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): May 6, 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 May 6, 2020, Evolution Petroleum Corporation (the “Company”) issued a press release reporting on financial and operating results for the quarter ended March 31, 2020, the Company's third quarter of fiscal 2020.  A copy of the press release, dated May 6, 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)
 
 
 
Date:
May 7, 2020
By:
/s/ JASON E. BROWN
 
 
Name:
Jason E. Brown
 
 
Title:
President and Chief Executive Officer



3
Exhibit


Exhibit 99.1

Evolution Petroleum Announces Results for the Fiscal 2020 Third Quarter Ended March 31, 2020 and
Declares Quarterly Common Stock Dividend

HOUSTON, TX / ACCESSWIRE / May 6, 2020 / Evolution Petroleum (NYSE American:EPM) ("Evolution" or the "Company") announced today financial results and operating highlights for its fiscal third quarter ended March 31, 2020.
Highlights for the Quarter:
Paid 26th consecutive quarterly cash dividend (9th consecutive dividend of $0.10 per share) on common shares and declared the next dividend payment of $0.025 per share, payable on June 30, 2020.
Net income of $3.7 million, marking the 16th consecutive quarter of positive reported net income, inclusive of a $2.8 million income tax benefit related to Enhanced Oil Recovery credits.
Cash flows from operating activities of $4.1 million and $12.2 million for the three and nine months ended March 31, 2020.
Ended the quarter with $20.7 million in cash, an undrawn credit facility, and no debt.
Management Comments on Results
"These are truly unprecedented times where we have seen a combination of a global pandemic, the economic slowdown and reduced demand corresponding to the virtual shutdown of multiple countries, and a substantial decline in oil prices," said Jason Brown, President and CEO. "We believe our long life, low decline assets, coupled with our unique royalty interest, continue to be among the best in the industry as evidenced by our ability to generate positive earnings and cash flows from operations. Our deliberate strategy of having a debt free balance sheet with cash on hand is proving to be a prudent position and we have taken additional steps that will enable us to protect our financial strength and allow us to take advantage in an opportunistic environment. In April 2020 we entered into a financial hedge position that locked in a fixed West Texas Intermediate (WTI) price of $32.00 per barrel on a substantial portion of our anticipated production through December 2020. We also made the decision to lower the dividend temporarily to $0.025 per quarter until the industry can emerge from this current economic climate."
"Although we do not foresee takeaway capacity being a concern, we continue to work diligently with our third-party operators to preserve cash by temporarily shutting-in wells that are uneconomic at current prices to the extent possible, taking into consideration fixed costs and reservoir integrity. We believe these difficult times could lead to new opportunities for the Company to acquire quality reserves at unusually attractive prices and selectively add assets that can grow the Company and support our future dividends."
Financial and Operational Results
Evolution reported total revenues for the quarter of $7.7 million versus $9.4 million in the prior quarter, a 17.8% decrease, primarily driven by a 19.2% decrease in the average realized oil price of $43.16 per barrel compared to $53.38 in the prior quarter. This decrease was partially offset by a 1.9% increase in total volumes primarily due to the inclusion of a full quarter of volumes from Hamilton Dome which was acquired on November 1, 2019. Also contributing to the decrease in total revenues was a decrease of 35.9% in the average realized NGL price of $9.56 per barrel of oil equivalent ("BOE") compared to $14.92 per BOE, in the prior quarter.
At the Delhi Field, the current quarter's lower average realized oil prices were further impacted by approximately $0.2 million for temporary trucking and handling charges due to the planned repair to a section of the oil sales pipeline. The pipeline repair project commenced in mid-November and was completed as scheduled in late January, and all Delhi oil sales were back through pipeline as of February 1, 2020.
Total net production in barrels of oil equivalent per day ("BOEPD") increased 1.9% to 2,164 BOEPD in the current quarter compared to 2,124 BOEPD in the prior quarter. This increase is attributed to the quarterly results including a full quarter of production from the Hamilton Dome field compared to only sixty-one days of production in the prior quarter.
Production costs were $3.9 million in the current quarter, a decrease of 8.0% from $4.2 million in the prior quarter. Delhi CO2 costs decreased $0.6 million, or 42.8%, from the prior quarter. The pipeline that supplies CO2 to the Delhi field was shut in on February 22, 2020 when a pressure loss was detected. Evolution does not have any ownership in this portion of the pipeline. The recycle facilities are operating as usual, and these facilities provide approximately 80% of the injected CO2 volumes. The





