EPM - Earnings call transcript Q3 2020 | Evolution Petroleum Corporation

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Operator

Good day, ladies and gentlemen, and welcome to your Evolution Petroleum Third Quarter Fiscal 2020 Earnings Release Conference Call. [Operator instructions] At this time, it is my pleasure to turn the floor over to David Joe, Chief Financial Officer. Sir, the floor is yours.

David Joe

Thank you, and good afternoon, and welcome to Evolution Petroleum’s earnings call for our fiscal third quarter ended March 31, 2020.

We will discuss today operating and financial results for the quarter. Chief of Joe, David am Financial Evolution. Officer I call Jason Brown, joining me and is the on Officer. And President today Chief Executive

would a website provided time not Please for note to today listen recorded replay it are shortly wish any later X, of accurate a going be you XXXX. June by company’s call, available will may statements a the sensitive to that date. and until today’s at be If replay to and information

of risks statements with currently and forward-looking beliefs that contain and forward-looking on will today our the discussion listed based management’s available statements assumptions Our filings are in described are and These SEC. information. subject to uncertainties

release, results, that affects Actual oil the from are typical remainder of expected. results how available numbers spending. the prices differ XXXX, operations primarily and capital COVID-XX company, for Since those update materially on focus on call on volatility this and will including yesterday’s in key to our and may news the readily everyone fiscal in plans

I welcome Jason the call. to now like Brown on would

Jason Brown

environment today thank a Good XXXX call. again, Evolution’s you everyone, speaking and third joining last than earnings for you, David. with today Thank quarter us different morning, fiscal dramatically quarter. you I’m for in

and by crude gas all know, caused factors, oil in in markets, declined As pandemic significant you a including global COVID-XX. early prices natural of demand as global the multiple March, a result sharply impacting and supply

this of good and I continued first, are wish COVID-XX, to to during that hope regard like pandemic health. you With say I staying safe would all you

due dedication quickly remained are closures and trying Particularly, of to and and Board cares other to opportunity They diligent during families adjustments thank responsibilities have partners schools life. to many acted take employees, and I Second, to everyday company. would while additional for their ongoing their this like with day members these balancing times. to this my

to the of controls home the remotely. you, on wherever to in Early collaborating our its on its our impact were our began months focusing share February operations maximizing have company’s business maintain the company of XXXX, impacts remote business, virtually. life two spent ability adjusting effectively are Like potential I’m all employees to last the COVID-XX. we of we that and for possible, happy and and system preparing

small the was and company, Given operation transition fairly one our able and nature that to functional. were we size continue of and it our to do be a fully to seamless

global the volatility which able sudden in withstand the prices commodity years, economic within has operate in been in of impacts Over our oil the had we period extended gas to and occurred simultaneously. industry environment company of slowdowns, an have or and never three to Unfortunately, all disruptions.

to crude evidenced near through We futures the crude oil as to oil at be current expect the term continue price volatile, the least, remain market. and depressed of by

Although, decrease, have predict ourselves effects that for duration prepared an depressed we may prices cannot the for period. we or extended of remain crude this potential sudden oil the

extremely The the and will long to operations affected how of makes business company’s pandemic be it term. COVID-XX nature difficult predict

general of impact pandemic as natural overall the the is likely industry. especially However, the and viewed negative gas the to economy, highly oil

positive environment quarter. in cannot consecutive again XXth evolve for to we predict, the the and cash While for Evolution earnings ways will shareholders changed many delivered has has its and continue flow

barrel. of WTI month, April XXXX, barrels per oil December or anticipated a XXXX, swaps, $XX approximately the oil X, period production through X, barrels a covering the entered price day XX,XXX X,XXX XXXX, into at of the company’s fixed substantial XX, for of portion a April On swap company NYMEX a a

hand to look partial the allow strength typically its to enable price to on us current company that believes at cash and not strategies, will per of The does combination the rate financial its Evolution with a maintain protection through previous has dividends Although share. under continue of it XX and its availability the quarterly company nine consecutive this employ facility. credit base $X.XX hedging paid asset selectively, to add existing

