Baird Investment Banking Pitch Book
IMPACT TO AR AT VARIOUS EXCHANGE RATIOS
$400
Total Cash Flow to AR from Midstream Ownership
($ in millions)
$500
$300
$200
$100
$0
219
204 209 213 218 222
2019
$4,000
$3,000
$2,000
Status Quo
$1,000
$0
1.6x (Proposal)
282 280 287 294 300 305
$2,944
2020
1.7x
$3,128
338 346 354 362 370 377
2021
Value of AR's Midstream Holdings (Post-transaction, assuming no change in "AMC" share price) (¹)
($ in millions)
1.8x
$3,312
1.9x
$3,496
Trellminary Draft
2.0x
405 418 433 443 453 461
Source: Antero management projections.
Note: Assumes AMGP purchases 100% of AM public units with 100% equity. Also assumes that AMGP issues 18.5 million shares in exchange for 100% of the Series B units.
(1) Assumes AMGP's closing share price of $18.61 as of June 28, 2018, multiplied by the number of shares received in the transaction.
Current holdings x current AM unit price as of June 28, 2018.
2022
$3,680
SA
1.6x
1.7x
1.8x
1.9x
2.0x
Current Value:
$2,939 mm (2)
BAIRD
Total
Cash Flow
$1,244
1,248
1,284
1,313
1,340
1,365
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