Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (October 2024)
23 slides from Evolution Petroleum's investor presentation, October 2024
Slide 1: Evolution Petroleum Corporation Investor Presentation
EVOLUTION PETROLEUM CORPORATION INVESTOR PRESENTATION OCTOBER 2024 | NYSE American: EPM
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: Evolution Petroleum (EPM) Overview
WHO WE ARE Evolution Petroleum (EPM) Overview 10+ Year Dividend History EPM is an independent energy company focused on maximizing returns to shareholders through the ownership What We Do of onshore oil and natural gas properties, utilizing a non- $122.5 Million operated business model. Delhi Field
Slide 4: Non-Operated Business Model
Non-Operated Business Model Simple Structure Lean Operations • Lower-risk investment vehicle in the energy • Efficient team of ~10 people primarily engaged in industry management tasks • Own working interests and royalty interests providing a • No field operations staff needed; field work proportion
Slide 5: Evolution's Footprint
ACCRETIVE ACQUISITIONS HAVE SIGNIFCANTLY EXPANDED OUR NETWORK Evolution’s Footprint Asset locations Williston Basin Hamilton Dome ~43,000 Net Acres ~1,400 Net Acres (Acquired Jan'22) (Acquired Nov ‘19) ND Jonah Field WY ~950 Net Acres (Acquired Apr'22) SCOOP/STACK ~4,200 Net Acres OK (Acquired Feb'2
Slide 6: Diversified & Balanced Portfolio of Assets
Diversified & Balanced Portfolio of Assets 13% 22% 37% Oil FYE‘24 31.8 Oil FYE'24 25% $85.9MM Nat Gas Proved Nat Gas Revenue MMBOE 62% NGLs Reserves(1)(2) NGLs 41% 16% 15% 13% SCOOP/STACK 29% 7% Chaveroo 7% FYE'24 6,790 Oil FYE’24 Proved Jonah Average Daily Nat Gas Reserves by Williston Basin BOE/d
Slide 7: Market Trends: Growing Demand in both the U.S. and Abroad
Market Trends: Growing Demand in both the U.S. and Abroad Data center demand becoming the cornerstone to natural gas bull case U.S. LNG Export Build Out Material U.S. gas-power demand and load growth Data centers/AI, continued coal-to-gas Bcf/d Wave 2 LNG switching and electric vehicles driving Buil
Slide 8: Natural Gas Price Volatility
Natural Gas Price Volatility Inadequate natural gas storage will amplify price volatility Lack of storage capacity relative to demand, limited coal switching ability and renewable intermittency further drive price volatility U.S. gas storage: days of LTM demand cover Storage expressed in days’ deman
Slide 9: Business & Portfolio Investment Strategy
Business & Portfolio Investment Strategy Our core pillars to maximizing shareholder return Asset based Return capital to Minimize growth shareholders debt Accretive & cyclically Sustainable Maintain strong balance opportunistic acquisitions dividends sheet Organic growth via new Opportunistic share
Slide 10: Disciplined Asset Based Growth
Disciplined Asset Based Growth Focused on finding the best incremental IRR for our portfolio that complements existing assets Long-life reserves Supportive of with value dominated Highly accretive to Reasonable market continued Efficient operations Includes unvalued by cash flow cash flow & access l
Slide 11: Daily Production
SUCCESS BUILDING DAILY BARRELS THROUGH ACQUISITIONS Daily Production Our Daily Barrels have increased ~3x since 2019 via accretive acquisitions Chaveroo Initial Production in SCOOP/ Chaveroo Field Feb'24 PF Acquisition of STACK SCOOP/STACK eff. Nov'23(1) Jonah Field Acquisition of Williston Jonah Fi
Slide 12: 10+ Year History of Issuing Dividends
CONSISTENTLY RETURNING CAPITAL TO SHAREHOLDERS THROUGH COMMODITY CYCLES 10+ Year History of Issuing Dividends Common Stock Dividends ($) Annualized Dividend Yield (%) 15.3% 9.1% 8.3% 9.0% 7.3% 7.6% 6.8% 7.0% 6.4% 7.8% 5.9% 5.6% 7.3% 5.9% 5.4% 5.3% 6.9% 4.4% 4.2% 5.9% 4.5% 5.9% 5.9% 3.7% 3.7% 4.1% 3.
