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Jason BrownPresident & Chief Executive Officer
June 2020
2
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 Possiblereserves, operating and administrative costs, future operating or financial results, cash flow and anticipatedliquidity, business strategy and potential property acquisitions. These forward-looking statements are generallyaccompanied by words such as “estimated”, “projected”, “potential”, “anticipated”, “forecasted” or other wordsthat convey the uncertainty of future events or outcomes. Although we believe the expectations and forecastsreflected in these and other forward-looking statements are reasonable, we can give no assurance they willprove to have been correct. These statements are based on our current plans and assumptions and are subjectto a number of risks and uncertainties as further outlined in our Forms 10-K and 10-Q. Therefore, the actualresults may differ materially from the expectations, estimates or assumptions expressed in or implied by anyforward-looking statement and we undertake no obligation to update these estimates for events after thispresentation.
Cautionary Note Regarding Oil and Gas Reserves
The United States Securities and Exchange Commission (“SEC”) rules allow oil and gas companies to disclosenot only Proved reserves, but also Probable and Possible reserves that meet the SEC’s definitions of suchterms. We disclose Proved, Probable and Possible reserves in our filings with the SEC and this presentation.Estimates of Probable and Possible reserves are by their nature more speculative than estimates of Provedreserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves issubject to substantially greater risk. Our reserves as of June 30, 2019 were estimated by DeGolyer andMacNaughton, an independent petroleum engineering firm.
DisclaimerNYSE American: EPM
High Quality Long-Lived Assets OverviewNew York Stock Exchange EPM
Shares Outstanding 33.0M
Share Price (6/8/2020) $3.20
Market Capitalization (6/8/2020) $105M
Common Dividend (Annualized Rate) $0.10 per share
Dividend Yield (6/8/2020) 3.1%
EPM Net Liquids Production (03/31/2020) ~2,100 BOEPD
Proved Reserves1 (6/30/2019) 9.0 MMBOE (82% dev)
Probable Reserves (6/30/2019) 4.8 MMBOE (87% dev)
Possible Reserves (6/30/2019) 4.3 MMBOE (91% dev)
Cash (6/1/2020) $20.9M
Debt ($27M available capacity) $0.0
Company OverviewNYSE American: EPM
3
Company HistoryEvolution Petroleum Founding 2003
Delhi Field Acquisition September 2003
Hamilton Dome Acquisition November 2019
Note: 1 Delhi Reserves from June 30, 2019 Fiscal Year End Reserves Report; does not include Hamilton Dome
4
Investment HighlightsNYSE American: EPM
4
High Quality, Low Risk, Long-lived Asset Base Low production decline and positive cash flow; 20+ years remaining life,100% Oil and NGLs
Delhi Field potential by extending CO2 flood to other reservoirs utilizing existing facilities
Attractive Dividend Supports Total Shareholder Return
26 consecutive quarters of dividends paid - currently 3.1% yield at $0.10/share annually
Consistent Track Record of Profitability
8 consecutive years of positive net income
Solid Financial Position Cash: $20.9M
Zero Debt & Untapped $27M Credit Facility
Executing a Disciplined Growth Plan Closed Hamilton Dome field acquisition on November 1, 2019
Positioned to execute future acquisitions with conservative leverage and available cash
5 5
Long-lived reserves with value dominated by proved developed producing cash flow
Appropriate for the size and capabilities of Evolution
Assets in locations with reasonable market access and a stable regulatory environment
Focus on assets that have:
Low ongoing capital investment
Short or intermediate runway to incremental cash flow
Efficient and economic at existing scale of development
Not dependent on near term commodity price improvement
Disciplined Growth: M&A StrategyNYSE American: EPM
Accretive to Cash Flow and Value
Supportive of Company’s Dividend Strategy
6 6
Entered into protective near-term hedges for a significant portion of our oil production in 2020.
Temporarily lowered annual dividend payout by 75%, while maintaining a yield of ~3.1%.
Initiated dialogue with operators to temporarily curtail and shut-in uneconomic wells.
Worked with operators to defer and minimize capital expenditures and workover expense spending.
Completed review of G&A expenses and reduced non-essential spending.
Transitioned seamlessly to work from home for all employees and contractors without downtime.
