Evolution Petroleum Corporation, Inc. · AMEX:EPM
Evolution Petroleum — Investor Presentation (November 2023)
28 slides from Evolution Petroleum's investor presentation, November 2023
Slide 1: Evolution Petroleum November 2023
AEVOLUTION NOVEMBER 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: Company Timeline & Key Statistics
ACCRETIVE ACQUISITIONS ENHANCES SHAREHOLDER VALUE COMPANY TIMELINE & KEY STATISTICS COMPANY OVERVIEW Shares Outstanding 33.4 MM Share Price $5.84 52 Week Range $5.39 - $10.11 Purchased royalty interest in Delhi Market Cap $195 MM Field & sold partial working (1) interest to Denbury with Entered into
Slide 4: Business & Portfolio Investment Strategy
SUCCESS BASED ON THREE CORE PILLARS 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 inventories Accretive & cyclically
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 SIMPLE STRUCTURE of net cash flow received from the operator of the assets • Target properties that provide the ability to influence capital
Slide 6: Life Cycle of Oil & Natural Gas Assets
EVOLUTION’S BUSINESS MODEL LIFE CYCLE OF OIL & NATURAL GAS ASSETS • 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 install infrastructure • Capex on adding pro
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 4 acquisitions from • No leverage and $9.4 MM cash sin
Slide 8: High Yield, Low Debt & Primed for Growth
COMPELLING VALUE OPPORTUNITY HIGH YIELD, LOW DEBT & PRIMED FOR GROWTH Dividend Yield & Net Debt/EBITDA(1) 5.3x 4.6x Dividend Yield (%) Net Debt/EBITDA 1.9x 1.6x 1.7x 1.4x 1.3x 1.4x 1.3x 0.4x 0.7x 0.4x -0.3x 0.8% 0.8% 0.8% 1.6% 1.7% 1.8% 2.0% 2.2% 2.7% 3.6% 3.6% 3.9% 8.2% Consumer Communication Infor
Slide 9: M&A Strategy
DISCIPLINED GROWTH & TARGETED ASSETS M&A STRATEGY • Focused on finding the best incremental IRR for our portfolio & complementary to existing assets o Long-life reserves with value dominated by proved developed producing cash flow o Highly accretive to cash flow & supportive of dividend strategy o L
Slide 10: Permian Strategic Partnership
ORGANIC GROWTH DRILLING OPPORTUNITY PERMIAN STRATEGIC PARTNERSHIP Low-Cost Entry into the Permian Basin • 50% WI partner @ $450/acre • Vertical wellbore control with existing horizontal wells on production Diversify oil commodity Have ability to throttle exposure through organic development • “Ready
Slide 11: San Andres Single-Well Economics
SAN ANDRES SINGLE-WELL ECONOMICS SAN ANDRES DEVELOPMENT SAN ANDRES PUDs ESTIMATED SAN ANDRES PUD TYPE CURVE Gross Estimated Case Assumptions per Well 600 WI / NRI 100% / 82% 500 Land(1) $450/Acre D&C $3.0 Million 400 Production Rate (BOE/D) Estimated Net Well Economics (50% WI) (2) 300 Payout ~16 mo
Slide 12: Diversified & Balanced Portfolio of Assets
ACQUISITIONS DIVERSIFY & STRENGTHEN PROVED RESERVES BASE DIVERSIFIED & BALANCED PORTFOLIO OF ASSETS FQ1'24 Revenue FYE‘23 Proved Reserves(1)(2) Hamilton Dome NGLs ~1,400 Net Acres Williston Basin 12% NGL (Closed Nov ‘19) ~43,300 Net Acres 19% (Closed Jan'22) Nat Gas Jonah Field Nat ~950 Net Acres $2
Slide 13: Substantially Building Daily Barrels Through Acquisitions
