8-K
Evolution Petroleum Corp (EPM)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 5, 2020
Evolution Petroleum Corporation
(Exact name of registrant as specified in its charter)
001-32942
(Commission File Number)
| Nevada | 41-1781991 |
|---|---|
| (State or Other Jurisdiction of Incorporation) | (I.R.S. Employer Identification No.) |
| 1155 Dairy Ashford Road, Suite 425, Houston, Texas | 77079 |
| --- | --- |
| (Address of Principal Executive Offices) | (Zip Code) |
(713) 935-0122
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Securities registered pursuant to Section 12(b) of the Act: | Title of Each Class | Trading Symbol(s) | Name of Each Exchange On Which Registered |
|---|---|---|---|
| Common Stock, $0.001 par value | EPM | NYSE American | |
| Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||
| --- | --- | ||
| Emerging growth company o | |||
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o |
Item 2.02 Results of Operations and Financial Condition.
On February 5, 2020, Evolution Petroleum Corporation (the “Company”) issued a press release reporting on financial and operating results for the quarter ended December 31, 2019, the Company's second quarter of fiscal 2020. A copy of the press release, dated February 5, 2020, is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
This information is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless specifically incorporated by reference in a document filed under the Securities Act of 1933, as amended, or the Exchange Act. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by Item 2.02.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description |
|---|---|
| Exhibit 99.1 | Evolution Petroleum Corporation Press Release regarding its financial and operating results,dated February 5, 2020 |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Evolution Petroleum Corporation<br><br>(Registrant) | ||
|---|---|---|
| Dated: February 10, 2020 | By: | /s/ DAVID JOE |
| Name: | David Joe | |
| Title: | Senior Vice President and Chief Financial Officer and Treasurer |
3
Exhibit
Exhibit 99.1
Evolution Petroleum Announces Results for the
Fiscal 2020 Second Quarter Ended December 31, 2019 and
Declares Quarterly Common Stock Dividend
Houston, TX, February 5, 2020 - Evolution Petroleum (“Evolution” or the “Company”) announced today financial results and operating highlights for its fiscal second quarter ended December 31, 2019 (the “current quarter”).
Highlights for the Quarter:
| • | Acquired oil producing assets in Hamilton Dome Field in Wyoming for $9.3 million of cash, net of a $0.2 million post-closing adjustment. |
|---|---|
| • | Paid 25^th^ consecutive quarterly cash dividend on common shares and declared the next dividend payment of $0.10 per share, payable on March 31, 2020. |
| --- | --- |
| • | Generated total revenues of $9.4 million for the quarter, up 2.5% from the prior quarter. |
| --- | --- |
| • | Reported net income of $1.8 million, marking the 17^th^ consecutive quarter of positive reported net income. |
| --- | --- |
| • | Ended the quarter with $20.9 million in cash; the Company has a $40 million undrawn credit facility and notably remains debt free. |
| --- | --- |
“We successfully closed the acquisition of the Hamilton Dome field on November 1, 2019 and seamlessly incorporated the interests into our overall operations, with minimal disruptions or costs” said Jason Brown, President and CEO. “This was a solid first step in the Company’s strategy to diversify and grow our asset base. Hamilton Dome is meeting our projections of production, price realization and cash flow without a material increase in our overhead. Similar to other oil and gas producers, our overall performance during the quarter was impacted by lower price realizations, and further impacted in our case by the short-term effect of repairs to the oil sales pipeline from Delhi, which more than offset increased volumes. This is a good example of why we are pleased with the Hamilton Dome acquisition as a second source of cash flow and are committed to further acquisitions that will support our dividend. The current weakness in oil and gas prices presents an opportunity to acquire long-life production with upside potential at a very attractive price per BOE and validates our decision over the recent years to retain substantial liquidity with no debt. I am proud that we continue to generate earnings and positive cash flow during low commodity price environments as demonstrated by twenty-five consecutive quarterly dividends and seventeen consecutive quarters of positive earnings.”
