Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 01, 2015 | Dec. 31, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | EVOLUTION PETROLEUM CORP | ||
Entity Central Index Key | 1,006,655 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 183,168,484 | ||
Entity Common Stock, Shares Outstanding | 32,671,415 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $ 20,118,757 | $ 23,940,514 |
Receivables | 3,122,473 | 1,457,212 |
Deferred tax asset | 82,414 | 159,624 |
Prepaid expenses and other current assets | 369,404 | 747,453 |
Total current assets | 23,693,048 | 26,304,803 |
Property and equipment, net of depreciation, depletion, and amortization | ||
Oil and natural gas properties—full-cost method of accounting, of which none were excluded from amortization | 45,186,886 | 37,822,070 |
Other property and equipment, net | 276,756 | 424,827 |
Total property and equipment, net | 45,463,642 | 38,246,897 |
Other assets | 726,037 | 464,052 |
Total assets | 69,882,727 | 65,015,752 |
Current liabilities | ||
Accounts payable | 8,173,878 | 441,722 |
Accrued liabilities and other | 855,373 | 2,558,004 |
Derivative liabilities, net | 109,974 | 0 |
State and federal taxes payable | 190,032 | 0 |
Total current liabilities | 9,329,257 | 2,999,726 |
Long term liabilities | ||
Deferred income taxes | 11,242,551 | 9,897,272 |
Asset retirement obligations | 715,767 | 205,512 |
Deferred rent | 18,575 | 35,720 |
Total liabilities | $ 21,306,150 | $ 13,138,230 |
Commitments and contingencies (Note 17) | ||
Stockholders' equity | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized: 8.5% Series A Cumulative Preferred Stock, 1,000,000 shares designated, 317,319 shares issued and outstanding at June 30, 2015 and 2014, respectively, with a total liquidation preference of $7,932,975 ($25.00 per share) | $ 317 | $ 317 |
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 32,845,205 and 32,615,646 shares as of June 30, 2015 and 2014, respectively | 32,845 | 32,615 |
Additional paid-in capital | 36,847,289 | 34,632,377 |
Retained earnings | 11,696,126 | 17,212,213 |
Total stockholders' equity | 48,576,577 | 51,877,522 |
Total liabilities and stockholders' equity | $ 69,882,727 | $ 65,015,752 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued shares | 32,845,205 | 32,615,646 |
Common stock, outstanding shares | 32,845,205 | 32,615,646 |
Series A Cumulative Preferred Stock | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Cumulative Preferred Stock (as a percent) | 8.50% | 8.50% |
Preferred stock, shares issued | 317,319 | 317,319 |
Preferred stock, shares outstanding | 317,319 | 317,319 |
Preferred stock, total liquidation preference (in dollars) | $ 7,932,975 | $ 7,932,975 |
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Revenues | ||||
Total revenues | $ 27,841,265 | $ 17,673,508 | $ 21,349,920 | |
Operating costs | ||||
Depreciation, depletion and amortization | 3,615,737 | 1,228,685 | 1,300,207 | |
Accretion of discount on asset retirement obligations | 34,866 | 41,626 | 72,312 | |
General and administrative expenses | [1] | 6,256,783 | 8,388,291 | 7,495,309 |
Restructuring charges | [2] | (5,431) | 1,293,186 | 0 |
Total operating costs | 19,257,568 | 12,145,361 | 10,648,566 | |
Income from operations | 8,583,697 | 5,528,147 | 10,701,354 | |
Other | ||||
(Loss) on derivative instruments, net | (109,974) | 0 | 0 | |
Interest income | 35,991 | 30,256 | 22,580 | |
Interest (expense) | (73,636) | (69,092) | (65,745) | |
Income before income tax provision | 8,436,078 | 5,489,311 | 10,658,189 | |
Income tax provision | 3,444,221 | 1,891,998 | 4,029,761 | |
Net income attributable to the Company | 4,991,857 | 3,597,313 | 6,628,428 | |
Dividends on preferred stock | 674,302 | 674,302 | 674,302 | |
Net income attributable to common shareholders | $ 4,317,555 | $ 2,923,011 | $ 5,954,126 | |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.13 | $ 0.09 | $ 0.21 | |
Diluted (in dollars per share) | $ 0.13 | $ 0.09 | $ 0.19 | |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 32,817,456 | 30,895,832 | 28,205,467 | |
Diluted (in shares) | 32,924,018 | 32,564,067 | 31,975,131 | |
Delhi Field | ||||
Revenues | ||||
Total revenues | $ 27,573,641 | $ 16,908,666 | $ 19,219,036 | |
Operating costs | ||||
Production costs | 8,516,323 | 0 | 0 | |
Artificial Lift Technology | ||||
Revenues | ||||
Total revenues | 247,255 | 623,332 | 375,063 | |
Operating costs | ||||
Production costs | 743,802 | 609,221 | 390,238 | |
Other Property | ||||
Revenues | ||||
Total revenues | 20,369 | 141,510 | 1,755,821 | |
Operating costs | ||||
Production costs | $ 95,488 | $ 584,352 | $ 1,390,500 | |
[1] | General and administrative expenses for the years ended June 30, 2015, 2014 and 2013 included non-cash stock-based compensation expense of $943,653, $1,352,322, and $1,531,745, respectively. | |||
[2] | Restructuring charges for the year ended June 30, 2014 included non-cash stock-based compensation expense of $376,365. |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Parenthetical) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Non-cash stock-based compensation expense | $ 943,653 | $ 1,352,322 | $ 1,531,745 |
General and Administrative Expense | |||
Non-cash stock-based compensation expense | 943,653 | 1,352,322 | $ 1,531,745 |
Restructuring Charges | |||
Non-cash stock-based compensation expense | $ 376,365 | $ 376,365 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities | |||
Net income attributable to the Company | $ 4,991,857 | $ 3,597,313 | $ 6,628,428 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, depletion and amortization | 3,664,373 | 1,272,778 | 1,341,055 |
Stock-based compensation | 943,653 | 1,352,322 | 1,531,745 |
Stock-based compensation related to restructuring | 0 | 376,365 | 0 |
Accretion of discount on asset retirement obligations | 34,866 | 41,626 | 72,312 |
Settlement of asset retirement obligations | (223,564) | (315,952) | (90,531) |
Deferred income taxes | 1,422,489 | 1,344,812 | 2,512,978 |
Deferred rent | (17,145) | (17,145) | (17,146) |
Loss on derivative instruments, net | 109,974 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Receivables from oil and natural gas sales | (1,666,009) | 176,707 | (289,506) |
Receivables from income taxes and other | 748 | 281,822 | (189,813) |
Due from joint interest partners | 0 | 49,063 | 47,088 |
Prepaid expenses and other current assets | 378,049 | (480,899) | (33,121) |
Accounts payable and accrued expenses | 551,452 | 663,645 | 278,436 |
Income taxes payable | 190,032 | (233,548) | 141,581 |
Net cash provided by operating activities | 10,380,775 | 8,108,909 | 11,933,506 |
Cash flows from investing activities | |||
Proceeds from asset sales | 398,242 | 542,347 | 3,479,976 |
Development of oil and natural gas properties | (4,890,909) | (966,931) | (4,163,080) |
Acquisitions of oil and natural gas properties | 0 | (59,315) | (755,194) |
Capital expenditures for technology and other equipment | (313,059) | (312,890) | 0 |
Maturities of certificates of deposit | 0 | 250,000 | 0 |
Other assets | (236,559) | (202,017) | (32,160) |
Net cash used by investing activities | (5,042,285) | (748,806) | (1,470,458) |
Cash flows from financing activities | |||
Proceeds from the exercise of stock options | 141,600 | 3,252,801 | 70,719 |
Acquisitions of treasury stock | (333,841) | (1,655,251) | (137,818) |
Common stock dividends paid | (9,833,642) | (9,723,833) | 0 |
Preferred stock dividends paid | (674,302) | (674,302) | (674,302) |
Deferred loan costs | (94,075) | (63,535) | (16,211) |
Tax benefits related to stock-based compensation | 1,633,946 | 509,096 | 794,569 |
Other | 67 | 6,850 | 32 |
Net cash provided (used) by financing activities | (9,160,247) | (8,348,174) | 36,989 |
Net increase (decrease) in cash and cash equivalents | (3,821,757) | (988,071) | 10,500,037 |
Cash and cash equivalents, beginning of year | 23,940,514 | 24,928,585 | 14,428,548 |
Cash and cash equivalents, end of year | $ 20,118,757 | $ 23,940,514 | $ 24,928,585 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity - USD ($) | Total | Preferred | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | |
Balance at Jun. 30, 2012 | $ 46,622,788 | $ 317 | $ 28,670 | $ 29,416,914 | $ 18,058,909 | $ (882,022) | |
Balance (in shares) at Jun. 30, 2012 | 317,319 | 27,882,224 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted common stock | 32 | $ 211 | (179) | ||||
Issuance of restricted common stock (shares) | 211,197 | ||||||
Exercise of stock options | $ 70,719 | $ 529 | 70,190 | ||||
Exercise of stock options (shares) | 550,000 | 529,237 | |||||
Stock exchanged for payroll tax liabilities | $ (137,818) | (137,818) | |||||
Stock exchanged for payroll tax liabilities (in shares) | (13,689) | ||||||
Stock-based compensation | 1,531,745 | 1,531,745 | |||||
Tax benefits related to stock-based compensation | 794,569 | 794,569 | |||||
Net income | 6,628,428 | 6,628,428 | |||||
Preferred stock cash dividends | (674,302) | (674,302) | |||||
Balance at Jun. 30, 2013 | 54,836,161 | $ 317 | $ 29,410 | 31,813,239 | 24,013,035 | (1,019,840) | |
Balance (in shares) at Jun. 30, 2013 | 317,319 | 28,608,969 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted common stock | 0 | $ 40 | (40) | ||||
Issuance of restricted common stock (shares) | 39,732 | ||||||
Exercise of warrants | $ 905 | (905) | |||||
Exercise of warrants (in shares) | 905,391 | ||||||
Exercise of stock options | 3,871,407 | $ 3,299 | 3,868,108 | ||||
Exercise of stock options (shares) | 3,299,367 | ||||||
Forfeiture of restricted stock | $ (51) | 51 | |||||
Forfeiture of restricted stock (in shares) | (51,099) | ||||||
Acquisitions of treasury stock | $ (2,273,857) | (2,273,857) | |||||
Acquisitions of treasury stock (shares) | (186,714) | (186,714) | |||||
Retirements of treasury stock | $ 0 | $ (988) | (3,292,709) | 3,293,697 | |||
Stock-based compensation | [1] | 1,728,687 | 1,728,687 | ||||
Tax benefits related to stock-based compensation | 509,096 | 509,096 | |||||
Net income | 3,597,313 | 3,597,313 | |||||
Common stock cash dividends | (9,723,833) | (9,723,833) | |||||
Preferred stock cash dividends | (674,302) | (674,302) | |||||
Recovery of short swing profits | 6,850 | 6,850 | |||||
Balance at Jun. 30, 2014 | 51,877,522 | $ 317 | $ 32,615 | 34,632,377 | 17,212,213 | 0 | |
Balance (in shares) at Jun. 30, 2014 | 317,319 | 32,615,646 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of restricted common stock | 67 | $ 214 | (147) | ||||
Issuance of restricted common stock (shares) | 213,466 | ||||||
Exercise of stock options | $ 141,600 | $ 87 | 141,513 | ||||
Exercise of stock options (shares) | 87,000 | 87,000 | |||||
Acquisitions of treasury stock | $ (504,124) | (504,124) | |||||
Acquisitions of treasury stock (shares) | (70,907) | ||||||
Retirements of treasury stock | 0 | $ (71) | (504,053) | 504,124 | |||
Stock-based compensation | 943,653 | 943,653 | |||||
Tax benefits related to stock-based compensation | 1,633,946 | 1,633,946 | |||||
Net income | 4,991,857 | 4,991,857 | |||||
Common stock cash dividends | (9,833,642) | (9,833,642) | |||||
Preferred stock cash dividends | (674,302) | (674,302) | |||||
Balance at Jun. 30, 2015 | $ 48,576,577 | $ 317 | $ 32,845 | $ 36,847,289 | $ 11,696,126 | $ 0 | |
Balance (in shares) at Jun. 30, 2015 | 317,319 | 32,845,205 | |||||
[1] | Includes $376,365 of stock compensation reflected in restructuring charges. |
Consolidated Statement of Chan8
Consolidated Statement of Changes in Stockholders' Equity (Parenthetical) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Non-cash stock-based compensation expense | $ 943,653 | $ 1,352,322 | $ 1,531,745 |
Restructuring Charges | |||
Non-cash stock-based compensation expense | $ 376,365 | $ 376,365 |
Organization and Basis of Prepa
Organization and Basis of Preparation | 12 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Preparation | Organization and Basis of Preparation Nature of Operations. Evolution Petroleum Corporation ("EPM") and its subsidiaries (the "Company", "we", "our" or "us"), is an independent petroleum company headquartered in Houston, Texas and incorporated under the laws of the State of Nevada. We are engaged primarily in the development of oil and gas reserves within known oil and gas resources for our shareholders and customers utilizing conventional and proprietary technology. Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported income or stockholders' equity. Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents. Account Receivable and Allowance for Doubtful Accounts. Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We establish provisions for losses on accounts receivables if it is determined that collection of all or a part of an outstanding balance is not probable. Collectibility is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. As of June 30, 2015 and 2014 , no allowance for doubtful accounts was considered necessary. Oil and Natural Gas Properties. We use the full cost method of accounting for our investments in oil and natural gas properties. Under this method of accounting, all costs incurred in the acquisition, exploration and development of oil and natural gas properties, including unproductive wells, are capitalized. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Excluded costs represent investments in unproved and unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the project is evaluated and proved reserves are established or impairment is determined. Excluded costs are reviewed at least quarterly to determine if impairment has occurred. The amount of any evaluated or impaired oil and natural gas properties is transferred to capitalized costs being amortized. Limitation on Capitalized Costs. Under the full-cost method of accounting, we are required, at the end of each fiscal quarter, to perform a test to determine the limit on the book value of our oil and natural gas properties (the "Ceiling Test"). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the "Ceiling", this excess or impairment is charged to expense and reflected as additional accumulated depreciation, depletion and amortization or as a credit to oil and natural gas properties. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent , and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 -month period prior to the end of the reporting period (with consideration of price changes only to the extent provided by contractual arrangements including hedging arrangements pursuant to SAB 103), less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus (b) the cost of properties not being amortized (pursuant to Reg. S-X Rule 4-10 (c)(3)(ii)); plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. Our Ceiling Test did not result in an impairment of our oil and natural gas properties during the years ended June 30, 2015 , 2014 or 2013 . Other Property and Equipment. Other property and equipment includes leasehold improvements, data processing and telecommunications equipment, office furniture and equipment, and oilfield service equipment related to our artificial lift technology operations. These items are recorded at cost and depreciated over expected lives of the individual assets or group of assets, which range from three to seven years . The assets are depreciated using the straight-line method, except for oilfield service equipment related to our artificial lift technology operations, which is depreciated using a method which approximates the timing and amounts of expected revenues from the contract. Realization of the carrying value of other property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are determined to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset, including disposal value, if any, is less than the carrying amount of the asset. If any asset is determined to be impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Repairs and maintenance costs are expensed in the period incurred. Deferred Financing Costs. The Company capitalizes costs incurred in connection with obtaining financing. These costs are included in other assets on the Company's consolidated balance sheet and are amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. Asset Retirement Obligations. An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The initial recognition or subsequent revision of asset retirement cost is considered a level 3 fair value measurement. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and derivative instruments. Except for derivatives, the carrying amounts of these approximate fair value due to the highly liquid nature of these short-term instruments. The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. Stock-based Compensation. Estimated grant date fair value of stock-based compensation awards is determined to provide the basis for future compensation expense. Service-and performance-based Restricted Stock and Contingent Restricted Stock awards are valued using the market price of our common stock on the grant date. For market-based awards, which reflect future returns of our common stock, the fair value and expected vesting period are determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies comprising a benchmark index. We used the Black-Scholes option-pricing model to determine grant date fair value of our past Stock Option and Incentive Warrant awards. For service-based awards stock-based compensation equal to grant date fair value is recognized ratably over the requisite service period as the award vests. A performance-based award vests upon attaining the award's operational goal and requires that the recipient remain an employee of the Company upon vesting. Stock-based compensation expense equal to grant date fair value is recognized ratably over the expected vesting period when it is deemed probable, for accounting purposes, that the performance goal will be achieved. The expected vesting period may be deemed to be shorter than the remainder of the award’s term. For a market-based award stock-based compensation expense equal to grant date fair value is recognized ratably over the expected vesting period, so long as the award holder remains an employee of the Company. Total compensation expense is independent of vesting or expiration of the awards, except for termination of service. Revenue Recognition - Oil and Gas. We recognize oil and natural gas revenue from our interests in producing wells at the time that title passes to the purchaser. As a result, we accrue revenues related to production sold for which we have not received payment. Revenue Recognition - Artificial Lift Technology. Our artificial lift technology operations may generate revenues under several forms of operational or contractual arrangements. We have utilized the technology on wells that we develop and operate and on certain wells that we operate under farm-outs from other operators. In these cases, our revenues take the form of net sales of oil and gas production. We have also provided the technology to third parties under contractual arrangements that generate fees for the technology which are based on the net profits from oil and gas production. Under these contracts, we may be required to bear part or all of the incremental installation and capital costs for the technology. In other cases, we may be compensated for our technology through a fixed or variable fee per well, which does not require us to bear any net costs of installation or other capital costs. In the future, we may enter into licensing contracts which allow for the sale and installation of the technology by third parties to their customers or we may license the technology to larger organizations for use in specified geographic areas or on other broad terms. In all cases, we evaluate the substance of the contractual arrangement and recognize revenues over the life of the contract as the earnings process is determined to be complete. We likewise charge our costs, including both capital expenditures and operating expenses, to operating costs in a manner which either matches these costs to the timing of expected revenues, where appropriate, or charges