Evolution Petroleum Announces Results for the Fiscal 2020 Third Quarter Ended March 31, 2020 and Declares Quarterly Common Stock Dividend

HOUSTON, TX / ACCESSWIRE / May 6, 2020 / Evolution Petroleum (NYSE American:EPM) ("Evolution" or the "Company") announced today financial results and operating highlights for its fiscal third quarter ended March 31, 2020.

Highlights for the Quarter:

Paid 26th consecutive quarterly cash dividend (9th consecutive dividend of $0.10 per share) on common shares and declared the next dividend payment of $0.025 per share, payable on June 30, 2020.
Net income of $3.7 million, marking the 16th consecutive quarter of positive reported net income, inclusive of a $2.8 million income tax benefit related to Enhanced Oil Recovery credits.
Cash flows from operating activities of $4.1 million and $12.2 million for the three and nine months ended March 31, 2020.
Ended the quarter with $20.7 million in cash, an undrawn credit facility, and no debt.

Management Comments on Results

"These are truly unprecedented times where we have seen a combination of a global pandemic, the economic slowdown and reduced demand corresponding to the virtual shutdown of multiple countries, and a substantial decline in oil prices," said Jason Brown, President and CEO. "We believe our long life, low decline assets, coupled with our unique royalty interest, continue to be among the best in the industry as evidenced by our ability to generate positive earnings and cash flows from operations. Our deliberate strategy of having a debt free balance sheet with cash on hand is proving to be a prudent position and we have taken additional steps that will enable us to protect our financial strength and allow us to take advantage in an opportunistic environment. In April 2020 we entered into a financial hedge position that locked in a fixed West Texas Intermediate (WTI) price of $32.00 per barrel on a substantial portion of our anticipated production through December 2020. We also made the decision to lower the dividend temporarily to $0.025 per quarter until the industry can emerge from this current economic climate."

"Although we do not foresee takeaway capacity being a concern, we continue to work diligently with our third-party operators to preserve cash by temporarily shutting-in wells that are uneconomic at current prices to the extent possible, taking into consideration fixed costs and reservoir integrity. We believe these difficult times could lead to new opportunities for the Company to acquire quality reserves at unusually attractive prices and selectively add assets that can grow the Company and support our future dividends."

Financial and Operational Results

Evolution reported total revenues for the quarter of $7.7 million versus $9.4 million in the prior quarter, a 17.8% decrease, primarily driven by a 19.2% decrease in the average realized oil price of $43.16 per barrel compared to $53.38 in the prior quarter. This decrease was partially offset by a 1.9% increase in total volumes primarily due to the inclusion of a full quarter of volumes from Hamilton Dome which was acquired on November 1, 2019. Also contributing to the decrease in total revenues was a decrease of 35.9% in the average realized NGL price of $9.56 per barrel of oil equivalent ("BOE") compared to $14.92 per BOE, in the prior quarter.

At the Delhi Field, the current quarter's lower average realized oil prices were further impacted by approximately $0.2 million for temporary trucking and handling charges due to the planned repair to a section of the oil sales pipeline. The pipeline repair project commenced in mid-November and was completed as scheduled in late January, and all Delhi oil sales were back through pipeline as of February 1, 2020.

Total net production in barrels of oil equivalent per day ("BOEPD") increased 1.9% to 2,164 BOEPD in the current quarter compared to 2,124 BOEPD in the prior quarter. This increase is attributed to the quarterly results including a full quarter of production from the Hamilton Dome field compared to only sixty-one days of production in the prior quarter.

