 

exercise price associated with these awards. 

(6)  Only  common  shares  representing  limited  partner  interests  have  been  granted  under  the  AMGP  LTIP;  there  is  no  weighted 
average  exercise  price  associated  with  these  awards.    Awards  under  the  AMGP  LTIP  have  only  been  issued  to  non-employee 
(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:17)(cid:3)(cid:3)(cid:49)(cid:82)(cid:3)(cid:68)wards have been made to our Named Executive Officers under the 
AMGP LTIP. 

CEO Pay Ratio 

Pursuant  to  Section  953(b)  of  the  Dodd-Frank  Wall  Street  Reform  and  Consumer  Protection  Act  and  Item  402(u)  of 
Regulation S-K, this section provides information regarding the relationship of the annual total compensation of all of our employees 
to  the  annual  total  compensation  of  our  CEO,  Mr.  Rady.    For  2018,  the  median  of  the  annual  total  compensation  of  all  Company 
employees (other than our CEO), calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, was $92,772, and 
the annual total compensation of our CEO, as reported in the Summary Compensation Table, was $9,143,022.  

Based on this information, for 2018, the ratio of the annual total compensation of Mr. Rady to the median of the annual total 

compensation of all of our employees was 99 to 1.  

Methodology and Assumptions 

When  identifying  our  median  employee  in  2018,  we  selected  December  31,  2018,  as  the  date  on  which  to  determine  our 
employee population for purposes of identifying the median of the annual total compensation of all of our employees (other than the 
CEO), because it was efficient to collect payroll data and other necessary information as of that date.  As of December 31, 2018, our 
employee  population  consisted  of  622  individuals,  including  all  individuals  employed  by  the  Company  or  any  of  its  consolidated 
subsidiaries, whether as full-time, part-time, seasonal or temporary workers.  This population does not include independent contractors 
engaged by the Company.  All of our employees are located in the United States.  

In  identifying  our  median  employee  in  2018,  we  utilized  the  annual  total  compensation  as  reported  in  Box  1  of  each 
(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:58)-2 for 2018 provided to the Internal Revenue Service.  We believe this methodology provides a reasonable basis 
(cid:73)(cid:82)(cid:85)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3) (cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:76)(cid:86)(cid:3) (cid:68)(cid:81)(cid:3) (cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3) (cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:3) (cid:83)(cid:82)(cid:83)(cid:88)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)
total  annual  compensation  and  identifying  our  median  employee.  For  the  103  employees  hired  during  2018,  we  utilized  the  annual 

61 

 
 
 
 
 
(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80)(cid:3) (cid:58)-2  for  2018  without  annualization  adjustments.    No  cost-of-living 
adjustments were made in identifying our median employee, as all of our employees (including our CEO) are located in the United 
States.    This  calculation  methodology  was  consistently  applied  to  our  entire  employee  population,  determined  as  of  December 31, 
2018, in order to identify our median employee in 2018. 

(cid:36)(cid:73)(cid:87)(cid:72)(cid:85)(cid:3) (cid:90)(cid:72)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3) (cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:15)(cid:3) (cid:90)(cid:72)(cid:3) (cid:70)(cid:68)(cid:79)(cid:70)(cid:88)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:72)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3) (cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)
2018 in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, which resulted in annual total compensation of $92,772. 
(cid:55)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:73)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:69)(cid:72)(cid:87)(cid:90)(cid:72)(cid:72)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:3)(cid:58)-(cid:21)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:72)(cid:71)(cid:76)(cid:68)(cid:81)(cid:3)(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)
compensation calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K was $3,181.  This amount reflects the 
(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:23)(cid:19)(cid:20)(cid:11)(cid:78)(cid:12)(cid:3)(cid:80)(cid:68)(cid:87)(cid:70)(cid:75)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:82)(cid:81)-cash imputed earnings offset by benefits deductible from gross income.  Similarly, the 2018 annual 
total compensation of our CEO was calculated in accordance with paragraph (c)(2)(x) of Item 402 of Regulation S-K, as reported in 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:55)(cid:82)(cid:87)(cid:68)(cid:79)(cid:180)(cid:3)(cid:70)(cid:82)(cid:79)(cid:88)(cid:80)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:55)(cid:68)(cid:69)(cid:79)(cid:72)(cid:17) 

62 

 
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 

The following table sets forth the beneficial ownership of common shares of Antero Midstream GP LP that were issued and 

outstanding as of February 13, 2019 held by: 

(cid:120) 

(cid:120) 

(cid:120) 

(cid:120) 

our general partner; 

beneficial owners of 5% or more of our common units; 

each director and Named Executive Officer; and 

(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:17) 

Except as otherwise noted, the person or entities listed below have sole voting and investment power with respect to all of our 
common  shares  beneficially  owned  by  them,  except  to  the  extent  this  power  may  be  shared  with  a  spouse.    All  information  with 
respect  to  beneficial  ownership  has  been  furnished  by  the  respective  directors,  officers  or  beneficial  owners  of  5%  or  more  of  our 
common shares, as the case may be.  Unless otherwise noted, the address for each beneficial owner listed below is 1615 Wynkoop 
Street, Denver, Colorado 80202. 

Name of Beneficial Owner 
Warburg Pincus Funds(¹) 
AMGP GP LLC(²) 
Peter R. Kagan(3)(4) 
W. Howard Keenan, Jr.(5)(6) 
Brooks J. Klimley(7) 
James R. Levy(3)(4) 
Rose M. Robeson 
Peter A. Dea 
Paul M. Rady(8) 
Glen C. Warren, Jr.(9) 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Michael N. Kennedy 
All directors and executive officers as a group (11 persons)(10) 

Common Shares 
Beneficially 
Owned 

Percentage of 
  Common Shares   
  Beneficially 

Owned 

55,109,589 
(cid:178)  
55,125,401 
9,619 
9,619  
55,126,066 
9,619  
4,486  
19,996,619 
14,931,079 
917,548  
1,394,146 
27,774  
37,332,798 

29.6 % 
(cid:178)  % 
29.6 % 
*  % 
*  % 
29.6 % 
*  % 
*  % 
10.7 % 
8.0 % 
*  % 
*  % 
*  % 
20.0 % 

*  Less than 1%. 
(1)  (cid:55)(cid:75)(cid:72)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3) (cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:3) (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3) (cid:68)(cid:3) (cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)(cid:3) (cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:180)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3)
together with its two affiliated partnerships, Warburg Pincus Netherlands Private Equity VIII C.V.  I, a company formed under 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:79)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:57)(cid:3)(cid:44)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-WPVIII 
(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3) (cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:58)(cid:51)(cid:3) (cid:57)(cid:44)(cid:44)(cid:44)(cid:3) (cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3) (cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:59)(cid:3) (cid:50)(cid:9)(cid:42)(cid:15)(cid:3) (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3) (cid:68)(cid:3) (cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)
(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:58)(cid:51)(cid:3)
(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)-WPVIII Inv(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
general partner of WP-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:59)(cid:15)(cid:3)(cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)
partner of each of the WP X O&G Funds.  Warburg Pincus X GP  (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)-
WPVIII  GP  and  WP  X  GP  LP.    Warburg  Pincus  Partners,  L.P.,  a  Delaware  limited  (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3) (cid:76)(cid:86)(cid:3) (cid:11)(cid:44)(cid:12)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
managing member of WPP GP, and (ii) the general partner of WP VIII and WP VIII CV I. Warburg Pincus Partners GP LLC, a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51) is the managing member of 
WP Partners GP.  WP LLC is the manager of each of the WP VIII Funds and the WP X O&G Funds.  Each of the WP VIII Funds, 
the WP X O&G Funds, WP-WPVIII GP, WP X GP, WP X GP LP, WPP GP, WP Partners, WP Partners GP, WP and WP LLC 
are (cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:180) 

(2)  (cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:85)(cid:72)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)r 
common units or the Series A Units of IDR LLC will be controlled by its sole member, AMGP.  The board of directors of AMGP 

63 

 
 
 
 
  
 
 
 
 
 
     
     
 
 
 
 
 
 
 
GP,  which  acts  by  majority  approval,  comprises  Peter  R.  Kagan,  W.  Howard  Keenan, Jr.,  Brooks  J.  Klimley,  James  R.  Levy, 
Rose  M.  Robeson,  Paul  M.  Rady  and  Glen  C.  Warren, Jr.    Each  of  the  members  (cid:82)(cid:73)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:71)(cid:76)(cid:86)(cid:70)(cid:79)(cid:68)(cid:76)(cid:80)(cid:86)(cid:3)
beneficial ownership of any of our securities held by our general partner. 

(3)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(4) 

Includes 55,109,589 common shares held by  the Warburg  Pincus Entities (as defined in footnote 1).  Messrs. Kagan  and Levy 
disclaim beneficial ownership of all common shares of AMGP attributable to the Warburg Pincus Entities except to the extent of 
their pecuniary interest therein.  

(5)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 
(6)  Mr.  Keenan  is  a  member  and  manager  of  the  direct  or  indirect  general  partner  of  each  of  Yorktown  Energy  Partners  V,  L.P., 
Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P. and Yorktown Energy Partners VIII, L.P., which own 
1,875,802  common  shares,  1,970,846  common  shares,  4,596,064  common  shares  and  7,091,699  common  shares,  respectively.  
Mr. Keenan does not have sole or shared voting or investment power within the meaning of Rule 13d-3 under the Exchange Act 
with respect to the common shares held by such investment funds and disclaims beneficial ownership of such securities except to 
the extent of his pecuniary interest therein. 

(7)  Has a mailing address of 599 Lexington Avenue, 47th Floor, New York, New York 10022. 
(8) 

(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3) (cid:20)(cid:28)(cid:15)(cid:20)(cid:27)(cid:19)(cid:15)(cid:27)(cid:21)(cid:20)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:75)(cid:72)(cid:79)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:3) (cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:180)(cid:12)(cid:17)(cid:3) (cid:3) (cid:48)(cid:85)(cid:17)(cid:3) (cid:53)(cid:68)(cid:71)(cid:92)(cid:3) (cid:82)(cid:90)(cid:81)(cid:86)(cid:3) (cid:68)(cid:3) (cid:20)(cid:22)(cid:17)(cid:20)(cid:27)(cid:26)(cid:23)(cid:8)(cid:3)
limited  liability  company  interest  in  Mockingbird,  and  two  trusts  under  his  control  own  the  remaining  86.8126%.    Mr.  Rady 
disclaims beneficial ownership of all common shares held by Mockingbird except to the extent of his pecuniary interest therein. 
(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:22)(cid:15)(cid:27)(cid:28)(cid:20)(cid:15)(cid:20)(cid:19)(cid:19)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)ing member 
and 50% owner of Canton.  Mr. Warren disclaims beneficial ownership of all common shares held by Canton except to the extent 
of his pecuniary interest therein. 

(10)  Excludes 55,109,589 common shares held by the Warburg Pincus Entities (as defined in  footnote 1), over which Messrs. Kagan 

(9) 

and Levy may be deemed to have indirect beneficial ownership. 

The following table sets forth the number of common units representing limited partner interests in Antero Midstream owned 
by each of the Named Executive Officers and directors of our general partner and all directors and executive officers of our general 
partner as a group as of February 13, 2019: 

Name of Beneficial Owner 
Peter R. Kagan(1) 
W. Howard Keenan, Jr.(2) 
Brooks J. Klimley(3) 
James R. Levy(1) 
Rose M. Robeson 
Peter A. Dea 
Paul M. Rady 
Glen C. Warren, Jr. 
Kevin J. Kilstrom 
Alvyn A. Schopp 
Michael N. Kennedy 
All directors and executive officers as a group (11 persons) 

Common Units 
Beneficially 
Owned 

Percentage of 
Common Units 
Beneficially 
Owned 

15,666 
15,666 
9,655 
(cid:178)  
(cid:178)  
(cid:178)  
194,152 
134,996 
32,856 
38,856 
20,256  
462,103 

*  
*  
*  
(cid:178) 
(cid:178) 
(cid:178) 
*  
*  
*  
*  
*  
*  

*     Less than 1%. 
(1)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(2)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 
(3)  Has a mailing address of 599 Lexington Avenue, 47th Floor, New York, New York 10022. 

64 

 
 
 
 
 
 
 
 
 
     
     
 
 
 
The  following  table  sets  forth  the  number  of  shares  of  common  stock  of  Antero  Resources  owned  by  each  of  the  Named 
Executive Officers and directors of our general partner and all directors and executive officers of our general partner as a  group as of 
February 13, 2019: 

Name of Beneficial Owner 
Peter R. Kagan(1)(2)(3)(4) 
W. Howard Keenan, Jr.(1)(5)(6) 
Brooks J. Klimley(7) 
James R. Levy(1)(2)(3) 
Rose M. Robeson 
Peter A. Dea(8) 
Paul M. Rady(9)(10) 
Glen C. Warren, Jr.(11)(12)(13) 
Kevin J. Kilstrom(14) 
Alvyn A. Schopp(15) 
Michael N. Kennedy(16) 
All directors and executive officers as a group (11 

persons)(17) 

Shares 
Beneficially 
Owned 

Percentage of 
Shares 
Beneficially 
Owned 

33,976,002  
199,707  
(cid:178)  
33,719,644 
(cid:178)  
27,500  
14,925,387 
 10,873,341 
135,539 
1,126,159 
239,848  

28,005,005  

11. 0% 
*  
(cid:178)  
10.9 % 
(cid:178)  
*   
4.8 % 
3.5 % 
*   
*   
*   

9.1 % 

*  Less than 1%. 
(1) 

Includes options to purchase 1,477 shares of common stock that expire ten years from the date of grant, or October 10, 2023, and 
options to purchase 1,526 shares of common stock that expire ten years from the date of grant, or October 16, 2024. 

(2)  Has a mailing address of c/o Warburg Pincus LLC, 450 Lexington Avenue, New York, New York 10017. 
(3) 

Includes 33,609,061 shares of common stock held by the Warburg Pincus Entities (as defined below).  Messrs. Kagan and Levy 
are  Partners  of  Warburg  Pincus (cid:9)(cid:3) (cid:38)(cid:82)(cid:17)(cid:15)(cid:3) (cid:68)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:60)(cid:82)(cid:85)(cid:78)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:48)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3) (cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3)
Warburg  Pincus  LLC,  a  New  York  limited  liability  company  (cid:11)(cid:179)(cid:58)(cid:51)(cid:3) (cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)
Private Equity VIII, (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:86)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)
Pincus Netherlands Private Equity VIII C.V.  I, a company formed unde(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:79)(cid:68)(cid:90)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:49)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:79)(cid:68)(cid:81)(cid:71)(cid:86)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:38)(cid:57)(cid:3)(cid:44)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:51)-
WPVIII Investors, (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)-(cid:58)(cid:51)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:82)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:57)(cid:44)(cid:44)(cid:44)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)
Pincus Private Equity X, (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:180)(cid:12)(cid:15)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)rg Pincus X Partners, L.P., a Delaware limited 
(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:41)(cid:88)(cid:81)(cid:71)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:51)(cid:85)(cid:76)(cid:89)(cid:68)(cid:87)(cid:72)(cid:3)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:59)(cid:3)(cid:50)(cid:9)(cid:42)(cid:15) L.P., a 
(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)(cid:3) (cid:59)(cid:3) (cid:50)(cid:9)(cid:42)(cid:180)(cid:12)(cid:17)(cid:3) (cid:3) (cid:58)(cid:51)-WPVIII  Investors  GP L.P.,  a  Delaware  lim(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)-WPVIII 
(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)-WPVIII Investors.  Warburg Pincus X, (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)
the  general  partner  of  each  of  the  WP  X  Funds  and  WP  X  O&G.  Warburg  Pincus  X  GP L.P.,  a  Delaware  limited  partnership 
(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:59)(cid:3)(cid:42)(cid:51)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
general  partner  of  WP-WPVIII  GP  and  WP  X  GP LP.    Warburg  Pincus  Partners, (cid:47)(cid:17)(cid:51)(cid:17)(cid:15)(cid:3) (cid:68)(cid:3) (cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3) (cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:11)(cid:179)(cid:58)(cid:51)(cid:3)
Partn(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:11)(cid:76)(cid:12) the managing member of WPP GP, and (ii) the general partner of WP VIII and WP VIII CV I. Warburg Pincus 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:15)(cid:3)(cid:68)(cid:3)(cid:39)(cid:72)(cid:79)(cid:68)(cid:90)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:11)(cid:179)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:58)(cid:51)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:58)(cid:51)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
managing  member  of  WP  Partners  GP.    WP  LLC  is  the  manager  of  each  of  the  WP  VIII  Funds,  the  WP  X  Funds  and  WP X 
O&G.  Each of the WP VIII Funds, the WP X Funds, WP X O&G, WP-WPVIII GP, WP X GP, WP X GP LP, WPP GP, WP 
Partners, WP Partners GP, WP and WP LLC are collectiv(cid:72)(cid:79)(cid:92)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:75)(cid:72)(cid:85)(cid:72)(cid:76)(cid:81)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3)(cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3)(cid:40)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:17)(cid:180)(cid:3)(cid:3)(cid:48)(cid:72)(cid:86)(cid:86)(cid:85)(cid:86)(cid:17) Kagan 
and Levy disclaim beneficial ownership of all shares of common stock attributable to the Warburg Pincus Entities except to the 
extent of their pecuniary interest therein. 
Includes 7,50(cid:19)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:41)(cid:68)(cid:80)(cid:76)(cid:79)(cid:92)(cid:3)(cid:55)(cid:85)(cid:88)(cid:86)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:55)(cid:85)(cid:88)(cid:86)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:48)(cid:85)(cid:17)(cid:3)(cid:46)(cid:68)(cid:74)(cid:68)(cid:81)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)
be  deemed  to  have  shared  voting  and  dispositive  power.    Mr.  Kagan  disclaims  beneficial  ownership  of  all  shares  held  by  the 
Kagan Trust except to the extent of his pecuniary interest therein. 

(4) 

(5)  Has a mailing address of 410 Park Avenue, 19th Floor, New York, New York 10022. 
(6)  Mr.  Keenan  is  a  member  and  manager  of  the  direct  or  indirect  general  partner  of  each  of  Yorktown  Energy  Partners  V,  L.P., 
Yorktown Energy Partners VI, L.P., Yorktown Energy Partners VII, L.P. and Yorktown Energy Partners VIII, L.P., which own 
235,380 shares of common stock, 215,319 shares of common stock, 3,104,317 shares of common stock and 10,425,078 shares of 

65 

 
 
 
 
 
 
  
 
 
 
 
 
 
     
     
 
 
 
 
common stock, respectively.  Mr. Keenan does not have sole or shared voting or investment power within the meaning of Rule 
13d-3 under the Exchange Act with respect to the shares of common stock held by such investment funds and disclaims beneficial 
ownership of such securities except to the extent of his pecuniary interest therein. 

