Baird Investment Banking Pitch Book

POTENTIAL ADDITIONAL AR CONCESSIONS AR may consider extending the MVC in connection with an earn-out acceleration VOLUME FORECAST (Mbbld) 250 200 150 100 50 0 153 100 2017A 178 120 ======= 2018E 204 120 ▬▬▬▬▬▬▬▬ 2019E 220 2020E EBITDA ($ in millions) $300 $250 $200 $150 $100 $50 $0 $171 Total Water EBITDA $111 2017A $207 $140 2018E MVC Water EBITDA $245 $144 2019E Confidential $268 Source: Sept 2015 Water Services Agreement and Contribution Agreement in connection with the contribution of water assets from AR to AM. Base Case projections as of March 23. 2020E As it relates to achievement of the MVCS, AR is agnostic to the source of the delivered water volumes from AM (freshwater, Veolia, etc.) There is a "banking" provision associated with the MVCS whereby excess volumes above defined thresholds can be credited toward MVC shortfalls in the subsequent year 150 MVC 120 MVC BAIRD To date, the MVCs have been and are projected to be well below AR's expected water usage, rendering the banking provisions relatively inconsequential Project Bronco $183 $146 Page 7

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