Good day, everyone, and welcome to the Antero Midstream’s First Quarter 2017 Investor Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. Please also note that today’s event is being recorded. This time, I’d like to turn the conference call over to Mr. Chad Green, VP of Finance. Sir, please go ahead.

Thank you for joining us for Antero Midstream’s first quarter 2017 investor conference call. We’ll spend a few minutes going through the financial and operational highlights and then we’ll open it up for Q&A. I would also like to direct you to the home page of our website at www.anteromidstream.com where we have provided a separate earnings call presentation that will be reviewed during today’s call. Before we start our comments, I would first like to remind you that during this call Antero Midstream management will make forward-looking statements. Such statements are based on our current judgments regarding factors that will impact the future performance of Antero Midstream and its sponsor Antero Resources and are subject to a number of risks and uncertainties, many of which are beyond Antero’s control. Actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements. Joining me on the call today are Paul Rady, Chairman and CEO of Antero Resources and Antero Midstream; Glen Warren, President and CFO of Antero Resources and President of Antero Midstream; and Mike Kennedy, CFO of Antero Midstream. I will now turn the call over to Paul.

Thanks, Chad. Thank you to everyone for listening in to the call today. In my comments I’m going to highlight the results and productivity gains at AR during the quarter and how it benefits AM. Mike will then walk through the first quarter results and reiterate guidance. Before getting into the detailed presentation, I would like to provide a quick recap of the quarterly results of Antero Resources. During the first quarter Antero Resources announced record production of over 2.1 Bcf equivalent per day, a 22% increase over the prior year quarter. Based on first quarter production Antero Resources is now the largest producer in Appalachia, which is a tremendous achievement and the result of being the most integrated natural gas and NGL story in Appalachia. Importantly, first quarter which AR on track to achieve its 2017 production guidance, which in turn supports the Antero Midstream cash flow and distribution guidance. Moving on to the operational momentum at Antero Resources, I’ll direct you to the slide number 2 entitled Marcellus completion evolution. As you can see on the bottom left of the graph, the dark green diamonds represent wells completed with eight hours old completion design, where we used 1,250 pounds or less of profit per foot and 32 barrels of water per foot on average. These 2015 completions support the 1.7 Bcf per 1,000 type curve that the majority of AR’s reserves are currently booked at. Moving up and to the right, the red diamonds represent wells completed with 1,500 pounds per foot of proppant and 34 barrels per foot of water essentially the recipe that we used in 2016. As outlined on the insert graph at the top left of this slide, many of these wells now have over a year of production history and continue to support…

Thank you, Paul. AM started off 2017 with strong results that support its 2017 full year guidance. AM announced the first quarter distribution of $0.30 per unit, a 28% increase year-over-year and 7% increase sequentially with attractive DCF coverage of 1.4 times. The distribution marks our ninth consecutive distribution increase since the IPO in November of 2014. The distribution and DCF coverage in the first quarter places us on track to achieving our previously provided distribution growth for the year of 28% to 30%, while maintaining DCF coverage of 1.3 times to 1.45 times. As you can see on Slide 6 titled High Growth Midstream Throughput, the distribution growth and significant excess coverage was supported by an increase in throughput in fresh water delivery volumes. Starting the top left portion of the page low pressure gathering volumes were 1.7 Bcf per day in the first quarter, which represents a 27% increase from the prior year and a 9% increase sequentially. Compression volumes during the quarter averaged just over a Bcf a day. A 68% increase compared to the prior year quarter and a 12% increase sequentially. During the first quarter, we placed on line two compressor stations in the Marcellus adding incremental compression capacity of $305 million per day. Compression volumes eclipsed the Bcf day mark for the first time in Antero Midstream history, which is a testament to the growth in operational success in the field we have achieved since the AM IPO. On average, our compression was over 82% utilized throughout the quarter. High pressure gathering volumes were 1.6 Bcf per day at 28% increase over the prior year and then 12% increase sequentially. High pressure volumes averaged 95% of low pressure volumes for the first quarter of 2017. Moving on to the water business, fresh water delivery…

[Operator Instructions] And our first question today comes from Ethan Bellamy from Baird. Please go ahead with your question.

Hi guys, good morning. Distributions from unconsolidated affiliates was $7.7 million in the fourth quarter and zero this quarter, what’s going on in that line and how should we model that line going forward please?

Yes, Ethan that represented the distribution from the Stonewall pipeline that was made in or declared in December. We booked when it’s declared. First part of this year, it was declared in April approximately $6 million is declared. So that will be captured in the second quarter. I think we had guidance around that number for the year about $18 million to $22 million for the year and that that guidance is still good.

Is that going to be lumpy or is it?

We hope it’s quarterly. We think maybe the one month away with that DTE actually acquired that pipeline. I think going forward from now hopefully its one a quarter. So for the remainder of 2017, I would still about $18 million to $22 million still good.