(9) 

(7)  Has a mailing address of 599 Lexington Avenue, 47th Floor, New York, New York 10022.  
(8)  (cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3) (cid:75)(cid:72)(cid:79)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:24)(cid:86)(cid:87)(cid:68)(cid:85)(cid:3) (cid:40)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:24)(cid:86)(cid:87)(cid:68)(cid:85)(cid:3) (cid:40)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:180)(cid:12)(cid:15)(cid:3) (cid:82)(cid:89)(cid:72)(cid:85)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:48)(cid:85)(cid:17)(cid:3) (cid:39)(cid:72)(cid:68)(cid:3) (cid:75)(cid:68)(cid:86)(cid:3) (cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) power.  
Mr. Dea disclaims beneficial ownership of all shares held by 5star Energy except to the extent of his pecuniary interest therein. 
(cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:21)(cid:15)(cid:27)(cid:21)(cid:20)(cid:15)(cid:22)(cid:28)(cid:23)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:54)(cid:68)(cid:79)(cid:76)(cid:86)(cid:69)(cid:88)(cid:85)(cid:92)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:54)(cid:68)(cid:79)(cid:76)(cid:86)(cid:69)(cid:88)(cid:85)(cid:92)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:15)(cid:23)(cid:25)(cid:20)(cid:15)(cid:26)(cid:20)(cid:21)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86) of 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:48)(cid:82)(cid:70)(cid:78)(cid:76)(cid:81)(cid:74)(cid:69)(cid:76)(cid:85)(cid:71)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17) Rady owns a 95% limited liability company interest 
in  Salisbury  and  his  spouse  owns  the  remaining  5%.    Mr. Rady  owns  a  13.1874%  limited  liability  company  interest  in 
Mockingbird,  and  two  trusts  under  his  control  own  the  remaining  86.8126%.    Mr. Rady  disclaims  beneficial  ownership  of  all 
shares held by Salisbury and Mockingbird except to the extent of his pecuniary interest therein. 

(10)  Includes 136,786 shares of common stock that remain subject to vesting and options to purchase 75,000 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(11)  Mr. Warren indirectly owns 7 shares of common stock purchased by a family member, and these shares are included because of 
his  relation  to  the  purchaser.    Mr. Warren  disclaims  beneficial  ownership  of  all  shares  reported  except  to  the  extent  of  his 
pecuniary interest therein. 

(12)  (cid:44)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:22)(cid:15)(cid:27)(cid:23)(cid:26)(cid:15)(cid:27)(cid:22)(cid:28)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:38)(cid:68)(cid:81)(cid:87)(cid:82)(cid:81)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:26)(cid:22)5,000 shares of common 
(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:55)(cid:76)(cid:87)(cid:88)(cid:86)(cid:3)(cid:41)(cid:82)(cid:88)(cid:81)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:11)(cid:179)(cid:55)(cid:76)(cid:87)(cid:88)(cid:86)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:48)(cid:85)(cid:17) Warren is the managing member and 50% owner of Canton and the President 
of Titus.  Mr. Warren disclaims beneficial ownership of all shares held by Canton and Titus except to the extent of his pecuniary 
interest therein. 

(13)  Includes 91,191 shares of common stock that remain subject to vesting and options to purchase 50,000 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(14)  Includes 34,049 shares of common stock that remain subject to vesting and options to purchase 18,750 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(15)  Includes 34,049 shares of common stock that remain subject to vesting and options to purchase 18,750 shares of common stock 

that expire ten years from the date of grant, or April 15, 2025. 

(16)  Includes 34,048 shares of common stock that remain subject to vesting, options to purchase 60,000 shares of common stock that 
expire ten years from the date of grant, or October 10, 2023, and options to purchase 18,750 shares of common stock that expire 
ten years from the date of grant, or April 15, 2025. 

(17)  Excludes  33,609,061  shares  of  common  stock  held  by  the  Warburg  Pincus  Entities  (as  defined  in  footnote  5),  over  which 

Messrs. Kagan and Levy may be deemed to have indirect beneficial ownership. 

Securities Authorized for Issuance Under Equity Compensation Plan 

(cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3) (cid:85)(cid:72)(cid:68)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3) (cid:179)(cid:44)(cid:87)(cid:72)(cid:80) 11.    Executive  Compensation (cid:177)  Compensation  Discussion  and  Analysis (cid:177)  Equity 

(cid:38)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:44)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:180) 

Item 13.  Certain Relationships and Related Transactions and Director Independence 

Our Related Party Transactions 

Agreements Related to the Transactions 

Simplification Agreement 

On October 9, 2018, we, Antero Midstream and certain of our affiliates entered into the Simplification Agreement pursuant 
to  which,  among  other  things,  (1)  we  will  be  converted  from  a  limited  partnership  to  a  corporation  under  the  laws  of  the  State  of 
Delaware, to be named Antero Midstream Corporation; (2) an indirect, wholly owned subsidiary of New AM will be merged with and 
into Antero Midstream, with Antero Midstream surviving the merger as an indirect, wholly owned subsidiary of New AM; and (3) all 
the issued and outstanding Series B Units  (cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:20)(cid:26)(cid:17)(cid:22)(cid:24)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)
Common Stock.  As a result of the Transactions, Antero Midstream will be a wholly owned subsidiary of New AM and our former 
shareholders, unitholders of Antero Midstream a(cid:81)(cid:71)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86)(cid:3)(cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:17) 

If the Transactions are completed, (1) each AM Public Unitholder, will be entitled to receive, at its election, one of (i) the 
Public Mixed Consideration; (ii) the Public Stock Consideration; or (iii) the Public Cash Consideration; and (2) in exchange for each 

66 

(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)), the AR 
Mixed Consideration. 

The aggregate cash consideration to be paid to Antero Resources and the AM Public Unitholders will be fixed at an amount 
equal to the aggregate amount of cash that would have been paid and issued if all AM Public Unitholders received $3.415 in cash per 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:7)(cid:22)(cid:17)(cid:19)(cid:19)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:24)(cid:28)(cid:27)(cid:3)
million.  If the Available Cash exceeds the cash consideration elected to be received by the AM Public Unitholders, Antero Resources 
may elect to increase the total amount of cash consideration to be received as a part of the AR Mixed Consideration up to an amount 
equal to the excess and the amount of shares it will receive will be reduced accordingly based on the AMGP VWAP.  In addition, the 
consideration  to  be  received  by  each  AM  Public  Unitholder  may  be  prorated  in  the  event  that more  cash  or  equity  is  elected  to  be 
received than what would otherwise have been paid if all AM Public Unitholders had received the Public Mixed Consideration and 
Antero Resources received the AR Mixed Consideration. 

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other than cash received in lieu of fractional shares, if any, in the Merger.  The amount and character of gain or loss recognized by 
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to  such  unitholder  for  the  taxable  year  that  includes  the  Merger),  and  the  amount  of  any  suspended  passive  losses  that  may  be 
available to such unitholder to offset a portion of the gain recognized by such unitholder in connection with the Merger.     

Special  meetings of  AMGP  shareholders and  Antero Midstream  unitholders  will be held on March 8, 2019 to vote on the 
Simplification  Agreement,  the  Merger  and  the  other  Transactions  contemplated  thereby,  as  applicable,  and  all  AMGP  shareholders 
and Antero Midstream unitholders of record as of the close of business on January 11, 2019, which is the record date for the special 
meetings, will be entitled to vote the AMGP common shares and Antero Midstream common units, respectively, owned by them on 
the  record  date.   AMGP  and  Antero  Midstream  expect  the  Transactions  to  close  shortly  after  the  special  meeting  date,  subject  to 
certain closing conditions under the documentation for the Transactions.  We and Antero Midstream expect to fund the cash portion of 
the  mer(cid:74)(cid:72)(cid:85)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:69)(cid:82)(cid:85)(cid:85)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3) (cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) (cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3) (cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3) (cid:90)(cid:68)(cid:86)(cid:3)
amended on October 31, 2018 to, among other things, increase lender commitments from $1.5 billion to $2.0 billion.  

Voting Agreements 

AMGP Voting Agreement 

On October 9, 2018, concurrently with the execution of the Simplification Agreement, Antero Midstream and the common 
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(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:12) 
all of our common shares beneficially owned by them in favor of the AMGP shareholder proposals relating to the Transactions, and 
any other matters necessary for consummation of the Merger and the other transactions contemplated in the Simplification Agreement, 
including  the  Series B  Exchange.    In  addition,  the  AMGP  Voting  Agreement  Shareholders  agreed  to  vote  against  the  approval  or 
adoption of any action, agreement, transaction or proposal that is intended to or would reasonably be expected to (1) result in a breach 
of any obligation of ours contained in the Simplification Agreement or of such shareholder contained in the AMGP Voting Agreement 
or (2) impede, interfere with, delay, postpone, discourage, frustrate the purposes of or adversely affect any of the Transactions or any 
action contemplated by the Simplification Agreement.  If, without the prior consent of an AMGP Voting Agreement Shareholder, any 
provision of the Simplification Agreement described below is amended or waived, the obligations of the  AMGP Voting Agreement 
Shareholders under the AMGP Voting Agreement will terminate with respect to such shareholder.  In such event, such AMGP Voting 
Agreement Shareholder will be deemed to vote against all proposals at the AMGP Special Meeting (as defined in the AMGP Voting 
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Termination Date (as defined in the Simplification Agreement), (ii) adversely impact the merger consideration to be received by the 
(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:85)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:11)(cid:179)(cid:49)(cid:72)(cid:90) (cid:36)(cid:48)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:180)(cid:12)(cid:3)
held by the AMGP Voting Agreement Shareholders upon consummation of the Transactions, or (iii) otherwise have a material adverse 
effect on the interests of the AMGP Voting Agreement Shareholders in the Transactions.  As of October 8, 2018, the AMGP Voting 
Agreement  Shareholders  collectively  owned  105,571,698  of  our  common  shares,  representing  approximately  57%  of  our  common 
shares outstanding. 

67 

The  AMGP  Voting  Agreement  includes  certain  covenants,  and  generally  prohibits  the  AMGP  Voting  Agreement 
Shareholders from transferring their common shares.  The AMGP Voting Agreement terminates upon the earliest to occur of (i) the 
closing  of  the  Transactions,  (ii) the  termination  of  the  Simplification  Agreement  in  accordance  with  its  terms,  (iii) the  written 
agreement of the parties to the AMGP Voting Agreement, and (iv) the Termination Date. 

AR Voting Agreement 

On October 9, 2018, concurrently with the execution of the Simplification Agreement, we entered into a voting agreement 
with Antero Resource(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:3)(cid:11)(cid:82)(cid:85)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:3)(cid:89)(cid:82)(cid:87)(cid:72)(cid:71)(cid:12)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3) (cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:76)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:73)(cid:68)(cid:89)(cid:82)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3) (cid:83)(cid:85)(cid:82)(cid:83)(cid:82)(cid:86)(cid:68)(cid:79)(cid:3) (cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72) 
Merger,  and  any  other  matters  necessary  for  consummation  of  the  Merger  and  the  other  transactions  contemplated  in  the 
Simplification  Agreement,  including  the  Series B  Exchange.    In  addition,  Antero  Resources  agreed  to  vote  against  the  approval  or 
adoption of any action, agreement, transaction or proposal that is intended to or would reasonably be expected to (1) result in a breach 
of any obligation of Antero Midstream contained in the Simplification Agreement or of Antero Resources contained in the AR Voting 
Agreement  or  (2) impede,  interfere  with,  delay,  postpone,  discourage,  frustrate  the  purposes  of  or  adversely  affect  any  of  the 
Transactions or any action contemplated by the Simplification Agreement.  If, without the prior consent of the special committee of 
the  Antero  Res(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:53)(cid:3) (cid:54)(cid:83)(cid:72)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:12)(cid:15)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:86)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:71)(cid:72)(cid:86)(cid:70)(cid:85)(cid:76)(cid:69)(cid:72)(cid:71)(cid:3)
(cid:69)(cid:72)(cid:79)(cid:82)(cid:90)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:90)(cid:68)(cid:76)(cid:89)(cid:72)(cid:71)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:81)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:69)(cid:79)(cid:76)(cid:74)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:53)(cid:3)(cid:57)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:72)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) the 
AR  Special  Committee  may  instruct  Antero  Midstream  that  Antero  Resources  and  AR  Sub  (as  defined  below)  are  deemed  to  vote 
against  all  proposals  at  the  AM  Special  Meeting  (as  defined  in  the  AR  Voting  Agreement),  which  instruction  will  override  any 
different votes, proxies or voting instructions by or on behalf of Antero Resources or AR Sub received by Antero Midstream or its 
designees.  This termination provision applies only to amendments or waivers that (i) extend the Termination Date (as defined in the 
Simplification Agreement), (ii) adversely impact the merger consideration to be received by Antero Resources or the number or value 
of the shares of New AM Common Stock held by Antero Resources upon consummation of the Transactions, or (iii) otherwise have a 
material adverse effect on the interests of Antero Resources in the Transactions.  As of February 13, 2019, Antero Resources owned 
(cid:28)(cid:27)(cid:15)(cid:27)(cid:26)(cid:19)(cid:15)(cid:22)(cid:22)(cid:24)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:24)(cid:21)(cid:17)(cid:27)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:17) 

The AR Voting Agreement includes certain covenants, including a covenant by Antero Resources to enter into a registration 
(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:3) (cid:70)(cid:82)(cid:89)(cid:72)(cid:81)(cid:68)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:73)(cid:72)(cid:85)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:68)(cid:3) (cid:90)(cid:75)(cid:82)(cid:79)(cid:79)(cid:92)(cid:3) (cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3) (cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82) 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72) effective time of the  Merger, following  which both  Antero Resources and  AR  Sub  will remain 
subject to the terms of the AR Voting Agreement.  The AR Voting Agreement otherwise generally prohibits Antero Resources from 
(cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:73)(cid:72)(cid:85)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81) units.  The AR Voting Agreement terminates upon the earliest to occur of (i) the closing of 
the  Transactions,  (ii) the  termination  of  the  Simplification  Agreement  in  accordance  with  its  terms,  (iii) the  Termination  Date,  and 
(iv) the written agreement of the parties to the AR Voting Agreement. 

(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87) 

On October 9, 2018, concurrently with the execution of the Simplification Agreement,  AMGP, AR Sub, certain affiliates of 
Warburg Pincus LLC and Yorktown Partners LLC (collectively, the (cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:15)(cid:3)(cid:42)(cid:79)(cid:72)(cid:81)(cid:3)(cid:38)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15)(cid:3)(cid:45)(cid:85)(cid:17)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3) (cid:85)(cid:72)(cid:86)(cid:83)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3) (cid:11)(cid:70)(cid:82)(cid:79)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:79)(cid:92)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3) (cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:87)(cid:82)(cid:3) (cid:68)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:10)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:11)the 
(cid:179)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) closing of the Transactions and which will govern certain rights 
and obligations of the parties following the consummation of the Transactions. 

Under the Stockholders' Agreement, and subject to additional limitations in the event of a Fundamental Change (as defined in 
(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:12)(cid:15)(cid:3)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:90)(cid:82)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:86)(cid:75)(cid:68)(cid:79)(cid:79)(cid:3)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:48)(cid:85)(cid:17) Rady and Mr. Warren, for 
(cid:81)(cid:82)(cid:80)(cid:76)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:49)(cid:72)(cid:90)(cid:3)(cid:36)(cid:48)(cid:3)(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:180)(cid:12)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:82)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:15)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)h its affiliates, AR 
Sub owns an amount of shares equal to at least 8% of the qualifying New AM Common Stock and one director so long as it owns an 
amount  of  shares  equal  to  at  least  5%  of  the  qualifying  New  AM  Common  Stock.  To  the  extent  that  either  Mr. Rady  and/or 
Mr. Warren  are  not  designated  for  election  to  the  New  AM  Board  by  AR  Sub  pursuant  to  the  Stockholders'  Agreement,  the 
Management Stockholders  will be entitled to collectively designate two directors (or one director for so long as either Mr. Rady or 
Mr. Warren is designated by AR Sub) for election for so long as the Management Stockholders and their affiliates (other than Antero 
Resources and its subsidiaries) collectively own an amount of shares equal to at least 8% of the qualifying New AM Common Stock 
and one director for election for so long as they collectively own an amount of shares equal to at least 5% of the qualifying New AM 
Common Stock.  The Sponsor Holders will be entitled to collectively designate two directors for election to the New AM Board for so 
long  as  the  Sponsor  Holders  and  their  affiliates  (other  than  Antero  Resources  and  its  subsidiaries)  collectively  own  an  amount  of 

68 

shares equal to at least 8% of the qualifying New AM Common Stock and one director for election for so long  as they collectively 
own an amount of shares equal to at least 5% of the qualifying New AM Common Stock.  Notwithstanding the foregoing, upon the 
occurrence  of  a  Fundamental  Change,  AR  Sub,  the  Management  Stockholders  and  the  Sponsor  Holders  will  each  be  entitled  to 
designate one director so long as they own an amount of shares equal to at least 5% of the qualifying New AM Common Stock, except 
to the extent that AR Sub designates either Mr. Rady or Mr. Warren, in which case the Management Stockholders will not be entitled 
to designate a director. 

Each of the parties to the Stockholders' Agreement has agreed to vote all of their shares of New AM Common Stock in favor 
(cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:69)(cid:92)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)nt  and,  at  such  party's  election  (i) in 
favor of any other nominees nominated by the Nominating and Governance Committee of the New AM Board or (ii) in proportion to 
the votes cast by the public stockholders of New AM in favor of such nominees.  In calculating the 8% and 5% ownership thresholds 
for purposes of the Stockholders' Agreement, qualifying New AM Common Stock is determined by dividing the New AM Common 
Stock  ownership  for  each  stockholder  or  group  of  stockholders  as  of  the  applicable  measurement  date  by  (i) the  total  number  of 
outstanding shares of New AM Common Stock at the closing of the Transactions or (ii) the total number of outstanding shares on the 
(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:71)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:72)(cid:89)(cid:72)(cid:85)(cid:3) (cid:76)(cid:86)(cid:3) (cid:79)(cid:72)(cid:86)(cid:86)(cid:17)(cid:3) (cid:3) (cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:87)(cid:72)(cid:85)(cid:80)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:36)(cid:74)reement  no  more  than  45%  of  the 
shares  of  New  AM  Common  Stock  outstanding  as  of  closing  of  the  Merger  will  be  subject  to  the  obligations  of  the  Stockholders' 
Agreement. 

Under  the  Stockholders'  Agreement,  a  majority  of  the  New  AM  Board  shall  at  all  times  consist  of  directors  who  are  both 
(i) independent under the listing rules of the NYSE and the Exchange Act, and (ii) unaffiliated with the parties to the Stockhold(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)
Agreement.  Such independent and unaffiliated directors will be nominated for election to the New AM Board by the Nominating and 
Governance Committee of the New AM Board, which will itself consist solely of independent and unaffiliated directors. In addition, 
(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:86)(cid:82)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:53)(cid:3)(cid:54)(cid:88)(cid:69)(cid:3)has the right to designate at least one director, 
(i) if  Mr. Rady  is  an  executive  officer  of  Antero  Resources,  he  shall  serve  as  Chief  Executive  Officer  at  New  AM  and  (ii) if 
Mr. Warren is an executive officer of Antero Resources, he shall serve as President at New AM, and both Mr. Rady and Mr. Warren 
shall be subject to removal from such officer positions at New AM only for cause.  For so long as Mr. Rady is a member of the New 
AM Board and is an executive officer of Antero Resources and/or New AM, the parties have agreed that he shall serve as Chairman of 
(cid:87)(cid:75)(cid:72)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:3) (cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:15)(cid:3) (cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3) (cid:75)(cid:76)(cid:86)(cid:3) (cid:85)(cid:72)(cid:80)(cid:82)(cid:89)(cid:68)(cid:79)(cid:3) (cid:68)(cid:86)(cid:3) (cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3) (cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:50)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:17)(cid:3) (cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3)
terminate  as  to  each  stockholder  upon  the  time  at  which  such  stockholder  no  longer  has  the  right  to  designate  an  individual  for 
nomination to the New AM Board pursuant to the Stockholders' Agreement. 