Our Response to COVID-19NYSE American: EPM
7
Delhi Field
8
Delhi Field EOR CO2 Flood• ~6,000 Gross BOE per day• ~85% Louisiana Light Sweet (LLS) oil, connected
by pipeline to market• Rich mix of heavier NGLs, or 60% C4 + C5
Delhi NGL Plant
Multiple High Quality, Low Risk, Long-lived Asset BaseLow Decline CO2 Flood
NYSE American: EPM
9 9
Phase IPhase II
Phase III
Phase V
Unquantified future expansion in downdip thinner reservoirs & eastern
phase – dependent on oil price
2011
2009 2012-13
Unquantified Future
Expansion2015-17
Infill Drilling in Phases I & II
2018PUD Infill Program
Proved Undeveloped
(“PUD”)
2010
Delhi Field Enhanced Oil Recovery (“EOR”) Project
Multiple High Quality, Low Risk, Long-lived Asset BaseExceptional Resource
NYSE American: EPM
Town of Delhi
Exceptional Resource Key Advantages
418 MMBO of gross original oil in place No Louisiana oil severance taxes (at 12.5%)
until payout
Third party reserve report demonstrates remaining field life of over 20 years
Oil transported by pipeline from field – no current capacity constraints
Over 13,600 gross acres in units held by production
Delhi crude price based on LLS pricing (historically a premium to WTI)
Phase IV
$5,359
$2,292 $2,397
$5,430 $5,200
$1,300
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
FY2015 FY2016 FY2017 FY2018 FY2019 FYTD2020
$’s
in 0
00’
s
Well Integrity Field Enhancement Facilities/Other New Drilling
10 10
Delhi Field Net Capital Expenditures
Multiple High Quality, Low Risk, Long-lived Asset BaseMinimal Ongoing Capital Expenditures
NYSE American: EPM
Note: Excludes NGL Plant net capital expenditure of ~$27M.
Delhi Capex averaged only 11% of revenue over the last 5+ fiscal years
11
Hamilton Dome Field
12 12
Multiple High Quality, Low Risk, Long-lived Asset BaseLong-Life Low Decline Oil Acquisition
NYSE American: EPM
Conventional Oil Hamilton Dome Field
Location
Geographically located in NW Wyoming about twenty miles northwest of Thermopolis in Hot Springs County.
Geologically located in the SW part of the Big Horn Basin producing primarily from the Tensleep and Phosphoria reservoirs from approximately 3,000’ deep.
Key Advantages
23.51% Non-operated working interest and 19.70% revenue interest (83.79% revenue interest to 8/8ths)
Long life reserves - premier field having produced over 160 MMBO over 100 years
100% Oil production - averaging low single-digit decline rates
Top tier operator - Merit Energy will continue to operate this field as they have for 20+ years
Hamilton Dome Field
100
1,000
10,000
1974
1975
1976
1978
1979
1981
1982
1983
1985
1986
1988
1989
1991
1992
1993
1995
1996
1998
1999
2000
2002
2003
2005
2006
2008
2009
2010
2012
2013
2015
2016
2017
2019
BO
E p
er
Day
Hamilton Dome Historical Production Net to Acquired Interest
Series2
13 13
Multiple High Quality, Low Risk, Long-lived Asset BaseHamilton Dome Historical Net Production
NYSE American: EPM
~3.4% Yearly Decline Since 1974
~0.8% Decline Since 2016
Note: Declines are per annum.
