Baird Investment Banking Pitch Book
PRO FORMA IMPACT AT 1.65x EXCHANGE RATIO
($ in millions, unless otherwise noted)
DCF per AM LP Unit
$5.00
$4.00
$3.00
$2.00
$1.00
$0.00
($0.03)
(0.9%)
$500
$400
$300
$200
$100
$0
$2.75 $2.72
($13)
(5.9%)
Accretion/(Dilution)
$219 $206
$0.09
2.7%
2019E
2020E
Total Cash to AR Shareholders
Total Cash Flow from Midstream Ownership
$3.24 $3.33
$0.17
4.6%
$3.75 $3.93
$282 $283
2021E
Accretion/ (Dilution)
$1
0.4%
$11
3.2%
$338 $349
Status Quo
$0.25
5.8%
$4.29
$4.54
2022E
$21
5.3%
$405 $427
$5.00
$4.00
1.65x Exchange Ratio
Distribution per AM LP Unit (at status quo coverage)
Accretion / (Dilution)
$0.01
0.4%
$3.00
$2.00
$1.00
$0.00
$3,150
$3,100
$3,050
($0.13)
(5.9%)
$3,000
$2.21 $2.08
Preliminar Draft
$2.85 $2.86
2019E
2020E
AR's Implied Value of Midstream Holdings
Assuming no change in unit/share price
$3,200
$3,128
Status Quo
$0.11
3.2%
2019E
2020E
2021E
2022E
Source: Antero management projections
Note: Assumes AMGP purchases 100% of AM public units (188.1 million on a fully diluted basis) with 100% equity at a 1.650x exchange ratio; AMGP issues 310.5 million shares to current AM
unitholders. Also assumes that AMGP issues 18.5 million shares in exchange for 100% of the Series B units.
$3.42 $3.53
2021E
$4.10
$3,139
BAIRD
$0.22
5.3%
Pro Forma
$4.32
2022E
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