these costs to the accounting period in which they were incurred where it is not appropriate to capitalize or defer them to match with revenues. Derivative Instruments. In early June 2015, the Company initiated derivative transactions using costless collars to reduce its exposure to oil price volatility for a substantial portion of its forecasted production for the months of July 2015 through December 2015. All derivative instruments are recorded on the consolidated balance sheet as either an asset or liability measured at fair value. The Company nets its derivative instrument fair value amounts executed with the same counterparty pursuant to a ISDA master agreement, which provides for net settlement over the term of the contract and in the event of default or termination of the contract. Although the derivative instruments provide an economic hedge of the Company’s exposure to commodity price volatility, because the Company elected not to meet the criteria to qualify its derivative instruments for hedge accounting treatment, net gains and losses as a result of changes in the fair value of derivative instruments are recognized as gain or (loss) on derivatives in the consolidated statements of operations in the period in which the changes occur. The net cash flows resulting from the payments to and receipts from the counterparty as a result of derivative settlements are classified as cash flows from investing activities. The Company does not intend to enter into derivative instruments for speculative or trading purposes. Depreciation, Depletion and Amortization. The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of DD&A, estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. Other property, consisting of leasehold improvements, office and computer equipment, vehicles and artificial lift equipment is depreciated as described above in Other Property and Equipment. Intangible Assets - Intellectual Property. The Company capitalizes the external costs, consisting primarily of legal costs, related to securing its patents and trademarks. The costs related to patents are amortized over the remaining patent life which is less than the expected useful life of each patent. Trademarks are perpetual and are not amortized. Income Taxes. We recognize deferred tax assets and liabilities based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that may result in taxable or deductible amounts in future years. The measurement of deferred tax assets may be reduced by a valuation allowance based upon management's assessment of available evidence if it is deemed more likely than not some or all of the deferred tax assets will not be realizable. We recognize a tax benefit from an uncertain position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position and will record the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority. The Company classifies any interest and penalties associated with income taxes as income tax expense. Earnings (loss) per share. Basic earnings (loss) per share ("EPS") is computed by dividing earnings or loss by the weighted-average number of common shares outstanding less any non-vested restricted common stock outstanding. The computation of diluted EPS is similar to the computation of basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. Our potential dilutive common shares are our outstanding stock options, warrants, and non-vested restricted common stock. The dilutive effect of our potential dilutive common shares is reflected in diluted EPS by application of the treasury stock method. Under the treasury stock method, exercise of stock options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued; the proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period; and the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. Potential dilutive common shares are excluded from the computation if their effect is anti-dilutive. Recent Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) to provide guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provides for either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements and disclosures. |
Receivables
Receivables | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Receivables | Receivables As of June 30, 2015 and June 30, 2014 our receivables consisted of the following: June 30, June 30, Receivables from oil and gas sales $ 3,122,155 $ 1,456,146 Other 318 1,066 Total receivables $ 3,122,473 $ 1,457,212 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets As of June 30, 2015 and June 30, 2014 our prepaid expenses and other current assets consisted of the following: June 30, June 30, Prepaid insurance $ 178,994 $ 169,288 Prepaid federal and state income taxes 22,542 419,999 Equipment inventory 81,538 85,888 Retainers and deposits 26,978 29,478 Other prepaid expenses 59,352 42,800 Prepaid expenses and other current assets $ 369,404 $ 747,453 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of June 30, 2015 and June 30, 2014 , our oil and natural gas properties and other property and equipment consisted of the following: June 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 57,718,653 $ 47,166,282 Less: Accumulated depreciation, depletion, and amortization (12,531,767 ) (9,344,212 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net 45,186,886 37,822,070 Other property and equipment Furniture, fixtures and office equipment, at cost 287,680 343,178 Artificial lift technology equipment, at cost 319,994 377,943 Less: Accumulated depreciation (330,918 ) (296,294 ) Other property and equipment, net $ 276,756 $ 424,827 As of June 30, 2015 and 2014, all oil and gas property costs incurred by the Company were being amortized. During the year ended June 30, 2014, we incurred $377,943 of costs related to the installation of our artificial lift technology, GARP ® on three wells of a five -well program for a third-party customer. Under the contract for these installations, we funded the majority of the incremental equipment and installation costs and receive 25% of the net profits from production, as defined, for as long as the technology remains in the wells. During the year ended ended June 30, 2015, we incurred $217,733 of additional costs related to the installation on the remaining two wells of this five -well program. Also during the year ended June 30, 2015, we recorded an impairment charge of $275,682 reflecting the unrecovered installation costs of artificial lift equipment, net of estimated residual salvage value, which were associated with three wells of this third-party customer. Artificial lift equipment cost has been reduced by this impairment charge which is included in depreciation, depletion and amortization expense on our consolidated statement of operations. On October 24, 2014, we sold all of our remaining mineral interest and assets in the Mississippi Lime project for proceeds of $389,165 and the buyer's assumption of all abandonment liabilities. On December 1, 2013, we sold our producing assets and undeveloped reserves in the Lopez Field in South Texas in return for proceeds of $402,500 and the buyer's assumption of all abandonment liabilities. The net proceeds from these sales, including the reduction of asset retirement obligations, were recognized as a reduction of the cost of oil and gas properties. |
Other Assets
Other Assets | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets AAs of June 30, 2015 and June 30, 2014 our other assets consisted of the following: June 30, June 30, Patent costs 538,276 305,592 Less: Accumulated amortization of patent costs (47,063 ) (27,050 ) Deferred loan costs 337,078 243,003 Less: Accumulated amortization of deferred loan costs (147,057 ) (98,421 ) Trademarks 44,803 40,928 Other assets, net $ 726,037 $ 464,052 |
Restructuring
Restructuring | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring On November 1, 2013, we undertook an initiative to refocus our business that resulted in an adjustment of our workforce with less emphasis on engineering and greater emphasis on sales and marketing. In exchange for severance and non-compete agreements with the terminated employees, we recorded a restructuring charge of $1,332,186 representing $376,365 of stock-based compensation from the accelerated vesting of equity awards and $955,821 of severance compensation and benefits to be paid during the twelve months ended December 31, 2014. All of the Company's obligations under these agreements had been fulfilled at December 31, 2014, extinguishing the liability. Our disposition of the accrued restructuring charges is as follows: Type of Cost Balance at December 31, 2013 Payments Adjustment to Cost Balance at June 30, Salary continuation liability $ 615,721 $ (615,721 ) $ — $ — Incentive compensation costs 185,525 (185,525 ) — — Other benefit costs and employer taxes 154,575 (110,144 ) (44,431 ) — Accrued restructuring charges $ 955,821 $ (911,390 ) $ (44,431 ) $ — |
Accrued Liabilities and Other
Accrued Liabilities and Other | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Liabilities and Other | Accrued Liabilities and Other As of June 30, 2015 and June 30, 2014 our other current liabilities consisted of the following: June 30, June 30, Accrued incentive and other compensation $ 578,910 $ 1,358,653 Accrued restructuring charges — 530,412 Officer retirement costs — 288,258 Asset retirement obligations due within one year 57,223 146,703 Accrued royalties, including suspended accounts 75,164 89,179 Accrued franchise taxes 94,885 87,575 Accrued - other 49,191 57,224 Accrued liabilities and other $ 855,373 $ 2,558,004 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligation for the years ended June 30, 2015 and 2014 : Years Ended 2015 2014 Asset retirement obligations—beginning of period $ 352,215 $ 615,551 Liabilities incurred (1) 564,019 — Liabilities settled (137,604 ) (323,665 ) Liabilities sold (52,526 ) (48,273 ) Accretion of discount 34,866 41,626 Revisions to previous estimates 12,020 66,976 Less: current asset retirement obligations (57,223 ) (146,703 ) Asset retirement obligations—end of period $ 715,767 $ 205,512 (1) Primarily attributable to the reversion of our working interest in the Delhi Field in November 2014. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock During the year ended June 30, 2014, we issued (i) 1,568,832 shares of our common stock upon the exercise of incentive stock options (ISOs), receiving cash proceeds totaling $3,252,801 , and (ii) 2,635,696 of our common shares upon cashless exercises of nonqualified stock options ("NQSOs") and incentive warrants, all being exercised on a net basis, except for 50,956 of previously acquired shares owned by option holders that were swapped in payment of the exercise price. The weighted average cost of these swapped shares was $12.14 . In fiscal 2014, we retired 801,889 shares of treasury stock acquired in previous fiscal years at a cost of $1,019,840 and 186,714 treasury shares acquired during fiscal 2014 from employees and directors at an average cost of $12.18 per share or $2,273,857 . The shares acquired in 2014 were received in satisfaction of payroll tax liabilities from the exercise of stock options and vesting of restricted stock (requiring cash outlays by us) and 50,956 shares were received from option holders in cashless stock option exercises, using stock previously owned by the option holder. Commencing in December 2013, the Board of Directors initiated a quarterly cash dividend on our common stock at a quarterly rate of $0.10 per share and subsequently adjusted this rate to $0.05 per share during the quarter ended March 31, 2015. We paid cash dividends of $9,833,642 and $9,723,833 from retained earnings to our common shareholders during the years ended June 30, 2015 , and 2014 , respectively. On May 12, 2015, the Board of Directors approved a share repurchase program covering up to $5,000,000 of the Company's common stock. Under the program's terms, shares may be repurchased only on the open market and in accordance with the requirements of the Securities and Exchange Commission. The timing and amount of repurchases will depend upon several factors, including financial resources and market and business conditions. There is no fixed termination date for this repurchase program, and the repurchase program may be suspended or discontinued at any time. Payment for shares repurchased under the program will be funded using the Company's working capital. The Company intends to retire the repurchased shares. As of June 30, 2015 , the Company had purchases of 63,372 shares of stock which had a weighted average price per share of $6.87 . During fiscal 2015, the Company also acquired 7,535 shares of its common stock at a weighted average price per share of $9.16 in exchange for payroll tax liabilities related to stock-based compensation. Series A Cumulative Perpetual Preferred Stock During the year ended June 30, 2012, we sold 317,319 shares of our 8.5% Series A Cumulative (perpetual) Preferred Stock at a weighted average sales price of $23.80 per share, with a liquidation preference of $25.00 per share. All shares were underwritten or sold through McNicoll Lewis & Vlak LLC (MLV), 220,000 of which were sold in an underwritten public offering and 97,319 shares of which were sold under an at-the-market sales agreement ("ATM"), providing aggregate net proceeds of $6,930,535 after market discounts, underwriting fees, legal and other expenses of the offerings. The Series A Cumulative Preferred Stock cannot be converted into our common stock and there are no sinking fund or redemption rights available to holders thereof. Optional redemption can be made by us at any time after July 1, 2014 for the stated liquidation value of $25.00 per share plus accrued dividends. With respect to dividend rights and rights upon our liquidation, winding-up or dissolution, the Series A Preferred Stock ranks senior to our common shareholders, but subordinate to any of our existing and future debt. Dividends on the Series A Cumulative Preferred Stock accrue and accumulate at a fixed rate of 8.5% per annum on the $25.00 per share liquidation preference, payable monthly at $0.177083 per share, as, if and when declared by our Board of Directors. We paid dividends of $674,302 , $674,302 and $674,302 to holders of our Series A Preferred Stock during the years ended June 30, 2015 , 2014 and 2013 , respectively. Expected Tax Treatment of Dividends to Recipients Based on our current projections for the fiscal year ending June 30, 2015, we expect preferred dividends will be treated as qualified dividend income to recipients and that a portion of our cash dividends on common stock will be treated as a return of capital and the remainder as qualified dividend income. We will make a preliminary determination regarding the tax treatment of dividends for the current fiscal year when we report this information to recipients. As a result of the difference between our June 30 fiscal year and the calendar year basis of our dividend reporting requirements, it is possible that we will be required to amend these reports when our final taxable income for the fiscal year is determined, as this will potentially affect the tax status of our dividends to recipients. For the fiscal year ended June 30, 2014, cash dividends on preferred and common stock were treated for tax purposes as a return of capital to our stockholders. |
Stock-Based Incentive Plan
Stock-Based Incentive Plan | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Incentive Plan | Stock-Based Incentive Plan We have granted option awards to purchase common stock (the "Stock Options"), restricted common stock awards ("Restricted Stock"), contingent restricted common stock awards ("Contingent Restricted Stock") and/or unrestricted fully vested common stock, to employees, directors, and consultants of the Company under the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "Plan"). The Plan authorized the issuance of 6,500,000 shares of common stock. As of June 30, 2015 , 542,529 shares remain available for grant. Stock Options and Incentive Warrants No Stock Options have been granted since August 2008 and all compensation costs attributable to Stock Options have been recognized in prior periods. No Incentive Warrants have been granted since February 2006, all compensation costs attributable to these awards have been recognized in prior periods and all remaining outstanding awards were exercised in November 2013. The following summary presents information regarding outstanding Stock Options as of June 30, 2015 , and the changes during the fiscal year: Number of Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value(1) Weighted Average Remaining Contractual Term (in years) Stock Options outstanding at June 30, 2014 178,061 $ 2.08 Granted — — Exercised (87,000 ) $ 1.63 Canceled or forfeited — — Expired — — Stock Options outstanding at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 Vested or expected to vest at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 Exercisable at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 (1) Based upon the difference between the market price of our common stock on the last trading date of the period ( $6.59 as of June 30, 2015 ) and the Stock Option exercise price of in-the-money Stock Option. For the year ended June 30, 2015 , there were 87,000 Stock Options exercised with an aggregate intrinsic value of $501,810 . For the year ended June 30, 2014, there were 4,644,759 Stock Options and Incentive Warrants exercised, with an aggregate intrinsic value of $47,504,114 . For the year ended June 30, 2013, there were 550,000 Stock Options exercised with an aggregate intrinsic value of $5,233,480 . During the years ended June 30, 2015 , 2014 , and 2013 , there were 0 , 0 , and 18,922 Stock Options that vested with a total grant date fair value of $0 , $0 , and $46,359 , respectively. Restricted Stock and Contingent Restricted Stock Prior to fiscal 2015 all Restricted Stock grants contained a four-year vesting period period based solely on service. During fiscal 2015, the Company awarded grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the Restricted Stock grants were issued on the date of grant, whereas the Contingent Restricted Stock will be issued only upon the attainment of specified performance-based or market-based vesting provisions. Market-based awards entitle employees to vest in a fixed number of shares when the three-year trailing total return on the Company’s common stock exceeds the corresponding total returns of various quartiles of companies comprising the SIG Exploration and Production Index (NASDAQ EPX) during defined measurement periods. The fair value and expected vesting period of these awards were determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. Fair values for these market-based awards ranged from $4.26 to $8.40 with expected vesting periods of 3.30 to 2.55 years, based on the various quartiles of comparative market performance. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the award holder remains an employee of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service. The following table sets forth the Restricted Stock transactions for the year ended June 30, 2015 : Number of Restricted Shares Weighted Average Grant-Date Fair Value Unamortized Compensation Expense at June 30, 2015 (1) Weighted Average Remaining Amortization Period (Years) Unvested at June 30, 2014 140,067 $ 8.70 $ — Service-based awards granted 100,910 9.53 Performance-based awards granted 76,642 10.05 Market-based awards granted 35,914 7.59 Vested (91,306 ) 8.40 Forfeited — — Unvested at June 30, 2015 262,227 $ 9.37 $ 1,306,990 2.3 (1) Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. During the years ended June 30, 2015 , 2014 , and 2013 , there were 91,306 , 277,198 , and 277,198 shares of Restricted Stock that vested with a total grant date fair value of $766,970 , $1,796,243 , and $1,427,570 , respectively. The following table summarizes Contingent Restricted Stock activity: Number of Weighted Unamortized Compensation Expense at June 30, 2015 (1) Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2014 — — Performance-based awards granted 38,325 $ 10.05 $ — Market-based awards granted 17,961 4.26 — Unvested at June 30, 2015 56,286 $ 8.20 $ 57,004 2.5 (1) Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. Stock-based Compensation Expense For the years ended June 30, 2015 , 2014 , and 2013 , we recognized stock-based compensation expense related to Restricted Stock, Contingent Restricted Stock grants, and Stock Option grants of $962,813 , $1,728,687 , and $1,531,745 , respectively. For the year ended June 30, 2015 , this expense includes $19,160 of cash dividends paid on unvested performance-based awards for which vesting is not considered probable at this time for accounting purposes. See Note 7 – Restructuring, for stock compensation included in Restructuring Charges recorded at December 31, 2014. |