14
Company Performance
0
500
1,000
1,500
2,000
2,500
Ma
r-13
Jun-
13
Se
p-1
3
Dec
-13
Ma
r-14
Jun-
14
Se
p-1
4
Dec
-14
Ma
r-15
Jun-
15
Se
p-1
5
Dec
-15
Ma
r-16
Jun-
16
Se
p-1
6
Dec
-16
Ma
r-17
Jun-
17
Se
p-1
7
Dec
-17
Ma
r-18
Jun-
18
Se
p-1
8
Dec
-18
Ma
r-19
Jun-
19
Se
p-1
9
Dec
-19
Ma
r-20
BO
E p
er D
ay
EPM Historical Net Production
Delhi Field Including Hamilton Dome
1515
Multiple High Quality, Low Risk, Long-lived Asset BaseLow Decline and Acquisitive Growth
NYSE American: EPM
Note: The Hamilton Dome acquisition closed on November 1, 2019 with an effective date of October 1, 2019
Working interest reversion
Planned facility downtime
Acquisition of Hamilton Dome
16 16
Delhi Field Interests
Metric Costs Revenues
Working Interest 23.9% 19.0%
Royalty Interests - 7.2%
Combined Interests 23.9% 26.2%
Hamilton Dome Field Interests
Metric Costs Revenues
Working Interest 23.5% 19.7%
Royalty Interests - -
Combined Interests 23.5% 19.7%
Multiple High Quality, Low Risk, Long-lived Asset BaseNon-Operated Interests
NYSE American: EPM
17 17
Multiple High Quality, Low Risk, Long-lived Asset BaseDependable Dividend Payment
NYSE American: EPM
Cumulative Payout Dec 2013 thru Mar 2020 > $69M (or $2.11/share)
Note: WTI prices are from Bloomberg
$-
$20
$40
$60
$80
$100
$120
$0.00
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
WTI
Ave
rage
Oil
Pric
e
Qua
rter
ly D
ivid
end
per S
hare
Common Stock Dividends WTI Oil Prices (Qtr Avg)
Dividend for June 30 quarter declared at $0.025
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
FY2012 FY2013 FY2014 FY2015 FY2016(1) FY2017 FY2018(2) FY2019 FYTD2020(3)
$ in
Mill
ion
s
Revenues Adjusted Net Income
18 18
Multiple High Quality, Low Risk, Long-lived Asset BaseEight Years of High Growth
NYSE American: EPM
Note: FY2019 excludes the Hamilton Dome acquisition, closed in November 2019. CAGR is compounded annual growth rate.
+19.2% CAGRFY2012 to FY2019
+13.4% CAGRFY2012 to FY2019
Adjustments to Net Income: (1) Net income shown is reduced by $21M for the tax-adjusted litigation settlement and insurance proceeds of $29.2M, and (2) Net income shown is reduced by $6.1M for a one-time tax benefit, (3) net income is reduced by $2.8M for EOR tax benefit.
19 19
Where is our operational cash flow going?
Dividends to shareholders
Retained cash to redeploy into acquisitions or future dividends
Disciplined maintenance capital expenditures to support production levels well into the future
Consistent Track Record of Operating Cash FlowMultiple High Quality, Low Risk, Long-lived Asset BaseReturning Over 50% of Cash Flow
NYSE American: EPM
Note: Cash returned to shareholders includes common stock dividends paid and common shares repurchased
23% 16%
-19%
59% 56%
101%
18%
28%
18%
-$5
$0
$5
$10
$15
$20
$25
$30
FY2018 FY2019 FYTD 2020
$ in
Mill
ion
s
Cash Flow From Operations
Cash Retained Returned to Shareholders Capex
20 20
Multiple High Quality, Low Risk, Long-lived Asset BaseHigh Margins Through the Cycle
NYSE American: EPM
Notes: LOEs are Lease Operating Expenses
Field margin is a non-GAAP measure, calculated here as realized revenue per BOE less LOE and CO2 costs per BOE.
69%
65%69%
71%
68%
65%
$0
$10
$20
$30
$40
$50
$60
$70
FY2015 FY2016 FY2017 FY2018 FY2019 FYTD 2020
$ p
er
BO
E
Delhi Field Revenue and Margin per BOE
LOE CO2 Field Margin
74% 13%
11%
2%
FY2019 Probable Reserves: 4.8 million Barrels BOE
70%
12%
15%
3%
FY2019 Proved Reserves: 9.0 million Barrels BOE
Developed Oil Developed NGLs Undeveloped Oil Undeveloped NGLs
21 21
82% Developed
87% Developed
Multiple High Quality, Low Risk, Long-lived Asset BaseHighly Developed Resource Base
NYSE American: EPM
Notes: Reserves as of June 30, 2019.
