Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'EVOLUTION PETROLEUM CORP | ' |
Entity Central Index Key | '0001006655 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 28,599,669 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Current assets | ' | ' |
Cash and cash equivalents | $25,677,097 | $24,928,585 |
Certificates of deposit | 250,000 | 250,000 |
Receivables | ' | ' |
Oil and natural gas sales | 1,621,720 | 1,632,853 |
Income taxes | 281,970 | 281,970 |
Joint interest partner | 21,784 | 49,063 |
Other | ' | 918 |
Deferred tax asset | 26,133 | 26,133 |
Prepaid expenses and other current assets | 212,606 | 266,554 |
Total current assets | 28,091,310 | 27,436,076 |
Property and equipment, net of depreciation, depletion, and amortization | ' | ' |
Oil and natural gas properties - full-cost method of accounting, of which $4,161,816 and $4,112,704 at September 30, 2013 and June 30, 2013, respectively, were excluded from amortization | 38,923,477 | 38,789,032 |
Other property and equipment | 45,531 | 52,217 |
Total property and equipment | 38,969,008 | 38,841,249 |
Advances to joint interest operating partner | 46,364 | 26,059 |
Other assets | 243,377 | 252,912 |
Total assets | 67,350,059 | 66,556,296 |
Current liabilities | ' | ' |
Accounts payable | 279,566 | 642,018 |
Due to joint interest partner | 100,347 | 127,081 |
Accrued compensation | 392,474 | 1,385,494 |
Royalties payable | 131,457 | 91,427 |
Income taxes payable | 638,225 | 233,548 |
Other current liabilities | 663,488 | 153,182 |
Total current liabilities | 2,205,557 | 2,632,750 |
Long term liabilities | ' | ' |
Deferred income taxes | 8,491,364 | 8,418,969 |
Asset retirement obligations | 201,416 | 615,551 |
Deferred rent | 48,579 | 52,865 |
Total liabilities | 10,946,916 | 11,720,135 |
Commitments and contingencies (Note 11) | ' | ' |
Stockholders' equity | ' | ' |
Common stock; par value $0.001; 100,000,000 shares authorized: issued 28,599,669 shares at September 30, 2013, and 29,410,858 at June 30, 2013; outstanding 28,599,669 shares and 28,608,969 shares as of September 30, 2013 and June 30, 2013, respectively | 28,599 | 29,410 |
Additional paid-in capital | 31,057,316 | 31,813,239 |
Retained earnings | 25,316,911 | 24,013,035 |
Stockholders equity before treasury stock | 56,403,143 | 55,856,001 |
Treasury stock, at cost, no shares and 801,889 shares as of September 30, 2013 and June 30, 2013, respectively | ' | -1,019,840 |
Total stockholders' equity | 56,403,143 | 54,836,161 |
Total liabilities and stockholders' equity | 67,350,059 | 66,556,296 |
Series A Cumulative Preferred Stock | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, par value $0.001; 5,000,000 shares authorized:8.5% Series A Cumulative Preferred Stock, 1,000,000 shares authorized, 317,319 shares issued and outstanding at September 30, 2013, and June 30, 2013 with a liquidation preference of $7,932,975 ($25.00 per share) | $317 | $317 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Jun. 30, 2013 | |
Oil and natural gas properties, excluded from amortization (in dollars) | $4,161,816 | $4,112,704 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, issued shares | 28,599,669 | 29,410,858 |
Common stock, outstanding shares | 28,599,669 | 28,608,969 |
Treasury stock, shares | 0 | 801,889 |
Series A Cumulative Preferred Stock | ' | ' |
Cumulative Preferred Stock (as a percent) | 8.50% | 8.50% |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
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_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | |||
Revenues | ' | ' | ||
Crude oil | $4,591,377 | $4,005,422 | ||
Natural gas liquids | 24,146 | 119,611 | ||
Natural gas | 18,176 | 166,513 | ||
Total revenues | 4,633,699 | 4,291,546 | ||
Operating Costs | ' | ' | ||
Lease operating expenses | 409,847 | 316,169 | ||
Production taxes | 8,403 | 21,373 | ||
Depreciation, depletion and amortization | 309,673 | 296,917 | ||
Accretion of discount on asset retirement obligations | 12,928 | 21,107 | ||
General and administrative expenses | 1,928,951 | [1] | 1,705,424 | [1] |
Total operating costs | 2,669,802 | 2,360,990 | ||
Income from operations | 1,963,897 | 1,930,556 | ||
Other | ' | ' | ||
Interest income | 7,703 | 5,616 | ||
Interest (expense) | -16,513 | -16,428 | ||
Other income (expense) | -8,810 | -10,812 | ||
Income before income taxes | 1,955,087 | 1,919,744 | ||
Income tax provision | 482,636 | 760,218 | ||
Net Income | 1,472,451 | 1,159,526 | ||
Dividends on Preferred Stock | 168,575 | 168,575 | ||
Net income available to common shareholders | $1,303,876 | $990,951 | ||
Basic (in dollars per share) | $0.05 | $0.04 | ||
Diluted (in dollars per share) | $0.04 | $0.03 | ||
Weighted average number of common shares | ' | ' | ||
Basic (in shares) | 28,607,320 | 27,938,297 | ||
Diluted (in shares) | 32,211,265 | 31,763,488 | ||
[1] | General and administrative expenses for the three months ended September 30, 2013 and 2012 included non-cash stock-based compensation expense of $373,438 and $353,790, respectively. |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Consolidated Condensed Statements of Operations | ' | ' |
General and administrative expenses, non-cash stock-based compensation expense | $373,438 | $353,790 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net Income | $1,472,451 | $1,159,526 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation, depletion and amortization | 319,885 | 307,129 |
Stock-based compensation | 373,438 | 353,790 |
Accretion of discount on asset retirement obligations | 12,928 | 21,107 |
Settlements of asset retirement obligations | ' | -22,211 |
Deferred income taxes | 72,395 | 599,052 |
Deferred rent | -4,286 | -4,287 |
Changes in operating assets and liabilities: | ' | ' |
Receivables from oil and natural gas sales | 11,133 | -273,168 |
Receivables from income taxes and other | 918 | ' |
Due to/from joint interest partner | -14,614 | -49,344 |