Supplemental Disclosure of Cash
Supplemental Disclosure of Cash Flow Information | 12 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Disclosure of Cash Flow Information | Supplemental Disclosure of Cash Flow Information Our supplemental disclosures of cash flow information for the years ended June 30, 2015 , 2014 , and 2013 are as follows: June 30, 2015 2014 2013 Income taxes paid $ 220,000 $ 755,941 $ 699,874 Income tax refunds 331,733 — — Non-cash transactions: Change in accounts payable used to acquire property and equipment 5,422,566 (183,766 ) (1,535,322 ) Oil and natural gas property costs attributable to the recognition of asset retirement obligations 576,039 66,976 65,575 Accrued purchases of treasury stock 170,283 — — Previously acquired Company shares swapped by holders to pay stock option exercise price $ — $ 618,606 $ — |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the years ended June 30, 2015 , 2014 and 2013 . We believe that we have appropriate support for the income tax positions taken and to be taken on the Company's tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company's tax returns are open to audit under the statute of limitations for the years ending June 30, 2012 through June 30, 2014 for federal tax purposes and for the years ended June 30, 2011 through June 30, 2014 for state tax purposes. The components of our income tax provision (benefit) are as follows: June 30, 2015 June 30, 2014 June 30, 2013 Current: Federal $ 1,413,296 $ 386,018 $ 857,480 State 608,436 161,168 659,303 Total current income tax provision 2,021,732 547,186 1,516,783 Deferred: Federal 1,282,059 1,319,727 2,546,495 State 140,430 25,085 (33,517 ) Total deferred income tax provision 1,422,489 1,344,812 2,512,978 $ 3,444,221 $ 1,891,998 $ 4,029,761 The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 34% , to the income tax provision in our financial statements. The effective tax rate for all years is in excess of the statutory rate as a result of state income taxes, primarily in the state of Louisiana, with smaller adjustments related to stock-based compensation and other permanent differences. June 30, 2015 June 30, 2014 June 30, 2013 Income tax provision (benefit) computed at the statutory federal rate: $ 2,868,267 $ 1,866,366 $ 3,623,784 Reconciling items: State income taxes, net of federal tax benefit 595,708 189,081 413,019 Permanent differences related to stock-based compensation — (155,817 ) 8,933 Expiring NOLs related to 2004 reverse merger — — 600,964 Deferred tax asset valuation adjustment — — (600,964 ) Other permanent differences (19,754 ) (7,632 ) (15,975 ) Income tax provision $ 3,444,221 $ 1,891,998 $ 4,029,761 Deferred income taxes primarily represent the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred tax assets and liabilities are classified as either current or noncurrent on the balance sheet based on the classification of the related asset or liability for financial reporting purposes. Deferred tax assets and liabilities not related to specific assets or liabilities on the financial statements are classified according the expected reversal date of the temporary difference or the expected utilization date for tax attribute carryforwards. The change in the NOLs is primarily due to expiring NOLs related to the 2004 reverse merger as well as utilization of NOLs to offset potential current year taxable income. The components of our deferred taxes are detailed in the table below: June 30, 2015 June 30, 2014 June 30, 2013 Deferred tax assets: Non-qualified stock-based compensation $ 173,647 $ 134,469 $ 774,673 Net operating loss carry-forwards 400,288 427,249 427,249 AMT credit carry-forward* 701,254 701,254 502,466 Other 91,113 165,775 28,170 Gross deferred tax assets 1,366,302 1,428,747 1,732,558 Valuation allowance (292,446 ) (292,446 ) (292,446 ) Total deferred tax assets 1,073,856 1,136,301 1,440,112 Deferred tax liability: Oil and natural gas properties (12,233,993 ) (10,873,949 ) (9,832,948 ) Total deferred tax liability (12,233,993 ) (10,873,949 ) (9,832,948 ) Net deferred tax liability $ (11,160,137 ) $ (9,737,648 ) $ (8,392,836 ) _______________________________________________________________________________ * Total AMT credit carry-forward is $901,545 . Our net deferred tax liability does not include $200,291 of AMT credit carry-forward associated with the tax benefit related to stock-based compensation. As of June 30, 2015 , we have a federal tax loss carryforward of approximately $25.8 million , created primarily from tax deductions in excess of book deductions related to the exercise of non-qualified stock options and incentive warrants in fiscal 2014, and $1.2 million of remaining tax loss carryforwards that we acquired through the reverse merger in May 2004. The majority of the tax loss carryforwards from the reverse merger have expired without being utilized. We will be able to utilize a maximum of $0.3 million of these carryforwards in equal annual amounts of $39,648 through 2023 and the balance is not able to be utilized based on the provisions of IRC Section 382. We have recorded a valuation allowance for the portion of our net operating loss that is limited by IRC Section 382. The remaining fiscal 2014 tax loss carry-forward of $24.6 million and future tax benefits resulting from the fiscal 2014 exercises will not affect our future tax provision for financial reporting purposes, nor are we able to recognize a deferred tax asset for these future benefits. When we receive these tax benefits as a reduction of future cash taxes that would otherwise be payable, we will recognize that benefit as an increase in additional paid in capital. Based on the carryback of tax losses resulting from the exercise of stock options and incentive warrants in fiscal 2014, we filed a request for refund of cash taxes paid in Louisiana for the previous three fiscal years totaling approximately $1.5 million . This refund will not affect our tax provision for financial reporting purposes. When and if received, we will recognize the benefit as an increase in additional paid-in capital. We cannot be certain of the timing or amount of the refund if any. As a result, this potential refund has not been reflected in the accompanying financial statements. This carryback, if realized, will utilize approximately $19.0 million of an estimated $24.2 million net loss for state tax purposes with another $3.8 million expected to be used to offset taxable income in 2015, leaving $1.5 million of tax loss carryforwards remaining for Louisiana tax purposes. In addition, as of June 30, 2015, the Company has an estimated carryforward of percentage depletion in excess of basis of approximately $11.6 million . These future deductions are limited to 65% of taxable income in any period. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On June 30, 2011, we entered into a Technology Assignment Agreement with the Company’s Senior Vice President of Operations to acquire exclusive, perpetual, non-cancelable rights to the patented GARP ® technology he developed while employed by the Company. Under the agreement, he is paid a fee when the technology is employed. For the years ended June 30, 2015, 2014 and 2013, we made payments of $26,579 , $10,113 and $10,113 , respectively, under the agreement. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted net income per share: June 30, 2015 2014 2013 Numerator Net income attributable to common shareholders $ 4,317,555 $ 2,923,011 $ 5,954,126 Denominator Weighted average number of common shares—Basic 32,817,456 30,895,832 28,205,467 Effect of dilutive securities: Contingent restricted stock grants 4,422 — — Common stock warrants issued in connection with equity and financing transactions — — 878 Stock Options and Incentive Warrants 102,140 1,668,235 3,768,786 Total weighted average dilutive securities 106,562 1,668,235 3,769,664 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 32,924,018 32,564,067 31,975,131 Net income per common share—Basic $ 0.13 $ 0.09 $ 0.21 Net income per common share—Diluted $ 0.13 $ 0.09 $ 0.19 The following are reflected in the calculation of diluted earnings per share as of June 30, 2015 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 17,961 Stock Options 2.50 91,061 Total $ 2.09 109,022 The following are reflected in the calculation of diluted earnings per share as of June 30, 2014 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Stock Options $ 2.08 178,061 The following are reflected in the calculation of diluted earnings per share as of June 30, 2013 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Common stock warrants issued in connection with equity and financing transactions $ 2.50 1,165 Stock Options and Incentive Warrants 1.99 4,822,820 Total $ 1.99 4,823,985 |
Unsecured Revolving Credit Agre
Unsecured Revolving Credit Agreement | 12 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Unsecured Revolving Credit Agreement | Unsecured Revolving Credit Agreement On February 29, 2012, Evolution Petroleum Corporation entered into a Credit Agreement (the "Credit Agreement") with Texas Capital Bank, N.A. (the "Lender"). The Credit Agreement provides the Company with a revolving credit facility (the "facility") in an amount up to $50,000,000 with availability governed by an Initial Borrowing Base of $5,000,000 . A portion of the facility not in excess of $1,000,000 is available for the issuance of letters of credit. The facility is unsecured and has a term of four years , expiring on February 29, 2016. The Company's subsidiaries guarantee the Company's obligations under the facility. The proceeds of any loans under the facility are to be used by the Company for the acquisition and development of oil and gas properties, as defined in the facility, the issuance of letters of credit, and for working capital and general corporate purposes. Semi-annually, the borrowing base and a monthly reduction amount are re-determined from reserve reports. Requests by the Company to increase the $5,000,000 initial amount are subject to the Lender's credit approval process, and are also limited to 25% of the value our oil and gas properties, as defined. At the Company's option, borrowings under the facility bear interest at a rate of either (i) an Adjusted LIBOR rate (LIBOR rate divided by the remainder of 1 less the Lender's Regulation D reserve requirement), or (ii) an adjusted Base Rate equal to the greater of the Lender's prime rate or the sum of 0.50% plus the Federal Fund Rate . A maximum of three LIBOR based loans can be outstanding at any time. Allowed loan interest periods are one , two , three and six months . LIBOR interest is payable at the end of the interest period except for six-month loans for which accrued interest is payable at three months and at end of term. Base Rate interest is payable monthly. Letters of credit bear fees of 3.5% per annum rate applied to the principal amount and are due when transacted. The maximum term of letters of credit is one year . A commitment fee of 0.50% per annum accrues on unutilized availability and is payable quarterly. The Company is responsible for certain administrative expenses of the Lender over the life of the Credit Agreement as well as $50,000 in loan costs incurred upon closing. The Credit Agreement also contains financial covenants including a requirement that the Company maintain a current ratio of not less than 1.5 to 1 ; a ratio of total funded Indebtedness to EBITDA of not more than 2.5 to 1 , and a ratio of EBITDA to interest expense of not less than 3 to 1 . The agreement specifies certain customary covenants, including restrictions on the Company and its subsidiaries from pledging their assets, incurring defined Indebtedness outside of the facility other than permitted indebtedness, and it restricts certain asset sales. Payments of dividends for the Series A Preferred are only restricted by the EBITDA to interest coverage ratio, wherein such dividends are a 1 X deduction from EBITDA (as opposed to a 3 : 1 requirement if dividends were treated as interest expense). The Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Lender may declare any amounts outstanding under the Credit Agreement to be immediately due and payable. As of June 30, 2015 and 2014 , the Company had no borrowings and no outstanding letters of credit issued under the facility, resulting in an available borrowing base capacity of $5,000,000 , and we are in compliance with all the covenants of the Credit Agreement. During early 2014 the Lender waived the provisions of the Credit Agreement pertaining to the past payments of cash dividends on our common stock, and the Credit Agreement was amended to permit the payment of cash dividends on common stock in the future if no borrowings are outstanding at the time of such payment. In connection with this agreement the Company incurred $179,468 of debt issuance costs, which have been capitalized in Other Assets and are being amortized on a straight-line basis over the term of the agreement. The unamortized balance in debt issuance costs related to the Credit Agreement was $32,411 as of June 30, 2015. The Company is in discussions with the Lender and other financial institutions to replace the unsecured Credit Agreement with an expanded secured facility. As of June 30, 2015 , the Company had incurred approximately $157,610 in legal and title costs related to this proposed new agreement, which are also capitalized in Other Assets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which we operate. At a minimum we disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We accrue a loss if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss and we do not accrue future legal costs related to that loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable. We expense legal defense costs as they are incurred. The Company and its wholly-owned subsidiary NGS Sub Corp. are defendants in a lawsuit brought by John C. McCarthy et al in the fifth District Court of Richland Parish, Louisiana in July 2011. The plaintiffs alleged, among other claims, that we fraudulently and wrongfully purchased plaintiffs’ income royalty rights in the Delhi Field Unit in the Holt-Bryant Reservoir in May 2006. The plaintiffs are seeking cancellation of the transaction and monetary damages. On March 29, 2012, the Fifth District Court dismissed the case against the Company and NGS Sub Corp. The Court found that plaintiffs had “no cause of action” under Louisiana law, assuming that the Plaintiffs’ claims were valid on their face. Plaintiffs filed an appeal and the Louisiana Second Circuit Court of Appeal affirmed the dismissal, but allowed the plaintiffs to amend their petition to state a different possible cause of action. The plaintiffs amended their claim and re-filed with the district court. We subsequently filed a second motion pleading “no cause of action,” with which the district court again agreed and dismissed the plaintiffs’ case on September 23, 2013. Plaintiffs again filed an appeal in November 2013. In October 2014, the appellate court reversed the district court. We subsequently filed for a rehearing which was denied. We now have filed an Application for Writ of Review in the Louisiana Supreme Court in which we have asked the Louisiana Supreme Court to reverse the appellate court and reinstate the trial court judgment dismissing plaintiffs’ case. Amicus Curiae Briefs have been filed in support of the writ application by the Louisiana Oil & Gas Association, the Louisiana Mid-Continent Oil and Gas Association and the American Association of Professional Landmen. Our brief and supporting Amicus Curiae Briefs have been filed. Oral arguments were heard on September 1, 2015. Counsel has advised us that, based on developments in the case to date, the risk of a material loss in this matter is remote. As previously reported, on August 23, 2012, we and our wholly-owned subsidiary, NGS Sub Corp., and Robert S. Herlin, our Chief Executive Officer, were served with a lawsuit filed in federal court by James H. and Kristy S. Jones (the “Jones lawsuit”) in the Western District Court of the Monroe Division, Louisiana. The plaintiffs alleged primarily that we (defendants) wrongfully purchased the plaintiffs’ 4.8119% overriding royalty interest in the Delhi Unit in January 2006 by failing to divulge the existence of an alleged previous agreement to develop the Delhi Field for enhanced oil recovery. The plaintiffs were seeking rescission of the assignment of the overriding royalty interest and monetary damages. We believed that the claims were without merit and not timely, and we vigorously defended against the claims. We filed a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b) (6) on April 1, 2013. On September 17, 2013, the federal court in the Western District Court of the Monroe Division, Louisiana, dismissed a portion of the claims and allowed the plaintiffs to pursue the remaining portion of the claims. Our motion to dismiss was for lack of cause of action, assuming that the plaintiffs' claims were valid on their face. On September 25, 2013, plaintiff Jones filed a motion to alter or amend the September 17, 2013 judgment. On December 27, 2013, the court denied said plaintiffs’ motion, and on January 21, 2014, we filed a motion to reconsider the nondismissal of the remaining claims, which was denied. The Court entered a Scheduling Order setting trial of the case for the week of June 15, 2015. Subsequent to depositions of the plaintiffs, in late March 2015, in the United States District Court for the Western District of Louisiana Monroe Division, a joint motion to dismiss with prejudice was entered into by all parties in the lawsuit and the judge signed the judgment of dismissal with prejudice. Further, no compensation or other consideration was paid or provided to the plaintiffs by any of the defendants other than an agreement by us not to sue for malicious prosecution or defamation, or seek sanctions, and the plaintiffs agreed to relinquish any and all claims to the 4.8119% overriding royalty interest in the Delhi Unit. On December 13, 2013, we and our wholly-owned subsidiaries, Tertiaire Resources Company and NGS Sub. Corp., filed a lawsuit in the 133 rd Judicial District Court of Harris County, Texas, against Denbury Onshore, LLC (“Denbury”) alleging breaches of certain 2006 agreements between the parties regarding the Delhi Field in Richland Parish, Louisiana. The specific allegations include improperly charging the payout account for capital expenditures and costs of capital, failure to adhere to preferential rights to participate in acquisitions within the defined area of mutual interest, breach of the promises to assume environmental liabilities and fully indemnify us from such costs, and other breaches. We also alleged that Denbury’s gross negligence caused certain environmental damage to the unit. Specifically, we allege that Denbury failed to properly conduct CO 2 injection activities. We are seeking declaration of the validity of the 2006 agreements and recovery of damages and attorneys’ fees. Denbury subsequently filed counterclaims, including the assertion that we owe Denbury additional revenue interests pursuant to the 2006 agreements and that our