SUBSTANTIALLY BUILDING DAILY BARRELS THROUGH ACQUISITIONS DAILY PRODUCTION Low decline assets provide 20+ years of reserves life BOEPD(1) Delhi Field Hamilton Dome Barnett Shale Williston Basin Jonah Field 9,000 Acquisition of 8,000 Jonah Field Apr'22 7,000 Acquisition of Acquisition of Barnett Shal
Slide 14: Dividends vs. Average Oil & Natural Gas Prices
WTI Average Price ($/BBL) $20 $40 $60 $80 $0 $100 $120 $140 Dec-13 $0.10 Mar-14 $0.10 3.2% Jun-14 $0.10 3.2% 3.7% Sources: EIA, FactSet Data & Analytics. Sep-14 $0.10 Dec-14 $0.10 4.4% 5.4% Mar-15 $0.05 3.4% Jun-15 $0.05 3.0% Sep-15 $0.05 3.6% Dec-15 $0.05 4.2% Mar-16 $0.05 4.1% Jun-16 $0.05 3.7% Se
Slide 15: Evolution's Growth Story
GROWTH WITHOUT LEVERAGE OR DILUTION EVOLUTION’S GROWTH STORY (1) Daily Production (BOEPD) Shares Outstanding (MM) 33.1 33.2 33.0 33.5 33.5 33.2 2,042 2,025 2,034 2,430 5,953 7,104 x x FY'18 FY'19 FY'20 FY'21 FY'22 FY'23 Net Debt(2) $0.0 $0.0 $0.0 $0.0 $13.0 $0.0 Adjusted EBITDA(3) $23.8 $23.1 $12.9
Slide 16: 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 17: Evolution's Value Proposition
106.4 EVOLUTION’S VALUE PROPOSITION 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 In Dividends Returned to Shareholders Since December 2013 Attractive Dividend Supports Total Sh
Slide 18: 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 19: 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 20: Appendix
APPENDIX
Slide 21: Permian Basin
STRATEGIC PARTNERSHIP OIL PRODUCTION PERMIAN BASIN LOCATION: SOUTHEASTERN NEW MEXICO OVERVIEW HIGHLIGHTS ♦ Properties located in the Northwest Shelf in ♦ Evolution is able to propose, fund, and drill southeastern New Mexico in Chaves and wells via a participation agreement with Roosevelt Counties PE
Slide 22: Jonah Field
PROLIFIC NATURAL GAS FIELD JONAH FIELD LOCATION: SOUTHWEST WYOMING OVERVIEW HIGHLIGHTS Hamilton Dome Sublette County ♦ Jonah Field is located within Wyoming’s ♦ Long life reserves with a sub-10% ~100 miles Green River Basin in Sublette County decline Jonah Field ♦ Produces from the Lance Pool consis
Slide 23: Williston Basin
ESTABLISHED PDP PRODUCTION WITH SIGNIFICANT UPSIDE 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
Slide 24: North Texas Barnett Shale
MATURE NATURAL GAS & NGL PRODUCTION NORTH TEXAS BARNETT SHALE OVERVIEW HIGHLIGHTS LOCATION: NORTH TEXAS BARNETT SHALE ♦ Assets located in north Texas in Bosque, Denton, ♦ Long-lived PDP reserves, < 10% base decline Hill, Hood, Johnson, Parker, Somervell, and ♦ ~26% natural gas liquids content Tarran
Slide 25: Hamilton Dome Field
LOW HISTORICAL DECLINE RATE WATERFLOOD HAMILTON DOME FIELD OVERVIEW HIGHLIGHTS LOCATION: NORTHWEST WYOMING ♦ Hamilton Dome Field is located in the ♦ Long-life, low decline reserves; premier northwestern Wyoming Big Horn Basin in Hot field having produced over 160 MMBO Springs County over 100 years ♦
Slide 26: Delhi Field
LONG-LIFE ENHANCED OIL RECOVERY CO2 FLOOD DELHI FIELD OVERVIEW HIGHLIGHTS LOCATION: NORTHEAST LOUISIANA ♦ 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 27: 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 28: 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 Reserve Category (MBbls) (MMcf) (MBbls) (MBOE) Property (MBbls) (MMcf) (MBbls) (MBOE) Barnett Shale 90 54,165 3,380 12,498 Proved Developed P
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