Evolution Petroleum Reports Full Year and Fourth Quarter Fiscal 2023 Results and Declares Quarterly Cash Dividend for the Fiscal 2024 First Quarter
- Increased revenue and net income
- Maintained liquidity and balance sheet strength
- Increased production by 19% YoY
- Decreased Q4 production and total revenue
- Increased LOE and G&A expenses
HOUSTON, Sept. 12, 2023 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced its financial and operating results for its fiscal fourth quarter and full year ended June 30, 2023. Evolution also declared a quarterly cash dividend of
Key Highlights
- Increased revenue
18% over the prior year to$128.5 million , increased net income year-over-year ("YoY") by8% to$35.2 million , and increased earnings per share8% to$1.04 per diluted share. - Generated Adjusted EBITDA1 of
$60.1 million for fiscal 2023 – an increase of14% YoY. - Produced 7,104 net barrels of oil equivalent per day ("BOEPD") in fiscal 2023 (
19% increase YoY). - Paid quarterly dividends totaling
$0.48 per common share for the current fiscal year – a37% increase from fiscal 2022. - Repurchased
$3.9 million of common shares under our previously announced share repurchase plan, resulting in a total of$20 million returned to shareholders in fiscal year 2023 through dividends and repurchases. - Maintained significant liquidity and balance sheet strength at fiscal year-end:
- Paid down
$21.25 million in borrowings, ending the year with zero debt outstanding; - Increased cash and cash equivalents to from
$8.3 million to$11.0 million ; and, - Maintained
$50 million available borrowing capacity under the senior secured credit facility, increasing liquidity from$37.0 million to$61.0 million .
- Paid down
Kelly Loyd, President and Chief Executive Officer, commented, "Despite a challenging fiscal fourth quarter that was impacted by much lower quarter over quarter price realizations and extended downtime and maintenance across multiple fields, we are pleased to announce our 2023 fiscal full-year results, in which we recorded our highest ever levels of revenue, production and net income. It was a year of transition that saw EPM strengthen its team of highly valued professionals, fully integrate and absorb previous acquisitions, and focus on process, setting the Company and our shareholders up for future success.”
Mr. Loyd concluded, “Our commitment to providing long-term total returns to our shareholders is underscored by our consistent dividend history and share repurchases. We paid our 39th consecutive quarterly dividend in June, totaling
Cash Dividend on Common Stock
On September 11, 2023, Evolution’s Board of Directors declared a cash dividend of
(1) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the “Non-GAAP Reconciliation” tables later in this release for more information on the most comparable GAAP measures.
Financial and Operational Results for the Year Ended June 30, 2023
Years Ended | |||||||||||
June 30, | |||||||||||
($ in millions) | 2023 | 2022 | % Change | ||||||||
Average BOEPD | 7,104 | 5,953 | 19 | % | |||||||
Revenues ($M) | $ | 128,514 | $ | 108,926 | 18 | % | |||||
Net Income ($M) | $ | 35,217 | $ | 32,628 | 8 | % | |||||
Adjusted Net Income(1)($M) | $ | 33,992 | $ | 34,835 | (2 | ) | % | ||||
Adjusted EBITDA(2)($M) | $ | 60,084 | $ | 52,772 | 14 | % |
(1) Adjusted Net Income is a non-GAAP financial measure; see the “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measures.
(2) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measures.
Total revenues increased
Lease operating costs (“LOE”) increased to
Depletion, depreciation, and accretion ("DD&A") expense increased
General and administrative ("G&A") expenses increased
Stock-based compensation increased
Net income was
Adjusted EBITDA increased to
Financial and Operational Results for the Quarter Ended June 30, 2023
Total production for the fourth quarter of fiscal 2023 was 6,484 net BOEPD, including 1,736 barrels per day (“BOPD”) of crude oil; 22,462 thousand cubic feet per day (“MCFPD”), or 3,748 BOEPD, of natural gas; and 1,000 BOEPD of natural gas liquids (“NGLs”).