strategy of June dividend temporarily This Board Directors $X.XXX remains long-term is the the quarterly short prudent share rate to the the it toward the XXXX. ending in quarter believes current dividend into go per in unchanged, adjust While will change to term. the on effect XX,

high more done greater create the stock strategy. of circumstances is the portion the grow overall the persist flexibility excess proactive priority to current believe continues cash cash conditions than being of This maintain opportunities the should as a The and of challenging and Directors at next company’s COVID-XX distributing reward substantial evolve. management both few Maintaining company. pandemic the to as market of position meaningful could beyond operating with Board shareholders financial the allows the yield X% price. the continue remains economic the company free a dividends long-term move a company just balance the M&A slowdown cash to through capital of to plan months in cash also The requirements flow the and current

levels XXXX. to And will of from over June record current emergence as cash The increase expects turmoil XX, the as paid the return the appropriate. XXXX to XX, common market company June and be time to stockholders to dividend dividends to after higher dividend on continue industry’s on

to that, to outlook briefly call and back With M&A speaking about our through call then landscape. up David turn wrap highlights, now the over and the will the strategy our and I David? I’ll run financial

David Joe

I our fiscal these and I our to like challenging well you, XX. and financial remain third quarter results times. Thank also Jason. highlights that I you some reiterate for of hope March would ended additional your will share during families safe

additional refer information and quarter for be yesterday third to please details filed press for look XX-Q release to the fiscal Form our our full for However, out and shortly.

of cash activities one-time the related The generated Inclusive operating million declared the credits. consecutive also company in quarter. of dividend. marking net recovery net a $X.X next quarterly and streak The $X.X quarter, its tax dividend oil enhanced company million, cash reported $X.X Jason of noted, the paid benefit million XXth consecutive tax a the flows income positive from as In generated long company income of income. to

the the maintained details. production sheet for and on portion company And $XX lastly, balance a generated company into income hand The million WTI debt. into oil of a which were next of in million million in undrawn a barrel. quarter, $X.X cash Total from our the no little NYMEX an eight fixed Diving covering price at operations. facility large months for $X.X entered with strong and credit a more swaps, per revenues $XX.X

about inclusive is the of the last of an LLS planned charges sales by of prices date the compared X, the barrel. when of the to ahead oil $X.XX, prior quarter. a in repair of the all pipeline to trucking back Hamilton offset full lesser volumes and decline This $XX Delhi’s in the to pipeline temporary oil late was extent, are was price about was prior Dome completed oil January, a for of of offset in production of acquisition premium Lower sales quarter, Delhi average Delhi, the primary to by Recall driver in quarter realized revenues per of month to in schedule through XXXX. at commenced quarter one down average sales the February oil a mid-November due as and repair and the lower effective pipeline. project XX% section

the X% in to to, quarter in about revenues but conformance $XX production by per to compared margin was $XX equivalent workovers, of Delhi not and quarter. Dome per barrel. X% from Delhi COX production about to oil and current quarter, decrease BOE BOEPD the $X.X per were million a This due quarter, $X.X Delhi BOE the decline. of the to of about prior the a production X,XXX quarter, increased Total Production day Field attributable limited field in to, increase barrel, quarter current the quarter. full barrels net offset at million per compared reduced purchases was Hamilton from costs is operating prior per prior natural lower and in the deferred X,XXX in

The further was pressure supply closing the on reopening working not The and repairing late is the detection. by the pipeline of February the company pipeline. Delhi, date COX impacted of in due interest. temporary to loss a was off-line which has quarter, the ownership of estimated operator pipeline to During the has discovery no yet Evolution an line taken determined

the However, COX these injected operating as are usual, volumes. facilities and recycle of XX% facilities provide the approximately

the $X.X million cubic Delhi The contributing or a decrease day. day to in Purchased to cubic decreased feet feet COX current cost increase other inclusion was XX.X or per XX%. from Hamilton with oil per production. XX% XX.X its quarter production Dome Slightly the primarily COX reduction million a Also due was decreased by the million costs, to realized $X.X in quarter Delhi’s a full associated in operations. X% million of offsetting these of decreases prices

