Quarterly report pursuant to Section 13 or 15(d)

Ownership Structure

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Ownership Structure
9 Months Ended
Sep. 30, 2013
Ownership Structure  
Ownership Structure

(5)                     Ownership Structure

 

At December 31, 2012 and September 30, 2013, the outstanding units in Antero Resources LLC are summarized as follows:

 

 

 

Units

 

 

 

Authorized

 

 

 

and issued

 

Class I units

 

107,281,058

 

Class A and B units

 

40,007,463

 

Class A and B profits units

 

19,726,873

 

 

 

167,015,394

 

 

None of the three classes of outstanding units are entitled to current cash distributions or are convertible into indebtedness. The Company has no obligation to repurchase these units at the election of the unitholders.

 

In the event of a distribution from Antero Resources LLC, amounts available for distribution are distributed according to a formula set forth in the Company’s limited liability company agreement that takes into account the relative priority of the various classes of units outstanding. In the event of a distribution due to the disposition of an individual Antero Entity, a portion of the proceeds is allocated to the employees of the Company based on a requisite return financial threshold. In general, distributions are made first to holders of the Class I units until they have received their investment amount and an 8% special allocation and then, as a group, to the holders of all classes of units together. The Class I units participate on a pro rata basis with the other classes of units in funds available for distributions in excess of the Class I unit investment and special allocation amounts.

 

At December 31, 2012 and September 30, 2013, the Class I units had an aggregate liquidation priority, including the special allocation of 8% per annum, of $2.191 billion and $2.325 billion, respectively.