Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (September 2022)
29 slides from Evolution Petroleum's investor presentation, September 2022
Slide 1: Investor Presentation
Wyoming Investor Presentation September 2022
Slide 2: Disclaimers
Disclaimers 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 sta
Slide 3: Company Overview
NYSE American: EPM Asset Locations(4) Company Overview NYSE American EPM Hamilton Dome ND 2.4 MMBOE Proved Reserves Shares Outstanding (9/9/2022) 33.47 MM 411 BOEPD Williston Basin Share Price (9/20/2022) $7.85 6.1 MMBOE Proved Reserves 488 BOEPD WY 52 Week Range (9/20/2022) $4.41 - $8.55 Jonah Fiel
Slide 4: Q4 FY2022 Highlights
NYSE American: EPM Q4 FY2022 Highlights Declared a FY23 Q1 dividend of $0.12 per share, a 20% increase over FY22 Q4 Announced a $25 MM share repurchase program to be funded from operating cash flow Increased FYE2022 proved reserves by 55% from FYE2021 to 36.2 MMBOE and replaced more than 550% of FY2
Slide 5: Business & Portfolio Investment Strategy
Pillars of Success Business & Portfolio Investment Strategy OUR GOAL Maximize Total Shareholder Return Flexibility to Direct Free Cash Flow to Best Uses OUR PILLARS Return of Capital Minimal Debt Grow Asset Base • Sustainable Dividends • Repay borrowings from • Acquisitions • Opportunistic Share acq
Slide 6: Proven History of Total Shareholder Return
$ 86.3 NYSE American: EPM Proven History of Total Shareholder Return Consistent Return of Capital • Consecutively paid dividends since 2013 • Steady increase in base dividend in response to increased cash flow generation Million In Dividends Returned to Shareholders Since • Share buybacks have been
Slide 7: Consistently Paid Dividends Through Commodity Cycles
C o n s iste n tly Pa i d D i v ide n ds T h ro u gh C o m m odity C y c l e s Common Stock Dividends vs. Average Oil & Natural Gas Prices $140 $14 Cumulative Dividend Payout Dec’13 – Jun’22 FY23 Q1 Dividend $120 ~$86.3MM ($2.61/share) Declared at $0.12 $12 $100 $0.100/share $10 Henry Hub Avg. Price
Slide 8: Scaling Evolution Through Acquisitions
Executing a Disciplined Growth Strategy Scaling Evolution Through Acquisitions $403.8 Total Proved MM(1) Reserves PV-10 ($MM)(1) Hamilton Dome Barnett Shale Williston Basin Jonah Field Asset (Wyoming) (Texas) (North Dakota) (Wyoming) Date Announced Pre-2019 11/6/2019 3/30/2021 1/14/2022 2/9/2022 FYE
Slide 9: Committed to Long-Term Corporate Sustainability
C o r p o r at e S u s t a in a b ility R e p o r t t o b e P u b l i s h e d Fa l l 2 0 2 2 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 regulato
Slide 10: Evolution's Business Model: Life Cycle of Oil & Gas Assets
E v o l u t i o n ’s B u s i n e s s M o d e l Life Cycle of Oil & Gas Assets Identification & Delineation Development Harvest 1 • Higher risk with higher return 2 • Moderate risk with moderate return 3 • Modest maintenance capex • High capex to define field and • Extension and infill drilling • Lon
Slide 11: Disciplined Growth & Targeted Assets: 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 Hamilton Dome ND Long-lived reserves with value dominated by proved 2.4 MMBOE Proved Reserves 411 BOEPD developed producing cash flow Williston Basin 6.1 MMBOE Proved Reserves Highly accretive to cash flow & supportive of di
Slide 12: Substantially Building Daily Barrels Through Acquisitions
Substantially Building Daily Barrels Through Acquisitions 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 Acquisition of Barnett Shale May 2021 BOEPD Acquisition of Hami
Slide 13: Diversified Portfolio
Acquisitions Diversify & Strengthen Proved Reser ves Base Diversified Portfolio Q4 Revenue Q4 Daily Production(2) ✓ Commodity Commodity Type: 12% 15% Oil 25% ✓ Reserve Category NGLs Gas $42.0 44% 7,451 MM BOE/d ✓ Geography Classification: 44% PDP PDNP 60% ✓ Operator PUD Proved Reserves (MMBOE)(2,3)
Slide 14: Significant Upside in Williston Acquisition