transfers of the reversionary interests from our wholly owned subsidiary to our parent corporation and subsequently to another wholly-owned subsidiary were not timely noticed to Denbury. We subsequently amended and expanded our claims. The Company disagrees with, and is vigorously defending against, Denbury's counterclaims. This matter is scheduled for trial in April of 2016. On January 26, 2015, Denbury notified us it had withheld and suspended 2.891545% of our overriding royalty revenue interest in the field for the months of November and December 2014. This unilateral suspension of a portion of our overriding royalties by the operator was made without consultation with the Company and, we believe, was without legal basis. On February 26, 2015, we and Denbury executed an agreement under which Denbury agreed to reverse the previously disclosed suspension of our overriding royalty interest revenues and release to Evolution amounts previously suspended totaling approximately $712,000 . Denbury further agreed not to suspend any future revenues attributable to any of our revenue interests, except under limited circumstances, such as non-payment of joint interest billings. This agreement did not settle any of the outstanding litigation matters with Denbury, including their counterclaim related to the net revenue interest conveyed in the 2006 Purchase and Sale Agreement. Lease Commitments. We have a non-cancelable operating lease for office space that expires on July 31, 2016. Future minimum lease commitments as of June 30, 2015 under this operating lease are as follows: For the fiscal year ended June 30, 2016 $ 159,011 2017 13,251 Total $ 172,262 Rent expense for the years ended June 30, 2015 , 2014 , and 2013 was $175,103 , $174,229 , and $147,233 , respectively. Employment Contracts. We have entered into employment agreements with two of the Company's senior executives. The employment contracts provide for severance payments in the event of termination by the Company for any reason other than cause or permanent disability, or in the event of a constructive termination, as defined. The agreements provide for the payment of base pay and certain medical and disability benefits for periods ranging form 6 months to 1 year after termination. The total contingent obligations under the employment contracts as of June 30, 2015 was approximately $473,000 . |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Major Customers. We market all of our oil and natural gas production from the properties we operate. We do not currently market our share of crude oil production from Delhi. Although we have the right to take our working interest production at Delhi in-kind, we are currently accepting terms under the Delhi operator's agreement with Plains Marketing L.P. for the delivery and pricing of our oil there. The majority of our operated gas, oil and condensate production is sold to a variety of purchasers under short-term (less than 12 months) contracts at market-based prices. The following table identifies customers from whom we derived 10 percent or more our net oil and natural gas revenues during the years ended June 30, 2015 , 2014 , and 2013 . The loss of our purchaser at the Delhi field or disruption to pipeline transportation from the field could adversely affect our net realized pricing and potentially our near-term production levels. The loss of any of our other purchasers would not be expected to have a material adverse effect on our operations. Year Ended June 30, Customer 2015 2014 2013 Plains Marketing L.P. (includes Delhi production) 99 % 96 % 90 % Enterprise Crude Oil LLC — % 2 % 4 % Flint Hills — % 1 % 2 % ETC Texas Pipeline, LTD. — % 1 % — % All others 1 % — % 4 % Total 100 % 100 % 100 % Accounts Receivable. Substantially all of our accounts receivable result from uncollateralized oil and natural gas sales to third parties in the oil and natural gas industry. This concentration of customers may impact our overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. Cash and Cash Equivalents and Certificates of Deposit. We are subject to concentrations of credit risk with respect to our cash and cash equivalents, which we attempt to minimize by maintaining our cash and cash equivalents in high quality money market funds. At times, cash balances may exceed limits federally insured by the Federal Deposit Insurance Corporation ("FDIC"). Our certificates of deposit are below or at the maximum federally insured limit set by the FDIC. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plan | Retirement Plan Effective February 1, 2007, we implemented a 401(k) Savings Plan which covers all full-time employees. We currently match 100% of employees' contributions to the plan, to a maximum of the first 6% of each participant's compensation, with Company contributions fully vested when made. Our matching contributions to the Savings Plan totaled $85,676 , $116,873 , and $89,810 for the years ended June 30, 2015 , 2014 , and 2013 , respectively. |
Derivatives
Derivatives | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives In early June 2015, the Company began using derivative instruments to reduce its exposure to oil price volatility for a substantial portion of its forecasted production for the months of July 2015 through December 2015 to achieve a more predictable level of cash flows to support the Company’s capital expenditure program. The costless collars the Company uses to manage risk are designed to establish floor and ceiling prices on anticipated future oil production. While the use of these derivative instruments limits the downside risk of adverse price movements, they may also limit future revenues from favorable price movements. The Company does not enter into derivative instruments for speculative or trading purposes. These derivative instruments can result in both fair value asset and liability positions held with that counterparty, which positions are all offset to a single fair value asset or liability at the end of each reporting period. The Company nets its fair value amounts of derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The fair value of derivative instruments where the Company is in a net liability position with its counterparty as of June 30, 2015 totaled $109,974 . Refer to Note 21—Fair Value Measurement for derivative asset and derivative liability balances before offsetting. The Company monitors the credit rating of its counterparty, Cargill, Incorporated, and believes it does not have significant credit risk. Accordingly, we do not currently require our counterparty to post collateral to support the net asset positions of our derivative instruments. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparty to its derivative instruments. The Company's collateral obligations are met by a credit line of $5,000,000 provided by the counterparty during the first ninety days of the agreement and thereafter by the Company which is seeking a secured facility to fund collateral obligations. For the year ended June 30, 2015 , the Company recorded in the consolidated statement of operations a loss on unsettled derivatives, net of $109,974 . The following sets forth a summary of the Company’s crude oil derivative positions at average NYMEX WTI prices as of June 30, 2015 . Period Type of Contract Volumes (in Bbls./day) Weighted Average Floor Price per Bbl. Weighted Average Ceiling Price per Bbl. Weighted Average Collar Spread per Bbl. Months of July 2015 through December 2015 Costless Collar 1,100 $55.00 $64.05 $9.05 Subsequent to June 30, 2015 , the Company realized gains of $138,787 and $412,985 on derivative contracts expiring in July 2015 and August 2015, respectively. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1—Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2—Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3—Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. Fair Value of Derivative Instruments. The following table summarize the location and amounts of the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the consolidated balance sheets as of June 30, 2015 . All items included in the tables below are Level 2 inputs within the fair value hierarchy: June 30, 2015 Asset (Liability) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheets Current derivative assets $ 355,555 $ (355,555 ) $ — Current derivative liabilities (465,529 ) 355,555 (109,974 ) Total $ (109,974 ) $ — $ (109,974 ) The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. The fair values are also compared to the values provided by the counterparty for reasonableness and are adjusted for the counterparty's credit quality for derivative assets and the Company’s credit quality for derivative liabilities. To date, adjustments for credit quality have not had a material impact on the fair values. |
Supplemental Disclosures about
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) | Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) Costs incurred for oil and natural gas property acquisition, exploration and development activities The following table summarizes costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities. Property acquisition costs are those costs incurred to lease property, including both undeveloped leasehold and the purchase of reserves in place. Exploration costs include costs of identifying areas that may warrant examination and examining specific areas that are considered to have prospects containing oil and natural gas reserves, including costs of drilling exploratory wells, geological and geophysical costs and carrying costs on undeveloped properties. Development costs are incurred to obtain access to proved reserves, including the cost of drilling. Exploration and development costs also include amounts incurred due to the recognition of asset retirement obligations of $576,039 , $66,976 and $65,575 during the years ended June 30, 2015 , 2014 , and 2013 , respectively. For the Years Ended June 30, 2015 2014 2013 Oil and natural gas activities Property acquisition costs: Proved property $ — $ — $ 26,449 Unproved property — 47,344 195,599 Exploration costs — 757,423 4,356,640 Development costs 10,975,637 18,566 79,035 Total costs incurred for oil and natural gas activities $ 10,975,637 $ 823,333 $ 4,657,723 Estimated Net Quantities of Proved Oil and Natural Gas Reserves The following estimates of the net proved oil and natural gas reserves of our oil and gas properties located entirely within the United States of America are based on evaluations prepared by third-party reservoir engineers. Reserve volumes and values were determined under the method prescribed by the SEC for our fiscal years ended June 30, 2015 , 2014 , and 2013 , which requires the application of the previous 12 months unweighted arithmetic average first-day-of-the-month price, and current costs held constant throughout the projected reserve life, when estimating whether reserve quantities are economical to produce. Proved oil and natural gas reserves are estimated quantities of crude oil, natural gas and natural gas liquids that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed oil and natural gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. There are uncertainties inherent in estimating quantities of proved oil and natural gas reserves, projecting future production rates, and timing of development expenditures. Accordingly, reserve estimates often differ from the quantities of oil and natural gas that are ultimately recovered. Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves for each of the periods indicated were as follows: Crude Oil (Bbls) Natural Gas Liquids (Bbls) Natural Gas (Mcf) BOE Proved developed and undeveloped reserves: June 30, 2012 11,638,618 492,473 7,860,156 13,441,116 Revisions of previous estimates (a) 1,826,053 975,515 27,679 2,806,181 Sales of minerals in place (485,536 ) (480,832 ) (7,726,032 ) (2,254,038 ) Production (sales volumes) (196,380 ) (7,271 ) (139,006 ) (226,819 ) June 30, 2013 12,782,755 979,885 22,797 13,766,440 Revisions of previous estimates (b) (1,919,052 ) 1,269,588 2,412,677 (247,350 ) Improved recovery, extensions and discoveries 17,146 32,731 498,044 132,884 Sales of minerals in place (184,722 ) — — (184,722 ) Production (sales volumes) (169,783 ) (3,516 ) (26,655 ) (177,742 ) June 30, 2014 10,526,344 2,278,688 2,906,863 13,289,510 Revisions of previous estimates (c) (64,074 ) 156,195 (2,894,703 ) (390,330 ) Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (450,294 ) (1,288 ) (7,221 ) (452,786 ) June 30, 2015 10,011,976 2,433,595 4,939 12,446,394 Proved developed reserves: June 30, 2012 7,670,934 111,978 1,499,382 8,032,809 June 30, 2013 10,077,522 8,539 22,797 10,089,861 June 30, 2014 7,858,224 32,164 481,042 7,970,562 June 30, 2015 7,347,231 1,572 4,939 7,349,626 Proved undeveloped reserves: June 30, 2012 3,967,684 380,495 6,360,774 5,408,307 June 30, 2013 2,705,233 971,346 — 3,676,579 June 30, 2014 2,668,120 2,246,524 2,425,821 5,318,948 June 30, 2015 2,664,745 2,432,023 — 5,096,768 (a) A significant upward reserve revision occurred in the Delhi Field during fiscal 2013 as a result of (1) revised geological maps based on production results and acquired seismic data, (2) inclusion of an additional reservoir with similar features, production history and suitability for EOR, and (3) inclusion of natural gas processing at Delhi. (b) Significant reserve revisions occurred in the Delhi Field during fiscal 2014. As a result of an adverse fluid release event in the Field, 1,817,224 BBLs of oil reserves were reclassified from proved to probable category based on the operator's decision to defer CO 2 injections in certain parts of the Field. There was a positive revision of 1,679,481 BOE, which was comprised of 1,275,178 BBLs of natural gas liquids and 2,425,821 MCF of natural gas as a result of an improved design for the gas plant in the Delhi Field. The plant is expected to significantly increase recoveries of these products, particularly natural gas, which was not previously planned to be extracted from the injection volumes. (c) The 2,894,703 negative fiscal 2015 revision for natural gas primarily reflects a 2,246,524 MCF negative revision for the Delhi Field gas plant together with a 452,786 MCF negative revision at the Giddings Field for a well that was lost due to excessive formation solids that kept interfering with pumping. The gas plant revision resulted from a decision during the current fiscal year to use the methane production internally to reduce field operating costs rather than selling it into the market. The 156,195 BBL positive natural gas liquids revision primarily reflects 185,499 BBL positive revision for better recovery from the redesigned gas plant, partly offset by a 29,304 BBL negative revision due to the lost Giddings well. Standardized Measure of Discounted Future Net Cash Flows Future oil and natural gas sales and production and development costs have been estimated using prices and costs in effect at the end of the years indicated, as required by ASC 932, Disclosures about Oil and Gas Producing Activities ("ASC 932"). ASC 932 requires that net cash flow amounts be discounted at 10%. Future production and development costs are computed by estimating the expenditures to be incurred in developing and producing our proved oil and natural gas reserves assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate period-end statutory tax rates to the future pretax net cash flow relating to our proved oil and natural gas reserves, less the tax basis of the related properties. The future income tax expenses do not give effect to tax credits, allowances, or the impact of general and administrative costs of ongoing operations relating to the Company's proved oil and natural gas reserves. Changes in the demand for oil and natural gas, inflation, and other factors make such estimates inherently imprecise and subject to substantial revision. The table below should not be construed to be an estimate of the current market value of our proved reserves. The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves as of June 30, 2015 , 2014 , and 2013 are as follows: For the Years Ended June 30, 2015 2014 2013 Future cash inflows $ 807,030,282 $ 1,193,515,075 $ 1,436,980,607 Future production costs and severance taxes (309,225,333 ) (475,387,931 ) (510,902,614 ) Future development costs (49,691,006 ) (46,154,178 ) (60,742,406 ) Future income tax expenses (123,888,665 ) (195,581,510 ) (275,113,560 ) Future net cash flows 324,225,278 476,391,456 590,222,027 10% annual discount for estimated timing of cash flows (165,028,739 ) (250,313,784 ) (283,001,328 ) Standardized measure of discounted future net cash flows $ 159,196,539 $ 226,077,672 $ 307,220,699 Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the previous 12 months unweighted arithmetic average first-day-of-the-month commodity prices for each year and reflect adjustments for lease quality, transportation fees, energy content and regional price differentials. Year Ended June 30, 2015 2014 2013 Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) NYMEX prices used in determining future cash flows $ 71.88 $ 3.44 $ 100.37 $ 4.10 $ 91.51 $ 3.44 The NGL price utilized for future cash inflows was based on the historical price received. A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves is as follows: For the Years Ended June 30, 2015 2014 2013 Balance, beginning of year $ 226,077,672 $ 307,220,699 $ 283,597,493 Net changes in sales prices and production costs related to future production (88,043,095 ) (73,439,526 ) (35,184,725 ) Changes in estimated future development costs (9,585,405 ) 9,848,614 (566,125 ) Sales of oil and gas produced during the period, net of production costs (18,538,016 ) (16,479,934 ) (19,569,182 ) Net change due to extensions, discoveries, and improved recovery — 775,574 — Net change due to revisions in quantity estimates (9,391,321 ) (23,757,788 ) 64,817,544 Net change due to sales of minerals in place — (3,150,277 ) (34,119,027 ) Development costs incurred during the period 7,785,095 — 747,656 Accretion of discount 31,974,540 45,896,187 41,678,733 Net change in discounted income taxes 34,157,767 58,073,450 10,175,957 Net changes in timing of production and other (a) (15,240,698 ) (78,909,327 ) (4,357,625 ) Balance, end of year $ 159,196,539 $ 226,077,672 $ 307,220,699 (a) Due to the June 2013 adverse fluid release event in the Delhi Field, the operator had expressed plans to produce the Delhi Field at lower production rates. The decision to produce these reserves at lower rates over a longer period of time did not materially change the total quantities expected to be recovered, but resulted in a significant reduction in the discounted value of these reserves as of June 30, 2014. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following table presents summarized quarterly financial information for the years ended June 30, 2015 and 2014 : 2015 First Second (1) Third Fourth Revenues $ 4,004,827 $ 7,708,067 $ 7,064,689 $ 9,063,682 Operating income 1,840,866 2,162,294 1,245,990 3,334,547 Net income available to common shareholders $ 960,435 $ 1,071,342 $ 566,011 $ 1,719,767 Basic net income per share $ 0.03 $ 0.03 $ 0.02 $ 0.05 Diluted net income per share $ 0.03 $ 0.03 $ 0.02 $ 0.05 2014 First Second (2) Third (3) Fourth Revenues $ 4,633,699 $ 4,392,289 $ 4,337,006 $ 4,310,514 Operating income (loss) 1,963,897 (158,095 ) 1,357,534 2,364,811 Net income (loss) available to common shareholders $ 1,303,876 $ (577,459 ) $ 755,125 $ 1,441,469 Basic net income (loss) per share $ 0.05 $ (0.02 ) $ 0.02 $ 0.04 Diluted net income (loss) per share $ 0.04 $ (0.02 ) $ 0.02 $ 0.04 (1) Impacted by the November 1, 2014 reversion of the Company's 23.9% working interest and 19.0% net revenue interest in the Delhi Field. (2) Reflects a $1.3 million restructuring charge and $0.8 million of non-recurring expenses primarily associated with the exercise of 4.0 million of 4.8 million of previously outstanding stock options and warrants. (3) Includes $608,000 of non-recurring expenses related to the retirement of an officer of the Company. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported income or stockholders' equity. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider all highly liquid investments, with original maturities of 90 days or less when purchased, to be cash and cash equivalents. |
