Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (April 2023)
29 slides from Evolution Petroleum's investor presentation, April 2023
Slide 1: Investor Presentation April 2023
Investor Presentation April 2023
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: History of Accretive Acquisitions & Development Supporting Dividend
HISTORY OF ACCRETIVE ACQUISITIONS & DEVELOPMENT SUPPORTING DIVIDEND TIMELINE & KEY STATISTICS COMPANY OVERVIEW Shares Outstanding 33.717 MM APR 2003 SEP 2003 2006 Share Price $7.05 52 Week Range $4.81 - $8.55 Market Cap $238 MM Company was founded in Acquisition of interest in Delhi Purchased royalt
Slide 4: Business & Portfolio Investment Strategy: Three Core Pillars
SUCCESS BASED ON THREE CORE PILLARS BUSINESS & PORTFOLIO INVESTMENT STRATEGY OUR PILLARS TO MAXIMIZING SHAREHOLDER RETURN FOUNDATIONS OF OUR SUCCESS A S S ET B A S E MINIMAL GROW T H DEBT Long-life, low decline assets Geographic & & low-risk development commodity diversity inventories Accretive & cy
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 proportionate share of net SIMPLE STRUCTURE cash flow received from the operator of the assets • Target properties that provide the ability to influence capital
Slide 6: 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 since • Low production decline; 20+ years • Closed 4 acquisitions from Nov’19- • Low leverage
Slide 7: Consistently Paid Dividends Through Commodity Cycles
CONSISTENTLY PAID DIVIDENDS THROUGH COMMODITY CYCLES DIVIDENDS VS. AVERAGE OIL & NATURAL GAS PRICES 15.3% 7.3% 7.3% 7.6% 6.8% 6.9% $140 6.4% $14 5.9% 5.9% 5.6% 5.9% 5.9% 5.4% 5.3% 5.0% 4.4% 4.2% 4.4% 4.5% $120 3.7% 3.6% 4.2% 4.1% 3.7% 4.1% 3.6% 3.6% 3.5% 3.6% 4.0% $12 Henry Hub Avg. Price ($/MMBTU)
Slide 8: Evolution's Business Model: Life Cycle of Oil & Natural Gas Assets
EVOLUTION’S BUSINESS MODEL 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 • Lo
Slide 9: Disciplined Growth & Targeted Assets
DISCIPLINED GROWTH & TARGETED ASSETS M&A STRATEGY EVOLUTION'S ASSET LOCATIONS Hamilton Dome Williston Basin • Focused on finding the best incremental IRR for our portfolio & complementary to ~620 Net Acres ~47,500 Net Acres existing assets Jonah Field (Closed Nov ‘19) (Closed Jan'22) ~950 Net Acres
Slide 10: Diversified & Balanced Portfolio of Assets
ACQUISITIONS DIVERSIFY & STRENGTHEN PROVED RESERVES BASE DIVERSIFIED & BALANCED PORTFOLIO OF ASSETS Fiscal Q2 Revenue Fiscal Q2 Average Daily Production(1) FYE‘22 Proved Reserves(1)(2) FYE’22 Proved Reserves by Classification(2) NGL PUD NGL NGL 10% 10% 16% 19% Nat 7,250 Nat 36.2 Nat 36.2 $33.7 MM Ga
Slide 11: Substantially Building Daily Barrels Through Acquisitions
SUBSTANTIALLY BUILDING DAILY BARRELS THROUGH ACQUISITIONS DAILY PRODUCTION Low decline assets provide 20+ years of reserves life BOEPD(1) 9,000 Delhi Field Hamilton Dome Barnett Shale Williston Basin Jonah Field Acquisition of Jonah Field 8,000 Apr'22 7,000 Acquisition of Acquisition of Barnett Shal
Slide 12: Scaling Through Acquisitions
EXECUTING DISCIPLINED GROWTH STRATEGY SCALING THROUGH ACQUISITIONS (1) (2) Adjusted EBITDA ($MM) Daily Production (BOEPD) $25.0 7,451 7,598 8,000 7,250 7,000 $20.0 5,848 5,578 6,000 $15.0 4,957 5,000 4,374 $10.0 4,000 3,000 $5.0 2,124 2,164 1,910 1,918 1,841 1,797 $2.5 2,000 $5.1 $4.0 $2.8 $4.7 $8.6
Slide 13: Growth Without Leverage Nor Dilution
GROWTH WITHOUT LEVERAGE NOR DILUTION EVOLUTION’S GROWTH STORY (1) Daily Production (BOEPD) Shares Outstanding (MM) 8,000 40.0 33.5 33.5 33.8 7,000 33.1 33.2 33.0 35.0 6,000 30.0 Daily Production (BOE) 5,000 25.0 4,000 20.0 3,000 15.0 2,000 10.0 1,000 5.0 2,042 2,025 2,034 2,430 5,953 7,418 0 0.0 YTD
Slide 14: Committed to Long-Term Corporate Sustainability
CORPORATE SUSTAINABILITY REPORT PUBLISHED ANNUALLY EACH OCTOBER 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 le
