Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (March 2022)
29 slides from Evolution Petroleum's investor presentation, March 2022
Slide 1: Investor Presentation
Jonah Field, Wyoming Investor Presentation March 2022
Slide 2: Disclaimer
Disclaimer Forward Looking Statements This presentation contains “forward-looking statements.” Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. Such statements include those relating to pending acqui
Slide 3: Company Overview
NYSE: EPM Asset Locations Company Overview NYSE American EPM Williston Shares Outstanding (2/7/2022) 33.69 MM Basin Share Price (3/8/2022) $7.69 Hamilton Jonah Field Dome 52 Week Range (3/8/2022) $3.01-$8.17 (Expected Close in April 2022) Market Cap (3/8/2022) $259.1 MM Common Dividend (3Q 2022) $0.
Slide 4: Timeline & Key Statistics
Histor y of Accretive Acquisitions & Development Suppor ting Dividend Timeline & Key Statistics Per Share Returned to Shareholders Since 2.41 $ December 2013 80 $ 5.2 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 • $84MM(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 • Low Risk, Capex Intensive, Infill Drilling in Late Stages • Private Equity • Majors & Large Independents Delineation Mature Cash Flow Harv
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 2,420 8,261 571 3,630 409 1,231 1H FY2022 Production (BOEPD) Hamilton Dome Barnett Shale Williston Basin Jonah Field(1) Asset (Wyoming) (Texas) (N
Slide 9: EPM Daily Production Projections
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 (Expected Close in April 2022) Delhi Field Acquisition of Williston Basin BOEPD Acquisition of Barnett Shale Working I
Slide 10: EPM Pro Forma: Diversified Portfolio
Acquisitions Diversify & Strengthen Proved Reser ves Base EPM Pro Forma: Diversified Portfolio Pro Forma Daily Production(1,2) Pro Forma Proved Reserves (MMBOE)(3) Pro Forma Proved Reserves by Classification (3) 12.9% 17.3% 23.9% 24.5% 8.3 38.0 42.5% 0.4% 38.0 MBOE/D MMBOE MMBOE Commodity Classifica
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 Evo
Slide 15: Jonah Field
Prolific Natural Gas Field Jonah Field Overview WY • 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 29N 108W N Hamilton Dome Sublette (~45% net pay) of over-pressured reservoir County • Jon
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 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 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 0.091 0.100 $70.0 $2.100 Jonah Field Pro-Forma Adjusted EBITDA $1.950 9,000 Williston Pro-Forma 0.090 Adj EBITDA/ Weighted Sha
Slide 21: Minimal Ongoing Development Capital Expenditures
Minimal Ongoing Development Capital Expenditures Historical Adjusted EBITDA & Development Capital Expenditures $30 Adjusted EBITDA CAPEX $25 Development capex averaged ~14% of Adjusted EBITDA $20 over the last 5 fiscal years(1) Dollars in Millions ($MM) $15 $26.1 $23.8 $10 $20.0 $18.7 $12.8 $5 $8.1
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 – Dec’21 $0.10 ~$80MM ($2.41/share) 3Q22 Dividend $100 Increased to $0.10/share Quarterly Dividend Per Share $0.08 $80 WTI Average Oil Price $0.06 $60 $0.04 $40
Slide 23: Evolution's Value Proposition
$ 80 NYSE: EPM Evolution’s Value Proposition Attractive Dividend Supports Total Shareholder Return • Consecutively paid dividends since 2013 • Currently ~5.2% yield at $0.40/share annually Million In Dividends Returned to Shareholders Since December 2013 <1x Solid Financial Position • Low leverage a
Slide 24: Appendix
| Appendix ' 24 | H EVOLUTION Petroleum Corporation
Slide 25: Footnotes
Footnotes Slide 3: 1. Pro Forma 1H FY2022 net production includes recent acquisitions in the Williston Basin and Jonah Field but excludes 130 BOEPD associated with a Giddings Field correction received in Q2 FY2022. The Jonah Field acquisition has not yet closed; expected close in April 2022. 2. Rese
Slide 26: 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 12/31/2021 Cash and Cash Equivalents $13.6 Senior Credit Facility $4.0 Total Net Debt $0.0 Total Stockholders’ Equity $62.1 Total Book Capitalization $66.1 Credit Sta
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
Slide 28: Ethane Rejection Reconciliation
Barnett Reser ves Ethane Rejection Reconciliation • FYE2021 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 rem
Slide 29: 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
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