Accounts Receivable and Allowance for Doubtful Accounts | Account Receivable and Allowance for Doubtful Accounts. Accounts receivable consist of uncollateralized joint interest owner obligations due within 30 days of the invoice date, uncollateralized accrued revenues due under normal trade terms, generally requiring payment within 30 days of production, and other miscellaneous receivables. No interest is charged on past-due balances. Payments made on accounts receivable are applied to the earliest unpaid items. We establish provisions for losses on accounts receivables if it is determined that collection of all or a part of an outstanding balance is not probable. Collectibility is reviewed regularly and an allowance is established or adjusted, as necessary, using the specific identification method. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties. We use the full cost method of accounting for our investments in oil and natural gas properties. Under this method of accounting, all costs incurred in the acquisition, exploration and development of oil and natural gas properties, including unproductive wells, are capitalized. This includes any internal costs that are directly related to property acquisition, exploration and development activities but does not include any costs related to production, general corporate overhead or similar activities. Gain or loss on the sale or other disposition of oil and natural gas properties is not recognized, unless the gain or loss would significantly alter the relationship between capitalized costs and proved reserves. Oil and natural gas properties include costs that are excluded from costs being depleted or amortized. Excluded costs represent investments in unproved and unevaluated properties and include non-producing leasehold, geological and geophysical costs associated with leasehold or drilling interests and exploration drilling costs. We exclude these costs until the project is evaluated and proved reserves are established or impairment is determined. Excluded costs are reviewed at least quarterly to determine if impairment has occurred. The amount of any evaluated or impaired oil and natural gas properties is transferred to capitalized costs being amortized. |
Limitation on Capitalized Costs | Limitation on Capitalized Costs. Under the full-cost method of accounting, we are required, at the end of each fiscal quarter, to perform a test to determine the limit on the book value of our oil and natural gas properties (the "Ceiling Test"). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the "Ceiling", this excess or impairment is charged to expense and reflected as additional accumulated depreciation, depletion and amortization or as a credit to oil and natural gas properties. The expense may not be reversed in future periods, even though higher oil and natural gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10 percent , and assuming continuation of existing economic conditions, of 1) estimated future gross revenues from proved reserves, which is computed using oil and natural gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12 -month period prior to the end of the reporting period (with consideration of price changes only to the extent provided by contractual arrangements including hedging arrangements pursuant to SAB 103), less 2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus (b) the cost of properties not being amortized (pursuant to Reg. S-X Rule 4-10 (c)(3)(ii)); plus (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. |
Other Property and Equipment | Other Property and Equipment. Other property and equipment includes leasehold improvements, data processing and telecommunications equipment, office furniture and equipment, and oilfield service equipment related to our artificial lift technology operations. These items are recorded at cost and depreciated over expected lives of the individual assets or group of assets, which range from three to seven years . The assets are depreciated using the straight-line method, except for oilfield service equipment related to our artificial lift technology operations, which is depreciated using a method which approximates the timing and amounts of expected revenues from the contract. Realization of the carrying value of other property and equipment is reviewed for possible impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Assets are determined to be impaired if a forecast of undiscounted estimated future net operating cash flows directly related to the asset, including disposal value, if any, is less than the carrying amount of the asset. If any asset is determined to be impaired, the loss is measured as the amount by which the carrying amount of the asset exceeds its fair value. Repairs and maintenance costs are expensed in the period incurred. |
Deferred Financing Costs | Deferred Financing Costs. The Company capitalizes costs incurred in connection with obtaining financing. These costs are included in other assets on the Company's consolidated balance sheet and are amortized over the term of the related financing using the straight-line method, which approximates the effective interest method. |
Asset Retirement Obligations | Asset Retirement Obligations. An asset retirement obligation associated with the retirement of a tangible long-lived asset is recognized as a liability in the period incurred, with an associated increase in the carrying amount of the related long-lived asset, our oil and natural gas properties. The cost of the tangible asset, including the asset retirement cost, is depleted over the useful life of the asset. The initial recognition or subsequent revision of asset retirement cost is considered a level 3 fair value measurement. The asset retirement obligation is recorded at its estimated fair value, measured by reference to the expected future cash outflows required to satisfy the retirement obligation discounted at our credit-adjusted risk-free interest rate. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. If the estimated future cost of the asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the long-lived asset. Revisions to estimated asset retirement obligations can result from changes in retirement cost estimates, revisions to estimated inflation rates and changes in the estimated timing of abandonment. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. Our financial instruments consist of cash and cash equivalents, certificates of deposit, accounts receivable, accounts payable and derivative instruments. Except for derivatives, the carrying amounts of these approximate fair value due to the highly liquid nature of these short-term instruments. The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for oil and gas, discount rates and volatility factors. |
Stock-based Compensation | Stock-based Compensation. Estimated grant date fair value of stock-based compensation awards is determined to provide the basis for future compensation expense. Service-and performance-based Restricted Stock and Contingent Restricted Stock awards are valued using the market price of our common stock on the grant date. For market-based awards, which reflect future returns of our common stock, the fair value and expected vesting period are determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies comprising a benchmark index. We used the Black-Scholes option-pricing model to determine grant date fair value of our past Stock Option and Incentive Warrant awards. For service-based awards stock-based compensation equal to grant date fair value is recognized ratably over the requisite service period as the award vests. A performance-based award vests upon attaining the award's operational goal and requires that the recipient remain an employee of the Company upon vesting. Stock-based compensation expense equal to grant date fair value is recognized ratably over the expected vesting period when it is deemed probable, for accounting purposes, that the performance goal will be achieved. The expected vesting period may be deemed to be shorter than the remainder of the award’s term. For a market-based award stock-based compensation expense equal to grant date fair value is recognized ratably over the expected vesting period, so long as the award holder remains an employee of the Company. Total compensation expense is independent of vesting or expiration of the awards, except for termination of service. |
Revenue Recognition | Revenue Recognition - Oil and Gas. We recognize oil and natural gas revenue from our interests in producing wells at the time that title passes to the purchaser. As a result, we accrue revenues related to production sold for which we have not received payment. Revenue Recognition - Artificial Lift Technology. Our artificial lift technology operations may generate revenues under several forms of operational or contractual arrangements. We have utilized the technology on wells that we develop and operate and on certain wells that we operate under farm-outs from other operators. In these cases, our revenues take the form of net sales of oil and gas production. We have also provided the technology to third parties under contractual arrangements that generate fees for the technology which are based on the net profits from oil and gas production. Under these contracts, we may be required to bear part or all of the incremental installation and capital costs for the technology. In other cases, we may be compensated for our technology through a fixed or variable fee per well, which does not require us to bear any net costs of installation or other capital costs. In the future, we may enter into licensing contracts which allow for the sale and installation of the technology by third parties to their customers or we may license the technology to larger organizations for use in specified geographic areas or on other broad terms. In all cases, we evaluate the substance of the contractual arrangement and recognize revenues over the life of the contract as the earnings process is determined to be complete. We likewise charge our costs, including both capital expenditures and operating expenses, to operating costs in a manner which either matches these costs to the timing of expected revenues, where appropriate, or charges these costs to the accounting period in which they were incurred where it is not appropriate to capitalize or defer them to match with revenues. |
Derivative Instruments | Derivative Instruments. In early June 2015, the Company initiated derivative transactions using costless collars to reduce its exposure to oil price volatility for a substantial portion of its forecasted production for the months of July 2015 through December 2015. All derivative instruments are recorded on the consolidated balance sheet as either an asset or liability measured at fair value. The Company nets its derivative instrument fair value amounts executed with the same counterparty pursuant to a ISDA master agreement, which provides for net settlement over the term of the contract and in the event of default or termination of the contract. Although the derivative instruments provide an economic hedge of the Company’s exposure to commodity price volatility, because the Company elected not to meet the criteria to qualify its derivative instruments for hedge accounting treatment, net gains and losses as a result of changes in the fair value of derivative instruments are recognized as gain or (loss) on derivatives in the consolidated statements of operations in the period in which the changes occur. The net cash flows resulting from the payments to and receipts from the counterparty as a result of derivative settlements are classified as cash flows from investing activities. The Company does not intend to enter into derivative instruments for speculative or trading purposes. |
Depreciation, Depletion and Amortization | Depreciation, Depletion and Amortization. The depreciable base for oil and natural gas properties includes the sum of all capitalized costs net of DD&A, estimated future development costs and asset retirement costs not included in oil and natural gas properties, less costs excluded from amortization. The depreciable base of oil and natural gas properties is amortized using the unit-of-production method over total proved reserves. Other property, consisting of leasehold improvements, office and computer equipment, vehicles and artificial lift equipment is depreciated as described above in Other Property and Equipment. |
Intangible Assets - Intellectual Property | Intangible Assets - Intellectual Property. The Company capitalizes the external costs, consisting primarily of legal costs, related to securing its patents and trademarks. The costs related to patents are amortized over the remaining patent life which is less than the expected useful life of each patent. Trademarks are perpetual and are not amortized. |
Income Taxes | Income Taxes. We recognize deferred tax assets and liabilities based on the differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that may result in taxable or deductible amounts in future years. The measurement of deferred tax assets may be reduced by a valuation allowance based upon management's assessment of available evidence if it is deemed more likely than not some or all of the deferred tax assets will not be realizable. We recognize a tax benefit from an uncertain position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position and will record the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with a taxing authority. The Company classifies any interest and penalties associated with income taxes as income tax expense. |
Earnings (loss) per share | Earnings (loss) per share. Basic earnings (loss) per share ("EPS") is computed by dividing earnings or loss by the weighted-average number of common shares outstanding less any non-vested restricted common stock outstanding. The computation of diluted EPS is similar to the computation of basic EPS, except that the denominator is increased to include the number of additional common shares that would have been outstanding if potential dilutive common shares had been issued. Our potential dilutive common shares are our outstanding stock options, warrants, and non-vested restricted common stock. The dilutive effect of our potential dilutive common shares is reflected in diluted EPS by application of the treasury stock method. Under the treasury stock method, exercise of stock options and warrants shall be assumed at the beginning of the period (or at time of issuance, if later) and common shares shall be assumed to be issued; the proceeds from exercise shall be assumed to be used to purchase common stock at the average market price during the period; and the incremental shares (the difference between the number of shares assumed issued and the number of shares assumed purchased) shall be included in the denominator of the diluted EPS computation. Potential dilutive common shares are excluded from the computation if their effect is anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: (Topic 606) to provide guidance on revenue recognition on contracts with customers to transfer goods or services or on contracts for the transfer of nonfinancial assets. ASU 2014-09 requires that revenue recognition on contracts with customers depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The standard provides for either the retrospective or cumulative effect transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs. The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted for financial statements that have not been previously issued. The adoption of this new guidance will not have a material impact on the Company's consolidated financial statements and disclosures. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of receivables | As of June 30, 2015 and June 30, 2014 our receivables consisted of the following: June 30, June 30, Receivables from oil and gas sales $ 3,122,155 $ 1,456,146 Other 318 1,066 Total receivables $ 3,122,473 $ 1,457,212 |
Prepaid Expenses and Other Cu34
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | As of June 30, 2015 and June 30, 2014 our prepaid expenses and other current assets consisted of the following: June 30, June 30, Prepaid insurance $ 178,994 $ 169,288 Prepaid federal and state income taxes 22,542 419,999 Equipment inventory 81,538 85,888 Retainers and deposits 26,978 29,478 Other prepaid expenses 59,352 42,800 Prepaid expenses and other current assets $ 369,404 $ 747,453 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of oil and natural gas properties and other property and equipment | As of June 30, 2015 and June 30, 2014 , our oil and natural gas properties and other property and equipment consisted of the following: June 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 57,718,653 $ 47,166,282 Less: Accumulated depreciation, depletion, and amortization (12,531,767 ) (9,344,212 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net 45,186,886 37,822,070 Other property and equipment Furniture, fixtures and office equipment, at cost 287,680 343,178 Artificial lift technology equipment, at cost 319,994 377,943 Less: Accumulated depreciation (330,918 ) (296,294 ) Other property and equipment, net $ 276,756 $ 424,827 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | AAs of June 30, 2015 and June 30, 2014 our other assets consisted of the following: June 30, June 30, Patent costs 538,276 305,592 Less: Accumulated amortization of patent costs (47,063 ) (27,050 ) Deferred loan costs 337,078 243,003 Less: Accumulated amortization of deferred loan costs (147,057 ) (98,421 ) Trademarks 44,803 40,928 Other assets, net $ 726,037 $ 464,052 |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Our disposition of the accrued restructuring charges is as follows: Type of Cost Balance at December 31, 2013 Payments Adjustment to Cost Balance at June 30, Salary continuation liability $ 615,721 $ (615,721 ) $ — $ — Incentive compensation costs 185,525 (185,525 ) — — Other benefit costs and employer taxes 154,575 (110,144 ) (44,431 ) — Accrued restructuring charges $ 955,821 $ (911,390 ) $ (44,431 ) $ — |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | As of June 30, 2015 and June 30, 2014 our other current liabilities consisted of the following: June 30, June 30, Accrued incentive and other compensation $ 578,910 $ 1,358,653 Accrued restructuring charges — 530,412 Officer retirement costs — 288,258 Asset retirement obligations due within one year 57,223 146,703 Accrued royalties, including suspended accounts 75,164 89,179 Accrued franchise taxes 94,885 87,575 Accrued - other 49,191 57,224 Accrued liabilities and other $ 855,373 $ 2,558,004 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of reconciliation of the beginning and ending asset retirement obligation | The following is a reconciliation of the beginning and ending asset retirement obligation for the years ended June 30, 2015 and 2014 : Years Ended 2015 2014 Asset retirement obligations—beginning of period $ 352,215 $ 615,551 Liabilities incurred (1) 564,019 — Liabilities settled (137,604 ) (323,665 ) Liabilities sold (52,526 ) (48,273 ) Accretion of discount 34,866 41,626 Revisions to previous estimates 12,020 66,976 Less: current asset retirement obligations (57,223 ) (146,703 ) Asset retirement obligations—end of period $ 715,767 $ 205,512 (1) Primarily attributable to the reversion of our working interest in the Delhi Field in November 2014. |
Stock-Based Incentive Plan (Tab
