Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (June 2022)
31 slides from Evolution Petroleum's investor presentation, June 2022
Slide 1: Investor Presentation
Wyoming Investor Presentation June 2022
Slide 2: Disclaimer
Disclaimer This presentation is for information purposes only and does not constitute an offer to sell or issue, or the solicitation of an offer to buy, acquire or subscribe for any shares in the Company in any jurisdiction. Forward Looking Statements This presentation contains “forward-looking stat
Slide 3: Company Overview
NYSE: EPM Asset Locations Company Overview NYSE American EPM Williston Basin Shares Outstanding (5/9/2022) 33.74 MM (Closed January 2022) Jonah Field Share Price (6/10/2022) $7.55 (Closed April 2022) Hamilton Dome 52 Week Range (6/10/2022) $3.60-$8.17 Market Cap (6/10/2022) $254.7 MM Common Dividend
Slide 4: Timeline & Key Statistics
Histor y of Accretive Acquisitions & Development Suppor ting Dividend Timeline & Key Statistics Per Share Returned to Shareholders Since 2.51 $ December 2013 83 $ 5.3 Current Dividend Yield % (Annualized 3Q22) Million In Dividends Returned to Shareholders Since December 2013 2003- September November
Slide 5: Business & Portfolio Investment Strategy
Pillars of Success Business & Portfolio Investment Strategy Our Two Pillars: Sustainable Low Dividend Leverage • Return capital to • Maintain strong shareholders balance sheet • $87MM(1) paid in • Targeted net cash & share leverage of <1x buybacks since 2013 Adjusted EBITDA Our Keys to Success: ✓ Lo
Slide 6: Life Cycle of Oil & Gas Assets
Exploration & Production Phases of Ownership, Development & Cash Flow Life Cycle of Oil & Gas Assets Proof of Concept Development I • High Risk, High Capex III • Lower Risk, Capex Intensive, Infill Drilling in Late Stages • Private Equity • Majors & Large Independents Delineation Mature Cash Flow Ha
Slide 7: M&A Strategy
D i s c i p l i n e d G r o w t h & Ta r g e t e d A s s e t s M&A Strategy Evolution Asset Locations WY Williston Basin Hamilton Dome ~47,500 Net Acres • Long-lived reserves with value dominated by proved developed ~620 Net Acres (Closed January 2022) producing cash flow ND • Accretive to cash flow
Slide 8: Scaling Evolution Through Acquisitions
G r o w i n g D a i l y P r o d u c t i o n T h r o u g h A c q u i s i t i o n s O v e r t h e L a s t 2 Ye a r s Scaling Evolution Through Acquisitions 2,125 7,770 565 3,415 1,250 415 3Q FY2022 Avg. Production (BOEPD) Hamilton Dome Barnett Shale Williston Basin Jonah Field Asset (Wyoming) (Texas)
Slide 9: EPM Daily Production
Company Pro Forma with Williston Basin & Jonah Field Acquisitions EPM Daily Production Projections Jonah Field Williston Basin Acquisition of Jonah Field Barnett Shale Hamilton Dome April 2022 Delhi Field Acquisition of Williston Basin January 2022 BOEPD Acquisition of Barnett Shale May 2021 Acquisi
Slide 10: EPM Pro Forma: Diversified Portfolio
Acquisitions Diversify & Strengthen Proved Reser ves Base EPM Pro Forma: Diversified Portfolio Pro Forma Revenue (1) Pro Forma Daily Production(2,3) Pro Forma Proved Reserves (MMBOE)(4) Pro Forma Proved Reserves by Classification(4) 16% 16% 17% 26% 24% 7,770 36.7 36.7 $31.1MM 46% 43% < 1% BOE/d MMBO
Slide 11: Significant Upside Nestled in Williston Acquisition
High-Quality Drilling Locations Significant Upside Nestled in Williston Acquisition Williston 3P Reserves by Classification (1,2) Williston 3P Reserves by Commodity(1,2) 4.4% 0.3% 14.3% 14.4% Classification: 10.2% Commodity 50.4 PDP 50.4 Type: 53.4% MMBoe PDNP MMBoe Oil PUD NGLs 27.5% PROB 75.5% Gas
Slide 12: Assets
| Assets EVOLUTION Petroleum Corporation
Slide 13: Committed to Long Term Corporate Sustainability
Inaugural Corporate Sustainability Repor t Published November 2021 Committed to Long Term Corporate Sustainability Environmental • Partnering with operators that share a common goal of upholding high standards of environmental stewardship, achieving compliance with regulatory requirements, and minim
Slide 14: Williston Basin
Established PDP Production with Significant Upside Williston Basin Overview • Assets located in the Williston Basin in western North Dakota in McKenzie, MT ND N Golden Valley, and Billings Counties • Production primarily from the Three Forks, Pronghorn, and Bakken formations • Assets operated by Fou
Slide 15: Jonah Field
Prolific Natural Gas Field WY Hamilton Dome Jonah Field Sublette County N ~100 miles Overview Jonah Field • Jonah Field is located within Wyoming’s Green River Basin in Sublette County • Produces from the Lance Pool consisting of 3,000’ to 5,000’ of gross thickness (~45% net pay) of over-pressured r
Slide 16: North Texas Barnett Shale
