Annual report pursuant to Section 13 and 15(d)

Partnership Equity and Distributions

v3.6.0.2
Partnership Equity and Distributions
12 Months Ended
Dec. 31, 2016
Partnership Equity and Distributions  
Partnership Equity and Distributions

(7)  Partnership Equity and Distributions

 

Our Minimum Quarterly Distribution

 

Our 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.

 

If cash distributions to our unitholders exceed $0.1955 per common unit in any quarter, our unitholders and the holders of our incentive distribution rights (“IDRs”), will receive distributions according to the following percentage allocations:

 

 

 

 

 

 

 

 

 

Marginal Percentage

 

 

 

Interest in

 

 

 

Distributions

 

Total Quarterly Distribution

 

 

 

Holders of

 

Target Amount

    

Unitholders

    

IDRs

 

above $0.1955 up to $0.2125

    

85

%  

15

%

above $0.2125 up to $0.2550

 

75

%  

25

%

above $0.2550

 

50

%  

50

%

 

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, our general partner controls the holder of the IDRs and may in the future own common units or other equity interests in us and will be entitled to receive distributions on any such interests.

 

Subordinated Units

 

Antero Resources was issued all of our subordinated units in connection with our IPO. The principal difference between our common units and subordinated units was that, for any quarter during the subordination period, holders of the subordinated units were not entitled to receive any distribution from operating surplus until the common units had received the minimum quarterly distribution from operating surplus for such quarter plus any arrearages in the payment of the minimum quarterly distribution from prior quarters. Subordinated units did not accrue arrearages. Under the terms of our partnership agreement, the subordination period was to end on the first business day after distributions from operating surplus equaled or exceeded $1.02 per unit (150% of the annualized minimum quarterly distribution) on all outstanding common units and subordinated units for a four-quarter period immediately preceding that date

 

On January 11, 2017, the board of directors of our general partner declared a cash distribution of $0.28 per unit for the quarter ended December 31, 2016. The distribution was paid on February 8, 2017 to unitholders of record as of February 1, 2017. Upon payment of this distribution, 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 thereafter will 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 Partnership or the total units outstanding

 

The following table details all distributions paid or declared as of the date of this filing (in thousands, except per unit data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions

 

 

 

 

 

 

 

 

 

Limited Partners

 

 

 

 

 

 

 

 

 

Quarter
and
Year

    

Record Date

    

Distribution Date

    

Common
unitholders

    

Subordinated
unitholders

    

General
partner
(IDRs)

    

Total

  

Distributions
per limited
partner unit

Q4 2014

 

February 13, 2015

 

February 27, 2015

 

$

7,161

 

$

7,161

 

$

 -

 

$

14,322

 

$

0.0943

Q1 2015

 

May 13, 2015

 

May 27, 2015

 

$

13,669

 

$

13,669

 

$

 -

 

$

27,338

 

$

0.1800

Q2 2015

 

August 13, 2015

 

August 27, 2015

 

$

14,429

 

$

14,429

 

$

 -

 

$

28,858

 

$

0.1900

Q3 2015

 

November 11, 2015

 

November 30, 2015

 

$

20,470

 

$

15,568

 

$

295

 

$

36,333

 

$

0.2050

*

 

November 12, 2015

 

November 20, 2015

 

$

397

 

$

 -

 

$

 -

 

$

397

 

$

*

 

 

Total 2015

 

 

 

$

56,126

 

$

50,827

 

$

295

 

$

107,248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2015

 

February 15, 2016

 

February 29, 2016

 

$

22,048

 

$

16,708

 

$

969

 

$

39,725

 

$

0.2200

Q1 2016

 

May 11, 2016

 

May 25, 2016

 

$

23,556

 

$

17,846

 

$

1,850

 

$

43,252

 

$

0.2350

Q2 2016

 

August 10, 2016

 

August 24, 2016

 

$

25,059

 

$

18,985

 

$

2,731

 

$

46,775

 

$

0.2500

Q3 2016

 

November 10, 2016

 

November 24, 2016

 

$

26,901

 

$

20,124

 

$

4,820

 

$

51,845

 

$

0.2650

*

 

November 12, 2016

 

November 18, 2016

 

$

849

 

$

 -

 

$

 -

 

$

849

 

$

*

 

 

Total 2016

 

 

 

$

98,413

 

$

73,663

 

$

10,370

 

$

182,446

 

 

 


*Distribution equivalent rights on units that vested related to limited partner common units.

 

See Note 14 –  Subsequent Events for information on the Q4 2016 distribution.