operator is still assessing the impact to production and does not have a firm estimate as to when the pipeline will be returned to service. Also contributing to the decrease in production costs was the reduction in CO2 price due to a 14.9% reduction in the Company's realized oil prices associated with its Delhi production. Offsetting these decreases was a $0.2 million increase, or 9.4%, in other production costs primarily due to the inclusion of a full quarter of Hamilton Dome.
General and administrative (''G&A'') expenses increased 2.1% to $1.5 million for the current quarter, compared to the prior quarter. Increased G&A expenses are primarily attributable to a slight increase in the Company's professional service expenses.
In the quarter, the Company recorded a one-time income tax benefit of $2.8 million for Enhanced Oil Recovery tax credits impacting our fiscal 2019 and certain amended prior year returns. At March 31, 2020, the Company has a receivable for income tax refunds of approximately $3.2 million.
Net income for the quarter was $3.7 million, or $0.11 per diluted share, a 110% increase, compared to $1.8 million, or $0.05 per diluted share, in the previous quarter.
Capital Spending
During the current quarter, Evolution incurred $0.2 million on capital, primarily for the NGL plant and completion of the water curtain project at Delhi. The Company does not anticipate any material net capital spending for the remainder of fiscal 2020 as all remaining conformance and capital workover plans have been delayed based on the recent decrease in oil prices. The Delhi operator previously reported that its 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 increased by $1.4 million from the prior quarter to $23.1 million. The increase in working capital is primarily due to the large income tax receivable resulting from EOR credits, offset by a decrease in oil and gas receivables due to lower average realized prices. The Company ended the quarter with $20.7 million in cash after paying out $3.3 million in dividends, no debt and an untapped reserve-based credit facility. On April 27, 2020, the Company completed its annual spring redetermination. As expected, the redetermination of the borrowing base resulted in a decrease to $27 million, which remains fully undrawn.
Hedge Update
On April 6, 2020, the Company entered into NYMEX WTI oil swaps covering 1,400 barrels per day (or approximately 42,000 barrels per month), a substantial portion of the Company's anticipated oil production, for the period April 1, 2020 through December 31, 2020, at a fixed swap price of $32.00 per barrel. Although Evolution does not typically employ hedging strategies, the Company believes this partial price protection will enable it to maintain its current financial strength and allow it to continue to look to selectively add to its existing asset base through a combination of cash on hand and availability under its credit facility.
Operations Update
Subsequent to December 31, 2019, oil prices have declined sharply as a result of multiple significant factors impacting supply and demand in the global oil and natural gas markets, including the global pandemic of COVID-19. Most recently, the continued loss of consumer demand has led to a surplus in crude products that has filled the country's storage capacity and created a contango, or an increase from the current month's low price, in the WTI futures curve.
The Company is working with its operating partners to review lifting costs on a well-by-well basis, basing shut-in decisions on wells with low or temporarily negative netbacks, while retaining the operating flexibility to return wells to service as realized prices improve. The Company is continuing to monitor the oil price environment and is working with its operators to plan accordingly for various scenarios.
Cash Dividend on Common Stock
The Company has paid twenty-six consecutive quarterly dividends, with the previous nine at a rate of $0.10 per share. While the long-term strategy towards the dividend remains unchanged, the Board of Directors believes it is prudent to temporarily adjust the current quarterly dividend rate to $0.025 per share in the short term. This change will go into effect in the quarter ending June 30, 2020. This proactive move is being done to maintain the cash balance should the challenging circumstances persist beyond just the next few months as the economic slowdown and the COVID-19 pandemic continue to evolve. Maintaining the cash position also allows the Company greater flexibility as both Management and the Board of Directors believe the current market conditions could create meaningful M&A opportunities to grow the Company. The Company continues to reward shareholders with more than a 3% yield at the current stock price. The long-term plan of distributing a substantial portion of the Company's free cash flow in excess of operating and capital requirements through cash dividends





