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      "text": "Broader universe of investors for a 1099 equity, especially those outside of dedicated midstream/MLP funds\nLarger follow-on offerings have been executed for 1099 versus K-1 equities, and generally there appears to be greater daily trading liquidity for 1099s than K-1s after adjusting for market cap/float\nHowever, a major \"prize\" for a 1099 stock is index inclusion, which generates required index investor buying. Our pro forma GP-entity would have 3 significant \"red flags\" preventing index eligibility:\ni) Partnerships are specifically not eligible, a change in form to a true C-Corp would be required;\nii) non-traditional governance arrangements make inclusion highly unlikely, and\niii) S&P has a 50% float requirement (versus an expected ~45% float on a pro forma basis)",
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      "text": "Combination of separate pools of equity into a single, larger, and common pool of 1099 equity, which is attractive to a broader group of investors\nSignificant accretion in cash distributions and distributable cash flow per GP common share\nTransaction accelerates GP's economic ownership of Midstream distributed cash flow, potentially by many years\nMeaningful tax synergies increases the total amount of cash available for distribution for GP and Midstream without any corresponding reduction in distribution coverage\nGP common shareholders will have economic ownership of Midstream's pre-coverage distributable cash flow (versus relying on actual cash distributions being paid by Midstream in order to receive cash at the GP entity)\nThe pro forma GP entity will remain the highest growth midstream equity in the sector, with cash accretion helping to further offset any adverse effects on valuation of a \"blending-down\" of the GP distribution growth rate as a result of the deal",
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      "text": "These market factors favor structural simplification versus the status quo. Our preference for a GP-Buys-Midstream structure versus an IDR recapitalization (or the status quo plan) is driven by a number of factors, including:",
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      "text": "The Special Committee also examined the potential market reactions and shareholder base implications for a GP-Buys Midstream transaction. Our preference for a single 1099 equity as the future form of ownership is driven by:",
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      "text": "Process Update on Arkose Midstream GP Structural Alternatives (Cont'd)",
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