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Evolution Petroleum (EPM) - 2022 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended March 31, 2022, were 25,689,104,asignificantincreasefrom25,689,104, a significant increase from 7,635,748 in the same period of 2021, representing a growth of approximately 236%[14]. - Crude oil revenues reached 14,868,519forthethreemonthsendedMarch31,2022,comparedto14,868,519 for the three months ended March 31, 2022, compared to 7,076,965 in the prior year, indicating an increase of about 110%[14]. - The company reported a net income of 5,705,811forthethreemonthsendedMarch31,2022,comparedtoanetincomeof5,705,811 for the three months ended March 31, 2022, compared to a net income of 1,191,001 for the same period in 2021, reflecting a growth of approximately 378%[14]. - Basic earnings per share for the three months ended March 31, 2022, were 0.17,upfrom0.17, up from 0.04 in the same period of 2021, marking a 325% increase[14]. - Net income attributable to common stockholders for the nine months ended March 31, 2022, was 17,756,384,asignificantrecoveryfromalossof17,756,384, a significant recovery from a loss of 18,654,154 in the same period of the previous year[17]. - Total revenues for the nine months ended March 31, 2022, reached 66.9million,a252.266.9 million, a 252.2% increase from 19.0 million in the same period of 2021[186]. Assets and Liabilities - Total current assets increased to 32,137,077asofMarch31,2022,from32,137,077 as of March 31, 2022, from 18,108,374 as of June 30, 2021, representing an increase of approximately 77.5%[12]. - Total assets grew to 116,207,239asofMarch31,2022,comparedto116,207,239 as of March 31, 2022, compared to 76,705,662 as of June 30, 2021, indicating an increase of about 51.6%[12]. - Total liabilities increased to 51,447,213asofMarch31,2022,from51,447,213 as of March 31, 2022, from 22,110,859 as of June 30, 2021, reflecting an increase of approximately 132.5%[12]. - The company’s cash and cash equivalents rose to 13,368,538asofMarch31,2022,comparedto13,368,538 as of March 31, 2022, compared to 5,276,510 as of June 30, 2021, representing an increase of about 153%[12]. - The company’s retained earnings increased to 21,354,940asofMarch31,2022,from21,354,940 as of March 31, 2022, from 12,020,064 as of June 30, 2021, reflecting a growth of approximately 77.5%[12]. Cash Flow and Expenditures - Net cash provided by operating activities increased to 28,691,050fortheninemonthsendedMarch31,2022,comparedto28,691,050 for the nine months ended March 31, 2022, compared to 2,559,382 for the same period in 2021[17]. - The company reported capital expenditures for oil and natural gas properties of 825,872,upfrom825,872, up from 183,690 in the previous year[17]. - Cash and cash equivalents at the end of the period were 13,368,538,downfrom13,368,538, down from 17,039,538 at the end of the previous year[17]. - The company reported a net cash used in investing activities of 28,139,918fortheninemonthsendedMarch31,2022,comparedto28,139,918 for the nine months ended March 31, 2022, compared to 2,508,690 in the previous year[17]. - Total company capital expenditures for the remainder of fiscal year 2022 is expected to be in the range of 0.5millionto0.5 million to 1.0 million[155]. Acquisitions and Investments - The Company completed the Williston Basin Acquisition on January 14, 2022, for a cash consideration of 25.7million,fundedbycashonhandand25.7 million, funded by cash on hand and 16.0 million in borrowings[46]. - The Jonah Field Acquisition closed on April 1, 2022, with cash consideration at closing totaling 27.7million[48].Thecompanyacquirednonoperatedworkinginterestsin73producingwellsintheWillistonBasinforcashconsiderationof27.7 million[48]. - The company acquired non-operated working interests in 73 producing wells in the Williston Basin for cash consideration of 25.7 million[127]. Production and Revenue Breakdown - Natural gas revenue increased significantly to 6,070,866forthethreemonthsendedMarch31,2022,comparedtoonly6,070,866 for the three months ended March 31, 2022, compared to only 141 in the same period of 2021[39]. - Crude oil revenue for the three months ended March 31, 2022, was 14,868,519,upfrom14,868,519, up from 7,076,965 in the same period of 2021, reflecting a growth of about 110%[39]. - Equivalent volumes increased by 206.2% to 1,495,709 BOE for the nine months ended March 31, 2022, compared to 488,549 BOE in the prior year[186]. - Average realized crude oil price per barrel increased by 79.1% to 76.69fortheninemonthsendedMarch31,2022,comparedto76.69 for the nine months ended March 31, 2022, compared to 42.81 in the prior year[198]. Derivative Contracts and Hedging - The Company reported a total net loss on derivative contracts of 2,591,465forthethreemonthsendedMarch31,2022[103].Theunrealizedlossonderivativecontractsforthesameperiodwas2,591,465 for the three months ended March 31, 2022[103]. - The unrealized loss on derivative contracts for the same period was 2,398,237, indicating significant market volatility[103]. - The company’s derivative contracts are primarily with large utilities with investment-grade credit ratings, minimizing credit risk[113]. - The company entered into natural gas collar arrangements covering approximately 25% of natural gas production for the subsequent twelve months, with weighted average floor prices of 5.25/MMBtuandceilingsrangingfrom5.25/MMBtu and ceilings ranging from 6.67/MMBtu to 7.50/MMBtu[118].DividendsandStockholderReturnsCommonstockdividendspaidamountedto7.50/MMBtu[118]. Dividends and Stockholder Returns - Common stock dividends paid amounted to 8,421,508 for the nine months ended March 31, 2022, compared to 2,666,334inthesameperiodof2021[17].Thecompanydeclaredaquarterlycashdividendof2,666,334 in the same period of 2021[17]. - The company declared a quarterly cash dividend of 0.10 per share of common stock, payable on June 30, 2022[120]. - The company had 33,719,621 shares of common stock outstanding, with cumulative cash dividends paid exceeding $82.9 million since December 2013[63][64]. Operational Challenges and Responses - The Company is continuously monitoring the impacts of the COVID-19 pandemic on its operations and financial results[26]. - The Company has implemented a business continuity plan to allow employees to work securely from home or the corporate office in Houston, Texas[27].