remains a high priority of the overall financial strategy, and the Company expects to return to higher dividend levels after the industry's emergence from the current market turmoil and continue to increase dividends over time, as appropriate. The cash dividend will be paid on June 30, 2020 to common stockholders of record on June 15, 2020.
The CARES Act
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") into law. The CARES Act is a relief package intended to assist many aspects of the American economy with a focus on those companies lacking access to other sources of liquidity. The Company reviewed all aspects of the act, including the Paycheck Protection Program (PPP) which initially provided up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. The decision was made not to participate based on the Company's current financial position, the guidance provided by Congress and the administration and the immaterial amount of the anticipated loan.
Quarterly Conference Call
Evolution Petroleum Corporation will host its earnings conference call for the quarter ended March 31, 2020 on Thursday, May 7, 2020 at 2:00 p.m. Eastern (1:00 p.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, May 7, 2020
Time: 2:00 p.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/2188/34451 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 June 7, 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 34451.
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 assets are its interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field and its interests in the Hamilton Dome unitized field located in Hot Springs County, Wyoming. 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 Contacts:
Jason Brown, President & CEO
(713) 554-1850
David Joe, SVP & CFO
(713) 554-1860
                    
Financial Tables to Follow




Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Operations
(Unaudited)
 


 
Three Months Ended 
 March 31,
 
Nine Months Ended 
 March 31,
 
2020
 
2019
 
2020
 
2019
Revenues
 
 
 
 
 

 
 

Crude oil
$
7,461,823

 
$
9,032,032

 
$
25,281,564

 
$
30,945,359

Natural gas liquids
250,476

 
468,525

 
963,054

 
1,910,395

Natural gas
320

 
471

 
1,831

 
471

Total revenues
7,712,619

 
9,501,028

 
26,246,449

 
32,856,225

Operating costs
 
 
 
 
 
 
 
Production costs
3,895,544

 
3,793,008

 
11,220,238

 
10,703,606

Depreciation, depletion and amortization
1,399,481

 
1,558,130

 
4,310,284

 
4,710,223

General and administrative expenses *
1,465,780

 
1,196,935

 
4,240,330

 
3,760,767

Total operating costs
6,760,805

 
6,548,073

 
19,770,852

 
19,174,596

Income from operations
951,814

 
2,952,955

 
6,475,597

 
13,681,629

Other
 

 
 

 
 
 
 
Enduro transaction breakup fee

 

 

 
1,100,000

Interest and other income
41,186

 
65,831

 
160,256

 
172,260

Interest expense
(29,067
)
 
(28,789
)
 
(87,757
)
 
(87,479
)
Income before income taxes
963,933

 
2,989,997

 
6,548,096

 
14,866,410

Income tax provision (benefit)
(2,746,226
)
 
591,122

 
(1,719,801
)
 
2,767,169

Net income available to common stockholders
$
3,710,159

 
$
2,398,875

 
$
8,267,897

 
$
12,099,241

Earnings per common share
 
 
 
 
 
 
 
Basic
$
0.11

 
$
0.07

 
$
0.25

 
0.36

Diluted
$
0.11

 
$
0.07

 
$
0.25

 
0.36

Weighted average number of common shares
 

 
 

 
 

 
 

Basic
33,052,162

 
33,186,665

 
33,055,861

 
33,151,786

Diluted
33,052,162

 
33,196,197

 
33,058,446

 
33,163,661



* For the three months ended March 31, 2020 and 2019, non-cash stock-based compensation expenses were $358,591 and $208,665, respectively. For the nine months ended March 31, 2020 and 2019, non-cash stock-based compensation expenses were $926,794 and $678,149, respectively.



Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(Unaudited) 

 
March 31,
2020
 
June 30,
2019
Assets
 

 
 

Current assets
 

 
 

Cash and cash equivalents
$
20,693,234

 
$
31,552,533

Receivables
5,222,213

 
3,168,116

Prepaid expenses
303,375

 
458,278

Total current assets
26,218,822

 
35,178,927

Oil and natural gas properties, net (full-cost method of accounting)
67,668,686

 
60,346,466

Other property and equipment, net
19,449

 
26,418

Total property and equipment
67,688,135

 
60,372,884

Other assets, net
311,695

 
210,033

Total assets
$
94,218,652

 
$
95,761,844

Liabilities and Stockholders’ Equity
 

 
 

Current liabilities
 

 
 

Accounts payable
$
2,263,940

 
$
2,084,140

Accrued liabilities and other
570,239

 
537,755

State and federal income taxes payable
274,299

 
130,799

Total current liabilities
3,108,478

 
2,752,694

Long term liabilities
 

 
 

Deferred income taxes
11,591,629

 
11,322,691

Asset retirement obligations
2,499,180

 
1,560,601

Operating lease liability
99,014

 

Total liabilities
17,298,301

 
15,635,986

Commitments and contingencies
 
 
 
Stockholders’ equity
 

 
 

Common stock; par value $0.001; 100,000,000 shares authorized; 32,956,469 and 33,183,730 shares issued and outstanding, respectively
32,956

 
33,183

Additional paid-in capital
40,932,577

 
42,488,913

Retained earnings
35,954,818

 
37,603,762

Total stockholders’ equity
76,920,351

 
80,125,858

Total liabilities and stockholders’ equity
$
94,218,652

 
$
95,761,844





Evolution Petroleum Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(Unaudited)


 
Nine Months Ended 
 March 31,
 
2020
 
2019
Cash flows from operating activities
 

 
 

Net income
$
8,267,897

 
$
12,099,241

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Depreciation, depletion and amortization
4,310,284

 
4,710,223

Stock-based compensation
926,794

 
678,149

Settlements of asset retirement obligations
(76,833
)
 

Deferred income tax expense
268,938

 
633,625

(Gain) loss on derivative instruments, net
 
 

Other
35,966

 
11,367

Changes in operating assets and liabilities:
 

 
 

Receivables
(2,054,097
)
 
254,900

Prepaid expenses
154,903

 
(155,364
)
Accrued liabilities and other
256,112

 
123,853

Income taxes payable
143,500

 
(22,842
)
Net cash provided by operating activities
12,233,464

 
18,333,152

Cash flows from investing activities
 

 
 

Acquisition of oil and natural gas properties
(9,337,716
)
 

Capital expenditures for oil and natural gas properties
(1,354,849
)
 
(6,369,363
)
Capital expenditures for other property and equipment

 
(2,337
)
Net cash used in investing activities
(10,692,565
)
 
(6,371,700
)
Cash flows from financing activities
 

 
 

Cash dividends to common stockholders
(9,916,841
)
 
(9,953,562
)
Common share repurchases, including shares surrendered for tax withholding
(2,483,357
)
 
(138,638
)
Net cash used in financing activities
(12,400,198
)
 
(10,092,200
)
Net change in cash, cash equivalents and restricted cash
(10,859,299
)
 