Slide 15: Evolution's Value Proposition
94.4 EVOLUTION’S VALUE PROPOSITION High Quality Assets Provide Years of Dividend Coverage $ • Long-life, low decline, 20+ year reserve life • Positive free cash flow throughout commodity cycle(1) Million In Dividends Returned to Shareholders Since December 2013 Attractive Dividend Supports Total Sha
Slide 16: 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 17: Thank you for your interest in Evolution Petroleum Corporation
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 18: Appendix
APPENDIX
Slide 19: Jonah Field
PROLIFIC NATURAL GAS FIELD JONAH FIELD Hamilton Dome Sublette County OVERVIEW HIGHLIGHTS ~100 miles ♦ Jonah Field is located within Wyoming’s Green ♦ Long life reserves with a sub-10% Jonah Field River Basin in Sublette County decline ♦ Produces from the Lance Pool consisting of ♦ Multiple takeaway
Slide 20: Williston Basin
ESTABLISHED PDP PRODUCTION WITH SIGNIFICANT UPSIDE WILLISTON BASIN LOCATION: WESTERN NORTH DAKOTA OVERVIEW HIGHLIGHTS ♦ Properties located in the Williston Basin in ♦ Evolution is able to propose, fund, and drill wells western North Dakota in McKenzie, Golden via a joint development agreement with W
Slide 21: North Texas Barnett Shale
MATURE NATURAL GAS & NGL PRODUCTION NORTH TEXAS BARNETT SHALE OVERVIEW HIGHLIGHTS ♦ Assets located in north Texas in Bosque, Denton, Hill, ♦ Long-lived PDP reserves(1), < 10% base decline LOCATION: NORTH TEXAS BARNETT SHALE Hood, Johnson, Parker, Somervell, and Tarrant Counties ♦ ~35% natural gas li
Slide 22: Hamilton Dome Field
LOW HISTORICAL DECLINE RATE WATERFLOOD HAMILTON DOME FIELD HISTORICAL NET PRODUCTION OVERVIEW HIGHLIGHTS ♦ Hamilton Dome Field is located in the ♦ Long-life, low decline reserves; 10,000 northwestern Wyoming Big Horn Basin in Hot premier field having produced over ~3.4% Yearly Decline Springs County
Slide 23: Delhi Field
LONG-LIFE ENHANCED OIL RECOVERY CO2 FLOOD 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 c
Slide 24: Q2 FY'23 Highlights
Q2 FY'23 HIGHLIGHTS Recorded revenue of $33.7 MM and net income of $10.4 MM, or $0.31 per diluted share Generated Adjusted EBITDA(1) of $16.4 MM during current quarter with YTD FY'23 Adjusted EBITDA(1) growing 79% year over year Fiscal 2023 YTD daily production was 7,418 BOEPD, an 37% increase year
Slide 25: Adjusted EBITDA Reconciliation
NON-GAAP 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 perfor
Slide 26: FYE 2022 Reserve Summary
FYE 2022 RESERVE SUMMARY(1) TOTAL RESERVES BY COMMODITY TOTAL PROVED RESERVES BY ASSET Oil Natural NGLs Total Oil Natural NGLs Total Proved Reserve Category (MBbls) Gas (MMcf) (MBbls) Reserves (MBOE) Property (MBbls) Gas (MMcf) (MBbls) Reserves (MBOE) Proved Developed Producing 8,705 104,723 6,299 3
Slide 27: High Yield, Low Debt & Primed for Growth
EPM VS. S&P 500 SECTORS HIGH YIELD, LOW DEBT & PRIMED FOR GROWTH 8.0% 5.4x Dividend Yield (%) Net Debt/EBITDA Dividend Yield & Net Debt / EBITDA(1)(2) 7.5% 6.0x 4.8x 5.0x 6.0% 4.0x 3.0x 2.1x 4.0% 1.8x 1.8x 1.5x 1.4x 2.0x 1.2x 1.0x 0.6x 0.5x 1.0x 2.0% 0.2x -0.1x 0.0x 3.0% 3.5% 1.6% 2.5% 0.8% 1.0% 1.6
Slide 28: Risk vs. Return Profile
EPM VS. S&P 500 SECTORS RISK VS. RETURN PROFILE(1)(2) Evolution Petroleum Financials Lower Risk Information Energy Technology Health Care Materials Risk S&P 500 Communication Services Consumer Staples Higher Risk Consumer Industrials Discretionary Real Estate Utilities Lower Return Return Higher Ret
Slide 29: Consistent Dividend Yield Over Time
EPM VS. S&P 500 SECTORS CONSISTENT DIVIDEND YIELD OVER TIME(1) Evolution Consumer Staples Utilities Financials Industrials Communication Services Real Estate S&P 500 Consumer Discretionary Information Technology 14.0% Health Care Materials Energy 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Source: FactSet
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