Baird Investment Banking Pitch Book
RELATIVE CONTRIBUTION ANALYSIS -
USING MODIFIED COVERAGE CASES
Relative contribution based on forecasted distributions received in the status quo scenario
4
IMPLIED AM / AMGP EXCHANGE RATIO
($ in millions)
Ownership Entity
AR-Held AM Common Units
AM Public Holders
AMGP Common Shares
Series B Units
Total
2019E
(2)
(3)
$216
(4)
193
162
12
$583
Distribution Forecasts
2020E 2021E 2022E
$266 $310 $364
237
228
17
277
287
22
325
359
28
Implied Exchange Ratio -AR 2.512x 2.194x 2.034x 1.911x
Terminal
Value (1)
$4,362
3,893
5,519
438
Present Value
1.488x
PV-10% PV-15% PV-20%
$3,832 $3,243 $2,769
3,421 2,895 2,471
4,501 3,786
356
$749 $896 $1,076 $14,212 $12,110 $10,222
299
3,212
253
$8,705
1.603x 1.613x 1.623x
1
% Ownership Implied
PV-10%
31.6%
28.2%
37.2%
2.9%
100.0%
1.603x
PV-15%
31.7%
28.3%
37.0%
2.9%
100.0%
Confidentiat
1.613x
PV-20%
31.8%
28.4%
36.9%
2.9%!
100.0%
1
1.623x
Source: Management projections.
(1) Utilizes terminal yield values defined in prior sections of this presentation. Series B terminal value equal to the AMGP terminal value.
AMGP includes only Series A cash flow.
Represents implied ownership percentages all merger consideration were in the form of equity in AMGP Corp (ie. accounts for cash consideration being issued to AR-held AM Common Units and
AM Public Holders
All-in implied exchange ratio, including cash. Based on 20-day VWAP as of October 5, 2018
VS.
Proposal at
Equity
Exchange
31.2%
28.7%
36.7%
3.4%
100.0%
BAIRD
1.602x
All-In
(1)
32.4%
30.1%
34.3%
3.2%
100.0%
(4)
1.776x
Project Bronco | Page 75View entire presentation