Limited Liability Company Agreement of Our General Partner 

(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:79)(cid:76)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:72)(cid:86)ignation of members of the board of directors 
of our general partner by our Sponsors, including Mr. Rady, our Chairman,  Chief Executive Officer and a  member  of the board of 
directors of our general partner, and Mr. Warren, our President and Secretary and a member of the board of directors of our general 
partner.  

Pursuant  to  the  terms  of  the  limited  liability  company  agreement  of  our  general  partner,  during  the  ten-year  period 
commencing with the closing of our IPO, if either Mr. Rady or Mr. Warren serves as an executive officer or in an active role in the 
management  of  any  company  (other  than  AMGP,  Antero  Resources,  Antero  Midstream  or  their  respective  subsidiaries  and  joint 
ventures) that is primarily engaged in an operating oil and gas exploration, production, gathering, compression or water handling and 
treatment business, then such individual (or his designee) will be removed as a member of the board of directors of our general partner 
and such individual will no longer be entitled to designate a member of the board of directors of our general partner. 

Limited Liability Company Agreement of IDR LLC 

On December 31, 2016, our Predecessor entered into the limited liability company agreement of IDR LLC, pursuant to which 
IDR LLC  created  two  classes  of  membership  interests,  including  capital  interests  referred  to  as  Series A  Units  and  profits  interests 
referred to as Series B Units.  We own all of the Series A Units and the Series B Holders currently own all of the Series B Units. 

The Series B Units are subject to restrictions on transfer and vest in three annual installments in one-third increments upon 
(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:68)(cid:81)(cid:81)(cid:76)(cid:89)(cid:72)(cid:85)(cid:86)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:72)(cid:86)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:72)(cid:81)(cid:70)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:82)(cid:88)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)ugh the 
vesting commencement date.  Series B Units will also vest in full upon a change in control of us or IDR LLC or upon a termination by 

69 

(cid:88)(cid:86)(cid:3)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:70)(cid:68)(cid:88)(cid:86)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:88)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:72)(cid:68)(cid:87)(cid:75)(cid:3) or disability.  
In the event any Series B Units fail to vest, they will be forfeited to IDR LLC and may not be re-issued. 

On May 9, 2018, in connection with the entry into the Credit Facility, we, in our capacity as the managing member of IDR 
LLC, and a  majority of the Series B Holders, entered into Amendment No. 1 to the Limited Liability  Company  Agreement of IDR 
LLC, to, among other things, permit us to pledge the Series A Units as collateral under the Credit Facility. 

In connection with the entry into the Simplification Agreement, we, in our capacity as the managing member of IDR LLC, a 
majority of the Series B Holders, entered into the Amendment No. 2 to the Limited Liability Company Agreement of IDR LLC (the 
(cid:179)(cid:54)(cid:72)(cid:70)(cid:82)(cid:81)(cid:71)(cid:3) (cid:44)(cid:39)(cid:53)(cid:3) (cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:36)(cid:3) (cid:36)(cid:80)(cid:72)(cid:81)(cid:71)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:3) (cid:87)(cid:82)(cid:3) (cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) B  Exchange.    Pursuant  to  the  Second  IDR  Holdings  LLCA 
Amendment, upon the consummation of the Merger, New AM, in its capacity as managing member of IDR Holdings, will cause each 
outstanding  Series B  Unit  to  be  exchanged  for  176.0041  shares  of  New  AM  Common  Stock  through  a  wholly  owned  subsidiary.  
Pursuant to the Second IDR LLC Agreement Amendment, the shares of New AM Common Stock issued in exchange for outstanding 
Series B  Units  will  be  subject  to  the  same  vesting  conditions  to  which  the  Series B  Units  are  currently  subject,  with  two-thirds 
currently vested and one-third vesting at December 31, 2019.  Consistent with the existing terms of the Series B Units, declared and 
unpaid distributions on unvested Series B Units will not be paid until the applicable vesting date, and declared dividends with respect 
to  unvested  shares  of  New  AM  Common  Stock  will  be  deposited  into  an  escrow  account  and  not  paid  until  the  applicable  vesting 
date.   With  respect  to  the  shares  of  New  AM  Common  Stock  that  will  be  scheduled  to  vest  on  December 31,  2019, the  holders  of 
Series B Units have agreed to forego any dividends from New AM that are paid with respect to such shares during the twelve months 
ended December 31, 2019. 

Prior to the entry into the Second IDR LLC Agreement Amendment, holders of Series B Units were entitled to receive up to 
(cid:25)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:79)(cid:79)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:26)(cid:17)(cid:24)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:82)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:44)(cid:39)(cid:53)(cid:182)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:75)(cid:68)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:69)(cid:76)lity to 
redeem vested Series B Units for our common shares  with a value e(cid:84)(cid:88)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:3)(cid:85)(cid:68)(cid:87)(cid:68)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)(cid:83)(cid:3)(cid:87)(cid:82)(cid:3)(cid:25)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)
capitalization (calculated by reference to the 20-day volume weighted average price of the AMGP Common Shares preceding the date 
of redemption request) in excess of $2.0 billion.  Pursuant to the Second IDR LLC Agreement Amendment, the Series B Holders have 
agreed to the early termination of their Series B Units in exchange for the issuance of 176.0041 shares of New AM Common Stock for 
each  Series B  Unit.   The  176.0041  shares  of  New  AM  Common  Stock  represent  approximately  4.4%  of  the  pro  forma  market 
capitalization of New AM in excess of $2 billion.  The number of shares to be issued in exchange for outstanding Series B Units will 
be reduced proportionately if a holder forfeits his or her Series B Units prior to closing of the Transactions, with no re-allocation to the 
remaining holders. 

Cash Distributions 

Our  sole  cash-generating  asset  consists  of  our  interest  in  IDR LLC,  which  owns  all  of  the  IDRs  of  Antero  Midstream.  
Through our ownership  interest in IDR LLC, our shareholders  will be entitled to a portion of the cash distributions paid by  Antero 
Midstream on its IDRs.  We expect to receive at least 94% of the cash distributions paid by Antero Midstream on the IDRs. 

We  will  pay  to  our  shareholders,  on  a  quarterly  basis,  distributions  equal  to  the  cash  we  receive  from  IDR  LLC,  less 
distributions  paid  to  or  reserved  for  the  Series B  Holders,  taxes  and  other  expenses,  including  reserves  relating  to  our  general  and 
administrative  expenses  (including  expenses  we  will  incur  as  the  result  of  being  a  public  company)  and  reserves  that  our  general 
partner (on our behalf as the managing member of IDR LLC) believes prudent to pay or provide for payment of existing and projected 
obligations and to provide  a reasonable reserve for working capital and contingencies. If the distribution on the IDRs exceeds such 
amount, the Series B Holders will receive an aggregate distribution of up to 6% of the excess amount distributed on the IDRs with 
respect to such fiscal quarter, and we will receive all remaining distributions.  The Series B Units are subject to restrictions on transfer 
and vest ratably over a three-year period upon each anniversary of the vesting commencement date.  The Series B Holders are entitled 
to distributions only with respect to Series B Units that are vested.  Any distributions that would otherwise be made with respect to a 
Series B Unit that is unvested will instead be made to the holders of Series A Units. 

As  Series B  Units  vest,  each  holder  of  such  vested  Series B  Units  will  be  entitled  to  receive  a  make-whole  distribution 
corresponding to the aggregate amount of distributions such holder would have received on such Series B Units had they been vested 
on the vesting commencement date prior to IDR LLC making any distributions in respect of the other IDR LLC units.  The payment of 
these make-whole distributions to the holders of the Series B Units will be paid out of the quarterly distribution for the fiscal quarter 
following  the  vesting  date  and  will  lower  the  amount  of  cash  paid  on  the  Series A  Units  until  the  full  amount  of  the  make-whole 
distribution  has  been  paid.    In  anticipation  of  such  make-whole  distributions,  each  quarter  we  expect  to  retain  from  the  cash 

70 

distributions we receive on the  Series A Units an amount equal to the portion of the future make-whole distributions attributable to 
that quarter.  Accordingly, when IDR LLC pays a make-whole distribution to a holder of newly-vested Series B Units that reduces the 
amount otherwise payable on our Series A Units, we will supplement the lower distributions we receive with the cash retained in prior 
periods so that our distributions remain constant. 

In  addition,  the  holders  of  interests  in  IDR LLC,  including  us,  will  be  subject  to  tax  on  their  proportionate  share  of  any 

taxable income of IDR LLC and will be allocated their proportionate share of any taxable loss of IDR LLC. 

For the year ended December 31, 2018, we received distributions of approximately $123.2 million pursuant to the terms of 

the IDR LLC agreement. 

Redemption Right 

Each of the Series B Holders will have the right, upon delivery of written notice to IDR LLC, to require IDR LLC to redeem 
(cid:68)(cid:79)(cid:79)(cid:3) (cid:82)(cid:85)(cid:3) (cid:68)(cid:3) (cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3) (cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) B  Units  for  a  number  of  our  newly-issued  common  shares  equal  to  the  quotient 
determined  by  dividing  (a) the  product  of  (i) the  Per  Vested  B  Unit  Entitlement  and  (ii) the  number  of  vested  Series B  Units  being 
redeemed by (b) the volume weighted average price of a common share for the 20 trading days ending on and including the trading 
(cid:71)(cid:68)(cid:92)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:81)(cid:82)(cid:87)(cid:76)(cid:70)(cid:72)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:90)(cid:72)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:51)(cid:85)(cid:76)(cid:70)(cid:72)(cid:180)(cid:30)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:71)(cid:15)(cid:3)(cid:75)(cid:82)(cid:90)(cid:72)(cid:89)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:15)(cid:3) (cid:76)(cid:81)(cid:3)(cid:81)(cid:82)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)he 
aggregate  number of common shares issued by us pursuant to such redemptions exceed 6% of the  aggregate  number of issued and 
outstanding common shares. The Per Vested B Unit Entitlement will be calculated in accordance with the IDR LLC Agreement from 
time to time and will equal, as of a date of determination, the quotient obtained by dividing (a) the product of (i) the fair market value 
of  IDR  LLC  (which  for  this  purpose  is  based  on  our  equity  value  and  which  shall  be  calculated  on  any  date  of  determination  by 
multiplying  the  AMGP  VWAP  Price  and  the  number  of  then-outstanding  common  shares)  as  of  such  date  minus  $2.0 billion  and 
(ii) the product of (A) 6%, (B) the percentage of authorized Series B Units that are outstanding and (C) the percentage of outstanding 
Series B Units that have vested by (b) the total number of vested Series B Units outstanding at such time. 

In  addition,  upon  the  earliest  to  occur  of  (a) December 31,  2026,  (b) a  change  of  control  of  us  or  of  IDR LLC  or  (c) a 
liquidation of IDR LLC, our general partner (on our behalf in our capacity as the managing member of IDR LLC) may redeem each 
outstanding  Series B  Unit  in  exchange  for  our  common  shares  in  accordance  with  the  ratio  described  above,  subject  to  certain 
limitations. 

The  above  mechanisms  are  subject  to  customary  conversion  rate  adjustments  for  equity  splits,  equity  dividends  and 

reclassifications. 

Services Agreement 

We, our general partner, IDR LLC and Antero Resources have entered into a services agreement, which govern, among other 

things, certain administrative services that Antero Resources will provide to us. 

Administrative Services and Fees 

We and our general partner have no employees.  All of our officers and other personnel necessary for our business to function 
(to the extent not outsourced) are employed by Antero Resources, and we pay Antero Resources an annual fee for  corporate, general 
and administrative services.  This fee is initially $0.5 million per year and is subject to adjustment on an annual basis based on the 
CPI.  The fee is also subject to adjustment to reflect any increase in the cost of providing services  due to changes in applicable law, 
rules or regulations and any increase in the scope and extent of the services provided.  The fee will not be decreased below the initial 
fee unless the type or extent of services provided materially decreases.  

In addition to the fee and expenses described above, we reimburse Antero Resources for costs and expenses to the extent that 
such costs and expenses are directly allocable to the provision of services to us, our general partner, or our subsidiaries (other than 
Antero Midstream and its subsidiaries), including recurring costs associated  with being a separate publicly traded entity, and taxes, 
other than payroll taxes, or other direct operating expenses, paid by Antero Resources for our benefit.  We also reimburse our general 
partner for any additional expenses incurred on our behalf or to maintain our legal existence and good standing.  There is no limit on 
the amount of fees and expenses we may be required to pay to affiliates of our general partner on our behalf pursuant to the services 
agreement. 

71 

For  the  year  ended  December  31, 2018,  we  reimbursed  Antero  Resources  for  approximately  $1.3  million  of  its  direct  and 

allocated indirect expenses under the services agreement. 

License of Names and Marks 

Pursuant to the servic(cid:72)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:74)(cid:85)(cid:68)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:88)(cid:86)(cid:3)(cid:68)(cid:3)(cid:79)(cid:76)(cid:70)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:88)(cid:86)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:68)(cid:80)(cid:72)(cid:86)(cid:3)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)

any associated or related marks. 

Registration Rights Agreement 

We  have  entered  into  a  registration  rights  agreement  with  the  Sponsors  and  certain  of  our  affiliates.    Pursuant  to  the 
registration  rights  agreement,  we  have  agreed  to  register  the  resale  of  all  common  shares  held  by  the  Sponsors  and  certain  of  our 
affiliates or issuable to them upon the redemption of Series (cid:37)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:54)(cid:72)(cid:70)(cid:88)(cid:85)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:70)(cid:76)(cid:85)(cid:70)(cid:88)(cid:80)(cid:86)(cid:87)(cid:68)(cid:81)(cid:70)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)
Additionally,  if  necessary,  upon  the  vesting  of  additional  Series B  Units  held  by  a  Series B  Holder,  we  have  agreed  to  amend  the 
registration rights agreement to include any common shares issuable upon the redemption of  vested Series B Units for our common 
shares  as  AMGP  Registrable  Securities,  so  long  as  the  holder  of  such  units  agrees  to  be  bound  by  the  terms  and  conditions  of  the 
registration rights agreement. 

Demand Registration Rights 

At any time after the six month anniversary of the IPO, each Sponsor that, together with its affiliates, owns at least 3% of our 
outstanding common shares has the right to require us by written notice to register the sale of a number of their AMGP Registrable 
Securities in an underwritten offering.  We are required to provide notice of the request within 10 days following the receipt of such 
demand request to all additional holders of AMGP Registrable Securities, if any, who may, in certain circumstances, participate in the 
registration.  We are not obligated to effect any demand registration in which the anticipated aggregate offering price included in such 
offering is less than $50,000,000.  Once we are eligible to effect a registration on Form S-3, any such demand registration may be for a 
shelf registration statement. 

Piggyback Registration Rights 

If, at any time, we propose to register an offering of our securities (subject to certain exceptions) for our own account, then 
we  must  give  each  holder  of  AMGP  Registrable  Securities  the  opportunity  to  allow  such  holder  to  include  a  specified  number  of 
AMGP Registrable Securities in that registration statement. 

Redemptive Offerings 

We may be required pursuant to the registration rights agreement to undertake a future public or private offering and use the 
proceeds  (net  of  underwriting  or  placement  agency  discounts,  fees  and  commissions,  as  applicable)  to  redeem  an  equal  number  of 
common units from the holders of AMGP Registrable Securities. 

Conditions and Limitations; Expenses 

The  registration  rights  are  subject  to  certain  conditions  and  limitations,  including  the  right  of  the  underwriters  to  limit  the 
number of AMGP Registrable Securities to be included in a registration and our right to delay or withdraw a registration statement 
under certain circumstances.  We will generally pay all registration expenses in connection with our obligations under the registration 
rights  agreement,  regardless  of  whether  a  registration  statement  is  filed  or  becomes  effective.    The  obligations  to  register  AMGP 
Registrable  Securities  under  the  registration  rights  agreement  will  terminate  when  no  AMGP  Registrable  Securities  remain 
outstanding.  AMGP Registrable Securities shall cease to be covered by the registration rights agreement when they have (i) been sold 
pursuant to an effective registration statement under the Securities Act, (ii) been sold in a transaction exempt from registration under 
the Securities Act (including transactions pursuant to Rule 144), (iii) ceased to be outstanding, (iv) been sold in a private transaction in 
(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3) (cid:81)(cid:82)(cid:87)(cid:3)(cid:68)(cid:86)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:73)(cid:72)(cid:85)(cid:72)(cid:72)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:89)(cid:12) become eligible  for 
resale pursuant to Rule 144(b) (or any similar rule then in effect under the Securities Act). 

72 

Employment 

Each of (i) Timothy Rady, the son of Paul M. Rady, the Chairman and Chief Executive Officer of our general partner, and (ii) 

Cole Kilstrom, the son of Kevin J. Kilstrom, Senior Vice President(cid:178)Production of our general partner, is a non-executive employee 
of Antero Resources and provides services to us pursuant to our agreements with Antero Resources.  Total compensation paid to 
Timothy Rady in 2018 consisted of base salary, bonus and other benefits totaling $307,948 and award grants under the AR LTIP and 
Midstream LTIP having an aggregate grant date fair value of $413,946 and subject to certain time-based and performance-based 
vesting conditions.  Total compensation paid to Cole Kilstrom in 2018 consisted of base salary, bonus and other benefits totaling 
$100,110 and award grants under the AR LTIP having an aggregate grant date fair value of $20,000 and subject to certain time-based 
vesting conditions. 

Procedures for Review, Approval and Ratification of Transactions with Related Persons 

The board has determined that the audit committee will periodically review all related person transactions that the rules of the 

SEC require be disclosed in this Annual Report on Form 10-K, and make a determination regarding the initial authorization or 
ratification of any such transaction. 

The audit committee is charged with reviewing the material facts of all related person transactions and either approving or 
disapproving of our participation in such transactions under our Related Persons Transaction Policy, as adopted by the board ("RPT 
Policy") on May 3, 2017.  Our RPT Policy also pre-approves certain related person transactions, including: 

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

(cid:120)(cid:3)

any employment of an executive officer if his or her compensation is required to be reported in our Annual Reports on Form 
10-K under Item 402;  

director compensation which is required to be reported in our Annual Reports on Form 10-K under Item 402;  

any transaction with an entity at which the related person's only relationship is as an employee (other than an executive 
officer), director or beneficial owner of less than 10% of the entity's equity, if the aggregate amount involved does not exceed 
$1 million;  

any charitable contribution, grant or endowment by us to a charitable organization, foundation or university at which a related 
person's only relationship is as an employee (other than an executive officer) or a director is pre-approved or ratified (as 
applicable) if the aggregate amount involved does not exceed $200,000;  

any transaction where the related person's interest arises solely from the ownership of our common units and all holders of 
our common units received the same benefit on a pro rata basis (e.g., distributions) is pre-approved or ratified (as applicable);  

any transaction involving a related person where the rates or charges involved are determined by competitive bids is pre-
approved or ratified (as applicable); 

any transaction with a related person involving the rendering of services as a common or contract carrier, or public utility, at 
rates or charges fixed in conformity with law or governmental authority is pre-approved or ratified (as applicable); and  

any transaction with a related person involving services as a bank depositary of funds, transfer agent, registrar, trustee under a 
trust indenture or similar services is pre-approved or ratified (as applicable). 

