[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company reported a significant financial turnaround with a net income of $5.2 million, driven by increased revenues [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets grew to $85.7 million, and stockholders' equity increased to $57.5 million as of September 30, 2021 Balance Sheet Items | Balance Sheet Items | September 30, 2021 | June 30, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $28,295,343 | $18,108,374 | | **Total Assets** | $85,733,043 | $76,705,662 | | **Total Current Liabilities** | $12,735,658 | $6,594,160 | | **Total Liabilities** | $28,246,020 | $22,110,859 | | **Total Stockholders' Equity** | $57,487,023 | $54,594,803 | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The company achieved a net income of $5.2 million, reversing a prior-year loss, fueled by a 237% surge in revenues Key Metrics | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Total Revenues** | $18,879,010 | $5,595,376 | | **Income (Loss) from Operations** | $6,786,122 | ($9,429,720) | | **Net Income (Loss)** | $5,218,401 | ($7,135,148) | | **Diluted EPS** | $0.16 | ($0.22) | - The company recorded **no impairment of proved property** in the current quarter, whereas a **$9.6 million impairment charge** was recognized in the prior-year quarter[15](index=15&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash from operations increased significantly to $5.6 million, resulting in a $2.7 million net increase in cash Cash Flow Activity | Cash Flow Activity | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $5,592,745 | $1,147,241 | | **Net Cash from Investing Activities** | ($390,370) | ($153,205) | | **Net Cash from Financing Activities** | ($2,524,007) | ($831,194) | | **Net Increase in Cash** | $2,678,368 | $162,842 | | **Cash at End of Period** | $7,954,878 | $19,825,370 | [Notes to Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) Key disclosures include revenue growth, the absence of impairment charges, an increased dividend, and a larger credit facility - At September 30, 2020, the company recorded a **$9.6 million ceiling test impairment charge**; no impairment was recorded at September 30, 2021[47](index=47&type=chunk)[46](index=46&type=chunk) - The company paid a cash dividend of **$0.075 per share** for the first quarter of fiscal 2022, compared to $0.025 per share in the prior-year quarter[54](index=54&type=chunk) - Subsequent to the quarter end, the company amended its Senior Secured Credit Facility, increasing the **borrowing base to $50 million**[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes strong performance to higher commodity prices and production, resulting in higher net income and cash flow [Executive Overview](index=20&type=section&id=Executive%20Overview) Production rose 33% to 5,843 BOEPD, net income doubled sequentially, and the credit facility borrowing base increased - Produced **5,843 net barrels of oil equivalent per day (BOEPD)**, a **33% increase** from the prior quarter, mainly due to the Barnett Shale acquisition[108](index=108&type=chunk) - Generated **net income of $5.2 million** ($0.16 per diluted share), more than doubling the $2.2 million from the prior quarter[108](index=108&type=chunk)[111](index=111&type=chunk) - The Senior Secured Credit Facility's borrowing base was **increased by $20 million to a total of $50 million**, effective November 9, 2021[108](index=108&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened with increased cash, a larger credit facility, and a higher quarterly dividend - As of September 30, 2021, the company had **$8.0 million in cash and cash equivalents**[122](index=122&type=chunk) - The Senior Secured Credit Facility had a $30 million borrowing base with $4 million drawn, which was subsequently **increased to $50 million**[123](index=123&type=chunk) - The quarterly dividend was **increased to $0.075 per share**, effective for the quarter ended September 30, 2021[129](index=129&type=chunk) [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Revenues surged 237% year-over-year due to higher production volumes and commodity prices, leading to significant net income Revenue by Product | Revenue by Product | Q1 FY2022 | Q1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | Oil | $8,858,463 | $5,379,161 | 65% | | Natural Gas Liquids | $4,562,218 | $216,026 | 2,012% | | Natural Gas | $5,458,329 | $189 | n.m. | | **Total Revenues** | **$18,879,010** | **$5,595,376** | **237%** | Realized Prices | Realized Prices | Q1 FY2022 | Q1 FY2021 | % Change | | :--- | :--- | :--- | :--- | | Oil price per Bbl | $66.14 | $36.93 | 79% | | NGL price per Bbl | $28.95 | $9.11 | 218% | | Natural gas price per Mcf | $3.70 | $1.45 | 155% | - Total lease operating costs **increased 260% to $8.6 million**, primarily due to the inclusion of the Barnett Shale assets[142](index=142&type=chunk)[144](index=144&type=chunk) - The company recorded **no proved property impairment** in