Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — 28th Annual ROTH Conference 2016
20 slides from Evolution Petroleum's conference presentation, March 2016
Slide 1: 28th Annual ROTH Conference
28th Annual ROTH Conference March 2016
Slide 2: Forward-Looking Statement
2 NYSE MKT: EPM Forward-Looking Statement The data contained in this presentation that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. Such sta
Slide 3: Company Profile
3 Company Profile NYSE MKT: EPM Vital Statistics Texas/Gulf Coast Focus Overview (Fiscal Year End June 30) Shares Outstanding (12/31/2015) 32.9 MM Dilutive Securities (12/31/2015) 0.1 MM Fully Diluted Shares (12/31/2015) 33.0 MM Share Price (3/1/2016) $4.49 Market Capitalization (3/1/2016) $148 MM D
Slide 4: Recovering More Oil: How We Allocate Capital
4 RECOVERING MORE Generating Returns for OIL NYSE MKT: EPM Shareholders How We Allocate Capital Applying Innovative Engineerin • The engineering must g be understandable and economics make sense To Generate Cash Flow Into Known • The financial risk must Recoverin to Fund Oil & Gas be reasonable and
Slide 5: Investment Considerations
5 Investment Considerations Financially Strong and Shareholder NYSE MKT: EPM Friendly High Quality Asset Base Extremely Long-Lived Production (~40 Years for Delhi) Solid, Debt-Free Balance Sheet Positive Net Income reported in 18 of the last 19 quarters Competitive Dividend Yield (4.5%, as
Slide 6: Delhi Field
Delhi Field Long-Lived Foundation Oil Resource
Slide 7: Delhi Field: CO2 Enhanced Oil Recovery
7 Delhi Field CO2 Enhanced Oil Recovery NYSE MKT: EPM Asset Huge Resource Delhi Field EOR Project Development 418 MMBO of Gross Original Oil In Place 192 MMBO Production Prior to EOR Project, 5+ MMBO Since Current Oil Production 1,801 net (6,810 gross) BOPD Growth Catalysts NGL Plant Exp
Slide 8: Delhi EOR Production Profile
8 Delhi EOR Production Profile Reversionary WI Effective Nov- NYSE MKT: EPM 2014 10,000 Delhi Field Oil and NGL Production 1,000 Peak Proved Pdn in 2020 Barrels Per Day Peak 2P Pdn in 2026 100 Reversion of Working Interest (Nov-2014) 10 0 1 1 2 2 2 3 3 3 4 4 5 5 5 6 6 6 7 7 7 8 8 9 9 9 0 0 0 c -1 y-
Slide 9: High Value Interests
9 High Value Interests NYSE MKT: EPM Delhi Field Interest Profile 7.4% • 7.4% of gross revenues Royalty • No CapEx Interest or OpEx…ever 26.4% Net Revenue 23.9% Interest Workin • Reversion occurred g Nov-2014 Interest • Bears 23.9% of CapEx and OpEx & 19% NRI
Slide 10: Delhi Operating Costs
10 Delhi Operating Costs $20.00 $19.19 * $19.22 * $18.00 $16.37 $16.00 $14.00 $13.44 $12.00 CO2 Purchases & $10.00 Transp $8.00 R&M/Labor/Chemicals Electricity * $6.00 $4.00 $2.00 $0.00 * Normalized for a refund received in April 2015 from the electricity provider.
Slide 11: Delhi Reserves Profile
11 Delhi Reserves Profile At June 30, 2015 12.4 MMBOE Proved 24.7 MMBOE 3P Reserves Reserves NGL Poss. 20% 12% Prov Oil ed 80 Prob. 50% % 38%
Slide 12: High-Quality Reserves
12 High-Quality Reserves NYSE MKT: EPM High Developed Content & Low Cost Development $7.07 Per BOE Remaining 2P Development Cost Developed Reserves as Percent of Total by 100% Classification 90% 80% 70% 60% 50% 40% 30% 59% 55% 20% 43% 10% 0% Proved Probable Possible Developed Undeveloped
Slide 13: NGL Recovery Plant
13 NGL Recovery Plant NYSE MKT: EPM Major Growth Catalyst Captures C3+ NGL Production By Projected 2,000+ BLPD Improve CO2 Flood Efficiency and Expected Oil Rate by 500 BOPD Methane Gas Recovery to Power Plant and Existing Facilities, Replacing a material portion of Currently Purchased Power &
Slide 14: Building Momentum: Delhi Field Development Plan
14 Building Momentum NYSE MKT: EPM Delhi Field Development Plan Multiple Projects To Build Expand CO2 Flood to Long-Term Additional Value Expand CO2 Thinner Flood to Intervals Eastern Half of Delhi Install NGL Field Plant, (Price Increase Dependent) Production & Improve EOR Efficiency
Slide 15: Financials
Financials Well-Positioned to Endure and Capitalize
Slide 16: Liquidity and Investment
16 Liquidity and Investment NYSE MKT: EPM Shareholder Friendly Common • $0.20 Per Dividend s Common Share $18.7 MM Liquidity (Dec 31, 2015) $25 MM Returned Unsecure d to Shareholders Revolver; Preferred $5.0 Dividend s • $674K per Year Since FY 2013(a) Working Investing in Growth Capital, Flexible $
Slide 17: Strong Balance Sheet
17 Strong Balance Sheet NYSE MKT: EPM Ability to Withstand the Cycle Debt to Equity (as of December 31, 2015) 9.0x 8.0x Debt-Free 7.0x Since 2006 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x ZERO 0.0x O XI Y SN GC RE S R I H WE E X X E X SM EP EO RR C EI NE BG FX PE NR RN AS EP VN DR CE OG GN UR NG EX CF E G XC EX
Slide 18: Hedging Program
18 Hedging Program Capital Budget / Dividend NYSE MKT: EPM Protection Two-Thirds Estimated Production Covered Floor Ceiling Time Period Volume ($/BBL) ($/BBL) (BOPD) July – Dec 2015 550 $54.00 $66.50 (Collar) July – Dec 2015 550 $56.00 $61.60 (Collar) 1,100 $51.45 $51.45 Jan – Mar 2016 (Swap) Notes:
Slide 19: Looking Forward
Looking Forward EVOLUTION Petroleum Corporation
Slide 20: Summary
20 Summary Recovering More, Generating NYSE MKT: EPM Returns Accretive Growth Delhi Field Production Increasing From Ongoing CO2 Flood Development Low-Cost Reserves Additions and Upgrades Installation of NGL Plant at Delhi Field Underlying Value Long-Lived (40+ Years) Cash Flow from Huge
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