Production costs were $3.9 million in the current quarter, a decrease of 8.0% from $4.2 million in the prior quarter. Delhi CO2 costs decreased $0.6 million, or 42.8%, from the prior quarter. The pipeline that supplies CO2 to the Delhi field was shut in on February 22, 2020 when a pressure loss was detected. Evolution does not have any ownership in this portion of the pipeline. The recycle facilities are operating as usual, and these facilities provide approximately 80% of the injected CO2 volumes. The operator is still assessing the impact to production and does not have a firm estimate as to when the pipeline will be returned to service. Also contributing to the decrease in production costs was the reduction in CO2 price due to a 14.9% reduction in the Company's realized oil prices associated with its Delhi production. Offsetting these decreases was a $0.2 million increase, or 9.4%, in other production costs primarily due to the inclusion of a full quarter of Hamilton Dome.

General and administrative (''G&A'') expenses increased 2.1% to $1.5 million for the current quarter, compared to the prior quarter. Increased G&A expenses are primarily attributable to a slight increase in the Company's professional service expenses.

In the quarter, the Company recorded a one-time income tax benefit of $2.8 million for Enhanced Oil Recovery tax credits impacting our fiscal 2019 and certain amended prior year returns. At March 31, 2020, the Company has a receivable for income tax refunds of approximately $3.2 million.

Net income for the quarter was $3.7 million, or $0.11 per diluted share, a 110% increase, compared to $1.8 million, or $0.05 per diluted share, in the previous quarter.

Capital Spending

During the current quarter, Evolution incurred $0.2 million on capital, primarily for the NGL plant and completion of the water curtain project at Delhi. The Company does not anticipate any material net capital spending for the remainder of fiscal 2020 as all remaining conformance and capital workover plans have been delayed based on the recent decrease in oil prices. The Delhi operator previously reported that its capital was deferred for the Phase V project until 2021. Evolution anticipates all funding for the Company's share of capital expenditures at Delhi and Hamilton Dome will be met from cash flows from operations.

Liquidity and Outlook

Working capital increased by $1.4 million from the prior quarter to $23.1 million. The increase in working capital is primarily due to the large income tax receivable resulting from EOR credits, offset by a decrease in oil and gas receivables due to lower average realized prices. The Company ended the quarter with $20.7 million in cash after paying out $3.3 million in dividends, no debt and an untapped reserve-based credit facility. On April 27, 2020, the Company completed its annual spring redetermination. As expected, the redetermination of the borrowing base resulted in a decrease to $27 million, which remains fully undrawn.

Hedge Update

On April 6, 2020, the Company entered into NYMEX WTI oil swaps covering 1,400 barrels per day (or approximately 42,000 barrels per month), a substantial portion of the Company's anticipated oil production, for the period April 1, 2020 through December 31, 2020, at a fixed swap price of $32.00 per barrel. Although Evolution does not typically employ hedging strategies, the Company believes this partial price protection will enable it to maintain its current financial strength and allow it to continue to look to selectively add to its existing asset base through a combination of cash on hand and availability under its credit facility.

Operations Update

Subsequent to December 31, 2019, oil prices have declined sharply as a result of multiple significant factors impacting supply and demand in the global oil and natural gas markets, including the global pandemic of COVID-19. Most recently, the continued loss of consumer demand has led to a surplus in crude products that has filled the country's storage capacity and created a contango, or an increase from the current month's low price, in the WTI futures curve.

The Company is working with its operating partners to review lifting costs on a well-by-well basis, basing shut-in decisions on wells with low or temporarily negative netbacks, while retaining the operating flexibility to return wells to service as realized prices improve. The Company is continuing to monitor the oil price environment and is working with its operators to plan accordingly for various scenarios.

