Evolution Petroleum Corporation, Inc.

Good day, ladies and gentlemen, and welcome to the Evolution Petroleum Third Quarter Fiscal Year 2022 Earnings Release Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for 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, and good afternoon, everyone, and welcome to Our earnings call for a third quarter of fiscal year 2022. I'm Ryan Stash, Chief Financial Officer. Joining me today is Jason Brown, President and Chief Executive Officer. After I cover the forward-looking statements, Jason will review key highlights along with our operational results. I'll then return to provide a more in-depth financial review. And finally, Jason will provide some closing comments before we open it up and take your questions. 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. Now, since detailed numbers are readily available to everyone in yesterday's earnings release, This call will primarily focus on our strategy as well as key operational and financial results and how these affect us moving forward. Please note that this conference call is being recorded, and if you wish to listen to a replay of today's call, it'll be available by going to the company's website or via recorded replay until August 9th, 2022. With that, I'll turn the call over to Jason.

Thank you, Ryan. Good afternoon, everyone, and thanks for joining us for today's call. As always, we appreciate your time and effort and giving consideration of our company as part or potential part of your investment portfolio. Our fiscal third quarter was a bit of a watershed moment for our team. We were able to close our third acquisition, enter into definitive agreements on our fourth acquisition, return the dividend to pre-pandemic levels of 10 cents a share per quarter, and upgrade our staff with a few key hires, all in a rising commodity price environment. I'm very proud of the work this small team has been able to do and execute as they prove themselves to be capable of sourcing, valuing, transacting, and managing our interest in oil and gas properties. This allows us to pay a consistent and substantive substantive dividends to our shareholders. We were extremely pleased with our overall results from the third quarter, which were highlighted by continued free cash flow generation and payment of an ongoing meaningful cash dividend to our shareholders. A key highlight for the third quarter was closing of the purchase of oil-weighted assets in the Wilson Basin in North Dakota. That was on January 14th. And on April 1st, we closed the acquisition of natural gas-weighted assets in the Jonah Field located in Sublette County, Wyoming. As such, we will see full period of operational and financial benefit from the two acquisitions in our fourth quarter, which should help drive a solid end to fiscal 2022. and places in a great position for continued success moving into fiscal 23 and beyond. During the third quarter, we produced 55.79 net BOE per day. That was about 13% higher than the 49.57 net BOE per day that we produced in the second quarter. Our third quarter also benefited from higher overall commodity pricing. The combination of increased production and pricing, as well as our continued focus on managing costs we can control, resulted in adjusted EBITDA of $12.3 million. This is about 20% higher than the second quarter. During the third quarter, we once again generated operating cash flow in excess of development capital expenditures, which supported the payment of our 34th consecutive quarterly cash dividend on March 31st. Additionally, due to the continued strength and growth of our business, we're pleased to declare a fourth quarter dividend of 10 cents per common share to be paid at the end of June. With the fourth quarter dividend, Evolution will have paid out approximately $86 million, or $2.61 per share, back to stockholders as cash dividends since the inception of our dividend program on December 31st of 2013. Now let's look at our operating results in a little more detail. Net production and dental high for the third quarter grew about 4% from the second quarter. to 112,494 BOE, or approximately 1,250 BOE per day. This increase is attributed to consistent runtime of the NGL plan during the third quarter, following the turbine maintenance and interrupted operations in the second quarter. Oil production in Delhi continues to be impacted by the nine-month suspension of CO2 purchases during the calendar of 2020 due to repairs of the purchase supply pipeline. As previously discussed, the result has been lower reservoir pressure that Denberry has worked diligently to restore to pre-2020 levels. Just as a reminder, Denberry operates the field in addition to owning and operating the CO2 purchase pipeline, and Evolution did not incur any pipeline repair costs. Denberry has been able to increase volumes of CO2 since December of 2021, and we have seen some results of that effort in production volumes. However, we still have a long ways to go in restoring reservoir pressure. We will continue to monitor and anticipate improvements over the next 18 to 24 months. Net production for the Barnett shale assets for the third quarter grew 8% to 307,318 BOE, or 3,415 BOE per day. This includes the decision to adjust the production mix in fiscal 22 to capture the most favorable commodity prices and maximize the overall field operating cash flow. We have been pleased with Diversified Energy's efforts since becoming an operator last October. Diversified is running one work-over rigmarole workover rig continuously throughout the calendar of 2022. We look forward to participating with them on projects that will provide attractive ROI for our shareholders. In Hamilton Dome, production was essentially flat at 37 312 net barrels. There were a few fewer days in the quarter, so the volumes are slightly less, but it's essentially the same. Our operating partner's merit remains focused on maintenance projects, including continued restoration of previously shut-in wells, and strategic adjustments to water injection location and volumes. As I mentioned earlier, we're pleased to close our acquisitions of certain Wilson Basin assets in mid-January. Net production for the partial third quarter was 43 510 BOEs, which was approximately 83% oil. As reported, this is 483 BOE per day. However, remember that that represents a 90-day period. We ended up the quarter at a daily rate around 565 BOE per day. is a little more representative of the 77 days in the quarter that we own the asset, as well as our anticipated levels of production going forward. Technical evaluations are underway to assess and high-grade potential drilling locations in the Williston assets. We will let the geomechanical and reservoir analysis inform our economics and subsequent capital investments and development drilling plans. We anticipate those beginning sometime in fiscal 2023. With that, I'll turn the call over to Ryan to discuss our financial highlights.