Baird Investment Banking Pitch Book
ILLUSTRATIVE IMPLIED VALUE CREATION ANALYSIS (CONT.)
Sum of the parts discounted cash flow analysis
AM Standalone
DCF Analysis
+
AMGP Standalone
DCF Analysis
+
Tax & G&A
Savings (¹)(2)
Total Implied
Equity Value (3)
$5,753 - $7,629
$3,751 - $5,045
$420
Contiteuster, Preliminary Draft
$11,509
Value Creation Summary
(3)
Total implied equity value
Pro forma shares outstanding (4)
Implied value / common share
Current AMGP price
% Increase
Implied pro forma price / common share
x AR Equity exchange ratio
Pro forma equity value /AM common unit
+ $3.00 cash per unit
Total value per unit
Current AM price / common unit
% Increase
Note: Reflects closing prices as of October 5, 2018. Excludes $0.41/common unit special dividend to AM unaffiliated common unitholders.
Tax savings are calculated per the Forecast for 2019-2022, Baird conservatively assumes a 25% annual decline in tax benefit thereafter, ending in 2026. Assumes present value date of
1/1/19, mid-period convention and pro forma AMGP WACC.
(2) G&A savings are discounted to 1/1/19 using mid-period convention, pro forma AMGP WACC and a 0% terminal growth rate.
(3) Total implied equity value midpoint of AM Standalone DCF Analysis + midpoint of AMGP Standalone DCF Analysis + Tax & G&A Savings.
Reflects a 1.618 equity exchange rate; AMGP issues 304.3 million shares to current AM unitholders. Also reflects 17.354 million AMGP shares issued to Series Bholders.
BAIRD
$11,509
507.9
$22.66
$17.51
29.4%
$22.66
1.6023x
$36.31
$3.00
$39.31
$29.74
32.2%
Project Bronco
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