In This Article:
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Total Revenue: $21.2 million, up 17% year over year.
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Net Income: $1.2 million for the fourth quarter.
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Adjusted EBITDA: $8 million, a 12% increase year over year.
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Cash Flow from Operations: $8 million for the quarter.
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CapEx: $2.5 million, primarily for development in SCOOP/STACK and Chaveroo fields.
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Cash on Hand: $6.4 million at the end of the quarter.
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Borrowings: $39.5 million on the credit facility.
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Dividend: $0.12 per share, marking the 44th consecutive quarterly dividend.
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Fiscal Year Revenue: $86 million.
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Fiscal Year Net Income: $4 million.
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Fiscal Year Adjusted EBITDA: $30 million.
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Production Increase: 11% year over year to 7,209 net BOE per day.
Release Date: September 11, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evolution Petroleum Corp (EPM) achieved record liquids revenue and production for fiscal year 2024, driven by strategic transactions and asset acquisitions.
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The company expanded its drilling inventory significantly, adding over 300 locations in the SCOOP/STACK regions and 80 plus locations at Chaveroo.
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Participation in 22 wells at SCOOP/STACK exceeded initial expectations, generating higher returns and stronger production.
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Delhi field has been certified as a carbon capture utilization and storage site, potentially driving further benefits.
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Evolution Petroleum Corp (EPM) maintained its dividend strategy, announcing a $0.12 dividend for the 44th consecutive quarter, supported by a diverse and low-decline asset portfolio.
Negative Points
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The company faced a challenging macro environment with historically low natural gas prices, impacting revenue from natural gas.
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Operational challenges at the Delhi field included power outages and downtime from CO2 recycle compressors, affecting production.
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Chaveroo wells experienced higher-than-expected drilling costs due to fluid losses, impacting overall cost efficiency.
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The company has significant debt, with $39.5 million in borrowings on its credit facility, which could limit financial flexibility.
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Future development plans, such as the Test Site V at Delhi, are still in early stages, with uncertainties around timelines and outcomes.
Q & A Highlights
Q: Can you provide more details on the Test Site V with ExxonMobil in the Delhi field? A: Kelly Loyd, President and CEO, explained that Test Site V is on the eastern side of the current development, west of the town of Delhi. It is an extension of the current development rather than a new phase. Mark Bunch, COO, added that CO2 has migrated there, and the plan is to drill producers for efficient and high-return results.