1,869,252

Cash, cash equivalents and restricted cash, beginning of period
31,552,533

 
27,681,133

Cash and cash equivalents, end of period
$
20,693,234

 
$
29,550,385





Supplemental disclosures of cash flow information:
Nine Months Ended 
 March 31,
 
2020
 
2019
Income taxes paid
$
1,150,000

 
$
2,362,919

Non-cash transactions:
 

 
 

Change in accounts payable used to acquire oil and natural gas properties
(42,371
)
 
(1,748,122
)
Oil and natural gas property costs incurred through recognition of asset retirement obligations and revision of previous estimates
871,076

 
84,999





Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Three Months Ended
 
 
 
 
 
March 31, 2020
 
December 31, 2019
 
Variance
 
Variance %
Oil and gas production
 
 
 
 
 
 
 
  Crude oil revenues
$
7,461,823

 
$
8,974,237

 
$
(1,512,414
)
 
(16.9
)%
  NGL revenues
250,476

 
406,634

 
(156,158
)
 
(38.4
)%
  Natural gas revenues
320

 
744

 
(424
)
 
(57.0
)%
  Total revenues
$
7,712,619

 
$
9,381,615

 
$
(1,668,996
)
 
(17.8
)%
 
 
 
 
 
 
 
 
  Crude oil volumes (Bbl)
172,901

 
168,117

 
4,784

 
2.8
 %
  NGL volumes (Bbl)
26,206

 
27,260

 
(1,054
)
 
(3.9
)%
  Natural gas volumes (Mcf)
223

 
356

 
(133
)
 
(37.4
)%
Equivalent volumes (BOE)
199,144

 
195,437

 
3,707

 
1.9
 %
 
 
 
 
 
 
 
 
  Crude oil (BOPD, net)
1,879

 
1,827

 
52

 
2.8
 %
  NGLs (BOEPD, net)
285

 
296

 
(11
)
 
(3.7
)%
  Natural gas (BOEPD, net)

 
1

 
(1
)
 
n.m.

 Equivalent volumes (BOEPD, net)
2,164

 
2,124

 
40

 
1.9
 %
 
 
 
 
 
 
 
 
  Crude oil price per Bbl
$
43.16

 
$
53.38

 
$
(10.22
)
 
(19.1
)%
  NGL price per Bbl
9.56

 
14.92

 
(5.36
)
 
(35.9
)%
  Natural gas price per Mcf
1.43

 
2.09

 
(0.66
)
 
n.m.

   Equivalent price per BOE
$
38.73

 
$
48.00

 
$
(9.27
)
 
(19.3
)%
 
 
 
 
 
 
 
 
CO2 costs
$
806,527

 
$
1,410,213

 
$
(603,686
)
 
(42.8
)%
Other production costs
3,089,017

 
2,824,392

 
264,625

 
9.4
 %
Total production costs
$
3,895,544

 
$
4,234,605

 
$
(339,061
)
 
(8.0
)%
 
 
 
 
 
 
 
 
CO2 costs per BOE
$
4.05

 
$
7.22

 
$
(3.17
)
 
(43.9
)%
All other production costs per BOE
15.51

 
14.45

 
1.06

 
7.3
 %
Production costs per BOE
$
19.56

 
$
21.67

 
$
(2.11
)
 
(9.7
)%
 
 
 
 
 
 
 
 
CO2 costs per mcf
$
0.69

 
$
0.77

 
$
(0.08
)
 
(10.4
)%
CO2 volumes (MMcf per day, gross)
53.9

 
83.6

 
(29.7
)
 
(35.5
)%
 
 
 
 
 
 
 
 
DD&A of proved oil and gas properties
$
1,352,203

 
$
1,419,333

 
$
(67,130
)
 
(4.7
)%
Depreciation of other property and equipment
2,465

 
2,182

 
283

 
13.0
 %
Amortization of intangibles
3,391

 
3,391

 

 
 %
Accretion of asset retirement obligations
41,422

 
36,143

 
5,279

 
14.6
 %
Total DD&A
$
1,399,481

 
$
1,461,049

 
$
(61,568
)
 
(4.2
)%
 
 
 
 
 
 
 
 
Oil and gas DD&A rate per BOE
$
6.79

 
$
7.26

 
$
(0.47
)
 
(6.5
)%
n.m. Not meaningful.