the current quarter, compared to a **$9.6 million impairment** in the year-ago quarter[151](index=151&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) The company reports no material changes to its market risk disclosures from its most recent Annual Report on Form 10-K - Information about market risks **did not change materially** from the disclosures in the Annual Report on Form 10-K for the year ended June 30, 2021[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The Chief Executive Officer and Chief Financial Officer concluded that as of September 30, 2021, the company's **disclosure controls and procedures are effective**[160](index=160&type=chunk) - **No changes in internal controls** over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[162](index=162&type=chunk) [Part II. Other Information](index=30&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - The company has **no legal proceedings** to report[164](index=164&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company refers to the risk factors disclosed in its Annual Report on Form 10-K, with no new risks reported - The company refers to the risk factors detailed in its **Annual Report on Form 10-K** for the year ended June 30, 2021[165](index=165&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company acquired shares from employees to cover tax obligations and has $1.0 million remaining in its repurchase program - The company received **353 shares of common stock** from employees to pay payroll taxes arising from the vesting of restricted stock at an average price of **$4.53 per share**[166](index=166&type=chunk)[167](index=167&type=chunk) - The company has a share repurchase program with a maximum value of **$1.0 million remaining** that may be purchased[167](index=167&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) Subsequent to the quarter's end, the company amended its credit facility to increase the borrowing base to $50 million - On November 9, 2021, the company entered into the Eighth Amendment to its Senior Secured Credit Facility, which **increased the borrowing base to $50 million**[170](index=170&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications and XBRL data files - The exhibits filed with the report include the **Eighth Amendment to the Credit Agreement**, CEO/CFO certifications, and Inline XBRL documents[173](index=173&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-32942 EVOLUTION PETROLEUM CORPORATION (Exact name of registrant as specified in its charter) Nevada 41-1781991 (State or other jurisd ...

Financial Data and Key Metrics Changes - The company recorded revenues of $5.8 million for the quarter, a 3.1% increase from $5.6 million in Q1 [13][18] - The net loss for the quarter was $12.7 million, or $0.38 per diluted share, primarily due to a $15.2 million noncash impairment [24] - Cash flow exceeded the quarterly dividend before hedge payments, ending the quarter with $19 million in cash and no debt [18][26] Business Line Data and Key Metrics Changes - Lease operating expenses increased by 25% to $3 million, driven by resumed CO2 purchases at Delhi [20] - Realized NGL prices increased by 36% to an average of $12.36 per BOE [19] Market Data and Key Metrics Changes - The company noted a decrease in the 12-month trailing average price for crude oil used in their ceiling test, dropping from $43.63 per barrel to $39.54 per barrel [21] - The operator at the Delhi field has delayed the Phase V development project for 12 to 24 months due to current oil price volatility [25] Company Strategy and Development Direction - The company is focused on growing through acquisition opportunities and maintaining a strong balance sheet to ensure long-term sustainability [8][9] - The management is strategically looking for additional low production decline, long-lived reserves to enhance assets and support dividends [31] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the recent increase in commodity prices but acknowledged ongoing volatility due to the COVID-19 pandemic [7][8] - The company is encouraged by the plans of their operators for 2021 and expects increased production as oil prices rebound [27][29] Other Important Information - The company has issued its 29th consecutive cash dividend of $0.025 per share and plans to increase the next dividend by 20% to $0.03 per share [14][18] - The last of the company's hedges rolled off in December, allowing them to participate in the recent uptick in prices [12][22] Q&A Session Summary Question: Comments on CO2 injection volumes for the year - Management expects CO2 injection volumes to stabilize around 75 million cubic feet per day, with potential increases in late September or October [35][36] Question: Incremental production from curtailed or shut-in assets - Management indicated that Hamilton Dome is expected to see an increase in production with the activation of 11 wells, potentially pushing production over 2,000 barrels per