Prepaid expenses and other current assets | 53,948 | 56,630 |
Accounts payable and accrued expenses | -1,186,110 | -637,799 |
Royalties payable | 40,030 | -51,810 |
Income taxes payable | 404,677 | 161,166 |
Net cash provided by operating activities | 1,556,793 | 1,619,781 |
Cash flows from investing activities | ' | ' |
Proceeds from asset sales | 66,753 | ' |
Acquisitions of oil and natural gas properties | -50,154 | -743,720 |
Development of oil and natural gas properties | -544,060 | -1,868,892 |
Advances to joint venture operating partner | ' | -101,790 |
Other assets | -1,913 | -14,684 |
Net cash used in investing activities | -529,374 | -2,729,086 |
Cash flows from financing activities | ' | ' |
Preferred stock dividends paid | -168,575 | -168,575 |
Purchases of treasury stock | -117,182 | ' |
Recovery of short swing profits | 6,850 | ' |
Deferred loan costs | ' | -16,211 |
Net cash used in financing activities | -278,907 | -184,786 |
Net increase (decrease) in cash and cash equivalents | 748,512 | -1,294,091 |
Cash and cash equivalents, beginning of period | 24,928,585 | 14,428,548 |
Cash and cash equivalents, end of period | 25,677,097 | 13,134,457 |
Non-cash transactions: | ' | ' |
Change in accounts payable used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties | -131,290 | 124,372 |
Change in due to joint interest partner used to acquire oil and natural gas leasehold interests and develop oil and natural gas properties | -5,146 | -646,932 |
Oil and natural gas properties incurred through recognition of asset retirement obligations | $45,172 | $8,558 |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statement of Changes in Stockholders' Equity (USD $) | Total | Preferred | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
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 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | 373,438 | ' | ' | 373,438 | ' | ' |
Exercise of stock warrants | ' | ' | 1 | -1 | ' | ' |
Exercise of stock warrants (in shares) | ' | ' | 922 | ' | ' | ' |
Purchases of treasury stock | -117,182 | ' | ' | ' | ' | -117,182 |
Purchases of treasury stock (in shares) | ' | ' | -10,222 | ' | ' | ' |
Retirements of treasury stock | ' | ' | -812 | -1,136,210 | ' | 1,137,022 |
Recovery of short swing profits | 6,850 | ' | ' | 6,850 | ' | ' |
Net income | 1,472,451 | ' | ' | ' | 1,472,451 | ' |
Preferred Stock dividends | -168,575 | ' | ' | ' | -168,575 | ' |
Balance at Sep. 30, 2013 | $56,403,143 | $317 | $28,599 | $31,057,316 | $25,316,911 | ' |
Balance (in shares) at Sep. 30, 2013 | ' | 317,319 | 28,599,669 | ' | ' | ' |
Organization_and_Basis_of_Prep
Organization and Basis of Preparation | 3 Months Ended |
Sep. 30, 2013 | |
Organization and Basis of Preparation | ' |
Organization and Basis of Preparation | ' |
Note 1—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 acquisition, exploitation and development of properties for the production of crude oil and natural gas. We acquire properties with known oil and natural gas resources and exploit them through the application of conventional and specialized technology to increase production, ultimate recoveries, or both. | |
Interim Financial Statements. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. All adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been included. The interim financial information and notes hereto should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K for the fiscal year ended June 30, 2013, as filed with the SEC. The results of operations for interim periods are not necessarily indicative of results to be expected for a full fiscal year. | |
Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries: NGS Sub Corp and its wholly owned subsidiary, Tertiaire Resources Company, NGS Technologies, Inc., Evolution Operating Co., Inc. and Evolution Petroleum OK, Inc. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous period may include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported loss or stockholders’ equity. | |
Use of Estimates. The preparation of financial statements in conformity with 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. | |
Recent Accounting Pronouncements. | |
Income Taxes. In July 2013 the FASB has issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This ASU applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. U.S. GAAP does not include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this ASU state that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance is not expected to have a material impact on our financial position, cash flows, or results of operations. | |
Property_and_Equipment
Property and Equipment | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ' | |||||||
Note 2 —Property and Equipment | ||||||||
As of September 30, 2013 and June 30, 2013 our oil and natural gas properties and other property and equipment consisted of the following: | ||||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Oil and natural gas properties | ||||||||
Property costs subject to amortization | $ | 43,159,269 | $ | 42,772,184 | ||||
Less: Accumulated depreciation, depletion, and amortization | (8,397,608 | ) | (8,095,856 | ) | ||||
Unproved properties not subject to amortization | 4,161,816 | 4,112,704 | ||||||
Oil and natural gas properties, net | $ | 38,923,477 | $ | 38,789,032 | ||||
Other property and equipment | ||||||||
Furniture, fixtures and office equipment, at cost | 322,514 | 322,514 | ||||||
Less: Accumulated depreciation | (276,983 | ) | (270,297 | ) | ||||
Other property and equipment, net | $ | 45,531 | $ | 52,217 | ||||
An unproved property not subject to amortization consists of unevaluated acreage of $4.2 million and $4.1 million as of September 30, 2013 and June 30, 2013, respectively, for our properties in the Mississippi Lime in Oklahoma. Our evaluation of impairment of unproved properties occurs, at a minimum, on a quarterly basis. Based on this evaluation there were no impaired properties for the three months ended September 30, 2013 and 2012. | ||||||||
