8/3/2019 mlpexample

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50% Equity 50%Case 1: No GP Incentive Distribution LP Units LP Units Debt @ Total

GP GP Investors 8.5% CapitalInitial Ownership Interests 2.0% 23.0% 75.0%

New MLP Capital Structure 500.0 Units @ $10.00 $100 $1,150 $3,750 $5,000 $10,000

Initial Project EBITDA Distribution 9 X EBITDA Purchase PriceEBITDA From Initial Project based on 9X $1,111

Less: Debt Service $425 8.5% InterestEBITDA to Partners $686 $14 $158 $515

Number of Units 500 10.00 115.00 375.00Per Unit Distribution $1.37 $1.37 $1.37 $1.37

Partners yield on cost 13.7% 13.7% 13.7% `

Impact of New Project / New Investors 2.0% 0.0% 98.0%

(Investors buy all LP Units / GP must maintain 2% share)

Incremental Capital 400.0 Units @ $12.50 $100 $0 $4,900 $5,000 $10,000Yield on new Units (Yield on Cost): $1.37 Distrib. = 10.98%

Number of New Units 8.00 0.00 392.00Total Number of Units, including Initial Units 900.0 18.00 115.00 767.00

Recalculated Ownership Interests 2.00% 12.78% 85.22%

New Project EBITDA Distribution 8 X EBITDA Purchase PriceEBITDA From New Project based on 8X $1,250Less: Debt Service $425 8.5% Interest

EBITDA to Partners $825New Investors @ Stated Distribution Rate $549 $1.37 per Unit $11 $0 $538

Excess Cash Distributed to Initial Investors+New Investors $276

If all distributions above $1.37 per Unit are 2% GP / 98% LP: 1 $6 $35 $235or or or

If all distributions above $1.37 per Unit are 50% GP / 50% LP: 2 $138 $18 $120

Switch 1 $6 $35 $235Total Number of Units 900.0 18.00 115.00 767.00

Per Unit Distribution $0.31 $0.31 $0.31 $0.31

Total EBITDA Distribution to Partners $825 $17 $35 $773

Cumulative Impact of Initial & New Projects and Investors

Total Capitalization after new Investment $200 $1,150 $8,650 $10,000 $20,000

Total Number of Units 900.0 18.00 115.00 767.00Updated Ownership Interests 2.00% 12.78% 85.22%

Initial Investors total Distribution from Initial & New Projects $840 $17 $193 $630New Investors total Distribution for New Project $672 $13 $0 $658

Total EBITDA Distributed to Partners (GP & LP) $1,511 $30 $193 $1,288

Per Unit Distribution -- Initial Investors $1.68 $1.68 $1.68Per Unit Distribution -- New Investors $1.68 $0.00 $1.68

Debt Service $850Total EBITDA $2,361

8/3/2019 mlpexample

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50% Equity 50%Case 2: GP Incentive Distribution at 50% Level LP Units LP Units Debt @ Total

GP GP Investors 8.5% CapitalInitial Ownership Interests 2.0% 23.0% 75.0%

New MLP Capital Structure 500.0 Units @ $10.00 $100 $1,150 $3,750 $5,000 $10,000

Initial Project EBITDA Distribution 9 X EBITDA Purchase PriceEBITDA From Initial Project based on 9X $1,111

Less: Debt Service $425 8.5% InterestEBITDA to Partners $686 $14 $158 $515

Number of Units 500 10.00 115.00 375.00Per Unit Distribution $1.37 $1.37 $1.37 $1.37

Partners yield on cost 13.7% 13.7% 13.7% `

Impact of New Project / New Investors 2.0% 0.0% 98.0%

(Investors buy all LP Units / GP must maintain 2% share)

Incremental Capital 400.0 Units @ $12.50 $100 $0 $4,900 $5,000 $10,000Yield on new Units (Yield on Cost): $1.37 Distrib. = 10.98%

Number of New Units 8.00 0.00 392.00Total Number of Units, including Initial Units 900.0 18.00 115.00 767.00

Recalculated Ownership Interests 2.00% 12.78% 85.22%

New Project EBITDA Distribution 8 X EBITDA Purchase PriceEBITDA From New Project based on 8X $1,250Less: Debt Service $425 8.5% Interest

EBITDA to Partners $825New Investors @ Stated Distribution Rate $549 $1.37 per Unit $11 $0 $538

Excess Cash Distributed to Initial Investors+New Investors $276

If all distributions above $1.37 per Unit are 2% GP / 98% LP: 1 $6 $35 $235or or or

If all distributions above $1.37 per Unit are 50% GP / 50% LP: 2 $138 $18 $120

Switch 2 $138 $18 $120Total Number of Units 900.0 18.00 115.00 767.00

Per Unit Distribution $0.31 $7.67 $0.16 $0.16

Total EBITDA Distribution to Partners $825 $149 $18 $658

Cumulative Impact of Initial & New Projects and Investors

Total Capitalization after new Investment $200 $1,150 $8,650 $10,000 $20,000

Total Number of Units 900.0 18.00 115.00 767.00Updated Ownership Interests 2.00% 12.78% 85.22%

Initial Investors total Distribution from Initial & New Projects $840 $90 $176 $573New Investors total Distribution for New Project $672 $72 $0 $599

Total EBITDA Distributed to Partners (GP & LP) $1,511 $163 $176 $1,173

Per Unit Distribution -- Initial Investors $9.04 $1.53 $1.53Per Unit Distribution -- New Investors $9.04 $0.00 $1.53

Debt Service $850Total EBITDA $2,361