1 Probable and Possible reserves involve considerably more risk of recovery than proved reserves – see cautionary note on page 2
Key Metrics
Addition of Probable and Possible Reserves more than doubles the reserve base
Proved Reserves are based on 14.4% incremental CO2 recovery (up from 13.0% in 2015)
Probable1 and Possible1
Reserves are based on improved recovery rates
Remaining PUD costs for Phase V are ~$9M (net), or ~$6.00/BOE
No capex is required for undeveloped probable & possible reserves
Hamilton Dome is excluded, and would otherwise add ~30% to Proved Developed Reserves
77%14%
8%
1%
FY2019 Possible Reserves: 4.3 million Barrels BOE
91% Developed
22 22
Multiple High Quality, Low Risk, Long-lived Asset BaseDelhi Reserves
NYSE American: EPM
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0.00 1.00 2.00 3.00 4.00 5.00
Oil
Re
co
vere
d (
%O
OIP
)
CO2 Injected (Hydrocarbon Pore Volume)
2019 YE PROVED 2019 YE 2P 2019 YE 3P TOTAL DELHI FIELD
3P 19.5%
2P 17.4%
1P 14.4%
No incremental capital required for 2P or 3P reserves
23 23
Balance Sheet as of 3Q20
Cash $ 20,693
Other Current Assets 5,526
Property and Equipment, net 67,688
Other Assets 312
Total Assets $ 94,219
Current Liabilities $ 3,109
Long-term Debt 0
Deferred Taxes, ARO, Other 14,190
Stockholders’ equity 76,920
Total Liabilities and Equity $ 94,219
Income Statement as of 3Q20
O&G Revenues $ 26,246
Lease Operating Expenses 11,220
DD&A and Accretion 4,310
G&A Expenses4,240
Income from Operations $ 6,476
Other (Income) (72)
Income Tax (Benefit) (1,720)
Net Income $ 8,268
Earnings per Share (fully diluted) $ 0.25
Solid Financial PositionNYSE American: EPM
Note: Dollars are in thousands, excluding Earnings per share.
Note: The Hamilton Dome field financials are included for only five months.
24 24
EPM does not typically place hedges on commodity prices. (EPM’s last hedge was in 2015)
Evolution’s primary asset (Delhi Field) already has a natural hedge in place with the largest cost of production, purchased CO2, which is tied directly to the price of oil.
In April 2020, the Company entered NYMEX WTI oil swaps covering ~42,000 barrels per month from April 2020 to December 2020 at a fixed swap price of $32.00 per barrel.
The Company’s sole purpose of these hedges is to protect the balance sheet with a short-term defensive hedge as we faced extreme volatility in oil prices as well as a global pandemic and economic slowdown.
Hedging Position NYSE American: EPM
25 25
Management Team
Jason Brown | President & CEO, Founder of LongBow Energy, Co-founder of Halcon Resources, RBC Richardson Barr, Petrohawk
David Joe | Senior Vice President & CFO, UNOCAL Corp.
Board of Directors
Robert Herlin | Evolution Petroleum Chairman & Co-founder
Edward DiPaolo | Halliburton, Duff & Phelps
William Dozier | Vintage Petroleum, Santa Fe Minerals & Amoco
Kelly Loyd | JVL Advisors, LLC1, RBC Capital
Marran Ogilvie | Lehman Brothers, Ferro Corp, LSB Industries
Seasoned LeadershipNYSE American: EPM
Note: 1. Insider holdings cited do not include those of JVL Advisors’ funds not managed by Mr. Loyd
Leadership holds ~8% of the Company
26
Investment HighlightsNYSE American: EPM
26
High Quality, Low Risk, Long-lived Asset Base Low production decline and positive cash flow; 20+ years remaining life,100% Oil and NGLs
Delhi Field potential by extending CO2 flood to other reservoirs utilizing existing facilities
Attractive Dividend Supports Total Shareholder Return
26 consecutive quarters of dividends paid - currently 3.1% yield at $0.10/share annually
Consistent Track Record of Profitability
8 consecutive years of positive net income
Solid Financial Position Cash: $20.9M
Zero Debt & Untapped $27M Credit Facility
Executing a Disciplined Growth Plan Closed Hamilton Dome field acquisition on November 1, 2019
Positioned to execute future acquisitions with conservative leverage and available cash
27 27
Thank you for your interest in
Evolution Petroleum Corp (NYSE: EPM)
Company Contacts:
Jason Brown | (713) 935-0122 | [email protected]
David Joe | (713) 935-0122 | [email protected]
Investor Relations Contacts: Three Part Advisors
Steven Hooser | (214) 872-2710 | [email protected]
Phillip Kupper | (817) 778-8339 | [email protected]
Contact InformationNYSE American: EPM