Supplemental Information on Oil and Natural Gas Operations (Unaudited)


 
Three Months Ended March 31,
 
 
 
 
 
2020
 
2019
 
Variance
 
Variance %
Oil and gas production
 
 
 
 
 
 
 
  Crude oil revenues
$
7,461,823

 
$
9,032,032

 
$
(1,570,209
)
 
(17.4
)%
  NGL revenues
250,476

 
468,525

 
(218,049
)
 
(46.5
)%
  Natural gas revenues
320

 
471

 
(151
)
 
(32.1
)%
  Total revenues
$
7,712,619

 
$
9,501,028

 
$
(1,788,409
)
 
(18.8
)%
 
 
 
 
 
 
 
 
  Crude oil volumes (Bbl)
172,901

 
152,776

 
20,125

 
13.2
 %
  NGL volumes (Bbl)
26,206

 
28,626

 
(2,420
)
 
(8.5
)%
  Natural gas volumes (Mcf)
223

 
160

 
63

 
39.4
 %
Equivalent volumes (BOE)
199,144

 
181,429

 
17,715

 
9.8
 %
 
 
 
 
 
 
 
 
  Crude oil (BOPD, net)
1,879

 
1,698

 
181

 
10.7
 %
  NGLs (BOEPD, net)
285

 
318

 
(33
)
 
(10.4
)%
  Natural gas (BOEPD, net)

 
n.m.

 
n.m.

 
n.m.

 Equivalent volumes (BOEPD, net)
2,164

 
2,016

 
148

 
7.3
 %
 
 
 
 
 
 
 
 
  Crude oil price per Bbl
$
43.16

 
$
59.12

 
$
(15.96
)
 
(27.0
)%
  NGL price per Bbl
9.56

 
16.37

 
(6.81
)
 
(41.6
)%
  Natural gas price per Mcf
1.43

 
2.94

 
(1.51
)
 
n.m.

   Equivalent price per BOE
$
38.73

 
$
52.37

 
$
(13.64
)
 
(26.0
)%
 
 
 
 
 
 
 
 
CO2 costs
$
806,527

 
$
1,873,720

 
$
(1,067,193
)
 
(57.0
)%
Other production costs
3,089,017

 
1,919,288

 
1,169,729

 
60.9
 %
Total production costs
$
3,895,544

 
$
3,793,008

 
$
102,536

 
2.7
 %
 
 
 
 
 
 
 
 
CO2 costs per BOE
$
4.05

 
$
10.33

 
$
(6.28
)
 
(60.8
)%
All other production costs per BOE
15.51

 
10.58

 
4.93

 
46.6
 %
Production costs per BOE
$
19.56

 
$
20.91

 
$
(1.35
)
 
(6.5
)%
 
 
 
 
 
 
 
 
CO2 costs per mcf
$
0.69

 
$
0.84

 
$
(0.15
)
 
(17.9
)%
CO2 volumes (MMcf per day, gross)
53.9

 
103.3

 
(49.4
)
 
(47.8
)%
 
 
 
 
 
 
 
 
DD&A of proved oil and gas properties
$
1,352,203

 
$
1,523,990

 
$
(171,787
)
 
(11.3
)%
Depreciation of other property and equipment
2,465

 
4,338

 
(1,873
)
 
(43.2
)%
Amortization of intangibles
3,391

 
3,391

 

 
 %
Accretion of asset retirement obligations
41,422

 
26,411

 
15,011

 
56.8
 %
Total DD&A
$
1,399,481

 
$
1,558,130

 
$
(158,649
)
 
(10.2
)%
 
 
 