Cash Dividend on Common Stock

The Company has paid twenty-six consecutive quarterly dividends, with the previous nine at a rate of $0.10 per share. While the long-term strategy towards the dividend remains unchanged, the Board of Directors believes it is prudent to temporarily adjust the current quarterly dividend rate to $0.025 per share in the short term. This change will go into effect in the quarter ending June 30, 2020. This proactive move is being done to maintain the cash balance should the challenging circumstances persist beyond just the next few months as the economic slowdown and the COVID-19 pandemic continue to evolve. Maintaining the cash position also allows the Company greater flexibility as both Management and the Board of Directors believe the current market conditions could create meaningful M&A opportunities to grow the Company. The Company continues to reward shareholders with more than a 3% yield at the current stock price. The long-term plan of distributing a substantial portion of the Company's free cash flow in excess of operating and capital requirements through cash dividends remains a high priority of the overall financial strategy, and the Company expects to return to higher dividend levels after the industry's emergence from the current market turmoil and continue to increase dividends over time, as appropriate. The cash dividend will be paid on June 30, 2020 to common stockholders of record on June 15, 2020.

The CARES Act

On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") into law. The CARES Act is a relief package intended to assist many aspects of the American economy with a focus on those companies lacking access to other sources of liquidity. The Company reviewed all aspects of the act, including the Paycheck Protection Program (PPP) which initially provided up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The decision was made not to participate based on the Company's current financial position, the guidance provided by Congress and the administration and the immaterial amount of the anticipated loan.

Quarterly Conference Call

Evolution Petroleum Corporation will host its earnings conference call for the quarter ended March 31, 2020 on Thursday, May 7, 2020 at 2:00 p.m. Eastern (1:00 p.m. Central). The call will be hosted by Jason Brown, President & Chief Executive Officer and David Joe, Chief Financial Officer. Details for the conference call are as follows:

Date: Thursday, May 7, 2020

Time: 2:00 p.m. Eastern

Call: 844-369-8770 (toll-free United States & Canada)

Call: 862-298-0840 (toll International)

To listen live via webcast over the internet, click the link https://www.webcaster4.com/Webcast/Page/2188/34451 or go to our website at http://www.evolutionpetroleum.com/. A replay will be available two hours after the end of the conference call through June 7, 2020 and will be accessible by calling 877-481-4010 (toll-free United States & Canada); 919-882-2331 (International) with the replay pin number of 34451.

About Evolution Petroleum

Evolution Petroleum is an independent energy company focused on delivering a sustainable dividend yield to its shareholders through the ownership, management and development of producing oil and gas properties. The Company's long-term goal is to build a diversified portfolio of oil and gas assets primarily through acquisition, while seeking opportunities to maintain and increase production through selective development, production enhancement and other exploitation efforts on its properties. Evolution's largest assets are its interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field and its interests in the Hamilton Dome unitized field located in Hot Springs County, Wyoming. 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 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 our expectations are based on business, engineering, geological, financial and operating assumptions that we believe to be reasonable, many factors could cause actual results to differ materially from our expectations and we can give no assurance that our 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:

Jason Brown, President & CEO
(713) 554-1850

David Joe, SVP & CFO
(713) 554-1860

Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)

 
Three Months Ended
March 31,
 
 
Nine Months Ended
March 31,
 

 
2020
 
 
2019
 
 
2020
 
 
2019
 

Revenues

Crude oil

 
$
7,461,823
 
 
$
9,032,032
 
 
$
25,281,564
 
 
$
30,945,359
 

Natural gas liquids

 
 
250,476
 
 
 
468,525
 
 
 
963,054
 
 
 
1,910,395
 

Natural gas

 
 
320
 
 
 
471
 
 
 
1,831
 
 
 
471
 

Total revenues

 
 
7,712,619
 
 
 
9,501,028
 
 
 
26,246,449
 
 
 
32,856,225
 

Operating costs

Production costs

 
 
3,895,544
 
 
 
3,793,008
 
 
 
11,220,238
 
 
 
10,703,606
 

Depreciation, depletion and amortization

 
 
1,399,481
 
 
 
1,558,130
 
 
 
4,310,284
 
 
 
4,710,223
 

General and administrative expenses *

 
 
1,465,780
 
 
 
1,196,935
 
 
 
4,240,330
 
 
 
3,760,767
 

Total operating costs

 
 
6,760,805
 
 
 
6,548,073
 
 
 
19,770,852
 
 
 
