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Dec 31, 2021
Evolution Petroleum Q2 2022 Earnings Report
Reported solid free cash flow generation, benefiting from a higher commodity pricing environment and strategic acquisitions.
Key Takeaways
Evolution Petroleum reported a strong second quarter for fiscal year 2022, marked by increased net income, adjusted EBITDA, and cash balance. The company benefited from a higher commodity pricing environment and is focused on providing a consistent and meaningful quarterly cash dividend to its shareholders. Strategic acquisitions are expected to further enhance free cash flow generation and shareholder returns.
Generated net income of $6.8 million, a 31% increase from the prior quarter.
Adjusted EBITDA increased by 20% to $10.2 million from the prior quarter.
Increased quarterly dividend to $0.10 per share, payable on March 31, 2022.
Grew cash balance to $13.6 million, a 71% increase over the prior quarter, maintaining a strong balance sheet with no net debt.
Revenue by Segment
Forward Guidance
Evolution Petroleum anticipates ongoing conformance workover projects and continued maintenance capital expenditures, primarily at the Delhi field. Capital expenditures are expected for workover projects in the Barnett Shale, with plans to run one workover rig continuously throughout calendar year 2022. Total capital expenditures across the Barnett Shale, Hamilton Dome, and Delhi fields are projected to be in the range of $0.5 million to $1.5 million during the remainder of fiscal 2022. Capital expenditures for the recently acquired Williston Basin assets are expected to be $0.5 to $1.0 million during the remainder of fiscal 2022.
Positive Outlook
- Conformance workover projects are expected to continue, primarily at the Delhi field.
- Capital expenditures are anticipated for workover projects in the Barnett Shale.
- One workover rig is planned to run continuously throughout calendar year 2022 in the Barnett Shale.
- Total capital expenditures across multiple fields are projected for the remainder of fiscal 2022.
- Capital expenditures are expected for the recently acquired Williston Basin assets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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