Current epm Stock Info

Evolution Petroleum Maintains 4.5% Dividend

Evolution Petroleum (ticker: EPM) presented at EnerCom’s The OilServices Conference 14 in San Francisco on March 9, 2016. Evolution’s principal assets include a CO2-EOR project in Louisiana’s Delhi Field and patented technology designed to extend the life and increase ultimate recoveries of depletion drive oil and gas wells. The company reported an 18% decrease in Delhi lifting costs to $16.37 per barrel.

Evolution Petroleum has maintained a unique position in the industry as a debt free non-operator with a working interest and a royalty interest in the company’s acreage. This flexibility has afforded them the ability to generate cash flow while still being very selective about their participation in new projects. A key focus of the company has been to return cash to shareholders which has been accomplished through maintaining a dividend yield of 4.5% (as of 3/1/2016) even in a depleted commodity environment.

Evolution has achieved a positive net income in the quarter ending 12/31/2015, and a positive net income over the trailing twelve month period.


The company’s participation in the Delhi Field gives them an asset with a long-life production forecast, with peak production expected to occur in 2020, and peak production on a 2P basis not until 2026. In addition to the life of these assets, the developments costs that remain are low, at just $7.07 per BOE on for 2P reserves.


The Delhi Field is on a CO2 flood, and the LOE expenses associated with the property pertain to the CO2. However, Evolution has managed the process well through the course of 2015 and reduced LOE costs from $19.19/BOE to $13.44/BOE during that time frame. The increased efficiency of the field will translate into future costs savings as well.

Evolutions next big project is an NGL plant that is currently under construction and expected to come online in 2016. The additional production capacity for natural gas liquids is expected to yield 2,000+ BOEPD for the company. The methane that is extracted form he field will be used as a fuel source instead of being taken to market and will allow Evolution to realize even greater cost savings from the operation of the NGL plant.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Legal Notice