19,174,596
 

Income from operations

 
 
951,814
 
 
 
2,952,955
 
 
 
6,475,597
 
 
 
13,681,629
 

Other

Enduro transaction breakup fee

 
 
–
 
 
 
–
 
 
 
–
 
 
 
1,100,000
 

Interest and other income

 
 
41,186
 
 
 
65,831
 
 
 
160,256
 
 
 
172,260
 

Interest expense

 
 
(29,067
)
 
 
(28,789
)
 
 
(87,757
)
 
 
(87,479
)

Income before income taxes

 
 
963,933
 
 
 
2,989,997
 
 
 
6,548,096
 
 
 
14,866,410
 

Income tax provision (benefit)

 
 
(2,746,226
)
 
 
591,122
 
 
 
(1,719,801
)
 
 
2,767,169
 

Net income available to common stockholders

 
$
3,710,159
 
 
$
2,398,875
 
 
$
8,267,897
 
 
$
12,099,241
 

Earnings per common share

Basic

 
$
0.11
 
 
$
0.07
 
 
$
0.25
 
 
 
0.36
 

Diluted

 
$
0.11
 
 
$
0.07
 
 
$
0.25
 
 
 
0.36
 

Weighted average number of common shares

Basic

 
 
33,052,162
 
 
 
33,186,665
 
 
 
33,055,861
 
 
 
33,151,786
 

Diluted

 
 
33,052,162
 
 
 
33,196,197
 
 
 
33,058,446
 
 
 
33,163,661
 

* For the three months ended March 31, 2020 and 2019, non-cash stock-based compensation expenses were $358,591 and $208,665, respectively. For the nine months ended March 31, 2020 and 2019, non-cash stock-based compensation expenses were $926,794 and $678,149, respectively.

Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited)

Assets

Current assets

 
March 31,
2020
 
 
June 30,
2019
 

Cash and cash equivalents

 
$
20,693,234
 
 
$
31,552,533
 

Receivables

 
 
5,222,213
 
 
 
3,168,116
 

Prepaid expenses

 
 
303,375
 
 
 
458,278
 

Total current assets

 
 
26,218,822
 
 
 
35,178,927
 

Oil and natural gas properties, net (full-cost method of accounting)

 
 
67,668,686
 
 
 
60,346,466
 

Other property and equipment, net

 
 
19,449
 
 
 
26,418
 

Total property and equipment

 
 
67,688,135
 
 
 
60,372,884
 

Other assets, net

 
 
311,695
 
 
 
210,033
 

Total assets

 
$
94,218,652
 
 
$
95,761,844
 

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

 
$
2,263,940
 
 
$
2,084,140
 

Accrued liabilities and other

 
 
570,239
 
 
 
537,755
 

State and federal income taxes payable

 
 
274,299
 
 
 
130,799
 

Total current liabilities

 
 
3,108,478
 
 
 
2,752,694
 

Long term liabilities

Deferred income taxes

 
 
11,591,629
 
 
 
11,322,691
 

Asset retirement obligations

 
 
2,499,180
 
 
 
1,560,601
 

Operating lease liability

 
 
99,014
 
 
 
–
 

Total liabilities

 
 
17,298,301
 
 
 
15,635,986
 

Commitments and contingencies

Stockholders' equity

Common stock; par value $0.001; 100,000,000 shares authorized; 32,956,469 and 33,183,730 shares issued and outstanding, respectively

 
 
32,956
 
 
 
33,183
 

Additional paid-in capital

 
 
40,932,577
 
 
 
42,488,913
 

Retained earnings

 
 
35,954,818
 
 
 
37,603,762
 

Total stockholders' equity

 
 
76,920,351
 
 
 
80,125,858
 

Total liabilities and stockholders' equity

 
$
94,218,652
 
 
$
95,761,844
 

Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited)

