Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (October 2021)
27 slides from Evolution Petroleum's investor presentation, October 2021
Slide 1: October 2021 Investor Presentation
October 2021 Investor Presentation
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains “forward-looking statements.” Such statements may relate to capital expenditures, drilling and exploitation activities, production efforts and sales volumes, Proved, Probable, and Possible reserves, operating and administrative costs,
Slide 3: Company Overview
NYSE: EPM Company Overview NYSE American EPM EPM Asset Locations Shares Outstanding (9/10/2021) 33.51 MM Share Price (9/23/2021) $5.19 Market Cap (9/23/2021) $173.9 MM Hamilton Dome Common Dividend (1Q 2022) $0.30 per share (annualized) Dividend Yield (9/23/2021) 5.8% EPM Net Production (4Q 2021) ~4
Slide 4: Investment Highlights
NYSE: EPM Investment Highlights 1 Attractive Dividend Supports Total Shareholder Return 2 Solid Financial Position 3 High Quality, Low Risk, Long-lived Asset Base 4 Consistent Track Record of Generating Cash Flow 5 Executing a Disciplined Growth Plan 4
Slide 5: History of Accretive Acquisitions Supporting Dividend
Per Share Returned to Shareholders Since 2.34 $ Histor y of Accretive Acquisitions Suppor ting Dividend December 2013 Timeline & Key Statistics 77 $ 5.8 Current Dividend Yield % (Annualized 1Q22) Million In Dividends Returned to Shareholders Since December 2013 2003- September July November May 2006
Slide 6: Recent Highlights
Q4 FY 2021 Recent Highlights ✓ Produced 4,378 net BOEPD during Q4, up 156% over Q3 due to Barnett Shale acquisition ✓ Generated Q4 EBITDA1 of $4.7 million compared to $2.5 million in Q3 ✓ Increased dividend by 50% over Q3 by declaring a $0.075 per common share dividend for Q1 of 2022 ✓ Closed the ac
Slide 7: Pillars of Success
Pillars of Success Business & Portfolio Investment Strategy Our Two Pillars: Pay Dividend Low Leverage Return capital to shareholders Maintain strong balance sheet $81 MM1 in cash and share Keep net leverage of < 1x buybacks since 2013 Our Keys to Success: ✓ Long life, low decline assets ✓ Low maint
Slide 8: Life Cycle of Oil & Gas Assets
E&P Phases of Ownership, Development & Cash Flow Life Cycle of Oil & Gas Assets Proof of Concept Development I • High Risk, High Capex III • Low Risk, Capex Intensive • Private Equity • Majors Delineation Mature Cash Flow Harvest II • Step-out Risk IV • Low Risk, Low Capex • Independent Producers •
Slide 9: 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 Target Asset Locations • Long-lived reserves with value dominated by proved developed producing cash flow Hamilton Dome ND ~620 Net Acres • Accretive to cash flow and supportive of dividend strategy WY • Low ongoing capital
Slide 10: Committed to Long Term Corporate Sustainability
I n a ug u r a l C o r p o r a t e S u s t a i n ab i l i t y R e p o r t W i l l B e I s s u e d Fa l l 2 0 2 1 Committed to Long Term Corporate Sustainability Evolution works to have a positive impact and presence in the communities and environments in which we live and do business We are committe
Slide 11: Our Assets
Our Assets EVOLUTION Petroleum Corporation
Slide 12: FYE 2021 Reserves
23.4 MMBOE Net Proved Reser ves FYE 2021 Reserves Proved Reserves1 By Asset, 23.4 MMBOE Proved Reserves By Commodity Hamilton Dome PDP 1,851 NGL 29% Oil Delhi PDP 36% Barnett PDP Delhi Proved 6,663 13,059 8,476 Delhi PUD 1,813 Gas 35% Net Oil Net Gas Net NGL Net MBOE MBO MMCF MBBL 6:1:1 Proved 8,420
Slide 13: Delhi Field
Low Decline, EOR CO2 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 enhanced oil recovery
Slide 14: Delhi Reserves