- Oil decreased
6% from 1,856 BOPD in the prior quarter, primarily due to downtime at Delhi Field properties where production was shut in for approximately one week to upgrade the facilities and install a heat exchanger to increase plant efficiencies during extreme summer and winter temperatures. - Natural gas production decreased
8% from 24,489 MCFPD, or 4,077 BOEPD, in the prior quarter primarily due to downtime in the Barnett Shale properties associated with extreme summer weather conditions along with gathering line maintenance and compressor issues. - NGL production decreased
13% from 1,156 BOEPD in the prior quarter, primarily attributed to downtime at our Delhi Field properties to install the heat exchanger and also perform NGL plant maintenance. At our Barnett Shale properties our NGL volumes were affected by the same factors that impacted our natural gas production.
Evolution reported
LOE decreased by
DD&A expense was
The Company's G&A expenses, including stock-based compensation, remained flat at
Net income for the current quarter was
Adjusted EBITDA was
Fiscal Year-End 2023 Reserves
Summary of Reserves as of June 30, 2023 | ||||||||
Oil | Natural Gas | NGLs | Total Reserves | |||||
Reserve Category | (MBbls) | (MMcf) | (MBbls) | (MBOE) | ||||
Proved Developed Producing | 7,062 | 90,103 | 5,263 | 27,343 | ||||
Proved Non-Producing | 122 | 29 | 9 | 136 | ||||
Proved Undeveloped | 2,687 | 2,431 | 605 | 3,697 | ||||
Total Proved | 9,871 | 92,563 | 5,877 | 31,176 | ||||
Probable Developed(1) | 1,568 | — | 904 | 2,472 | ||||
Probable Undeveloped(2) | 4,730 | 2,450 | 613 | 5,751 | ||||
Total Probable | 6,298 | 2,450 | 1,517 | 8,223 | ||||
Possible Developed(1) | 1,501 | — | 1,105 | 2,606 | ||||
Possible Undeveloped(2) | 9,941 | 8,976 | 2,148 | 13,585 | ||||
Total Possible | 11,442 | 8,976 | 3,253 | 16,191 |
(1) Probable and Possible Developed Reserves are associated with Delhi Field only.
(2) Probable and Possible Undeveloped Reserves are associated with Williston Basin only.
Total Proved Reserves by Asset | ||||||||
Oil | Natural Gas | NGLs | Total Proved Reserves | |||||
Asset | (MBbls) | (MMcf) | (MBbls) | (MBOE) | ||||
Jonah Field | 346 | 34,743 | 417 | 6,554 | ||||
Williston Basin | 4,219 | 3,655 | 886 | 5,714 | ||||
Barnett Shale | 90 | 54,165 | 3,380 | 12,498 | ||||
Hamilton Dome Field | 2,331 | — | — | 2,331 | ||||
Delhi Field | 2,885 | — | 1,194 | 4,079 | ||||
Total Proved | 9,871 | 92,563 | 5,877 | 31,176 |
Proved Reserves
For the Company’s fiscal year ended June 30, 2023, SEC proved reserves were 31.2 MMBOE, down
As of June 30, 2023, our PUD reserves included 3.7 MMBOE of reserves and approximately
The SEC pricing (twelve-month first day of the month average prices) used in the report for the fiscal year ended June 30, 2023, was
Our proved reserves consist of
Probable and Possible Reserves
The Company's fiscal year ended June 30, 2023, probable and possible reserves were 24.4 MMBOE, up
Developed probable and possible categories at Delhi Field represent greater potential recoveries from the CO2 flood than those included in the proved reserves. Consequently, while both the probable and possible reserves are
Operations Update
At Delhi Field, the heat exchanger project was successfully installed and operational during the fiscal fourth quarter. This project is expected to reduce expenses and improve operational efficiency. During this quarter we approved authorization for expenditure elections to drill two vertical wells in the Delhi Field. These wells were recently drilled and completed during the first quarter of fiscal 2024 and are awaiting results.
