Baird Investment Banking Pitch Book
2 SELECTED PRECEDENT GP/IDR TRANSACTIONS
($ in millions)
Announced
Date
Acquiror
01/22/18 Spectra Energy Partners LP
12/15/17 MPLX LP
(1)
(2)
(3)
(4)
10/19/17 Holly Energy Partners, LP
08/14/17 Andeavor Logistics
SEP GP
MPLX GP
HEP GP LLC
Andeavor GP
Target
01/09/17 Williams Companies, Inc.
07/11/16 Plains All American Pipeline, LP.
12/28/10 Genesis Energy, LP.
Genesis Energy, LLC
09/21/10 Penn Virginia Resource Partners, L.P. Penn Virginia GP Holdings, LP.
09/07/10 Enterprise Products Partners, L.P.
08/09/10 Inergy, L.P.
06/11/10 Buckeye Partners LP
Williams Companies
Plains AAP, L.P.
Enterprise GP Holdings LP.
Inergy Holdings, L.P.
Buckeye GP Holdings, LP
Source: SEC filings, Bloomberg and Wall Street research.
Note: Analysis reflects selected GP acquisitions announced and closed since 2010.
Excludes the value of limited partner units.
IDR
Tier at
Acquisition
50.0%
50.0%
50.0%
50.0%
50.0%
50.0%
51.0%
50.0%
25.0%
48.7%
45.0%
Overall Median
GP Only
Value (¹)
7,347
10,434
1,250
3,768
11,173
7,300
690
466
7,199
1,922
1,156
>25% Growth Range
GP Only Value / GP Cash Flow (2)
NTM Normalized @
(3)
1.1x Coverage
LQA
NTM
Unadjusted Unadjusted
18.8x
28.3x
16.7x
17.2x
11.9x
11.4x
44.0x
17.7x
27.6x
26.5
22.8x
18.8x
17.1x
24.0x
15.3x1
15.2x1
11.9x
11.4x
37.1x1
15 5x
26 5x
22.6x
22.1x1
17.1x
Preliminar Draft
Based on estimated NTM MLP distribution at the time of announcement per Wall Street consensus estimates Excludes distributions from limited partner units.
Represents GP/IDR cash flow as adjusted by Baird to reflect 1.1x distributable cash flow coverage at the MLP.
3-year CAGR based on LQA-CY+3.
17.1x
14.8x
15.9x
15.7x
14.4x
17.1x
I 33.5x
19.0x1
124.9x1
I
25.5xI
14.9x
17.1x
24.9x-33.5x
MLP Data
3-Year Est.
LQA DCF
Distr. CAGR (4) Coverage
5.2%
7.8%
4.7%
6.5%
0.0%
0.0%
11.0%
2.1%
6.5%
NA
3.9%
1.2x
1.3x
1.0x
1.2x
1.1x
0.7x
1.5x
1.0x
1.2x
0.9x
1.1x
BAIRD
GP/IDR 3-Year
Est. Distr.
CAGR (4)
11%
I
18%
10%
12%
0%
0%
| 39% I
7%
25% I
25% I
389
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