Mature Natural Gas & NGL Production North Texas Barnett Shale Overview Location • Assets located in north Texas in Bosque, Denton, Hill, Hood, Johnson, Parker, Somervell, and Tarrant Counties N • Production out of the Barnett Shale formation • Increased natural gas pricing encouraging operators to r
Slide 17: Delhi Field
Long Life Enhanced Oil Recover y CO 2 Flood Delhi Field Overview NGL Plant • Delhi Field is in northeast Louisiana in Franklin, Madison, and Richland parishes • Produces out of the Tuscaloosa and Paluxy (Holt-Bryant) reservoirs • Produced over 210 MMBO since it was discovered in the 1940s • CO2 enha
Slide 18: Hamilton Dome Field
L o w H i s t o ric al D e c l in e R a t e Wa t e r f lo o d Hamilton Dome Field Historical Net Production Overview 10,000 • Hamilton Dome field is located in the northwestern Wyoming Big Horn Basin in Hot Springs County ~3.4% Yearly Decline Since 1974 • Discovered in 1918 and primarily developed f
Slide 19: Company Performance
| Company Performance EVOLUTION Petroleum Corporation
Slide 20: Evolution's Growth Story
Adding Significant Scale with Conser vative Leverage & without Diluting Shareholders Evolution’s Growth Story Average Daily Production (BOE/day) Adjusted EBITDA ($MM) 10,000 0.084 0.090 $80.0 $66.8 $3.000 Jonah Field Pro-Forma Adjusted EBITDA $2.850 9,000 Williston 0.080 $70.0 Adj EBITDA/ Shares Out
Slide 21: Minimal Ongoing Development Capital Expenditures
Minimal Ongoing Development Capital Expenditures Historical Adjusted EBITDA & Development Capital Expenditures $35 Adjusted EBITDA CAPEX $30 Development capex averaged $25 ~13% of Adjusted EBITDA over the last 5 fiscal years (1) $20 Dollars in Millions ($MM) $15 $31.0 $26.1 $23.8 $10 $20.0 $5 $12.8
Slide 22: Consistently Paid Dividends Through Commodity Cycles
C onsistently Pa id Dividends Through C om modity C yc les Common Stock Dividends vs. Average Oil Price $0.12 $120 Cumulative Payout Dec’13 – Mar’22 4Q22 Dividend Declared $0.10 ~$83MM ($2.51/share) at $0.10/share $100 Quuarterly Dividend Per Share $0.08 $80 WTI Average Oil Price $0.06 $60 $0.04 $40
Slide 23: Evolution's Value Proposition
$ 83 NYSE: EPM Evolution’s Value Proposition Attractive Dividend Supports Total Shareholder Return • Consecutively paid dividends since 2013 • Currently ~5.3% yield at $0.40/share annually Million In Dividends Returned to Shareholders Since December 2013 <1x Solid Financial Position • Low leverage a
Slide 24: Contact Information
REACH US Contact Information 1155 Dairy Ashford, Suite 425 Houston, TX 77079 [email protected] +1 713 935 0122 www.evolutionpetroleum.com Thank you for your interest in Evolution Petroleum Corporation NYSE: EPM Management Team Board of Directors Jason Brown | President & CEO | Founder of L
Slide 25: Appendix
| Appendix ' 251 H EVOLUTION Petroleum Corporation
Slide 26: Footnotes
Footnotes Slide 3: 1. Pro Forma 3Q FY2022 net production includes estimates for recent acquisitions in the Williston Basin and Jonah Field as if they were owned for the entire quarter. 2. Reserves from June 30, 2021 Fiscal Year End Reserves Report. Reserves determined using gas conversion ratio of 6
Slide 27: Capitalization Table
S t ro n g F i n a n cia l Po s i t io n & S i m p l e C a p it a l S t r u c tu re Capitalization Table Capitalization $ in millions 3/31/2021 Cash and Cash Equivalents $13.4 Senior Credit Facility $20.0 Total Net Debt $6.6 Total Stockholders’ Equity $64.8 Total Book Capitalization $58.2 Credit Sta
Slide 28: Adjusted EBITDA Reconciliation
Non-GAAP Reconciliation Adjusted EBITDA Reconciliation Adjusted EBITDA is a non-GAAP financial measure that is used as a supplemental financial measure by our management and by external users of our financial statements, such as investors, commercial banks and others, to assess our operating perform
Slide 29: Ethane Rejection Reconciliation
Barnett Reser ves Ethane Rejection Reconciliation • FYE 2021 Barnett reserves were modeled in ethane recovery • In FY 2022 the operator of the Barnett assets has been electing to reject ethane due to the price of natural gas compared to ethane in order to maximize revenue; the operator expects to re
Slide 30: Management Team
Seasoned Leadership Management Team Jason Brown, President & CEO 20+ years of experience in the energy industry focused on engineering, upstream operations, acquisitions, divestitures, and value creation Prior to joining Evolution in 2019, previous leadership roles include founding LongBow Energy, c
Slide 31: Board of Directors
Experienced Advisors Board of Directors Robert Herlin Edward DiPaolo Marjorie Hargrave William Dozier Kelly Loyd Chairman & Lead Director & Chairman of Chairman of Audit Chairman of Compensation Chairman of Investment Co-Founder Nominating & Corporate Committee Committee Committee Governance Committ
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