In the Williston, the Birdbear sidetrack project was pushed back due to a delay in the NDIC’s approval of operations. The Bakken vertical recompletion and fracture stimulation completed in third quarter fiscal 2023 is online and producing approximately 20 gross BOPD.
At Hamilton Dome, facility consolidation to improve operating efficiency and reduce emissions is ongoing. We expect the project to be finished in fiscal year 2024.
Balance Sheet, Liquidity, and Capital Spending
On June 30, 2023, cash and cash equivalents totaled
During fiscal 2023, the Company fully funded operations, development capital expenditures, cash dividends, and share repurchases through cash generated from operations and working capital. For the year ended June 30, 2023, Evolution paid
Based on discussions with our operators, we expect capital workover projects to continue in all the fields. Overall, for fiscal year 2024, we expect budgeted capital expenditures to be in the range of
Conference Call
As previously announced, Evolution Petroleum will host a conference call on Wednesday, September 13, 2023, at 1:00 p.m. Central Time to review its fiscal year-end 2023 financial and operating results. To join by phone, please dial (844) 481-2813 (Toll-free) or (412) 317-0677 (International) and ask to join the Evolution Petroleum Corporation call. To join online, click the following link https://event.choruscall.com/mediaframe/webcast.html?webcastid=xsIVjdfv. A webcast replay will be available through September 13, 2024, via the webcast link above and on Evolution's website at www.ir.evolutionpetroleum.com.
About Evolution Petroleum
Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Properties include non-operated interests in the following areas: the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field located in Hot Springs County, Wyoming; the Delhi Holt-Bryant Unit in the Delhi Field in Northeast Louisiana; as well as small overriding royalty interests in four onshore Texas wells. Visit www.evolutionpetroleum.com for more information.
Cautionary Statement
All forward-looking statements contained in this press release regarding the Company's current expectations, potential results, and future plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company’s expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations and can give no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Our reserves as of June 30, 2023 were estimated by Netherland Sewell & Associates, Inc. and DeGolyer & MacNaughton, global independent reservoir engineering firms. All reserve estimates are continually subject to revisions based on production history, results of additional exploration and development, price changes and other factors. The SEC's current rules allow oil and natural gas companies to disclose not only proved reserves, but also probable and possible reserves that meet the SEC's definitions of such terms. Estimates of probable and possible reserves by their nature are much more speculative than estimates of proved reserves. These non-proved reserve categories are subject to greater uncertainties and the likelihood of recovering those reserves is subject to substantially greater risk. When estimating the amount of oil and natural gas liquids recoverable from a particular reservoir, probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered, generally described as having a
Investor Relations
(713) 935-0122
info@evolutionpetroleum.com
