EPM Q3 - Nov 6

[dan_s]

John White: "Our valuation is based on a net asset value (NAV) analysis which produced $5.57 per share which we adjusted lower to our $5.50 per share price target."

EPM: Beats on EBITDA/CFPS, Production In-Line: Positive

EPM reported 3Q 2020 production of 1,841 BOE per day, in line with our estimate of 1,821 BOE per day and the consensus figure of 1,844 BOE per day. In turn, EPM reported 3Q 2020 EBITDA of $1.9 million, topping the consensus figure of $1.5 million. CFPS was $0.04 which topped the consensus figure of $0.03. The beat on EBITDA and CFPS was due to the higher production and slightly lower than expected LOE.

Operations:

Purchased CO2 supply came back online at the Delhi field as pipeline repairs were recently completed. Purchased CO2 started flowing again on October 26, 2020 at an initial restricted rate of approximately 65 MMcf per day. Resumption of CO2 injection volumes is expected to gradually restore reservoir pressure to previous levels which should benefit total oil production.

Denbury Resources Inc. (DEN-NC), the operator of the Delhi field, announced that it had completed its financial restructuring and emerged from Chapter 11 bankruptcy. EPM believes that Denbury now has access to capital, liquidity and the financial flexibility to begin Phase V development and other conformance work during 2021.

[CreativeEquity]

Hi Dan, Are you still tracking EPM ? I noticed they are now at 4400 BOEPD with not debt or hedging. https://www.evolutionpetroleum.com/wp-c ... r-2021.pdf

[dan_s]

I don't follow EPM anymore. Their timing of the North Texas acquisition sure looks good since that is a pure play on gas and NGLs.

[CreativeEquity]

Yes, I was thinking the same. thanks.