Financial and Operational Results
Evolution reported total revenues for the quarter of $9.4 million versus $9.2 million in the prior quarter, a 2.5% increase, based on an 11.2% increase in total volumes, offset by a lower average realized oil price of $53.38 per barrel compared to $59.32 per barrel in the prior quarter. This decline was partially offset by an increase in the average realized NGL price of $14.92 per barrel of oil equivalent (“BOE”) compared to $11.54 per BOE, in the prior quarter.
The current quarter revenues benefited from approximately $1.1 million in oil revenue sales for the recently acquired Hamilton Dome field, representing Evolution’s share of sixty-one days of production. The Hamilton Dome oil production trades at a discount to West Texas Intermediate based on its specific gravity and sulfur content.
At the Delhi Field, the current quarter’s lower average realized oil prices were further impacted by approximately $0.4 million for temporary trucking and handling charges due to the planned repair to a section of the oil sales pipeline. This effectively eliminated the LLS premium in the quarter, shifting a positive basis to a small deduction. The pipeline repair project commenced in mid-November and was completed in late January, and all Delhi oil sales are back on pipeline as of February 1, 2020.
Total net production in barrels of oil equivalent per day (“BOEPD”) increased 11.2% to 2,124 BOEPD in the current quarter compared to 1,910 BOEPD in the prior quarter. The quarterly results include sixty-one days of production from the Hamilton Dome field, or 292 net barrels of oil per day (“BOPD”), based on sixty-one days of production divided by ninety-two days in the quarter.
Production costs were $4.2 million in the current quarter, an increase of 37% from $3.1 million in the prior quarter. Production costs increased by $0.9 million due to the addition of the Hamilton Dome Field effective November 1, 2019, inclusive of some atypical workovers performed in the field in December. Additionally, Delhi had higher CO2 and other production costs of $0.2 million. Purchased CO2 volumes were 83.6 million cubic feet (MMcf) per day, up 19.9% from 69.7 MMcf per day in the prior quarter.
General and administrative (''G&A'') expenses increased by $0.1 million, or 7.3% to $1.4 million for the current quarter, compared to the prior quarter. Increased G&A expenses are primarily attributable to normal variations in professional service expenses often incurred during our second fiscal quarter.
Net income for the quarter was $1.8 million, or $0.05 per diluted share, compared to $2.8 million, or $0.08 per diluted share, in the previous quarter.
Capital Spending
During the current quarter, Evolution incurred $10.7 million on capital projects consisting of $9.3 million for the acquisition of Hamilton Dome field, a $0.9 million non-cash asset addition related to Hamilton Dome asset retirement obligations, and $0.5 million at the Delhi field, primarily for the NGL plant and completion of the water curtain project.
The current expectation for net capital spending for the remainder of fiscal 2020 is approximately $0.5 to $0.7 million for conformance and capital workovers at Delhi field, and $0.1 to $0.2 million for capital workovers at Hamilton Dome. The Delhi operator reported that capital was deferred for the Phase V project until 2021. Evolution anticipates all funding for the Company’s share of capital expenditures at Delhi and Hamilton Dome will be met from cash flows from operations.
Liquidity and Outlook
Working capital decreased by $10.0 million from the prior quarter to $21.7 million. The decrease in working capital is primarily due to the acquisition of producing oil field assets in the Hamilton Dome Field in Wyoming for $9.3 million in cash and the payment of $3.3 million in common stock dividends during the quarter. The Company ended the quarter with $20.9 million in cash, no debt and an untapped $40 million reserve-based credit facility. The Company continues to be well positioned to fund further development of its producing assets throughout fiscal 2020 and 2021 while retaining enough financial resources to capitalize on new growth opportunities and funding for the dividend program.
Cash Dividend on Common Stock
The Board of Directors declared a cash dividend of $0.10 per share of common stock, which will be paid on March 31, 2020 to common stockholders of record on March 16, 2020. This will be the twenty-sixth consecutive quarterly cash dividend on the common stock, which has been paid since the quarter ended December 31, 2013. To date, the Company has paid out $66 million or $2.01 per share back to stockholders as cash dividends. Maintaining and ultimately growing the common stock dividend remains a Company priority.
