EPM Reported

[wilmawatts]

Earnings and report looked pretty good. They have assets in the ground

They need another project in which to place their money, the GARP technology is interesting but not sure it has legs

[cviller]

According to the latest webcast, the reversionary interest should kick in during the Oct-Dec quarter but due to capital expenditures it might be a year later before EPM is in a position to significantly increase the dividend. As Gilda Radner used to say, It's always something.

[wilmawatts]

I think they have mentioned the capx a few times. They are afraid Denbury will really throw a huge AFE at them at payout.

[dan_s]

At payout, EPM will have about $10 per month of cash flows from operation. Dividend should increase a lot in 2015.

[cviller]

On yesterday's webcast, Bob Herlin, Chairman and CEO, responding to a question about the dividend, said we are "basically a year away I think from doing anything really meaningful absent any unexpected development." After payout Denbury is going to build a recycle gas processing plant (to capture ngl's and methane) which will take about a year to complete and which will cost EPM about $15 million. That's primarily what is going to delay the bump in the dividend, but there's been no development work since the leak, so they've got other capital expenditures to catch up on. They talk about that and the dividend quite a bit on the call, which is available on their web site.