HEA Research Disclosure

Effective from June 30, 2020

Analyst Certification

We, David Heikkinen, Marshall Carver, David Smith, Kevin MacCurdy, David Amoss, Kevin Pollard, Fernando Zavala and Michael Cusimano, certify that to the best of our knowledge, the views and opinions in this research report accurately reflect our personal views about the subject company (companies) and its (their) securities. We have not and will not receive direct or indirect compensation in return for expressing specific recommendations or opinions in this report.

Important Disclosures

The following analysts were involved in creating or supervising the content of this report: David Heikkinen, Marshall Carver, Michael Hall, David Smith, Kevin MacCurdy, David Amoss, Kevin Pollard, Fernando Zavala and Michael Cusimano.

Conflicts of Interest

The analysts and their households do not own securities of the companies mentioned in this research report.

Compensation

Analysts' compensation is not based on investment banking revenue nor have they received compensation from the subject companies.

Heikkinen Energy has not received investment banking revenue from any companies in the previous 12 months, and has not received non- investment banking revenue from the subject company (companies) in the previous 12 months. We intend to seek compensation for investment banking services from the companies mentioned within this research report.

Meanings of Ratings

We force rank for all companies we cover (#rank/# of companies covered) and tier them into three categories:

top (Focus List), middle (The Moil) and bottom (Bottom Tier)

Focus List is assigned to those companies (usually 20 – 30% of the companies) that have the best combination of valuation risk/reward and positive company specific catalysts within our coverage universe. These companies should be purchased at current prices because they are expected to outperform its peers over the next 12 months.

The Moil is assigned to those companies that have an average combination of valuation risk/reward and company specific catalysts within our coverage universe. These companies are expected to perform in line with our coverage universe over the next 12 months.

Bottom Tier is assigned to those companies (usually 20 – 25% of the companies) that have below average combination of valuation risk/reward and company specific catalysts within our coverage universe. These companies are expected to underperform our coverage universe over the next 12 months. These stocks should be sold at current prices.

Rating Distribution (as of June 30, 2020)

Investment Banking Client Rating Distribution (as of June 30, 2020)

Stock Rating Category Count % (Rounded) Stock Rating Category Count % (Rounded)
Buy/Focus List 22 29% Buy/Focus List 0 0%
Hold/The Moil 27 36% Hold/The Moil 0 0%
Sell/Bottom Tier 15 20% Sell/Bottom Tier 0 0%
NR/Not Rated 11 15% NR/Not Rated 0 0%

Rating Distribution (as of March 31, 2020)

Stock Rating Category Count % (Rounded)
Buy/Focus List 23 30%
Hold/The Moil 26 34%
Sell/Bottom Tier 26 34%
NR/Not Rated 2 3%

Investment Banking Client Rating Distribution (as of March 31, 2020)

Stock Rating Category Count % (Rounded)
Buy/Focus List 0 0%
Hold/The Moil 0 0%
Sell/Bottom Tier 0 0%
NR/Not Rated 0 0%

Price Targets

We do not use price targets in our research reports.

Price Charts

For detailed rating information, please visit our disclosure page.

Other Disclosures

Legal Entities Disclosure: Heikkinen Energy Securities LLC (member FINRA/SIPC) is a wholly owned subsidiary of Heikkinen Energy Advisors LLC.