The audit committee chairman may approve any related person transaction in which the aggregate amount involved is 

expected to be less than $120,000.  A summary of such approved transactions and each new related person transaction deemed pre-
approved under the RPT Policy is provided to the audit committee for its review.  The audit committee has the authority to modify the 
RPT Policy regarding pre-approved transactions or to impose conditions upon our ability to participate in any related person 
transaction. 

73 

 
 
         
There were no related person transactions during 2018 which were required to be reported in "Related Persons Transactions" 

where the procedures described above did not require review, approval or ratification or where these procedures were not followed.   

Conflicts of Interest 

The Board has adopted a written code of business conduct and ethics, under which a director would be expected to bring to 
the attention of our chief executive officer or the board any conflict or potential conflict of interest that may arise between the director 
or any affiliate of the director, on the one hand, and us or  our general partner on the other.  The resolution of any such conflict or 
potential conflict should, at the discretion of the board in light of the circumstances, be  determined by a majority of the disinterested 
directors. 

If a conflict or potential conflict of interest arises between our general partner or its affiliates, on the one hand, and us or our 
unitholders, on the other hand, the resolution of any such conflict or potential conflict should be addressed by the board of directors of 
our  general  partner  in  accordance  with  the  provisions  of  our  partnership  agreement.    At  the  discretion  of  the  board  in  light  of  the 
circumstances, the resolution may be determined by the board in its entirety or by the conflicts committee. 

(cid:51)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:68)(cid:89)(cid:82)(cid:76)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:17) 

Conflicts  of  interest  exist  and  may  arise  in  the  future  as  a  result  of  the  relationships  between  our  general  partner  and  its 
directors, officers, affiliates (including Antero Resources) and owners, on the one hand, and us and our limited partners, on the other 
hand.    Conflicts  may  arise  as  a  result  of  the  duties  of  our  general  partner  and  its  directors  and  officers  to  act  for  the  benefit  of  its 
owners, which may conflict with our interests and the interests of our public unitholders.  We are managed and operated by the board 
of directors and officers of our general partner, AMGP GP, which is owned by our Sponsors.  All of our officers and a majority of our 
directors are officers or directors of Antero Resources.  Although our general partner has a contractual duty to manage us in a manner 
that it believes is not adverse to our interests, the directors and officers of our general partner have a fiduciary duty  to manage our 
(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:81)(cid:81)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:69)(cid:72)(cid:81)(cid:72)(cid:73)(cid:76)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:82)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)ctors and 
officers of Antero Resources have a fiduciary duty to manage Antero Resources in a manner that is beneficial to Antero Resources and 
its shareholders.  Our partnership agreement specifically defines the remedies available to unitholders for actions taken that, without 
these  defined  liability  standards,  might  constitute  breaches  of  fiduciary  duty  under  applicable  Delaware  law.    The  Delaware  Act 
provides  that  Delaware  limited  partnerships  may,  in  their  partnership  agreements,  expand,  restrict  or  eliminate  the  fiduciary  duties 
otherwise owed by the general partner to the limited partners and the partnership. 

Whenever a conflict arises between our general partner or its owners and affiliates (including Antero Resources), on the one 
hand, and us or our limited partners, on the other hand, the resolution or course of action in respect of such conflict of interest shall be 
permitted and deemed approved by us and all our limited partners and shall not constitute a breach of our partnership agreement, of 
any agreement contemplated thereby or of any duty, if the resolution or course of action in respect of such conflict of interest is: 

(cid:120) 

(cid:120) 

approved by the conflicts committee of our general partner, although our general partner is not obligated to seek such 
approval; or 

approved by the holders of a majority of the outstanding common units, excluding any such units owned by our general 
partner or any of its affiliates. 

Our general partner may, but is not required to, seek the approval of such resolutions or courses of action from the conflicts 
committee  of  its  board  of  directors  or  from  the  holders  of  a  majority  of  the  outstanding  common  units  as  described  above.    If  our 
general  partner  does  not  seek  approval  from  the  conflicts  committee  or  from  holders  of  common  units  as  described  above  and  the 
board of directors of our general partner approves the resolution or course of action taken with respect to the conflict of interest, then it 
will be presumed that, in making its decision, the board of directors of our general partner acted in good faith, and in any  proceeding 
brought by or on behalf of us or any of our unitholders, the person bringing or prosecuting such proceeding will have the burden of 
overcoming such presumption and proving that such decision was not in good faith. Unless the resolution of a conflict is specifically 
provided  for  in  our  partnership  agreement,  the  board  of  directors  of  our  general  partner  or  the  conflicts  committee  of  the  board  of 
directors  of  our  general  partner  may  consider  any  factors  they  determine  in  good  faith  to  consider  when  resolving  a  conflict.    An 
independent third party is not required to evaluate the resolution.  Under our partnership agreement, a determination, other  action or 
failure to act by our general  partner, the board of directors of our general partner or any committee thereof (including the conflicts 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:12)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:69)(cid:72)(cid:3) (cid:71)(cid:72)(cid:72)(cid:80)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:69)(cid:72)(cid:3) (cid:179)(cid:76)(cid:81)(cid:3) (cid:74)(cid:82)(cid:82)(cid:71)(cid:3) (cid:73)(cid:68)(cid:76)(cid:87)(cid:75)(cid:180)(cid:3) (cid:88)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3) (cid:82)(cid:85)(cid:3) any 

74 

committee thereof (including the conflicts committee) believed such determination, other action or failure to act was adverse to the 
(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:17)(cid:3) (cid:3) (cid:51)(cid:79)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3) (cid:85)(cid:72)(cid:68)(cid:71)(cid:3) (cid:179)(cid:44)(cid:87)(cid:72)(cid:80)(cid:3) (cid:20)(cid:19)(cid:178)Committees  of  the  Board  of  Directors(cid:178)(cid:38)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3) (cid:38)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:180)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:68)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)(cid:79)(cid:76)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17) 

Director Independence 

Rather than adopting categorical standards, the Board assesses director independence on a case-by-case basis, in each case 
consistent with applicable legal requirements and the listing standards of the NYSE.  After reviewing all relationships each  director 
has  with  us,  including  the  nature  and  extent  of  any  business  relationships  between  us  and  each  director,  as  well  as  any  significant 
charitable contributions  we  make to organizations  where our directors serve as board members or executive officers,  the Board has 
affirmatively  determined  that  the  following  directors  have  no  material  relationships  with  us  and  are  independent  as  defined  by  the 
current  listing  standards  of  the  NYSE:  Messrs. Kagan,  Keenan,  Klimley,  Levy,  Dea  and  Ms. Robeson.    Neither  Mr. Rady,  the 
Chairman and Chief Executive Officer of our general partner, nor Mr. Warren, the President and Secretary of our general partner, is 
considered by the Board to be an independent director because of his employment with Antero Resources. 

75 

Item 14.  Principal Accountant Fees and Services 

The  table  below  sets  forth  the  aggregate  fees  and  expenses  billed  by  KPMG LLP,  our  independent  registered  public 

accounting firm, for the Partnership and its Predecessor for the following periods: 

(in thousands) 
Audit and quarterly reviews 
Audit related fees 

Total 

For the Years Ended December 31, 

2017 

2018 

$ 

$ 

 207  
 489  
 696  

 283  
 48  
 331  

The charter of the Audit Committee and its pre-approval policy require that the Audit Committee review and pre-approve our 
(cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3) (cid:85)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3) (cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:73)(cid:76)(cid:85)(cid:80)(cid:182)(cid:86)(cid:3) (cid:73)(cid:72)(cid:72)(cid:86)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:15)(cid:3) (cid:68)(cid:88)(cid:71)(cid:76)(cid:87)-related,  tax  and  other  services.    The  Chairman  of  the  Audit 
Committee has the authority to grant pre-approvals, provided such approvals are within the pre-approval policy and are presented to 
the  Audit  Committee  at  a  subsequent  meeting.    For  the year  ended  December 31,  2018,  the  audit  committee  of  our  predecessor 
approved 100% of the services described above under the captions "Audit Fees." 

76 

 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
Item 15.  Exhibits and Financial Statement Schedules 

(a)(1) and (a)(2) Financial Statements and Financial Statement Schedules 

PART IV 

The consolidated financial statements are listed on the Index to Financial Statements to this report beginning on page F-1. 

(a)  (3) Exhibits. 

Exhibit 
Number 

2.1 

3.1 

3.2 

3.3 

3.4 

3.5 

3.6 

3.7 

3.8 

3.9 

3.10 

3.11 

Description of Exhibit 

Simplification Agreement, dated as of October 9, 2018, by and among AMGP GP LLC, Antero Midstream GP LP, 
Antero  IDR  Holdings  LLC,  Arkrose  Midstream  Preferred  Co  LLC,  Arkrose  Midstream  NewCo  Inc.,  Arkrose 
Midstream  Merger  Sub  LLC,  Antero  Midstream  Partners  GP  LLC  and  Antero  Midstream  Partners  LP 
(incorporated by reference to Exhibit 2.1 to Current Report on Form 8-K (Commission File No. 001-38075) filed 
on October 10, 2018). 

Certificate  of  Conversion  of  Antero  Resources  Midstream  LLC,  dated  November  5,  2014  (incorporated  by 
reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed on November 7, 
2014). 

Certificate of Limited Partnership of Antero Midstream GP LP, dated as of May 4, 2017 (incorporated by reference 
to Exhibit 3.2 to the Current Report on Form 8-K (Commission File No. 001- 38075) filed on May 9, 2017). 

Agreement of Limited Partnership of Antero Midstream GP LP, dated as of May 9, 2017, by and between AMGP 
GP  LLC,  as  the  General  Partner,  and  Antero  Resources  Investment  LLC,  as  the  Organizational  Limited  Partner  
(incorporated by reference to Exhibit 3.3 to the  Current Report on Form 8-K (Commission File No. 001- 38075) 
filed on May 9, 2017).  

Amendment No. 1 to the Limited Partnership Agreement of Antero Midstream GP LP, dated as of October 9, 2018 
(incorporated by  reference  to  Exhibit  3.1  to  the  Current  Report  on  Form  8-K  (Commission  File  No. 001-38075) 
filed on October 10, 2018). 

Certificate of Formation of AMGP GP LLC, dated as of April 18, 2017 (incorporated by reference to Exhibit 3.5 to 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3) (cid:3) (cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80)(cid:3) (cid:54)-1  (Commission  File 
No. 333- 216975) filed on April 24, 2017). 
Agreement of Limited Partnership, dated as of November 10, 2014, by and between Antero Resources Midstream 
Management  LLC,  as  the  General  Partner,  and  Antero  Resources  Corporation,  as  the  Organizational  Limited 
Partner  (incorporated  by  reference  to  Exhibit  3.1  to  Current  Report  on  Form  8-K  (Commission  File  No. 001-
36719) filed on November 17, 2014). 
Amendment No. 1 to Agreement of Limited Partnership of Antero Midstream Partners LP, dated as of February 23, 
2016 (incorporated by reference to Exhibit 3.4 to Annual Report on Form 10-K (Commission File No. 001-36719) 
filed on February 24, 2016). 
Amendment  No.  2  to  Agreement  of  Limited  Partnership  of  Antero  Midstream  Partners  LP,  dated  as  of 
December 20,  2017  (incorporated  by  reference  to  Exhibit  3.1  to  Current  Report  on  Form  8-K  (Commission  File 
No. 001-36719) filed on December 26, 2017).  
Limited Liability Company Agreement of Antero IDR Holdings LLC dated December 31, 2016 (incorporated by 
reference to Exhibit (cid:22)(cid:17)(cid:28)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:182)(cid:86)  Registration Statement on Form S-1 
(Commission File No. 333- 216975) filed on April 7, 2017). 
Amendment No. 1 to the Limited Liability Company Agreement of Antero IDR Holdings LLC, dated as of May 9, 
2018 (incorporated by reference to Exhibit 3.1 to Current Report on Form 8-K (Commission File No 001-38075) 
filed on May 14, 2018). 

Amendment  No.  2  to  the  Limited  Liability  Company  Agreement  of  Antero  IDR  Holdings  LLC,  dated  as  of 
October 9, 2018 (incorporated by reference to Exhibit 3.2 to the Current Report on Form 8-K (Commission  File 
No. 001- 38075) filed on October 10, 2018). 

77 

 
     
 
 
 
 
 
 
 
 
 
 
 
 
4.1 

4.2 

4.3 

4.4 

10.1 

10.2 

10.3 

10.4 

10.5 

10.6 

10.7 

10.8 

10.9 

10.10 

Registration  Rights  Agreement,  dated  as  of  May  9,  2017,  by  and  among  Antero  Midstream  GP  LP,  Warburg 
Pincus Private Equity X O&G, L.P., Warburg Pincus X Partners, L.P., Warburg Pincus Private Equity VIII, LP, 
Warburg Pincus Netherlands Private Equity VIII C.V.I, WP-WPVIII Investors, L.P., Yorktown Energy Partners V, 
L.P., Yorktown Energy Partners VI,  L.P., Yorktown Energy Partners VII,  L.P., Yorktown Energy Partners VIII, 
L.P.,  Paul  M.  Rady  and  Glen  C.  Warren,  Jr.  (incorporated  by  reference  to  Exhibit 4.1  to  the  Current  Report  on 
Form 8-K (Commission File No. 001- 38075) filed on May 9, 2017).  

Indenture,  dated  as  of  September 13,  2016,  by  and  among  Antero  Midstream  Partners  LP,  Antero  Midstream 
Finance  Corporation,  the  subsidiary  guarantors  party  thereto  and  Wells  Fargo  Bank,  National  Association,  as 
trustee (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K (Commission File No. 001-36719) 
filed on September 13, 2016).  

Form of 5.375% Senior Note due 2024 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K 
(Commission File No. 001-36719) filed on September 13, 2016). 

Registration  Rights  Agreement,  dated  as  of  September 13,  2016,  by  and  among  Antero  Midstream  Partners  LP, 
Antero Midstream Finance Corporation, the subsidiary guarantors named therein and J.P. Morgan Securities LLC 
as representative of the initial purchasers named therein (incorporated by reference to Exhibit 4.3 to Current Report 
on Form 8-K (Commission File No. 001-36719) filed on September 13, 2016). 
Amended and Restated Credit Agreement, by and among Antero Midstream Partners LP, the lenders party thereto, 
and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to 
Antero  Midstream  Partners LP's  Quarterly  Report  on  Form 10-Q  (Commission  File  No. 001-36719)  filed  on 
November 1, 2017).  
Services Agreement, dated as of May 9, 2017, by and among Antero Midstream GP LP, AMGP GP LLC, Antero 
IDR  Holdings  LLC  and  Antero  Resources  Corporation  (incorporated by  reference  to  Exhibit 10.1  to  the  Current 
Report on Form 8-K (Commission File No. 001-38705) filed on May 9, 2017).  
Form  of  Antero  Midstream GP LP  Long-Term  Incentive  Plan  (incorporated  by  reference  to  Exhibit 10.10  to 
(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)  Registration  Statement  on  Form S-1  (Commission  File 
No. 333- 216975) filed on April 7, 2017).  
Form of Indemnification Agreement (incorporated by reference to Exhibit 10.13 to Antero Resources Midstream 
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)   Registration  Statement  on  Form S-1  (Commission  File  No. 333- 216975)  filed  on  April 24, 
2017). 
Common Unit Purchase Agreement, dated as of September 17, 2015, by and among Antero Midstream Partners LP 
and  the  Purchasers  named  therein  (incorporated  by  reference  to  Exhibit 10.1  to  the  Current  Report  on Form 8-K 
(Commission File No. 001-36719) filed on September 18, 2015). 

Senior Note Purchase Agreement, dated as of September 8, 2016, by and among Antero Midstream Partners LP, 
Antero  Midstream  Finance  Corporation  and  the  Purchasers  named  therein  (incorporated  by  reference  to 
Exhibit 10.1 to Current Report on Form 8-K (Commission File No. 001-36719) filed on September 13, 2016). 

Secondment Agreement, dated as of September 23, 2015, by and between Antero Midstream Partners LP, Antero 
Resources Midstream Management LLC, Antero Midstream LLC, Antero Water LLC, Antero Treatment LLC and 
Antero  Resources  Corporation 
the  Current  Report 
on Form 8-K (Commission File No. 001-36719) filed on September 24, 2015). 

(incorporated  by 

to  Exhibit 10.2 

reference 

to 

Amended  and  Restated  Services  Agreement,  dated  as  of  September 23,  2015,  by  and  among  Antero  Midstream 
Partners LP, Antero Resources Midstream Management LLC and Antero Resources Corporation (incorporated by 
reference  to  Exhibit 10.3  to  the  Current  Report  on Form 8-K (Commission  File  No. 001-36719)  filed  on 
September 24, 2015). 

Amended  and  Restated  Water  Services  Agreement,  dated  as  of  February 12,  2019,  by  and  between  Antero 
Resources Corporation and Antero Water LLC (incorporated by reference to Exhibit 10.4 to the Annual Report on 
Form 10-K (Commission File No. 001-36719) filed on February 13, 2019).  

Amended  and  Restated  Contribution  Agreement,  dated  as  of  November 10,  2014,  by  and  between  Antero 
Resources  Corporation  and  Antero  Midstream  Partners  LP  (incorporated  by  reference  to  Exhibit 10.1  to  Current 
Report on Form 8-K (Commission File No. 001-36719) filed on November 17, 2014). 

78 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.11 

10.12 

10.13 

10.14 

10.15 

10.16 

10.17 

10.18 

10.19 

10.20 

10.21 

10.22 

10.23 

10.24 

10.25 

First  Amended  and  Restated  Gathering  and  Compression  Agreement,  dated  as  of  February  13,  2018,  by  and 
between Antero Resources Corporation and Antero Midstream LLC (incorporated by reference to Exhibit 10.1 to 
Quarterly Report on Form 10-Q (Commission File No. 001-36719) filed on April 25, 2018.  

Second  Amended  and  Restated  Right  of  First  Offer  Agreement,  dated  as  of  February 13,  2018,  by  and  between 
Antero Resources Corporation and Antero Midstream LLC (incorporated by reference to Exhibit 10.2 to Quarterly 
Report on Form 10-Q (Commission File No. 001-36719) filed on April 25, 2018). 

License  Agreement,  dated  as of  November 10,  2014,  by  and  between  Antero  Resources  Corporation  and  Antero 
Midstream  Partners  LP  (incorporated  by  reference  to  Exhibit 10.4  to  Current  Report  on  Form 8-K  (Commission 
File No. 001-36719) filed on November 17, 2014). 

