Baird Investment Banking Pitch Book slide image

Baird Investment Banking Pitch Book

RELATIVE CONTRIBUTION ANALYSIS APPROACH Relative contribution based on proportionate cash flows IMPLIED AM / AMGP EXCHANGE RATIO (S in million, except per share data) Distributions to AM Common Units Terminal Yield (2) Distributions to AMGP Common Shares Terminal Yield (1) Distributions to Series B Units Terminal Yield (2) Total Implied AM/ AMGP Exchange Ratio (3) Pro Forma Share Ownership (mm shares) AM Unitholder AMGP Shareholders Series B Units Key Observations 2019E $414 165 12 $591 2.491x Source: management projections. (1) See Supplemental Valuation materials for terminal yield assumptions. (2) Assumed to be equal to AMGP common shares terminal yield. AMGP includes only Series A cash flow. 2020E $533 249 19 $802 2.129x Distributions 2021E $640 324 26 $990 1.964x 2022E $767 414 33 $1,214 1.846x Terminal Value $10,230 7.5% 8,275 5.0% 662 5.0% $19,167 1.231x Preliminary Graft PV 10% $8,898 6,578 I 524 $16,000 1.347x I Relative Contribution vs. Implied by 1 I 55.6% 41.1% 3.3% 100.0% 1.347x Implied by Relative Contribution 251.9 186.2 14.8 BAIRD Proposal 59.4% I 36.9%1 I 3.7% 100.0% 1.600x 1 Proposal 299.3 I 186.2 18.5 I ■ In the near term, AM contributes proportionately more to total distributions than AMGP, implying exchange ratios above 2.00x However, as AMGP grows into its IDR tiers, the implied exchange ratio steadily declines and ultimately falls below the proposed ratio of 1.600x in the terminal year Project Bronco | Page 11
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