Antero Midstream GP LP Announces 20% Increase in Long-Term Distribution Targets

Antero Midstream GP LP Announces 20% Increase in Long-Term Distribution Targets

PR Newswire

DENVER, Jan. 2, 2018 /PRNewswire/ -- Antero Midstream GP LP (NYSE: AMGP) ("AMGP") today announced increased long-term distribution targets from 2018 through 2020 as a result of a reduction in the U.S. federal corporate tax rate.

 (PRNewsfoto/Antero Midstream GP LP)

Increased Long-Term Distribution Targets

AMGP is increasing its long-term distribution per share targets from 2018 through 2020 as a result of a reduction in the U.S. federal corporate tax rate from 35% to 21% per the Tax Cuts and Jobs Act, effective January 1, 2018.  As a partnership that has elected to be taxed as a corporation, AMGP's previously provided distribution per share targets were based on a U.S. federal corporate tax rate of approximately 35% and an aggregate effective state and local tax rate of approximately 3%, net of the federal benefit.  AMGP's updated distribution per share targets are based on the new U.S. federal corporate tax rate of 21% and an aggregate effective state and local tax rate of approximately 4%, net of the federal benefit.  AMGP's distribution growth targets through 2020 are based on Antero Midstream Partners LP's ("Antero Midstream") (NYSE: AM) compound annual distribution growth target of 28% to 30% through 2020, which remains unchanged from the targets provided on February 6, 2017. Additionally, AMGP's distribution growth targets exclude the impact of any future debt or equity offerings, acquisitions, or divestitures at either Antero Midstream or AMGP, consistent with historical practice.

AMGP's distribution per share targets have increased approximately 20% as compared to previously provided distribution targets from 2018 through 2020.  AMGP's 2017 distribution guidance of $0.15 to $0.17 per share remains unchanged.

AMGP Long-term Targets

2018


2019


2020

Updated Targets

Low


High


Low


High


Low


High

Year-Over-Year Distribution Growth(1)

154%

172%


63%

65%


51%

53%

AMGP Distributions Per Share

$0.52

$0.55


$0.84

$0.91


$1.28

$1.40













Previously Provided Targets












Year-Over-Year Distribution Growth(1)

110%

124%


63%

65%


51%

53%

AMGP Distributions Per Share

$0.43

$0.46


$0.70

$0.76


$1.06

$1.16













(1) 2018 represents year-over-year growth compared to full-year 2017 distributions.

Antero Midstream GP LP is a Delaware limited partnership that owns the general partner of Antero Midstream and incentive distribution rights in Antero Midstream.

This release includes "forward-looking statements" within the meaning of federal securities laws. Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond AMGP's control. All statements, other than historical facts, included in this release are forward-looking statements. All forward-looking statements speak only as of the date of this release and are based upon a number of assumptions. Although AMGP believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that the assumptions underlying these forward-looking statements will be accurate or the plans, intentions or expectations expressed herein will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Nothing in this release is intended to constitute guidance with respect to Antero Midstream.

AMGP cautions 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 AMGP's and Antero Midstream's control, incident to Antero Midstream's business. These risks include, but are not limited to, Antero Resources Corporation's ("Antero Resources") expected future growth, Antero Resources' ability to meet its drilling and development plan, commodity price volatility, Antero Midstream's ability to execute its business strategy, competition and government regulations, actions taken by third-party producers, operators, processors and transporters, inflation, environmental risks, drilling and completion and other operating risks, regulatory changes, the uncertainty inherent in projecting future rates of production, cash flow and access to capital and the timing of development expenditures.

For more information, contact Michael Kennedy – CFO of Antero Midstream GP LP at (303) 357-6782 or mkennedy@anteroresources.com.

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/antero-midstream-gp-lp-announces-20-increase-in-long-term-distribution-targets-300576283.html

SOURCE Antero Midstream GP LP

Copyright CNW Group 2018