Joint_Interest_Agreement
Joint Interest Agreement | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Joint Interest Agreement | ' | |||||||
Joint Interest Agreement | ' | |||||||
Note 3—Joint Interest Agreement | ||||||||
Effective April 17, 2012, a wholly owned subsidiary of the Company entered into definitive agreements with Orion Exploration Partners, LLC (“Orion”) to acquire and develop interests in oil and gas leases, associated surface rights and related assets located in the Mississippian Lime formation in Kay County in North Central Oklahoma. Our participation in this joint venture is reflected on our September 30, 2013 and June 30, 2013 balance sheets by the items below. | ||||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Advances to joint interest operating partner | $ | 46,364 | $ | 26,059 | ||||
Due to joint interest partner | 100,347 | 127,081 | ||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Asset Retirement Obligations | ' | |||||||
Note 4—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 are reconciliations of the beginning and ending asset retirement obligation balances: | ||||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Asset retirement obligations — beginning of period | $ | 615,551 | $ | 968,677 | ||||
Liabilities sold | — | (439,927 | ) | |||||
Liabilities incurred | — | 60,143 | ||||||
Liabilities settled | — | (51,086 | ) | |||||
Accretion of discount | 12,928 | 72,312 | ||||||
Revision of previous estimates | 45,172 | 5,432 | ||||||
Asset retirement obligations due within one year included in “Other current liabilities” | (472,235 | ) | — | |||||
Asset retirement obligations — end of period | $ | 201,416 | $ | 615,551 | ||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity | ' |
Stockholders' Equity | ' |
Note 5 — Stockholders’ Equity | |
Common Stock | |
During July 2013 the Company retired 801,889 shares of treasury stock thereby reducing the number of common shares issued and not outstanding. | |
In July 2013 we issued Laird Cagan, a Director of the Company, 922 shares of common stock through a cashless exercise of placement warrant. The placement warrant, which was issued to Mr. Cagan on June 22, 2006 in connection with a financing transaction, gave him the right to purchase 1,165 shares of common stock with an exercise price of $2.25 per share. | |
During August and September 2013, the Company received a total of 10,222 shares of common stock from certain officers and employees of the Company to pay for their payroll tax liabilities arising from recent vestings of restricted stock. The weighted average acquisition cost of $11.46 per share reflects the market price of the Company’s shares at the date vested. The 10,222 treasury shares were then retired. | |
Recovery of Stockholder Short Swing Profit | |
In September 2013, an executive officer of the Company paid $6,850 to the Company, representing the disgorgement of short swing profits under Section 16(b) under the Exchange Act. The amount was recorded as additional paid-in capital. | |
Series A Cumulative Perpetual Preferred Stock | |
At September 30, 2013, there were 317,319 shares of the Company’s 8.5% Series A Cumulative (perpetual) Preferred Stock outstanding. The Series A Cumulative Preferred Stock has a liquidation preference of $25.00 per share and cannot be converted into our common stock. There are no sinking fund or redemption rights available to holders thereof. Optional redemption can only be made by us on or after July 1, 2014 for the stated liquidation value of $25.00 per share plus accrued dividends, or earlier by an acquirer under a change of control at a redemption price of $25.25 per share. 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. | |
During the three months ended September 30, 2013 and 2012, we paid dividends of $168,575 and $168,575, respectively, to holders of our Series A Preferred Stock. | |
StockBased_Incentive_Plan
Stock-Based Incentive Plan | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-Based Incentive Plan | ' | |||||||||||
Stock-Based Incentive Plan | ' | |||||||||||
Note 6—Stock-Based Incentive Plan | ||||||||||||
We may grant option awards to purchase common stock (the “Stock Options”), restricted common stock awards (“Restricted Stock”), and unrestricted fully vested common stock, to employees, directors, and consultants of the Company and its subsidiaries under the Natural Gas Systems Inc. 2003 Stock Plan (the “2003 Stock Plan”) and the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the “2004 Stock Plan” or together, the “EPM Stock Plans”). Option awards for the purchase of 600,000 shares of common stock were issued under the 2003 Stock Plan. The 2004 Stock Plan authorized the issuance of 6,500,000 shares of common stock. No shares are available for grant under the 2003 Stock Plan and 800,914 shares remain available for grant under the 2004 Stock Plan as of September 30, 2013. | ||||||||||||
We have also granted common stock warrants, as authorized by the Board of Directors, to employees in lieu of cash bonuses or as incentive awards to reward previous service or provide incentives to individuals to acquire a proprietary interest in the Company’s success and to remain in the service of the Company (the “Incentive Warrants”). These Incentive Warrants have similar characteristics of the Stock Options. A total of 1,037,500 Incentive Warrants have been issued, with Board of Directors approval, outside of the EPM Stock Plans. We have not issued Incentive Warrants since the listing of our shares on the NYSE MKT (formerly, the American Stock Exchange) in July 2006. | ||||||||||||
Stock Options and Incentive Warrants | ||||||||||||
