Evolution Petroleum Corporation (EPM) Bundle
A Brief History of Evolution Petroleum Corporation (EPM)
Foundation and Initial Development
Foundation and Initial Development
Evolution Petroleum Corporation was established in 2003. The company focuses on acquiring and developing oil and natural gas properties primarily in North America.
Public Offering and Growth
In 2005, Evolution Petroleum went public under the ticker symbol EPM on the NYSE American exchange. The IPO raised approximately $7.3 million, using the proceeds to expand its operations.
Strategic Acquisitions
Throughout the years, the company has made several strategic acquisitions to enhance its portfolio. Notably, in 2014, it acquired a working interest in the Delhi Field located in Louisiana, which significantly increased its production capacity.
Financial Performance
As of 2022, Evolution Petroleum reported revenues of approximately $26.8 million, a substantial increase from $17.6 million in 2021, driven by higher oil prices and production levels.
Production Statistics
In the fiscal year 2022, the average daily production was approximately 1,000 barrels of oil equivalent per day (BOE/d). The product mix during this period was weighted towards oil, constituting about 88% of total production.
Financial Data Overview
| Year | Revenue (in millions) | Net Income (in millions) | Total Assets (in millions) | Debt to Equity Ratio |
|---|---|---|---|---|
| 2020 | $15.0 | $(2.4) | $48.5 | 0.29 |
| 2021 | $17.6 | $(1.0) | $51.2 | 0.23 |
| 2022 | $26.8 | $6.2 | $57.8 | 0.18 |
Market Trends and Stock Performance
As of October 2023, the stock price of Evolution Petroleum is approximately $5.50 per share. The market capitalization stands at around $95 million, reflecting a recovery trend following the economic impacts of the COVID-19 pandemic.
Technological Advancements
Evolution Petroleum has implemented enhanced oil recovery techniques in its operations at the Delhi Field, which has improved extraction rates and maximized the recovery of hydrocarbons.
Environmental Considerations
The company is committed to sustainable practices and has invested in technologies to minimize environmental impact, adhering to regulatory standards in all its operations.
Future Outlook
Looking ahead, Evolution Petroleum aims to increase its production and explore further acquisitions. The company is focused on maintaining a balanced growth strategy while achieving operational efficiencies.
A Who Owns Evolution Petroleum Corporation (EPM)
Ownership Structure
Ownership Structure
The ownership structure of Evolution Petroleum Corporation (EPM) is crucial for understanding its governance and strategic direction. As of the latest filings, approximately 66.5% of shares are owned by institutional investors, which includes a diverse range of investment firms.
Top Institutional Holders
The table below summarizes the top institutional holders of EPM as of the latest reporting period:
| Institution Name | Shares Owned | Percentage of Shares Owned | Type of Investor |
|---|---|---|---|
| BlackRock, Inc. | 1,200,000 | 10.5% | Asset Management |
| The Vanguard Group, Inc. | 1,100,000 | 9.6% | Mutual Fund |
| Dimensional Fund Advisors LP | 900,000 | 7.9% | Asset Management |
| State Street Corporation | 800,000 | 7.0% | Asset Management |
| Invesco Ltd. | 700,000 | 6.1% | Investment Management |
Insider Ownership
Insider ownership provides insight into how much trust management has in the company. As of the most recent data, 5.2% of the shares are owned by insiders. This includes executives and board members, reflecting a level of commitment from the leadership.
Key Executives and Their Holdings
The following table shows key executives and their respective holdings in Evolution Petroleum Corporation:
| Executive Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jason Brown | President & CEO | 300,000 | 2.6% |
| Lisa H. Harris | CFO | 150,000 | 1.3% |
| Thomas A. Hague | Board Member | 50,000 | 0.4% |
Recent Changes in Ownership
Over the past year, there have been significant changes in the ownership landscape of EPM. The following are notable shifts:
- BlackRock increased its stake by approximately 2% in Q2 2023.
- The Vanguard Group reduced its holdings by 1.4% in Q3 2023.
- Insider purchases totaled 50,000 shares during the last quarter.
Market Capitalization and Stock Performance
As of the latest trading session, Evolution Petroleum Corporation has a market capitalization of approximately $200 million. The stock price has shown a year-to-date increase of 15%, suggesting positive market sentiment.
Summary of Shareholder Engagement
The company maintains regular communication with shareholders through earnings calls and annual meetings, which are crucial for transparency and governance. Approximately 75% of shareholders participated in the most recent annual meeting, indicating a strong engagement level.
Evolution Petroleum Corporation (EPM) Mission Statement
Overview
The mission statement of Evolution Petroleum Corporation (EPM) emphasizes their commitment to advancing energy solutions through innovation and sustainability. The company focuses on maximizing shareholder value by actively managing their assets while adhering to environmental and social governance standards.
Core Values
- Integrity: Upholding ethical practices in all operations.
- Innovation: Continuously seeking new technologies and methods to enhance efficiency.
- Safety: Prioritizing employee and environmental safety.
- Community Engagement: Contributing positively to local communities.
Financial Performance Highlights
As of the latest reporting period, the following financial metrics provide insights into Evolution Petroleum Corporation’s performance:
| Metric | Value (as of Q2 2023) |
|---|---|
| Revenue | $9.2 million |
| Net Income | $2.1 million |
| Operating Cash Flow | $4.5 million |
| EBITDA | $5.6 million |
| Total Assets | $56.8 million |
| Total Liabilities | $16.4 million |
| Shareholders' Equity | $40.4 million |
| Market Capitalization | $89.3 million |
Strategic Objectives
The mission statement guides Evolution Petroleum Corporation in achieving several strategic objectives:
- Optimize existing production assets to enhance profitability.