Quarterly Conference Call
Evolution Petroleum Corporation will host its earnings conference call for the quarter ended December 31, 2019 on Thursday, February 6, 2020 at 11:00 a.m. Eastern (10:00 a.m. Central). The call will be hosted by Jason Brown, President & Chief Executive Officer and David Joe, Chief Financial Officer. Details for the conference call are as follows:
Date: Thursday, February 6, 2020
Time: 11:00 a.m. Eastern
Call: 844-369-8770 (toll-free United States & Canada)
Call: 862-298-0840 (toll International)
To listen live via webcast over the internet, click the link https://www.webcaster4.com/Webcast/Page/2188/32893 or go to our website at http://www.evolutionpetroleum.com/. A replay will be available two hours after the end of the conference call through March 6, 2020 and will be accessible by calling 877-481-4010 (toll-free United States & Canada); 919-882-2331 (International) with the replay pin number of 57679.
About Evolution Petroleum
Evolution Petroleum is an independent energy company focused on delivering a sustainable dividend yield to its shareholders through the ownership, management and development of producing oil and gas properties. The Company's long-term goal is to build a diversified portfolio of oil and gas assets primarily through acquisition, while seeking opportunities to maintain and increase production through selective development, production enhancement and other exploitation efforts on its properties. Evolution's largest asset is our interest in a CO2 enhanced oil recovery project in Louisiana's Delhi field. Additional information, including the Company's annual report on Form 10-K and its quarterly reports on Form 10-Q, is available on its website at www.EvolutionPetroleum.com.
Cautionary Statement
All forward-looking statements contained in this press release regarding current expectations, potential results and future plans and objectives of the Company involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although our expectations are based on business, engineering, geological, financial and operating assumptions that we believe to be reasonable, many factors could cause actual results to differ materially from our expectations and we can give no assurance that our goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statement.
Company Contact:
Jason Brown, President & CEO
David Joe, SVP & CFO
(713) 935-0122
Financial Tables to Follow
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
| Three Months Ended <br> December 31, | Six Months Ended <br> December 31, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | 2019 | 2018 | |||||||||
| Revenues | ||||||||||||
| Crude oil | $ | 8,974,237 | $ | 10,515,875 | $ | 17,819,741 | $ | 21,913,327 | ||||
| Natural gas liquids | 406,634 | 532,243 | 712,578 | 1,441,870 | ||||||||
| Natural gas | 744 | — | 1,511 | — | ||||||||
| Total revenues | 9,381,615 | 11,048,118 | 18,533,830 | 23,355,197 | ||||||||
| Operating costs | ||||||||||||
| Production costs | 4,234,605 | 3,452,168 | 7,324,694 | 6,910,598 | ||||||||
| Depreciation, depletion and amortization | 1,461,049 | 1,603,633 | 2,910,803 | 3,152,093 | ||||||||
| General and administrative expenses * | 1,436,197 | 1,258,570 | 2,774,550 | 2,563,832 | ||||||||
| Total operating costs | 7,131,851 | 6,314,371 | 13,010,047 | 12,626,523 | ||||||||
| Income from operations | 2,249,764 | 4,733,747 | 5,523,783 | 10,728,674 | ||||||||
| Other | ||||||||||||
| Enduro transaction breakup fee | — | — | — | 1,100,000 | ||||||||
| Interest and other income | 52,941 | 59,858 | 119,070 | 106,429 | ||||||||
| Interest expense | (29,345 | ) | (29,345 | ) | (58,690 | ) | (58,690 | ) | ||||
| Income before income taxes | 2,273,360 | 4,764,260 | 5,584,163 | 11,876,413 | ||||||||
| Income tax provision | 508,442 | 859,695 | 1,026,425 | 2,176,047 | ||||||||
| Net income available to common stockholders | $ | 1,764,918 | $ | 3,904,565 | $ | 4,557,738 | $ | 9,700,366 | ||||
| Earnings per common share | ||||||||||||
| Basic | $ | 0.05 | $ | 0.12 | $ | 0.14 | $ | 0.29 | ||||
| Diluted | $ | 0.05 | $ | 0.12 | $ | 0.14 | $ | 0.29 | ||||
| Weighted average number of common shares | ||||||||||||
| Basic | 32,988,737 | 33,167,159 | 33,057,691 | 33,134,726 | ||||||||
| Diluted | 32,988,737 | 33,176,503 | 33,061,555 | 33,147,775 |
* For the three months ended December 31, 2019 and 2018, non-cash stock-based compensation expenses were $236,190 and $254,111, respectively. For the six months ended December 31, 2019 and 2018, non-cash stock-based compensation expenses were $568,203 and $469,484, respectively.