Stock-based compensation expense related to Stock Options and Incentive Warrants for the three months ended September 30, 2013 and the corresponding prior year period was $0 and $26,274, respectively. | ||||||||||||
No Stock Options or Incentive Warrants have been granted since August 2008. | ||||||||||||
The following summary presents information regarding outstanding Stock Options and Incentive Warrants as of September 30, 2013, and the changes during the fiscal year: | ||||||||||||
Number of Stock | Weighted Average | Aggregate | Weighted | |||||||||
Options | Exercise Price | Intrinsic Value | Average | |||||||||
and Incentive | -1 | Remaining | ||||||||||
Warrants | Contractual | |||||||||||
Term (in | ||||||||||||
years) | ||||||||||||
Stock Options and Incentive Warrants outstanding at July 1, 2013 | 4,822,820 | $ | 1.99 | |||||||||
Granted | — | — | ||||||||||
Exercised | — | — | ||||||||||
Cancelled or forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Stock Options and Incentive Warrants outstanding at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
Vested or expected to vest at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
Exercisable at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($11.26 as of September 30, 2013) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants. | ||||||||||||
During the three months ended September 30, 2012 there were 18,922 Stock Options and Incentive Warrants that vested with a total grant date fair value of $46,359 and no unvested Stock Options and Incentive Warrants remained. | ||||||||||||
As of August 31, 2012 all compensation costs attributable to Stock Options and Incentive Warrants had been recognized. | ||||||||||||
Restricted Stock | ||||||||||||
Stock-based compensation expense related to Restricted Stock grants for the three months ended September 30, 2013 and 2012 was $373,438 and $327,516, respectively. | ||||||||||||
The following table sets forth the Restricted Stock transactions for the three months ended September 30, 2013: | ||||||||||||
Number of | Weighted | |||||||||||
Restricted | Average | |||||||||||
Shares | Grant-Date | |||||||||||
Fair Value | ||||||||||||
Unvested at July 1, 2013 | 386,599 | $ | 6.65 | |||||||||
Granted | — | — | ||||||||||
Vested | (61,345 | ) | 5.01 | |||||||||
Forfeited | — | — | ||||||||||
Unvested at September 30, 2013 | 325,254 | $ | 6.96 | |||||||||
At September 30, 2013, unrecognized stock compensation expense related to Restricted Stock grants totaled $1,905,882. Such unrecognized expense will be recognized over a weighted average period of 2.1 years. | ||||||||||||
Fair_Value_Measurement
Fair Value Measurement | 3 Months Ended |
Sep. 30, 2013 | |
Fair Value Measurement | ' |
Fair Value Measurement | ' |
Note 7—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 Financial Instruments. The Company’s other financial instruments consist of cash and cash equivalents, certificates of deposit, receivables and payables. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. | |
Other Fair Value Measurements. The initial measurement of asset retirement obligations at fair value is calculated using discounted future cash flows of internally estimated costs. Significant Level 3 inputs used in the calculation of asset retirement obligations include the costs of plugging and abandoning wells, surface restoration and reserve lives. Subsequent to initial recognition, revisions to estimated asset retirement obligations are made when changes occur for input values, which the Company reviews quarterly. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
Note 8 —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 three months ended September 30, 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 federal and state income tax returns are open to audit under the statute of limitations for the years ending June 30, 2009 through June 30, 2012. | |
The Company recognized income tax expense of $482,636 and $760,218 for the three months ended September 30, 2013 and 2012, respectively, with corresponding effective rates of 24.7% and 39.6%. | |
Our effective tax rate for any period may differ from the statutory federal rate due to (i) our state income tax liability in Louisiana, (ii) stock-based compensation expense related to qualified incentive stock option awards (“ISO awards”), both of which create a permanent tax difference for financial reporting, as these types of awards, if certain conditions are met, are not deductible for federal tax purposes, and (iii) statutory percentage depletion, which may create a permanent tax difference for financial reporting. Our estimated annual income tax rate used to determine income tax expense for the three months ended September 30, 2013 includes the utilization of statutory depletion deductions carried over from previous years resulting in a higher than normal rate benefit from depletion in excess of basis. | |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Net Income Per Share | ' | |||||||
Net Income Per Share | ' | |||||||
Note 9 —Net Income Per Share | ||||||||
The following table sets forth the computation of basic and diluted income per share: | ||||||||
Three Months Ended September 30 | ||||||||
2013 | 2012 | |||||||
Numerator | ||||||||
Net income available to common shareholders | $ | 1,303,876 | $ | 990,951 | ||||
Denominator | ||||||||
Weighted average number of common shares — Basic | 28,607,320 | 27,938,297 | ||||||
Effect of dilutive securities: | ||||||||
Common stock warrants issued in connection with equity and financing transactions | — | 852 | ||||||
Stock Options and Incentive Warrants | 3,603,945 | 3,824,339 | ||||||
Total weighted average dilutive securities | 3,603,945 | 3,825,191 | ||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,211,265 | 31,763,488 | ||||||
Net income per common share — Basic | $ | 0.05 | $ | 0.04 | ||||
Net income per common share — Diluted | $ | 0.04 | $ | 0.03 | ||||