Registration Rights Agreement, dated as of November 10, 2014, by and among Antero Midstream Partners LP and 
Antero  Resources  Corporation  (incorporated  by  reference  to  Exhibit 10.5  to  Current  Report  on  Form 8-K 
(Commission File No. 001-36719) filed on November 17, 2014). 

Amended and Restated Credit Agreement, dated as of October 26, 2017, among Antero Midstream Partners LP and 
certain of its subsidiaries, certain lenders party thereto, Wells Fargo Bank, National Association, as administrative 
agent,  l/c  issuer  and  swingline  lender  and  the  other  parties  thereto  (incorporated  by  reference  to  Exhibit 10.1  to 
Quarterly Report on Form 10-Q (Commission File No. 001-36719) filed on November 17, 2017). 

First  Amendment  and  Joinder  Agreement  to  Amended  and  Restated  Credit  Agreement,  dated  as  of  October  31, 
2018 (incorporated by reference to Exhibit 10.1 to Current Report on Form 8-K (Commission File No. 001-36719) 
filed on November 2, 2018). 

Form of Antero Midstream Partners LP Long-Term Incentive Plan (incorporated by reference to Exhibit 10.11 to 
Amendment No. (cid:23)(cid:3)(cid:87)(cid:82)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:47)(cid:47)(cid:38)(cid:182)(cid:86)(cid:3) (cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) S-1, filed on July 11, 
2014, File No. 333-193798). 

Form of Amended and Restated Indemnification Agreement (incorporated by reference to Exhibit 10.1 to Current 
Report on Form 8-K (Commission File No. 001-38075) filed on April 17, 2018)).  

Form of  Phantom  Unit  Grant  Notice  and  Phantom  Unit  Agreement  under  the  Antero  Midstream  Partners  LP 
Long-Term Incentive Plan (incorporated by reference to Exhibit 4.4 to Antero Midstream Partner(cid:86)(cid:182)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
Statement on Form S-8 (Commission File No. 001- 36719) filed on November 12, 2014). 

Form of  Restricted  Unit  Grant  Notice  and  Restricted  Unit  Agreement  under  the  Antero  Midstream  Partners  LP 
Long-Term Incentive Plan (incorporated by reference to Exhibit 4.5 to Antero Midstream Part(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
Statement on Form S-8 (Commission File No. 001- 36719) filed on November 12, 2014). 

Form of  Bonus  Unit  Grant  Notice  and  Bonus  Unit  Agreement  (Form for  Non-Employee  Directors)  under  the 
Antero Midstream Partners LP Long-Term Incentive Plan (incorporated by reference to Exhibit 10.16 to Annual 
Report on Form 10-K (Commission File No. 001-36120) filed on February 24, 2016). 

Antero  Resources  Corporation  Long-Term  Incentive  Plan,  effective  as  of  October 1,  2013  (incorporated  by 
reference to Exhibit (cid:23)(cid:17)(cid:22)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:53)(cid:72)(cid:74)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) S-8 (Commission File No. 001- 36120) 
filed on October 11, 2013). 

Form of  Restricted  Stock  Unit  Grant  Notice  and  Restricted  Stock  Unit  Agreement  under  the  Antero  Resources 
Corporation  Long-Term  Incentive  Plan  (incorporated  by  reference  to  Exhibit 10.28  to  Annual  Report  on 
Form 10-K (Commission File No. 001-36120) filed on February 25, 2015). 

Form of Bonus Stock Grant  Notice and Bonus Stock  Agreement (Form for Non-Employee Directors) under the 
Antero Resources Corporation Long-Term Incentive Plan  (incorporated by reference to Exhibit 10.36 to Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K (Commission File No. 001-36120) filed on February 24, 2016). 

Form of  Performance  Share  Unit  Grant  Notice  and  Performance  Share  Unit  Agreement  (Form for  Special 
Retention Awards) under the Antero Resources Corporation Long-Term Incentive Plan (incorporated by reference 
to  Exhibit (cid:20)(cid:19)(cid:17)(cid:20)(cid:3) (cid:87)(cid:82)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3) (cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:41)(cid:82)(cid:85)(cid:80) 8-K  (Commission  File  No. 001-36120)  filed  on 
February 12, 2016). 

79 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10.26 

10.27 

10.28 

10.29 

10.30 

10.31 

21.1* 

23.1* 

31.1* 

31.2* 

32.1* 

32.2* 

99.1* 

101* 

Global  Grant  Amendment  to  Grant  Notices  and  Award  Agreements  Under  the  Antero  Midstream  Partners  LP 
Long-Term  Incentive  Plan,  effective  as  of  October 24,  2016  (incorporated  by  reference  to  Exhibit 10.1  to 
Quarterly Report on Form 10-Q (Commission File No. 001-36120) filed on October 26, 2016). 

Second  Amendment  and  Joinder  Agreement,  dated  as  of  October 4,  2016  (incorporated  by  reference  to 
Exhibit 10.3 to Quarterly Report on Form 10-Q (Commission File No. 001-36120) filed on October 26, 2016). 

Credit  Agreement between  Antero Midstream GP  LP and  Wells Fargo Bank, National  Association, dated as of 
May  9,  2018  (incorporated  by  reference  to  Exhibit  10.2  to  the  Antero  Midstream  GP  LP  Form  10-Q  for  the 
quarter ended June 30, 2018 (Commission File No. 001-38075) filed on August 1, 2018). 

Voting  Agreement,  dated  as  of  October  9,  2018,  by  and  among  Antero  Midstream  Partners  LP  and  the 
shareholders of Antero Midstream GP LP named on Schedule I thereto (incorporated by reference to Exhibit 10.1 
to the Current Report on Form 8-K (Commission File No. 001-38075) filed on October 10, 2018). 

Voting Agreement, dated as of October 9, 2018, by and between Antero Midstream GP LP and Antero Resources 
Corporation  (incorporated  by  reference  to  Exhibit  10.2  to  the  Current  Report  on  Form  8-K  (Commission  File 
No. 001-38075) filed on October 10, 2018). 

(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) (cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:68)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3) (cid:28)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3) (cid:69)(cid:92)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:42)(cid:51)(cid:3) (cid:47)(cid:51)(cid:15)(cid:3) (cid:36)(cid:85)(cid:78)(cid:85)(cid:82)(cid:86)(cid:72)(cid:3)
Subsidiary  Holdings  LLC,  Warburg  Pincus  Private  Equity  X  O&G,  L.P.,  Warburg  Pincus  X  Partners,  L.P., 
Warburg  Pincus  Private  Equity  VIII,  LP,  Warburg  Pincus  Netherlands  Private  Equity  VIII  C.V.I,  WP-WPVIII 
Investors,  L.P.,  Yorktown  Energy  Partners  V,  L.P.,  Yorktown  Energy  Partners  VI,  L.P.,  Yorktown  Energy 
Partners VII, L.P., Yorktown Energy Partners VIII, L.P., Paul M. Rady, Mockingbird Investment, LLC, Glen C. 
Warren,  Jr.  and  Canton  Investment  Holdings  LLC  (incorporated  by  reference  to  Exhibit  10.3  to  the  Current 
Report on Form 8-K (Commission File No. 001-38075) filed on October 10, 2018). 

Subsidiaries of Antero Midstream GP LP. 

Consent of KPMG, LLP. 

Certification  of  the  Chief  Executive  Officer  Pursuant  to  Section 302  of  the  Sarbanes  Oxley  Act  of  2002  (18 
U.S.C. Section 7241). 

Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 (18 U.S.C. 
Section 7241). 

Certification  of  the  Chief  Executive  Officer  Pursuant  to  Section 906  of  the  Sarbanes  Oxley  Act  of  2002  (18 
U.S.C. Section 1350). 

Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes Oxley Act of 2002 (18 U.S.C. 
Section 1350). 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80) 10-K for the quarter ended December 31, 2018 

The  following  financial  information  from  this  Form 10-K  of  Antero  Midstream  GP  LP  for  the year  ended 
December 31,  2018,  formatted  in  XBRL  (eXtensible  Business  Reporting  Language):  (i) Consolidated  Balance 
Sheets,  (ii) Consolidated  Statements  of  Operations  and  Comprehensive  Income  (Loss),  (iii) Consolidated 
Statements of Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to the Combined Consolidated 
Financial Statements, tagged as blocks of text. 

The exhibits marked with the asterisk symbol (*) are filed or furnished with this Annual Report on Form 10-K. 
(cid:130)     Portions of this exhibit have been omitted pursuant to a request for confidential treatment. 

80 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused 

this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

SIGNATURES 

ANTERO MIDSTREAM GP LP 

By:  AMGP GP LLC, its general partner 

By: 

/s/ Michael N. Kennedy 
Michael N. Kennedy 
Chief Financial Officer 

Date:   February 13, 2019 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on 

behalf of the registrant in the capacities and on the dates indicated. 

3 

Signature 

Title (Position with AMGP GP LLC) 

Date 

February 13, 2019 

February 13, 2019 

February 13, 2019 

/s/ PAUL M. RADY 
Paul M. Rady 

Chairman of the Board, 
Director and Chief Executive officer 
(principal executive officer) 

/s/ MICHAEL N. KENNEDY 
Michael N. Kennedy 

  Chief Financial Officer  

(principal financial officer) 

/s/ K. PHIL YOO 
K. Phil Yoo 

/s/ GLEN C. WARREN, JR. 
Glen C. Warren, Jr. 

Vice President, Accounting and Chief Accounting 
Officer 
(principal accounting officer) 

  President, Director, and Secretary 

February 13, 2019 

/s/ PETER R. KAGAN 
Peter R. Kagan 

  Director 

/s/ W. HOWARD KEENAN, JR. 
W. Howard Keenan, Jr. 

  Director 

/s/ BROOKS J. KLIMLEY 
Brooks J. Klimley 

  Director 

/s/ JAMES R. LEVY 
James R. Levy 

/s/ ROSE M. ROBESON 
Rose M. Robeson 

/s/ PETER A. DEA 
Peter A. Dea 

  Director 

  Director 

  Director 

81 

February 13, 2019 

February 13, 2019 

February 13, 2019 

February 13, 2019 

February 13, 2019 

February 13, 2019 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 

Audited Historical Consolidated Financial Statements as of December 31, 2017 and 2018 and for the Years Ended 
December 31, 2016, 2017 and 2018 
Report of Independent Registered Public Accounting Firm  
Consolidated Balance Sheets  
Consolidated Statements of Consolidated Operations and Comprehensive Income   
(cid:38)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)  
Consolidated Statements of Cash Flows  
Notes to Consolidated Financial Statements  

Page 

F-2 
F-4 
F-5 
F-6 
F-7 
F-8 

F-1 

 
 
 
 
 
 
Report of Independent Registered Public Accounting Firm 

To the Shareholders and Board of Directors 
Antero Midstream GP LP: 

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting  

We have audited the accompanying consolidated balance sheets of Antero Midstream GP LP and its subsidiaries (the Partnership) as 
of December (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:75)(cid:72)(cid:81)(cid:86)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:15)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:15)(cid:3)(cid:68)nd 
cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes (collectively, the 
(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:12)(cid:17)(cid:3)(cid:58)(cid:72)(cid:3)(cid:68)(cid:79)(cid:86)(cid:82)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:72)cember 31, 
2018, based on criteria established in Internal Control (cid:177) Integrated Framework (2013) issued by the Committee of Sponsoring 
Organizations of the Treadway Commission.   

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of 
the Partnership as of December 31, 2017 and 2018, and the results of its operations and its cash flows for each of the years in the 
three-year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles. Also in our opinion, 
the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018 based 
on criteria established in Internal Control (cid:177) Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of 
the Treadway Commission. 

Basis for Opinions  

(cid:55)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:15)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:80)(cid:68)(cid:76)(cid:81)(cid:87)(cid:68)(cid:76)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)(cid:72)(cid:73)(cid:73)(cid:72)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)ontrol 
over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:44)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:38)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:50)(cid:89)(cid:72)(cid:85)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:3)Item 9A. Controls and Procedures. 
Our (cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)
internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company 
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in 
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission 
and the PCAOB. 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits 
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to 
error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.  

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the 
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such 
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial 
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well 
as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting 
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and 
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included 
performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable 
basis for our opinions. 

Definition and Limitations of Internal Control Over Financial Reporting  

(cid:36)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:71)(cid:72)(cid:86)(cid:76)(cid:74)(cid:81)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:85)(cid:72)(cid:68)(cid:86)(cid:82)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:86)(cid:86)(cid:88)(cid:85)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72) reliability 
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted 
(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:83)(cid:85)(cid:76)(cid:81)(cid:70)(cid:76)(cid:83)(cid:79)(cid:72)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:85)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:82)(cid:86)(cid:72)(cid:3)(cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:71)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87) (1) pertain 
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of 
the Partnership; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial 
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Partnership are being 
made only in accordance with authorizations of management and directors of the Partnership; and (3) provide reasonable assurance 

F-2 

regarding preve(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:85)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:79)(cid:92)(cid:3)(cid:71)(cid:72)(cid:87)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:88)(cid:81)(cid:68)(cid:88)(cid:87)(cid:75)(cid:82)(cid:85)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:68)(cid:70)(cid:84)(cid:88)(cid:76)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:88)(cid:86)(cid:72)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:71)(cid:76)(cid:86)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:70)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:68)(cid:3)
material effect on the financial statements. 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections 
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in 
conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

/s/ KPMG LLP 

(cid:58)(cid:72)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:182)(cid:86)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:3)(cid:86)(cid:76)(cid:81)(cid:70)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:25)(cid:17) 

Denver, Colorado 
February 13, 2019 

F-3 

 
 
 
ANTERO MIDSTREAM GP LP 

Consolidated Balance Sheets 

December 31, 2017 and 2018 

(In thousands, except number of shares and units) 

Assets 

December 31,  

2017 

2018 

Current assets: 

Cash 
Prepaid expenses and other current assets 

Total current assets 

Investment in Antero Midstream Partners LP 
Deferred tax asset 
Total assets 

Current liabilities: 

Accounts payable(cid:177)affiliate 
Accounts payable and accrued liabilities 
Taxes payable 

Total current liabilities 

Partners' capital: 

Liabilities and Partners' Capital 

Common shareholders(cid:177)public (186,181,975 shares and 186,219,438 shares 
issued and outstanding at December 31, 2017 and 2018, respectively) 
IDR LLC Series B units (32,875 and 65,745 units vested at December 31, 

2017 and 2018, respectively) 
  Total partners' capital 

      Total liabilities and partners' capital 

$ 

$ 

$ 

 5,987 
 (cid:178)  
 5,987 
 23,772 
 (cid:178) 
 29,759 

 57 
 236 
 13,858 
 14,151 

 (19,866) 

 35,474  
 15,608  
 29,759 

 2,822  
 87  
 2,909  
 43,492  
 1,304  
 47,705  

 731 
 435 
 15,678 
 16,844 

 (41,969)  

 72,830  
 30,861  
 47,705  

See accompanying notes to consolidated financial statements. 

F-4 

 
 
 
 
 
 
 
 
 
 
 
 
     
     
  
 
     
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 69,720   
 69,720   
 6,201   
 34,933   
 41,134   
 28,586   
 (cid:178)   
 28,586   
 (26,261)  
 2,325   

 (784)  
 4,939   
 6,480   

2018 
 142,906   
 142,906   
 8,740   
 35,111   
 43,851   
 99,055   
 (136)  
 98,919   
 (32,311)  
 66,608   

 (5,236)  
 (cid:178)   
 61,372   

0.03   

0.33   

186,176   

 186,203   

ANTERO MIDSTREAM GP LP 

Consolidated Statements of Operations and Comprehensive Income 

Years Ended December 2016, 2017 and 2018 

(In thousands, except per share amounts) 

2016 

Year Ended December 31,  
2017 

Equity in earnings of Antero Midstream Partners LP 

$ 

Total income 

General and administrative expense 
Equity-based compensation 
Total operating expenses 

Operating income 
Interest expense, net 

Income before income taxes 

Provision for income taxes 

Net income and comprehensive income  

  $ 

Net income attributable to vested Series B units 
Pre-IPO net income attributed to parent 

Net income attributable to common shareholders 

Net income per common share(cid:177)basic and diluted 

Weighted average number of common shares outstanding(cid:177)basic and 
diluted 

 16,944   
 16,944   
 814   
 (cid:178)   
 814   
 16,130   
 (cid:178)   
 16,130   
 (6,419)  
 9,711   

$ 

$ 

$ 

See accompanying notes to consolidated financial statements. 

F-5 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
     
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
     
 
   
 
 
 
 
     
 
 
     
 
 
 
   
 
 
 
 
   
 
   
 
 
 
 
   
 
 
 
 
   
 
   
 
 
 
 
   
 
 
 
 
 
 
ANTERO MIDSTREAM GP LP 

(cid:38)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:38)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79) 

Years Ended December 31, 2016, 2017, and 2018 

(In thousands) 

Common Shares   
Representing  
Limited Partner   
Interests 

Balance at December 31, 2015 

Net income and comprehensive income 

Balance at December 31, 2016 

      $ 

Pre-IPO net loss and comprehensive loss 
Pre-IPO equity-based compensation 
Conversion of Antero Resources Midstream 
Management LLC to a limited partnership 
Post-IPO net income and comprehensive income 
Post-IPO equity-based compensation 
Distributions to Antero Resources Investment LLC   
Distributions to shareholders 
Vesting of Series B units 
Balance at December 31, 2017 

Net income and comprehensive income 
Equity-based compensation 
Distributions to shareholders 
Distributions to Series B unitholders 
Vesting of Series B units 
Balance at December 31, 2018 

$ 

 (cid:178)        
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  

 15,567   
 6,480  
 24,696   
 (15,908)  
 (16,011)  
 (34,690)  
 (19,866)  
 61,372   
 35,111   
 (84,166)  
 (cid:178)  
 (34,420)  
 (41,969)  

Antero  
Resources 
Midstream 
Management 
LLC Members'   
Equity 

 558         

 9,711  
 10,269   
 (4,939)  
 10,237   

 (15,567)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  

Series B 
Unitholders 

Partners'  
Capital 

 (cid:178)        
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  

 (cid:178)  
 784   
 (cid:178)  
 (cid:178)  
 (cid:178)  
 34,690   
 35,474   
 5,236  
 (cid:178)  
 (cid:178)  
 (2,300)  
 34,420   
 72,830   

 558   
 9,711  
 10,269   
 (4,939)  
 10,237   

 (cid:178)  
 7,264  
 24,696   
 (15,908)  
 (16,011)  
 (cid:178)  
 15,608   
 66,608   
 35,111   
 (84,166)  
 (2,300)  
 (cid:178)  
 30,861   

See accompanying notes to consolidated financial statements. 

