Baird Investment Banking Pitch Book
2) AMGP SELECTED PUBLIC COMPARABLES ANALYSIS
($ in millions, except per unit values)
Partnership
Energy Transfer Equity, LP. (3)
EnLink Midstream, LLC
EQT GP Holdings LP
Western Gas Equity Partners LP
Antero Midstream GP LP (4)
Antero Midstream GP LP (5)
Equity
10/05/18 Market
Price
Value
(2)
(3)
$17.50
17.16
21.28
32.46
Low
Median
High
$20,269
3,108
6,436
7,107
$3,108
6,772
20,269
Market Stats
Implied
Current
Firm Annualized Distr.
Value GP (1) LP (1) GP (1) LP (1)
$26,740 $1.22
3,192 1.07
6,436 1.22
7,133 2.33
$3,192 $1.07
6,784 1.22
26,740 2.33
$2.26
7.0%
1.56 6.2%
Current Yield
3.80 7.2%
10.1%
8.4%
4.36 5.8% 8.3%
8.3%
$1.56 5.8% 8.3%
3.03 6.6% 8.3%
4.36 7.2% 10.1%
$17.51 $3,261 $3,255 $0.50 $1.66 2.9% 5.6%
$17.51 $3,261 $3,255 $0.50 $1.66 2.9% 5.6%
Differential
(Bps)
(4)
(5) Implied Firm Value based on June 30, 2018 10-Q. Cash flow and distribution metrics based on Antero management forecast.
Yield (2)
2018E 2019E
(314)
(213) 6.3% 6.7%
(253) 5.7%
(112)
7.0% 7.3%
7.3%
7.2% 8.1%
(314) 5.7% 6.7%
(233) 6.6% 7.3%
(112) 7.2% 8.1%
(273) 3.0% 5.0%
Source: Antero management, Company and Partnership filings, S&P Capital IQ and Wall Street Research as of October 5, 2018.
Note: Market data are pro forma for any capital markets and M&A transactions announced or completed since the most recent filings.
(1) Values in the GP columns represent those for the public general partners. Values in the MLP column represent those for the public "operating" MLP.
Wall Street consensus estimates.
No pro forma adjustments for the announced ETE/ETP merger.
Implied Firm Value based on June 30, 2018 10-Q. Cash flow and distribution metrics based on Wall Street consensus estimates.
Valuation Stats
Firm Value /
EBITDA (2)
2019E
2018E
13.6x
13.7x
17.7x
13.9x
13.6x
13.8x
17.7x
24.5×
(273) 3.1% 5.1% 24.3x
13.3x
13.0x
13.4x
12.6x
12.6x
13.2x
13.4x
14.9x
Confidential
14.7x
Price/CAFD (2)
2019E
2018E
12.6x
13.3x
17.7x
13.8x
12.6x
13.6x
17.7x
32.7x
32.5x
12.4x
BAIRD
13.4x
Growth
2018E-2021E
Distribution
Growth CAGR (2)
GP (1) LP (1)
7.9%
12.6x 8.6%
18.3%
3.0%
0.7%
10.6%
12.6x 9.8% 5.3%
12.4x 7.9% 0.7%
12.6x 9.2% 4.1%
13.4x 18.3% 10.6%
19.9x 44.5% 23.1%
19.7x 47.8% 25.9%
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