Baird Investment Banking Pitch Book
Present Value
of Series B
Distributions
SERIES B VALUATION - STATUS QUO (CONT.)
Series B would have less value if AM were to cover its distributions at no less than 1.2x in future years
Terminal
Value
+
Present Value
of Conversion
($ in millions)
Distributions
Source: Antero management projections.
Coverage Ratio at AM
Total Distributions from AM IDRs
Less: Priority Series A Cash Flow ($7.5 mm/q)
Remaining Cash Flow Available
Series B Profits Interest
Series B Profits Interest
A PV-15%
Terminal Value
2022E AMGP Distributions
+ Assumed Terminal Yield
Implied AMGP Equity Value
Less: Benchmark
Series B Pool
Terminal Value of Series B Interest (5.92%)
B PV-15%
Total PV-15% (A + B)
Terminal Yield
2%
3%
4%
5%
6%
2019E
10%
$674
$445
$330
$261
$215
1.31x
$236
(30)
$206
5.92%
$12
Present Value Sensitivity
Discount Rate
15%
$557
$369
$275
$218
$181
20%
$463
$308
$231
$184
$153
2020E
1.20x
$341
(30)
meliminary Prart
$311
5.92%
$18
2021E
1.20x
$423
(30)
$393
5.92%
$23
2022E
1.20x
$509
(30)
BAIRD
$479
5.92%
$28
$56
$357
4%
$8,929
(2,000)
$6,929
$410
$219
$275
Project Bronco | Page 18.View entire presentation