BOE organization, company to to a professional especially BOE, to administrative increased public slight was for the in as quarter The General $XX.XX a from having the prior expenses $XX.XX attributable current decline $X.X company’s company’s increases and lean overall the operate for quarter the cost living or $X.X primarily per BOE. continues million compared full-time G&A Increased quarter. a million employees. prior only X.X% in expenses the per services quarter’s to about XX% per are Evolution expenses.

during third-party date, maintaining process, XXXX. This where recorded employees tax We personnel. contracted recovery of a utilizing third-party we $X.X core achieve to see million and flexibility quarter, of as able cost validation the areas of Nonetheless, tax and with savings. price evaluated small we in initiated one-time a pivot, we ongoing volatile potentially of taken required XXXX, a when oil personnel enhanced strategy primarily have for In our could if environment. necessary, income XXXX, years credits and is our team cuts, an that we to benefit but and a

EOR applicable EOR available tax of the few an phased This The the amending state over $X.X XXXX. income tax XXXX, out in and of Furthermore, of IRS. multiple for tax at included because credit search to resulting owners is only period was qualified was tax set is This again federal years, savings not oil in XXXX was a by the projects. of higher prices to and opportunities somewhat credit million returns obscured from years of this and in result out phased receivable end. project last as credit EOR

capital the of $X.XX increase, at work-over anticipate the for $X.XX for to income $X.X capital In by delayed million net the material or issued and and of capital and decline fiscal we share, spending prior NGL a been quarter IRS consisting curtain yet for We not XXXX. per project. has recent capital any of projects remainder quarter, million $X.X quarter primarily the for million not XXXX, in projects diluted share. Field, plant incurred net water the of all Overall, was oil per for determination $X.X the compared A XXX% a and of been completion projects on have prices. remaining Delhi as based do performance current

that reported least previously operator development capital was Delhi XXXX. the deferred at The into phase for project five

to decline working capital in Our resulting the EOR working from million. receivables is largely offset tax by the company the $X.X quarter The prices. credit capital facility. prior mentioned, sales income from increase $XX.X receivable and increased an million million oil credits to The $XX.X in realized ended previously quarter to attributable due cash, with average a no the debt in the undrawn lower

million, company did completed steep our our $XXX,XXX $XX approved of summary, an XXX,XXX repurchase primarily quarter, borrowing oil In the the the There despite while as prices. remaining the current we at the $XXX,XXX. returning the quarter, about average declared. on XXth dividend previously base redetermination industry, XXXX, approximately of spring consecutive in decreased redetermination XX, current annual expected, price economic shares left yet the In decline $X and $X.XX, million to due about from million with committed program. back Evolution April solid $XX cash to financial totaling On reported to environment to stock facing the another our its all remains shareholders

and shape new for The growth remains financial is opportunities. in excellent company poised

including XXXX, mark-to-market our was as approximately settlement. X, value million $X.X of Additionally, realized April of $XXX,XXX gain a for the book hedge March

financial review our for remarks. concludes and final of results now over our Jason turn the quarter. call This third I operations back will to for

Jason Brown

continuing to its opportunities realized to negative wells of will goal prices new capitalize various is to well-positioned a and well-by-well to remains is company ultimate conditions The market is retaining our improve. plan accordingly operating maintaining or growth environment for shut-in cost shareholders. partners scenarios. to to with as The basis, and David. wells decisions with company a monitor operators for our on strong review The basing on low flexibility netbacks return position current future the temporarily service with while while financial price company to working that providing to on the weather contribute lifting Thanks, the return operating oil its working

in BOE. We opportunity upside at believe gas the price for to current acquire long-life prices oil production potential an attractive weakness presents a with and very

also to years Evolution it and pursue little will positioned validates think retain Evolution’s dividend. is I decisions substantial uniquely long-term to no It sustainability grow our to with diversity, and provide recent liquidity prudent over growth opportunities. debt. support

will look We that line Operator, to think please market With the take that, company. will advantage will allows open asset you the I evaluate opportunities we’re to questions? further where to grow take us ready acquisition for questions. the

