Evolution Petroleum (EPM) - 2023 Q1 - Quarterly Report

Financial Performance - Generated revenue of $39.8 million and net income of$10.7 million for the first quarter of fiscal year 2023[139] - For the three months ended September 30, 2022, the company reported net income of $10.7 million, a 105.2$5.2 million in the same period of 2021[170] - Total revenues for the current quarter were $39.8 million, up 110.8$18.9 million in the prior year, driven by a 29.9% increase in average daily equivalent production[173] - Cash flows provided by operating activities rose by $11.8 million to$17.4 million, primarily due to increased revenues[165] - Income tax expense for the quarter was $3.1 million on net income before taxes of$13.8 million, compared to $1.5 million on$6.7 million in the prior year[189] Production and Operations - Production averaged 7,598 net BOEPD during the same period[140] - Average daily production increased from 5,848 BOEPD in the year-ago quarter to 7,598 BOEPD, primarily due to acquisitions in the Williston Basin and Jonah Field[173] - The company experienced a 27.2% decrease in NGL production, primarily due to ethane rejection at the Barnett Shale properties[173] Expenses and Costs - CO2 costs per BOE rose to $3.15, a significant increase from$1.70 in the prior year, driven by higher purchased CO2 volumes and costs[176] - Ad valorem and production taxes increased to $3.3 million from$1.2 million, reflecting higher oil and natural gas prices and increased production volumes[174] - Depletion expense rose by 133.0% from $1.4 million to$3.3 million due to increased production, with a per unit cost of $4.75 per BOE[180] - General and administrative expenses increased by 30.0$1.7 million to $2.3 million, primarily due to salary and consulting fees[184] - Interest expense increased by$0.2 million due to higher borrowings on the Senior Secured Credit Facility[186] Capital and Financing - Returned $4.0 million in cash dividends to shareholders, totaling over$90.3 million since the inception of the dividend program in December 2013[140] - The company has a share repurchase program authorized for up to $25 million through December 31, 2024[138] - The Senior Secured Credit Facility has a maximum capacity of$50.0 million, with $12.3 million drawn as of September 30, 2022[149] - Net cash flows used in financing activities increased by$10.5 million, primarily due to a $9.0 million repayment of borrowings[167] Price Realization - The average realized price per BOE increased by approximately$21.84, or 62.2%, compared to the previous year, reflecting higher oil and natural gas prices[173] - Average realized crude oil price per Bbl increased by 36.5% from $66.11 to$90.26[187] - Average realized natural gas price per Mcf increased by 115.1% from $3.70 to$7.96[187] Future Outlook - Anticipated capital expenditures for fiscal year 2023 are projected to be between $6.5 million and$9.5 million, excluding potential acquisitions[161] - The company expects energy prices to remain volatile and is monitoring commodity prices for potential derivative financial instrument usage[192]