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited)
| December 31, <br>2019 | June 30, <br>2019 | |||
|---|---|---|---|---|
| Assets | ||||
| Current assets | ||||
| Cash and cash equivalents | $ | 20,935,968 | $ | 31,552,533 |
| Receivables | 4,008,414 | 3,168,116 | ||
| Prepaid expenses | 518,396 | 458,278 | ||
| Total current assets | 25,462,778 | 35,178,927 | ||
| Oil and natural gas properties, net (full-cost method of accounting) | 68,814,569 | 60,346,466 | ||
| Other property and equipment, net | 21,914 | 26,418 | ||
| Total property and equipment | 68,836,483 | 60,372,884 | ||
| Other assets, net | 331,608 | 210,033 | ||
| Total assets | $ | 94,630,869 | $ | 95,761,844 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities | ||||
| Accounts payable | $ | 2,985,901 | $ | 2,084,140 |
| Accrued liabilities and other | 548,676 | 537,755 | ||
| State and federal income taxes payable | 246,972 | 130,799 | ||
| Total current liabilities | 3,781,549 | 2,752,694 | ||
| Long term liabilities | ||||
| Deferred income taxes | 11,362,943 | 11,322,691 | ||
| Asset retirement obligations | 2,493,741 | 1,560,601 | ||
| Operating lease liability | 112,870 | — | ||
| Total liabilities | 17,751,103 | 15,635,986 | ||
| Commitments and contingencies | ||||
| Stockholders’ equity | ||||
| Common stock; par value $0.001; 100,000,000 shares authorized; 33,106,988 and 33,183,730 shares issued and outstanding, respectively | 33,107 | 33,183 | ||
| Additional paid-in capital | 41,306,353 | 42,488,913 | ||
| Retained earnings | 35,540,306 | 37,603,762 | ||
| Total stockholders’ equity | 76,879,766 | 80,125,858 | ||
| Total liabilities and stockholders’ equity | $ | 94,630,869 | $ | 95,761,844 |
Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited)
| Six Months Ended <br> December 31, | ||||||
|---|---|---|---|---|---|---|
| 2019 | 2018 | |||||
| Cash flows from operating activities | ||||||
| Net income | $ | 4,557,738 | $ | 9,700,366 | ||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
| Depreciation, depletion and amortization | 2,910,803 | 3,152,093 | ||||
| Stock-based compensation | 568,203 | 469,484 | ||||
| Settlements of asset retirement obligations | (26,773 | ) | — | |||
| Deferred income tax expense (benefit) | 40,252 | 506,297 | ||||
| (Gain) loss on derivative instruments, net | — | |||||
| Other | 32,149 | 9,648 | ||||
| Changes in operating assets and liabilities: | ||||||
| Receivables | (840,298 | ) | 507,689 | |||
| Prepaid expenses | (60,118 | ) | (70,048 | ) | ||
| Accrued liabilities and other | 875,929 | (144,638 | ) | |||
| Income taxes payable | 116,173 | 13,364 | ||||
| Net cash provided by operating activities | 8,174,058 | 14,144,255 | ||||
| Cash flows from investing activities | ||||||
| Acquisition of oil and natural gas properties | (9,337,716 | ) | — | |||
| Capital expenditures for oil and natural gas properties | (1,080,874 | ) | (5,048,987 | ) | ||
| Capital expenditures for other property and equipment | — | (2,066 | ) | |||
| Net cash used in investing activities | (10,418,590 | ) | (5,051,053 | ) | ||
| Cash flows from financing activities | ||||||
| Cash dividends to common stockholders | (6,621,194 | ) | (6,634,896 | ) | ||
| Common share repurchases, including shares surrendered for tax withholding | (1,750,839 | ) | (138,638 | ) | ||
| Net cash used in financing activities | (8,372,033 | ) | (6,773,534 | ) | ||
| Net change in cash, cash equivalents and restricted cash | (10,616,565 | ) | 2,319,668 | |||
| Cash, cash equivalents and restricted cash, beginning of period | 31,552,533 | 27,681,133 | ||||
| Cash and cash equivalents, end of period | $ | 20,935,968 | $ | 30,000,801 | ||
