AMEX:EPM

Stock Analysis Report

Evolution Petroleum

Executive Summary

Evolution Petroleum Corporation, an oil and gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States.

Snowflake

Fundamentals

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Evolution Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

AMEX:EPM

-1.0%

US Oil and Gas

0.2%

US Market


1 Year Return

-38.7%

AMEX:EPM

-22.7%

US Oil and Gas

-0.7%

US Market

EPM underperformed the Oil and Gas industry which returned -21.5% over the past year.

EPM underperformed the Market in United States of America which returned 0.3% over the past year.


Share holder returns

EPMIndustryMarket
7 Day0.7%-1.0%0.2%
30 Day-1.6%-8.5%-2.7%
90 Day-7.9%-9.5%1.6%
1 Year-35.3%-38.7%-19.9%-22.7%1.6%-0.7%
3 Year21.4%6.5%-7.1%-15.4%40.0%30.9%
5 Year-23.6%-37.9%-33.5%-42.5%53.8%36.8%

Price Volatility Vs. Market

How volatile is Evolution Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Evolution Petroleum undervalued based on future cash flows and its price relative to the stock market?

12.16x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Evolution Petroleum's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Evolution Petroleum's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Evolution Petroleum is overvalued based on earnings compared to the US Oil and Gas industry average.

Evolution Petroleum is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Evolution Petroleum earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Evolution Petroleum is overvalued based on assets compared to the US Oil and Gas industry average.


Next Steps

Future Growth

How is Evolution Petroleum expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Evolution Petroleum's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Evolution Petroleum's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Evolution Petroleum's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Evolution Petroleum's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Evolution Petroleum's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Evolution Petroleum will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Evolution Petroleum performed over the past 5 years?

31.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Evolution Petroleum has delivered over 20% year on year earnings growth in the past 5 years.

Evolution Petroleum's 1-year earnings growth is less than its 5-year average (0.3% vs 31%)

Evolution Petroleum's earnings growth has not exceeded the US Oil and Gas industry average in the past year (0.3% vs 22.6%).


Return on Equity

Evolution Petroleum has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Evolution Petroleum used its assets more efficiently than the US Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Evolution Petroleum has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Evolution Petroleum's financial position?


Financial Position Analysis

Evolution Petroleum is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Evolution Petroleum's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Evolution Petroleum has no debt.

Evolution Petroleum has not taken on any debt in the past 5 years.

Evolution Petroleum has no debt, it does not need to be covered by operating cash flow.

Evolution Petroleum has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Evolution Petroleum has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Evolution Petroleum's current dividend yield, its reliability and sustainability?

6.56%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Evolution Petroleum before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Evolution Petroleum's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).

Evolution Petroleum's dividend is above the markets top 25% of dividend payers in United States of America (3.83%).

Evolution Petroleum has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).

Evolution Petroleum has only been paying a dividend for 6 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Evolution Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Jason Brown (42yo)

0.1yrs

Tenure

0

Mr. Jason E. Brown has been President and Chief Executive Officer of Evolution Petroleum Corporation since July 10, 2019. He served as Vice President of Corporate Development of Halcón Resources Corporatio ...


Management Age and Tenure

2.4yrs

Average Tenure

53yo

Average Age

The tenure for the Evolution Petroleum management team is about average.


Board Age and Tenure

10.6yrs

Average Tenure

64yo

Average Age

The average tenure for the Evolution Petroleum board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$215,04924 Jul 19
JVL Advisors, LLC
EntityCompany
Shares29,875
Max PriceUS$7.20
BuyUS$46,30802 Jan 19
Marran J. Ogilvie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,800
Max PriceUS$6.81
SellUS$1,209,55326 Sep 18
JVL Advisors, LLC
EntityCompany
Shares109,310
Max PriceUS$11.24
SellUS$1,285,08820 Sep 18
JVL Advisors, LLC
EntityCompany
Shares119,306
Max PriceUS$10.89
SellUS$693,66513 Sep 18
JVL Advisors, LLC
EntityCompany
Shares68,914
Max PriceUS$10.12

Ownership Breakdown


Management Team

  • Robert Herlin (64yo)

    Co-Founder & Chairman

    • Tenure: 10.6yrs
    • Compensation: US$230.94k
  • David Joe (53yo)

    Senior VP

    • Tenure: 3.6yrs
    • Compensation: US$531.73k
  • Jason Brown (42yo)

    CEO & President

    • Tenure: 0.1yrs
  • Steve Hicks

    Senior Vice President of Engineering & Business Development

    • Tenure: 1.2yrs
  • Rod Schultz

    VP & Chief Accounting Officer

    • Tenure: 3.6yrs

Board Members

  • Bill Dozier (67yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$183.91k
  • Robert Herlin (64yo)

    Co-Founder & Chairman

    • Tenure: 10.6yrs
    • Compensation: US$230.94k
  • Marran J. Ogilvie (51yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$203.64k
  • Jed DiPaolo (66yo)

    Lead Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$158.39k
  • Kelly Loyd (45yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$138.41k

Company Information

Evolution Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Evolution Petroleum Corporation
  • Ticker: EPM
  • Exchange: AMEX
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$201.307m
  • Shares outstanding: 33.00m
  • Website: https://www.evolutionpetroleum.com

Number of Employees


Location

  • Evolution Petroleum Corporation
  • 1155 Dairy Ashford Road
  • Suite 425
  • Houston
  • Texas
  • 77079
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EPMAMEX (NYSE MKT LLC)YesCommon StockUSUSDMay 2004
EP7DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2004

Biography

Evolution Petroleum Corporation, an oil and gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company primarily holds intere ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 23:56
End of Day Share Price2019/08/20 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.