Baird Investment Banking Pitch Book
2 AMGP DISCOUNTED DISTRIBUTION ANALYSIS
($ in millions, except per share data)
Distribution Per AMGP Common Share
Present Value Calculation
Cost of Equity (1)
Terminal Yield (2)
Terminal Value (3)
Periods to Discount
Discounted Distributions
Discounted Terminal Value
Implied AMGP Common Share Price
Cost of
Equity
16.50%
(1)
(2)
(3)
15.80%
14.50%
7.0%
$18.39
15.8%
6.5%
AMGP Modified Coverage Case
Terminal Yield
$18.81
$19.65
Three Months
Ending,
12/31/18E
Source: Antero management. Assumes present value date as of October 5, 2018.
Discount rate based on estimated cost of equity for AMGP (see previous page).
Based on analysis of public comparables (see page 61).
Based on 2022E distribution of $2.222.
6.5%
$19.50
$19.95
$20.84
$0.164
0.12
$4.45
18.36
$22.80
6.0%
$20.79
$21.28
$22.23
2019E
$0.888
0.74
Distribution Estimates
2021E
2020E
Cost of
Equity
16.50%
15.80%
14.50%
$1.340
1.74
$1.742
7.0%
$21.00
$21.49
$22.45
2.74
Confidential
AMGP Management Case
Terminal Yield
6.5%
$22.28
2022E
$22.80
$23.82
$2.222
3.74
6.0%
$23.77
$24.33
$25.43
BAIRD
Terminal
Value
$34
4.24
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