day [39] Question: M&A opportunities and dynamics - The company is seeing an increase in marketed deals and a tightening of the bid-ask spread, indicating a more favorable environment for acquisitions [46][48] Question: Role of the board in M&A processes - The board has been actively involved in the M&A process, meeting weekly to review potential deals and ensuring thorough technical evaluations [54][57] Question: Gas-centric acquisition possibilities - The company is still considering gas projects but emphasizes the need for favorable midstream marketing conditions [63][66] Question: ESG concerns and potential CapEx - Management believes they are in a favorable position regarding ESG issues and do not foresee significant CapEx requirements to address environmental concerns [70][72]

[Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for the period ended December 31, 2020, reflect a significant downturn compared to the prior year, reporting a net loss of **$19.8 million** driven by lower commodity prices and impairment charges [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets decreased to **$64.7 million** by December 31, 2020, from **$92.1 million** at June 30, 2020, primarily due to a decline in oil and natural gas properties Consolidated Condensed Balance Sheet Summary (Unaudited) | Balance Sheet Items | Dec 31, 2020 ($) | June 30, 2020 ($) | | :--- | :--- | :--- | | **Total Current Assets** | 25,055,350 | 25,316,698 | | **Total Property and Equipment, net** | 39,284,754 | 66,529,920 | | **Total Assets** | **64,702,008** | **92,138,236** | | **Total Current Liabilities** | 3,481,123 | 4,278,859 | | **Total Liabilities** | **11,473,282** | **18,013,754** | | **Total Stockholders' Equity** | **53,228,726** | **74,124,482** | [Consolidated Condensed Statements of Operations](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) The company reported a net loss of **$19.8 million** for the six months ended December 31, 2020, primarily due to a **$24.8 million** impairment charge and a 39% decrease in total revenues Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended Dec 31, 2020 ($) | Three Months Ended Dec 31, 2019 ($) | Six Months Ended Dec 31, 2020 ($) | Six Months Ended Dec 31, 2019 ($) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | 5,768,152 | 9,381,615 | 11,363,528 | 18,533,830 | | **Proved Property Impairment** | 15,189,459 | — | 24,792,079 | — | | **Income (Loss) from Operations** | (15,910,266) | 2,249,764 | (25,339,986) | 5,523,783 | | **Net Income (Loss)** | **(12,710,007)** | **1,764,918** | **(19,845,155)** | **4,557,738** | | **Diluted EPS** | **(0.38)** | **0.05** | **(0.60)** | **0.14** | [Consolidated Condensed Statements of Cash Flows](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased to **$1.2 million** for the six months ended December 31, 2020, from **$8.2 million** in the prior-year period Cash Flow Summary (Unaudited) | Cash Flow Activity | Six Months Ended Dec 31, 2020 ($) | Six Months Ended Dec 31, 2019 ($) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | 1,223,957 | 8,174,058 | | **Net Cash from Investing Activities** | (182,935) | (10,418,590) | | **Net Cash from Financing Activities** | (1,668,458) | (8,372,033) | | **Net Decrease in Cash** | (627,436) | (10,616,565) | | **Cash at End of Period** | 19,035,092 | 20,935,968 | [Notes to Unaudited Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) Notes detail significant accounting policies, including a **$24.8 million** impairment, credit facility reduction to **$23 million**, and reduced dividend payments - The company recorded ceiling test impairment charges of **$15.2 million** for the three months ended Dec 31, 2020, and **$9.6 million** for the quarter ended Sep 30, 2020, driven by a decrease in the 12-month average WTI price from **$47.37** to **$39.54** at Dec 31, 2020[48](index=48&type=chunk)[49](index=49&type=chunk) - Quarterly cash dividends were reduced from **$0.10 per share** in Q2 FY2020 to **$0.025 per share** in Q2 FY2021, with total dividends paid in the six months ended Dec 31, 2020, being **$1.7 million** compared to **$6.6 million** in the prior-year period[56](index=56&type=chunk) - On November 2, 2020, the company's credit facility borrowing base was redetermined and reduced to **$23 million**, with no amounts outstanding as of December 31, 2020, and maturity extended to April 9, 2024[79](index=79&type=chunk)[80](index=80&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the impact of low oil prices and COVID-19, leading to a **$15.2 million** impairment, while highlighting strong liquidity and a recent dividend increase [Executive Overview](index=20&type=section&id=Executive%20Overview) The company recorded a **$12.7 million** net loss for Q2 FY2021, heavily impacted by a **$15.2 million** impairment, yet increased its next dividend and maintained strong liquidity - Key highlights for Q2 FY2021 include paying the 29th consecutive quarterly cash dividend