HOUSTON, February 7, 2023 - Evolution Petroleum (NYSE American:EPM) ("Evolution" or the "Company") today announced financial and operating results for its fiscal 2023 second quarter (the "current quarter") ended December 31, 2022. Evolution also declared a quarterly cash dividend of $0.12 per common share for the fiscal 2023 third quarter.
Key Highlights
Recorded current quarter revenue of $33.7 million and net income of $10.4 million or $0.31 per diluted share;
Fiscal year to date ("YTD fiscal 2023") revenue and net income increased year-over-year ("YOY") 78% and 75%, respectively;
Generated Adjusted EBITDA(1) of $16.4 million during the current quarter;
YTD fiscal 2023 daily production was 7,418 BOEPD, or 37% higher YOY;
Paid a quarterly dividend of $0.12 per common share for the current quarter - a 60% increase from the dividend paid during the second quarter of fiscal 2022;
Eliminated all debt during the current quarter through the full repayment of $12.3 million of outstanding borrowings;
$50 million availability under the senior secured credit facility;
All operations, development capital expenditures, dividends, and debt reduction funded out of operating cash flow.
Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization and is a non-GAAP financial measure; see "Non-GAAP Information" section later in this release for more information including reconciliations to the most comparable GAAP measures.
Kelly Loyd, President and Chief Executive Officer, commented, "We are pleased to report solid results for the second quarter of fiscal 2023. Our targeted portfolio of assets located in key prolific oil and natural gas producing regions in the onshore U.S. provide us with a strong platform for ongoing cash flow generation that is fully funding our operating and capital needs. As important, we paid off all outstanding borrowings under our credit facility incurred early in calendar 2022 to complete two major acquisitions and now have a debt-free balance sheet. Our increased liquidity enhances our ability to execute on our long-tenured return of shareholder capital program and continue to evaluate accretive acquisition opportunities."
Mr. Loyd added, "The benefits of our focused efforts to diversify, both geographically and by commodity mix, were on full display during the second quarter of fiscal 2023, highlighted by the premium natural gas price realized at our Jonah Field of $11.00 per MCF that helped raise company-wide natural gas realizations to $7.34 per MCF versus average Henry Hub pricing of $5.55 per MCF, over the same time period."
Mr. Loyd concluded, "With the payment in December of our 37th consecutive quarterly cash dividend to our shareholders, the declaration of a $0.12 dividend for the next quarter and the completed repayment of borrowings on our credit facility, we continue to demonstrate our disciplined approach to maximizing total shareholder returns. In addition, we recently began making purchases through our share repurchase program to further implement our shareholder focus."
Cash Dividend on Common Stock
On February 6, 2023, Evolution's Board of Directors declared a cash dividend of $0.12 per share of common stock, which will be paid on March 31, 2023 to common stockholders of record on March 15, 2023. This will be the 38th consecutive quarterly cash dividend on the Company's common stock, which has been paid since the quarter ended December 31, 2013. To date, Evolution has returned approximately $94.4 million, or $2.85 per share, back to stockholders in common stock dividends. Maintaining and ultimately growing the common stock dividend remains a key Company priority.
Financial and Operational Results for the Quarter Ended December 31, 2022
Current Quarter
Current Quarter % Change From
Prior Quarter
Current Quarter % Change From
Year-Ago Quarter
Current YTD
Current YTD % Change From
Prior YTD
Average BOEPD
7,250
(5)
%
7,598
46
%
4,957
7,418
37
%
5,402
Revenues ($M)
$
33,676
(15)
%
$
39,797
51
%
$
22,339
$
73,473
78
%
$
41,218
Net Income ($M)
$
10,387
(3)
%
$
10,707
52
%
$
6,833
$
21,094
75
%
$
12,051
Adjusted Net Income(1) ($M)
$
9,646
(4)
%
$
10,075
41
%
$
6,833
$
19,721
64
%
12,051
Adjusted EBITDA(2) ($M)
$
16,446
(3)
%
$
17,005
62
%
$
10,182
$
33,451
79
%
$
18,697
Adjusted Net Income is a non-GAAP financial measure, see "Non-GAAP Information" section later in this release for more information including reconciliations to the most comparable GAAP measures.
Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization and is a non-GAAP financial measure; see "Non-GAAP Information" section later in this release for more information including reconciliations to the most comparable GAAP measures.
Total production for the second quarter of fiscal 2023 was 7,250 net BOEPD, including 1,804 barrels per day ("BOPD") of oil; 25,728 thousand cubic feet per day ("MCFPD"), or 4,294 BOEPD, of natural gas; and 1,152 BOEPD of natural gas liquids ("NGLs").
The 1% decrease in oil production from 1,826 BOPD in the prior quarter was primarily due to downtime associated with severe winter storms in the current quarter.
Natural gas production decreased 5% from 27,109 MCFPD, or 4,522 BOEPD, in the prior quarter primarily due to downtime associated with severe winter storms and slightly lower production in the Barnett Shale due to temporary issues at select compression stations and certain offset operator activities.
NGL production decreased 8% from 1,250 BOEPD in the prior quarter primarily due to downtime associated with severe winter storms and slightly lower production in the Barnett Shale due to temporary issues at select compression stations and certain offset operator activities. Also contributing to the decrease was the decision to maximize natural gas production thus reducing NGL recoveries from Jonah Field during the current quarter to capitalize on higher relative natural gas pricing.
Evolution reported $33.7 million of total revenue for the current quarter, a 15% decrease from the prior quarter. Oil revenue decreased 14% to $13.1 million from the prior quarter due to 1% lower sales volumes and a 13% decrease in realized commodity pricing. Natural gas revenue decreased 12% to $17.4 million from the prior quarter due to 5% lower sales volumes and an 8% decrease in realized commodity pricing. NGL revenue decreased 33% to $3.2 million due to 8% lower sales volumes and a 27% decrease in realized pricing. The average realized price per BOE decreased 11% to $50.49 per BOE compared to $56.93 per BOE in the prior quarter.
Lease operating costs decreased 21% to $15.0 million from $19.1 million in the prior quarter. Primarily contributing to the decrease were changes in estimates from prior periods and lower ad valorem and production taxes associated with lower revenues in the current quarter. Also contributing to the decrease were lower workover expense in the Williston Basin and lower CO2 costs at Delhi Field associated with the decrease in crude oil prices from the prior quarter.
Depletion, depreciation, and accretion ("DD&A") expense was $3.5 million compared to $3.6 million in the prior quarter. On a per BOE basis, the Company's depletion rate of $4.76 was essentially flat with the $4.75 depletion rate in the prior quarter.
The Company's general and administrative ("G&A") expenses were $2.6 million for the current quarter compared to $2.5 million in the prior quarter. The increase was primarily associated with higher non-cash stock-based compensation in the current quarter due to sign-on awards and additional one-time director grants that was partially offset by lower professional services fees compared to the prior quarter.
Net income for the current quarter was $10.4 million, or $0.31 per diluted share, compared to $10.7 million, or $0.32 per diluted share, in the prior quarter. Adjusted Net Income (see "Non-GAAP Information" section later in this release for a reconciliation of the GAAP to non-GAAP metric), was $9.6 million, or $0.28 per diluted share, compared to $10.1 million, or $0.30 per diluted share, in the prior quarter.
Adjusted EBITDA was $16.4 million for the current quarter compared to $17.0 million in the prior quarter. On a per BOE basis, Adjusted EBITDA was $24.66 for the current quarter versus $24.33 for the prior quarter.
