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Evolution Petroleum Corp (EPM)
:EPM
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Evolution Petroleum
(NYSE MKT:EPM)
54Neutral
Evolution Petroleum (EPM) vs. S&P 500 (SPY)
Market Cap
$145.24M
Dividend Yield11.43%
Average Volume (3M)181.87K
Price to Earnings (P/E)87.2
Beta (1Y)0.70
Revenue Growth-10.60%
EPS Growth-90.09%
CountryUS
Employees11
SectorEnergy
Sector Strength47
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)0.05
Shares Outstanding34,253,900
10 Day Avg. Volume125,661
30 Day Avg. Volume181,865
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit10.91
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.63Price Target Upside56.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Evolution Petroleum Business Overview & Revenue Model
Company DescriptionEvolution Petroleum Corporation, an oil and natural gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company holds interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field. Its Delhi Holt-Bryant Unit covers an area of 13,636 acres located in Northeast Louisiana. The company also holds interests in the Hamilton Dome field covering 5,908 acres located in Wyoming; and Barnett Shale field covering an area of 123,777 acres located in North Texas. Evolution Petroleum Corporation was founded in 2003 and is based in Houston, Texas.
How the Company Makes MoneyEvolution Petroleum generates revenue through the production and sale of oil and natural gas from its portfolio of properties. The company's primary revenue streams include the sale of crude oil and natural gas liquids (NGLs) extracted from its operated and non-operated assets. By focusing on fields with proven reserves and employing enhanced recovery techniques, Evolution Petroleum maximizes production efficiency and profitability. Key factors contributing to the company's earnings include favorable market prices for oil and gas, strategic acquisitions of additional reserves, and partnerships with other operators to optimize resource development. Additionally, Evolution Petroleum aims to maintain low operating costs and a strong balance sheet to support sustainable financial performance.
Evolution Petroleum Financial Statement Overview
Summary
Evolution Petroleum faces challenges in profitability and cash flow, despite a stable balance sheet. The income statement reflects revenue and margin declines, while cash flow shows negative free cash flow and cash management issues. The balance sheet is strong with low leverage, but lower return on equity indicates profitability concerns.Income Statement
Evolution Petroleum's income statement reveals fluctuating revenue with a notable decline in the TTM period, which is concerning. The gross profit margin has decreased from 42.5% in 2023 to 20.4% TTM, indicating pressure on profitability. The net profit margin also fell significantly from 27.4% in 2023 to 2.0% TTM, reflecting increased costs or lower revenue. Additionally, EBIT and EBITDA margins have decreased, emphasizing the need for efficiency improvements.45
Neutral
Balance Sheet
The balance sheet is relatively strong, showcasing a low debt-to-equity ratio of 0.0002 in the TTM period, indicating low leverage. Despite this, the return on equity has dropped from 38.2% in 2023 to 2.3% TTM, suggesting decreased profitability. The equity ratio is healthy at 47.6% TTM, reflecting a solid financial foundation.70
Positive
Cash Flow
Cash flow analysis highlights challenges, with a negative free cash flow of -$17.2 million TTM, a deterioration from -$26.9 million in 2023. The operating cash flow to net income ratio is strong at 15.1 TTM, but the free cash flow to net income ratio is negative, signaling cash management issues. The company needs to address these cash flow concerns to improve financial health.40
Negative
| Breakdown | ||||
| Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 85.88M | 128.51M | 108.93M | 32.70M | 29.60M | Gross Profit |
| 19.00M | 54.70M | 52.22M | 11.16M | 10.48M | EBIT |
| 7.91M | 45.11M | 45.38M | 4.23M | 5.25M | EBITDA |
| 27.02M | 59.39M | 49.67M | -16.15M | 11.01M | Net Income Common Stockholders |
| 4.08M | 35.22M | 32.63M | -16.44M | 5.94M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.45M | 11.03M | 8.28M | 5.28M | 19.66M | Total Assets |
| 162.88M | 128.32M | 148.05M | 76.71M | 92.14M | Total Debt |
| 39.66M | 125.00K | 21.25M | 4.02M | 84.98K | Net Debt |
| 33.21M | -10.91M | 12.97M | -1.26M | -19.58M | Total Liabilities |
| 81.75M | 36.22M | 72.53M | 22.11M | 18.01M | Stockholders Equity |
| 81.13M | 92.09M | 75.51M | 54.59M | 74.12M |
| Cash Flow | Free Cash Flow | |||
| -26.90M | 44.28M | -2.41M | -14.04M | 1.33M | Operating Cash Flow |
| 22.73M | 51.27M | 52.46M | 4.73M | 12.40M | Investing Cash Flow |
| -49.63M | -6.99M | -54.87M | -18.77M | -11.06M | Financing Cash Flow |
| 22.32M | -41.53M | 5.42M | -349.43K | -13.22M |
Evolution Petroleum Technical Analysis
Negative
4.24
Price Trends
4.69
Negative
4.95
Negative
5.02
Negative
Market Momentum
-0.15
Negative
39.89
Neutral
27.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPM, the sentiment is Negative. The current price of 4.24 is below the 20-day moving average (MA) of 4.30, below the 50-day MA of 4.69, and below the 200-day MA of 5.02, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 39.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPM.