Evolution Petroleum Corporation Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
Three Months Ended | Years Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||
Revenues | ||||||||||||||||||||
Crude oil | $ | 10,982 | $ | 18,374 | $ | 11,799 | $ | 51,044 | $ | 52,683 | ||||||||||
Natural gas | 4,984 | 18,475 | 21,598 | 63,800 | 39,174 | |||||||||||||||
Natural gas liquids | 2,208 | 5,171 | 3,470 | 13,670 | 17,069 | |||||||||||||||
Total revenues | 18,174 | 42,020 | 36,867 | 128,514 | 108,926 | |||||||||||||||
Operating costs | ||||||||||||||||||||
Lease operating costs | 11,818 | 17,277 | 13,570 | 59,545 | 48,657 | |||||||||||||||
Depletion, depreciation, and accretion | 3,834 | 3,564 | 3,383 | 14,273 | 8,053 | |||||||||||||||
General and administrative expenses | 2,263 | 1,557 | 2,267 | 9,583 | 6,835 | |||||||||||||||
Total operating costs | 17,915 | 22,398 | 19,220 | 83,401 | 63,545 | |||||||||||||||
Income (loss) from operations | 259 | 19,622 | 17,647 | 45,113 | 45,381 | |||||||||||||||
Other income (expense) | ||||||||||||||||||||
Net gain (loss) on derivative contracts | — | (1,172 | ) | 270 | 513 | (3,763 | ) | |||||||||||||
Interest and other income | 95 | 83 | 13 | 121 | 95 | |||||||||||||||
Interest expense | (54 | ) | (300 | ) | (32 | ) | (458 | ) | (572 | ) | ||||||||||
Income (loss) before income taxes | 300 | 18,233 | 17,898 | 45,289 | 41,141 | |||||||||||||||
Income tax (expense) benefit | (134 | ) | (3,361 | ) | (3,941 | ) | (10,072 | ) | (8,513 | ) | ||||||||||
Net income (loss) | $ | 166 | $ | 14,872 | $ | 13,957 | $ | 35,217 | $ | 32,628 | ||||||||||
Net income (loss) per common share: | ||||||||||||||||||||
Basic | $ | - | $ | 0.44 | $ | 0.42 | $ | 1.05 | $ | 0.97 | ||||||||||
Diluted | $ | - | $ | 0.44 | $ | 0.41 | $ | 1.04 | $ | 0.96 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||||
Basic | 32,618 | 33,010 | 33,013 | 32,985 | 32,952 | |||||||||||||||
Diluted | 32,891 | 33,450 | 33,156 | 33,190 | 33,306 |
Evolution Petroleum Corporation Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts) | ||||||
June 30, 2023 | June 30, 2022 | |||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 11,034 | $ | 8,280 | ||
Receivables from crude oil, natural gas, and natural gas liquids revenues | 7,884 | 24,043 | ||||
Derivative contract assets | — | 170 | ||||
Prepaid expenses and other current assets | 2,277 | 3,875 | ||||
Total current assets | 21,195 | 36,368 | ||||
Property and equipment, net of depletion, depreciation, and impairment | ||||||
Oil and natural gas properties, net—full-cost method of accounting, of | ||||||
which none were excluded from amortization | 105,781 | 110,508 | ||||
Other assets | 1,341 | 1,171 | ||||
Total assets | $ | 128,317 | $ | 148,047 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | 5,891 | $ | 15,133 | ||
Accrued liabilities and other | 6,027 | 11,893 | ||||
Derivative contract liabilities | — | 2,164 | ||||
State and federal taxes payable | 365 | 1,095 | ||||
Total current liabilities | 12,283 | 30,285 | ||||
Long term liabilities | ||||||
Senior secured credit facility | — | 21,250 | ||||
Deferred income taxes | 6,803 | 7,099 | ||||
Asset retirement obligations | 17,012 | 13,899 | ||||
Operating lease liability | 125 | — | ||||
Total liabilities | 36,223 | 72,533 | ||||
Commitments and contingencies | ||||||
Stockholders' equity | ||||||
Common stock; par value | ||||||
outstanding 33,247,523 and 33,470,710 shares as of June 30, 2023 | ||||||
and 2022, respectively | 33 | 33 | ||||