Operations Update
Net production of the Jonah Field properties was 175 thousand barrels of oil equivalent ("MBOE") (950 million cubic feet ("MMCF") of natural gas) in the current quarter versus 181 MBOE (958 MMCF of natural gas) in the prior quarter. The average natural gas price per MCF realized by Evolution at the Jonah Field was $11.00 in the current quarter compared to $8.21 in the prior quarter, a 34% sequential increase primarily due to higher realized prices as a result of strong winter demand on the West Coast.
Net production of the Williston Basin properties was 45 MBOE (34 MBBL of oil) for the current quarter compared to 45 MBOE (37 MBBL of oil) in the prior quarter. The average oil price per barrel realized by Evolution at the Williston Basin during the current quarter was $82.31 compared to $90.76 during the prior quarter.
Net production of the Barnett Shale properties was 304 MBOE for the current quarter compared to 329 MBOE in the prior quarter. The average natural gas price per MCF realized by Evolution at Barnett Shale during the current quarter was $4.88 compared to $7.81 during the prior quarter.
Hamilton Dome Field oil production was 38 MBOE in the current quarter versus 38 MBOE in the prior quarter. The average oil price per barrel realized by Evolution at Hamilton Dome Field during the current quarter was $66.49 compared to $78.37 during the prior quarter, a decrease of 15%.
Net production at Delhi Field in the current quarter was 104 MBOE compared to 105 MBOE in the prior quarter. The average oil price per barrel realized by Evolution at Delhi Field during the current quarter was $83.50 compared to $93.31 during the prior quarter. The average realized NGL price per barrel was $32.15 compared to $40.91 during the prior quarter.
Balance Sheet, Liquidity and Capital Spending
At December 31, 2022, cash and cash equivalents totaled $3.7 million and working capital was $2.9 million. During the second quarter of fiscal 2023, Evolution fully repaid the remaining $12.3 million of debt outstanding under its revolving credit facility, which has a borrowing base of $50.0 million. As a result, total liquidity at December 31, 2022 was $53.7 million, including cash and cash equivalents. This represents an increase in liquidity of 45% since June 30, 2022.
During the second quarter of fiscal 2023, the Company fully funded operations, development capital expenditures, cash dividends, and debt repayment through cash generated from operations and working capital.
For the three months ended December 31, 2022, Evolution paid $4.1 million in common stock dividends and incurred $1.1 million in development capital expenditures. For fiscal 2023, the Company continues to expect development capital expenditures collectively across its existing portfolio of properties to range between $6.5 million to $9.5 million. These expenditures include anticipated capital costs at Delhi field for a NGL plant heat exchanger project, projected to improve operational efficiency throughout the year, which is currently underway. Evolution's expected capital expenditures for fiscal year 2023 also include participating in the drilling of two sidetrack locations targeting the Birdbear formation and recompleting up to four vertical wells in the Williston Basin, but do not include any capital expenditures for drilling in the Pronghorn and Three Forks locations in the Williston Basin at this time. We continue to evaluate those potential drilling locations with the operator.
Evolution believes its near-term capital spending requirements will be met from cash flows from operations and current working capital, as well as from borrowings under its revolving credit facility as needed.
Conference Call
As previously announced, Evolution Petroleum will host a conference call on Wednesday, February 8, 2023 at 2:00 p.m. Eastern (1:00 p.m. Central) to discuss its second quarter fiscal 2023 results and outlook. To access the call, please dial 1-877-270-2148 (Toll-free) or 1-412-902-6510 (International). Participants should ask to be joined into the Evolution Petroleum Corp. call. To listen live via webcast, click the link https://event.choruscall.com/mediaframe/webcast.html?webcastid=5m8kN1QH or go to the Company's website at www.evolutionpetroleum.com. A webcast replay will be available on Evolution's website under "Investors" on the "Presentations & Events" page following the call or via the webcast link listed above. The replay will be available through February 8, 2024.