- Invest in technological advances to improve operational efficiencies.
- Expand the company’s resource base through strategic acquisitions.
- Maintain a sustainable approach to energy production to protect the environment.
Environmental Commitment
Evolution Petroleum Corporation places a strong emphasis on environmental stewardship. Their initiatives include:
- Reducing greenhouse gas emissions by 20% by 2025.
- Implementing water management strategies to minimize consumption by 15%.
- Engaging in community educational programs focused on sustainability.
Recent Developments
In 2023, Evolution Petroleum Corporation achieved several significant milestones:
- Completed the acquisition of new leasehold interests in Wyoming, expanding their operational footprint.
- Successfully increased production rates by 10% in core areas.
- Initiated a new carbon capture project aimed at further reducing emissions.
Corporate Governance
The company’s governance structure supports its commitment to ethical business practices:
- The Board of Directors consists of 7 members, all of whom adhere to corporate governance best practices.
- Regular audits and reports ensure transparency in operations and finances.
- Committees focusing on audit, compensation, and governance enhance accountability.
How Evolution Petroleum Corporation (EPM) Works
Overview of Evolution Petroleum Corporation
Overview of Evolution Petroleum Corporation
Evolution Petroleum Corporation (EPM), incorporated in 2003, specializes in the acquisition and development of oil and gas properties in the United States. As of Q3 2023, the company reported significant reserves and an operational focus on enhancing production from existing assets.
Business Model
The company operates primarily through a model that focuses on the following key areas:
- Acquisitions: Targeting undervalued oil and gas assets.
- Enhanced Oil Recovery (EOR): Implementing advanced techniques to increase production from existing fields.
- Strategic Partnerships: Collaborating with other operators to optimize resource extraction.
Financial Performance
As of the most recent financial statements for Q3 2023:
| Financial Metric | Q3 2023 | Q2 2023 | Q1 2023 |
|---|---|---|---|
| Revenue | $10.5 million | $9.8 million | $8.6 million |
| Net Income | $2.3 million | $1.9 million | $1.5 million |
| Assets | $85.4 million | $83.1 million | $80.5 million |
| Liabilities | $11.2 million | $10.9 million | $12.0 million |
| Shareholder Equity | $74.2 million | $72.2 million | $68.5 million |
Operational Highlights
Evolution Petroleum focuses on several operational aspects:
- Production Growth: Increased production by approximately 15% year-over-year.
- Capital Expenditures: Invested $4.5 million in drilling and completion activities in 2023.
- Reserves: 10.6 million barrels of oil equivalent (MMBoe) as of the latest report.
Market Position
As of October 2023, Evolution Petroleum is positioned within the following market parameters:
| Market Metric | Value |
|---|---|
| Market Capitalization | $120 million |
| Stock Price | $5.20 |
| P/E Ratio | 15.5 |
| Dividend Yield | 1.5% |
Future Outlook
The outlook for EPM is shaped by:
- Oil Prices: Fluctuating between $80 to $90 per barrel.
- Regulatory Environment: Ongoing adjustments to federal and state regulations impacting operations.
- Investment in Technology: Focus on new drilling technologies to enhance recovery rates.
Risks and Challenges
Key risks identified by the company include:
- Commodity Price Volatility: Exposed to fluctuations in oil and gas prices.
- Operational Costs: Rising costs associated with drilling and completion.
- Environmental Regulations: Potential impact from increased regulatory scrutiny.
How Evolution Petroleum Corporation (EPM) Makes Money
Business Model
Evolution Petroleum Corporation (EPM) primarily operates in the oil and gas industry. The company is focused on the acquisition of, and development of, oil assets in the United States, particularly in areas with established production and reserves.
Revenue Streams
The primary revenue streams for EPM include:
- Crude oil production
- Natural gas production
- Sales of natural gas liquids (NGLs)
- Joint ventures and partnerships
Production Details
As of the fiscal year ended June 30, 2023, EPM reported an average daily production of approximately 1,620 barrels of oil equivalent (BOE) per day. The breakdown of production is as follows:
| Product Type | Average Daily Production (BOE) | Percentage of Total Production |
|---|---|---|
| Crude Oil | 1,100 | 68% |
| Natural Gas | 2,500 | 15% |
| NGLs | 900 | 17% |
Financial Performance
For the fiscal year ended June 30, 2023, Evolution Petroleum Corporation reported the following financial metrics:
| Financial Metric | Amount |
|---|---|
| Total Revenue | $32.5 million |
| Net Income | $8.2 million |
| Adjusted EBITDA | $15.3 million |
| Operating Expenses | $12.6 million |
| Debt | $5.7 million |
Market Dynamics
The pricing of crude oil significantly impacts EPM’s financial performance. For instance, during 2023, the average realized price for crude oil was approximately $78.00 per barrel, while the company achieved natural gas prices averaging $4.50 per MMBtu.
Strategic Initiatives
EPM is also engaged in various strategic initiatives to enhance its revenue. These include:
- Expanding production capabilities through new drilling projects
- Acquiring additional oil and gas assets
- Optimizing existing operations to reduce costs
Reserves and Asset Valuation
As of June 30, 2023, the company reported total proved reserves of approximately 19.5 million BOE. The present value of future cash flows from these reserves, discounted at 10%, was estimated to be $145 million.
Dividends and Investor Returns
EPM has a history of returning value to shareholders through dividends. For the fiscal year 2023, the company declared dividends totaling $0.22 per share, reflecting a dividend yield of approximately 2.5% based on the stock price of $8.80 as of June 30, 2023.
Conclusion
This chapter outlines the various mechanisms through which Evolution Petroleum Corporation generates revenue, highlighting its operational, financial, and strategic dimensions.
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