Document


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
 



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
                   (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 25th 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 17th 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 
 December 31,
 
Six Months Ended 
 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,
2019
 
June 30,
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 
 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 
 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
)%

####