Additional paid-in capital | 40,098 | 42,629 | ||||
Retained earnings | 51,963 | 32,852 | ||||
Total stockholders' equity | 92,094 | 75,514 | ||||
Total liabilities and stockholders' equity | $ | 128,317 | $ | 148,047 |
Evolution Petroleum Corporation
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
Three Months Ended | Years Ended | |||||||||||||||||||
June 30, | March 31, | June 30, | ||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net income (loss) | $ | 166 | $ | 14,872 | $ | 13,957 | $ | 35,217 | $ | 32,628 | ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||
Depletion, depreciation, and accretion | 3,834 | 3,564 | 3,383 | 14,273 | 8,053 | |||||||||||||||
Stock-based compensation | 484 | (743 | ) | 453 | 1,639 | 125 | ||||||||||||||
Settlement of asset retirement obligations | (55 | ) | — | (48 | ) | (174 | ) | — | ||||||||||||
Deferred income taxes | (196 | ) | 742 | 255 | (296 | ) | 1,142 | |||||||||||||
Unrealized (gain) loss on derivative contracts | — | (404 | ) | 195 | (1,994 | ) | 1,994 | |||||||||||||
Accrued settlements on derivative contracts | 211 | 726 | (211 | ) | (919 | ) | 919 | |||||||||||||
Other | (1 | ) | (3 | ) | 1 | (4 | ) | (10 | ) | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Receivables from crude oil, natural gas, and natural gas liquids revenues | 1,958 | (6,428 | ) | 8,370 | 18,441 | (11,427 | ) | |||||||||||||
Prepaid expenses and other current assets | 288 | (459 | ) | (664 | ) | (692 | ) | (538 | ) | |||||||||||
Accounts payable and accrued liabilities and other | (5,343 | ) | 10,987 | (2,748 | ) | (13,489 | ) | 18,516 | ||||||||||||
State and federal taxes payable | (1,793 | ) | 915 | 1,007 | (730 | ) | 1,058 | |||||||||||||
Net cash provided by operating activities | (447 | ) | 23,769 | 23,950 | 51,272 | 52,460 | ||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Acquisition of oil and natural gas properties | — | (27,498 | ) | — | (31 | ) | (53,342 | ) | ||||||||||||
Capital expenditures for oil and natural gas properties | (2,727 | ) | (705 | ) | (1,348 | ) | (6,961 | ) | (1,531 | ) | ||||||||||
Acquisition deposit | — | 1,470 | — | — | — | |||||||||||||||
Net cash used in investing activities | (2,727 | ) | (26,733 | ) | (1,348 | ) | (6,992 | ) | (54,873 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Common stock dividends paid | (3,992 | ) | (3,375 | ) | (4,029 | ) | (16,106 | ) | (11,796 | ) | ||||||||||
Common stock repurchases, including stock surrendered for tax withholding | (187 | ) | — | (3,896 | ) | (4,170 | ) | (38 | ) | |||||||||||
Borrowings under senior secured credit facility | — | 17,000 | — | — | 34,000 | |||||||||||||||
Repayments of senior secured credit facility | — | (15,750 | ) | — | (21,250 | ) | (16,750 | ) | ||||||||||||
Net cash (used in) provided by financing activities | (4,179 | ) | (2,125 | ) | (7,925 | ) | (41,526 | ) | 5,416 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (7,353 | ) | (5,089 | ) | 14,677 | 2,754 | 3,003 | |||||||||||||
Cash and cash equivalents, beginning of period | 18,387 | 13,369 | 3,710 | 8,280 | 5,277 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 11,034 | $ | 8,280 | $ | 18,387 | $ | 11,034 | $ | 8,280 |
Evolution Petroleum Corporation
Non-GAAP Reconciliation – Adjusted EBITDA (Unaudited)
(In thousands)
Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.
We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.
Three Months Ended | Years Ended | ||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | |||||||||||||
