EPM - interview with Randy Keys, President

[dan_s]

http://www.oilandgas360.com/evolution-p ... e-26401157

EPM is debt free and generates free cash flow, even at today's oil price. Their interest in the Delhi Field (operated by DNR) is the company's most significant asset.

[mkarpoff]

According to Yahoo they have a 4% yield. Have any idea if it is sustainable?

[dan_s]

Take just a few minutes to look at the balance sheet. You can download the 10-Q from their website. It is one of the cleanest balance sheets I have ever seen. EPG is a very simple company with one big asset, their non-operating interest in the Delhi Field. EPM has a 4:1 Current Ratio and no long-term debt. Forget the Deferred Income Taxes on the balance sheet, they won't get paid anytime soon.

For yield, I recommend their preferred stock.

I know the company is looking for a large acquisition. That is the only thing I see that might put the common stock dividend at risk.

They could acquire a company in the $200 million range.