Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — EnerCom Oil & Gas Conference 2021
22 slides from Evolution Petroleum's conference presentation, Aug 17, 2021
Slide 1: EnerCom Oil & Gas Conference
EnerCom Oil & Gas Conference Jason Brown, CEO August 17, 2021
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 (5/3/2021) 33.51 MM Share Price (8/13/2021) $4.16 Market Cap (8/13/2021) $139.4 MM Hamilton Dome Common Dividend (4Q 2021) $0.20 per share (annualized) Dividend Yield (8/13/2021) 4.8% EPM Net Production (3Q 2021) ~1,
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 Profitability 5 Executing a Disciplined Growth Plan 4
Slide 5: History of Accretive Acquisitions Supporting Dividend
Per Share Returned to Shareholders Since 2.26 $ Histor y of Accretive Acquisitions Suppor ting Dividend December 2013 Timeline & Key Statistics 74.5 $ 4.8 Current Dividend Yield % (Annualized Q421) Million In Dividends Returned to Shareholders Since December 2013 2003- September July November May 20
Slide 6: 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 $78.5 MM1 in cash and share Keep net leverage of < 1x buybacks since 2013 Our Keys to Success: ✓ Long life, low decline assets ✓ Low ong
Slide 7: 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 8: 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 9: Our Assets
Our Assets EVOLUTION Petroleum Corporation
Slide 10: Substantial Increase in Proved Reserves from FYE2020
23.4 MMBOE Net Proved Reser ves FYE 2021 Reserves Proved Reserves* By Asset, 23.4 MMBOE Proved Reserves By Commodity Hamilton Dome PDP 1,851 NGL Oil Delhi PDP 29% 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 11: 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 12: Minimal Incremental Capital Required for Probable 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 13: 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 14: North Texas Barnett Shale Acquisition Overview
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 $18.2MM, net of preliminary purchase price adjustments N • Closed on May 7, 2021 with an e
Slide 15: Low Decline and Continued Growth
Low Decline and Continued Growth Historical Net Production 100,000 Acquisition of North Texas Barnett Shale2 Additional ~4,200 BOEPD 10,000 BOEPD (6:1:1) Working interest reversion at Delhi 1,000 Planned facility downtime at Delhi Acquisition of Hamilton Dome1 Additional ~450 BOEPD 100 7/31/12 7/31/
Slide 16: Company Performance
Company Performance EVOLUTION Petroleum Corporation
Slide 17: Consistent Dividend Payments Through the Cycle
C o n s i s t e n t D i v i d e n d Pa y m e n t s T h ro u g h t h e C y c l e Common Stock Dividends vs. Average Oil Price $0.12 $120 Cumulative Payout December 2013 thru June 2021 $74.5MM ($2.26/share) $0.10 $100 Quarterly Dividend Per Share $0.08 $80 WTI Average Oil Price1 $0.06 $60 $0.04 $40 $0
Slide 18: Minimal Ongoing Capital Expenditures
Minimal Ongoing Capital Expenditures Net Capital Expenditures $8,000 WellWell Delhi Integrity Integrity EPM Capex averaged 11% of revenue over FieldWell Delhi Enhancement Enhancement $7,000 the last 6+ fiscal years1 Facilities/Other Delhi Facilities/Other NewNew Delhi Drilling Drilling $6,000 $5,359
Slide 19: Maintain High Margins and Low Leverage Throughout the Cycle
Maintain High Margins and Low Leverage Throughout the Cycle Field Revenue and Margin per BOE $80 $69.65 50%+ Margin at Sub-$50 Oil LOE CO2 $70 2 $61.15 Field Margin1 $58.65 $60 FY Average WTI $48.40 $50 $46.62 $47.02 $41.91 $ per BOE $40 69% 68% 71% $30 69% 54% 53% 65% $20 $10 $0 FY2015 FY2016 FY201
Slide 20: 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 21: Investment Highlights
NYSE: EPM Investment Highlights 1 Attractive Dividend Supports Total Shareholder Return • 31 consecutive quarters of dividends paid - currently 4.9% yield at $0.20/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 22: 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
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