About Evolution Petroleum
Evolution Petroleum Corp. is an independent energy company focused on maximizing total returns to its shareholders through the ownership of and investment in onshore oil and natural gas properties in the United States. The Company's long-term goal is to maximize total shareholder return from a diversified portfolio of long-life oil and natural gas properties built through acquisition and through selective development opportunities, production enhancement, and other exploitation efforts on its oil and natural gas properties. Properties include non-operated interests in the following areas: the Jonah Field in Sublette County, Wyoming, a natural gas and natural gas liquids producing field; the Williston Basin in North Dakota, a producing oil and natural gas property; the Barnett Shale located in North Texas, a natural gas and natural gas liquids producing property; the Hamilton Dome Field located in Hot Springs County, Wyoming, a secondary oil recovery field utilizing water injection wells to pressurize the reservoir; the Delhi Holt-Bryant Unit in the Delhi Field in Northeast Louisiana, a CO2 enhanced oil recovery project; as well as small overriding royalty interests in four onshore Texas wells. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at http://www.evolutionpetroleum.com.
Cautionary Statement
All forward-looking statements contained in this press release regarding current expectations, potential results and future plans and objectives of the Company involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations and can give no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Company Contacts
Kelly Loyd, President and Chief Executive Officer Ryan Stash, Senior Vice President & Chief Financial Officer (713) 935-0122 KLoyd@evolutionpetroleum.com RStash@evolutionpetroleum.com
Evolution Petroleum Corp. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2022
2021
2022
2022
2021
Revenues
Crude oil
$
13,100
$
10,582
$
15,163
$
28,263
$
19,441
Natural gas
17,370
9,170
19,848
37,218
14,628
Natural gas liquids
3,206
2,587
4,786
7,992
7,149
Total revenues
33,676
22,339
39,797
73,473
41,218
Operating costs
Lease operating costs
15,041
10,671
19,116
34,157
19,296
Depletion, depreciation, and accretion
3,458
1,224
3,598
7,056
2,752
General and administrative expenses
2,581
1,823
2,472
5,053
3,763
Total operating costs
21,080
13,718
25,186
46,266
25,811
Income (loss) from operations
12,596
8,621
14,611
27,207
15,407
Other income and expenses
Net gain (loss) on derivative contracts
846
-
(603
)
243
-
Interest and other income
7
7
6
13
10
Interest expense
(129
)
(51
)
(243
)
(372
)
(102
)
Income (loss) before income taxes
13,320
8,577
13,771
27,091
15,315
Income tax (expense) benefit
(2,933
)
(1,744
)
(3,064
)
(5,997
)
(3,264
)
Net income (loss)
$
10,387
$
6,833
$
10,707
$
21,094
$
12,051
Net income (loss) per common share:
Basic
$
0.31
$
0.20
$
0.32
$
0.63
$
0.36
Diluted
$
0.31
$
0.20
$
0.32
$
0.62
$
0.36
Weighted average number of common shares outstanding:
Basic
33,174
32,929
33,134
33,154
32,896
Diluted
33,394
33,262
33,319
33,356
33,193
Evolution Petroleum Corp. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts)
December 31, 2022
June 30, 2022
Assets
Current assets
Cash and cash equivalents
$
3,710
$
8,280
Receivables from crude oil, natural gas, and natural gas liquids revenues
18,213
24,043
Derivative contract assets
244
170
Prepaid expenses and other current assets
1,908
3,875
Total current assets
24,075
36,368
Property and equipment, net of depletion, depreciation, and impairment
Oil and natural gas properties, net-full-cost method of accounting, of
which none were excluded from amortization
106,227
110,508
Other assets, net
1,358
1,171
Total assets
$
131,660
$
148,047
