Evolution Petroleum (US:EPM)2025-02-11 21:17Production Performance - Fiscal Q2 production increased 10% year-over-year to 6,935 average BOEPD, with oil production up 13%, natural gas up 9%, and NGLs up 9%[5] - Average daily production for the six months ended December 31, 2024, was 7,212 BOEPD, an increase from 6,380 BOEPD in the same period of 2023[38] - Average daily production increased to 6,935 BOEPD from 6,304 BOEPD in the previous quarter[41] - The company reported a total of 638 MBOE in equivalent production for the three months ended December 31, 2024, compared to 580 MBOE in the same period of 2023, indicating a production increase[38] - Total crude oil production for the three months ended December 31, 2024, was 179 MBBL, an increase from 159 MBBL in the previous quarter, with an average sales price of $65.72 per barrel[41] - Natural gas production reached 2,125 MMCF, up from 1,951 MMCF in the previous quarter, with an average sales price of $2.73 per MCF[41] - The company reported a significant increase in production from the SCOOP/STACK area, with crude oil production of 35 MBBL and an average price of $70.52 per barrel for the current quarter[41] - The Delhi Field produced 60 MBBL of crude oil at an average price of $68.66 per barrel, showing a decrease from 78 MBBL at $79.02 per barrel in the previous quarter[41] Financial Performance - Total revenues decreased 4% to $20.3 million compared to $21.0 million in the year-ago quarter, primarily due to a 12% decrease in average realized commodity prices[9] - The Company reported a net loss of $1.8 million or $(0.06) per share, compared to net income of $1.1 million or $0.03 per share in the year-ago period[13] - Adjusted EBITDA was $5.7 million compared to $6.8 million in the year-ago period, primarily due to decreased revenue from lower commodity prices[14] - Total revenues for the three months ended December 31, 2024, were $20,275,000, a decrease of 3.5% from $21,024,000 in the same period of 2023[27] - Net income for the three months ended December 31, 2024, was a loss of $1,825,000 compared to a net income of $1,082,000 in the same period of 2023[27] - Adjusted EBITDA for the six months ended December 31, 2024, was $13,813,000, an increase of 2.0% from $13,535,000 in the same period of 2023[33] - The company incurred interest expense of $764,000 for the three months ended December 31, 2024, compared to $34,000 in the same period of 2023[33] - The company paid common stock dividends of $4,082,000 during the three months ended December 31, 2024[30] - The unrealized loss on commodity contracts for the three months ended December 31, 2024, was $1,368 thousand, impacting the net income significantly[34] Costs and Expenses - Lease operating costs increased to $12.8 million, driven by the addition of SCOOP/STACK properties, with total LOE decreasing 6% to $20.05 per BOE[10] - The company reported lease operating costs of $12,793,000 for the three months ended December 31, 2024, up from $12,358,000 in the same period of 2023[27] - Lease operating costs for the three months ended December 31, 2024, totaled $12,793 thousand, compared to $12,358 thousand in the same period of 2023, an increase of about 3.5%[38] - Total production costs for the three months ended December 31, 2024, were $12,793,000, with an average cost of $20.05 per BOE, compared to $12,358,000 and $21.30 per BOE in the previous quarter[43] - The average production cost for the Barnett Shale was $18.03 per BOE, an increase from $16.31 per BOE in the previous quarter[43] Liquidity and Assets - Cash and cash equivalents totaled $11.7 million, with total liquidity of $22.2 million as of December 31, 2024[21] - Cash and cash equivalents increased to $11,667,000 as of December 31, 2024, from $6,446,000 at the beginning of the period[30] - Total current assets rose to $26,987,000 as of December 31, 2024, compared to $21,723,000 as of June 30, 2024[29] - Total liabilities increased to $83,915,000 as of December 31, 2024, from $81,750,000 as of June 30, 2024[29] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.12 per share for the fiscal 2025 third quarter, marking the 46th consecutive quarterly dividend[22] - The weighted average number of common shares outstanding for the three months ended December 31, 2024, was 32,934,000[27] - The net income per common share, diluted, as reported for the three months ended December 31, 2024, was $(0.06), compared to $0.03 for the same period in 2023[34] Strategic Initiatives - The Company is evaluating multiple acquisition opportunities to enhance long-term growth strategy and improve cash flow generation[8] Commodity Prices - Average realized commodity price decreased 12% to $31.78 per BOE, driven by a 19% decrease in realized natural gas prices year-over-year[16] - The average price per barrel of crude oil for the three months ended December 31, 2024, was $65.72, down from $73.96 in the same period of 2023, reflecting a decrease of approximately 16.0%[38] - The average sales price for natural gas liquids was $25.90 per barrel, compared to $28.48 per barrel in the previous quarter, with total production of 105 MBBL[41]