F-6 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM GP LP 

Consolidated Statements of Cash Flows 

Years Ended December 31, 2016, 2017 and 2018 

(In thousands) 

Cash flows provided by operating activities: 

Net income 
Adjustments to reconcile net income to net cash provided by operating 

activities: 
Equity in earnings of Antero Midstream Partners LP 
Distributions received from Antero Midstream Partners LP 
Amortization of deferred financing costs 
Equity-based compensation 
Deferred income taxes 

Changes in current assets and liabilities: 

Prepaid expenses and other current assets 
Accounts receivable(cid:177)related party 
Accounts payable(cid:177)affiliate 
Accounts payable and accrued liabilities 
Taxes payable 

Net cash provided by operating activities 

Cash flows from investing activities 
Cash flows used in financing activities 

Distributions to Antero Resources Investment LLC 
Distributions to shareholders 
Distributions to Series B unitholders 
Payments of deferred financing costs 

Net cash used in financing activities 

Net increase (decrease) in cash 
Cash, beginning of period 
Cash, end of period 

Supplemental disclosure of cash flow information: 

Cash paid during the period for taxes 

2016 

Year Ended December 31,  
2017 

2018 

$ 

 9,711  

 2,325  

 66,608  

 (16,944)  
 10,370  
 (cid:178)  
 (cid:178)  
 (368)  

 (cid:178)  
 (217)  
 (cid:178)  
 426  
 6,559  
 9,537  
 (cid:178)  

 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 9,537  
 72  
 9,609  

 (69,720)  
 53,491  
 (cid:178)  
 34,933  
 (cid:178)  

 (cid:178)  
 (cid:178)  
 57  
 (190)  
 7,184  
 28,080  
 (cid:178)  

 (15,691)  
 (16,011)  
 (cid:178)  
 (cid:178)  
 (31,702)  
 (3,622)  
 9,609  
 5,987  

 (142,906)  
 123,186  
 148  
 35,111  
 (1,304)  

 (5)  
 (cid:178)  
 674  
 199  
 1,820  
 83,531  
 (cid:178)  

 (cid:178)  
 (84,166)  
 (2,300)  
 (230)  
 (86,696)  
 (3,165)  
 5,987  
 2,822  

 (228)  

 (19,077)  

 (31,795)  

$ 

$ 

See accompanying notes to consolidated financial statements. 

F-7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
   
  
   
  
   
  
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
   
 
   
 
  
 
 
 
 
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements 

Years Ended December 31, 2016, 2017, and 2018 

(1)  Business and Organization 

(a)  Overview 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:82)(cid:85)(cid:76)(cid:74)(cid:76)(cid:81)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:53)(cid:48)(cid:48)(cid:180)(cid:12)(cid:3)
(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:20)(cid:22)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:80)(cid:68)(cid:86)(cid:87)(cid:72)(cid:85)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3) partnership that is 
publicly  traded  on  the  New  York  Stock  Exchange  (NYSE:  AM).    On  May 4,  2017,  ARMM  converted  from  a  Delaware  limited 
liability company to a Delaware limited partnership and changed its name to Antero Midstream GP LP in connection with its initial 
(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:82)(cid:73)(cid:73)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:11)(cid:179)(cid:44)(cid:51)(cid:50)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:56)(cid:81)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:91)(cid:87)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:90)(cid:76)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:86)(cid:15)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:179)(cid:90)(cid:72)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:179)(cid:82)(cid:88)(cid:85)(cid:180)(cid:3)(cid:85)(cid:72)(cid:73)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:29)(cid:3)(cid:11)(cid:76)(cid:12) for the period prior to May 4, 
2017,  ARMM,  and  (ii) beginning  on  May 4,  2017,  AMGP.    AMGP  owns  100%  of  the  membership  interests  of  Antero  Midstream 
(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:81)(cid:82)(cid:81)-economic general partner interest in Antero Midstream, and AMGP owns all of 
the Series (cid:36)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3) (cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:36)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:180)(cid:12)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:82)(cid:90)(cid:81)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)ion 
(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:86)(cid:3) (cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:86)(cid:180)(cid:12)(cid:3) (cid:76)(cid:81)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:17)(cid:3) (cid:3) (cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:68)(cid:79)(cid:86)(cid:82)(cid:3) (cid:75)(cid:68)(cid:86)(cid:3) (cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:37)(cid:3) (cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:86)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3) (cid:11)(cid:179)(cid:54)(cid:72)(cid:85)(cid:76)(cid:72)(cid:86) (cid:37)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:86)(cid:180)(cid:12)(cid:3) (cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
holders  to  receive  up  to  6%  of  the  distributions  that  Antero  Midstream  makes  on  the  IDRs  in  excess  of  $7.5  million  per  quarter, 
subject  to  certain  vesting  conditions  (see  Note 5(cid:178)Long-Term  Incentive  Plans).    AMGP  is  taxed  as  a  corporation  for  U.S.  federal 
income tax purposes and AMGP refers to its outstanding limited partner interests as common shares. 

(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:82)(cid:81)(cid:79)(cid:92)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)ts from distributions made on the IDRs of Antero Midstream.  The Antero Midstream IDRs entitle 
holders  to  receive  cash  distributions  from  Antero  Midstream  when  distributions  exceed  certain  target  amounts  (see  Note 6(cid:178)
Distributions from Antero Midstream).  

A(cid:48)(cid:42)(cid:51)(cid:3)(cid:76)(cid:86)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:72)(cid:86)(cid:87)(cid:68)(cid:69)(cid:79)(cid:76)(cid:86)(cid:75)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:73)(cid:82)(cid:85)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:83)(cid:68)(cid:92)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:42)(cid:51)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:82)(cid:76)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)
Antero Resources In(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:44)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:86)(cid:82)(cid:79)(cid:72)(cid:3)(cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:53)(cid:48)(cid:48)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:79)(cid:76)(cid:84)(cid:88)(cid:76)(cid:71)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:81)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85) 31, 
(cid:21)(cid:19)(cid:20)(cid:26)(cid:17)(cid:3)(cid:3)(cid:41)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:72)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:44)(cid:51)(cid:50)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:79)(cid:79) 
as Series B Units in IDR (cid:47)(cid:47)(cid:38)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:3)(cid:68)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)
(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:182)(cid:86)(cid:3)(cid:11)(cid:179)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:180)(cid:12)(cid:3)(cid:11)(cid:49)(cid:60)(cid:54)(cid:40)(cid:29)(cid:3)(cid:36)(cid:53)(cid:12)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
with  Antero  Resources,  under  which  Antero  Resources  provides  general  and  administrative  services  to  AMGP  for  a  fee  of  $0.5 
million per year, subject to annual inflation adjustments.  AMGP also incurs recurring direct expenses for the costs associated with 
being a publicly traded entity. 

Antero Midstream was formed by Antero Resources to own, operate and develop midstream energy assets to service Antero 
(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:82)(cid:76)(cid:79)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:74)(cid:68)(cid:86)(cid:3)(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:37)(cid:82)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:48)(cid:68)(cid:85)(cid:70)(cid:72)(cid:79)(cid:79)(cid:88)(cid:86)(cid:3)(cid:54)(cid:75)(cid:68)le and 
Utica  (cid:54)(cid:75)(cid:68)(cid:79)(cid:72)(cid:3) (cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:58)(cid:72)(cid:86)(cid:87)(cid:3) (cid:57)(cid:76)(cid:85)(cid:74)(cid:76)(cid:81)(cid:76)(cid:68)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:50)(cid:75)(cid:76)(cid:82)(cid:17)(cid:3) (cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:3) (cid:82)(cid:73)(cid:3) (cid:74)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:83)(cid:76)(cid:83)(cid:72)(cid:79)(cid:76)(cid:81)(cid:72)(cid:86)(cid:15)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:82)(cid:85)(cid:3) (cid:86)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)
interests in processing and fractionation plants, and water handling and treatment assets, which provide midstream services to Antero 
Resources under long term, fixed fee contracts.  Antero Midstream also has a 15% equity interest in the gathering system of Stonewall 
(cid:42)(cid:68)(cid:86)(cid:3) (cid:42)(cid:68)(cid:87)(cid:75)(cid:72)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:179)(cid:54)(cid:87)(cid:82)(cid:81)(cid:72)(cid:90)(cid:68)(cid:79)(cid:79)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:68)(cid:3) (cid:24)(cid:19)(cid:8)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:68)(cid:3) (cid:77)(cid:82)(cid:76)(cid:81)(cid:87)(cid:3) (cid:89)(cid:72)(cid:81)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:82)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3) (cid:83)(cid:85)(cid:82)(cid:70)(cid:72)(cid:86)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:73)(cid:85)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:86)(cid:86)(cid:72)(cid:87)s  with 
(cid:48)(cid:68)(cid:85)(cid:78)(cid:58)(cid:72)(cid:86)(cid:87)(cid:3) (cid:40)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3) (cid:47)(cid:17)(cid:51)(cid:17)(cid:3) (cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3) of 
operations, financial position and cash flows of Antero Midstream.  As a result, these consolidated financial statements should be read 
(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:77)(cid:88)(cid:81)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:87)(cid:82)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:36)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)(cid:53)(cid:72)port on 
Form 10-K for the year ended December 31, 2018. 

(b)  Simplification Agreement 

On  October 9,  2018,  Antero  Mids(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:15)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:42)(cid:51)(cid:3) (cid:47)(cid:51)(cid:3) (cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:180)(cid:12)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:76)(cid:85)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3) (cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:87)(cid:82)(cid:3) (cid:68)(cid:3)
(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:11)(cid:68)(cid:86)(cid:3)(cid:80)(cid:68)(cid:92)(cid:3)(cid:69)(cid:72)(cid:3)(cid:68)(cid:80)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:54)(cid:76)(cid:80)(cid:83)(cid:79)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3)(cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)r 
things, (1) AMGP will be converted from a limited partnership to a corporation under the laws of the State of Delaware, to be named 
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owned subsidiary of New AM will be merged with and into Antero Midstream,  with Antero Midstream surviving the  merger as an 
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limited liability company interests of Antero ID(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:47)(cid:47)(cid:38)(cid:3)(cid:11)(cid:179)(cid:44)(cid:39)(cid:53)(cid:3)(cid:43)(cid:82)(cid:79)(cid:71)(cid:76)(cid:81)(cid:74)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:68)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:71)(cid:3)(cid:86)(cid:88)(cid:69)(cid:86)(cid:76)(cid:71)(cid:76)(cid:68)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
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F-8 

 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

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Transactions, Antero Midstream  will be a  wholly owned subsidiary of New  AM and former shareholders of  AMGP, unitholders of 
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Stock  equal  to  the  quotient  of  (A) $3.415  and  (B) the  average  of  the  20-day  volume-weighted  average  trading  price  per  AMGP 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3) (cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:79)(cid:3) (cid:72)(cid:79)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:71)(cid:68)(cid:92)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:36)(cid:48)(cid:3) (cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3) (cid:56)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:57)(cid:58)(cid:36)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:72)(cid:68)(cid:70)(cid:75)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:7)(cid:22)(cid:17)(cid:23)(cid:20)(cid:24)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:71)(cid:71)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:72)(cid:84)(cid:88)(cid:68)(cid:79) to the product 
of (A) 1.6350 and (B) (cid:87)(cid:75)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:57)(cid:58)(cid:36)(cid:51)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:51)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:11)(cid:21)(cid:12)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:15)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:69)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:79)(cid:72)(cid:71)(cid:15)(cid:3)(cid:86)(cid:88)(cid:69)(cid:77)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)in adjustments (as 
described below), to receive $3.00 in cash without interest and 1.6023 validly issued, fully paid, nonassessable shares of Ne(cid:90)(cid:3)(cid:36)(cid:48)(cid:182)(cid:86)(cid:3)
(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:75)(cid:72)(cid:79)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:36)(cid:53)(cid:3)(cid:48)(cid:76)(cid:91)(cid:72)(cid:71)(cid:3)(cid:38)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:180)(cid:12)(cid:17) 

The aggregate cash consideration to be paid to Antero Resources and the AM Public Unitholders will be fixed at an amount 
equal to the aggregate amount of cash that would have been paid and issued if all AM Public Unitholders received $3.415 in cash per 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:36)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:38)(cid:68)(cid:86)(cid:75)(cid:180)(cid:12)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:7)(cid:22)(cid:17)(cid:19)(cid:19)(cid:3)(cid:76)(cid:81)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:15)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:91)(cid:76)(cid:80)(cid:68)(cid:87)(cid:72)(cid:79)(cid:92)(cid:3)(cid:7)(cid:24)(cid:28)(cid:27)(cid:3)
million.  If the Available Cash exceeds the cash consideration elected to be received by the AM Public Unitholders, Antero Resources 
may elect to increase the total amount of cash consideration to be received as a part of the AR Mixed Consideration up to an  amount 
equal to the excess and the amount of shares it will receive will be reduced accordingly based on the AMGP VWAP. In addition, the 
consideration  to  be  received  each  AM  Public  Unitholder  may  be  prorated  in  the  event  that more  cash  or  equity  is  elected  to  be 
received than what would otherwise have been paid if all AM Public Unitholders had received the Public Mixed Consideration and 
Antero Resources received the AR Mixed Consideration. 

(cid:55)(cid:75)(cid:72)(cid:3) (cid:48)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3) (cid:86)(cid:75)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3) (cid:69)(cid:72)(cid:3) (cid:68)(cid:3) (cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:17)(cid:3) (cid:55)(cid:75)(cid:72)(cid:3) (cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:75)(cid:68)(cid:85)(cid:68)(cid:70)(cid:87)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:74)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:85)(cid:3) (cid:79)(cid:82)(cid:86)(cid:86)(cid:3)
recognized by each unitholder in the Merger will vary depending on such unitho(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)(cid:68)(cid:85)(cid:3)(cid:86)(cid:76)(cid:87)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:49)(cid:72)(cid:90)(cid:3) (cid:36)(cid:48)(cid:182)(cid:86)(cid:3)(cid:38)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:15)(cid:3)(cid:76)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:71)(cid:3)(cid:69)(cid:92)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3) (cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72) 
(cid:68)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:182)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:86)(cid:3)(cid:11)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:88)(cid:70)(cid:75)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)
of income, gain, loss and deduction to such unitholder for the taxable year that includes the Merger), and the amount of any suspended 
passive losses that may be available to such unitholder to offset a portion of the gain recognized by such unitholder in connection with 
the Merger.     

Special  meetings of  AMGP  shareholders and  Antero Midstream  unitholders  will be held on March 8, 2019 to vote on the 
Simplification  Agreement,  the  Merger  and  the  other  Transactions  contemplated  thereby,  as  applicable,  and  all  AMGP  shareholders 
and Antero Midstream unitholders of record as of the close of business on January 11, 2019, which is the record date for the  special 
meetings, will be entitled to vote the AMGP common shares and Antero Midstream common units, respectively, owned by them on 
the  record  date.   AMGP  and  Antero  Midstream  expect  the  Transactions  to  close  shortly  after  the  special  meeting  date,  subject  to 
certain  closing  conditions  under  the  documentation  for  the  Transactions.    AMGP  and  Antero  Midstream  expect  to  fund  the  cash 
(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:80)(cid:72)(cid:85)(cid:74)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:69)(cid:82)(cid:85)(cid:85)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:88)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:17)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:85)(cid:72)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87) facility 
was amended on October 31, 2018 to increase lender commitments from $1.5 billion to $2.0 billion.  

Also on October 9, 2018, in connection with the entry into the Simplification Agreement, (1) Antero Midstream entered into 
(cid:68)(cid:3) (cid:89)(cid:82)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3) (cid:82)(cid:90)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:3) (cid:80)(cid:68)(cid:77)(cid:82)(cid:85)(cid:76)(cid:87)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)g  AMGP  common  shares,  pursuant  to  which, 
among other things, such shareholders agreed to vote in favor of the Transactions, (2) AMGP entered into a voting agreement with 
Antero  Resources,  pursuant  to  which,  among  other  things,  Antero  Resources  agreed  to  vote  in  favor  of  the  Transactions  and  (3) 
(cid:36)(cid:48)(cid:42)(cid:51)(cid:15)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:73)(cid:88)(cid:81)(cid:71)(cid:86)(cid:3) (cid:68)(cid:73)(cid:73)(cid:76)(cid:79)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:58)(cid:68)(cid:85)(cid:69)(cid:88)(cid:85)(cid:74)(cid:3) (cid:51)(cid:76)(cid:81)(cid:70)(cid:88)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:60)(cid:82)(cid:85)(cid:78)(cid:87)(cid:82)(cid:90)(cid:81)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3) (cid:47)(cid:47)(cid:38)(cid:3) (cid:11)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:3)
(cid:43)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:15)(cid:3)(cid:51)(cid:68)(cid:88)(cid:79)(cid:3)(cid:48)(cid:17)(cid:3)(cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:42)(cid:79)(cid:72)(cid:81)(cid:3)(cid:38)(cid:17)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:15) Jr. (Messrs. (cid:53)(cid:68)(cid:71)(cid:92)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:58)(cid:68)(cid:85)(cid:85)(cid:72)(cid:81)(cid:3)(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:180)(cid:12)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)
(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3) (cid:36)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3) (cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3) (cid:87)(cid:82)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:15)(cid:3) (cid:68)(cid:80)(cid:82)(cid:81)(cid:74)(cid:3) (cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3) (cid:87)(cid:75)(cid:76)(cid:81)(cid:74)(cid:86)(cid:15)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:54)(cid:83)(cid:82)(cid:81)(cid:86)(cid:82)(cid:85)(cid:3) (cid:43)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)
Holders will have the ability to designate  members of the New AM board of directors under certain circumstances, effective as the 
closing of the Transactions. 

F-9 

 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(2)  Summary of Significant Accounting Policies 

(a)  Basis of Presentation 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally 
(cid:68)(cid:70)(cid:70)(cid:72)(cid:83)(cid:87)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:56)(cid:81)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:54)(cid:87)(cid:68)(cid:87)(cid:72)(cid:86)(cid:3)(cid:11)(cid:179)(cid:42)(cid:36)(cid:36)(cid:51)(cid:180)(cid:12)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)lude 
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December (cid:22)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72) years ended December 31, 2016, 2017 and 
(cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:81)(cid:82)(cid:3)(cid:76)(cid:87)(cid:72)(cid:80)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:75)(cid:72)(cid:81)(cid:86)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:30)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:76)(cid:86)(cid:3)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:76)(cid:70)(cid:68)(cid:79)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:72)(cid:75)(cid:72)(cid:81)(cid:86)(cid:76)(cid:89)(cid:72)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72). 

As of the date these consolidated financial statements were filed with the SEC, AMGP completed its evaluation of potential 
subsequent  events  for  disclosure  and  no  items  requiring  disclosure  were  identified  other  than  as  disclosed  in  Note 7(cid:178)Cash 
Distributions. 

(b)  Principles of Consolidation 

The  consolidated  financial  statements  include  the  accounts  of  AMGP,  AMP  GP  (its  wholly-owned  subsidiary),  and  IDR 

LLC. 

