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Dec 31, 2022
Evolution Petroleum Q2 2023 Earnings Report
Reported solid results for the second quarter of fiscal year 2023 and declared a quarterly cash dividend.
Key Takeaways
Evolution Petroleum reported revenue of $33.7 million and net income of $10.4 million, or $0.31 per diluted share, for the second quarter of fiscal year 2023. The company eliminated all debt during the quarter and declared a quarterly cash dividend of $0.12 per common share.
Recorded current quarter revenue of $33.7 million and net income of $10.4 million or $0.31 per diluted share.
Generated Adjusted EBITDA of $16.4 million during the current quarter.
Paid a quarterly dividend of $0.12 per common share for the current quarter – a 60% increase from the dividend paid during the second quarter of fiscal 2022.
Eliminated all debt during the current quarter through the full repayment of $12.3 million of outstanding borrowings.
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 continues to expect development capital expenditures collectively across its existing portfolio of properties to range between $6.5 million to $9.5 million for fiscal 2023.
Positive Outlook
- Near-term capital spending requirements will be met from cash flows from operations
- Near-term capital spending requirements will be met from current working capital
- Near-term capital spending requirements will be met from borrowings under its revolving credit facility as needed.
- Capital costs at Delhi field for a NGL plant heat exchanger project, projected to improve operational efficiency throughout the year, which is currently underway.
- Participating in the drilling of two sidetrack locations targeting the Birdbear formation and recompleting up to four vertical wells in the Williston Basin
Challenges Ahead
- Do not include any capital expenditures for drilling in the Pronghorn and Three Forks locations in the Williston Basin at this time.
- Continue to evaluate those potential drilling locations with the operator.
- Oil revenue decreased 14% to $13.1 million from the prior quarter due to 1% lower sales volumes and a 13% decrease in realized commodity pricing.
- Natural gas revenue decreased 12% to $17.4 million from the prior quarter due to 5% lower sales volumes and an 8% decrease in realized commodity pricing.
- NGL revenue decreased 33% to $3.2 million due to 8% lower sales volumes and a 27% decrease in realized pricing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income