Stock-Based Incentive Plan (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of information regarding outstanding Stock Options and Incentive Warrants and the changes during the fiscal year | The following summary presents information regarding outstanding Stock Options as of June 30, 2015 , and the changes during the fiscal year: Number of Stock Options Weighted Average Exercise Price Aggregate Intrinsic Value(1) Weighted Average Remaining Contractual Term (in years) Stock Options outstanding at June 30, 2014 178,061 $ 2.08 Granted — — Exercised (87,000 ) $ 1.63 Canceled or forfeited — — Expired — — Stock Options outstanding at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 Vested or expected to vest at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 Exercisable at June 30, 2015 91,061 $ 2.50 $ 372,000 1.3 (1) Based upon the difference between the market price of our common stock on the last trading date of the period ( $6.59 as of June 30, 2015 ) and the Stock Option exercise price of in-the-money Stock Option. |
Schedule of Restricted Stock transactions | The following table summarizes Contingent Restricted Stock activity: Number of Weighted Unamortized Compensation Expense at June 30, 2015 (1) Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2014 — — Performance-based awards granted 38,325 $ 10.05 $ — Market-based awards granted 17,961 4.26 — Unvested at June 30, 2015 56,286 $ 8.20 $ 57,004 2.5 (1) Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. The following table sets forth the Restricted Stock transactions for the year ended June 30, 2015 : Number of Restricted Shares Weighted Average Grant-Date Fair Value Unamortized Compensation Expense at June 30, 2015 (1) Weighted Average Remaining Amortization Period (Years) Unvested at June 30, 2014 140,067 $ 8.70 $ — Service-based awards granted 100,910 9.53 Performance-based awards granted 76,642 10.05 Market-based awards granted 35,914 7.59 Vested (91,306 ) 8.40 Forfeited — — Unvested at June 30, 2015 262,227 $ 9.37 $ 1,306,990 2.3 (1) Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
Supplemental Disclosure of Ca41
Supplemental Disclosure of Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flow information | Our supplemental disclosures of cash flow information for the years ended June 30, 2015 , 2014 , and 2013 are as follows: June 30, 2015 2014 2013 Income taxes paid $ 220,000 $ 755,941 $ 699,874 Income tax refunds 331,733 — — Non-cash transactions: Change in accounts payable used to acquire property and equipment 5,422,566 (183,766 ) (1,535,322 ) Oil and natural gas property costs attributable to the recognition of asset retirement obligations 576,039 66,976 65,575 Accrued purchases of treasury stock 170,283 — — Previously acquired Company shares swapped by holders to pay stock option exercise price $ — $ 618,606 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax provision (benefit) | The components of our income tax provision (benefit) are as follows: June 30, 2015 June 30, 2014 June 30, 2013 Current: Federal $ 1,413,296 $ 386,018 $ 857,480 State 608,436 161,168 659,303 Total current income tax provision 2,021,732 547,186 1,516,783 Deferred: Federal 1,282,059 1,319,727 2,546,495 State 140,430 25,085 (33,517 ) Total deferred income tax provision 1,422,489 1,344,812 2,512,978 $ 3,444,221 $ 1,891,998 $ 4,029,761 |
Schedule of reconciliation of statutory income tax expense to income tax provision | The following table presents the reconciliation of our income taxes calculated at the statutory federal tax rate, currently 34% , to the income tax provision in our financial statements. The effective tax rate for all years is in excess of the statutory rate as a result of state income taxes, primarily in the state of Louisiana, with smaller adjustments related to stock-based compensation and other permanent differences. June 30, 2015 June 30, 2014 June 30, 2013 Income tax provision (benefit) computed at the statutory federal rate: $ 2,868,267 $ 1,866,366 $ 3,623,784 Reconciling items: State income taxes, net of federal tax benefit 595,708 189,081 413,019 Permanent differences related to stock-based compensation — (155,817 ) 8,933 Expiring NOLs related to 2004 reverse merger — — 600,964 Deferred tax asset valuation adjustment — — (600,964 ) Other permanent differences (19,754 ) (7,632 ) (15,975 ) Income tax provision $ 3,444,221 $ 1,891,998 $ 4,029,761 |
Schedule of components of deferred taxes | The components of our deferred taxes are detailed in the table below: June 30, 2015 June 30, 2014 June 30, 2013 Deferred tax assets: Non-qualified stock-based compensation $ 173,647 $ 134,469 $ 774,673 Net operating loss carry-forwards 400,288 427,249 427,249 AMT credit carry-forward* 701,254 701,254 502,466 Other 91,113 165,775 28,170 Gross deferred tax assets 1,366,302 1,428,747 1,732,558 Valuation allowance (292,446 ) (292,446 ) (292,446 ) Total deferred tax assets 1,073,856 1,136,301 1,440,112 Deferred tax liability: Oil and natural gas properties (12,233,993 ) (10,873,949 ) (9,832,948 ) Total deferred tax liability (12,233,993 ) (10,873,949 ) (9,832,948 ) Net deferred tax liability $ (11,160,137 ) $ (9,737,648 ) $ (8,392,836 ) _______________________________________________________________________________ * Total AMT credit carry-forward is $901,545 . Our net deferred tax liability does not include $200,291 of AMT credit carry-forward associated with the tax benefit related to stock-based compensation. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted income (loss) per share | The following table sets forth the computation of basic and diluted net income per share: June 30, 2015 2014 2013 Numerator Net income attributable to common shareholders $ 4,317,555 $ 2,923,011 $ 5,954,126 Denominator Weighted average number of common shares—Basic 32,817,456 30,895,832 28,205,467 Effect of dilutive securities: Contingent restricted stock grants 4,422 — — Common stock warrants issued in connection with equity and financing transactions — — 878 Stock Options and Incentive Warrants 102,140 1,668,235 3,768,786 Total weighted average dilutive securities 106,562 1,668,235 3,769,664 Weighted average number of common shares and dilutive potential common shares used in diluted EPS 32,924,018 32,564,067 31,975,131 Net income per common share—Basic $ 0.13 $ 0.09 $ 0.21 Net income per common share—Diluted $ 0.13 $ 0.09 $ 0.19 |
Schedule of outstanding potentially dilutive securities | as of June 30, 2015 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Contingent Restricted Stock grants $ — 17,961 Stock Options 2.50 91,061 Total $ 2.09 109,022 The following are reflected in the calculation of diluted earnings per share as of June 30, 2014 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Stock Options $ 2.08 178,061 The following are reflected in the calculation of diluted earnings per share as of June 30, 2013 : Outstanding Potential Dilutive Securities Weighted Average Exercise Price Outstanding at Common stock warrants issued in connection with equity and financing transactions $ 2.50 1,165 Stock Options and Incentive Warrants 1.99 4,822,820 Total $ 1.99 4,823,985 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease commitments under the operating lease | Future minimum lease commitments as of June 30, 2015 under this operating lease are as follows: For the fiscal year ended June 30, 2016 $ 159,011 2017 13,251 Total $ 172,262 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedule of customers from whom the entity derived 10 percent or more of net oil and natural gas revenues | . Year Ended June 30, Customer 2015 2014 2013 Plains Marketing L.P. (includes Delhi production) 99 % 96 % 90 % Enterprise Crude Oil LLC — % 2 % 4 % Flint Hills — % 1 % 2 % ETC Texas Pipeline, LTD. — % 1 % — % All others 1 % — % 4 % Total 100 % 100 % 100 % |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of crude oil derivative positions | The following sets forth a summary of the Company’s crude oil derivative positions at average NYMEX WTI prices as of June 30, 2015 . Period Type of Contract Volumes (in Bbls./day) Weighted Average Floor Price per Bbl. Weighted Average Ceiling Price per Bbl. Weighted Average Collar Spread per Bbl. Months of July 2015 through December 2015 Costless Collar 1,100 $55.00 $64.05 $9.05 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured on a recurring basis | The following table summarize the location and amounts of the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the consolidated balance sheets as of June 30, 2015 . All items included in the tables below are Level 2 inputs within the fair value hierarchy: June 30, 2015 Asset (Liability) Gross Amounts Recognized Gross Amounts Offset in the Consolidated Balance Sheet Net Amounts Presented in the Consolidated Balance Sheets Current derivative assets $ 355,555 $ (355,555 ) $ — Current derivative liabilities (465,529 ) 355,555 (109,974 ) Total $ (109,974 ) $ — $ (109,974 ) |
Supplemental Disclosures abou48
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Schedule of costs incurred and capitalized in oil and natural gas property acquisition, exploration and development activities | Exploration and development costs also include amounts incurred due to the recognition of asset retirement obligations of $576,039 , $66,976 and $65,575 during the years ended June 30, 2015 , 2014 , and 2013 , respectively. For the Years Ended June 30, 2015 2014 2013 Oil and natural gas activities Property acquisition costs: Proved property $ — $ — $ 26,449 Unproved property — 47,344 195,599 Exploration costs — 757,423 4,356,640 Development costs 10,975,637 18,566 79,035 Total costs incurred for oil and natural gas activities $ 10,975,637 $ 823,333 $ 4,657,723 |
Schedule of estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves for each of the periods indicated were as follows: Crude Oil (Bbls) Natural Gas Liquids (Bbls) Natural Gas (Mcf) BOE Proved developed and undeveloped reserves: June 30, 2012 11,638,618 492,473 7,860,156 13,441,116 Revisions of previous estimates (a) 1,826,053 975,515 27,679 2,806,181 Sales of minerals in place (485,536 ) (480,832 ) (7,726,032 ) (2,254,038 ) Production (sales volumes) (196,380 ) (7,271 ) (139,006 ) (226,819 ) June 30, 2013 12,782,755 979,885 22,797 13,766,440 Revisions of previous estimates (b) (1,919,052 ) 1,269,588 2,412,677 (247,350 ) Improved recovery, extensions and discoveries 17,146 32,731 498,044 132,884 Sales of minerals in place (184,722 ) — — (184,722 ) Production (sales volumes) (169,783 ) (3,516 ) (26,655 ) (177,742 ) June 30, 2014 10,526,344 2,278,688 2,906,863 13,289,510 Revisions of previous estimates (c) (64,074 ) 156,195 (2,894,703 ) (390,330 ) Improved recovery, extensions and discoveries — — — — Sales of minerals in place — — — — Production (sales volumes) (450,294 ) (1,288 ) (7,221 ) (452,786 ) June 30, 2015 10,011,976 2,433,595 4,939 12,446,394 Proved developed reserves: June 30, 2012 7,670,934 111,978 1,499,382 8,032,809 June 30, 2013 10,077,522 8,539 22,797 10,089,861 June 30, 2014 7,858,224 32,164 481,042 7,970,562 June 30, 2015 7,347,231 1,572 4,939 7,349,626 Proved undeveloped reserves: June 30, 2012 3,967,684 380,495 6,360,774 5,408,307 June 30, 2013 2,705,233 971,346 — 3,676,579 June 30, 2014 2,668,120 2,246,524 2,425,821 5,318,948 June 30, 2015 2,664,745 2,432,023 — 5,096,768 (a) A significant upward reserve revision occurred in the Delhi Field during fiscal 2013 as a result of (1) revised geological maps based on production results and acquired seismic data, (2) inclusion of an additional reservoir with similar features, production history and suitability for EOR, and (3) inclusion of natural gas processing at Delhi. (b) Significant reserve revisions occurred in the Delhi Field during fiscal 2014. As a result of an adverse fluid release event in the Field, 1,817,224 BBLs of oil reserves were reclassified from proved to probable category based on the operator's decision to defer CO 2 injections in certain parts of the Field. There was a positive revision of 1,679,481 BOE, which was comprised of 1,275,178 BBLs of natural gas liquids and 2,425,821 MCF of natural gas as a result of an improved design for the gas plant in the Delhi Field. The plant is expected to significantly increase recoveries of these products, particularly natural gas, which was not previously planned to be extracted from the injection volumes. (c) The 2,894,703 negative fiscal 2015 revision for natural gas primarily reflects a 2,246,524 MCF negative revision for the Delhi Field gas plant together with a 452,786 MCF negative revision at the Giddings Field for a well that was lost due to excessive formation solids that kept interfering with pumping. The gas plant revision resulted from a decision during the current fiscal year to use the methane production internally to reduce field operating costs rather than selling it into the market. The 156,195 BBL positive natural gas liquids revision primarily reflects 185,499 BBL positive revision for better recovery from the redesigned gas plant, partly offset by a 29,304 BBL negative revision due to the lost Giddings well. |
Schedule of standardized measure of discounted future net cash flows related to proved oil and natural gas reserves | The standardized measure of discounted future net cash flows related to proved oil and natural gas reserves as of June 30, 2015 , 2014 , and 2013 are as follows: For the Years Ended June 30, 2015 2014 2013 Future cash inflows $ 807,030,282 $ 1,193,515,075 $ 1,436,980,607 Future production costs and severance taxes (309,225,333 ) (475,387,931 ) (510,902,614 ) Future development costs (49,691,006 ) (46,154,178 ) (60,742,406 ) Future income tax expenses (123,888,665 ) (195,581,510 ) (275,113,560 ) Future net cash flows 324,225,278 476,391,456 590,222,027 10% annual discount for estimated timing of cash flows (165,028,739 ) (250,313,784 ) (283,001,328 ) Standardized measure of discounted future net cash flows $ 159,196,539 $ 226,077,672 $ 307,220,699 |
Schedule of NYMEX prices used in determining future cash flows | Future cash inflows represent expected revenues from production of period-end quantities of proved reserves based on the previous 12 months unweighted arithmetic average first-day-of-the-month commodity prices for each year and reflect adjustments for lease quality, transportation fees, energy content and regional price differentials. Year Ended June 30, 2015 2014 2013 Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) Oil (Bbl) Gas (MMBtu) NYMEX prices used in determining future cash flows $ 71.88 $ 3.44 $ 100.37 $ 4.10 $ 91.51 $ 3.44 |
Schedule of changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves | A summary of the changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves is as follows: For the Years Ended June 30, 2015 2014 2013 Balance, beginning of year $ 226,077,672 $ 307,220,699 $ 283,597,493 Net changes in sales prices and production costs related to future production (88,043,095 ) (73,439,526 ) (35,184,725 ) Changes in estimated future development costs (9,585,405 ) 9,848,614 (566,125 ) Sales of oil and gas produced during the period, net of production costs (18,538,016 ) (16,479,934 ) (19,569,182 ) Net change due to extensions, discoveries, and improved recovery — 775,574 — Net change due to revisions in quantity estimates (9,391,321 ) (23,757,788 ) 64,817,544 Net change due to sales of minerals in place — (3,150,277 ) (34,119,027 ) Development costs incurred during the period 7,785,095 — 747,656 Accretion of discount 31,974,540 45,896,187 41,678,733 Net change in discounted income taxes 34,157,767 58,073,450 10,175,957 Net changes in timing of production and other (a) (15,240,698 ) (78,909,327 ) (4,357,625 ) Balance, end of year $ 159,196,539 $ 226,077,672 $ 307,220,699 (a) Due to the June 2013 adverse fluid release event in the Delhi Field, the operator had expressed plans to produce the Delhi Field at lower production rates. The decision to produce these reserves at lower rates over a longer period of time did not materially change the total quantities expected to be recovered, but resulted in a significant reduction in the discounted value of these reserves as of June 30, 2014. |
Selected Quarterly Financial 49
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of quarterly financial information | The following table presents summarized quarterly financial information for the years ended June 30, 2015 and 2014 : 2015 First Second (1) Third Fourth Revenues $ 4,004,827 $ 7,708,067 $ 7,064,689 $ 9,063,682 Operating income 1,840,866 2,162,294 1,245,990 3,334,547 Net income available to common shareholders $ 960,435 $ 1,071,342 $ 566,011 $ 1,719,767 Basic net income per share $ 0.03 $ 0.03 $ 0.02 $ 0.05 Diluted net income per share $ 0.03 $ 0.03 $ 0.02 $ 0.05 2014 First Second (2) Third (3) Fourth Revenues $ 4,633,699 $ 4,392,289 $ 4,337,006 $ 4,310,514 Operating income (loss) 1,963,897 (158,095 ) 1,357,534 2,364,811 Net income (loss) available to common shareholders $ 1,303,876 $ (577,459 ) $ 755,125 $ 1,441,469 Basic net income (loss) per share $ 0.05 $ (0.02 ) $ 0.02 $ 0.04 Diluted net income (loss) per share $ 0.04 $ (0.02 ) $ 0.02 $ 0.04 (1) Impacted by the November 1, 2014 reversion of the Company's 23.9% working interest and 19.0% net revenue interest in the Delhi Field. (2) Reflects a $1.3 million restructuring charge and $0.8 million of non-recurring expenses primarily associated with the exercise of 4.0 million of 4.8 million of previously outstanding stock options and warrants. (3) Includes $608,000 of non-recurring expenses related to the retirement of an officer of the Company. |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Oil and natural gas properties | ||
Limitation on Capitalized Costs | ||
Discount rate for present value (as a percent) | 10.00% | |
Period considered for computing unweighted arithmetic average of oil and natural gas prices | 12 months | |
Other Property and Equipment | Minimum | ||
Other Property and Equipment | ||
Expected lives of the individual assets or group of assets | 3 years | |
Other Property and Equipment | Maximum | ||
Other Property and Equipment | ||
Expected lives of the individual assets or group of assets | 7 years |
Receivables (Details)
Receivables (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Receivables [Abstract] | ||
Receivables from oil and gas sales | $ 3,122,155 | $ 1,456,146 |
Other | 318 | 1,066 |
Total receivables | $ 3,122,473 | $ 1,457,212 |
Prepaid Expenses and Other Cu52
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 178,994 | $ 169,288 |
Prepaid federal and state income taxes | 22,542 | 419,999 |
Equipment inventory | 81,538 | 85,888 |
Retainers and deposits | 26,978 | 29,478 |
Other prepaid expenses | 59,352 | 42,800 |
Prepaid expenses and other current assets | $ 369,404 | $ 747,453 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Oil and natural gas properties | ||
Property costs subject to amortization | $ 57,718,653 | $ 47,166,282 |
Less: Accumulated depreciation, depletion, and amortization | (12,531,767) | (9,344,212) |
Unproved properties not subject to amortization | 0 | 0 |
Oil and natural gas properties, net | 45,186,886 | 37,822,070 |
Other property and equipment | ||
Furniture, fixtures and office equipment, at cost | 287,680 | 343,178 |
Artificial lift technology equipment, at cost | 319,994 | 377,943 |
Less: Accumulated depreciation | (330,918) | (296,294) |
Other property and equipment, net | $ 276,756 | $ 424,827 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) | Oct. 24, 2014USD ($) | Dec. 01, 2013USD ($) | Jun. 30, 2015USD ($)well | Jun. 30, 2014USD ($)well | Jun. 30, 2013USD ($) |
Property, Plant and Equipment [Line Items] | |||||
Installation costs of artificial lift technology | $ 217,733 | $ 377,943 | |||
Wells installed with artificial lift technology, for third party customer (total wells in program) | well | 2 | 5 | |||
Wells installed with artificial lift technology, for third party customer | well | 5 | 3 | |||
Percentage of net profits from production | 25.00% | ||||
Additional depreciation | $ 275,682 | ||||
Number of wells removed and installed with artificial lift technology | well | 3 | ||||
Proceeds from asset sales | $ 398,242 | $ 542,347 | $ 3,479,976 | ||
Oil and natural gas properties | |||||
Property, Plant and Equipment [Line Items] | |||||
Proceeds from asset sales | $ 389,165 | $ 402,500 |