Operator

our question we’ll And you. Grampp Thank Instructions] first ahead. Northland. Jeff from take with go Please [Operator

Jeff Grampp

say I should or guys, morning, afternoon. Good

Jason Brown

Jeff. Hey,

David Joe

Jeff. afternoon, Good

Jeff Grampp

on. fluid and understanding that hard real-time in wells, production then decisions is the over some probably with the shutting there on some to handle next are was on – couple assets, are your exact and probably I pipeline. given volumes reduced get of things sure of quarters, COX both But and I’m particular curious there

So give in of expectations? kind us seeing you kind of terms in kind of you field. Or are of magnitude shut-ins high-level production what to maybe guys the can in any commentary ballpark, regards

Jason Brown

generally Jeff, don’t Well, guidance. we give

between little eight-ish of issues so seen conformance. Delhi in few Natural I the is decline. over a percent far probably years, the think the successful range. natural been and decline last very bit pipeline hit the a the and, there We’ve of flattening we’ve basically, lack COX

has Denbury in successful or flattening increase decline, very that to decline an production. even zero been And negative

of So without COX think tells hit. The of where that a you kind I conformance, be bit going probably to that naturally. that’s another is

those collectively, between XXX barrels So net, about to a I XXX us, barrels think day. two maybe to

acquisitions this team up couldn’t in really wells the that with No just there. environment, acquisition. Dome, They’ve but operator. going excellent been little together be pleased price production don’t and Ham happier on They good put of bit we’re that sense. that in they’re back dialing with And through, we look an a some make

bit because looking a they’ve well, issue power of usage by of is different largest very up the up expenses pumped, one being the little actual there. at analysis there. the It’s had wells operational well power Most electricians doing detailed

Ham the to our overall which XX% So about of is right now, think, X% I we our production in in about probably shut of XX% for company. Dome, production

significant, So $XX of kind it’s to neutral goal get but cash to the flow there even is a less situation at realized prices.

operators So this we’re in time. happy with both

One fields of Denbury. the lowest cost for lifting

any intentional anticipate don’t or cutbacks There’s we Denbury. shut-ins. So at substantial shut-ins no

In both shut-in. partners the any situations, talked either have we’ve that curtailment got midstream no or of indication operator about from

saying would is based shut-in. which take that So midstream, are there neither and cases, between individual curtailment is issue. a a having be on difference Shut-in economics the our in that is to some do wells. Curtailment choosing which oil, fields we of your can’t happening

to that. I probably answering that’s close think can get as I So as

to think, XX% down now. right I roughly, probably we’re XX% about

Jeff Grampp

of little housekeeping of or That’s it. My a kind perfect. a bit follow-up, clarification. Got

your volumes does pipeline financial the in, effectively the that your volumes effectively of that Or for COX toward guys structured the the and guys near COX the go you recycled does zero? kind volumes in pay shut injection the the with financials? to you On through on that Denbury, report is contract term, Does count how with statements?

David Joe

is Yeah, Jeff. David. This

operation, number not that’s volume. a So a our purchased advertised that COX results recycled volume, that’s in of COX

is up So, in the point of have purchase a pipeline current number we to shut-in, the the quarter, some February in XX. have current yeah, lower which around quarter, we did volumes because

in far, and March, it’s in April. a then yes, zero so So

Jason Brown

January a zero We in day purchasing February then of March. most and in and sense. XX about million were make That

a purchasing a which out It’s not right turned tremendous we’re of now, savings. to So has anything be bit little serendipity.

of purchased you of COX, of our purchase now about about $XX think hold kind it. which ballpark both right and the $X cubic XX a Evolution and about If cost. of – lifting the we day, of feet are of up makes the about us, for of that’s between It net million on conformance

cycling additional XXX not a XX – fully we’re purchases, So with the still million COX million but recycled. million. functional, day day injecting XXX no just That’s of the a still adding

a cost pressure XXX. the But to at it full seen these prices. bit doesn’t compare drop you’ve little So not savings even remotely but support off, of the

So we’re kind of okay with now. that right

Jeff Grampp

Yeah. No, nice a have. that’s embedded hedge to

So clarification there, someone the I I’ll appreciate else and let hop in.