| Supplemental disclosures of cash flow information: | Six Months Ended <br> December 31, | |||||
| --- | --- | --- | --- | --- | --- | |
| 2019 | 2018 | |||||
| Income taxes paid | $ | 1,100,000 | $ | 1,862,919 | ||
| Non-cash transactions: | ||||||
| Change in accounts payable used to acquire oil and natural gas properties | 39,361 | (1,094,249 | ) | |||
| Oil and natural gas property costs incurred through recognition of asset retirement obligations and revision of previous estimates | 871,076 | 31,268 |
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
| Three Months Ended | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2019 | September 30, 2019 | Variance | Variance % | |||||||||||||||
| Oil and gas production | ||||||||||||||||||
| Crude oil revenues | $ | 8,974,237 | $ | 8,845,504 | $ | 128,733 | 1.5 | % | ||||||||||
| NGL revenues | 406,634 | 305,944 | 100,690 | 32.9 | % | |||||||||||||
| Natural gas revenues | 744 | 767 | (23 | ) | n.m. | |||||||||||||
| Total revenues | $ | 9,381,615 | $ | 9,152,215 | $ | 229,400 | 2.5 | % | ||||||||||
| Crude oil volumes (Bbl) | 168,117 | 149,107 | 19,010 | 12.7 | % | |||||||||||||
| NGL volumes (Bbl) | 27,260 | 26,516 | 744 | 2.8 | % | |||||||||||||
| Natural gas volumes (Mcf) | 356 | 356 | — | n.m. | ||||||||||||||
| Equivalent volumes (BOE) | 195,437 | 175,682 | 19,755 | 11.2 | % | |||||||||||||
| Crude oil (BOPD, net) | 1,827 | 1,621 | 206 | 12.7 | % | |||||||||||||
| NGLs (BOEPD, net) | 296 | 288 | 8 | 2.8 | % | |||||||||||||
| Natural gas (BOEPD, net) | 1 | 1 | — | n.m. | ||||||||||||||
| Equivalent volumes (BOEPD, net) | 2,124 | 1,910 | 214 | 11.2 | % | |||||||||||||
| Crude oil price per Bbl | $ | 53.38 | $ | 59.32 | $ | (5.94 | ) | (10.0 | )% | |||||||||
| NGL price per Bbl | 14.92 | 11.54 | 3.38 | 29.3 | % | |||||||||||||
| Natural gas price per Mcf | 2.09 | 2.15 | (0.06 | ) | n.m. | |||||||||||||
| Equivalent price per BOE | $ | 48.00 | $ | 52.10 | $ | (4.10 | ) | (7.9 | )% | |||||||||
| CO2 costs | $ | 1,410,213 | $ | 1,284,767 | $ | 125,446 | 9.8 | % | ||||||||||
| Other production costs | 2,824,392 | 1,805,322 | 1,019,070 | 56.4 | % | |||||||||||||
| Total production costs | $ | 4,234,605 | $ | 3,090,089 | $ | 1,144,516 | 37.0 | % | ||||||||||
| CO2 costs per BOE | $ | 7.22 | $ | 7.31 | $ | (0.09 | ) | (1.2 | )% | |||||||||
| All other production costs per BOE | 14.45 | 10.28 | 4.17 | 40.6 | % | |||||||||||||
| Production costs per BOE | $ | 21.67 | $ | 17.59 | $ | 4.08 | 23.2 | % | ||||||||||
| CO2 costs per mcf | $ | 0.77 | $ | 0.84 | $ | (0.07 | ) | (8.3 | )% | |||||||||
| CO2 volumes (MMcf per day, gross) | 83.6 | 69.7 | 13.9 | 19.9 | % | |||||||||||||
| DD&A of proved oil and gas properties | $ | 1,419,333 | $ | 1,417,754 | $ | 1,579 | 0.1 | % | ||||||||||
| Depreciation of other property and equipment | 2,182 | 2,322 | (140 | ) | (6.0 | )% | ||||||||||||
| Amortization of intangibles | 3,391 | 3,391 | — | — | % | |||||||||||||
| Accretion of asset retirement obligations | 36,143 | 26,287 | 9,856 | 37.5 | % | |||||||||||||
| Total DD&A | $ | 1,461,049 | $ | 1,449,754 | $ | 11,295 | 0.8 | % | ||||||||||
| Oil and gas DD&A rate per BOE | $ | 7.26 | $ | 8.07 | $ | (0.81 | ) | (10.0 | )% | The current quarterly results above and the current year to date results that follow, include those of our interest in the Hamilton Dome field commencing November 1, 2019. | Crude Oil Revenues | Crude Oil Volumes (Bbl) | Crude Oil Price per Bbl | Other Production Costs | ||||
| --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||
| $ | 1,124,695 | 26,850 | $ | 41.89 | $ | 922,736 |
n.m. Not meaningful.