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
10,091
$
15,133
Accrued liabilities and other
9,883
11,893
Derivative contract liabilities
49
2,164
State and federal taxes payable
1,151
1,095
Total current liabilities
21,174
30,285
Long term liabilities
Senior secured credit facility
-
21,250
Deferred income taxes
6,744
7,099
Asset retirement obligations
14,455
13,899
Operating lease liability
149
-
Total liabilities
42,522
72,533
Commitments and contingencies
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued and
outstanding 33,808,233 and 33,470,710 shares as of December 31, 2022
and June 30, 2022, respectively
34
33
Additional paid-in capital
43,243
42,629
Retained earnings
45,861
32,852
Total stockholders' equity
89,138
75,514
Total liabilities and stockholders' equity
$
131,660
$
148,047
Evolution Petroleum Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2022
2021
2022
2022
2021
Cash flows from operating activities:
Net income (loss)
$
10,387
$
6,833
$
10,707
$
21,094
$
12,051
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation, and accretion
3,458
1,224
3,598
7,056
2,752
Stock-based compensation
494
330
208
702
528
Settlement of asset retirement obligations
(64
)
-
(7
)
(71
)
-
Deferred income taxes
(319
)
65
(36
)
(355
)
(54
)
Unrealized (gain) loss on derivative contracts
(1,070
)
-
(1,119
)
(2,189
)
-
Accrued settlements on derivative contracts
(699
)
-
(220
)
(919
)
-
Other
4
(3
)
(8
)
(4
)
(7
)
Changes in operating assets and liabilities:
Receivables from crude oil, natural gas, and natural gas liquids revenues
1,309
3,364
6,804
8,113
(4,253
)
Prepaid expenses and other current assets
(349
)
76
33
(316
)
185
Accounts payable and accrued liabilities
(225
)
(2,518
)
(5,173
)
(5,398
)
2,122
State and federal income taxes payable
(2,522
)
(1,070
)
2,578
56
569
Net cash provided by operating activities
10,404
8,301
17,365
27,769
13,893
Cash flows from investing activities:
Acquisition of oil and natural gas properties
-
-
(31
)
(31
)
-
Capital expenditures for oil and natural gas properties
(1,038
)
(136
)
(1,848
)
(2,886
)
(526
)
Net cash used in investing activities
(1,038
)
(136
)
(1,879
)
(2,917
)
(526
)
Cash flows from financing activities:
Common stock dividends paid
(4,059
)
(2,523
)
(4,026
)
(8,085
)
(5,045
)
Common stock repurchases, including stock surrendered for tax withholding
(61
)
-
(26
)
(87
)
(2
)
Repayments of senior secured credit facility
(12,250
)
-
(9,000
)
(21,250
)
-
Net cash used in financing activities
(16,370
)
(2,523
)
(13,052
)
(29,422
)
(5,047
)
Net increase (decrease) in cash and cash equivalents
Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.
We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion and accretion (DD&A), stock-based compensation, ceiling test impairment and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2022
2021
2022
2022
2021
Net income (loss)
$
10,387
$
6,833
$
10,707
$
21,094
$
12,051
Adjusted by:
Interest expense
129
51
243
372
102
Income tax expense (benefit)
2,933
1,744
3,064
5,997
3,264
Depletion, depreciation, and accretion
3,458
1,224
3,598
7,056
2,752
Stock-based compensation
494
330
208
702
528
Unrealized loss (gain) on derivative contracts
(1,070
)
-
(1,119
)
(2,189
)
-
Severance
-
-
74
74
-
Transaction costs
115
-
230
345
-
Adjusted EBITDA
$
16,446
$
10,182
$
17,005
$
33,451
$
18,697
Evolution Petroleum Corp. Non-GAAP Reconciliation - Adjusted Net Income (Unaudited) (In thousands, except per share amounts)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2022
2021
2022
2022
2021
As Reported:
Net income (loss), as reported
$
10,387
$
6,833
$
10,707
$
21,094
$
12,051
Impact of Selected Items:
Unrealized loss (gain) on commodity contracts
(1,070
)
-
(1,119
)
(2,189
)
-
Severance
-
-
74
74
-
Transaction costs
115
-
230