Jason Brown

Jeff. Thanks,

Operator

Please we’ll go ahead. And question next with ROTH. John take from White a

John White

Good afternoon, guys.

David Joe

Hey, John.

Jason Brown

We for We on John. write-up appreciate that. read the Monday. that. Thanks afternoon, Good

John White

I glad I’m read the its in suspend Well, dividend you note, you to as wrote entirety. And it. I that in anticipated

paying a by dividend. me surprised you So

it paid confidence in you dividend. your balance cash flow. it your reduced, was Although think have a sheet the you and I And reflects

Jason Brown

It does.

and We a the value just dividend we so that us hedge, It’s in also commitment, situation in shareholders that to Board, back were proud have to reduction dropped XXXX, able we’re part of fund. had to time. very our returning important and XX% I price of to and We’ve it. from the an think, other before committed XXXX, and shareholders, in brand our lower and we’re put in just have dividend at to, or prices our had

quarters down was it to $X.XX then to back for I up $X.XX and quarter, down think, quickly $X.XX. And or six it ramped so a from

I So think able being but $X.XX potential we’re committed in a of we’re really quarter. but about the to if only still deliver prudent. opportunities, pretty this quarter, it’s to And M&A the excited a situation,

shareholders could our kind decent felt our are still still we prices We preserve is of a like these yield. that. and think rewarding do cash. target I It’s to

John White

you a that’s so good. balance nice think there, struck I

Jason Brown

you. Thank

John White

tax is did that you on enhanced time, although, missed nice your that working David, benefit missed a start and I tax one When that? nice, I – it’s comment. – it’s oil

David Joe

on doing year last November, December work It of some started that. we was

John White

XXXX? Of

David Joe

Yes.

John White

and a question. appreciate thanks taking you Well, lot, Okay. my I

David Joe

Thanks, John.

Jason Brown

Thanks, John.

David Joe

take there from next we’ll a question, got hold, Operator, is looks line it like the the one. operator Please if dropped. note her that I’ve

Jason Brown

more have logging everyone we couple If us. on. bear The a questions. operator with is think I back now will got dropped just and

Operator

Pavani from so I’m And apologize. I next comes Partners. go back. Bhakti with do Please question sorry. I’m Global our ahead. Alliance

Bhakti Pavani

Thank taking Good morning, question. my you guys. for

Jason Brown

Hey, Bhakti.

Bhakti Pavani

to this but my are It’s dividend. curious on been dividend see the of asked, pay you have at nice that continuing questions time. to Most just

your dividend Just expect go or in at your was to you back oil what to you wondering, do price levels? up, would up when payment, expect previous

Jason Brown

Well, say. sustain of a can go it for of go more it’s we It’s of We and while. kind a back up just want again. have down feel back when to to hard don’t to then

I range. that $XX including think So dividend fully generally, kind positive, cash the we’re of the around flow

So went when $XX, to And to them oil, prices varies bit our now. sub-$XX with going David When a – are lifting down, prices were were prices bit. our higher. costs from expect like prices kind of $XX we be our little little from said, of costs – it a COX $XX, and went right lifting down

I the amount So is tremendous with this uncertainty. decision of just prudent think a

strong It’s get to soon there as as possible. our desire back

quarters, So, few we a a this quarters. from all and to to but endure be hopefully, few back bounce and we just prepared can this is had demand, ramp-up

Bhakti Pavani

Okay. color. That’s great

market I time the not a more you have balance market credit Just facility? healthy sheet, of know in plus on but in up, the to given lucrative Are that’s enough? the seen the have a selling any kind you you seeing lucrative very M&A anything of one assets, be opportunities open good front. it’s