 
 
 
 
 
Oil and gas DD&A rate per BOE
$
6.79

 
$
8.40

 
$
(1.61
)
 
(19.2
)%






Supplemental Information on Oil and Natural Gas Operations (Unaudited)

 
Nine Months Ended March 31,
 
 
 
 
 
2020
 
2019
 
Variance
 
Variance %
Oil and gas production
 
 
 
 
 
 
 
  Crude oil revenues
$
25,281,564

 
$
30,945,359

 
$
(5,663,795
)
 
(18.3
)%
  NGL revenues
963,054

 
1,910,395

 
(947,341
)
 
(49.6
)%
  Natural gas revenues
1,831

 
471

 
1,360

 
n.m.

  Total revenues
$
26,246,449

 
$
32,856,225

 
$
(6,609,776
)
 
(20.1
)%
 
 
 
 
 
 
 
 
  Crude oil volumes (Bbl)
490,125

 
475,043

 
15,082

 
3.2
 %
  NGL volumes (Bbl)
79,982

 
76,728

 
3,254

 
4.2
 %
  Natural gas volumes (Mcf)
935

 
160

 
775

 
n.m.

Equivalent volumes (BOE)
570,263

 
551,798

 
18,465

 
3.3
 %
 
 
 
 
 
 
 
 
  Crude oil (BOPD, net)
1,782

 
1,734

 
48

 
2.8
 %
  NGLs (BOEPD, net)
291

 
280

 
11

 
3.9
 %
  Natural gas (BOEPD, net)
1

 
n.m.

 
1

 
n.m.

 Equivalent volumes (BOEPD, net)
2,074

 
2,014

 
60

 
3.0
 %
 
 
 
 
 
 
 
 
  Crude oil price per Bbl
$
51.58

 
$
65.14

 
$
(13.56
)
 
(20.8
)%
  NGL price per Bbl
12.04

 
24.90

 
(12.86
)
 
(51.6
)%
  Natural gas price per Mcf
1.96

 
2.94

 
(0.98
)
 
n.m.

   Equivalent price per BOE
$
46.03

 
$
59.54

 
$
(13.51
)
 
(22.7
)%
 
 
 
 
 
 
 
 
CO2 costs
$
3,501,507

 
$
4,862,502

 
$
(1,360,995
)
 
(28.0
)%
Other production costs
7,718,731

 
5,841,104

 
1,877,627

 
32.1
 %
Total production costs
$
11,220,238

 
$
10,703,606

 
$
516,632

 
4.8
 %
 
 
 
 
 
 
 
 
CO2 costs per BOE
$
6.14

 
$
8.81

 
$
(2.67
)
 
(30.3
)%
All other production costs per BOE
13.54

 
10.59

 
2.95

 
27.9
 %
Production costs per BOE
$
19.68

 
$
19.40

 
$
0.28

 
1.4
 %
 
 
 
 
 
 
 
 
CO2 costs per mcf
$
0.77

 
$
0.90

 
$
(0.13
)
 
(14.4
)%
CO2 volumes (MMcf per day, gross)
69.1

 
82.9

 
(13.8
)
 
(16.6
)%
 
 
 
 
 
 
 
 
DD&A of proved oil and gas properties
$
4,189,290

 
$
4,612,053

 
$
(422,763
)
 
(9.2
)%
Depreciation of other property and equipment
6,969

 
12,624

 
(5,655
)
 
(44.8
)%
Amortization of intangibles
10,173

 
10,173

 

 
 %
Accretion of asset retirement obligations
103,852

 
75,373

 
28,479

 
37.8
 %
Total DD&A
$
4,310,284

 
$
4,710,223

 
$
(399,939
)
 
(8.5
)%
 
 
 
 
 
 
 
 
Oil and gas DD&A rate per BOE
$
7.35

 
$
8.36

 
$
(1.01
)
 
(12.1
)%

####