Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (March 2018)
19 slides from Evolution Petroleum's investor presentation, March 2018
Slide 1: Evolution Petroleum Corporation Corporate Presentation – March 2018
Evolution Petroleum Corporation Corporate Presentation – March 2018 Corporate Presentation – March 2018 1
Slide 2: Forward Looking Statements
Corporate Presentation – March 2018 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 a
Slide 3: Texas / Gulf Coast Focus Overview
Corporate Presentation – March 2018 Texas / Gulf Coast Focus Overview (Quarter ended December 31, 2017) New York Stock Exchange EPM Shares Outstanding 33.1 MM Share Price (2/13/2018) $8.00 Delhi Field Total Equity Value (2/13/2018) $265 MM Common Stock Dividend (Annual Rate) $0.40 per share Dividend
Slide 4: Core Principles and Objectives
Corporate Presentation – March 2018 Core Principles and Objectives Distribute 40%+ of Cash Flow as Dividends Tax Reform makes C-Corp’s much more Tax-Efficient Reserve 40%+ of Cash Flow for Value-Driven Reinvestment in Portfolio Diversify Asset Base with Acquisitions Seeking Geologic and Pr
Slide 5: EPM Dividend History vs WTI Oil Prices
Corporate Presentation – March 2018 EPM Dividend History vs WTI Oil Prices $0.14 Cumulative Payout Dec 2013 thru Dec 2017: $140 $39.5 MM ($1.205 per share) $0.12 $120 Mar-18 Dividend $0.10 $0.10 $100 $0.08 $80 Quarterly WTI Avg Dividend Oil Prices Rate per $0.06 $60 (Bloomberg) Share $0.04 $40 $0.02
Slide 6: Summary Financial Statements December 31, 2017
Corporate Presentation – March 2018 Summary Financial Statements December 31, 2017 Amounts in $000’s, except EPS Balance Sheet Income Statement (Six Months Fiscal YTD) Cash $ 25,744 Delhi field revenues $ 19,605 Other current assets 4,902 Lease operating expenses 5,806 Property and equipment 60,126
Slide 7: Revenues & Net Income ($MM)
Corporate Presentation – March 2018 Six + Years of Increasing Revenues $40 and Positive Net Income Revenues & Net Income ($MM) $35 $30 $25 (a) $20 $15 (b) $10 $5 $0 2012 2013 2014 2015 2016 2017 2018 (a) Includes Litigation Settlement Revenues Net Income Fiscal YTD 2 Quarters (b) Includes Tax Reform
Slide 8: Delhi Field Recycle Facility and NGL Plant
Corporate Presentation – March 2018 Delhi Field Recycle Facility and NGL Plant Foundation Cash Flow Asset for Evolution Petroleum 8
Slide 9: Delhi Field EOR Project Development
Corporate Presentation – March 2018 Delhi Field EOR Project Development Exceptional resource: Other advantages: 418 MMBO of gross original oil in place No LA oil severance taxes (12.5%) 323 MMBO OOIP in proved flood area until financial payout of the project 195 MMBO production prior to EOR
Slide 10: Delhi Field Daily Production (Tertiary)
Corporate Presentation – March 2018 Delhi Field Daily Production (Tertiary) Gross Net BOEPD Gross and Net BOE per Day BOEPD 10,000 4,000 9,000 3,500 8,000 3,000 7,000 2,500 6,000 Combined Interests 5,000 2,000 4,000 1,500 3,000 Reversion of Working Interest 1,000 Royalty Interests Only 2,000 Nov 201
Slide 11: EPM Interests in the Delhi Field
Corporate Presentation – March 2018 EPM Interests in the Delhi Field Costs Revenues Working Interest (a) 23.9% 19.0% Royalty Interests None 7.2% Combined Interests 23.9% 26.2% (a) Field Payout and Reversion of Working Interest to EPM Occurred Effective November 1, 2014 (Working Interest in the Menge
Slide 12: Delhi Revenue and Field Operating Margin per BOE
Corporate Presentation – March 2018 Delhi Revenue and Field Operating Margin per BOE (YE June 30) $70 Rev / BOE $61.52 $60 $49.53 $50 $44.88 (69% of Rev) $39.71 $40 (69% of Rev) $30 (65% of Rev) (70% of Rev) $20 $10 $- YE Jun 2015 YE Jun 2016 YE Jun 2017 FYTD Dec 2017 LOE CO2 Costs Field Operating M
Slide 13: Delhi Capital Spending by Year ($000's)
Corporate Presentation – March 2018 Delhi Capital Spending by Year ($000’s) $8,000 Cum Capex – Dec 2017 $7,000 NGL Plant - $26.6MM * $6,000 Other Spending - $10.9MM $5,359 (Post Reversion Nov 2014) $5,500 $5,000 $4,000 Forecast $3,000 $2,292 $2,397 $2,000 $1,500 $901 $1,000 Forecast $0 FY 2015 FY 20
Slide 14: Proved Reserves - June 30, 2017
Corporate Presentation – March 2018 Proved Reserves - June 30, 2017 Proved Reserves 10,058.4 MBOE assume 14.3% Incremental CO2 Recovery (Up from 13.0% in 2015) Positive Revisions to PDP Oil 652.5 MBOE 1,332.8 Reserve Reports (~10%) Since 2015 6,617.4 Prepared by DeGolyer and MacNaughton 79% Develope
Slide 15: Delhi NGL Plant
Corporate Presentation – March 2018 Delhi NGL Plant Currently Producing ~1,150 Bbls NGL’s per day Very Rich NGL Mix (ITD): • NGL Plant Online Dec 2016 NGL Component % of Stream • Engineered Solution to CO2 Inlet Ethane 2.9% Processing Installed Aug 2017 Propane 26.0% • Operating at Effective Capacit
Slide 16: Multiple Projects To Build Long-Term Value
Corporate Presentation – March 2018 Multiple Projects To Build Long-Term Expand CO2 Flood to Test Site 6, Value Mengel Sands and Additional Intervals Infill Drilling program; Expand (Price Dependent) CO2 Flood to Eastern Part of Field (Test Site 5) Increase Production & Improve EOR Efficiency throug
Slide 17: Management and Directors
Corporate Presentation – March 2018 Management and Directors (Average BOD Tenure 12 Years / Insiders Own ~9%) Bob Herlin, Chairman, Founder, Former CEO Randy Keys, CEO, Adobe, Norcen; EPM 4 Years David Joe, CFO, Unocal; EPM 12 Years Independent Directors: Jed DiPaolo – Halliburton; Growth Ca
Slide 18: Opportunities for EPM
Corporate Presentation – March 2018 Opportunities for EPM We see an Improving Market for Acquisitions Price and Value Expectations more Reasonable Competition is Strong; Capital is Still Plentiful Over time, we expect continuing divestitures of mature conventional cash flow properties by larger
Slide 19: Value Proposition Summary
Corporate Presentation – March 2018 Value Proposition Summary High Quality, Long-lived Asset Base Steady Cash Flow from Very Large Delhi Field Resource Potential Production Increases from Continuing Development 12 well Infill Drilling Program Planned to Start March 2018 Solid Financial Pos
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