High-Quality Drilling Locations Significant Upside in Williston Acquisition Williston 3P Reserves by Classification (1,2) Williston 3P Reserves by Commodity(1,2) 1% 10% 17% 16% Classification: Commodity 22.8 PDP 11% 22.8 Type: 56% MMBoe PDNP MMBoe Oil PUD NGLs PROB 17% 72% Gas POSS Proved Undevelope
Slide 15: Evolution's Growth Story
Adding Significant Scale with Conser vative Leverage & without Diluting Shareholders Evolution’s Growth Story Average Daily Production (BOEPD) Adjusted EBITDA(1) ($MM) 10,000 0.065 0.070 $60.0 $1.800 Jonah Field $1.577 9,000 Williston (1) $1.650 Adjusted EBITDA Barnett Shale 0.060 $50.0 (1) Adj EBIT
Slide 16: Evolution's Value Proposition
NYSE American: EPM Evolution’s Value Proposition High Quality Assets Provide Years of Dividend Coverage • Long-life, low decline, 20+ year reserve life • Positive free cash flow throughout commodity cycle(1) Attractive Dividend Supports Total Shareholder Return • Consecutively paid dividends since 2
Slide 17: 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 Kelly Loyd | Interim President & CEO | Petra
Slide 18: Appendix
| Appendix EVOLUTION Petroleum Corporation
Slide 19: Footnotes
Footnotes Slide 3: 1. Cash returned to shareholders represents $90.3MM of share repurchases and dividends paid through 6/30/2022 assuming an average number of shares outstanding of 33.07MM. 2. FYE2022 reserves prepared by DeGolyer & MacNaughton and Netherland, Sewell & Associates, Inc. as of 7/1/202
Slide 20: FYE2022 Reserve Summary
FYE2022 Reserve Summary Oil Natural Gas NGLs Total Reserves Reserve Category (MBbls) (MMcf) (MBbls) (MBOE) Proved Developed Producing 8,705 104,723 6,299 32,458 Proved Non-Producing 157 71 19 188 Proved Undeveloped 2,608 2,197 623 3,597 Total Proved 11,470 106,991 6,941 36,243 Probable Developed(1)
Slide 21: Delhi Field
Long-Life Enhanced Oil Recover y 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 enhan
Slide 22: Hamilton Dome Field
L o w H i s t o r i c a l D e c l i n e R a t e 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 Horn Basin in 10,000 Hot Springs County ~3.4% Yearly Decline • Discovered in 1918 and primarily developed from th
Slide 23: North Texas Barnett Shale
Mature Natural Gas & NGL Production North Texas Barnett Shale Overview Location • Properties located in north Texas in Bosque, Denton, Hill, Hood, Johnson, Parker, Somervell, and Tarrant Counties OK AR • Production out of the Barnett Shale formation NM • Increased natural gas pricing encouraging ope
Slide 24: Williston Basin
Established PDP Production with Significant Upside Williston Basin Overview Williston Basin • Properties located in the Williston Basin in western North Dakota in McKenzie, Golden Valley, and Billings Counties • Production primarily from the Three Forks, Pronghorn, and Bakken formations • Properties
Slide 25: Jonah Field
Prolific Natural Gas Field 2 1 6 5 4 3 WY Jonah Field Hamilton Dome N 11 12 7 8 Sublette 9 County 10 11 ~100 miles Overview Jonah Field 14 13 18 16 15 14 17 • 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
Slide 26: 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 perfor
Slide 27: Timeline & Key Statistics
Histor y of Accretive Acquisitions & Development Suppor ting Dividend Timeline & Key Statistics 6.1 Current Dividend Yield % Purchased royalty interest in Delhi for $1.5 MM. (Annualized 4Q22) Sold Delhi working interests to Denbury for $50MM cash and agreement to install CO2 flood 2003-04 SEPT-2003
Slide 28: Management Team
Seasoned Leadership Management Team • 20+ years of experience in energy • 20+ years of experience in the energy industry industry focused on investment banking, focused on capital raising, mergers and acquisitions, buy side, analyzing and investing in public and accounting and financial reporting an
Slide 29: Board of Directors
Experienced Advisors Board of Directors Edward DiPaolo Robert Herlin Lead Director & Marjorie Hargrave William Dozier Kelly Loyd Myra Bierria Chairman & Chairman of Nominating Chairman of Audit Chairman of Chairman of Investment Chairman of Co-Founder & Corporate Governance Committee Compensation Co
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