Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (May 2024)
29 slides from Evolution Petroleum's investor presentation, May 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 33.4 MM EVOLUTION ASSET LOCATIONS Share Price $5.56 52 Week Range $5.00 - $10.11 Hamilton Dome Williston Basin ~1,400 Net Acres ~43,300 Net Acres Market Cap $185 MM (Closed Nov ‘19) (Closed Jan'22) Annual Common Dividend (1) $0.48
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 PROOF OF CONCEPT & DELINEATION DEVELOPMENT MATURE CASH FLOW HARVEST • 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 ins
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 • Conservative balance sheet and s
Slide 8: Dividends vs. Average Oil & Natural Gas Prices
DIVIDENDS VS. AVERAGE OIL & NATURAL GAS PRICES 15.3% 7.3% 7.6% 7.8% $140 5.4% 5.9% 5.6% 5.3% 5.9% 6.9% 7.0% $9 4.2% 3.7% 4.4% 4.1% 4.5% 3.6% 3.2% 3.7% 2.6% 3.5% (1) 3.0% 8.3% 8.6% 7.3% 6.4% 5.0% 5.9% 6.8% 5.9% 5.9% $8 4.4% 3.4% 3.6% $120 3.2% 4.1% 3.2% 3.5% 4.2% 3.6% 3.6% 3.5% 4.0% $7 $100 Henry Hub
Slide 9: 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 10: Diversified & Balanced Portfolio of Assets
DIVERSIFIED & BALANCED PORTFOLIO OF ASSETS FQ3'24 Revenue FYE‘23 Proved Reserves(1)(2) NGLs NGL 11% 19% Nat 31.2 Gas $23.0 MM MMBOE 49% Oil 32% Oil 63% FYE’23 Proved Reserves by Property(1)(2) FQ3'24 Average Daily Production(1) 8% NGLs 16% 13% Nat 40% 31.2 7,209 Gas MMBOE Oil BOE/d 54% 18% 30% 21% B
Slide 11: Daily Production
DAILY PRODUCTION Low decline assets provide 15+ years of reserves life (1) Delhi Field Hamilton Dome Barnett Shale Williston Basin Jonah Field Scoop/Stack Chaveroo PF Acquisition of Chaveroo Acquisition of SCOOP/STACK Production Jonah Field eff. Nov'23(1) Feb'24 Apr'22 Acquisition of Acquisition of
Slide 12: SCOOP/STACK Acquisition Highlights
SCOOP/STACK ACQUISITION HIGHLIGHTS • Pro forma FQ3 production of approximately 1,550 BOEPD and commodity mix of 40% oil, 13% natural gas liquids, and 47% natural gas • Adds exposure to new core basin with best-in-class operators such as Continental, Ovinitiv, Marathon, EOG, etc. • Acquisitions conta
Slide 13: Chaveroo Oilfield
CHAVEROO OILFIELD 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 Diversify oil commodity Have ability to throttle exposure through
Slide 14: Chaveroo Oilfield Development
CHAVEROO OILFIELD 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 200 D&C ~$3.1 Million 150 Estimated Net Well Economics (50% WI) (2) Payout ~16 mont
Slide 15: Committed to Long-Term Corporate Sustainability
COMMITTED TO LONG-TERM CORPORATE SUSTAINABILITY Environmental Social Governance • Workplace policies and procedures in place to • Promoting sound governance practices that • Operator partners share common goals to protect health and wellbeing of employees and lead to informed decision making uphold
Slide 16: 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 17: Evolution's Value Proposition
EVOLUTION’S VALUE PROPOSITION 114.4 Dividends Returned to Shareholders Since December 2013 $ High Quality Assets Provide Years of Dividend Coverage • Long-life, low decline, 15+ year reserve life • Positive free cash flow throughout commodity cycle(1) Million Attractive Dividend Supports Total Share
Slide 18: 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 19: Appendix
APPENDIX
Slide 20: SCOOP/STACK
SCOOP/STACK OVERVIEW HIGHLIGHTS ♦ Closed on 2/12/24 at net purchase ♦ Acquisitions and associated development drilling LOCATION: CENTRAL OKLAHOMA price of $40.5 MM (effective date of 11/1/23) expected to be self-funding and generate ♦ Properties in the SCOOP and STACK plays of the incremental cash f
Slide 21: Chaveroo Oilfield
CHAVEROO OILFIELD 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
Slide 22: 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 23: 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 24: North Texas Barnett Shale
NORTH TEXAS BARNETT SHALE OVERVIEW HIGHLIGHTS ♦ Assets located in north Texas in Bosque, Denton, ♦ Long-lived PDP reserves, < 10% base decline Hill, Hood, Johnson, Parker, Somervell, and LOCATION: NORTH TEXAS BARNETT SHALE ♦ ~26% natural gas liquids content Tarrant Counties ♦ Majority of wells compl
Slide 25: Hamilton Dome Field
HAMILTON DOME FIELD OVERVIEW HIGHLIGHTS ♦ Hamilton Dome Field is located in the ♦ Long-life, low decline reserves; premier LOCATION: NORTHWEST WYOMING northwestern Wyoming Big Horn Basin in Hot field having produced over 160 MMBO Springs County over 100 years ♦ Discovered in 1918 and primarily devel
Slide 26: 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%) until Madison, and Richland parishes payout ♦ Produces out of the Tuscaloosa and Paluxy ♦ Delhi crude price based on Louisiana Light (Holt-
Slide 27: 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 28: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION Adjusted Net Income (Loss) is a non-GAAP financial measure presented as a supplemental financial measure to enable a user of the financial information to understand the impact of these items on reported results. This financial measure should not be considered an al
Slide 29: 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 Property (MBbls) (MMcf) (MBbls) (MBOE) Reserve Category (MBbls) (MMcf) (MBbls) (MBOE) Jonah Field 346 34,743 417 6,554 Proved Developed Produ
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