EPM

[dan_s]

Evolution Petroleum (EPM): An updated Net Income & Cash Flow Forecast has been posted under the Watch List Tab.

My Fair Value Estimate is $17.15/share, compared to First Call's Price Target of $14.88.

My FVE assumes the Delhi Field (a CO2 flood operated by Denbury Resources) reaches "Payout" on 7-1-2014. If Payout is pushed back six months, it reduces my FVE by about $1.00 per share.

My forecast has nothing in it for their GARP technology, which definitely has potential.

EPM is sitting on a pile of cash and they pay a nice dividend (~3% annual yield) on the common stock. When EPM and DNR resolve their dispute over when "Payout" occurs at Delhi, the share price should move higher. EPM's interest in Delhi is like an annuity that will pay out for decades. The Delhi CO2 Flood has several phases. Production will be ramping up for several more years, until EPM's share is over 2,500 BOPD + gas and NGLs.

NOTE: If you hold EPM's pfd stock be careful. It is callable at $25/share.

[wilmawatts]

Like these guys too Dan. Good asset base