Outstanding potentially dilutive securities as of September 30, 2013 were as follows: | ||||||||
Outstanding Potential Dilutive Securities | Weighted | Outstanding at | ||||||
Average | September 30, | |||||||
Exercise Price | 2013 | |||||||
Common stock warrants issued in connection with equity and financing transactions | $ | — | — | |||||
Stock Options and Incentive Warrants | $ | 1.99 | 4,822,820 | |||||
Total | $ | 1.99 | 4,822,820 | |||||
Outstanding potentially dilutive securities as of September 30, 2012 were as follows: | ||||||||
Outstanding Potential Dilutive Securities | Weighted | Outstanding at | ||||||
Average | September 30, | |||||||
Exercise Price | 2012 | |||||||
Common stock warrants issued in connection with equity and financing transactions | $ | 2.25 | 1,165 | |||||
Stock Options and Incentive Warrants | $ | 1.82 | 5,342,820 | |||||
Total | $ | 1.82 | 5,343,985 | |||||
Unsecured_Revolving_Credit_Agr
Unsecured Revolving Credit Agreement | 3 Months Ended |
Sep. 30, 2013 | |
Unsecured Revolving Credit Agreement | ' |
Unsecured Revolving Credit Agreement | ' |
Note 10 - 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 four year term. The Company’s subsidiaries guaranteed 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 Oil and Gas Properties. | |
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% and the Federal Funds 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 reflecting 3.5% per annum rate applied to their principal amounts and are due when transacted. Their maximum term 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 for compensating the Lender $50,000 for incurred loan costs 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 that 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 Series A dividends are a 1X 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 all amounts outstanding under the Credit Agreement to be immediately due and payable. | |
As of September 30, 2013, 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. The Company was in compliance with all the covenants of the Credit Agreement. | |
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. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Commitments and Contingencies | ' | |||||
Commitments and Contingencies | ' | |||||
Note 11 — 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 jurisdiction in which we operate. 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. For legal proceedings, see “Part II, Item 1. Legal Proceedings.” | ||||||
Lease Commitments. We have a non-cancelable operating lease for office space that expires on August 1, 2016. Future minimum lease commitments as of September 30, 2013 under this operating lease are as follows: | ||||||
For the twelve months ended September 30, | ||||||
2014 | $ | 159,011 | ||||
2015 | 159,011 | |||||
2016 | 132,509 | |||||
Total | $ | 450,531 | ||||
Rent expense for the three months ended September 30, 2013 and 2012 was $41,918 and $36,808, respectively. | ||||||
Employment Contracts. We have employment agreements with the Company’s three named officers. The employment contracts provide for a severance package for termination by the Company for any reason other than cause or permanent disability, or in the event of a constructive termination, that includes payment of base pay and certain medical and disability benefits from six months to a year after termination. The total contingent obligation under the employment contracts as of September 30, 2013 is approximately $692,000. | ||||||
Delhi Payout. We are presently in a dispute with the Delhi Field Operator concerning charges arising from the environmental event that began in June 2013. We believe the Operator has indemnified us for such events, with the effect that payout should not be delayed. To date, the operator has not agreed. Accordingly, we are evaluating our alternatives. |
Subsequent_Events_Restructurin
Subsequent Events - Restructuring | 3 Months Ended |
Sep. 30, 2013 | |
Subsequent Events - Restructuring | ' |
Subsequent Events - Restructuring | ' |
Note 12 — Subsequent Event — Restructuring | |
During the second quarter of fiscal 2014, the Company undertook an initiative refocusing its business to GARP® development that will result in adjustment of its workforce towards a lesser emphasis on engineering and greater emphasis on sales and marketing. Accordingly, the Company expects to accrue a restructuring charge in the second quarter ended December 31, 2013 based on agreements with terminated employees covering salary and benefit continuation in exchange for non-compete clauses that are yet to be determined. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Property and Equipment | ' | |||||||
Schedule of oil and natural gas properties and other property and equipment | ' | |||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Oil and natural gas properties | ||||||||
Property costs subject to amortization | $ | 43,159,269 | $ | 42,772,184 | ||||
Less: Accumulated depreciation, depletion, and amortization | (8,397,608 | ) | (8,095,856 | ) | ||||
Unproved properties not subject to amortization | 4,161,816 | 4,112,704 | ||||||
Oil and natural gas properties, net | $ | 38,923,477 | $ | 38,789,032 | ||||
Other property and equipment | ||||||||
Furniture, fixtures and office equipment, at cost | 322,514 | 322,514 | ||||||
Less: Accumulated depreciation | (276,983 | ) | (270,297 | ) | ||||
Other property and equipment, net | $ | 45,531 | $ | 52,217 | ||||
Joint_Interest_Agreement_Table
Joint Interest Agreement (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Joint Interest Agreement | ' | |||||||
Schedule of amounts pertaining to participation in joint venture | ' | |||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Advances to joint interest operating partner | $ | 46,364 | $ | 26,059 | ||||
Due to joint interest partner | 100,347 | 127,081 | ||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Schedule of reconciliations of the beginning and ending asset retirement obligation balances | ' | |||||||
