Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (June 2021)
20 slides from Evolution Petroleum's investor presentation, June 2021
Slide 1: Investor Presentation June 2021
Investor Presentation June 2021
Slide 2: Disclaimer
Disclaimer 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 and administrative costs,
Slide 3: Company Overview
NYSE: EPM Company Overview NYSE American EPM EPM Asset Locations Shares Outstanding 33.5 MM Share Price (5/24/2021) $3.73 Market Cap (5/24/2021) $122 MM Hamilton Common Dividend (4Q 2021) $0.20 per share (annualized) Dome Dividend Yield (5/24/2021) 5.4% EPM Net Production (3Q 2021) ~1,800 BOEPD C O
Slide 4: History of Accretive Acquisitions Supporting Dividend
Per Share Returned to Shareholders Since 2.21 $ Histor y of Accretive Acquisitions Suppor ting Dividend December 2013 Timeline & Key Statistics 71 $ 5.4 Dividend Yield % For Q421 Million In Dividends Returned to Shareholders Since December 2013 C O N F I D E N T I A L September July November May 200
Slide 5: Pillars of Success
Pillars of Success Business & Portfolio Investment Strategy Our Two Pillars: Pay Dividend Low Leverage Return capital to shareholders Maintain strong balance sheet $75 MM1 in cash and share Keep net leverage of < 1x C O N F I D E N T I A L buybacks since 2013 Our Keys to Success: ✓ Long life, low de
Slide 6: Life Cycle of Oil & Gas Assets
E&P Phases of Ownership, Development & Cash Flow Life Cycle of Oil & Gas Assets Proof of Concept Development I • High Risk, High Capex III • Low Risk, Capex Intensive • Private Equity • Majors Delineation Mature Cash Flow Harvest II • Step-out Risk IV • Low Risk, Low Capex • Independent Producers •
Slide 7: Disciplined Growth & Targeted Assets: M&A Strategy
D i s c i p l i n e d G r o w t h & Ta r g e t e d A s s e t s M&A Strategy Target Asset Locations • Long-lived reserves with value dominated by proved developed producing cash flow Hamilton Dome ND ~620 Net Acres • Accretive to cash flow and supportive of dividend strategy WY • Low ongoing capital
Slide 8: Our Assets
8 P R I V A T E & C O N F I D E N T I A L Our Assets
Slide 9: Delhi Field
Low Decline, EOR CO2 Flood Delhi Field Overview NGL Plant Delhi Field is positioned in northeast Louisiana in Franklin, Madison and Richland parishes and produces out of the Tuscaloosa and Paluxy (Holt-Bryant) reservoirs. The field was discovered in the 1940s and CO2 enhanced oil recovery (EOR) deve
Slide 10: Minimal Incremental Capital Required for Probable Reserves
Minimal Incremental Capital Required for Probable Reser ves Delhi Reserves Proved and Probable Reserves CO2 Flood Life • Proved Reserves1 represent a 90% probability of recovery • CO2 flood life is defined by the number of hydrocarbon pore • Probable Reserves1 consider improved recovery rates volume
Slide 11: Hamilton Dome Field
L o w D e c l i n e , H i s t o r i c a l Wa t e r f l o o d Hamilton Dome Field Overview Historical Net Production Hamilton Dome field is located in the northwestern Wyoming Big 10,000 Horn Basin ~20 miles northwest of Thermopolis in Hot Springs County. The field was discovered in 1918 and is prima
Slide 12: North Texas Barnett Shale Acquisition Overview
Acquisition Over view North Texas Barnett Shale Transaction Summary Location • Evolution has acquired a non-operated interest in Barnett Shale natural gas assets from Tokyo Gas Americas, Ltd. (“Tokyo Gas”) for $18.2MM, net of preliminary purchase price adjustments N • Closed on May 7, 2021 with an e
Slide 13: Low Decline and Continued Growth
Low Decline and Continued Growth Historical Net Production 7,000 6,000 Acquisition of North Texas Barnett Shale2 5,000 Additional ~4,200 BOEPD BOEPD (6:1:1) 4,000 Acquisition of Hamilton 3,000 Dome1 C O N F I D E N T I A L Additional ~450 BOEPD 2,000 Working interest reversion at Delhi 1,000 Planned
Slide 14: Company Performance
P R I V A T E & C O N F I D E N T I A L 14 Company Performance
Slide 15: Consistent Dividend Payments Through the Cycle
C o n s i s t e n t D i v i d e n d Pa y m e n t s T h ro u g h t h e C y c l e Common Stock Dividends vs. Average Oil Price $0.12 $120 Cumulative Payout December 4Q21 Dividend Declared 2013 thru March 2021 at $0.05/share $0.10 $71MM ($2.21/share) $100 Quarterly Dividend Per Share $0.08 $80 WTI Aver
Slide 16: Minimal Ongoing Capital Expenditures
Minimal Ongoing Capital Expenditures Net Capital Expenditures $8,000 WellWell Delhi Integrity Integrity EPM Capex averaged 11% of revenue over FieldWell Delhi Enhancement Enhancement $7,000 the last 6+ fiscal years1 Facilities/Other Delhi Facilities/Other NewNew Delhi Drilling Drilling $6,000 $5,359
Slide 17: Maintain High Margins and Low Leverage Throughout the Cycle
Maintain High Margins and Low Leverage Throughout the Cycle Field Revenue and Margin per BOE $80 $69.65 50%+ Margin at Sub-$50 Oil LOE CO2 $70 2 $61.15 Field Margin1 $58.65 $60 FY Average WTI $48.40 $50 $46.62 $47.02 $41.91 $ per BOE $40 69% 68% 71% C O N F I D E N T I A L $30 69% 54% 53% 65% $20 $1
Slide 18: Seasoned Leadership
Management and Insiders Hold ~8% of the Company Seasoned Leadership Management Team Jason Brown | President & CEO | Founder of LongBow Energy, Co-founder of Halcon Resources, RBC Richardson Barr, Petrohawk Ryan Stash | Senior Vice President & CFO | Harvest Oil & Gas, Wells Fargo Securities, Ernst &
Slide 19: Investment Highlights
NYSE: EPM Investment Highlights 1 Attractive Dividend Supports Total Shareholder Return • 30 consecutive quarters of dividends paid - currently 5.4% yield at $0.20/share annually 2 Solid Financial Position • Zero net debt and $30 MM credit facility High Quality, Low Risk, Long-lived Asset Base 3 • L
Slide 20: Contact Information
REACH US Contact Information Thank you for your interest in Evolution Petroleum Corporation NYSE: EPM 1155 Dairy Ashford, Suite 425 Investor Relations Contact Houston, TX 77079 Three Part Advisors +1 713 935 0122 Steven Hooser +1 214 872 2710 shooser@threepa.com info@evolutionpetroleum.com Phillip K
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