Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (March 2024)
30 slides from Evolution Petroleum's investor presentation, March 2024
Slide 1: Investor Presentation
INVESTOR PRESENTATION
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 Timeline & Key Statistics
COMPANY TIMELINE & KEY STATISTICS COMPANY OVERVIEW Shares Outstanding 33.5 MM EVOLUTION ASSET LOCATIONS Share Price $5.98 Hamilton Dome Williston Basin 52 Week Range $5.00 - $10.11 ~1,400 Net Acres ~43,300 Net Acres (Closed Nov ‘19) Market Cap $200 MM (Closed Jan'22) Jonah Field Annual Common Divide
Slide 4: Business & Portfolio Investment Strategy
BUSINESS & PORTFOLIO INVESTMENT STRATEGY OUR PILLARS TO MAXIMIZING SHAREHOLDER RETURN FOUNDATIONS OF OUR SUCCESS ASSET BASE MINIMAL GROWTH DEBT Long-life, low decline assets Geographic & & low-risk development commodity diversity Accretive & cyclically Maintain strong RETURN CAPITAL inventories oppo
Slide 5: Non-Operated Business Model
NON-OPERATED BUSINESS MODEL • Lower-risk investment vehicle in the energy industry • Own working interests and royalty interests providing a proportionate share of SIMPLE STRUCTURE net cash flow received from the operator of the assets • Target properties that provide the ability to influence capita
Slide 6: Life Cycle of Oil & Natural Gas Assets
LIFE CYCLE OF OIL & NATURAL GAS ASSETS • Higher risk with higher return • Moderate risk with moderate return • Modest maintenance Capex • High Capex to define field and • Extension and infill drilling • Long-life and low decline install infrastructure • Capex on adding production and proved reserves
Slide 7: Proven History of Total Shareholder Return
PROVEN HISTORY OF TOTAL SHAREHOLDER RETURN Consistent High Quality, Low Risk, Proven Non-Op Solid Return of Capital Long-Lived Asset Base Accretive Acquirer Financial Position • Consecutively paid dividends • Low production decline; 15+ • Closed 5 acquisitions from • No leverage and $8.5 MM cash sin
Slide 8: Consistent Dividend & Superior Risk-Adjusted Return
CONSISTENT DIVIDEND & SUPERIOR RISK-ADJUSTED RETURN RISK vs RETURN(2)(3) EPM (4) Utilities CONSISTENT DIVIDEND YIELD OVER TIME(1) LOWER RISK EPM Cons. Staples Util. Fin. Ind. Comm. Real Estate Real Energy S&P 500 Cons. Discr. IT Health Mat. Energy Estate Consumer 18.0% Staples 16.0% 14.0% Materials
Slide 9: High Yield, Low Debt & Primed for Growth
HIGH YIELD, LOW DEBT & PRIMED FOR GROWTH Dividend Yield & Net Debt/EBITDA(1) 5.1x 4.6x Dividend Yield (%) Net Debt/EBITDA 1.8x 1.5x 1.6x 1.2x 1.1x 1.3x 1.3x 0.4x 0.8x 0.3x -0.3x 0.7% 0.9% 0.7% 1.4% 1.6% 1.5% 1.8% 1.9% 2.7% 3.4% 3.6% 3.5% 8.0% Consumer Communication Information S&P 500 Health Industr
Slide 10: Dividends vs. Average Oil & Natural Gas Prices
WTI Average Price ($/BBL) $20 $40 $60 $80 $0 $100 $140 Dec-13 $0.10 $120 3.2% Mar-14 $0.10 Jun-14 $0.10 3.7% Sep-14 $0.10 5.4% Dec-14 $0.10 Mar-15 $0.05 Sources: EIA, FactSet Data & Analytics as of 3/11/24. 3.0% Jun-15 $0.05 4.4% 3.4% 3.6% Sep-15 $0.05 Dec-15 $0.05 4.1% Mar-16 $0.05 4.2% 3.7% Jun-16
Slide 11: M&A Strategy
M&A STRATEGY • Focused on finding the best incremental IRR for our portfolio & complementary to existing assets ◦ Long-life reserves with value dominated by proved developed producing cash flow ◦ Highly accretive to cash flow & supportive of dividend strategy ◦ Low ongoing maintenance capital invest
Slide 12: Diversified & Balanced Portfolio of Assets
DIVERSIFIED & BALANCED PORTFOLIO OF ASSETS FQ2'24 Revenue FYE‘23 Proved Reserves(1)(2) NGLs NGL 13% 19% Nat Nat Gas 31.2 $21.0 MM 31% MMBOE Gas Oil 49% Oil 32% 56% FQ2'24 Average Daily Production(1) FYE’23 Proved Reserves by Property(1)(2) NGLs 8% 17% 13% Nat 40% 6,304 Gas 31.2 Oil BOE/d 56% MMBOE 1
Slide 13: Daily Production
DAILY PRODUCTION Low decline assets provide 15+ years of reserves life Delhi Field Hamilton Dome Barnett Shale Williston Basin Jonah Field Scoop/Stack(1) PF Acquisition of SCOOP/STACK Acquisition of eff. Nov'23(1) Jonah Field Apr'22 Acquisition of Acquisition of Barnett Shale Williston Basin May'21
Slide 14: SCOOP/STACK Acquisition Highlights
SCOOP/STACK ACQUISITION HIGHLIGHTS • Production of approximately 1,550 BOEPD and commodity mix of 42% oil, 15% natural gas liquids, and 43% natural gas as of the effective date (11/1/23) • Adds exposure to new core basin with best-in-class operators such as Continental, Ovinitiv, Marathon, EOG, etc.