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
| ` | Three Months Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Variance | Variance % | ||||||
| Oil and gas production | |||||||||
| Crude oil revenues | $ | 8,974,237 | $ | 10,515,875 | $ | (1,541,638 | ) | (14.7 | )% |
| NGL revenues | 406,634 | 532,243 | (125,609 | ) | (23.6 | )% | |||
| Natural gas revenues | 744 | — | 744 | n.m. | |||||
| Total revenues | $ | 9,381,615 | $ | 11,048,118 | $ | (1,666,503 | ) | (15.1 | )% |
| Crude oil volumes (Bbl) | 168,117 | 163,361 | 4,756 | 2.9 | % | ||||
| NGL volumes (Bbl) | 27,260 | 23,701 | 3,559 | 15.0 | % | ||||
| Natural gas volumes (Mcf) | 356 | — | 356 | n.m. | |||||
| Equivalent volumes (BOE) | 195,437 | 187,062 | 8,375 | 4.5 | % | ||||
| Crude oil (BOPD, net) | 1,827 | 1,776 | 51 | 2.9 | % | ||||
| NGLs (BOEPD, net) | 296 | 258 | 38 | 14.7 | % | ||||
| Natural gas (BOEPD, net) | 1 | — | 1 | n.m. | |||||
| Equivalent volumes (BOEPD, net) | 2,124 | 2,034 | 90 | 4.4 | % | ||||
| Crude oil price per Bbl | $ | 53.38 | $ | 64.37 | $ | (10.99 | ) | (17.1 | )% |
| NGL price per Bbl | 14.92 | 22.46 | (7.54 | ) | (33.6 | )% | |||
| Natural gas price per Mcf | 2.09 | — | 2.09 | n.m. | |||||
| Equivalent price per BOE | $ | 48.00 | $ | 59.06 | $ | (11.06 | ) | (18.7 | )% |
| CO2 costs | $ | 1,410,213 | $ | 1,504,930 | $ | (94,717 | ) | (6.3 | )% |
| Other production costs | 2,824,392 | 1,947,238 | 877,154 | 45.0 | % | ||||
| Total production costs | $ | 4,234,605 | $ | 3,452,168 | $ | 782,437 | 22.7 | % | |
| CO2 costs per BOE | $ | 7.22 | $ | 8.05 | $ | (0.83 | ) | (10.3 | )% |
| All other production costs per BOE | 14.45 | 10.40 | 4.05 | 38.9 | % | ||||
| Production costs per BOE | $ | 21.67 | $ | 18.45 | $ | 3.22 | 17.5 | % | |
| CO2 costs per mcf | $ | 0.77 | $ | 0.90 | $ | (0.13 | ) | (14.4 | )% |
| CO2 volumes (MMcf per day, gross) | 83.6 | 76.3 | 7.3 | 9.6 | % | ||||
| DD&A of proved oil and gas properties | $ | 1,419,333 | $ | 1,571,321 | $ | (151,988 | ) | (9.7 | )% |
| Depreciation of other property and equipment | 2,182 | 4,143 | (1,961 | ) | (47.3 | )% | |||
| Amortization of intangibles | 3,391 | 3,391 | — | — | % | ||||
| Accretion of asset retirement obligations | 36,143 | 24,778 | 11,365 | 45.9 | % | ||||
| Total DD&A | $ | 1,461,049 | $ | 1,603,633 | $ | (142,584 | ) | (8.9 | )% |
| Oil and gas DD&A rate per BOE | $ | 7.26 | $ | 8.40 | $ | (1.14 | ) | (13.6 | )% |