Other Assets (Details)
Other Assets (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Patent costs | $ 538,276 | $ 305,592 |
Less: Accumulated amortization of patent costs | (47,063) | (27,050) |
Deferred loan costs | 337,078 | 243,003 |
Less: Accumulated amortization of deferred loan costs | (147,057) | (98,421) |
Trademarks | 44,803 | 40,928 |
Other assets, net | $ 726,037 | $ 464,052 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2015 | Nov. 02, 2013 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 1,332,186 | |||
Non-cash stock-based compensation expense | $ 800,000 | |||
Accrued restructuring charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $ 955,821 | $ 955,821 | $ 0 | |
Restructuring Charges | Stock Compensation, Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-cash stock-based compensation expense | $ 376,365 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring and Related Costs (Details) | 18 Months Ended |
Jun. 30, 2015USD ($) | |
Salary continuation liability | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $ 615,721 |
Payments | (615,721) |
Adjustment to Cost | 0 |
Ending balance | 0 |
Incentive compensation costs | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 185,525 |
Payments | (185,525) |
Adjustment to Cost | 0 |
Ending balance | 0 |
Other benefit costs and employer taxes | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 154,575 |
Payments | (110,144) |
Adjustment to Cost | (44,431) |
Ending balance | 0 |
Accrued restructuring charges | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 955,821 |
Payments | (911,390) |
Adjustment to Cost | (44,431) |
Ending balance | $ 0 |
Accrued Liabilities and Other -
Accrued Liabilities and Other - Schedule of Other Current Liabilities (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued incentive and other compensation | $ 578,910 | $ 1,358,653 |
Accrued restructuring charges | 0 | 530,412 |
Officer retirement costs | 0 | 288,258 |
Asset retirement obligations due within one year | 57,223 | 146,703 |
Accrued royalties, including suspended accounts | 75,164 | 89,179 |
Accrued franchise taxes | 94,885 | 87,575 |
Accrued - other | 49,191 | 57,224 |
Accrued liabilities and other | $ 855,373 | $ 2,558,004 |
Asset Retirement Obligations -
Asset Retirement Obligations - Summary of Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Reconciliation of the beginning and ending asset retirement obligation | ||||
Asset retirement obligations—beginning of period | $ 352,215 | $ 615,551 | ||
Liabilities incurred (1) | [1] | 564,019 | 0 | |
Liabilities settled | (137,604) | (323,665) | ||
Liabilities sold | (52,526) | (48,273) | ||
Accretion of discount | 34,866 | 41,626 | $ 72,312 | |
Revisions to previous estimates | 12,020 | 66,976 | ||
Less: current asset retirement obligations | (57,223) | (146,703) | ||
Asset retirement obligations - end of period | $ 715,767 | $ 205,512 | ||
[1] | Primarily attributable to the reversion of our working interest in the Delhi Field in November 2014. |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | May. 12, 2015 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Common shares issued during period for share based compensation (shares) | 1,568,832 | ||||||||
Proceeds from the exercise of stock options | $ 141,600 | $ 3,252,801 | $ 70,719 | ||||||
Stock issued, nonqualified stock options and incentive warrants noncash (shares) | 2,635,696 | ||||||||
Shares received in lieu of cash payment (shares) | 50,956 | ||||||||
Shares received in lieu of cash payment, average cost of shares (in USD per share) | $ 12.14 | ||||||||
Dividends paid | 9,833,642 | $ 9,723,833 | |||||||
Cash dividends paid (per common share) | $ 0.10 | $ 0.05 | $ 0.10 | $ 0.10 | |||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | 674,302 | $ 674,302 | 674,302 | ||||||
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||||||||
Treasury stock retired (shares) | 801,889 | ||||||||
Treasury stock retired, value | $ 1,019,840 | ||||||||
Purchases of treasury stock (shares) | 186,714 | ||||||||
Purchases of treasury stock | $ 504,124 | $ 2,273,857 | |||||||
Treasury stock acquired, average cost (in USD per share) | $ 12.18 | ||||||||
Series A Cumulative Preferred Stock | |||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Issuance of preferred stock (in shares) | 317,319 | ||||||||
Proceeds from issuance of preferred stock, net | $ 6,930,535 | ||||||||
Cumulative Preferred Stock (as a percent) | 8.50% | 8.50% | 8.50% | ||||||
Preferred stock, liquidation preference (in dollars per share) | $ 25 | $ 25 | $ 25 | ||||||
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $ 0.177083 | ||||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | $ 674,302 | $ 674,302 | $ 674,302 | ||||||
Weighted Average | Series A Cumulative Preferred Stock | |||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Share Price | $ 23.80 | ||||||||
Public Offering | Series A Cumulative Preferred Stock | |||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Issuance of preferred stock (in shares) | 220,000 | ||||||||
At the Market Offering | Series A Cumulative Preferred Stock | |||||||||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Issuance of preferred stock (in shares) | 97,319 | ||||||||
Common Stock | |||||||||
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||||||||
Purchases of treasury stock (shares) | 70,907 | 186,714 | |||||||
Stock acquired for payroll tax liabilities from vestings of stock based compensation plan (in shares) | 7,535 | ||||||||
Stock acquired for payroll tax liabilities from vestings of stock based compensation plan (in USD per share) | $ 9.16 | ||||||||
2015 Share Repurchase Program | Common Stock | |||||||||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Amount authorized to be repurchased | $ 5,000,000 | ||||||||
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | |||||||||
Purchases of treasury stock (shares) | 63,372 | ||||||||
Treasury stock acquired, average cost (in USD per share) | $ 6.87 |
Stock-Based Incentive Plan - Na
Stock-Based Incentive Plan - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of stock options (shares) | 87,000 | 550,000 | ||
Options, Exercised, Intrinsic Value | $ 501,810 | $ 5,233,480 | ||
Non-cash stock-based compensation expense | $ 800,000 | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options and Incentive Warrants, Grants (in shares) | 0 | 0 | 0 | |
Stock Options and Incentive Warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise of stock options (shares) | 4,644,759 | |||
Options, Exercised, Intrinsic Value | $ 47,504,114 | |||
Options and Incentive Warrants Vested in Period | 0 | 0 | 18,922 | |
Options and Incentive Warrants, vested in period, grant date, fair value | $ 0 | $ 0 | $ 46,359 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock, vested (shares) | 91,306 | 277,198 | 277,198 | |
Restricted stock, vested in period, grant date fair value | $ 766,970 | $ 1,796,243 | $ 1,427,570 | |
Non-cash stock-based compensation expense | 962,813 | $ 1,728,687 | $ 1,531,745 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividends paid | $ 19,160 | |||
Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for granting (shares) | 6,500,000 | |||
Shares available for grant (shares) | 542,529 | |||
Minimum | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value at grant date, per share | $ 4.26 | |||
Vesting period | 3 years 3 months 18 days | |||
Maximum | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value at grant date, per share | $ 8.40 | |||
Vesting period | 2 years 6 months 18 days |
Stock-Based Incentive Plan - Sc
Stock-Based Incentive Plan - Schedule of Options and Incentive Warrants (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Number of Stock Options | ||||
Stock Options Outstanding, Beginning of Period (in shares) | 178,061 | |||
Stock Options, Grants (in shares) | 0 | |||
Stock Options , Exercises (in shares) | (87,000) | (550,000) | ||
Stock Options, Forfeited or Canceled (in shares) | 0 | |||
Stock Options, Expirations (in shares) | 0 | |||
Stock Options Outstanding, End of Period (in shares) | 91,061 | 178,061 | ||
Stock Options, Vested and Expected to Vest (in shares) | 91,061 | |||
Stock Options, Exercisable (in shares) | 91,061 | |||
Weighted Average Exercise Price | ||||
Stock Options Outstanding, Weighted Average Exercise Price, Beginning of Period (in USD per share) | $ 2.08 | |||
Stock Options, Grants, Weighted Average Exercise Price (in USD per share) | 0 | |||
Stock Options, Exercises, Weighted Average Exercise Price (in USD per share) | 1.63 | |||
Stock Options, Forfeitures, Weighted Average Exercise Price (in USD per share) | 0 | |||
Stock Options, Expirations, Weighted Average Exercise Price (in USD per share) | 0 | |||
Stock Options, Weighted Average Exercise Price, End of Period (in USD per share) | 2.50 | $ 2.08 | ||
Stock Options, Vested and Expected to Vest, Weighted Average Exercise Price (in USD per share) | 2.50 | |||
Stock Options, Exercisable, Weighted Average Exercise Price (in USD per share) | $ 2.50 | |||
Aggregate Intrinsic Value | ||||
Stock Options, Outstanding, Aggregate Intrinsic Value | [1] | $ 372,000 | ||
Stock Options, Vested and Expected to Vest, Aggregate Intrinsic Value | [1] | 372,000 | ||
Stock Options, Exercisable, Aggregate Intrinsic Value | [1] | $ 372,000 | ||
Stock Options, Outstanding, Weighted Average Remaining Contractual Term (in years) | 1 year 3 months 18 days | |||
Stock Options, Vested and Expected to Vest, Weighted Average Remaining Contractual Term (in years) | 1 year 3 months 18 days | |||
Stock Options, Exercisable, Weighted Average Remaining Contractual Term (in years) | 1 year 3 months 18 days | |||
Stock Options and Incentive Warrants | ||||
Number of Stock Options | ||||
Stock Options , Exercises (in shares) | (4,644,759) | |||
Common Stock | Stock Options and Incentive Warrants | ||||
Aggregate Intrinsic Value | ||||
Share Price | $ 6.59 | |||
[1] | Based upon the difference between the market price of our common stock on the last trading date of the period ($6.59 as of June 30, 2015) and the Stock Option exercise price of in-the-money Stock Option. |
Stock-Based Incentive Plan - 63
Stock-Based Incentive Plan - Schedule of Restricted Stock (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Restricted Stock | ||||
Number of Restricted Shares | ||||
Nonvested, beginning of period (shares) | 140,067 | |||
Vested (shares) | (91,306) | (277,198) | (277,198) | |
Forfeited (shares) | 0 | |||
Nonvested, end of period (shares) | 262,227 | 140,067 | ||
Weighted Average Grant-Date Fair Value | ||||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 8.70 | |||
Vested, weighted average grant date fair value (in USD per share) | 8.40 | |||
Forfeited, weighted average grant date fair value (in USD per share) | 0 | |||
Weighted average grant date fair value, end of period (in USD per share) | $ 9.37 | $ 8.70 | ||
Unamortized compensation expense | [1] | $ 1,306,990 | ||
Weighted Average Remaining Amortization Period (in years) | 2 years 3 months 18 days | |||
Restricted Stock, Service Based | ||||
Number of Restricted Shares | ||||
Grants (shares) | 100,910 | |||
Weighted Average Grant-Date Fair Value | ||||
Grants, weighted average grant date fair value (in USD per share) | $ 9.53 | |||
Restricted Stock, Performance Based | ||||
Number of Restricted Shares | ||||
Grants (shares) | 76,642 | |||
Weighted Average Grant-Date Fair Value | ||||
Grants, weighted average grant date fair value (in USD per share) | $ 10.05 | |||
Potential future compensation expense | $ 770,252 | |||
Restricted Stock, Market Based | ||||
Number of Restricted Shares | ||||
Grants (shares) | 35,914 | |||
Weighted Average Grant-Date Fair Value | ||||
Grants, weighted average grant date fair value (in USD per share) | $ 7.59 | |||
[1] | Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
Stock-Based Incentive Plan - 64
Stock-Based Incentive Plan - Schedule of Contingent Restricted Stock (Details) - Jun. 30, 2015 - USD ($) | Total | |
Contingent Restricted Stock Grants | ||
Number of Restricted Stock Units | ||
Nonvested, beginning of period (shares) | 0 | |
Nonvested, end of period (shares) | 56,286 | |
Weighted Average Grant-Date Fair Value | ||
Weighted average grant date fair value, beginning of period (in USD per share) | $ 0 | |
Weighted average grant date fair value, end of period (in USD per share) | $ 8.20 | |
Unamortized compensation expense | [1] | $ 57,004 |
Weighted Average Remaining Amortization Period (in years) | 2 years 6 months | |
Contingent Restricted Stock, Performance Based | ||
Number of Restricted Stock Units | ||
Grants (shares) | 38,325 | |
Weighted Average Grant-Date Fair Value | ||
Grants, weighted average grant date fair value (in USD per share) | $ 10.05 | |
Potential future compensation expense | $ 385,166 | |
Contingent Restricted Stock, Market Based | ||
Number of Restricted Stock Units | ||
Grants (shares) | 17,961 | |
Weighted Average Grant-Date Fair Value | ||
Grants, weighted average grant date fair value (in USD per share) | $ 4.26 | |
[1] | Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
Supplemental Disclosure of Ca65
Supplemental Disclosure of Cash Flow Information - Schedule of Supplement Cash Flow (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Supplemental Cash Flow Elements [Abstract] | |||
Income taxes paid | $ 220,000 | $ 755,941 | $ 699,874 |
Income tax refunds | 331,733 | 0 | 0 |
Non-cash transactions: | |||
Change in accounts payable used to acquire property and equipment | 5,422,566 | (183,766) | (1,535,322) |
Oil and natural gas property costs attributable to the recognition of asset retirement obligations | 576,039 | 66,976 | 65,575 |
Accrued purchases of treasury stock | 170,283 | 0 | 0 |
Previously acquired Company shares swapped by holders to pay stock option exercise price | $ 0 | $ 618,606 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Operating Loss Carryforwards [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Statutory tax rate | 34.00% | ||
Tax loss carryforwards from exercise of options and warrants | $ 24,600,000 | ||
Approximate amount of carryforward depletion | $ 11,600,000 | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
Percentage of carryforward depletion | 65.00% | ||
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Tax loss carryforwards | $ 25,800,000 | ||
Tax loss carryforward from reverse merger | 1,200,000 | ||
Carryforward from reverse merger | 300,000 | ||
Annual amount of carryforward from reverse merger through 2023 | 39,648 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax loss carryforwards | 24,200,000 | ||
Tax loss carryback | 19,000,000 | ||
Louisiana | State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax loss carryforwards | 1,500,000 | ||
Tax Year 2015 | State | |||
Operating Loss Carryforwards [Line Items] | |||
Tax loss carryforwards | 3,800,000 | ||
Settlement with Taxing Authority | Louisiana | State | |||
Operating Loss Carryforwards [Line Items] | |||
Amount of tax refund requested | $ 1,500,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Current: | |||
Federal | $ 1,413,296 | $ 386,018 | $ 857,480 |
State | 608,436 | 161,168 | 659,303 |
Total current income tax provision | 2,021,732 | 547,186 | 1,516,783 |
Deferred: | |||
Federal | 1,282,059 | 1,319,727 | 2,546,495 |
State | 140,430 | 25,085 | (33,517) |
Total deferred income tax provision | 1,422,489 | 1,344,812 | 2,512,978 |
Total income tax provision | $ 3,444,221 | $ 1,891,998 | $ 4,029,761 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory and Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax provision (benefit) computed at the statutory federal rate: | $ 2,868,267 | $ 1,866,366 | $ 3,623,784 |
State income taxes, net of federal tax benefit | 595,708 | 189,081 | 413,019 |
Permanent differences related to stock-based compensation | 0 | (155,817) | 8,933 |
Expiring NOLs related to 2004 reverse merger | 0 | 0 | 600,964 |
Deferred tax asset valuation adjustment | 0 | 0 | (600,964) |
Other permanent differences | (19,754) | (7,632) | (15,975) |
Total income tax provision | $ 3,444,221 | $ 1,891,998 | $ 4,029,761 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Taxes (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Deferred tax assets: | ||||
Non-qualified stock-based compensation | $ 173,647 | $ 134,469 | $ 774,673 | |
Net operating loss carry-forwards | 400,288 | 427,249 | 427,249 | |
AMT credit carry-forward | [1] | 701,254 | 701,254 | 502,466 |
Other | 91,113 | 165,775 | 28,170 | |
Gross deferred tax assets | 1,366,302 | 1,428,747 | 1,732,558 | |
Valuation allowance | (292,446) | (292,446) | (292,446) | |
Total deferred tax assets | 1,073,856 | 1,136,301 | 1,440,112 | |
Deferred tax liability: | ||||
Oil and natural gas properties | (12,233,993) | (10,873,949) | (9,832,948) | |
Total deferred tax liability | (12,233,993) | (10,873,949) | (9,832,948) | |
Net deferred tax liability | (11,160,137) | $ (9,737,648) | $ (8,392,836) | |
AMT credit carry-forward | 901,545 | |||
AMT associated with stock-based compensation | $ 200,291 | |||
[1] | Total AMT credit carry-forward is $901,545. Our net deferred tax liability does not include $200,291 of AMT credit carry-forward associated with the tax benefit related to stock-based compensation. |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Vice President | |||
Related Party Transaction [Line Items] | |||
Related party payments | $ 26,579 | $ 10,113 | $ 10,113 |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | [1] | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | [2] | Dec. 31, 2013 | [3] | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Numerator | ||||||||||||||
Net income attributable to common shareholders | $ 1,719,767 | $ 566,011 | $ 1,071,342 | $ 960,435 | $ 1,441,469 | $ 755,125 | $ (577,459) | $ 1,303,876 | $ 4,317,555 | $ 2,923,011 | $ 5,954,126 | |||
Denominator | ||||||||||||||
Weighted average number of common shares—Basic | 32,817,456 | 30,895,832 | 28,205,467 | |||||||||||
Effect of dilutive securities: | ||||||||||||||
Total weighted average dilutive securities | 106,562 | 1,668,235 | 3,769,664 | |||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,924,018 | 32,564,067 | 31,975,131 | |||||||||||
Net income (loss) per common share - Basic (in dollars per share) | $ 0.05 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.02 | $ (0.02) | $ 0.05 | $ 0.13 | $ 0.09 | $ 0.21 | |||
Net income (loss) per common share - Diluted (in dollars per share) | $ 0.05 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.04 | $ 0.02 | $ (0.02) | $ 0.04 | $ 0.13 | $ 0.09 | $ 0.19 | |||
Contingent restricted stock grants | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||
Weighted average dilutive securities | 4,422 | 0 | 0 | |||||||||||
Common stock warrants issued in connection with equity and financing transactions | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||
Weighted average dilutive securities | 0 | 0 | 878 | |||||||||||
Stock Options and Incentive Warrants | ||||||||||||||
Effect of dilutive securities: | ||||||||||||||
Weighted average dilutive securities | 102,140 | 1,668,235 | 3,768,786 | |||||||||||
[1] | Impacted by the November 1, 2014 reversion of the Company's 23.9% working interest and 19.0% net revenue interest in the Delhi Field. | |||||||||||||
[2] | Includes $608,000 of non-recurring expenses related to the retirement of an officer of the Company. | |||||||||||||
[3] | Reflects a $1.3 million restructuring charge and $0.8 million of non-recurring expenses primarily associated with the exercise of 4.0 million of 4.8 million of previously outstanding stock options and warrants. |
Net Income Per Share - Schedu72
Net Income Per Share - Schedule of Outstanding Potentially Dilutive Securities (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings Per Share [Abstract] | |||
Contingent Restricted Stock grants, Weighted Average Exercise Price (in dollars per share) | $ 0 | ||
Stock Options, Weighted Average Exercise Price (in dollars per share) | 2.50 | $ 2.08 | |