Minimal Incremental Capital Required for Probable Reser ves Delhi Reserves Proved and Probable Reserves CO2 Flood Life • Proved Reserves1 represent a 90% probability of exceeding stated amounts • CO2 flood life is defined by the number of hydrocarbon pore • Probable Reserves1 consider improved recov
Slide 15: Hamilton Dome Field
L o w D e c l i n e , H i s t o r i c a l Wa t e r f l o o d Hamilton Dome Field Overview Historical Net Production • Hamilton Dome field is located in the northwestern Wyoming Big 10,000 Horn Basin in Hot Springs County • Discovered in 1918 and primarily developed from the Phosphoria ~3.4% Yearly D
Slide 16: North Texas Barnett Shale
Acquisition Over view North Texas Barnett Shale Transaction Summary Location • Evolution has acquired a non-operated interest in Barnett Shale natural gas assets from Tokyo Gas Americas, Ltd. (“Tokyo Gas”) for $18.3MM, net of preliminary purchase price adjustments N • Closed on May 7, 2021 with an e
Slide 17: Low Decline and Continued Growth
Low Decline and Continued Growth Historical Net Production 10,000 Acquisition of Hamilton Acquisition of North Texas Dome1 Barnett Shale2 Additional ~450 BOEPD Additional ~4,000 BOEPD BOEPD (6:1:1) Working interest Planned facility 1,000 reversion at Delhi downtime at Delhi 100 7/1/2014 7/1/2015 7/1
Slide 18: Company Performance
Company Performance EVOLUTION Petroleum Corporation
Slide 19: Consistently Paid Dividends Through Commodity Cycles
C o n s i s t e n t l y Pa i d D i v i d e n d s T h ro u g h C o m m o d i t y C y c l e s Common Stock Dividends vs. Average Oil Price $0.12 $120 Cumulative Payout Dec’13 – Sep’21 $0.10 $77MM ($2.34/share) $100 Quarterly Dividend Per Share $0.08 $80 WTI Average Oil Price $0.06 $60 $0.04 $40 $0.02
Slide 20: Minimal Ongoing Capital Expenditures
Minimal Ongoing Capital Expenditures Historical EBITDA and Capital Expenditures $30 Capex averaged ~15% of EBITDA over the last 5 fiscal years1 EBITDA Capex $25 $20 Annualized Barnett EBITDA Dollars in Millions ($MM) $15 $26.1 $23.8 $10 $20.0 $12.8 $5 $8.1 $0 -2.4 -2.1 -0.6 -5.4 -5.2 -$5 Pro Forma F
Slide 21: Maintain High Margins and Low Leverage Throughout the Cycle
Maintain High Margins and Low Leverage Throughout the Cycle Field Revenue and Margin per BOE $70 LOE CO2 $61.15 $58.65 Field Margin 1 FY Average WTI $60 $51.88 $48.40 $46.81 $50 $40 69% $ per BOE 65% $30 69% 71% 68% $20 $10 $0 FY2017 FY2018 FY2019 FY2020 FY2021 Total Net Debt 2: $0.0 $0.0 $0.0 $0.0
Slide 22: Capitalization Table
S t ro n g F i n a nc i a l Po s i t i o n a n d S i m p l e C a p i t a l S t r u c t u re Capitalization Table Capitalization $ in millions 6/30/21 Cash and Cash Equivalents $5.3 Senior Credit Facility $4.0 Total Net Debt $0.0 Total Stockholders’ Equity $54.6 Total Book Capitalization $58.6 Credit
Slide 23: Seasoned Leadership
Management and Insiders Hold ~8% of the Company Seasoned Leadership Management Team Jason Brown | President & CEO | Founder of LongBow Energy, Co-founder of Halcon Resources, RBC Richardson Barr, Petrohawk Ryan Stash | Senior Vice President & CFO | Harvest Oil & Gas, Wells Fargo Securities, Ernst &
Slide 24: Investment Highlights
NYSE: EPM Investment Highlights 1 Attractive Dividend Supports Total Shareholder Return • 31 consecutive quarters of dividends paid - currently 5.8% yield at $0.30/share annually 2 Solid Financial Position • Zero net debt and $30 MM credit facility High Quality, Low Risk, Long-lived Asset Base 3 • L
Slide 25: Contact Information
REACH US Contact Information Thank you for your interest in Evolution Petroleum Corporation NYSE: EPM 1155 Dairy Ashford, Suite 425 Houston, TX 77079 +1 713 935 0122 [email protected] www.evolutionpetroleum.com
Slide 26: Appendix
Appendix 1 1 26 | EVOLUTION Petroleum Corporation
Slide 27: 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
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