 
Nine Months Ended
March 31,
 

 
2020
 
 
2019
 

Cash flows from operating activities

Net income

 
$
8,267,897
 
 
$
12,099,241
 

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

 
 
4,310,284
 
 
 
4,710,223
 

Stock-based compensation

 
 
926,794
 
 
 
678,149
 

Settlements of asset retirement obligations

 
 
(76,833
)
 
 
–
 

Deferred income tax expense

 
 
268,938
 
 
 
633,625
 

Other

 
 
35,966
 
 
 
11,367
 

Changes in operating assets and liabilities:

Receivables

 
 
(2,054,097
)
 
 
254,900
 

Prepaid expenses

 
 
154,903
 
 
 
(155,364
)

Accrued liabilities and other

 
 
256,112
 
 
 
123,853
 

Income taxes payable

 
 
143,500
 
 
 
(22,842
)

Net cash provided by operating activities

 
 
12,233,464
 
 
 
18,333,152
 

Cash flows from investing activities

Acquisition of oil and natural gas properties

 
 
(9,337,716
)
 
 
–
 

Capital expenditures for oil and natural gas properties

 
 
(1,354,849
)
 
 
(6,369,363
)

Capital expenditures for other property and equipment

 
 
–
 
 
 
(2,337
)

Net cash used in investing activities

 
 
(10,692,565
)
 
 
(6,371,700
)

Cash flows from financing activities

Cash dividends to common stockholders

 
 
(9,916,841
)
 
 
(9,953,562
)

Common share repurchases, including shares surrendered for tax withholding

 
 
(2,483,357
)
 
 
(138,638
)

Net cash used in financing activities

 
 
(12,400,198
)
 
 
(10,092,200
)

Net change in cash, cash equivalents and restricted cash

 
 
(10,859,299
)
 
 
1,869,252
 

Cash, cash equivalents and restricted cash, beginning of period

 
 
31,552,533
 
 
 
27,681,133
 

Cash and cash equivalents, end of period

 
$
20,693,234
 
 
$
29,550,385
 

Supplemental disclosures of cash flow information:

 
Nine Months Ended
March 31,
 

 
2020
 
 
2019
 

Income taxes paid

 
$
1,150,000
 
 
$
2,362,919
 

Non-cash transactions:

Change in accounts payable used to acquire oil and natural gas properties

 
 
(42,371
)
 
 
(1,748,122
)

Oil and natural gas property costs incurred through recognition of asset retirement obligations and revision of previous estimates

 
 
871,076
 
 
 
84,999
 

Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
 
Three Months Ended
 
 
 
 
 
 
 

 
March 31, 2020
 
 
December 31, 2019
 
 
Variance
 
 
Variance %
 

Oil and gas production

Crude oil revenues

 
$
7,461,823
 
 
$
8,974,237
 
 
$
(1,512,414
)
 
 
(16.9
)%

NGL revenues

 
 
250,476
 
 
 
406,634
 
 
 
(156,158
)
 
 
(38.4
)%

Natural gas revenues

 
 
320
 
 
 
744
 
 
 
(424
)
 
 
(57.0
)%

Total revenues

 
$
7,712,619
 
 
$
9,381,615
 
 
$
(1,668,996
)
 
 
(17.8
)%

Crude oil volumes (Bbl)

 
 
172,901
 
 
 
168,117
 
 
 
4,784
 
 
 
2.8
%

NGL volumes (Bbl)

 
 
26,206
 
 
 
27,260
 
 
 
(1,054
)
 
 
(3.9
)%

Natural gas volumes (Mcf)

 
 
223
 
 
 
356
 
 
 
(133
)
 
 
(37.4
)%

Equivalent volumes (BOE)

 
 
199,144
 
 
 
195,437
 
 
 
3,707
 
 
 
1.9
%

Crude oil (BOPD, net)

 
 
1,879
 
 
 
1,827
 
 
 
52
 
 
 
2.8
%

NGLs (BOEPD, net)

 
 
285
 
 
 
296
 
 
 
(11
)
 
 
(3.7
)%

Natural gas (BOEPD, net)

 
 
–
 
 
 
1
 
 
 
(1
)
 
n.m.
 

