Tudor, Pickering, Holt & Co Investment Banking
PF AMGP After Tax Cash Flow
6% Terminal Yield Value | AMGP Proposal | Unadjusted Exchange Ratio
At 1.679x Exchange Ratio
Tax Basis at YE 2017
Taxes Incurred in Merger (Assumed Paid in 2020)
Cash Received from Offer
Stepped Up Basis Upon Close
XR Adj. PF AMGP BT Dist. per Share
% RoC
% QD
Return of Capital
Qualified Dividends
Project Tax Liability
XR Adj. PF AMGP AT Dist. per Share
2H 2018E
Tax on Gain
Terminal Yield
Sale at 12/31/22 Terminal FV per XR Adj. PF AMGP Share
Less: Basis on Conversion
Plus: Dividends Treated as Return of Capital
Total Net Cash Flow
Total Cash In Flow
Total Cash Out Flow Tax on
Tax Rate
29.0%
Sale at 12/31/22 Terminal FV per XR Adj. PF AMGP Share
Less: Taxes on Gain
Net Proceeds
$0.85
100.0%
0.0%
$1.12
$0.00
$0.00
$0.85
Dividends
Total Cash Out Flow Taxes in
Merger
Discount Factor
Implied Present Value per Share
XR Adj. PF AMGP Implied Present Value per Share
Source: Management projections and FactSet as of 8/30/2018.
(1) Inclusive of Federal & State capital gains taxes.
$0.85
$0.85
$0.00
0.976
$0.83
2019E
$23.27
0.00
0.00
$31.08
$2.23
100.0%
0.0%
$2.21
$0.00
$0.00
$2.23
$2.23
$2.23
$0.00
$0.00
0.909
$2.03
2020E
$2.92
80.3%
19.7%
$2.35
$0.58
($0.14)
$2.79
$2.65
$2.79
($0.14)
0.826
$2.19
2021E
$3.52
67.7%
32.3%
$2.39
$1.14
($0.27)
$3.25
$2.98
$3.25
($0.27)
0.751
$2.24
2022E
$4.23
48.6%
51.4%
$2.06
$2.18
($0.52)
$3.71
$3.20
$3.71
($0.52)
0.683
$2.18
CONFIDENTIAL DRAFT
SUBJECT TO CHANGE
.
Terminal
AM current price of
$29.74
Cash consideration
used to pay all
taxes; any
additional cash
available assumed
to purchase
secondary shares
$70.53
($31.08)
$10.12
$49.57
$14.37
$70.53
($14.37)
$56.16
$56.16
$70.53
($14.37)
0.651
$36.56
$46.03
TUDORPICKERING
HOLT&COI:
SNEAGY NYESTMENT &
MERCHANT BANKING
57View entire presentation