Financial Performance - Total revenues for the three months ended December 31, 2021, were $22,338,361, a significant increase from $5,768,152 in the same period of 2020, representing a growth of approximately 287%[15]. - Net income attributable to common stockholders for the six months ended December 31, 2021, was $12,050,573, compared to a net loss of $19,845,155 for the same period in 2020, indicating a turnaround in profitability[19]. - The company reported earnings per share of $0.20 for the three months ended December 31, 2021, compared to a loss per share of $0.38 in the same period of 2020[15]. - As of December 31, 2021, the net income attributable to common stockholders was $12,050,573, compared to a net income of $6,832,172 for the three months ended December 31, 2020, reflecting a significant increase[24][25]. - Generated net income of $6.8 million ($0.20 per diluted share) in the current quarter, an increase of 30.9% from the prior quarter net income of $5.2 million ($0.16 per diluted share)[113]. - Net income attributable to common stockholders for the three months ended December 31, 2021, increased by $19.5 million to $6.8 million compared to the same year-ago quarter[162]. Revenue Sources - Oil revenue for the six months ended December 31, 2021, was $19,440,608, compared to $10,841,944 for the same period in 2020, marking an increase of 79%[38]. - The company recorded natural gas liquids revenue of $2,586,758 for the three months ended December 31, 2021, up from $305,200 in the same period of 2020, reflecting an increase of 748%[38]. - Oil revenues increased by 79.3% to $19.4 million, while natural gas liquids revenues surged by 1,271.6% to $7.1 million compared to the same period in 2020[165]. Assets and Liabilities - Cash and cash equivalents increased to $13,597,156 as of December 31, 2021, up from $5,276,510 as of June 30, 2021, reflecting a growth of approximately 158%[11]. - Total assets rose to $87,161,108 as of December 31, 2021, compared to $76,705,662 as of June 30, 2021, marking an increase of about 13.5%[11]. - Accounts payable increased to $8,188,421 as of December 31, 2021, from $5,609,367 as of June 30, 2021, representing a rise of approximately 46%[11]. - Total accrued liabilities decreased from $947,045 as of June 30, 2021, to $572,260 as of December 31, 2021, a reduction of 40%[51]. - The company’s total prepaid expenses and other current assets were $852,636 as of December 31, 2021, down from $1,037,259 as of June 30, 2021, indicating a decrease of 18%[43]. Stockholder Equity and Dividends - The company’s total stockholders' equity increased to $62,126,491 as of December 31, 2021, compared to $54,594,803 as of June 30, 2021, reflecting a growth of about 13.7%[11]. - Common stock dividends paid for the three months ended December 31, 2021, amounted to $2,522,381, compared to $837,264 for the same period in 2020, representing an increase of over 200%[25]. - The total stockholders' equity at December 31, 2021, was $62,126,491, up from $57,487,023 at September 30, 2021, indicating a growth of approximately 8.5%[24][25]. - A quarterly cash dividend of $0.10 per share was declared on February 3, 2022, payable on March 31, 2022[102]. Operational Efficiency - Operating costs for the three months ended December 31, 2021, were $13,717,940, down from $21,678,418 in the same period of 2020, a decrease of approximately 37%[15]. - The company incurred development capital expenditures of $0.6 million for the six months ended December 31, 2021, compared to $0.2 million for the same period in 2020, representing a 200% increase[44]. - Total lease operating costs rose to $10.67 million, a 255.5% increase from the prior year, with lease operating costs per BOE increasing to $23.40[153]. - The company reported a 9.9% decrease in total DD&A expense, with the oil and natural gas DD&A rate per BOE dropping by 69.0%[156]. Acquisitions and Future Plans - The company plans to continue focusing on the development of oil and natural gas properties to enhance future revenue streams[10]. - The company aims to build a diversified portfolio of oil and natural gas assets primarily through acquisitions and selective development[27]. - The company completed the acquisition of non-operated oil and natural gas assets in the Williston Basin for $25.9 million, funded with cash on hand and $16.0 million in borrowings[101]. - The company entered into a definitive purchase agreement to acquire non-operated interests in the Jonah Field for $29.4 million, expected to close on or about April 1, 2022[104]. Tax and Compliance - For the six months ended December 31, 2021, the company recognized an income tax expense of $3.3 million with an effective tax rate of 21.3%, compared to an income tax benefit of $5.5 million and an effective tax rate of 21.7% for the same period in 2020[75]. - The company anticipates receiving a $2.4 million receivable for income tax refunds related to Enhanced Oil Recovery credits within the next twelve months[77]. - The company maintained compliance with financial covenants under the Senior Secured Credit Facility, including a maximum total leverage ratio of not more than 3.00 to 1.00[85]. Market Conditions and Risks - The company is actively monitoring the impacts of the COVID-19 pandemic on its operations and has implemented business continuity plans to minimize disruptions[30]. - The company is exposed to interest rate risk but does not use derivative instruments to manage this exposure[186].
Evolution Petroleum (EPM) - 2022 Q2 - Quarterly Report