Slide 15: Permian Strategic Partnership
PERMIAN STRATEGIC PARTNERSHIP Low-Cost Entry into the Permian Basin • 50% WI partner @ $450/acre • Vertical wellbore control with existing horizontal wells on production • “Ready to Drill” with existing field and saltwater disposal infrastructure Have ability to throttle Diversify oil commodity expo
Slide 16: San Andres Development
SAN ANDRES DEVELOPMENT ESTIMATED SAN ANDRES PUD TYPE CURVE San Andres PUD (3) 350 SAN ANDRES PUDs 300 Gross Estimated Case Assumptions per Well WI / NRI 100% / 82% Production Rate (BOE/D) 250 Land(1) $450/Acre D&C ~$3.1 Million 200 150 Estimated Net Well Economics (50% WI) (2) Payout ~16 months 100
Slide 17: Committed to Long-Term Corporate Sustainability
COMMITTED TO LONG-TERM CORPORATE SUSTAINABILITY Environmental Social Governance • Operator partners share common goals to uphold high • Workplace policies and procedures in place to protect • Promoting sound governance practices that lead to standards of environmental stewardship, regulatory health
Slide 18: Company Leadership
COMPANY LEADERSHIP Management Team Kelly Loyd President & Chief Executive Officer Board of Directors Petralis Energy Partners, LLC | JVL Advisors, LLC Robert Herlin William Dozier | RBC CM | Jefferies Director Chairman of the Board of Directors Vintage Petroleum | Santa Fe Minerals Ryan Stash Co-fou
Slide 19: Evolution's Value Proposition
EVOLUTION’S VALUE PROPOSITION High Quality Assets Provide Years of Dividend Coverage • Long-life, low decline, 15+ year reserve life • Positive free cash flow throughout commodity cycle(1) 110.4 $ Million In Dividends Returned to Shareholders Since December 2013 Attractive Dividend Supports Total Sh
Slide 20: Contact Information
CONTACT INFORMATION Thank you for your interest in Evolution Petroleum Corporation NYSE American: EPM 1155 Dairy Ashford Rd, Suite 425 info@evolutionpetroleum.com 713.935.0122 www.evolutionpetroleum.com Houston, TX 77079
Slide 21: Appendix
APPENDIX
Slide 22: SCOOP/STACK
SCOOP/STACK OVERVIEW HIGHLIGHTS ♦ Expected to close in FQ3'24 at net purchase ♦ Acquisitions and associated development drilling LOCATION: CENTRAL OKLAHOMA price of $43.5 MM (effective date of 11/1/23) expected to be self-funding and generate ♦ Properties in the SCOOP and STACK plays of the incremen
Slide 23: Permian Basin
PERMIAN BASIN OVERVIEW HIGHLIGHTS ♦ Properties located in the Northwest Shelf in ♦ Evolution is able to propose, fund, and drill LOCATION: SOUTHEASTERN NEW MEXICO southeastern New Mexico in Chaves and wells via a participation agreement with Roosevelt Counties PEDEVCO ♦ Production primarily from the
Slide 24: Jonah Field
JONAH FIELD LOCATION: SOUTHWEST WYOMING OVERVIEW HIGHLIGHTS ♦ Jonah Field is located within Wyoming’s ♦ Long life reserves with a sub-10% Hamilton Dome Sublette County Green River Basin in Sublette County decline ~100 miles ♦ Produces from the Lance Pool consisting ♦ Multiple takeaway options for ga
Slide 25: Williston Basin
WILLISTON BASIN OVERVIEW HIGHLIGHTS LOCATION: WESTERN NORTH DAKOTA ♦ Properties located in the Williston Basin in ♦ Evolution is able to propose, fund, and drill western North Dakota in McKenzie, Golden wells via a joint development agreement Valley, and Billings Counties with Foundation Williston B
Slide 26: North Texas Barnett Shale
NORTH TEXAS BARNETT SHALE OVERVIEW HIGHLIGHTS ♦ Assets located in north Texas in Bosque, ♦ Long-lived PDP reserves, < 10% base decline Denton, Hill, Hood, Johnson, Parker, Somervell, LOCATION: NORTH TEXAS BARNETT SHALE ♦ ~26% natural gas liquids content and Tarrant Counties ♦ Majority of wells compl
Slide 27: Hamilton Dome Field
HAMILTON DOME FIELD OVERVIEW HIGHLIGHTS ♦ Hamilton Dome Field is located in the ♦ Long-life, low decline reserves; LOCATION: NORTHWEST WYOMING northwestern Wyoming Big Horn Basin in premier field having produced over Hot Springs County 160 MMBO over 100 years ♦ Discovered in 1918 and primarily devel
Slide 28: Delhi Field
DELHI FIELD LOCATION: NORTHEAST LOUISIANA OVERVIEW HIGHLIGHTS ♦ Delhi Field is in northeast Louisiana in Franklin, ♦ No Louisiana oil severance taxes (at 12.5%) Madison, and Richland parishes until payout ♦ Produces out of the Tuscaloosa and Paluxy ♦ Delhi crude price based on Louisiana Light (Holt-
Slide 29: Adjusted EBITDA 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 performance as compared to tha
Slide 30: FYE 2023 Reserve Summary
FYE 2023 RESERVE SUMMARY(1) TOTAL RESERVES BY COMMODITY TOTAL PROVED RESERVES BY ASSET Oil Natural Gas NGLs Total Reserves Oil Natural Gas NGLs Total Reserves Reserve Category (MBbls) (MMcf) (MBbls) (MBOE) Property (MBbls) (MMcf) (MBbls) (MBOE) Barnett Shale 90 54,165 3,380 12,498 Proved Developed P
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