Net income (loss) | $ | 166 | $ | 14,872 | $ | 13,957 | $ | 35,217 | $ | 32,628 | |||||||
Adjusted by: | |||||||||||||||||
Interest expense | 54 | 300 | 32 | 458 | 572 | ||||||||||||
Income tax expense (benefit) | 134 | 3,361 | 3,941 | 10,072 | 8,513 | ||||||||||||
Depletion, depreciation, and accretion | 3,834 | 3,564 | 3,383 | 14,273 | 8,053 | ||||||||||||
Stock-based compensation | 484 | (743 | ) | 453 | 1,639 | 125 | |||||||||||
Unrealized loss (gain) on derivative contracts | — | (404 | ) | 195 | (1,994 | ) | 1,994 | ||||||||||
Severance | — | 325 | — | 74 | 325 | ||||||||||||
Transaction costs | — | 394 | — | 345 | 562 | ||||||||||||
Adjusted EBITDA | $ | 4,672 | $ | 21,669 | $ | 21,961 | $ | 60,084 | $ | 52,772 |
Evolution Petroleum Corporation Non-GAAP Reconciliation – Adjusted Net Income (Unaudited) (In thousands, except per share amounts) | |||||||||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | |||||||||||||||||
As Reported: | |||||||||||||||||||||
Net income (loss), as reported | $ | 166 | $ | 14,872 | $ | 13,957 | $ | 35,217 | $ | 32,628 | |||||||||||
Impact of Selected Items: | |||||||||||||||||||||
Unrealized loss (gain) on commodity contracts | — | (404 | ) | 195 | (1,994 | ) | 1,994 | ||||||||||||||
Severance | — | 325 | — | 74 | 325 | ||||||||||||||||
Transaction costs | — | 394 | — | 345 | 562 | ||||||||||||||||
Selected items, before income taxes | $ | — | $ | 315 | $ | 195 | $ | (1,575 | ) | $ | 2,881 | ||||||||||
Income tax effect of selected items(1) | — | 74 | 40 | (350 | ) | 674 | |||||||||||||||
Selected items, net of tax | $ | — | $ | 241 | $ | 155 | $ | (1,225 | ) | $ | 2,207 | ||||||||||
As Adjusted: | |||||||||||||||||||||
Net income (loss), excluding selected items(2) | $ | 166 | $ | 15,113 | $ | 14,112 | $ | 33,992 | $ | 34,835 | |||||||||||
Undistributed earnings allocated to unvested restricted stock | (3 | ) | (326 | ) | (256 | ) | (540 | ) | (718 | ) | |||||||||||
Net income (loss), excluding selected items for earnings per share calculation | $ | 163 | $ | 14,787 | $ | 13,856 | $ | 33,452 | $ | 34,117 | |||||||||||
Net income (loss) per common share — Basic, as reported | $ | — | $ | 0.44 | $ | 0.42 | $ | 1.05 | $ | 0.97 | |||||||||||
Impact of selected items | — | 0.01 | — | (0.04 | ) | 0.07 | |||||||||||||||
Net income (loss) per common share — Basic, excluding selected items(2) | $ | — | $ | 0.45 | $ | 0.42 | $ | 1.01 | $ | 1.04 | |||||||||||
Net income (loss) per common share — Diluted, as reported | $ | — | $ | 0.44 | $ | 0.41 | $ | 1.04 | $ | 0.96 | |||||||||||
Impact of selected items | — | — | 0.01 | (0.03 | ) | 0.06 | |||||||||||||||
Net income (loss) per common share — Diluted, excluding selected items(2)(3) | $ | — | $ | 0.44 | $ | 0.42 | $ | 1.01 | $ | 1.02 |
(1) For the three months ended June 30, 2022 and March 31, 2023, represents the tax impact using estimated tax rates of
(2) Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner.
(3) The impact of selected items for the three months ended June 30, 2023, June 30, 2022, and March 31, 2023 was calculated based upon weighted average diluted shares of 32.9 million, 33.5 million and 33.2 million, respectively, due to the net income (loss), excluding selected items. The impact of selected items for the years ended June 30, 2023 and 2022 were calculated based upon weighted average diluted shares of 33.2 million and 33.3 million, respectively, due to the net income (loss), excluding selected items.