Equivalent volumes (BOEPD, net)

 
 
2,164
 
 
 
2,124
 
 
 
40
 
 
 
1.9
%

Crude oil price per Bbl

 
$
43.16
 
 
$
53.38
 
 
$
(10.22
)
 
 
(19.1
)%

NGL price per Bbl

 
 
9.56
 
 
 
14.92
 
 
 
(5.36
)
 
 
(35.9
)%

Natural gas price per Mcf

 
 
1.43
 
 
 
2.09
 
 
 
(0.66
)
 
n.m.
 

Equivalent price per BOE

 
$
38.73
 
 
$
48.00
 
 
$
(9.27
)
 
 
(19.3
)%

CO2 costs

 
$
806,527
 
 
$
1,410,213
 
 
$
(603,686
)
 
 
(42.8
)%

Other production costs

 
 
3,089,017
 
 
 
2,824,392
 
 
 
264,625
 
 
 
9.4
%

Total production costs

 
$
3,895,544
 
 
$
4,234,605
 
 
$
(339,061
)
 
 
(8.0
)%

CO2 costs per BOE

 
$
4.05
 
 
$
7.22
 
 
$
(3.17
)
 
 
(43.9
)%

All other production costs per BOE

 
 
15.51
 
 
 
14.45
 
 
 
1.06
 
 
 
7.3
%

Production costs per BOE

 
$
19.56
 
 
$
21.67
 
 
$
(2.11
)
 
 
(9.7
)%

CO2 costs per mcf

 
$
0.69
 
 
$
0.77
 
 
$
(0.08
)
 
 
(10.4
)%

CO2 volumes (MMcf per day, gross)

 
 
53.9
 
 
 
83.6
 
 
 
(29.7
)
 
 
(35.5
)%

DD&A of proved oil and gas properties

 
$
1,352,203
 
 
$
1,419,333
 
 
$
(67,130
)
 
 
(4.7
)%

Depreciation of other property and equipment

 
 
2,465
 
 
 
2,182
 
 
 
283
 
 
 
13.0
%

Amortization of intangibles

 
 
3,391
 
 
 
3,391
 
 
 
–
 
 
 
–
%

Accretion of asset retirement obligations

 
 
41,422
 
 
 
36,143
 
 
 
5,279
 
 
 
14.6
%

Total DD&A

 
$
1,399,481
 
 
$
1,461,049
 
 
$
(61,568
)
 
 
(4.2
)%

Oil and gas DD&A rate per BOE

 
$
6.79
 
 
$
7.26
 
 
$
(0.47
)
 
 
(6.5
)%

n.m. Not meaningful.

Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Three Months Ended March 31,
 
 
 
 
 
 
 

 
2020
 
 
2019
 
 
Variance
 
 
Variance %
 

Oil and gas production

Crude oil revenues

 
$ 
7,461,823
 
 
$ 
9,032,032
 
 
$ 
(1,570,209
)
 
 
(17.4
)%

NGL revenues

 
 
250,476
 
 
 
468,525
 
 
 
(218,049
)
 
 
(46.5
)%

Natural gas revenues

 
 
320
 
 
 
471
 
 
 
(151
)
 
 
(32.1
)%

Total revenues

 
$ 
7,712,619
 
 
$ 
9,501,028
 
 
$ 
(1,788,409
)
 
 
(18.8
)%

Crude oil volumes (Bbl)

 
 
172,901
 
 
 
152,776
 
 
 
20,125
 
 
 
13.2
%

NGL volumes (Bbl)

 
 
26,206
 
 
 
28,626
 
 
 
(2,420
)
 
 
(8.5
)%

Natural gas volumes (Mcf)

 
 
223
 
 
 
160
 
 
 
63
 
 
 
39.4
%

Equivalent volumes (BOE)

 
 
199,144
 
 
 
181,429
 
 
 
17,715
 
 
 
9.8
%

Crude oil (BOPD, net)

 
 
1,879
 
 
 
1,698
 
 
 
181
 
 
 
10.7
%

NGLs (BOEPD, net)

 
 
285
 
 
 
318
 
 
 
(33
)
 
 
(10.4
)%

Natural gas (BOEPD, net)

 
 
–
 
 
n.m.
 
 
n.m
 
 
n.m.
 

