HOUSTON - Evolution Petroleum (NYSE:EPM) Corporation (NYSE American: EPM) announced its financial and operational results for the third quarter ended March 31, 2024. The company reported a 14% increase in production to 7,209 net barrels of oil equivalent per day (BOEPD), driven by its recent acquisitions and drilling results. Evolution also declared a quarterly cash dividend of $0.12 per common share for the fourth quarter of fiscal 2024.
The company's acquisitions in the SCOOP/STACK area, completed in mid-February, added approximately 1,550 BOEPD on a pro forma basis and contributed to the company's overall production growth. The Chaveroo oilfield also boosted production with three new wells contributing approximately 290 BOEPD on a pro forma basis.
Evolution achieved its highest ever company oil production of around 2,200 barrels of oil per day during the current quarter. The company's revenue for the quarter was $23.0 million, a 10% increase from the previous quarter, with net income at $0.3 million, or $0.01 per diluted share. Adjusted net income was reported at $1.0 million, or $0.03 per diluted share, and adjusted EBITDA increased by 24% from the previous quarter to $8.5 million.
Kelly Loyd, President and CEO, highlighted the company's strategic execution and its ability to integrate new assets quickly. Loyd emphasized Evolution's commitment to delivering long-term total returns to shareholders, which is reflected in the company's 43rd consecutive quarterly dividend payout.
The company's balance sheet showed $3.1 million in cash and cash equivalents, with $42.5 million of borrowings under its revolving credit facility. Evolution's anticipated capital expenditures for fiscal year 2024 are expected to be in the range of $10.0 million to $12.0 million.
Evolution Petroleum will host a conference call on Wednesday to review its third quarter fiscal 2024 financial and operating results. The company's portfolio includes non-operated interests in various onshore oil and natural gas properties in the United States.
InvestingPro Insights
As Evolution Petroleum Corporation (NYSE American: EPM) navigates through its fiscal year with a focus on production growth and shareholder returns, the company's financial health and future outlook remain of keen interest to investors. Here are some insights based on real-time data from InvestingPro and InvestingPro Tips that may provide a deeper understanding of the company's current position and what lies ahead.
InvestingPro data indicates that Evolution Petroleum's Price/Earnings (P/E) Ratio stands at 11.92, reflecting investor sentiment on its earnings capacity. A PEG Ratio of -0.19 suggests that the company's earnings growth might not be keeping pace with its P/E ratio. Additionally, the Price/Book (P/B) Ratio is at 2.23, offering a glimpse into how the market values the company relative to its book value.
While the company has reported an increase in production and revenue for the quarter, InvestingPro Tips reveal a mix of strengths and challenges. On the positive side, Evolution holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability. It also pays a significant dividend to shareholders, with a noteworthy dividend yield of 8.66%, and has maintained dividend payments for 12 consecutive years. These factors underscore Evolution's commitment to returning value to its shareholders.
However, analysts have revised their earnings downwards for the upcoming period, and anticipate a sales decline in the current year. Moreover, net income is expected to drop this year, which could be a point of concern for investors looking for consistent profitability. Despite these challenges, cash flows are reported to be sufficient to cover interest payments, and the company is profitable over the last twelve months, as of Q1 2023.
For investors seeking a more comprehensive analysis, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available that can help investors make informed decisions about Evolution Petroleum's future prospects. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to valuable investment tips and data that could shape your investment strategy.
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