Jason Brown

What we volatility to ever that something seen. prices been their has is start The nobody’s to just need stabilize.

then be really even can while, $XX they for in hurting. something, valuation deal even is to trading. there on a stabilize put will some going the if a start do if So they’re people Nobody range until

We’re bankruptcies. starting some to see

are make a be in, for where industry even from contacts, decisions step smaller that. to maybe want and situations calls inbound getting we and on We’re some being forced creditors to solution

So some we’re seeing conversations.

range, the perspective. that’s than I four-month three- to a kinetic decent if think, probably, range in to those will get the more four-week three- rather

Bhakti Pavani

very side. Thank That’s you for it enough. guys. fair much, That’s my

Jason Brown

Excellent. you. Thank

Operator

go we’ll next Wealth to Bair And John Instructions] Ascend Advisors. with [Operator

John Bair

not the addressed was it Thank being environment, you. some approached I actively prices whether now. you of kind you’re I stabilize. need about The right or But think pretty questions given ask M&A, to going to well.

whether Hamilton are nonetheless, or probably there in to figure I’m now. People more calls or be not in frequent there am are might some If But, pick trying whether I to right hang and a wrong inbound I had area, Dome. up potential indicated, opportunities getting unless you are not in that you curious to particular out recall, interest there on that? how previously

Jason Brown

Certainly.

We’re a calls definitely in getting number different of situations. inbound

be I’m we undervalued feel a little like at taking interested the to point. Probably, too feel in of in would doesn’t terms back this we’re us. this which So interesting Board point, like, at what stock, that’s expensive

and undrawn it be of But makes at a those our take to do We to we’re of poised feel point, to between bit able some sense like advantage maybe opportunities. revolver. little that cash

that’s terms a Ham In of possibility. We’d love real Dome, of it. think I more some to have

We’re very acquisition. pleased that with

think our going pleased It’s be to from years that supporting XXXXs it’s I such the field. when and with XXXX, shareholders life a XX now. long all acquisition. XX, very are dividend our through And

We’d how price love John, deal a more you are some with many But to in little motivated that not environment. flow they’re right a it’s positive. things do do of now, it. said, even tricky of not And sell this because being type have cash to

a buy later. cash you neutral reserves and flow breakeven collect something while for for kind remain can or and then those So of

a I here we’re but all get able confident out kind of make think be something to pretty just figure to deal, we’re we’ll head, how our trying pretty scratching to soon.

John Bair

kind strongly realize it’s with of hedge, more regards good to I see than on year. this a perceived guess, stable what likely but to prices? if would obviously, end rebounding are that At what’s price more I obviously, I to the that’s you of hedges? with point would things some scenario mean, the consider happen. then Again, you dependent, the be through laying And Okay. little

but on So economic what would thought and process more as XXXX? out recovery you many in laying some forth, hedges, your cause say, there consider so to of on as unknowns kind far

Jason Brown

one the is that to hedges one we’re want It’s a really question. of policy rather insurance of thought good It’s than think would speculation. of watching very or closely. I a more we an main I that that guess as extend defensive there

the speculation. a point, little getting So feels more XXXX I Board think too be far this at to into starts

it we to I go. got know feel just we’ve going that. some economy. everybody motivation to is prudent. kind the time at which of at look thing way, up, like there think the that biting And things ramp If get and restart back We don’t start to be bit this is but to to is of obviously, also a way lot has everybody to

demand is up there take it’s second we And it potential a was. going that while get I think where to a to to wave? believe back

We very have producers positive reductions have than predicted. faster happening seen people from that’s

tremendous to get there’s to So that’s so going factors balance. amount of many just good The be a statement, there.

enough it’s to through cut burn to But and demand, And going demand got and back once of production through to probably to up gets to it through be to at has all to it’s the XXXX. feels got least to then first long storage. it like get the that’s demand, back half up outpace of

eyeballing this at point. like a just it’s So bit but feel we we’re speculative definitely XXXX,

John Bair

wild looking all. this I currently speculative at get was is what of would what you kind from didn’t more would imply to So a as you to of it might a I But, I And defensive a that point didn’t goes but that mean I it’s that as kind were doing at looking hedges yeah, through deeper imply lay conditions just that in at of to of measure. kind we year curious at consider standpoint you XXXX, be point. year, the on mean be what question. on? you or of might it realized kind

It’s a wild question.

variables many out there right So now.