Equivalent volumes (BOEPD, net)

 
 
2,164
 
 
 
2,016
 
 
 
148
 
 
 
7.3
%

Crude oil price per Bbl

 
$ 
43.16
 
 
$ 
59.12
 
 
$ 
(15.96
)
 
 
(27.0
)%

NGL price per Bbl

 
 
9.56
 
 
 
16.37
 
 
 
(6.81
)
 
 
(41.6
)%

Natural gas price per Mcf

 
 
1.43
 
 
 
2.94
 
 
 
(1.51
)
 
n.m.
 

Equivalent price per BOE

 
$ 
38.73
 
 
$ 
52.37
 
 
$ 
(13.64
)
 
 
(26.0
)%

CO2 costs

 
$ 
806,527
 
 
$ 
1,873,720
 
 
$ 
(1,067,193
)
 
 
(57.0
)%

Other production costs

 
 
3,089,017
 
 
 
1,919,288
 
 
 
1,169,729
 
 
 
60.9
%

Total production costs

 
$ 
3,895,544
 
 
$ 
3,793,008
 
 
$ 
102,536
 
 
 
2.7
%

CO2 costs per BOE

 
$ 
4.05
 
 
$ 
10.33
 
 
$ 
(6.28
)
 
 
(60.8
)%

All other production costs per BOE

 
 
15.51
 
 
 
10.58
 
 
 
4.93
 
 
 
46.6
%

Production costs per BOE

 
$ 
19.56
 
 
$ 
20.91
 
 
$ 
(1.35
)
 
 
(6.5
)%

CO2 costs per mcf

 
$ 
0.69
 
 
$ 
0.84
 
 
$ 
(0.15
)
 
 
(17.9
)%

CO2 volumes (MMcf per day, gross)

 
 
53.9
 
 
 
103.3
 
 
 
(49.4
)
 
 
(47.8
)%

DD&A of proved oil and gas properties

 
$ 
1,352,203
 
 
$ 
1,523,990
 
 
$ 
(171,787
)
 
 
(11.3
)%

Depreciation of other property and equipment

 
 
2,465
 
 
 
4,338
 
 
 
(1,873
)
 
 
(43.2
)%

Amortization of intangibles

 
 
3,391
 
 
 
3,391
 
 
 
–
 
 
 
–
%

Accretion of asset retirement obligations

 
 
41,422
 
 
 
26,411
 
 
 
15,011
 
 
 
56.8
%

Total DD&A

 
$ 
1,399,481
 
 
$ 
1,558,130
 
 
$ 
(158,649
)
 
 
(10.2
)%

Oil and gas DD&A rate per BOE

 
$ 
6.79
 
 
$ 
8.40
 
 
$ 
(1.61
)
 
 
(19.2
)%

Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Nine Months Ended March 31,
 
 
 
 
 
 
 

 
2020
 
 
2019
 
 
Variance
 
 
Variance %
 

Oil and gas production

Crude oil revenues

 
$ 
25,281,564
 
 
$ 
30,945,359
 
 
$ 
(5,663,795
)
 
 
(18.3
)%

NGL revenues

 
 
963,054
 
 
 
1,910,395
 
 
 
(947,341
)
 
 
(49.6
)%

Natural gas revenues

 
 
1,831
 
 
 
471
 
 
 
1,360
 
 
n.m.
 