Okay, thanks. I know that competitive from question I ask you guys earlier this year. So thank you. And then just with respect to OpEx in the quarter, it look like that was up $10 million in mostly for the water business, is that a good run rate for the year?

No. The winter of runs a little more just because of winter conditions and dealing with the freeze, freezing in such over the winter with a water. So I think the run rate will trend down from here.

Thanks, Mike. Appreciate it.

Sure

[Operator Instructions] Our next question comes from Holly Stewart from Scotia Howard Weil. Please go ahead with your question.

Good morning. May be just a quick one on the CapEx waiting for the year a little bit heavier in 1Q, but how should we think about that kind of between the next three quarters?

Yes. For 1Q, I think appeared a bit heavy just because there was the JV where the $160 million from the one-time payment for the JV and then buildout of those other plants from the gathering pressure and water side. I think it was pretty indicative of our guidance and the run rate throughout the year.

Okay, and then might just thinking about the compression business you said you are pleased to, I think Marcellus station go online during the quarter. Can you just remind us how to think about that maybe when you start compressing those wells? I mean obviously looks like you’ve got a lot more Marcellus compression on right now versus Utica just trying to think about how model that maybe over time?

Yes. For Marcellus it’s where the growth will occur in 2017, that’s we wait on rover for Utica. And so [indiscernible] approximately $150 million per day of growth increase in gas. It needs to be compress. So I would add a compression station. So following the AR trajectory of its production guidance and attributing the growth to the Marcellus 2017. I think it would be a good indication of when further compression is going to come on.

The Utica wells placed on compression immediately or how do we think about that?

Generally, I mean they can obviously, that pressure produce without compression further first couple of months, but we generally have compression available in those to come online.

Okay. All right, that’s I had. Thanks.

Thank you.

[Operator Instructions] And ladies and gentlemen, we do have an additional question from Poe Fratt from D. A. Davidson. Please go ahead with your question.

Hi, good morning. Could you talk about this opportunities set that you’re looking at in the downstream. And I’m not sure if I heard anything about the potential economics to that Mike, if you wouldn’t mind giving us a little more color on that?

Yes. That is Glen actually. This is a kind of a placeholder numbers not built into any of our forecasts or targets or any of that. But we do see – it’s a telegraphing that we do see further downstream to us investments even further downstream in processing and fractionation. So you might think if it is kind of similar type, structures, situations where we can invest dollars and Antero makes a commitment for barrels, particularly on the NGL side or MCS on the gas side. So it’s really just mean to be a placeholder. And I think you could assume that economics would likely be in the similar range to what we saw in the processing and fractionation at least the mid teens from a rate of return standpoint.

And then Glen as far as timing – sort of any color on those timing of potential – that potential opportunities set?

Nothing terribly specific, but some of these could happen this year, in 2017 that’s certainly a possible and we put that number out there, telegraphing that there are some more near-term type situations like that. So that’s really what we’re thinking over the next few quarters. And hopeful that will come to past that certainly plenty of discussions going on out there with numerous parties, numerous projects downstream.

So what’s the gross number Glen so that potentially structure wise that would beat the growth’s opportunity side.

EBITDA gross among multiple kind of projects, but the actual net to AM, the projects totalled multiple billion of dollars, but yes, net to AM, so interest that’s kind of the neighbourhood they were comfortable with give and take a few hundred million.

Yes, thank you so much.

Thanks a lot.

Thank you.

[Operator Instructions] Our next question comes from David Amoss from Heikkinen Energy. Please go ahead with your question.

Hey, good morning, guys. Thinking about your Slide 2 on the proper usage and the schedule that is kind of depicts there. Would you expect to maybe you had some more of this 2,500 pound per foot, just end of this yearlooks like a all done in or pretty close to first half of the year. And then how would you think about kind of the dynamic in 2018?

Yes. I am not sure. We quantified it yet, but yes, directionally we are reaching up and trying more of the 2,500 pound or so, slightly that will put more in and try those out on a selective basis. There will be more water used. Don’t know how material that would be. We’re not shifting the whole program over the 2,500 its probably going to be 10% or so of the remaining completions that could be bumped up to 2,500. And then we will see what that pretends for the next year and for the future. There is always a point of diminishing returns. We haven’t found it yet. And so we will keep figuring it out with 3,500 locations to go obviously, one wants to figure it out earlier in that life cycle than later.

Thanks. That’s really helpful. Appreciate it.

And ladies and gentlemen, at this time I’m showing no additional questions. I’d like to turn the conference call back over to management for any closing remarks.

Thank you for joining today’s first quarter 2017 investor conference call. If you have any additional questions, please feel free to reach out to us. Thank you.

And ladies and gentlemen, with that we will conclude today’s conference call. We do thank you for attending. You may now disconnect your lines.