Evolution Petroleum Corporation, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Evolution Petroleum Third Quarter Fiscal 2021 Earnings Release Event. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Ryan Stash. Sir, the floor is yours.

Thank you. Good afternoon, everyone, and welcome to Evolution Petroleum's earnings call for our Third Quarter Fiscal Year 2021. Today, we'll discuss operating and financial results for the quarter. Joining us for the call are Jason Brown, President and Chief Executive Officer, and myself, Ryan Stash, Chief Financial Officer for Evolution Petroleum. If you wish to listen to a replay of today's call, it will be available shortly by going to the company's website or via recorded replay until August 11, 2021. Please note that any statements and information provided today are time-sensitive and may not be accurate at a later date. Our discussion today will contain forward-looking statements of management's beliefs and assumptions based on currently available information. These forward-looking statements are subject to risk and uncertainties that are listed and described in our filings with the SEC. Actual results may differ materially from those expected. Since detailed numbers are readily available to everyone in yesterday's news release, this call will primarily focus on key results our recent acquisition and how that affects evolution, and our typical update on operations and on plans for the remainder of fiscal 2021, including capital spending. I would now like to turn the call over to our President and Chief Executive Officer, Jason Brown. Jason Brown Thank you, Ryan.

Good morning, everyone, and thanks for joining us today on evolution's third quarter fiscal 2021 earnings call. Thank you for your continued support of and interest in our company. I'd like to start off the call by thanking our team for their hard work the past few months in closing our recent transaction in the Barnett Shale. We're extremely excited about this acquisition, what it does for our company and shareholders moving forward. The acquisition further diversifies our asset portfolio, which we feel reduces volatility risk. It also improves the sustainability and support of our dividend by significantly adding to our overall production and reserves. This acquisition represents a meaningful step in growing our business without requiring additional personnel or any material incremental G&A expenses. While its supply and demand imbalance remains and pricing is still volatile, we see many positives moving forward and believe that this is an important step in gaining both size and scale to create long-term value for our shareholders. Turning to Delhi and Hamilton Dome, we had an active quarter as we saw field work pick up due to uptick in commodity prices. Our operating partner, Denberry, has returned to conformance projects in Delhi after approximately 18 months of limited investment, redeploying capex spending after emergence from financial restructuring through bankruptcy last fall. Although total barrels decreased slightly during the quarter at Delhi, this is primarily due to the extreme weather that was experienced in the field in February. Purchased CO2 volumes were up and the operator recompleted several wells. It will take a while to recover the reservoir pressure and production loss from the loss following the CO2 new purchase pipeline failure last year, but we are starting to trend in the right direction and are very pleased with the attention and capital support that Delhi is getting in 2021. In Hamilton Dome, we saw an increase in production primarily from the reactivation of wells that were shut in last quarter. Differentials have been relatively stable and resulted in Hamdome returning to profitability and contributing to our overall cash flows. We continue to see positive earnings this quarter and have had revenues of $7.6 million, a 32% increase from $5.8 million in Q2. I'm also very pleased to announce our 30th consecutive quarter issuing a cash dividend. In addition, we subsequently announced that we will increase our dividend by 67% to 5 cents per share for the fourth quarter. Our shareholders know how important it is to us that we return value to them, and we are thrilled to significantly raise the dividend even after having raised it last quarter. We continue to concentrate on cash flow and total shareholder return. We have historically provided an attractive cash return to shareholders. This quarter marks $71 million in cash dividends, or $2.21 per share since the inception of the dividend program in December of 2013. We are focused on delivering shareholder value and continue to look for acquisition opportunities that will provide cash flow support of our dividend. With that, I'll now turn the call back over to Ryan to run through some of the financial highlights. Then I'll wrap up the call by speaking briefly about our strategy and outlook of the M&A landscape.