Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — EnerCom Denver 2022
28 slides from Evolution Petroleum's conference presentation, August 2022
Slide 1: Investor Presentation
Wyoming Investor Presentation EnerCom Denver | August 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 Company Overview NYSE American EPM Williston Basin Shares Outstanding (5/9/2022) 33.74 MM (Closed January 2022) Jonah Field Share Price (8/2/2022) $6.53 (Closed April 2022) Hamilton Dome (Closed November 2019) 52 Week Range (8/2/2022) $3.60-$8.17 Market Cap (8/2/202
Slide 4: 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 Debt Reduction Grow Asset Base • Sustainable Dividends • Repay outstanding • Acquisitions • Opportunistic Share borro
Slide 5: Proven History of Total Shareholder Return
$ 86 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 an
Slide 6: 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 & Natural Gas Prices $120 $12 $0.12 Cumulative Dividend Payout Dec’13 – Jun’22 $100 ~$86MM ($2.61/share) $10 $0.10 Henry Hub Avg. Price ($/MMBTU) $0.08 Quarterly Dividen
Slide 7: Scaling Evolution Through Acquisitions
Executing a Disciplined Growth Strategy Scaling Evolution Through Acquisitions $403.8 Total Proved MM Reserves PV-10 ($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 FYE22
Slide 8: Committed to Long-Term Corporate Sustainability
C o r p o r a t e S u s t a i n a b i l i t y 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 re
Slide 9: 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 10: Disciplined Growth & Targeted Assets
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 Hamilton Dome 2.4 MMBOE Proved Reserves M&A Strategy 415 BOEPD WY Jonah Field ✓ Long-lived reserves with value dominated by proved 7.1 MMBOE Proved Reserves Williston Basin 6.1 MMBOE Proved Reserves developed producing cash flow 2,125 BO
Slide 11: 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 BOEPD Acquisition of Barnett Shale May 2021 Acquisition of Hami
Slide 12: Acquisitions Diversify & Strengthen Proved Reserves Base
Acquisitions Diversify & Strengthen Proved Reser ves Base Diversified Portfolio Estimated Q4 Revenue(2) Estimated Q4 Exit Rate Daily Production(3,4) ✓ Commodity Commodity Type: ~12% ~15% Oil ~25% ✓ Reserve Category NGLs Gas ~$40-43 ~7,600- ~44% MM -7,900 ✓ Geography Classification: ~44% BOE/d PDP PD
Slide 13: Significant Upside in Williston Acquisition
High-Quality Drilling Locations Significant Upside in Williston Acquisition Williston 3P Reserves by Classification(1,2) Williston 3P Reserves by Commodity(1,2) 1% 10% 17% 16% Classification: Commodity 22.8 PDP 11% 22.8 Type: 56% MMBoe PDNP MMBoe Oil PUD NGLs PROB 17% 72% Gas POSS Proved Undeveloped
Slide 14: Evolution's Growth Story
Adding Significant Scale with Conser vative Leverage & without Diluting Shareholders Evolution’s Growth Story Average Daily Production (BOE/day) Adjusted EBITDA ($MM) 10,000 0.090 $80.0 $66.8 $3.000 Jonah Field Pro-Forma Adjusted EBITDA $2.850 9,000 Williston 0.080 $70.0 Adj EBITDA/ Shares Outstandi
Slide 15: Evolution's Value Proposition
NYSE American:EPM Evolution’s Value Proposition High Quality Assets Provide Years of Dividend Coverage • Long-life, Low Decline, 20+yr. Reserve Life • Positive free cash flow throughout commodity cycle(1) Attractive Dividend Supports Total Shareholder Return • Consecutively paid dividends since 2013
Slide 16: 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 17: Appendix
| Appendix 7 REVOLUTION Petroleum Corporation
Slide 18: Footnotes
Footnotes Slide 3: 1. Cash returned to shareholders represents dividends paid through 6/30/2022 and buybacks through 3/31/2021. 2. FYE2022 reserves prepared by DeGolyer & MacNaughton and Netherland Sewell & Associates as of 7/1/2022 at 6/30/2022 SEC prices of $5.91/MMBTU and $85.82/bbl. 3. Net debt
Slide 19: 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 20: 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 21: 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 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 develo
Slide 22: 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 23: 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 24: 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 25: 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 26: Timeline & Key Statistics
Histor y of Accretive Acquisitions & Development Suppor ting Dividend Timeline & Key Statistics Per Share Returned to Shareholders Since 2.73 $ December 2013 86 $ 6.1 Current Dividend Yield % (Annualized 4Q22) Million In Dividends Returned to Shareholders Since December 2013 2003- September November
Slide 27: Management Team
Seasoned Leadership Management Team Kelly Loyd, Interim President & CEO 20+ years of experience in energy industry focused on investment banking, buy side, analyzing and Petralis Energy JVL Advisors, investing in public and private energy opportunities, corporate finance, and mergers and acquisition
Slide 28: 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