Evolution Petroleum Corporation Supplemental Information on Oil and Natural Gas Operations (Unaudited) (In thousands, except per unit and per BOE amounts) | |||||||||||||||
Three Months Ended | Years Ended | ||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||
2023 | 2022 | 2023 | 2023 | 2022 | |||||||||||
Revenues: | |||||||||||||||
Crude oil | $ | 10,982 | $ | 18,374 | $ | 11,799 | $ | 51,044 | $ | 52,683 | |||||
Natural gas | 4,984 | 18,475 | 21,598 | 63,800 | 39,174 | ||||||||||
Natural gas liquids | 2,208 | 5,171 | 3,470 | 13,670 | 17,069 | ||||||||||
Total revenues | $ | 18,174 | $ | 42,020 | $ | 36,867 | $ | 128,514 | $ | 108,926 | |||||
Lease operating costs: | |||||||||||||||
CO2costs | $ | 1,348 | $ | 2,573 | $ | 1,821 | $ | 7,375 | $ | 7,708 | |||||
Ad valorem and production taxes | 1,157 | 2,993 | 1,642 | 8,158 | 6,960 | ||||||||||
Other lease operating costs | 9,313 | 11,711 | 10,107 | 44,012 | 33,989 | ||||||||||
Total lease operating costs | $ | 11,818 | $ | 17,277 | $ | 13,570 | $ | 59,545 | $ | 48,657 | |||||
Depletion of full cost proved oil and natural gas properties | $ | 3,544 | $ | 3,372 | $ | 3,098 | $ | 13,142 | $ | 7,518 | |||||
Production: | |||||||||||||||
Crude oil (MBBL) | 158 | 172 | 167 | 659 | 619 | ||||||||||
Natural gas (MMCF) | 2,044 | 2,413 | 2,204 | 9,109 | 7,141 | ||||||||||
Natural gas liquids (MBBL) | 91 | 104 | 104 | 416 | 364 | ||||||||||
Equivalent (MBOE)(1) | 590 | 678 | 638 | 2,593 | 2,173 | ||||||||||
Average daily production (BOEPD)(1) | 6,484 | 7,451 | 7,089 | 7,104 | 5,953 | ||||||||||
Average price per unit(2): | |||||||||||||||
Crude oil (BBL) | $ | 69.51 | $ | 106.83 | $ | 70.65 | $ | 77.46 | $ | 85.11 | |||||
Natural gas (MCF) | 2.44 | 7.66 | 9.80 | 7.00 | 5.49 | ||||||||||
Natural Gas Liquids (BBL) | 24.26 | 49.72 | 33.37 | 32.86 | 46.89 | ||||||||||
Equivalent (BOE)(1) | $ | 30.80 | $ | 61.98 | $ | 57.79 | $ | 49.56 | $ | 50.13 | |||||
Average cost per unit: | |||||||||||||||
CO2costs | $ | 2.28 | $ | 3.79 | $ | 2.85 | $ | 2.84 | $ | 3.55 | |||||
Ad valorem and production taxes | 1.96 | 4.41 | 2.57 | 3.15 | 3.20 | ||||||||||
Other lease operating costs | 15.78 | 17.27 | 15.84 | 16.97 | 15.64 | ||||||||||
Total lease operating costs | $ | 20.02 | $ | 25.47 | $ | 21.26 | $ | 22.96 | $ | 22.39 | |||||
Depletion of full cost proved oil and natural gas properties | $ | 6.01 | $ | 4.97 | $ | 4.86 | $ | 5.07 | $ | 3.46 | |||||
CO2costs per MCF | $ | 0.91 | $ | 1.29 | $ | 0.92 | $ | 0.99 | $ | 1.07 | |||||
CO2volumes (MMCF per day, gross) | 68.2 | 91.6 | 91.7 | 85.2 | 82.6 |
(1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
(2) Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.