and increasing the next dividend by **20%**, ending the quarter with **$19.0 million** in cash and no debt, resuming CO2 purchases at the Delhi field, and amending the credit agreement for more flexible covenants[105](index=105&type=chunk) - A **$15.2 million** impairment was recorded at December 31, 2020, as capitalized costs exceeded the full cost valuation ceiling, driven by a decrease in the 12-month trailing average crude oil price from **$43.63/bbl** at September 30 to **$39.54/bbl** at December 31[111](index=111&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$19.0 million** in cash and an undrawn **$23 million** credit facility, with a recent dividend increase and delayed Delhi field development Liquidity Position as of Dec 31, 2020 | Component | Amount ($) | | :--- | :--- | | Cash and cash equivalents | 19.0 million | | Credit Facility Borrowing Base | 23.0 million | | Borrowings Outstanding | 0 | - The Board of Directors adjusted the quarterly dividend from **$0.10** to **$0.025 per share** in the quarter ending June 30, 2020, and subsequently increased it by **20%** to **$0.03 per share** for the quarter ending March 31, 2021[125](index=125&type=chunk) - The Phase V development project at the Delhi field, with associated future development costs of approximately **$8.6 million**, has been delayed by the operator for twelve to twenty-four months, with an expected start in calendar year 2022 or 2023[128](index=128&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Revenues for the three months ended December 31, 2020, fell **38.5%** to **$5.8 million**, resulting in a **$12.7 million** net loss due to lower prices, production, and a **$15.2 million** impairment Three-Month Operational Comparison (Q2 FY21 vs Q2 FY20) | Metric | Q2 2021 | Q2 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $5.8M | $9.4M | (38.5)% | | Equivalent Volumes (BOEPD) | 1,797 | 2,124 | (15.4)% | | Equivalent Price per BOE | $34.87 | $48.00 | (27.4)% | | Lease Operating Costs | $3.0M | $4.2M | (29.0)% | | Net Income (Loss) | ($12.7M) | $1.8M | (820.1)% | Six-Month Operational Comparison (H1 FY21 vs H1 FY20) | Metric | H1 2021 | H1 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $11.4M | $18.5M | (38.7)% | | Equivalent Volumes (BOEPD) | 1,819 | 2,017 | (9.8)% | | Equivalent Price per BOE | $33.94 | $49.94 | (32.0)% | | Lease Operating Costs | $5.4M | $7.3M | (26.2)% | | Net Income (Loss) | ($19.8M) | $4.6M | (535.4)% | - The company recorded a proved property impairment of **$24.8 million** during the six months ended December 31, 2020, primarily due to the decline in oil prices over the preceding twelve months, which lowered the full cost accounting ceiling[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company's market risk disclosures remain consistent with its 2020 Form 10-K, with no open derivative contracts as of December 31, 2020 - The company is exposed to energy commodity price risk, counterparty risk, and interest rate risk, monitoring commodity prices to assess the need for derivative instruments but not engaging in speculative trading[168](index=168&type=chunk)[170](index=170&type=chunk) - As of December 31, 2020, the company did not have any remaining open derivative contracts[169](index=169&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of December 31, 2020, with no material changes to internal controls - The CEO and CFO concluded that as of December 31, 2020, the company's disclosure controls and procedures were effective[172](index=172&type=chunk) - There were no changes in internal controls over financial reporting during the quarter ended December 31, 2020, that have materially affected, or are reasonably likely to materially affect, internal controls[175](index=175&type=chunk) [Part II. Other Information](index=32&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - None[177](index=177&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) The company refers to its Annual Report on Form 10-K for the fiscal year ended June 30, 2020, for a detailed description of its risk factors - For a detailed description of risk factors, the company refers to its Annual Report on Form 10-K for the year ended June 30, 2020[178](index=178&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not purchase any common stock under its share repurchase program during the quarter ended December 31, 2020 - The company did not purchase any common stock in the open market during the quarter ended December 31, 2020[179](index=179&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including the Sixth Amendment to the Credit Agreement and CEO/CFO certifications - Key exhibits filed include the Sixth Amendment to the Credit Agreement, CEO/CFO certifications (Rule 13a-14(a) and Section 1350), and XBRL data files[182](index=182&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-32942 EVOLUTION PETROLEUM CORPORATION (Exact name of registrant as specified in its charter) Nevada 41-178199 ...