Slide 13: Consistently Minimizing Debt & Equity Dilution Despite Material Growth
EVOLUTION’S GROWTH STORY Consistently Minimizing Debt & Equity Dilution Despite Material Growth 33.1 33.2 33.0 33.5 33.5 33.2 33.3 7,104 6,790 5,953 2,430 2,042 2,025 2,034 1.1x 0.0x 0.0x 0.0x 0.0x 0.2x 0.0x FY '18 FY '19 FY '20 FY '21 FY '22 FY '23 FY '24 (1) (2) (3) Daily Production (BOEPD) Shares
Slide 14: Key Takeaways
Key Takeaways High Quality Assets Provide Years of Dividend Coverage • Long-life, low decline, 15+ year reserve life • Positive free cash flow throughout commodity cycle(1) Attractive Dividend Supports Total Shareholder Return • Consecutively paid dividends since 2013 • Currently ~9.0% yield(2) at $
Slide 15: Contact Information
Contact Information Thank you for your interest in Evolution Petroleum Corporation; NYSE American: EPM ir@evolutionpetroleum.com 713.935.0122 1155 Dairy AshfordRd, Suite 425 www.evolutionpetroleum.com Houston, TX 77079 Evolution Petroleum (NYSE American: EPM) 15
Slide 16: Appendix
APPENDIX Evolution Petroleum (NYSE American: EPM) 16
Slide 17: Company Leadership
Company Leadership Management Team Board of Directors Kelly Loyd Robert Herlin William Dozier President & Chief Executive Officer Chairman of the Board of Directors Director Petralis Energy Partners, LLC | JVL Advisors, LLC | Co-founder of Evolution Petroleum Vintage Petroleum | Santa Fe Minerals |
Slide 18: ESG
CORPORATE SUSTAINABILITY REPORT PUBLISHED ANNUALLY Committed to Long-Term Corporate Sustainability • Workplace policies and • Operator partners share procedures in place to protect common goals to uphold health and wellbeing of high standards of employees and stakeholders environmental stewardship,
Slide 19: Scoop/Stack Acquisition Highlights (acquired Feb'24)
ACTIVE DRILLING BY HIGH-QUALITY OPERATORS Scoop/Stack Acquisition Highlights (acquired Feb'24) FY’24, participated in 22 SCOOP/STACK wells that, on average, are performing well Expands Evolution’s asset above our original type curve projections. FY24 production of 1,264 footprint into the mature BOE
Slide 20: Company Overview
Company Overview Shares Outstanding Market Cap Net Income (FQE 6/30/24) 33.3 MM $177 MM $1.2 MM Share Price Annual Common Dividend(1) Revenue (FQE 6/30/24)(2) $5.31 $0.48/share $21.2 MM 52 Week Range Net Debt (FQE 6/30/24) Adj. EBITDA (FQE 6/30/24)(2) $4.59 - $6.72 $33.1 MM $8.0 MM Source: Company d
Slide 21: Financial Highlights
Financial Highlights Total Revenue ($’000) Adjusted EBITDA1 ($’000) 150,000 150,000 120,000 120,000 90,000 90,000 60,000 60,000 30,000 30,000 0 0 FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 Evolution Petroleum (NYSE American: EPM) 21 1) Adjusted EBITDA is a non-GAAP financial measure; re
Slide 22: FYE 2024 Reserve Summary
FYE 2024 Reserve Summary(1) Total Reserves by Commodity Total Proved Reserves by Asset Total Oil Natural Gas NGLs Total Reserves Oil Natural Gas NGLs Reserve Category Reserve Category Reserves (MBbls) (MMcf) (MBbls) (MBOE) (MBbls) (MMcf) (MBbls) (MBOE) Proved Developed Producing 7,746 66,627 5,065 2
Slide 23: Adjusted EBITDA Reconciliation
NON-GAAP RECONCILIATIONS 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 perfo
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