Evercore Investment Banking Pitch Book
Unitholder Tax Analysis
Illustrative SIRE Unitholder Tax Analysis at $24.00 / unit
On November 17, 2022, Deloitte LLP ("Deloitte") provided the SIRE unaffiliated unitholders tax liability by unit acquisition date information,
which included the following:
Year
2013
2014
2015
2016
2017
2018
2019
2020
2021
Total /
Wtd. Avg.
Adjusted Basis - Represents the weighted average price acquired, plus cumulative income, less cumulative distributions and DD&A
from the acquisition date to December 2021
$751 Gain - Recharacterization of gain or loss on the sale of a partnership interest from capital to ordinary on §751 property owned by
the partnership
Net Ordinary Gain / (Loss) per Unit - Calculated as §751 Gain less Passive Loss Carryover assuming Passive Loss Carryover
amounts are 100% available to offset Ordinary Gains
Net Capital Gain / (Loss) per Unit - Calculated as Total Gain / (Loss) per Unit less §751 Gain
Estimated Taxes Calculated based on the Net Ordinary Gain / (Loss) per Unit assuming a 37.0% tax rate and the Net Capital Gain /
(Loss) per Unit assuming a 20.0% tax rate
Source: Deloitte
EVERCORE
SIRE Units
623,245
212,924
181,904
341,548
338,227
194,136
669,299
1,416,599
1,725,847
5,703,728
% of Total
Units
10.9%
3.7%
3.2%
6.0%
5.9%
3.4%
11.7%
24.8%
30.3%
100.0%
Average
Purchase
Price
$18.63
21.88
21.66
25.72
25.87
24.84
17.77
11.12
13.83
$16.49
Total Gain / (Loss) Per Unit
B
Adjusted
Basis
A
Offer
Price
$24.00
24.00
24.00
24.00
24.00
24.00
24.00
24.00
24.00
$24.00
$10.58
12.51
13.15
17.45
19.06
19.27
14.02
9.07
11.52
$12.26
C=A-B
Total Gain/
(Loss) 751 Gain
$13.42 $3.56
11.49
3.57
10.85
3.59
6.55
4.94
4.73
9.98
14.93
12.48
$11.74
D
2.75
2.05
1.62
1.92
1.28
0.54
$1.69
51
Ordinary Gain / (Loss)
Per Unit
E
Carryover
Passive Losses
Confidential - Preliminary and Subject to Change
$--
(0.14)
(0.37)
(0.01)
(0.20)
(0.02)
(0.06)
($0.06)
F =D + E
Net Ordinary
Gain / (Loss)
$3.56
3.43
3.21
2.75
2.05
1.61
1.72
1.26
0.49
$1.62
Capital Gain / (Loss) Per Unit
D
G=C-D
Net Capital
с
Total Gain/
(Loss)
$13.42
11.49
10.85
6.55
4.94
4.73
9.98
14.93
$11.74
751 Gain
$3.56
3.57
3.59
2.75
2.05
1.62
1.92
1.28
$1.69
Tax Liability Per Unit
H = F*T1 I=G* T2 J=H+I
Ordinary Tax Capital Tax Total Tax
Gain / (Loss) Liability Liability Liability
$9.87
$3.29
7.92
2.85
7.26
3.80
2.89
3.11
8.06
13.65
11.94
$10.06
1.32
1.27
1.19
1.02
0.76
0.60
0.64
0.47
0.18
$0.60
1.97
1.58
1.45
0.76
0.58
0.62
1.61
2.73
2.39
$2.01
2.64
1.78
1.34
1.22
2.25
3.20
2.57
$2.61
ŞİŞECAMView entire presentation