{
  "docId": "019de50f-0096-705c-9682-a891ae8ca099",
  "docSlug": "4ee354470b615d587f65effaca15faf0",
  "documentTitle": "Baird | Investment Banking Pitch Book | 35 slides",
  "authorId": "baird",
  "authorName": "Baird",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "investment_bank",
  "sourceTypeLabel": "Investment bank",
  "presentationDate": "2018-04-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 12,
  "pageCount": 35,
  "prevPage": 11,
  "nextPage": 13,
  "slideType": "initiative_list",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 6,
  "notes": "The slide contrasts internal strategic pillars with external analyst quotes regarding execution risk.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de50f-0096-705c-9682-a891ae8ca099/12",
  "deckHref": "/decks/019de50f-0096-705c-9682-a891ae8ca099",
  "deckJsonHref": "/decks/019de50f-0096-705c-9682-a891ae8ca099.json",
  "deckAnchorHref": "/decks/019de50f-0096-705c-9682-a891ae8ca099#slide-12",
  "components": [
    {
      "bbox": {
        "h": 0.05,
        "w": 0.46,
        "x": 0.03,
        "y": 0.56
      },
      "kind": "list",
      "text": "FCF Generation: $1.6 Bn cumulative free cash flow growth through 2022",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "75a2cbe0-16d3-4512-b592-c836a7f36dff",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.46,
        "x": 0.03,
        "y": 0.28
      },
      "kind": "list",
      "text": "Capital Efficiency: $2.9 billion of drilling capex reduction over next 5 years with production growth targets unchanged. Inventory of 3,300 laterals >10,000' drive efficiencies. 18% production CAGR 2018 – 2022. Grow into FT portfolio by 2020. Growing NGL exposure.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "acd605b9-2f22-4ad3-9051-e5ecd5896b10",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.46,
        "x": 0.03,
        "y": 0.63
      },
      "kind": "list",
      "text": "Capital Discipline: Reduce leverage to < 2x. Debt-adjusted cash flow and production growth per share in the 22 – 23% range (AR management figure)",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "b29dd261-7773-412a-903b-edb3c1c5359b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.46,
        "x": 0.03,
        "y": 0.78
      },
      "kind": "list",
      "text": "Assess Value Acceleration Initiatives: Return of Capital (repay debt, stock buy-back, dividends). Conflict of interest mitigation. Segment level reporting to provide clarity on E&P ops",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "fa59a82d-f6d3-4117-827a-2ef2f3d5ef12",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.94,
        "x": 0.03,
        "y": 0.13
      },
      "kind": "paragraph",
      "text": "The market has been receptive to AR's operational and strategic initiatives to improve its share price (as evidenced by its recent outperformance); however, execution risk remains",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "079bc7e3-985f-46c5-b570-29fda11107ae",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.46,
        "x": 0.51,
        "y": 0.28
      },
      "kind": "quote",
      "text": "We believe the focus should now shift to execution as the long term outlook has already baked in substantial future efficiency gains and activity high-grading which AR now has to deliver. – Credit Suisse",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2ca9acbc-76ba-448b-aed0-10b27417a67b",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.46,
        "x": 0.51,
        "y": 0.53
      },
      "kind": "quote",
      "text": "While increasing lateral length is a tangible efficiency, and concurrent operations should improve cycle times, it remains unclear how AR will be able to keep D&C spend flat through 2020 while increasing completed lateral feet by 12% in 2019 and 25% in 2020 compared to the 2018 program.– Jefferies",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "31fb698a-d9a3-46dd-92b6-e2f43f178177",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.46,
        "x": 0.51,
        "y": 0.67
      },
      "kind": "quote",
      "text": "Operationally and financially, we would agree that AR is reaching the next stage of its life cycle, and at an opportune time....At the upstream level, the E&P entity is reaching a level of scale, leverage, and capital efficiency (forward FCF generation and growth) matched by few US independents\" – Evercore ISI",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "46fa094f-e3a9-4733-9039-dcf7ed31c171",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.11,
        "w": 0.46,
        "x": 0.51,
        "y": 0.39
      },
      "kind": "quote",
      "text": "...five year plan that includes a double-digit production CAGR... should generate solid returns while throwing off $1.6 billion in free cash flow at the strip ... a solid profile that with execution should drive multiple expansion over the coming years. – Wells Fargo",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "add6ab30-e755-479c-adac-2fdf90588d01",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.46,
        "x": 0.51,
        "y": 0.81
      },
      "kind": "quote",
      "text": "Given the recent push for capital discipline and improved corporate returns, we think the market will view Antero's newfound capital flexibility in the coming years favorably. – Raymond James",
      "attrs": null,
      "subkind": "testimonial",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "ff9d58f0-05d0-4421-878f-009074f4be03",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.65,
        "x": 0.03,
        "y": 0.06
      },
      "kind": "title",
      "text": "AR IDENTIFIED STEPS TO IMPROVE VALUATION",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c433a11c-e91d-438d-8cf1-fd1edeb1166d",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 14,
      "from": 10,
      "beatId": "f05c86ad-2eec-4cd0-820c-a75daf9db35f",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The deck provides financial analysis and KPI dashboards to support the argument",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 14,
      "from": 10,
      "name": "Zoom In",
      "slug": "06-zoom-in",
      "bestFor": "Technical deep-dives, case studies, detailed analysis",
      "matchId": "76e7041c-6d96-412f-b00d-bc0ce42765fb",
      "evidence": "The deck provides a detailed analysis of AR's performance metrics and benchmarking",
      "position": 0,
      "objective": "What are the key drivers of AR share performance?",
      "structure": "The Big Picture -> Key Area of Focus -> Specific Detail -> Implication",
      "confidence": 0.7,
      "description": "Start broad, then progressively focus on specific details that prove your point"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}