Baird Investment Banking Pitch Book
AR'S ISOLATED E&P TRADING MULTIPLES VS. PEERS
AR STAND-ALONE E&P ENTERPRISE VALUE
($ in billions)
$11.2
AR
Consolidated
Enterprise
Value
($2.6)
Market Value
of AM Units
(tax-effected) (¹)
($1.2)
AM
Net Debt
Source: SEC filings and S&P Capital as of March 16, 2018.
(1)
Value of AM units, tax effected at 20%
$7.9
$3.6
(Net
Debt)
$4.4
(Equity)
AR Pure
Enterprise
Value
Pro forma COG's $765 million sale of Eagle Ford assets announced in December 2017.
Company guidance and Wall Street Research estimates.
(4)
(5)
IMPLIED E&P TRADING STATISTICS
($ in millions, except per share and acreage data)
EV/2018 E&P EBITDA
EV / Mcfe/d (4)
EV/ Proved Mcfe
EV / PDP Mcfe
EV / PV-10%
No. of Remaining Locations
2018-2021 Prod. Growth
Net Debt / LTM EBITDA
CFPS Growth 2018 - 2021
Dividend Yield
(5)
(6)
Antero
5.0x
$2,947
$0.39
$0.80
0.9x
3,295
16.3%
3.2x
17.4%
NA
(2)
Cabot Oil & Gas
$6,634
$1.14
$1.81
3,000
15.2%
1.0x
23.3%
1.0%
Confidential
CNX EQT
Baird utilized the following conversion ratios for gas and NGLS, respectively: 17.5 to 1 and 2.0 to 1.
Wall Street Research estimates.
Based on consolidated projected results per Wall Street estimates.
6.2x
$3,489
$0.61
$1.04
1.5x
4,517
6.6%
3.0x
17.9%
NA
BAIRD
Project Bronco
5.7x
$4,025
$0.59
$1.10
1.5x
3,190
10.6%
2.8x
27.3%
0.2%
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