September 30, | June 30, | |||||||
2013 | 2013 | |||||||
Asset retirement obligations — beginning of period | $ | 615,551 | $ | 968,677 | ||||
Liabilities sold | — | (439,927 | ) | |||||
Liabilities incurred | — | 60,143 | ||||||
Liabilities settled | — | (51,086 | ) | |||||
Accretion of discount | 12,928 | 72,312 | ||||||
Revision of previous estimates | 45,172 | 5,432 | ||||||
Asset retirement obligations due within one year included in “Other current liabilities” | (472,235 | ) | — | |||||
Asset retirement obligations — end of period | $ | 201,416 | $ | 615,551 | ||||
StockBased_Incentive_Plan_Tabl
Stock-Based Incentive Plan (Tables) | 3 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stock-Based Incentive Plan | ' | |||||||||||
Summary of information regarding outstanding Stock Options and Incentive Warrants and the changes during the fiscal year | ' | |||||||||||
Number of Stock | Weighted Average | Aggregate | Weighted | |||||||||
Options | Exercise Price | Intrinsic Value | Average | |||||||||
and Incentive | -1 | Remaining | ||||||||||
Warrants | Contractual | |||||||||||
Term (in | ||||||||||||
years) | ||||||||||||
Stock Options and Incentive Warrants outstanding at July 1, 2013 | 4,822,820 | $ | 1.99 | |||||||||
Granted | — | — | ||||||||||
Exercised | — | — | ||||||||||
Cancelled or forfeited | — | — | ||||||||||
Expired | — | — | ||||||||||
Stock Options and Incentive Warrants outstanding at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
Vested or expected to vest at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
Exercisable at September 30, 2013 | 4,822,820 | $ | 1.99 | $ | 44,708,877 | 2.4 | ||||||
(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($11.26 as of September 30, 2013) and the Stock Option or Incentive Warrant exercise price of in-the-money Stock Options and Incentive Warrants. | ||||||||||||
Schedule of Restricted Stock transactions | ' | |||||||||||
Number of | Weighted | |||||||||||
Restricted | Average | |||||||||||
Shares | Grant-Date | |||||||||||
Fair Value | ||||||||||||
Unvested at July 1, 2013 | 386,599 | $ | 6.65 | |||||||||
Granted | — | — | ||||||||||
Vested | (61,345 | ) | 5.01 | |||||||||
Forfeited | — | — | ||||||||||
Unvested at September 30, 2013 | 325,254 | $ | 6.96 | |||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Net Income Per Share | ' | |||||||
Schedule of computation of basic and diluted income per share | ' | |||||||
Three Months Ended September 30 | ||||||||
2013 | 2012 | |||||||
Numerator | ||||||||
Net income available to common shareholders | $ | 1,303,876 | $ | 990,951 | ||||
Denominator | ||||||||
Weighted average number of common shares — Basic | 28,607,320 | 27,938,297 | ||||||
Effect of dilutive securities: | ||||||||
Common stock warrants issued in connection with equity and financing transactions | — | 852 | ||||||
Stock Options and Incentive Warrants | 3,603,945 | 3,824,339 | ||||||
Total weighted average dilutive securities | 3,603,945 | 3,825,191 | ||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,211,265 | 31,763,488 | ||||||
Net income per common share — Basic | $ | 0.05 | $ | 0.04 | ||||
Net income per common share — Diluted | $ | 0.04 | $ | 0.03 | ||||
Schedule of outstanding potentially dilutive securities | ' | |||||||
Outstanding Potential Dilutive Securities | Weighted | Outstanding at | ||||||
Average | September 30, | |||||||
Exercise Price | 2013 | |||||||
Common stock warrants issued in connection with equity and financing transactions | $ | — | — | |||||
Stock Options and Incentive Warrants | $ | 1.99 | 4,822,820 | |||||
Total | $ | 1.99 | 4,822,820 | |||||
Outstanding Potential Dilutive Securities | Weighted | Outstanding at | ||||||
Average | September 30, | |||||||
Exercise Price | 2012 | |||||||
Common stock warrants issued in connection with equity and financing transactions | $ | 2.25 | 1,165 | |||||
Stock Options and Incentive Warrants | $ | 1.82 | 5,342,820 | |||||
Total | $ | 1.82 | 5,343,985 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 3 Months Ended | |||||
Sep. 30, 2013 | ||||||
Commitments and Contingencies | ' | |||||
Schedule of future minimum lease commitments under the operating lease | ' | |||||
For the twelve months ended September 30, | ||||||
2014 | $ | 159,011 | ||||
2015 | 159,011 | |||||
2016 | 132,509 | |||||
Total | $ | 450,531 | ||||
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 |
Property and Equipment | ' | ' | ' |
Total property and equipment | $38,969,008 | $38,841,249 | ' |
Oil and natural gas properties | ' | ' | ' |
Property costs subject to amortization | 43,159,269 | 42,772,184 | ' |
Less: Accumulated depreciation, depletion, and amortization | -8,397,608 | -8,095,856 | ' |
Unproved properties not subject to amortization | 4,161,816 | 4,112,704 | ' |
Other property and equipment | ' | ' | ' |
Furniture, fixtures and office equipment, at cost | 322,514 | 322,514 | ' |
Less: Accumulated depreciation | -276,983 | -270,297 | ' |
Mississippi Lime - unevaluated acreage | ' | ' | ' |
Oil and natural gas properties | ' | ' | ' |
Unproved properties not subject to amortization | 4,200,000 | 4,100,000 | ' |
Oil and natural gas properties | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Total property and equipment | 38,923,477 | 38,789,032 | ' |
Other property and equipment | ' | ' | ' |
Impaired unproved properties | 0 | ' | 0 |
Other Property and Equipment | ' | ' | ' |
Property and Equipment | ' | ' | ' |
Total property and equipment | $45,531 | $52,217 | ' |
Joint_Interest_Agreement_Detai
Joint Interest Agreement (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 |
Participation in joint venture | ' | ' |
Advances to joint interest operating partner | $46,364 | $26,059 |
Due to joint interest partner | 100,347 | 127,081 |