(c)   Investment in Antero Midstream 

(cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:75)(cid:68)(cid:86)(cid:3) (cid:71)(cid:72)(cid:87)(cid:72)(cid:85)(cid:80)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3) (cid:87)(cid:75)(cid:68)(cid:87)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:76)(cid:86)(cid:3) (cid:68)(cid:3) (cid:89)(cid:68)(cid:85)(cid:76)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:92)(cid:3) (cid:11)(cid:179)(cid:57)(cid:44)(cid:40)(cid:180)(cid:12)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:3) (cid:76)(cid:86)(cid:3) (cid:81)(cid:82)(cid:87)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:85)(cid:76)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3)
beneficiary  and  therefore  does  not  consolidate.    AMGP  concluded  that  Antero  Resources  is  the  primary  beneficiary  of  Antero 
Midstream and should consolidate its financial results.  Antero Resources is the primary beneficiary based on its power to direct the 
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benefits  of  Antero  Midstream  that  could  be  significant  to  Antero  Midstream.    Antero  Resources  owns  approximately  52.8%  of  the 
outstanding limited partner interests in Antero Midstream and its officers and management group also act as management of Antero 
Midstream.    (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:90)(cid:68)(cid:86)(cid:3) (cid:73)(cid:82)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3) (cid:87)(cid:82)(cid:3) (cid:82)(cid:90)(cid:81)(cid:15)(cid:3) (cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:71)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:3) (cid:80)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3) (cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3) (cid:68)(cid:86)(cid:86)(cid:72)(cid:87)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:53)(cid:72)(cid:86)(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)
production under long-term contracts as described herein.  AMGP does not own any limited partnership interests in Antero Midstream 
and have no capital interests in Antero Midstream.  AMGP has not provided, and does not anticipate providing, financial support to 
Antero Midstream. 

(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:81)(cid:82)(cid:81)-economic  general  partner  interest  in  Antero  Midstream  provides  AMGP  with  significant 
influence  over  Antero  Midstream,  but  not  control  over  the  decisions  that  most  significantly  impact  the  economic  performance  of 
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Antero Midstr(cid:72)(cid:68)(cid:80)(cid:3)(cid:90)(cid:75)(cid:72)(cid:81)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3)(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:3)(cid:68)(cid:80)(cid:82)(cid:88)(cid:81)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:71)(cid:82)(cid:72)(cid:86)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:87)(cid:82)(cid:3)
provide financial support to Antero Midstream.  AMGP obtained these interests upon its formation for no consideration.  Therefore, 
they  have (cid:81)(cid:82)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:70)(cid:79)(cid:68)(cid:86)(cid:86)(cid:76)(cid:73)(cid:76)(cid:72)(cid:71)(cid:3)(cid:68)(cid:86)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:87)(cid:72)(cid:85)(cid:80)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:17)(cid:3)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3) (cid:68)(cid:86)(cid:3)(cid:68)(cid:3) (cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:88)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:74)(cid:81)(cid:76)(cid:93)(cid:72)(cid:86)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)om 
Antero M(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:68)(cid:86)(cid:3)(cid:179)(cid:40)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:76)(cid:81)(cid:74)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:3)(cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:3)(cid:47)(cid:51)(cid:180)(cid:3)(cid:82)(cid:81)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:92)(cid:3)
(cid:68)(cid:85)(cid:72)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)-term interest in the IDRs on the balance sheet is recorded in 
(cid:179)Investment in Antero Midstream Partners (cid:47)(cid:51)(cid:17)(cid:180)(cid:3)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:44)(cid:39)(cid:53)(cid:86)(cid:3)(cid:71)(cid:82)(cid:3)(cid:81)(cid:82)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
any claim to the assets of Antero Midstream other than the balance in its Antero Midstream capital account.   Income related to the 
(cid:44)(cid:39)(cid:53)(cid:86)(cid:3) (cid:76)(cid:86)(cid:3) (cid:85)(cid:72)(cid:70)(cid:82)(cid:74)(cid:81)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3) (cid:68)(cid:86)(cid:3) (cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:86)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3) (cid:3) (cid:58)(cid:75)(cid:72)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:68)(cid:85)(cid:72)(cid:3) (cid:83)(cid:68)(cid:76)(cid:71)(cid:3) (cid:87)o 
AMGP,  they  reduce  its  capital  account  and  its  equity  investment  in  Antero  Midstream.    See  Note 6(cid:178)Distributions  from  Antero 
Midstream. 

(d)  Use of Estimates 

The  preparation  of  the  consolidated  financial  statements  and  notes  in  conformity  with  GAAP  requires  that  management 
formulate  estimates  and  assumptions  that  affect  income,  expenses,  assets,  and  liabilities.    Changes  in  facts  and  circumstances  or 
discovery of new information may result in revised estimates, and actual results could differ from those estimates. 

F-10 

ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(e)   Income Taxes 

AMGP  is  a  Delaware  limited  partnership  that  is  taxed  as  a  corporation  for  U.S.  federal  income  tax  purposes.    AMGP 
recognizes deferred tax assets and liabilities for temporary differences resulting from net operating loss carryforwards for  income tax 
purposes and the differences between the financial statement and tax basis of assets and liabilities.  The effect of changes in tax laws 
or  tax  rates  is  recognized  in  income  during  the  period  such  changes  are  enacted.    Deferred  tax  assets  are  reduced  by  a  valuation 
allowance when, in the opinion of management, it is more likely than not that some portion, or all,  of the deferred tax assets will not 
be realized.  AMGP regularly reviews its tax positions in each significant taxing jurisdiction during the process of evaluating its tax 
provision.  AMGP makes adjustments to its tax provision when: (i) facts and circumstances regarding a tax position change, causing a 
(cid:70)(cid:75)(cid:68)(cid:81)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:182)(cid:86)(cid:3)(cid:77)(cid:88)(cid:71)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:85)(cid:72)(cid:74)(cid:68)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:68)(cid:91)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71)(cid:18)(cid:82)(cid:85)(cid:3)(cid:11)(cid:76)(cid:76)(cid:12) a tax position is effectively settled with a tax authority at a 
differing amount. 

(f) 

 General and Administrative Expenses 

General and administrative costs incurred during 2016 and pre-IPO in 2017 primarily relate to legal and other costs incurred 
(cid:76)(cid:81)(cid:3)(cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:44)(cid:51)(cid:50)(cid:17)(cid:3)(cid:3)(cid:51)(cid:82)(cid:86)(cid:87)-IPO general and administrative expense consists primarily of management fees paid to Antero 
Resources, and other legal and administrative expenses.  Additionally, in connection with the formation of a conflicts committee of the 
(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:51)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:182)(cid:86)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3) (cid:87)(cid:82)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:71)(cid:72)(cid:85)(cid:3) (cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3) (cid:87)(cid:85)(cid:68)(cid:81)(cid:86)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:76)(cid:81)(cid:89)(cid:82)(cid:79)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3) (cid:88)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:70)(cid:82)(cid:81)(cid:81)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3) (cid:36)(cid:81)tero 
Res(cid:82)(cid:88)(cid:85)(cid:70)(cid:72)(cid:86)(cid:182)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:72)(cid:73)(cid:73)(cid:82)(cid:85)(cid:87)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:79)(cid:82)(cid:85)(cid:72)(cid:15)(cid:3)(cid:85)(cid:72)(cid:89)(cid:76)(cid:72)(cid:90)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:82)(cid:87)(cid:72)(cid:81)(cid:87)(cid:76)(cid:68)(cid:79)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:73)licts 
(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:87)(cid:72)(cid:72)(cid:3)(cid:85)(cid:72)(cid:87)(cid:68)(cid:76)(cid:81)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:71)(cid:89)(cid:76)(cid:86)(cid:82)(cid:85)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:87)(cid:87)(cid:82)(cid:85)(cid:81)(cid:72)(cid:92)(cid:86)(cid:17)(cid:3)(cid:3)(cid:36)(cid:87)(cid:87)(cid:82)(cid:85)(cid:81)(cid:72)(cid:92)(cid:86)(cid:182)(cid:3)(cid:73)(cid:72)(cid:72)(cid:86)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:76)(cid:86)(cid:3)(cid:80)(cid:68)(cid:87)(cid:87)(cid:72)(cid:85)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:85)(cid:74)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:81)(cid:86)(cid:72)(cid:3)(cid:68)(cid:86)(cid:3)(cid:76)(cid:81)(cid:70)urred.  For 
the year ended December 31, 2018, the AMGP has expensed $6.9 million related to conflicts committee expenses. 

(g)  Equity-Based Compensation 

AMGP recognizes compensation cost related to all equity-based awards in the financial statements based on their estimated 
grant date fair value.  AMGP has authorized and outstanding Series B Units and AMGP is authorized to grant common share awards.  
The grant date fair values are determined based on the type of award and may utilize market prices on the date of grant or a Monte 
Carlo  simulation,  as  appropriate  for  the  type  of  equity-based  award.    Compensation  cost  is  recognized  ratably  over  the  applicable 
vesting or service period.  Forfeitures are accounted for as they occur by reversing the expense previously recognized for awards that 
were  forfeited  during  the  period.    See  Note 5(cid:178)Long-Term  Incentive  Plans  for  additional  information  regarding  our  equity-based 
compensation. 

(h)  Fair Value Measures 

(cid:55)(cid:75)(cid:72)(cid:3) (cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3) (cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3) (cid:11)(cid:87)(cid:75)(cid:72)(cid:3) (cid:179)(cid:41)(cid:36)(cid:54)(cid:37)(cid:180)(cid:12)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)ing  Standards  Codification  Topic  820,  Fair  Value 
Measurements and Disclosures, clarifies the definition of fair value, establishes a framework for measuring fair value, and expands 
disclosures about fair value measurements.  This guidance also relates to all nonfinancial assets and liabilities that are not recognized 
or disclosed on a recurring basis (e.g., the initial recognition of asset retirement obligations and impairments of long-lived assets).  The 
fair value is the price that AMGP estimates would be received to sell an asset or paid to transfer a liability in an orderly transaction 
between market participants at the measurement date.  A fair value hierarchy is used to prioritize inputs to valuation techniques used 
to  estimate  fair  value.    An  asset  or  liability  subject  to  the  fair  value  requirements  is  categorized  within  the  hierarchy  based  on  the 
(cid:79)(cid:82)(cid:90)(cid:72)(cid:86)(cid:87)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:76)(cid:81)(cid:83)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:68)(cid:76)(cid:85)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:17)(cid:3)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:68)(cid:86)(cid:86)(cid:72)(cid:86)(cid:86)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:76)(cid:70)(cid:88)(cid:79)ar input to 
the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.  The highest priority 
(Level 1) is given to unadjusted quoted market prices in active markets for identical assets or liabilities, and the lowest priority (Level 
3) is given to unobservable inputs.  Level 2 inputs are data, other than quoted prices included within Level 1, which are observable for 
the asset or liability, either directly or indirectly. 

(i)  Net Income per Common Share 

Net  income  per  common  share(cid:177)basic  for  each  period  is  computed  by  dividing  net  income  attributable  to  common 
shareholders by the basic weighted average number of common shares outstanding during the period.  Net income per common share 
(cid:177) diluted for each period is computed after giving consideration to the potential dilution from outstanding Series B units, calculated 
using the if converted method.  During the periods in which AMGP incurs a net loss, diluted weighted average shares outstanding are 
equal to basic weighted average common shares outstanding because the effect of all equity awards is anti-dilutive.  

F-11 

ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

At  December  31,  2017  and  2018,  there  were  4,777,759  and  1,365,525  shares,  respectively,  to  be  issued  upon  assumed 
conversion of the Series B Units.  The effect of these awards is anti-(cid:71)(cid:76)(cid:79)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:21)(cid:19)(cid:20)(cid:26)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:88)(cid:86)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:71)(cid:76)(cid:79)(cid:88)(cid:87)(cid:72)(cid:71)(cid:3)(cid:81)(cid:72)(cid:87)(cid:3)(cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)
per common share for the years ended December 31, 2017 and 2018 is equal to our basic net income per common share. 

(j)  Recently Adopted Accounting Standard 

(cid:50)(cid:81)(cid:3) (cid:45)(cid:88)(cid:81)(cid:72)(cid:3) (cid:21)(cid:19)(cid:15)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:41)(cid:36)(cid:54)(cid:37)(cid:3) (cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3) (cid:36)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:3) (cid:56)(cid:83)(cid:71)(cid:68)(cid:87)(cid:72)(cid:3) (cid:11)(cid:179)(cid:36)(cid:54)(cid:56)(cid:180)(cid:12)(cid:3) (cid:49)(cid:82)(cid:17)(cid:3) (cid:21)(cid:19)(cid:20)(cid:27)-07,  Improvements  to  Nonemployee 
Share-Based  Payment  Accounting,  which  aligns  the  accounting  for  employee  and  nonemployee  share-based  payments.    AMGP 
elected to adopt the standard as of October 1, 2018.  As a result of adopting this standard, AMGP reclassified its $3.0 million liability 
for equity-(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:182)(cid:3)(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:50)(cid:70)(cid:87)(cid:82)(cid:69)(cid:72)(cid:85)(cid:3)(cid:20)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:17)(cid:3)(cid:3)(cid:54)(cid:72)(cid:72)(cid:3)(cid:49)(cid:82)(cid:87)(cid:72)(cid:3)(cid:24)(cid:178)Long-Term Incentive Plans.   

(3)  Credit Facility 

On (cid:48)(cid:68)(cid:92)(cid:3)(cid:28)(cid:15)(cid:3)(cid:21)(cid:19)(cid:20)(cid:27)(cid:15)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:72)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:76)(cid:81)(cid:87)(cid:82)(cid:3)(cid:68)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:73)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)(cid:11)(cid:87)(cid:75)(cid:72)(cid:3)(cid:179)(cid:38)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:41)(cid:68)(cid:70)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:180)(cid:12)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:69)(cid:68)(cid:81)(cid:78)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:79)(cid:76)(cid:81)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)

of up to $12 million.  The maturity date of the Credit Facility is May 6, 2019. 

The Credit Facility is guaranteed by IDR LLC and secured by a pledge of the Series A capital interests in IDR LLC and the 

membership interests in AMP GP.  

Interest is payable on borrowings at a variable rate based on the base rate plus a margin rate of interest equal to 1.00% per 
annum.    The  base  rate  is  the  highest  of  (i)  the  Federal  Funds  Rate  plus  ½  of  1%,  (ii)  the  rate  of  interest  in  effect  for  such  day  as 
(cid:83)(cid:88)(cid:69)(cid:79)(cid:76)(cid:70)(cid:79)(cid:92)(cid:3)(cid:68)(cid:81)(cid:81)(cid:82)(cid:88)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:69)(cid:92)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:47)(cid:72)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:68)(cid:86)(cid:3)(cid:76)(cid:87)(cid:86)(cid:3)(cid:179)(cid:83)(cid:85)(cid:76)(cid:80)(cid:72)(cid:3)(cid:85)(cid:68)(cid:87)(cid:72)(cid:180)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:11)(cid:76)(cid:76)(cid:76)(cid:12)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:40)(cid:88)(cid:85)(cid:82)(cid:71)(cid:82)(cid:79)(cid:79)(cid:68)(cid:85)(cid:3)(cid:53)(cid:68)(cid:87)(cid:72)(cid:3)(cid:83)(cid:79)(cid:88)(cid:86)(cid:3)(cid:20)(cid:17)(cid:19)(cid:19)(cid:8)(cid:17)(cid:3) 

The  Credit  Facility  contains  customary  events  of  default  and  various  affirmative  and  negative  covenants,  including 
restrictions on incurring indebtedness, making investments and disposing of assets, and a requirement to completely repay amounts 
outstanding under the line of credit at least once each fiscal quarter.   

At December 31, 2018, AMGP had no borrowings under the Credit Facility. 

(4)  Income Taxes 

For the years ended December 31, 2016, 2017, and 2018, income tax expense consisted of the following:  

(in thousands) 
Current income tax expense 
Deferred income tax benefit 
Total income tax expense 

2016 

Year Ended December 31, 
2017 

$ 

$ 

 6,787  
 (368) 
 6,419  

 26,261  
 (cid:178)  
 26,261  

2018 

 33,615  
 (1,304) 
 32,311  

Income tax expense differs from the amount that would be computed by applying the U.S. statutory federal income tax rate of 
35% to income` for the years ended December 31, 2016 and 2017, and 21% for the year ended December 31, 2018, as a result of the 
following: 

(in thousands) 
Federal income tax expense 
State income tax expense, net of federal benefit 
Non-deductible equity-based compensation 
Non-deductible IPO expenses 
Other 

Provision for income taxes 

2016 

Year Ended December 31, 
2017 

2018 

$ 

$ 

 5,646  
 479   
 (cid:178)  
 309   
 (15)  
 6,419  

 10,005   
 952   
 13,296   
 1,948   
 60   
 26,261   

 20,773   
 4,133  
 8,087  
 1   
 (683)  
 32,311   

F-12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

Deferred  income  taxes  reflect  the  impact  of  temporary  differences  between  assets  and  liabilities  for  financial  reporting 
purposes  and  such  amounts  as  measured  by  tax  laws.    As  of  December  31,  2018,  AMGP  had  a  deferred  tax  asset  of  $1.3  million 
related to transaction costs incurred for the Simplification Agreement.   

In assessing the realizability  of deferred tax assets,  management considers  whether some portion or all of the deferred tax 
assets  will  be  realized  based  on  a  more-likely-than-not  standard  of  judgment.    The  ultimate  realization  of  deferred  tax  assets  is 
(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3) (cid:88)(cid:83)(cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:73)(cid:88)(cid:87)(cid:88)(cid:85)(cid:72)(cid:3) (cid:87)(cid:68)(cid:91)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3) (cid:76)(cid:81)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3) (cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:71)(cid:86)(cid:3) (cid:76)(cid:81)(cid:3) (cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:87)(cid:72)(cid:80)(cid:83)(cid:82)(cid:85)(cid:68)(cid:85)(cid:92)(cid:3) (cid:71)(cid:76)(cid:73)(cid:73)(cid:72)(cid:85)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3) (cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)
deductible.    Management  considers  projected  future  taxable  income  and  tax  planning  strategies  in  making  this  assessment.    Based 
upon the projections of future taxable income over the periods in which the deferred tax assets are deductible, management believes 
that the Partnership will realize the benefits of these deductible differences and thus has not recorded a valuation allowance. 

The tax years 2015 through 2018 remain open to examination by the U.S. Internal Revenue Service.  The Company and its 
subsidiaries file tax returns with various state taxing authorities; these returns remain open to examination for tax years 2014 through 
2018. 

(5)  Long-Term Incentive Plans 

As of December 31, 2018, IDR LLC has 98,600 Series B Units authorized and outstanding that entitle the holders to receive 
up to 6% of the amount of the distributions that Antero Midstream makes on its IDRs in excess of $7.5 million per quarter, subject to 
certain  vesting  conditions.    During  the  year  ending  December  31,  2017,  1,400  Series  B  Units  were  forfeited  and  there  were  no 
forfeitures during 2018.  The Series B Units vest ratably over a three year period. On December 31, 2018, 65,745 Series B Units were 
vested.  The holders of vested Series B Units have the right to convert the units to common shares with a value equal to their pro rata 
share of up to 6% of (cid:68)(cid:81)(cid:92)(cid:3)(cid:76)(cid:81)(cid:70)(cid:85)(cid:72)(cid:68)(cid:86)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:86)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:21)(cid:17)(cid:19)(cid:3)(cid:69)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)(cid:44)(cid:81)(cid:3)(cid:81)(cid:82)(cid:3)(cid:72)(cid:89)(cid:72)(cid:81)(cid:87)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:74)(cid:74)(cid:85)(cid:72)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:81)(cid:72)(cid:90)(cid:79)(cid:92)(cid:3)
(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:3)(cid:25)(cid:8)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:82)(cid:87)(cid:68)(cid:79)(cid:3)(cid:81)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3)(cid:76)(cid:86)(cid:86)(cid:88)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:87)(cid:86)(cid:87)(cid:68)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:86)(cid:17) 

AMGP recognizes expense for the grant date fair value of the awards over the vesting period of the awards.  Forfeitures are 
accounted for as they occur by reversing expense previously recognized for awards that were forfeited during the period.  For awards 
granted  to  common  law  employees,  the  grant  date  fair  value  of  the  Series B  Unit  awards  was  estimated  using  a  Monte  Carlo 
simulation  using  various  assumptions  including  a  floor  equity  value  of  $2.0  billion,  expected  volatility  of  43%  based  on  historical 
volatility of a peer group of publicly traded partnerships, a risk free rate of 2.45%, and expected IDR distributions based on internal 
estimates discounted based on a  weighted average cost of capital assumption of 7.25%.  Based on these assumptions, the estimated 
value  of  each  Series B  Unit  was  $999  when  they  were  issued.    The  fair  value  measurement  is  based  on  significant  inputs  not 
observable in the market and thus represents a Level 3 measurement within the fair value hierarchy.  For a discussion of the Series B 
Exchange in the event that the Transactions are consummated, see Note 1(cid:178)Business and Organization. 

