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Sep 30, 2020
Evolution Petroleum Q1 2021 Earnings Report
Reported a 67% increase in total revenues and declared a quarterly common stock dividend.
Key Takeaways
Evolution Petroleum announced its fiscal first quarter results, highlighted by a 67% increase in total revenues to $5.6 million compared to the prior quarter. The company generated operational cash flows exceeding the quarterly dividend and maintained a debt-free balance sheet with $19.8 million in cash. A non-cash impairment of $9.6 million was recorded due to decreased oil prices.
Paid 28th consecutive quarterly cash dividend and declared the next dividend payment of $0.025 per share.
Total revenues increased by 67% to $5.6 million compared to the prior quarter.
Generated operational cash flows in excess of quarterly dividend and ended the quarter with $19.8 million in cash, remaining debt-free.
Denbury Resources emerged from Chapter 11 bankruptcy.
Evolution Petroleum
Evolution Petroleum
Evolution Petroleum Revenue by Segment
Revenue by Segment
Crude oil Revenue
CapyFin.comNatural gas Revenue
CapyFin.comNatural gas liquids Revenue
CapyFin.com Forward Guidance
The Company expects near-term volatility in crude oil prices and is prepared for potentially depressed prices. They anticipate Phase V development and conformance work during 2021, and they completed their annual fall redetermination and extended their credit facility.
Positive Outlook
- Expects to perform conformance workover projects in both Delhi and Hamilton Dome fields.
- Plans for Delhi Phase V development expenditures of approximately $1.9 million to be incurred in 2021.
- Completed annual fall redetermination and extended the credit facility an additional three years.
- Denbury has access to capital, liquidity and the financial flexibility to begin Phase V development and other conformance work during 2021.
- Maintaining and ultimately growing the common stock dividend remains a Company priority.
Challenges Ahead
- Expects the price of crude oil to experience some near-term volatility.
- Cannot predict the duration of the volatility nor the current supply-demand imbalance.
- Must be prepared for crude oil prices to remain depressed for an extended period.
- The redetermination of the borrowing base resulted in a decrease from $27 million to $23 million.
- Availability is subject to, and currently limited by, the Company's financial covenants.
Revenue & Expenses
Visualization of income flow from segment revenue to net income