Total revenues

 
$ 
26,246,449
 
 
$ 
32,856,225
 
 
$ 
(6,609,776
)
 
 
(20.1
)%

Crude oil volumes (Bbl)

 
 
490,125
 
 
 
475,043
 
 
 
15,082
 
 
 
3.2
%

NGL volumes (Bbl)

 
 
79,982
 
 
 
76,728
 
 
 
3,254
 
 
 
4.2
%

Natural gas volumes (Mcf)

 
 
935
 
 
 
160
 
 
 
775
 
 
n.m.
 

Equivalent volumes (BOE)

 
 
570,263
 
 
 
551,798
 
 
 
18,465
 
 
 
3.3
%

Crude oil (BOPD, net)

 
 
1,782
 
 
 
1,734
 
 
 
48
 
 
 
2.8
%

NGLs (BOEPD, net)

 
 
291
 
 
 
280
 
 
 
11
 
 
 
3.9
%

Natural gas (BOEPD, net)

 
 
1
 
 
n.m.
 
 
1
 
 
n.m.
 

Equivalent volumes (BOEPD, net)

 
 
2,074
 
 
 
2,014
 
 
 
60
 
 
 
3.0
%

Crude oil price per Bbl

 
$ 
51.58
 
 
$ 
65.14
 
 
$ 
(13.56
)
 
 
(20.8
)%

NGL price per Bbl

 
 
12.04
 
 
 
24.90
 
 
 
(12.86
)
 
 
(51.6
)%

Natural gas price per Mcf

 
 
1.96
 
 
 
2.94
 
 
 
(0.98
)
 
n.m.
 

Equivalent price per BOE

 
$ 
46.03
 
 
$ 
59.54
 
 
$ 
(13.51
)
 
 
(22.7
)%

CO2 costs

 
$ 
3,501,507
 
 
$ 
4,862,502
 
 
$ 
(1,360,995
)
 
 
(28.0
)%

Other production costs

 
 
7,718,731
 
 
 
5,841,104
 
 
 
1,877,627
 
 
 
32.1
%

Total production costs

 
$ 
11,220,238
 
 
$ 
10,703,606
 
 
$ 
516,632
 
 
 
4.8
%

CO2 costs per BOE

 
$ 
6.14
 
 
$ 
8.81
 
 
$ 
(2.67
)
 
 
(30.3
)%

All other production costs per BOE

 
 
13.54
 
 
 
10.59
 
 
 
2.95
 
 
 
27.9
%

Production costs per BOE

 
$ 
19.68
 
 
$ 
19.40
 
 
$ 
0.28
 
 
 
1.4
%

CO2 costs per mcf

 
$ 
0.77
 
 
$ 
0.90
 
 
$ 
(0.13
)
 
 
(14.4
)%

CO2 volumes (MMcf per day, gross)

 
 
69.1
 
 
 
82.9
 
 
 
(13.8
)
 
 
(16.6
)%

DD&A of proved oil and gas properties

 
$ 
4,189,290
 
 
$ 
4,612,053
 
 
$ 
(422,763
)
 
 
(9.2
)%

Depreciation of other property and equipment

 
 
6,969
 
 
 
12,624
 
 
 
(5,655
)
 
 
(44.8
)%

Amortization of intangibles

 
 
10,173
 
 
 
10,173
 
 
 
–
 
 
 
–
%

Accretion of asset retirement obligations

 
 
103,852
 
 
 
75,373
 
 
 
28,479
 
 
 
37.8
%

Total DD&A

 
$ 
4,310,284
 
 
$ 
4,710,223
 
 
$ 
(399,939
)
 
 
(8.5
)%

Oil and gas DD&A rate per BOE

 
$ 
7.35
 
 
$ 
8.36
 
 
$ 
(1.01
)
 
 
(12.1
)%

SOURCE: Evolution Petroleum Corporation

ReleaseID: 588415