Jason Brown

question. before production we’re As price saw portion healthy. substantial in the a $XX the paying money, I of financial our to but set bunch of full we’re don’t We kind we able with is, there we’re that our mentioned full at strength. a protect an a reason opportunity for access barrel, of to and the $XX, Bhakti’s hemorrhaging to dividend have not be

be of going the to that’s So consideration. deep part a

at looking start the next If September when Board will that be we at our our K file until got our fiscal XXXX, year-end. meeting, Board’s we and at and

we somewhere And quarterly at there want defensive sorry, dividend could we point, before think and $X.XXX heavy we’ll with if this then. at would we support will maybe But, for where that a preserve I be new dividend, probably our a of be point XXXX, that assets new quarter, cash. could be posture Again, that and be into picture. pretty to and sometime looking whole hopefully, it eye

a So we have to lot of things consider.

John Bair

And, Well, I different be activity aspect that’s Delhi. further would and Denbury in some obviously, there. or potential imagine as their a to developing also, what your there’s activation game could whole ball

So anyways...

Jason Brown

with them. Well, Chris, we’re going not going to what’s on speculate about

be to I Delhi them. pretty hedged they’re they’ve to their me, so that one it’s well cut the their relationship that’s they’re rest back. some but know not cutting going have with is production, of the And their expressed back indicated fields, We cost And that has year. of and management a the of lifting through one lowest on great

So good for news that’s us.

John Bair

it being I line with of from but But potential, the deferred, meant areas there. standpoint No. That further yeah. have developing been

Jason Brown

hope Push back to we point went of went of of Delhi up said, to saw to continue add down, little the wedge, of Ham to and even that. XXXX, that. again. though filling as bit some little David in And we that’s and a a that now, Dome kind But bit production

John Bair

questions, you Thank taking and healthy. my be good. you for safe. all Very Stay

Jason Brown

it. Appreciate

John Bair

Yes.

Operator

Please And instructions] we’ll with [Operator Point. move go next to Rich ahead. Howard Boiling

Rich Howard

Jason. Hi,

Jason Brown

Rich. Hi,

Rich Howard

about of December in price? the with the locked rest be in an quarter, us give WTI, crude, crude you around Could $XX? at we indication the of it basically regardless where year will Have June this at

Jason Brown

hedge, barrels financial locked X,XXX for like though. We day a – Yeah. it’s in a the

forecast going right are oil a to we December. of now, So get said, $XX is the in you is like curve. – There forward

of So which a the oil getting our year is substantial the X,XXX $XX balance se, WTI and have for be of on in make portion entire us the that day, is for per difference hedge a We’ll up. the barrels money, production. between would a

of we’ll XXXX. a be getting effectively, So regardless remainder of for oil barrel, price is $XX what the the of

Rich Howard

I price. is, a to XXXX to at our really situation was come trying for higher chance point doesn’t Is correct? get The the until improve oil company the that with

Jason Brown

That’s right.

Rich Howard

I’m That’s fine. happy Thank much. with you that. Well, very Yes.

Jason Brown

Yes Okay. Great.

Operator

further for And it I’ll no to remarks. turn Brown closing back over questions, Jason with any

Jason Brown

to Well, your in feel Please Thanks, providing thank September. call. questions. or I participation forward with update with everyone. contact you me today’s free David look other any for on to you an

Operator

teleconference. today's conclude that And

disconnect great You lines day. have and your may now a

Evolution Petroleum (EPM) 10 May 202020 Q3 Earnings call transcript