Evolution Petroleum Update - Dec 15

dan_s · Post by **dan_s** » Sat Dec 15, 2018 11:14 am

I have posted an updated profile and forecast/valuation model for EPM to our website. My valuation is $10.75; more than 30% higher than were it closed on Friday.

It is one of the small-cap C-Corps. in our High Yield Income Portfolio that has a secure quarterly dividend.
The annual dividend yield is ~5.6% and the share price should move up as oil prices drift higher in 2019.

Evolution is a one asset company with NO DEBT. Even with oil at $50/bbl, EPM will generate a lot of free cash flow from operations; more than enough to cover their dividends.