345
-
Selected items, before income taxes
$
(955
)
$
-
$
(815
)
$
(1,770
)
$
-
Income tax effect of selected items(1)
(214
)
-
(183
)
(397
)
-
Selected items, net of tax
$
(741
)
$
-
$
(632
)
$
(1,373
)
$
-
As Adjusted:
Net income (loss), excluding selected items (2)
$
9,646
$
6,833
$
10,075
$
19,721
$
12,051
Undistributed earnings allocated to unvested restricted stock
(151
)
(143
)
(104
)
(256
)
(245
)
Net income (loss), excluding selected items for earnings per share calculation
$
9,495
$
6,690
$
9,971
$
19,465
$
11,806
Net income (loss) per common share - Basic, as reported
$
0.31
$
0.20
$
0.32
$
0.63
$
0.36
Impact of selected items
(0.02
)
-
(0.02
)
(0.04
)
-
Net income (loss) per common share - Basic, excluding selected items (2)
$
0.29
$
0.20
$
0.30
$
0.59
$
0.36
Net income (loss) per common share - Diluted, as reported
$
0.31
$
0.20
$
0.32
$
0.62
$
0.36
Impact of selected items
(0.03
)
-
(0.02
)
(0.04
)
-
Net income (loss) per common share - Diluted, excluding selected items (2)(3)
$
0.28
$
0.20
$
0.30
$
0.58
$
0.36
For the three and six months ended December 31, 2022, represents the tax impact using an estimated tax rate of 22.4%. For the three months ended September 30, 2022, represents the tax impact using an estimated tax rate of 22.5%.
Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner.
The impact of selected items for the three and six months ended December 31, 2022 was calculated based upon weighted average diluted shares of 33.4 million due to the net income (loss), excluding selected items. The impact of selected items for the three months ended September 30, 2022 was calculated based upon weighted average diluted shares of 33.3 million due to the net income (loss), excluding selected items. The impact of selected items for the three and six months ended December 31, 2021 were calculated based upon weighted average diluted shares of 33.3 million and 33.2 million, respectively, due to the net income (loss), excluding selected items.
Evolution Petroleum Corp. Supplemental Information on Oil and Natural Gas Operations (Unaudited) (In thousands, except per unit and per BOE amounts)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2022
2021
2022
2022
2021
Revenues:
Crude oil
$
13,100
$
10,582
$
15,163
$
28,263
$
19,441
Natural gas
17,370
9,170
19,848
37,218
14,628
Natural gas liquids
3,206
2,587
4,786
7,992
7,149
Total revenues
$
33,676
$
22,339
$
39,797
$
73,473
$
41,218
Lease operating costs:
CO2 costs
$
2,007
$
1,897
$
2,199
$
4,206
$
2,814
Ad valorem and production taxes
2,096
1,292
3,263
5,359
2,519
Other lease operating costs
10,938
7,482
13,654
24,592
13,963
Total lease operating costs
$
15,041
$
10,671
$
19,116
$
34,157
$
19,296
Depletion of full cost proved oil and gas properties
$
3,178
$
1,118
$
3,322
$
6,500
$
2,544
Production:
Crude oil (MBBL)
166
150
168
334
284
Natural gas (MMCF)
2,367
1,823
2,494
4,861
3,299
Natural gas liquids (MBBL)
106
2
115
221
160
Equivalent (MBOE)(1)
667
456
699
1,365
994
Average daily production (BOEPD)(1)
7,250
4,957
7,598
7,418
5,402
Average price per unit(2):
Crude oil (BBL)
$
78.92
$
70.55
$
90.26
$
84.62
$
68.45
Natural gas (MCF)
7.34
5.03
7.96
7.66
4.43
NGL (BBL)
30.25
1,293.50
41.62
36.16
44.68
Equivalent (BOE)(1)
$
50.49
$
48.99
$
56.93
$
53.83
$
41.47
Average cost per unit:
CO2 costs
$
3.01
$
4.16
$
3.15
$
3.08
$
2.83
Ad valorem and production taxes
3.14
2.83
4.67
3.93
2.53
Other lease operating costs
16.40
16.41
19.53
18.02
14.05
Total lease operating costs
$
22.55
$
23.40
$
27.35
$
25.03
$
19.41
Depletion of full cost proved oil and gas properties
$
4.76
$
2.45
$
4.75
$
4.76
$
2.56
CO2 costs per MCF
$
1.01
$
0.92
$
1.11
$
1.06
$
0.89
CO2 volumes (MMCF per day, gross)
90.7
94.3
90.0
90.4
71.7
Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.
