Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (November 2017)
19 slides from Evolution Petroleum's investor presentation, November 2017
Slide 1: Evolution Petroleum Corporation Corporate Presentation – November 2017
Evolution Petroleum Corporation Corporate Presentation – November 2017 Corporate Presentation – November 2017 1
Slide 2: Forward Looking Statements
Corporate Presentation – November 2017 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, operatin
Slide 3: Texas / Gulf Coast Focus Overview
Corporate Presentation – November 2017 Texas / Gulf Coast Focus Overview (Quarter ended September 30, 2017) New York Stock Exchange EPM Shares Outstanding 33.1 MM Share Price (11/6/2017) $7.20 Delhi Field Total Equity Value (11/6/2017) $238 MM Common Stock Dividend (Annual Rate) $0.30 per share Divi
Slide 4: Investment Considerations
Corporate Presentation – November 2017 Investment Considerations High Quality, Long-lived Asset Base Steady Cash Flow from Very Large Delhi Field Resource Potential Production Increases from Continuing Development NGL Plant Online; Planned CO2 Flood Enhancements Solid Financial Position
Slide 5: Summary Financial Statements September 30, 2017
Corporate Presentation – November 2017 Summary Financial Statements September 30, 2017 Amounts in $000’s, except EPS Balance Sheet Income Statement Cash $ 24,129 Delhi field revenues $ 8,538 Other current assets 3,319 Lease operating expenses 2,892 Property and equipment 60,938 DD&A and accretion 1,
Slide 6: Delhi Field Recycle Facility and NGL Plant
Corporate Presentation – November 2017 Delhi Field Recycle Facility and NGL Plant Foundation Cash Flow Asset for Evolution Petroleum 6
Slide 7: Delhi Field EOR Project Development
Corporate Presentation – November 2017 Delhi Field EOR Project Development Exceptional resource: Other advantages: 418 MMBO of gross original oil in place No LA oil severance taxes (12.5%) 323 MMBO OOIP in proved flood area until financial payout of the project 195 MMBO production prior to E
Slide 8: Delhi Field Daily Production (Post Tertiary)
Corporate Presentation – November 2017 Delhi Field Daily Production (Post Tertiary) Gross Net BOPD Gross and Net BOEPD BOEPD 10,000 4,000 9,000 3,500 8,000 3,000 7,000 2,500 6,000 Combined Interests 5,000 2,000 4,000 1,500 3,000 Reversion of Working 1,000 Interest – Nov 2014 2,000 Royalty Interest O
Slide 9: EPM Interests in the Delhi Field
Corporate Presentation – November 2017 EPM Interests in the Delhi Field Costs Revenues Working Interest (a) 23.9% 19.0% Royalty Interests None 7.2% Combined Interests 23.9% 26.2% (a) Field Payout and Reversion of Working Interest to EPM Occurred Effective November 1, 2014 (Working Interest in the Me
Slide 10: Delhi Revenue and Field Operating Margin per BOE
Corporate Presentation – November 2017 Delhi Revenue and Field Operating Margin per BOE $70 $61.52 $60 $50 $42.52 $44.88 Margin $39.71 $40 (69% of Rev) $30.78 $25.95 $30 Margin Margin (69% of Rev) (65% of Rev) $20 $10 $- 2015 2016 2017 LOE CO2 Costs Field Operating Margin 10
Slide 11: Proved Reserves – June 2017
Corporate Presentation – November 2017 MBbls Proved Reserves – June 2017 Proved Reserves 12,000 assume 14.3% Total Incremental CO2 10,000 Proved Recovery (Up from Reserves 10,058 13.0% in 2015) 8,000 MBOE 6,000 Reserve Reports Prepared by 4,000 Revision Gains DeGolyer and + 11% MacNaughton 2,000 - U
Slide 12: Delhi NGL Plant
Corporate Presentation – November 2017 Delhi NGL Plant Currently Producing ~1,200 Bbls NGL’s per day Very Rich NGL Mix (YTD): •NGL Plant Online Dec 2016 NGL Component % of Stream •Engineered Solution to CO2 Inlet Ethane 3.5% Processing Installed Aug 2017 Propane 26.1% •Now Operating at 100% Capacity
Slide 13: Multiple Projects To Build Long-Term Value
Corporate Presentation – November 2017 Multiple Projects To Build Long-Term Expand CO2 Flood to Mengel Sand and Value Infill Drilling Additional Thinner Intervals program; Expand CO2 Flood to (Price Dependent) Eastern Part of Delhi Field Increase Production & (Price Dependent) Improve EOR Efficiency
Slide 14: Key Financial Matters
Corporate Presentation – November 2017 Key Financial Matters 14
Slide 15: Six Years of Increasing Revenues and Positive Net Income
Corporate Presentation – November 2017 Six Years of Increasing Revenues $40 and Positive Net Income Revenue & Net Income ($MM) $35 $30 $25 $20 $15 $10 $5 $0 2012 2013 2014 2015 2016 2017 Revenues Net Income 15
Slide 16: EPM Dividend History vs WTI Oil Prices
Corporate Presentation – November 2017 EPM Dividend History vs WTI Oil Prices $0.12 $120 $0.11 Cumulative Payout Dec 2013 thru Sep 2017: $0.10 $37.0 MM ($1.13 per share) $100 $0.09 Sept-17 Dividend $0.075 $0.08 $80 $0.07 Quarterly $0.06 $60 WTI Avg Dividend Oil Prices Rate per $0.05 (Bloomberg) Shar
Slide 17: Management and Directors
Corporate Presentation – November 2017 Management and Directors (Average BOD Tenure 12 Years / Insiders Own ~9%) Bob Herlin, Chairman, Founder, Former CEO Randy Keys, CEO, Adobe, Norcen; EPM 4 Years David Joe, CFO, Unocal; EPM 12 Years Independent Directors: Jed DiPaolo – Halliburton; Growth
Slide 18: Opportunities for EPM
Corporate Presentation – November 2017 Opportunities for EPM We see an Improving Market for Acquisitions Price and Value Expectations more Reasonable Excess Capital Available; Competition Still a Factor Over time, we expect continuing divestitures of mature conventional cash flow properties by l
Slide 19: Value Proposition Summary
Corporate Presentation – November 2017 Value Proposition Summary High Quality, Long-lived Asset Base Steady Cash Flow from Very Large Delhi Field Resource Potential Production Increases from Continuing Development NGL Plant Online; Planned CO2 Flood Enhancements Solid Financial Position
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