Prior to October 1, 2018, certain of the awards made to non-common law employees were accounted for as liability awards.  
On October 1, 2018, AMGP adopted ASU 2018-07, which allows these awards to be treated in the same manner as employee awards.  
The remaining liability at September 30, 2018 of $3.0 million  was reclassified to equity effective October 1, 2018.  The remaining 
unamortized expense related to these awards  will be amortized from October 1, 2018 through December 31, 2019.  Forfeitures are 
accounted  for  as  they  occur  by  reversing  expense  previously  recognized  for  awards  that  were  forfeited  during  the  period.    At 
September  30,  2018,  the  fair  value  of  the  Series B  Unit  awards  was  estimated  using  a  Monte  Carlo  simulation  using  various 
assumptions  including  an  equity  value  of  $3.3  billion,  expected  volatility  of  38%  based  on  historical  volatility  of  a  peer  group  of 
publicly traded partnerships, a risk free rate of 3.00%, and expected IDR distributions based on internal estimates discounted based on 
a  weighted average cost of capital assumption of 7.25%.  Based on these assumptions, the estimated value of each Series B Unit at 
September 30, 2018 was $1,673.  The fair value  measurement is based  on significant inputs  not observable in the  market and  thus 
represents a Level 3 measurement within the fair value hierarchy. 

AMGP recognized expense related to the Series B Unit awards of  $34.7 million and $34.4 million during the  years ended 
December 31, 2017 and 2018, respectively.  As of December 31, 2018, there was $34.4 million of unamortized compensation expense 
related to unvested Series B Units that is expected to be recognized in 2019. 

On April 17, 2017, AMGP also adopted the Antero Midstream GP LP Long-(cid:55)(cid:72)(cid:85)(cid:80)(cid:3)(cid:44)(cid:81)(cid:70)(cid:72)(cid:81)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:51)(cid:79)(cid:68)(cid:81)(cid:3)(cid:11)(cid:179)(cid:36)(cid:48)(cid:42)(cid:51)(cid:3)(cid:47)(cid:55)(cid:44)(cid:51)(cid:180)(cid:12)(cid:15)(cid:3)(cid:83)(cid:88)(cid:85)(cid:86)(cid:88)(cid:68)(cid:81)(cid:87)(cid:3)
to  which  certain  non-(cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3) (cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:73)(cid:76)(cid:70)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3) (cid:72)(cid:80)(cid:83)(cid:79)(cid:82)(cid:92)(cid:72)(cid:72)(cid:86)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:70)(cid:82)(cid:81)(cid:86)(cid:88)(cid:79)(cid:87)(cid:68)(cid:81)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)
Resources are eligible to receive awards representing equity interests in  AMGP.   An aggregate of 930,851 common  shares  may be 

F-13 

 
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

delivered pursuant to awards under the AMGP LTIP, subject to customary adjustments.   As of December 31, 2017 and 2018, 11,762 
and 49,225 common shares were granted, respectively.  AMGP recognized related expense of $0.2 million and $0.7 million related to 
these  awards  for  the  years  ended  December  31,  2017  and  2018,  respectively.    As  of  December  31,  2018,  881,626  common  shares 
remain available for grant under the AMGP LTIP. 

(6)  Distributions from Antero Midstream 

(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:74)(cid:85)(cid:72)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:89)(cid:76)(cid:71)(cid:72)(cid:86)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:68)(cid:3)(cid:80)(cid:76)(cid:81)(cid:76)(cid:80)(cid:88)(cid:80)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:19)(cid:17)(cid:20)(cid:26)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:82)(cid:81)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)
(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:7)(cid:19)(cid:17)(cid:25)(cid:27)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:69)(cid:68)(cid:86)(cid:76)(cid:86)(cid:17)(cid:3)(cid:3)(cid:44)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:3)(cid:7)(cid:19)(cid:17)(cid:20)(cid:28)(cid:24)(cid:24)(cid:3)(cid:83)(cid:72)r common 
(cid:88)(cid:81)(cid:76)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:68)(cid:81)(cid:92)(cid:3) (cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15)(cid:3) (cid:44)(cid:39)(cid:53)(cid:3) (cid:47)(cid:47)(cid:38)(cid:15)(cid:3) (cid:68)(cid:86)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3) (cid:44)(cid:39)(cid:53)(cid:86)(cid:15)(cid:3) (cid:90)(cid:76)(cid:79)(cid:79)(cid:3) (cid:85)(cid:72)(cid:70)(cid:72)(cid:76)(cid:89)(cid:72)(cid:3) (cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:82)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
following percentage allocations: 

Total Quarterly Distribution 
Target Amount 
above $0.1955 up to $0.2125 
above $0.2125 up to $0.2550 
above $0.2550 

Marginal Percentage Interest in Distributions 
Antero Midstream 

Common Unitholders      

Holder of IDRs 

 85  %     
 75  %     
 50  %     

 15  %     
 25  %     
 50  %     

Distributions per common unit and distributions related to the IDRs were as follows for the periods indicated: 

Quarter 
and 
Year 
Q1 2016 
Q2 2016 
Q3 2016 
Q4 2016 
Q1 2017 
Q2 2017 
Q3 2017 
Q4 2017 
Q1 2018 
Q2 2018 
Q3 2018 

Distribution Date 

  May 25, 2016 

August 24, 2016 
November 24, 2016 
February 8, 2017 

  May 10, 2017 

August 16, 2017 
November 16, 2017 
February 13, 2018 

  May 18, 2018 

August 17, 2018 
November 16, 2018 

Antero Midstream 
Distribution Amount 
per Common Unit 

Income Attributable to 
IDRs 
($ thousands) 

$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 

0.235 
0.250  
0.265  
0.280  
0.300  
0.320  
0.340  
0.365  
0.390  
0.415  
0.440  

$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 
$ 

 1,850 
 2,731  
 4,820  
 7,543  
 11,553   
 15,328   
 19,067   
 23,772   
 28,460   
 33,138   
 37,816   

(cid:55)(cid:75)(cid:72)(cid:3)(cid:69)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3)(cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:182)(cid:86)(cid:3)(cid:74)(cid:72)(cid:81)(cid:72)(cid:85)(cid:68)(cid:79)(cid:3)(cid:83)(cid:68)(cid:85)(cid:87)(cid:81)(cid:72)(cid:85)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:68)(cid:85)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:71)(cid:76)(cid:86)(cid:87)(cid:85)(cid:76)(cid:69)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:7)(cid:19)(cid:17)(cid:23)(cid:26)(cid:3)(cid:83)(cid:72)(cid:85)(cid:3)(cid:88)(cid:81)(cid:76)(cid:87)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)er 
ended December 31, 2018.  The distribution was paid on February 13, 2019 to shareholders of record as of February 1, 2019.  The 
distribution attributable to the IDRs for the quarter ended December 31, 2018 is $43.5 million. 

Distributions attributable to the IDRs which relate to periods prior to May 9, 2017, the closing of our IPO, were distributed to 

Antero Investment prior to its liquidation.  

F-14 

 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(7)  Cash Distributions  

The  following  table  details  the  amount  of  quarterly  distributions  AMGP  paid  with  respect  to  the  quarter  indicated  (in 

thousands, except per share data):  

Quarter 
and Year 
* 
Q2 2017 
Q3 2017 

Q4 2017 
Q1 2018 
Q2 2018 
Q3 2018 

Record Date 

Distribution Date 

Common 
shareholders 

Distributions 
Antero Resources 
Investment 

  May 9, 2017 
  August 3, 2017 
  November 1, 2017   November 23, 2017  
  Total 2017 

  September 13, 2017   $ 
  August 23, 2017 

  $ 

  February 1, 2018 
  May 3, 2018 
  August 2, 2018 
  November 2, 2018   November 21, 2018  
  Total 2018 

  February 20, 2018    $ 
  May 23, 2018 
  August 22, 2018 

  $ 

 (cid:178)  
 5,026  
 10,985  
 16,011  

 13,964  
 20,109  
 23,276  
 26,817  
 84,166  

 15,908  
 (cid:178)  
 (cid:178)  
 15,908  

 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  
 (cid:178)  

Total 

 15,908  

Distributions 
per common share 
* 

 5,026   $ 
 10,985   $ 
 31,919  

 13,964   $ 
 20,109   $ 
 23,276   $ 
 26,817   $ 
 84,166  

0.027  
0.059  

0.075  
0.108  
0.125  
0.144  

(cid:13) 

Income  relating  to  periods  prior  to  May  9,  2017,  the  closing  of  our  IPO,  was  distributed  to  Antero  Investment  prior  to  its 
liquidation. 

The  board  of  directors  of  our  general  partner  has  declared  a  cash  distribution  of  $0.164  per  share  for  the  quarter  ended 

December 31, 2018.  The distribution will be payable on February 21, 2019 to our shareholders of record as of February 1, 2019.   

(8)  Related Party Transactions 

(cid:38)(cid:72)(cid:85)(cid:87)(cid:68)(cid:76)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3) (cid:76)(cid:81)(cid:70)(cid:79)(cid:88)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3) (cid:80)(cid:72)(cid:80)(cid:69)(cid:72)(cid:85)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:76)(cid:87)(cid:86)(cid:3) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:15)(cid:3) (cid:82)(cid:90)(cid:81)(cid:3) (cid:68)(cid:3) (cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3) (cid:76)(cid:81)(cid:87)(cid:72)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3)
AMGP and, either through their representatives or directly, serve as members of the Board of Directors of Antero Resources and the 
Boards of Directors of the general partners of Antero Midstream and AMGP.  These same groups or individuals own common stock in 
Antero  Resources  and  limited  partner  interests  in  Antero  Midstream.  (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3) (cid:80)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3) (cid:74)(cid:85)(cid:82)(cid:88)(cid:83)(cid:3) (cid:68)(cid:79)(cid:86)(cid:82)(cid:3) (cid:80)(cid:68)(cid:81)ages  the 
operations and business affairs of Antero Resources and Antero Midstream.  For a discussion of the Series B Exchange in the event 
that the Transactions are consummated, see Note 1(cid:178)Business and Organization. 

Accounts  payable(cid:177)affiliate  at  December  31,  2017  and  December  31,  2018 consists  of  less  than  $0.1  million  and  less  than 

$0.8 million, respectively, payable to Antero Resources for general and administrative expenses. 

F-15 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
  
  
  
     
  
  
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(9)  Quarterly Financial Information (Unaudited) 

Our unaudited quarterly financial information for the years ended December 31, 2017 and 2018 is as follows:  

(in thousands, except per unit data) 
Year ended December 31, 2017 

Total income 
Total operating expenses 
Net income (loss) and comprehensive income (loss) 
Net income (loss) attributable to Antero Midstream GP 

LP subsequent to IPO 

Net income attributable to Series B units 

Net income attributable to common shareholders 

$ 

First 
quarter 

Second 
quarter 

Third 
quarter 

Fourth 
quarter 

$ 

 11,553   
 10,427   
 (3,299)  

 (cid:178)   
 (cid:178)   
 (cid:178)   

 15,328   
 12,834   
 (3,261)  

 (1,621)  
 (cid:178)   
 (1,621)  

 19,067  
 8,932  
 2,978  

 2,978  
 (cid:178)  
 2,978  

 23,772   
 8,941  
 5,907  

 5,907  
 (784) 
 5,123  

Net income (loss) per common share(cid:177)basic and diluted  

$  

 (0.01)  

 0.02  

 0.03  

Year ended  December 31, 2018 

Total income 
Total operating expenses 
Net income and comprehensive income  
Net income attributable to Series B units 

Net income attributable to common shareholders 

Net income per common share(cid:177)basic and diluted 

$ 

$ 

$ 

 28,453   
 9,560   
 12,805   
 (413)  
 12,392   

 33,145   
 11,509   
 14,387   
 (506)  
 13,881   

 37,816  
 10,803  
 18,028  
 (598) 
 17,430  

 43,492   
 11,979   
 21,388   
 (3,719) 
 17,669   

 0.07   

 0.07   

 0.09  

 0.10  

F-16 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
     
     
     
  
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
   
 
   
 
   
 
   
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
   
 
   
 
   
 
 
 
 
 
 
 
 
ANTERO MIDSTREAM GP LP 

Notes to Consolidated Financial Statements (Continued) 

Years Ended December 31, 2016, 2017, and 2018 

(10)  Summarized Financial Information for Antero Midstream 

(cid:54)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3) (cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3) (cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:36)(cid:81)(cid:87)(cid:72)(cid:85)(cid:82)(cid:3) (cid:48)(cid:76)(cid:71)(cid:86)(cid:87)(cid:85)(cid:72)(cid:68)(cid:80)(cid:15)(cid:3) (cid:36)(cid:48)(cid:42)(cid:51)(cid:182)(cid:86)(cid:3) (cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:72)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:88)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:80)(cid:72)(cid:87)(cid:75)(cid:82)(cid:71)(cid:3) (cid:82)(cid:73)(cid:3)
accounting, is included in  this note.  The  following tables  present summarized income statement and balance  sheet  information  for 
Antero Midstream (in thousands). 

Summarized Antero Midstream Income Statement Information 

Revenues 
Operating expenses 
Operating income 

Net income and comprehensive income 
Net income attributable to incentive distribution rights 

Limited partners' interest in net income 

2016 

Year Ended December 31,  
2017 

$ 

$ 

 590,211   
 332,100   
 258,111   
 236,703   
 (16,944)  
 219,759   

 772,497   
 447,819   
 324,678   
 307,315   
 (69,720)  
 237,595   

2018 
 1,028,522  
 420,952   
 607,570   
 585,944   
 (142,906)  
 443,038   

Summarized Antero Midstream Balance Sheet Information 

Current assets 
Non-current assets 
Current liabilities 
Non-current liabilities 
Partners' capital 

December 31, 

2017 

2018 

$ 

$ 

 120,385   
 2,921,824   
 121,316   
 1,404,424   
 1,516,469   

 138,435  
 3,407,982  
 99,686  
 1,755,223  
 1,691,508  

F-17 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE INFORMATION

BOARD OF DIRECTORS
PAUL M. RADY
Chairman and CEO

GLEN C. WARREN, JR.
President and Director 

PETER A. DEA
Director 

PETER R. KAGAN
Director

SENIOR MANAGEMENT
PAUL M. RADY
Chairman and CEO

GLEN C. WARREN, JR.
President and Director 

MICHAEL N. KENNEDY  
Chief Financial Officer  
and Senior Vice President – Finance, 
Antero Resources

ALVYN A. SCHOPP
Chief Administrative Officer,  
Regional Senior Vice President and Treasurer 

KEVIN J. KILSTROM
Senior Vice President – Production 

BRIAN A. KUHN
Senior Vice President – Land

STEVEN M. WOODWARD 
Senior Vice President – Business Development 

W. HOWARD KEENAN, JR.
Director

DAVID H. KEYTE
Director 

BROOKS J. KLIMLEY 
Lead Director 

JOHN C. MOLLENKOPF
Director

DAVID A. PETERS
Director

ROSE M. ROBESON
Director

YVETTE K. SCHULTZ
General Counsel and Vice President – Legal

BRENDAN E. KRUEGER
Vice President – Finance

JOHN GIANNAULA
Vice President – Human Resources  
and Administration 

AARON S.G. MERRICK
Vice President – Information Technology

TROY R. ROACH
Vice President – Health, Safety,  
and Environment

K. PHIL YOO
Vice President – Accounting  
and Chief Accounting Officer 

W. PATRICK ASH
Vice President – Reservoir Engineering  
and Planning 

DIANA O. HOFF
Vice President – Operations

ROBERT H. KRCEK
Vice President – Midstream

TIMOTHY J.C. RADY 
Vice President – Land 

MARIA WOOD HENRY
Vice President – Geology 

JUSTIN B. FOWLER 
Vice President – Gas Marketing  
and Transportation

DAVID A. CANNELONGO
Vice President – Liquids Marketing  
and Transportation 

TOFFAZZEL HAQUE
Vice President – Production 

INVESTOR RELATIONS
ANTERO MIDSTREAM CORPORATION  
1615 Wynkoop Street
Denver, Colorado 80202
(303) 357-7310 extension 6782  
www.anteroresources.com

TRANSFER AGENT AND REGISTRAR
AMERICAN STOCK TRANSFER  
AND TRUST COMPANY, LLC
6201 15th Avenue
Brooklyn, New York 11219
(800) 937-5449

INDEPENDENT REGISTERED  
PUBLIC ACCOUNTING FIRM
KPMG LLP Denver, Colorado

SHAREHOLDER INFORMATION
Our common shares are publicly traded  
on the NYSE under the symbol “AM”

CORPORATE HEADQUARTERS
ANTERO MIDSTREAM CORPORATION  
1615 Wynkoop Street
Denver, Colorado 80202

FORWARD-LOOKING STATEMENTS

The 2018 Annual Report includes “forward-looking statements”.  Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond 
AM’s control. 

All statements, except for statements of historical fact, made herein regarding activities, events or developments AM expects, believes or anticipates will or may occur in the 
future, such as those regarding future commodity prices, future production targets, completion of natural gas or natural gas liquids transportation projects, future earnings, 
Adjusted EBITDAX, Adjusted Operating Cash Flow, Free Cash Flow, future capital spending plans, improved and/or increasing capital efficiency, continued utilization of 
existing infrastructure, gas marketability, estimated realized natural gas, natural gas liquids and oil prices, acreage quality, access to multiple gas markets, expected drilling and 
development plans (including the number, type, lateral length and location of wells to be drilled, the number and type of drilling rigs and the number of wells per pad), projected 
well costs, future ﬁnancial position, future technical improvements and future marketing opportunities, are forward-looking statements within the meaning of Section 27A of the 
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although AM believes that the plans, intentions and expectations reﬂected in or suggested by the 
forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could 
materially differ from what is expressed, implied or forecast in such statements.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond the AM’s 
control, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil. These risks include, but are not limited to, commodity price 
volatility, inﬂation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty 
inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash ﬂow and access to capital, the timing of development expenditures, and the 
other risks described under the heading “Item 1A. Risk Factors” in AM’s Annual Report on Form 10-K for the year ended December 31, 2018.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking 
statement, whether as a result of new information, future events or otherwise, except as required by applicable law.