Common stock warrants issued in connection with equity and financing transactions, Weighted Average Exercise Price (in dollars per share) | $ 2.50 | ||
Stock Options and Incentive Warrants, Weighted Average Exercise Price (in dollars per share) | 1.99 | ||
Total, Weighted Average Exercise Price (in dollars per share) | $ 2.09 | $ 1.99 | |
Contingent Restricted Stock grants | 17,961 | ||
Stock Options | 91,061 | 178,061 | |
Common stock warrants issued in connection with equity and financing transactions | 1,165 | ||
Stock Options and Incentive Warrants | 4,822,820 | ||
Total | 109,022 | 4,823,985 |
Unsecured Revolving Credit Ag73
Unsecured Revolving Credit Agreement (Details) - Texas Capital Bank, N.A. | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2012USD ($) | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($) | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 50,000,000 | ||
Current borrowing base | 5,000,000 | $ 5,000,000 | |
Term of debt instrument | 4 years | ||
Percentage of oil and gas properties as borrowing limitation | 25.00% | ||
Unused commitment fee percentage | 0.50% | ||
Loan costs incurred upon closing | 50,000 | ||
Outstanding borrowings | $ 0 | $ 0 | |
Debt issuance costs | 179,468 | ||
Unamortized debt issuance costs | 32,411 | ||
Revolving Credit Facility | Other Assets | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 157,610 | ||
Letter of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,000,000 | ||
Commitment fee percentage | 3.50% | ||
Outstanding borrowings | $ 0 | $ 0 | |
LIBOR | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Adjusted LIBOR | ||
Interest Period One Term | 1 month | ||
Interest Period Two Term | 2 months | ||
Interest Period Three Term | 3 months | ||
Interest Period Four Term | 6 months | ||
Interest Period Payment Term | 3 months | ||
Prime Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Lender's prime rate | ||
Federal Funds Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Description of variable rate basis | Federal Fund Rate | ||
Basis spread on variable rate | 0.50% | ||
Maximum | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Current ratio | 1.5 | ||
Consolidated leverage ratio | 2.5 | ||
Interest coverage ratio | 3 | ||
Maximum | Letter of Credit | |||
Debt Instrument [Line Items] | |||
Term of debt instrument | 1 year | ||
Maximum | LIBOR | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Number of loans outstanding | loan | 3 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Commitments (Details) | Jun. 30, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 159,011 |
2,017 | 13,251 |
Total | $ 172,262 |
Commitments and Contingencies75
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | ||||
Jun. 30, 2015USD ($)senior_executive | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | Feb. 26, 2015USD ($) | Jan. 26, 2015 | |
Loss Contingencies [Line Items] | |||||
Overriding royalty interest in the Delhi Unit | 4.8119% | ||||
Rent expense | $ 175,103 | $ 174,229 | $ 147,233 | ||
Employment Contracts | |||||
Loss Contingencies [Line Items] | |||||
Number of senior executives under agreement | senior_executive | 2 | ||||
Total contingent obligations | $ 473,000 | ||||
Minimum | Employment Contracts | |||||
Loss Contingencies [Line Items] | |||||
Period of benefits to employee after termination | 6 months | ||||
Maximum | Employment Contracts | |||||
Loss Contingencies [Line Items] | |||||
Period of benefits to employee after termination | 1 year | ||||
Denbury Resources, Inc | |||||
Loss Contingencies [Line Items] | |||||
Suspended overriding royalty revenue interest | 2.89155% | ||||
Suspended overriding royalty interest, amount previously suspended | $ 712,000 |
Concentrations of Credit Risk -
Concentrations of Credit Risk - Schedule of Credit Risk (Details) - Net revenue - Major Customers | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Concentrations of Credit Risk | |||
Percent of Total Revenue | 100.00% | 100.00% | 100.00% |
Plains Marketing L.P. (includes Delhi production) | |||
Concentrations of Credit Risk | |||
Percent of Total Revenue | 99.00% | 96.00% | 90.00% |
Enterprise Crude Oil LLC | |||
Concentrations of Credit Risk | |||
Percent of Total Revenue | 0.00% | 2.00% | 4.00% |
Flint Hills | |||
Concentrations of Credit Risk | |||
Percent of Total Revenue | 0.00% | 1.00% | 2.00% |
ETC Texas Pipeline, LTD. | |||
Concentrations of Credit Risk | |||
Percent of Total Revenue | 0.00% | 1.00% | 0.00% |
All others | |||
Concentrations of Credit Risk | |||
Percent of Total Revenue | 1.00% | 0.00% | 4.00% |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employer match of employee contributions of first 6% of eligible compensation (as a percent) | 100.00% | ||
Percentage of eligible compensation, matched 100% by employer | 6.00% | ||
Matching contribution to the plan | $ 85,676 | $ 116,873 | $ 89,810 |
Derivatives (Details)
Derivatives (Details) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2015USD ($) | Jul. 31, 2015USD ($) | Jun. 30, 2015USD ($)$ / bblbbl | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Derivative [Line Items] | |||||
Net liability | $ 109,974 | ||||
Gain (loss) on derivatives, net | $ (109,974) | $ 0 | $ 0 | ||
Crude Oil | Options | |||||
Derivative [Line Items] | |||||
Volumes (in Bbls./day) | bbl | 1,100 | ||||
Weighted Average Floor Price per Bbl. | $ / bbl | 55 | ||||
Weighted Average Ceiling Price per Bbl. | $ / bbl | 64.05 | ||||
Weighted Average Put Spread per Bbl. | $ / bbl | 9.05 | ||||
Crude Oil | Options | Subsequent Event | |||||
Derivative [Line Items] | |||||
Gain on derivatives | $ 412,985 | $ 138,787 | |||
Cargill, Incorporated | Line of Credit | |||||
Derivative [Line Items] | |||||
Credit line | $ 5,000,000 |
Fair Value Measurement - Assets
Fair Value Measurement - Assets and Liabilities Measured on Recurring Basis (Details) - Level 2 | Jun. 30, 2015USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Current derivative assets, Gross Amounts Recognized | $ 355,555 |
Current derivative assets, Gross Amounts Offset in the Consolidated Balance Sheet | (355,555) |
Current derivative assets, Net Amounts Presented in the Consolidated Balance Sheets | 0 |
Current derivative liabilities, Gross Amounts Recognized | (465,529) |
Current derivative liabilities, Gross Amounts Offset in the Consolidated Balance Sheet | 355,555 |
Current derivative liabilities, Net Amounts Presented in the Consolidated Balance Sheets | (109,974) |
Total, Gross Amounts Recognized | (109,974) |
Total, Gross Amounts Offset in the Consolidated Balance Sheet | 0 |
Total, Net Amounts Presented in the Consolidated Balance Sheets | $ (109,974) |
Supplemental Disclosures abou80
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Schedule of Costs Incurred and Capitalized in Oil and Natural Gas Property Acquisition, Exploration, and Development (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property acquisition costs: | |||
Proved property | $ 0 | $ 0 | $ 26,449 |
Unproved property | 0 | 47,344 | 195,599 |
Exploration costs | 0 | 757,423 | 4,356,640 |
Development costs | 10,975,637 | 18,566 | 79,035 |
Total costs incurred for oil and natural gas activities | $ 10,975,637 | $ 823,333 | $ 4,657,723 |
Supplemental Disclosures abou81
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Estimated Quantities of Proved Oil and Natural Gas Reserves (Details) | 12 Months Ended | |||||||
Jun. 30, 2015BoeMcfbbl | Jun. 30, 2014BoeMcfbbl | Jun. 30, 2013BoeMcfbbl | Jun. 30, 2012BoeMcfbbl | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Balance at the beginning of the period (in BOE) | Boe | 13,289,510 | 13,766,440 | 13,441,116 | |||||
Revisions of previous estimates (in BOE) | Boe | (390,330) | [1] | (247,350) | [2] | 2,806,181 | [3] | ||
Improved recovery, extensions and discoveries (in BOE) | Boe | 0 | 132,884 | ||||||
Sales of minerals in place (in BOE) | Boe | 0 | (184,722) | (2,254,038) | |||||
Production (sales volumes) (in BOE) | Boe | (452,786) | (177,742) | (226,819) | |||||
Balance at the end of the period (in BOE) | Boe | 12,446,394 | 13,289,510 | 13,766,440 | |||||
Proved developed reserves (in BOE) | Boe | 7,349,626 | 7,970,562 | 10,089,861 | 8,032,809 | ||||
Proved undeveloped reserves (in BOE) | Boe | 5,096,768 | 5,318,948 | 3,676,579 | 5,408,307 | ||||
Delhi Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Positive revision of previous estimate (in BOE) | Boe | 1,679,481 | |||||||
Crude Oil | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Balance at the beginning of the period (in Bbls/Mcf) | 10,526,344 | 12,782,755 | 11,638,618 | |||||
Revisions of previous estimates (in Bbls/Mcf) | (64,074) | [1] | (1,919,052) | [2] | 1,826,053 | [3] | ||
Improved recovery, extensions and discoveries (in Bbls/Mcf) | 0 | 17,146 | ||||||
Sales of minerals in place (in Bbls/Mcf) | 0 | (184,722) | (485,536) | |||||
Production (sales volumes) (in Bbls/Mcf) | (450,294) | (169,783) | (196,380) | |||||
Balance at the end of the period (in Bbls/Mcf) | 10,011,976 | 10,526,344 | 12,782,755 | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Proved developed reserves (in Bbls/Mcf) | 7,347,231 | 7,858,224 | 10,077,522 | 7,670,934 | ||||
Proved undeveloped reserves (in Bbls/Mcf) | 2,664,745 | 2,668,120 | 2,705,233 | 3,967,684 | ||||
Crude Oil | Delhi Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revisions of previous estimates (in Bbls/Mcf) | 1,817,224 | |||||||
Natural Gas Liquids | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Balance at the beginning of the period (in Bbls/Mcf) | 2,278,688 | 979,885 | 492,473 | |||||
Revisions of previous estimates (in Bbls/Mcf) | 156,195 | [1] | 1,269,588 | [2] | 975,515 | [3] | ||
Improved recovery, extensions and discoveries (in Bbls/Mcf) | 0 | 32,731 | ||||||
Sales of minerals in place (in Bbls/Mcf) | 0 | 0 | (480,832) | |||||
Production (sales volumes) (in Bbls/Mcf) | (1,288) | (3,516) | (7,271) | |||||
Balance at the end of the period (in Bbls/Mcf) | 2,433,595 | 2,278,688 | 979,885 | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Proved developed reserves (in Bbls/Mcf) | 1,572 | 32,164 | 8,539 | 111,978 | ||||
Proved undeveloped reserves (in Bbls/Mcf) | 2,432,023 | 2,246,524 | 971,346 | 380,495 | ||||
Revision due to improved design (in Bbls/Mcf) | [1] | 185,499 | ||||||
Natural Gas Liquids | Delhi Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revision due to improved design (in Bbls/Mcf) | 1,275,178 | |||||||
Natural Gas Liquids | Giddings Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revisions of previous estimates (in Bbls/Mcf) | [1] | (29,304) | ||||||
Natural Gas | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Balance at the beginning of the period (in Bbls/Mcf) | Mcf | 2,906,863 | 22,797 | 7,860,156 | |||||
Revisions of previous estimates (in Bbls/Mcf) | Mcf | (2,894,703) | [1] | 2,412,677 | [2] | 27,679 | [3] | ||
Improved recovery, extensions and discoveries (in Bbls/Mcf) | Mcf | 0 | 498,044 | ||||||
Sales of minerals in place (in Bbls/Mcf) | Mcf | 0 | 0 | (7,726,032) | |||||
Production (sales volumes) (in Bbls/Mcf) | Mcf | (7,221) | (26,655) | (139,006) | |||||
Balance at the end of the period (in Bbls/Mcf) | Mcf | 4,939 | 2,906,863 | 22,797 | |||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Proved developed reserves (in Bbls/Mcf) | Mcf | 4,939 | 481,042 | 22,797 | 1,499,382 | ||||
Proved undeveloped reserves (in Bbls/Mcf) | Mcf | 0 | 2,425,821 | 0 | 6,360,774 | ||||
Natural Gas | Delhi Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revisions of previous estimates (in Bbls/Mcf) | Mcf | [1] | (2,246,524) | ||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revision due to improved design (in Bbls/Mcf) | Mcf | 2,425,821 | |||||||
Natural Gas | Giddings Field | ||||||||
Estimated quantities of proved oil and natural gas reserves and changes in quantities of proved developed and undeveloped reserves | ||||||||
Revisions of previous estimates (in Bbls/Mcf) | Mcf | [1] | (452,786) | ||||||
[1] | The 2,894,703 negative fiscal 2015 revision for natural gas primarily reflects a 2,246,524 MCF negative revision for the Delhi Field gas plant together with a 452,786 MCF negative revision at the Giddings Field for a well that was lost due to excessive formation solids that kept interfering with pumping. The gas plant revision resulted from a decision during the current fiscal year to use the methane production internally to reduce field operating costs rather than selling it into the market. The 156,195 BBL positive natural gas liquids revision primarily reflects 185,499 BBL positive revision for better recovery from the redesigned gas plant, partly offset by a 29,304 BBL negative revision due to the lost Giddings well. | |||||||
[2] | Significant reserve revisions occurred in the Delhi Field during fiscal 2014. As a result of an adverse fluid release event in the Field, 1,817,224 BBLs of oil reserves were reclassified from proved to probable category based on the operator's decision to defer CO2 injections in certain parts of the Field. There was a positive revision of 1,679,481 BOE, which was comprised of 1,275,178 BBLs of natural gas liquids and 2,425,821 MCF of natural gas as a result of an improved design for the gas plant in the Delhi Field. The plant is expected to significantly increase recoveries of these products, particularly natural gas, which was not previously planned to be extracted from the injection volumes. | |||||||
[3] | A significant upward reserve revision occurred in the Delhi Field during fiscal 2013 as a result of (1) revised geological maps based on production results and acquired seismic data, (2) inclusion of an additional reservoir with similar features, production history and suitability for EOR, and (3) inclusion of natural gas processing at Delhi. |
Supplemental Disclosures abou82
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Standardized Measure of Discounted Future Net Cash Flows Related to Proved Oil and Natural Gas Reserves (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Standardized measure of discounted future net cash flows | ||||
Future cash inflows | $ 807,030,282 | $ 1,193,515,075 | $ 1,436,980,607 | |
Future production costs and severance taxes | (309,225,333) | (475,387,931) | (510,902,614) | |
Future development costs | (49,691,006) | (46,154,178) | (60,742,406) | |
Future income tax expenses | (123,888,665) | (195,581,510) | (275,113,560) | |
Future net cash flows | 324,225,278 | 476,391,456 | 590,222,027 | |
10% annual discount for estimated timing of cash flows | (165,028,739) | (250,313,784) | (283,001,328) | |
Standardized measure of discounted future net cash flows | $ 159,196,539 | $ 226,077,672 | $ 307,220,699 | $ 283,597,493 |
Supplemental Disclosures abou83
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Schedule of NYMEX Prices Used in Determining Future Cash Flows (Details) | 12 Months Ended | ||
Jun. 30, 2015$ / bbl$ / MMBtu | Jun. 30, 2014$ / bbl$ / MMBtu | Jun. 30, 2013$ / bbl$ / MMBtu | |
Oil (per barrel) | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Commodity Prices Used in Determining Future Cash Flows | $ / bbl | 71.88 | 100.37 | 91.51 |
Gas (per million BTU) | |||
Average Sales Price and Production Costs Per Unit of Production [Line Items] | |||
Commodity Prices Used in Determining Future Cash Flows | 3.44 | 4.10 | 3.44 |
- Roll Forward of Changes in St
- Roll Forward of Changes in Standardized Measure of Discount Future Cash Flows on Proved Crude Oil, Natural Gas Liquids, and Natural Gas Reserves (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | ||
Changes in the standardized measure of discounted future net cash flows applicable to proved crude oil, natural gas liquids, and natural gas reserves | ||||
Balance, beginning of year | $ 226,077,672 | $ 307,220,699 | $ 283,597,493 | |
Net changes in sales prices and production costs related to future production | (88,043,095) | (73,439,526) | (35,184,725) | |
Changes in estimated future development costs | (9,585,405) | 9,848,614 | (566,125) | |
Sales of oil and gas produced during the period, net of production costs | (18,538,016) | (16,479,934) | (19,569,182) | |
Net change due to extensions, discoveries, and improved recovery | 0 | 775,574 | 0 | |
Net change due to revisions in quantity estimates | (9,391,321) | (23,757,788) | 64,817,544 | |
Net change due to sales of minerals in place | 0 | (3,150,277) | (34,119,027) | |
Development costs incurred during the period | 7,785,095 | 0 | 747,656 | |
Accretion of discount | 31,974,540 | 45,896,187 | 41,678,733 | |
Net change in discounted income taxes | 34,157,767 | 58,073,450 | 10,175,957 | |
Net changes in timing of production and other | [1] | (15,240,698) | (78,909,327) | (4,357,625) |
Balance, end of year | $ 159,196,539 | $ 226,077,672 | $ 307,220,699 | |
[1] | Due to the June 2013 adverse fluid release event in the Delhi Field, the operator had expressed plans to produce the Delhi Field at lower production rates. The decision to produce these reserves at lower rates over a longer period of time did not materially change the total quantities expected to be recovered, but resulted in a significant reduction in the discounted value of these reserves as of June 30, 2014. |
Supplemental Disclosures abou85
Supplemental Disclosures about Oil and Natural Gas Producing Properties (unaudited) - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Reserve Quantities [Line Items] | |||
Oil and natural gas property costs attributable to the recognition of asset retirement obligations | $ 576,039 | $ 66,976 | $ 65,575 |
Period Considered for Unweighted Arithmetic Average for Determining Reserve Volumes and Values | 12 months | ||
Period Considered for Determining Unweighted Arithmetic Average of First Day of Month, Commodity Prices | 12 months |
Selected Quarterly Financial 86
Selected Quarterly Financial Data (Unaudited) - Summary of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |||||||
Revenues | $ 9,063,682 | $ 7,064,689 | $ 7,708,067 | [1] | $ 4,004,827 | $ 4,310,514 | $ 4,337,006 | [2] | $ 4,392,289 | [3] | $ 4,633,699 | $ 27,841,265 | $ 17,673,508 | $ 21,349,920 | |||
Operating income | 3,334,547 | 1,245,990 | 2,162,294 | [1] | 1,840,866 | 2,364,811 | 1,357,534 | [2] | (158,095) | [3] | 1,963,897 | 8,583,697 | 5,528,147 | 10,701,354 | |||
Net income available to common shareholders | $ 1,719,767 | $ 566,011 | $ 1,071,342 | [1] | $ 960,435 | $ 1,441,469 | $ 755,125 | [2] | $ (577,459) | [3] | $ 1,303,876 | $ 4,317,555 | $ 2,923,011 | $ 5,954,126 | |||
Basic net income per share (in dollars per share) | $ 0.05 | $ 0.02 | $ 0.03 | [1] | $ 0.03 | $ 0.04 | $ 0.02 | [2] | $ (0.02) | [3] | $ 0.05 | $ 0.13 | $ 0.09 | $ 0.21 | |||
Diluted net income per share (in dollars per share) | $ 0.05 | $ 0.02 | $ 0.03 | [1] | $ 0.03 | $ 0.04 | $ 0.02 | [2] | $ (0.02) | [3] | $ 0.04 | $ 0.13 | $ 0.09 | $ 0.19 | |||
Restructuring charges | $ 1,300,000 | $ (5,431) | [4] | $ 1,293,186 | [4] | $ 0 | [4] | ||||||||||
Non-cash stock-based compensation expense | $ 800,000 | ||||||||||||||||
Options and Incentive Warrants, Exercises (in shares) | 4 | ||||||||||||||||
Options and Incentive Warrants outstanding (in shares) | 4.8 | ||||||||||||||||
Officer | |||||||||||||||||
Non-recurring expense related to retirement of officer | $ 608,000 | ||||||||||||||||
Delhi Field | |||||||||||||||||
Revenues | $ 27,573,641 | $ 16,908,666 | $ 19,219,036 | ||||||||||||||
Working interest | 23.90% | ||||||||||||||||
Net revenue interest | 19.00% | ||||||||||||||||
[1] | Impacted by the November 1, 2014 reversion of the Company's 23.9% working interest and 19.0% net revenue interest in the Delhi Field. | ||||||||||||||||
[2] | Includes $608,000 of non-recurring expenses related to the retirement of an officer of the Company. | ||||||||||||||||
[3] | Reflects a $1.3 million restructuring charge and $0.8 million of non-recurring expenses primarily associated with the exercise of 4.0 million of 4.8 million of previously outstanding stock options and warrants. | ||||||||||||||||
[4] | Restructuring charges for the year ended June 30, 2014 included non-cash stock-based compensation expense of $376,365. |