Evolution Petroleum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $152.36M | 78.73 | 1.95% | 3.56% | 2.58% | -71.42% | |
69 Neutral | $148.28M | 61.29 | 1.89% | 3.93% | ― | ― | |
56 Neutral | $6.92B | 3.31 | -4.49% | 6.03% | -0.35% | -47.83% | |
55 Neutral | $155.04M | 21.52 | 0.79% | ― | -2.37% | ― | |
55 Neutral | $185.87M | 2.67 | 8.20% | ― | 1.46% | -38.55% | |
54 Neutral | $145.24M | 87.24 | 1.95% | 11.43% | -10.60% | -90.09% | |
43 Neutral | $171.28M | ― | 203.83% | 3.45% | -1.39% | -655.53% |
* Energy Sector Average
Performance Comparison
EPM
Evolution Petroleum
4.24
-0.82
-16.21%
GTE
Gran Tierra Energy
4.35
-4.29
-49.65%
PHX
PHX Minerals
3.91
0.67
20.68%
WTI
W&T Offshore
1.19
-1.09
-47.81%
REI
Ring Energy
0.92
-0.98
-51.58%
EPSN
Epsilon Energy
6.92
1.71
32.82%
Evolution Petroleum Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q2-2025)
| % Change Since: -17.99%|
Next Earnings Date:May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted notable achievements in production growth, consistent dividend payments, and promising M&A opportunities. However, it also acknowledged challenges such as revenue decline due to lower commodity prices, operational issues in Chaveru, and temporary downtime in Williston.Q2-2025 Updates
Positive Updates
Strong Production Growth
Total production grew 10% year over year to 6,935 BOE per day, demonstrating the strength of Evolution's diversified portfolio.
Consistent Dividend Payments
The company announced its 46th consecutive dividend payment, maintaining a quarterly payout of $0.12 per share.
Promising M&A Opportunities
The company is evaluating multiple acquisition opportunities that could enhance long-term growth and cash flow generation, potentially being materially accretive.
Successful Resolution of Operational Issues
Temporary downtime in Williston and Chaveroo was resolved, with production rates fully restored by January.
Above-Average Performance in SCOOP/STACK
Production from SCOOP/STACK is outperforming type curves, with gas production about 10% higher than expected.
Negative Updates
Revenue Decline
Total revenues of $20.3 million were down 4% year over year, primarily due to a 12% decline in realized commodity prices.
Challenges in Chaveru Field
Production at Chaveru was temporarily impacted by gas interference issues in the downhole pumps.
Compressor Failure in Williston Basin
A compressor failure on a third-party operated gathering system caused temporary downtime, affecting natural gas and NGL sales.
Company Guidance
During the Evolution Petroleum fiscal second quarter 2025 earnings call, management provided optimistic guidance for the remainder of the year, despite challenges faced in the first half due to significantly lower realized commodity prices, particularly for natural gas. The company reported a 10% year-over-year increase in total production to 6,935 BOE per day, driven by contributions from diversified, long-life, low-decline assets. Evolution Petroleum highlighted its strategic focus on maintaining strong cash flow and shareholder returns, evidenced by its 46th consecutive quarterly dividend payment of $0.12 per share. The company is actively evaluating multiple acquisition opportunities, aiming to enhance long-term growth and cash flow generation. In fiscal Q2 2025, Evolution Petroleum reported total revenues of $20.3 million, a 4% year-over-year decline due to a 12% decrease in commodity prices, though this was largely offset by increased production volumes. The company remains financially robust with $11.7 million in cash and $39.5 million in credit facility borrowings, ensuring $22.2 million in total liquidity to support ongoing strategic initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.