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      "text": "Given the high probability of having to make the earn-out payments in both 2019 and 2020, AM's theoretical risk tolerance associated with the earn-out capital should be low: How much capital would AM require today to generate $125 million in both 2019 and 2020, with very minimal risk? Said another way, AM would expect to earn a low return profile were it willing to risk the capital associated with the earn-out payments; At a minimum, AM should be compelled to eliminate a financial obligation at an attractive discount relative to its overall weighted average cost of capital",
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      "text": "Earn-out acceleration pricing (and associated discount) should be based primarily on the probability of AR achieving the targeted delivery volumes. Key factors to consider: AR drilling plan has been vetted by the AR Board and disclosed (in detail) publicly; AR is currently forecasting to surpass its earn-out threshold in both 2019 and 2020; AR controls its own destiny with regard to water usage and achieving the earn-out payments",
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      "text": "While use of proceeds is important to AR, it is our view that it should not be a \"driver\" of pricing the earn-out acceleration: AR should focus on the earn-out discount relative to the probability of achieving the earn-out volumes; Nonetheless, adding capital to the overall AR ecosystem today can help accelerate AR's free cash flow, debt reduction and return of capital initiatives",
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