Baird Investment Banking Pitch Book

KEY CONSIDERATIONS IN "PRICING" THE EARN-OUT ACCELERATION AR Perspective AM Perspective ■ Probability of achieving earn-out volume thresholds based on AR drilling plan Confidential Ability to control water volume usage to meet thresholds At what price is AR better off receiving ($250 - X) today or waiting to receive the full $250 later, relative to the risk profile of the asset? In addition to taking a discount, what other concessions could AR be asked to make? Can AR redeploy the capital at an attractive rate of return relative to the discount? Probability of achieving earn-out volume thresholds based on AR drilling plan AR's ability to control water volume usage to meet thresholds At what price is AM better off paying ($250-X) today or waiting to repay the full $250 later, relative to the risk profile of this debt-like liability? In addition to receiving a discount, what other concessions will AM request? - What is AM's opportunity cost of capital, being mindful the high probability the full earn-out payment becomes due? Project Bronco BAIRD Page 6

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