Evolution Petroleum Corp. Summary of Production Volumes, Average Sales Price and Average Production Costs (Unaudited)
Three Months Ended
December 31,
September 30,
2022
2021
2022
Volume
Price
Volume
Price
Volume
Price
Production:
Crude oil (MBBL)
Jonah Field
9
$
85.21
-
$
-
9
$
94.00
Williston Basin
34
82.31
-
-
37
90.76
Barnett Shale
2
78.11
2
62.00
1
141.00
Hamilton Dome Field
38
66.49
39
62.95
38
78.37
Delhi Field
82
83.50
92
75.05
82
93.31
Other
1
84.31
17
57.74
1
107.49
Total
166
$
78.92
150
$
70.55
168
$
90.26
Natural gas (MMCF)
Jonah Field
950
$
11.00
-
$
-
958
$
8.21
Williston Basin
26
5.15
-
-
18
7.33
Barnett Shale
1,390
4.88
1,813
5.05
1,518
7.81
Other
1
5.95
10
1.20
-
-
Total
2,367
$
7.34
1,823
$
5.03
2,494
$
7.96
Natural gas liquids (MBBL)
Jonah Field
7
$
34.31
-
$
-
12
$
42.00
Williston Basin
7
28.54
-
-
5
42.60
Barnett Shale
70
29.40
(18
)
(100.22
)
75
41.71
Delhi Field
22
32.15
17
43.29
23
40.91
Other
-
-
3
16.00
-
-
Total
106
$
30.25
2
$
1,293.50
115
$
41.62
Equivalent (MBOE) (1)
Jonah Field
175
$
65.75
-
$
-
181
$
50.89
Williston Basin
45
69.36
-
-
45
82.29
Barnett Shale
304
29.62
286
38.74
329
45.96
Hamilton Dome Field
38
66.49
39
62.95
38
78.37
Delhi Field
104
72.38
109
70.10
105
83.04
Other
1
-
22
48.89
1
65.00
Total
667
$
50.49
456
$
48.99
699
$
56.93
Average daily production (BOEPD) (1)
Jonah Field
1,902
-
1,967
Williston Basin
489
-
489
Barnett Shale
3,304
3,109
3,576
Hamilton Dome Field
413
424
413
Delhi Field
1,131
1,185
1,153
Other
11
239
-
Total
7,250
4,957
7,598
Production costs (in thousands, except per BOE)
Lease operating costs
Amount
per BOE
Amount
per BOE
Amount
per BOE
Jonah Field
$
3,042
$
17.41
$
-
$
-
$
2,864
$
15.82
Williston Basin
1,306
29.11
-
-
1,490
33.11
Barnett Shale
5,196
17.13
5,368
18.77
8,853
26.91
Hamilton Dome Field
1,344
35.82
1,478
37.90
1,463
38.50
Delhi Field
4,153
39.79
3,825
35.08
4,446
42.34
Total
$
15,041
$
22.55
$
10,671
$
23.40
$
19,116
$
27.35
Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
View source version on accesswire.com: https://www.accesswire.com/738433/Evolution-Petroleum-Reports-Fiscal-Year-2023-Second-Quarter-Results-and-Declares-Quarterly-Cash-Dividend-for-the-Fiscal-2023-Third-Quarter