Joint interest arrangement | Orion Exploration Partners, LLC | Kay County in North Central Oklahoma | ' | ' |
Participation in joint venture | ' | ' |
Advances to joint interest operating partner | 46,364 | 26,059 |
Due to joint interest partner | $100,347 | $127,081 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Reconciliation of the beginning and ending asset retirement obligation | ' | ' | ' |
Asset retirement obligations - beginning of period | $615,551 | $968,677 | $968,677 |
Liabilities sold | ' | ' | -439,927 |
Liabilities incurred | ' | ' | 60,143 |
Liabilities settled | ' | ' | -51,086 |
Accretion of discount | 12,928 | 21,107 | 72,312 |
Revisions to previous estimates | 45,172 | ' | 5,432 |
Asset retirement obligations due within one year included in Other current liabilities | -472,235 | ' | ' |
Asset retirement obligations - end of period | $201,416 | ' | $615,551 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 1 Months Ended | 1 Months Ended | 2 Months Ended | |||||||
Sep. 30, 2013 | Jul. 31, 2013 | Sep. 30, 2013 | Jun. 22, 2006 | Jul. 31, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | |
Common stock | Laird Q. Cagan | Laird Q. Cagan | Officers and employees | Officers and employees | Officers and employees | Officers and employees | Officers and employees | |||
Common stock | Common stock | Common stock | Common stock | Common stock | Common stock | |||||
Weighted average | Weighted average | |||||||||
Treasury stock retired (in shares) | ' | 801,889 | ' | ' | ' | 10,222 | 10,222 | 10,222 | ' | ' |
Number of shares of common stock issued through a net cashless exercise of a placement warrant | ' | ' | ' | ' | 922 | ' | ' | ' | ' | ' |
Right to purchase number of shares of common stock against warrants | ' | ' | ' | 1,165 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | $2.25 | ' | ' | ' | ' | ' | ' |
Shares acquired from related party | ' | ' | ' | ' | ' | 10,222 | 10,222 | ' | ' | ' |
Share acquisition cost (in dollars per share) | ' | ' | $11.26 | ' | ' | ' | ' | ' | $11.46 | $11.46 |
Recovery of Stockholder Short Swing Profit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recovery of short swing profits | $6,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | |
Series A Cumulative Perpetual Preferred Stock | ' | ' | ' |
Preferred stock dividends paid | $168,575 | $168,575 | ' |
Series A cumulative perpetual preferred stock | ' | ' | ' |
Series A Cumulative Perpetual Preferred Stock | ' | ' | ' |
Number of shares sold of series A cumulative perpetual preferred stock | 317,319 | ' | ' |
Preferred stock dividend rate (as a percent) | 8.50% | ' | 8.50% |
Preferred stock, liquidation preference (in dollars per share) | $25 | ' | $25 |
Amount of sinking fund available to stockholders | 0 | ' | ' |
Redemption price per share (in dollars per share) | $25.25 | ' | ' |
Dividend payable monthly on preferred stock (in dollars per share) | $0.18 | ' | ' |
Preferred stock dividends paid | $168,575 | $168,575 | ' |
StockBased_Incentive_Plan_Deta
Stock-Based Incentive Plan (Details) (USD $) | 3 Months Ended | 62 Months Ended | 121 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Stock Options and Incentive Warrants | Stock Options and Incentive Warrants | Stock Options and Incentive Warrants | 2003 Stock Plan | 2003 Stock Plan | 2004 Stock Plan | Board of Directors Authorized, Outside of EMP Stock Plans | |
Stock Options and Incentive Warrants | Incentive Warrants | ||||||
Stock-Based Incentive Plan | ' | ' | ' | ' | ' | ' | ' |
Number of shares granted under the Plan | ' | ' | ' | ' | 600,000 | ' | ' |
Number of shares of common stock authorized for issuance under plan | ' | ' | ' | ' | ' | 6,500,000 | ' |
Number of shares remaining available for grant under plan | ' | ' | ' | 0 | ' | 800,914 | ' |
Number of Incentive Warrants issued (in shares) | ' | ' | ' | ' | ' | ' | 1,037,500 |
Stock-based compensation expense | $0 | $26,274 | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 0 | ' | ' | ' | ' |
StockBased_Incentive_Plan_Deta1
Stock-Based Incentive Plan (Details 2) (USD $) | 3 Months Ended |
Sep. 30, 2013 | |
Common stock | ' |
Additional disclosures of Stock Options and Incentive Warrants | ' |
Market price of common stock on the last trading date of the period (in dollars per share) | $11.26 |
Stock Options and Incentive Warrants | ' |
Number of Stock Options and Incentive Warrants | ' |
Stock Options and Incentive Warrants outstanding at the beginning of the period (in shares) | 4,822,820 |
Stock Options and Incentive Warrants outstanding at the end of the period (in shares) | 4,822,820 |
Vested or expected to vest at the end of the period (in shares) | 4,822,820 |
Exercisable at the end of the period (in shares) | 4,822,820 |
Weighted Average Exercise Price | ' |
Stock Options and Incentive Warrants outstanding at the beginning of the period (in dollars per share) | $1.99 |
Stock Options and Incentive Warrants outstanding at the end of the period (in dollars per share) | $1.99 |
Exercisable at the end of the period (in dollars per share) | $1.99 |
Vested or expected to vest at the end of the period (in dollars per share) | $1.99 |
Aggregate Intrinsic Value | ' |
Stock Options and Incentive Warrants outstanding at the end of the period | $44,708,877 |
Vested or expected to vest at the end of the period | 44,708,877 |
Exercisable at the end of the period (in dollars) | $44,708,877 |
Weighted Average Remaining Contractual Term (in years) | ' |
Stock Options and Incentive Warrants outstanding at the end of the period | '2 years 4 months 24 days |
Vested or expected to vest at the end of the period | '2 years 4 months 24 days |
Exercisable at the end of the period | '2 years 4 months 24 days |
StockBased_Incentive_Plan_Deta2
Stock-Based Incentive Plan (Details 3) (Stock Options and Incentive Warrants, USD $) | 3 Months Ended |
Sep. 30, 2012 | |
Stock Options and Incentive Warrants | ' |
Additional disclosures of Stock Options and Incentive Warrants | ' |