Financial Data and Key Metrics Changes - The company recorded revenues of $5.6 million for the first fiscal quarter of 2021, representing a 67% increase from the prior quarter [9] - The average daily net production decreased by approximately 4% to 18.41 barrels of oil equivalent per day due to CO2 purchase suspensions and maintenance downtime [16] - A significant non-cash impairment charge of $9.6 million was recorded, primarily due to lower oil prices [19][22] - The net loss for the quarter was $7.1 million, or approximately $0.22 per diluted share, compared to a net loss of $2.3 million, or $0.07 per diluted share, in the prior quarter [26] Business Line Data and Key Metrics Changes - The company focused on cash flow and total shareholder return, maintaining a long-standing dividend program, marking the 28th consecutive quarter of cash dividends [8][10] - Lease operating expenses increased by about 4.9% to $2.4 million, primarily due to increased activity at Hamilton Dome and Delhi fields [24] Market Data and Key Metrics Changes - The average realized oil price was approximately $37 per barrel, with Delhi's realized oil price about $2.20 per barrel below WTI [16][17] - The company expects continued volatility in oil prices due to the global COVID-19 pandemic affecting supply and demand [7] Company Strategy and Development Direction - The company aims to create long-term shareholder returns and is well-positioned to take advantage of potential opportunities arising from the current market conditions [8] - The company plans to invest in the development of Phase 5 at Delhi, with expected expenditures of approximately $1.9 million in fiscal 2021 [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the company's asset portfolio despite the current challenges in the oil and gas sector [14][23] - The company anticipates a gradual increase in production as CO2 volumes are restored at Delhi, which is expected to help arrest the decline in oil production [36] Other Important Information - The company maintains a strong liquidity position with $19.8 million in cash and an undrawn credit facility of $23 million [30] - The CFO, David Joe, announced his retirement, with Ryan Stash appointed as his successor [32][34] Q&A Session Summary Question: Can you touch on deal flow and asset characteristics? - Management indicated interest in both oil and gas assets, particularly long-life oil assets like Hamilton Dome and Delhi, while also exploring gas opportunities in East Texas and North Louisiana [45][46] Question: What is the outlook for cash taxes? - Management expects not to be a cash taxpayer in the current fiscal year due to projected losses, but cash taxes could return if oil prices rise significantly [50][51] Question: Will the income tax receivable be collected? - Management confirmed expectations to receive the income tax refund from federal taxpayers, primarily related to previous tax credits [52][53] Question: Can gross production volumes be provided? - Management stated that gross production volumes would be included in the upcoming 10-Q filing [55]

Evolution Petroleum Corporation (NYSE:EPM) Q4 2020 Earnings Conference Call September 10, 2020 10:00 AM ET Company Participants David Joe - Chief Financial Officer Jason Brown - President and Chief Executive Officer Conference Call Participants John White - ROTH Capital Jeff Grampp - Northland Capital David Snow - Energy Equities Incorporated Andrew Bond - AGP Alliance Global Rich Howard - Boiling Point Resources Operator Good day, ladies and gentlemen and welcome to Evolution Petroleum Fourth Quarter and F ...

Forward-Looking Statements and Risk Factors - The company emphasizes the importance of forward-looking statements and the associated risk factors that could lead to actual results differing materially from expectations[11]. - The company does not undertake to update forward-looking statements except as required by law, advising stakeholders to review periodic filings for further disclosures[12]. Financial Performance - Total revenues for the year ended June 30, 2020, were $29,599,296, a decrease of 31.5% compared to $43,229,621 for the year ended June 30, 2019[346]. - Net income attributable to common shareholders for the year ended June 30, 2020, was $5,937,072, down from $15,377,066 in the previous year, representing a decline of 61.4%[346]. - The company reported a basic and diluted earnings per share of $0.18 for the year ended June 30, 2020, compared to $0.46 for the year ended June 30, 2019[346]. - Net cash provided by operating activities decreased to $12,396,651 in 2020 from $24,057,900 in 2019, representing a decline of 48.6%[352]. - Revenues for the first quarter of fiscal 2020 were $9,152,215, compared to $12,307,079 in the first quarter of fiscal 2019, reflecting a decrease of approximately 25.5%[502]. - The net income attributable to common shareholders for the first quarter of fiscal 2020 was a loss of $2,786,164, compared to a profit of $5,795,801 in the first quarter of fiscal 2019[502]. - Basic earnings per common share for the first quarter of fiscal 2020 were $(0.07), compared to $0.18 in the first quarter of fiscal 2019[502]. Cash and Assets - Cash and cash equivalents decreased to $19,662,528 as of June 30, 2020, from $31,552,533 as of June 30, 2019, reflecting a decline of 37.7%[343]. - Total assets as of June 30, 2020, were $92,138,236, down from $95,761,844 as of June 30, 2019, indicating a decrease of 3.3%[343]. - The company’s retained earnings decreased to $32,800,080 as of June 30, 2020, from $37,603,762 as of June 30, 2019, reflecting a decline of 13.5%[343]. - The company’s prepaid expenses and other current assets increased to $491.686 million as of June 30, 2020, from $458.278 million in the previous year[408]. Liabilities and Debt - Total liabilities increased to $18,013,754 as of June 30, 2020, compared to $15,635,986 as of June 30, 2019, marking an increase of 15.2%[343]. - The company completed its spring redetermination of the credit facility on April 27, 2020, resulting in a decrease of the borrowing base to $27 million, with borrowings limited to approximately $8 million as of June 30, 2020[458]. - The company had no borrowings outstanding under the credit facility as of June 30, 2020, and was in compliance with all financial covenants[459]. Production and Costs - Production costs for the year ended June 30, 2020, were $13,505,502, a slight decrease from $14,266,784 in the previous year[346]. - Total costs incurred for oil and natural gas activities amounted to $11,768,226 for the year ended June 30, 2020, compared to $5,229,235 for the year ended June 30, 2019, representing a significant increase[486]. - Development costs incurred during the fiscal year were $1,431,444, down from $2,089,139 in the previous year[501]. Revenue Sources - Crude oil revenues decreased to $28,578,879 in 2020 from $40,779,052 in 2019, representing a decline of 30%[395]. - The company derived 87% of its net oil and natural gas revenues from Plains Marketing L.P. for the year ended June 30, 2020[467]. Derivative Instruments and Risk Management - The company entered into NYMEX WTI oil swaps covering approximately 42,000 barrels per month at a fixed swap price of $32.00 per barrel for the period of April 2020 through December 2020[332]. - The company did not post collateral under its derivative contracts as of June 30, 2020, indicating an uncollateralized trade[333]. - The company recorded a net gain of $1,383,204 on derivative contracts for the year ended June 30, 2020, with realized losses of $(528,139) and unrealized gains of $1,911,343[474]. Tax and Regulatory Matters - The company recognized an income tax benefit of $(2.2) million for the year ended June 30, 2020, reflecting an effective tax rate of (58.1)%[449]. - The company recorded a net tax benefit of $2.8 million during the current year, primarily due to Enhanced Oil Recovery credits[449]. Shareholder Activities - Common stock dividends paid decreased to $10,740,754 in 2020 from $13,272,058 in 2019, a reduction of 19.0%[355]. - Common share repurchases totaled $2,483,357 in 2020, significantly higher than $156,791 in 2019[355]. - The company repurchased 440,666 common shares at an average price of $5.51 per share under its share repurchase program during the year ended June 30, 2020[426]. Asset Retirement Obligations - The company recorded asset retirement obligations of $2.589 million as of June 30, 2020, an increase from $1.611 million in the previous year[419]. - Significant Level 3 inputs for asset retirement obligations include costs for plugging and abandoning wells and surface restoration[486]. Reserves and Future Cash Flows - Proved oil and natural gas reserves as of June 30, 2020, were estimated at 10,218,826 BOE, an increase from 8,980,492 BOE as of June 30, 2019[492]. - The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves was $62,490,836 as of June 30, 2020, down from $126,732,042 as of June 30, 2019, indicating a decrease of approximately 50.7%[497]. - Future cash inflows for 2020 were estimated at $399,358,481, compared to $524,037,200 for 2019, reflecting a decrease of about 23.7%[497]. Employee Compensation and Benefits - The company has a 401(k) Retirement Plan with matching contributions totaling $41,127 for the year ended June 30, 2020[469]. - The total stock-based compensation expense recognized for the years ended June 30, 2020, and 2019 was $1,285,663 and $888,162, respectively[443].

AEVOLUTION Petroleum Corporation Jason Brown President & Chief Executive Officer June 2020 Disclaimer NYSE American: EPM Forward Looking Statements This presentation contains "forward-looking statements." Such statements may relate to capital expenditures, drilling and exploitation activities, production efforts and sales volumes, Proved, Probable, and Possible reserves, operating and administrative costs, future operating or financial results, cash flow and anticipated liquidity, business strategy and pote ...

Table of Contents Title of Each Class Trading Symbol(s) Name of Each Exchange On Which Registered Common Stock, $0.001 par value EPM NYSE American UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commiss ...