Supplemental Information on Oil and Natural Gas Operations (Unaudited)
| ` | Six Months Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Variance | Variance % | ||||||
| Oil and gas production | |||||||||
| Crude oil revenues | $ | 17,819,741 | $ | 21,913,327 | $ | (4,093,586 | ) | (18.7 | )% |
| NGL revenues | 712,578 | 1,441,870 | (729,292 | ) | (50.6 | )% | |||
| Natural gas revenues | 1,511 | — | 1,511 | n.m. | |||||
| Total revenues | $ | 18,533,830 | $ | 23,355,197 | $ | (4,821,367 | ) | (20.6 | )% |
| Crude oil volumes (Bbl) | 317,224 | 322,267 | (5,043 | ) | (1.6 | )% | |||
| NGL volumes (Bbl) | 53,776 | 48,102 | 5,674 | 11.8 | % | ||||
| Natural gas volumes (Mcf) | 712 | — | 712 | n.m. | |||||
| Equivalent volumes (BOE) | 371,119 | 370,369 | 750 | 0.2 | % | ||||
| Crude oil (BOPD, net) | 1,724 | 1,751 | (27 | ) | (1.5 | )% | |||
| NGLs (BOEPD, net) | 292 | 261 | 31 | 11.9 | % | ||||
| Natural gas (BOEPD, net) | 1 | — | 1 | n.m. | |||||
| Equivalent volumes (BOEPD, net) | 2,017 | 2,012 | 5 | 0.2 | % | ||||
| Crude oil price per Bbl | $ | 56.17 | $ | 68.00 | $ | (11.83 | ) | (17.4 | )% |
| NGL price per Bbl | 13.25 | 29.98 | (16.73 | ) | (55.8 | )% | |||
| Natural gas price per Mcf | 2.12 | — | 2.12 | n.m. | |||||
| Equivalent price per BOE | $ | 49.94 | $ | 63.06 | $ | (13.12 | ) | (20.8 | )% |
| CO2 costs (a) | $ | 2,694,980 | $ | 2,988,782 | $ | (293,802 | ) | (9.8 | )% |
| Other production costs | 4,629,714 | 3,921,816 | 707,898 | 18.1 | % | ||||
| Total production costs | $ | 7,324,694 | $ | 6,910,598 | $ | 414,096 | 6.0 | % | |
| CO2 costs per BOE | $ | 7.26 | $ | 8.07 | $ | (0.81 | ) | (10.0 | )% |
| All other production costs per BOE | 12.48 | 10.59 | 1.89 | 17.8 | % | ||||
| Production costs per BOE | $ | 19.74 | $ | 18.66 | $ | 1.08 | 5.8 | % | |
| CO2 costs per mcf | $ | 0.80 | $ | 0.93 | $ | (0.13 | ) | (14.0 | )% |
| CO2 volumes (MMcf per day, gross) | 76.6 | 72.9 | 3.7 | 5.1 | % | ||||
| DD&A of proved oil and gas properties | $ | 2,837,087 | $ | 3,088,063 | $ | (250,976 | ) | (8.1 | )% |
| Depreciation of other property and equipment | 4,504 | 8,286 | (3,782 | ) | (45.6 | )% | |||
| Amortization of intangibles | 6,782 | 6,782 | — | — | % | ||||
| Accretion of asset retirement obligations | 62,430 | 48,962 | 13,468 | 27.5 | % | ||||
| Total DD&A | $ | 2,910,803 | $ | 3,152,093 | $ | (241,290 | ) | (7.7 | )% |
| Oil and gas DD&A rate per BOE | $ | 7.64 | $ | 8.34 | $ | (0.70 | ) | (8.4 | )% |