Vested (in shares) | 18,922 |
Total fair value of awards vested | $46,359 |
Unvested at the end of the period (in shares) | 0 |
StockBased_Incentive_Plan_Deta3
Stock-Based Incentive Plan (Details 4) (Restricted Stock, USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Restricted Stock | ' | ' |
Stock-Based Incentive Plan | ' | ' |
Stock-based compensation expense | $373,438 | $327,516 |
Number of Restricted Shares | ' | ' |
Unvested at the beginning of the period (in shares) | 386,599 | ' |
Vested (in shares) | -61,345 | ' |
Unvested at the end of the period (in shares) | 325,254 | ' |
Weighted Average Grant-Date Fair Value | ' | ' |
Unvested at the beginning of the period (in dollars per share) | $6.65 | ' |
Vested (in dollars per share) | $5.01 | ' |
Unvested at the end of the period (in dollars per share) | $6.96 | ' |
Additional disclosures of restricted stock | ' | ' |
Unrecognized stock compensation expense related to Restricted Stock grants | $1,905,882 | ' |
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized | '2 years 1 month 6 days | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Taxes | ' | ' |
Unrecognized tax benefits | $0 | ' |
Income tax expense | $482,636 | $760,218 |
Income tax expense, effective rates (as a percent) | 24.70% | 39.60% |
Net_Income_Per_Share_Details
Net Income Per Share (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Numerator | ' | ' |
Net income available to common shareholders | $1,303,876 | $990,951 |
Denominator | ' | ' |
Weighted average number of common shares - Basic | 28,607,320 | 27,938,297 |
Effect of dilutive securities: | ' | ' |
Common stock warrants issued in connection with equity and financing transactions (in shares) | ' | 852 |
Stock Options and Incentive Warrants (in shares) | 3,603,945 | 3,824,339 |
Total weighted average dilutive securities (in shares) | 3,603,945 | 3,825,191 |
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,211,265 | 31,763,488 |
Net income per common share - Basic (in dollars per share) | $0.05 | $0.04 |
Net income per common share - Diluted (in dollars per share) | $0.04 | $0.03 |
Net_Income_Per_Share_Details_2
Net Income Per Share (Details 2) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Outstanding Potential Dilutive Securities | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $1.99 | $1.82 |
Balance at the end of the period (in shares) | 4,822,820 | 5,343,985 |
Common stock warrants issued in connection with equity and financing transactions | ' | ' |
Outstanding Potential Dilutive Securities | ' | ' |
Weighted Average Exercise Price (in dollars per share) | ' | $2.25 |
Balance at the end of the period (in shares) | ' | 1,165 |
Stock Options and Incentive Warrants | ' | ' |
Outstanding Potential Dilutive Securities | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $1.99 | $1.82 |
Balance at the end of the period (in shares) | 4,822,820 | 5,342,820 |
Unsecured_Revolving_Credit_Agr1
Unsecured Revolving Credit Agreement (Details) (USD $) | 1 Months Ended | 3 Months Ended |
Feb. 29, 2012 | Sep. 30, 2013 | |
Revolving credit facility | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Maximum amount available under revolving credit facility | $50,000,000 | ' |
Initial borrowing base | 5,000,000 | 5,000,000 |
Term of revolving credit facility | ' | '4 years |
Value of oil and gas properties subject (as a percent) | ' | 25.00% |
Margin added to variable interest rate basis (as a percent) | ' | 0.50% |
Outstanding borrowings | ' | 0 |
Loan costs to be compensated to lender over the life of the Credit Agreement | 50,000 | ' |
Debt issuance costs | 179,468 | ' |
Revolving credit facility | Maximum | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Current ratio | ' | 1.5 |
Total funded indebtedness to EBITDA ratio | ' | 2.5 |
EBITDA to interest expense ratio | ' | 3 |
Revolving credit facility | LIBOR | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Variable interest rate basis | ' | 'Adjusted LIBOR |
Amount to be reduced by Lender's Regulation D reserve requirement | ' | 1 |
Interest period one | ' | '1 month |
Interest period two | ' | '2 months |
Interest period three | ' | '3 months |
Interest period four | ' | '6 months |
Term for payment of interest | ' | '3 months |
Revolving credit facility | LIBOR | Maximum | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Number of loans that can be outstanding at any time | ' | 3 |
Revolving credit facility | Prime rate | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Variable interest rate basis | ' | 'Lender's prime rate |
Revolving credit facility | Federal funds rate | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Variable interest rate basis | ' | 'Federal Fund Rate |
Commitment fee accruing on unutilized availability (as a percent) | ' | 0.50% |
Letter of credit | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Maximum amount available under revolving credit facility | 1,000,000 | ' |
Letter of credit fees rate applied to principal amounts (as a percent) | ' | 3.50% |
Outstanding borrowings | ' | $0 |
Letter of credit | Maximum | ' | ' |
Unsecured Revolving Credit Agreement | ' | ' |
Term of revolving credit facility | ' | '1 year |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Lease Commitments | ' | ' |
2014 | $159,011 | ' |
2015 | 159,011 | ' |
2016 | 132,509 | ' |
Total | 450,531 | ' |
Rent expense | 41,918 | 36,808 |
Employment Contracts | ' | ' |
Commitments and Contingencies | ' | ' |
Number of senior executives in employment agreements | 3 | ' |
Total contingent obligation | $692,000 | ' |
Employment Contracts | Low end of the range | ' | ' |
Commitments and Contingencies | ' | ' |
Period of benefits to employees after termination | '6 months | ' |
Employment Contracts | High end of the range | ' | ' |
Commitments and Contingencies | ' | ' |
Period of benefits to employees after termination | '1 year | ' |