Evolution Petroleum Corporation Summary of Production Volumes, Average Sales Price, and Average Production Costs (Unaudited) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 30, | March 31, | |||||||||||||||||
2023 | 2022 | 2023 | ||||||||||||||||
Volume | Price | Volume | Price | Volume | Price | |||||||||||||
Production: | ||||||||||||||||||
Crude oil (MBBL) | ||||||||||||||||||
Jonah Field | 9 | $ | 77.87 | 10 | $ | 108.06 | 9 | $ | 80.17 | |||||||||
Williston Basin | 34 | 70.31 | 35 | 108.03 | 39 | 73.32 | ||||||||||||
Barnett Shale | 3 | 69.37 | 3 | 102.58 | 2 | 73.40 | ||||||||||||
Hamilton Dome Field | 37 | 60.53 | 37 | 98.82 | 36 | 55.40 | ||||||||||||
Delhi Field | 74 | 73.01 | 86 | 109.93 | 80 | 75.23 | ||||||||||||
Other | 1 | 75.07 | 1 | 101.52 | 1 | 80.76 | ||||||||||||
Total | 158 | $ | 69.51 | 172 | $ | 106.83 | 167 | $ | 70.65 | |||||||||
Natural gas (MMCF) | ||||||||||||||||||
Jonah Field | 881 | $ | 3.16 | 1,000 | $ | 7.80 | 886 | $ | 20.31 | |||||||||
Williston Basin | 23 | 2.99 | 21 | 7.97 | 29 | 3.30 | ||||||||||||
Barnett Shale | 1,140 | 1.87 | 1,392 | 7.56 | 1,289 | 2.73 | ||||||||||||
Other | — | — | — | — | — | — | ||||||||||||
Total | 2,044 | $ | 2.44 | 2,413 | $ | 7.66 | 2,204 | $ | 9.80 | |||||||||
Natural gas liquids (MBBL) | ||||||||||||||||||
Jonah Field | 9 | $ | 25.80 | 12 | $ | 53.20 | 9 | $ | 33.22 | |||||||||
Williston Basin | 5 | 15.00 | 6 | 39.16 | 7 | 25.54 | ||||||||||||
Barnett Shale | 61 | 24.52 | 69 | 49.41 | 67 | 33.30 | ||||||||||||
Delhi Field | 16 | 24.65 | 17 | 53.45 | 21 | 38.09 | ||||||||||||
Other | — | — | — | — | — | — | ||||||||||||
Total | 91 | $ | 24.26 | 104 | $ | 49.72 | 104 | $ | 33.37 | |||||||||
Equivalent (MBOE)(1) | ||||||||||||||||||
Jonah Field | 165 | $ | 22.60 | 189 | $ | 50.55 | 166 | $ | 114.97 | |||||||||
Williston Basin | 43 | 59.57 | 45 | 94.61 | 51 | 62.01 | ||||||||||||
Barnett Shale | 254 | 15.15 | 304 | 46.81 | 284 | 20.80 | ||||||||||||
Hamilton Dome Field | 37 | 60.53 | 37 | 98.82 | 36 | 55.40 | ||||||||||||
Delhi Field | 90 | 64.69 | 102 | 100.64 | 100 | 67.62 | ||||||||||||
Other | 1 | 75.07 | 1 | 101.52 | 1 | 80.76 | ||||||||||||
Total | 590 | $ | 30.80 | 678 | $ | 61.98 | 638 | $ | 57.79 | |||||||||
Average daily production (BOEPD)(1) | ||||||||||||||||||
Jonah Field | 1,813 | 2,077 | 1,844 | |||||||||||||||
Williston Basin | 473 | 495 | 567 | |||||||||||||||
Barnett Shale | 2,791 | 3,341 | 3,156 | |||||||||||||||
Hamilton Dome Field | 407 | 407 | 400 | |||||||||||||||
Delhi Field | 989 | 1,120 | 1,111 | |||||||||||||||
Other | 11 | 11 | 11 | |||||||||||||||
Total | 6,484 | 7,451 | 7,089 | |||||||||||||||
Production costs (in thousands, except per BOE) | ||||||||||||||||||
Lease operating costs | Amount | per BOE | Amount | per BOE | Amount | per BOE | ||||||||||||
Jonah Field | $ | 2,218 | $ | 13.45 | $ | 2,990 | $ | 15.82 | $ | 4,227 | $ | 25.59 | ||||||
Williston Basin | 1,149 | 26.83 | 1,307 | 29.42 | 1,636 | 32.40 | ||||||||||||
Barnett Shale | 3,902 | 15.28 | 7,288 | 23.98 | 2,806 | 9.88 | ||||||||||||
Hamilton Dome Field | 1,417 | 38.76 | 1,169 | 31.26 | 1,351 | 37.11 | ||||||||||||
Delhi Field | 3,132 | 35.06 | 4,523 | 44.24 | 3,550 | 35.42 | ||||||||||||
Total | $ | 11,818 | $ | 20.02 | $ | 17,277 | $ | 25.47 | $ | 13,570 | $ | 21.26 |
(1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.