Bank of America Investment Banking Pitch Book
Illustrative Valuation Analysis
Financial Model Assumptions
1
AMID
Management
Financial
Model
11/28/2018
AMID
Management
Financial
Model
3/1/2019
3/1/2019
Adjusted Case
·
-
-
■
■
▪
■
-
■
Gas G&P Segment - Reduction in base EBITDA, from 2018 to 2023 driven
by the sales of Lavaca and Chatom
Liquids Pipeline Segment - EBITDA decline throughout projection period
driven by the sale of two key assets in 2019 (Bakken and Silver Dollar
pipelines)
Natural Gas Transmission Segment - Modest growth after 2019 due to
several small growth projects totaling $10MM in capex
Offshore Pipelines Segment- EBITDA is heavily impacted by rate reduction
at the Delta House floating production system
Terminalling Segment - Refined products and Cushing asset sales
complete exit from Terminalling segment
Growth projects (financed with proceeds of asset sales) include:
■
■
Baton Rouge in 2019 (EBITDA: $2.5MM/year; Capex: $18.0MM)
Longview Frac Expansion in 2019 (EBITDA: $11.6MM/year; Capex:
$57.0MM)
Includes estimated annualized cost savings of $5.6MM per year
No cash distributions on common units and preferred units after Q3 2018:
preferred units are paid-in-kind
Convert Series A and Series C preferred equity to common in Q4 2023
Includes 40, 2018 actual results
Offshore pipeline segment projections adjusted to account for newly
discovered GoM reserves
Changes in Growth Projects:
No Baton Rouge project
Started with the 3/1/2019 model and made the following adjustments:
No preferred equity conversion during forecast period
■
Projections per corporate models provided by AMID management
Preferred distributions paid in kind. For illustrative purposes, we have assumed DCF is burdened for cash distribution amount.
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(SMM)
Adj. EBITDA
DCF (Net of Pref. Dist.)
Total LP Distributions
Total Leverage
H
-
■
L
·
Acquisition (financed with preferred equity):
Jan. 2019: Pascagoula Gas Plant (PGP) - $36.3MM
Divestitures:
■
■
■
H
■
■
■
(SMM)
Adj. EBITDA
DCF (Net of Pref. Dist.)
Tota! LP Distributions
Total Leverage
■
Completed: Aug. 2018: Marine Terminals - $210.0MM
Announced:
2018E 2019E
2020E
2021E 2022E
2023E
$179.2 $189.1 $163.4 $146.5 $135.2 $120.2
55.8
Changes in Divestitures:
72.1
22.3
5.94x 3.66x 3.75% 4.10x 4.36x
57.7
38.2
43.6
22.5
78.2
Strictly Confidential
Bank of America
Merrill Lynch
(SMM)
Adj. EBITDA
DCF (Net of Pref. Dist.)
Total LP Distributions
Total Leverage
Dec. 2018: Refined Product Terminals - $125MM
Jan. 2019: Lavaca - $150MM
Feb. 2019: Chatom, Bazor Ridge & Glade Crossing -
$10MM, Bakken - $50MM
Sep. 2019: Silver Dollar - $150MM
Dec. 2019: Cushing - $30MM
2018E 2019E 2020E 2021E ZOZZE 2023E
$184.0 $178.6
$142.1 $122.6 $112.1 $97.4
54.6
9.1
60.8
32.7
5.76x 4.13x 3.45x 3.48x 3.79x 4.36x
17.0
0.0
57.2
60.8
32.7
5.76x
26.4
22.5
4.99x
33.5
Sale of Natural Gas Transportation business in November 2019
for $200MM
April 2019: Chatom, Bazor Ridge & Glade Crossing - $5MM,
Bakken - $50MM
June 2019: Silver Dollar-$125MM
Sep. 2019: Lavaca - $125MM
20180 2019E 2020€ 2021E 2022E
$184.0
$178.6 $142.1
54.6
0.0
4.13x 3.45%
57.2
0.0
2023E
(5.9)
$132.6 $112.1 $97.4
33.5 17.0
0.0
3.48 3.79x
0.0
4.36x
ARCLIGHTView entire presentation