EPM - Earnings call transcript Q2 2021 | Evolution Petroleum Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Evolution Petroleum Second Quarter Fiscal 2021 Earnings Release Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Ryan Stash. Sir, the floor is yours.

Ryan Stash

Thank you. welcome of Petroleum's fiscal and our call everyone, quarter second year afternoon, to earnings Evolution for Good XXXX. Today, financial we'll results and for the be quarter. discussing operating

Brown, Officer; Joining and Evolution Petroleum. Chief are the us of Jason for Financial Officer Chief myself, and Executive Ryan Stash, call President

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

primarily news Our described Jason in yesterday's available of detailed management's information. in focus release, to and operations results, the SEC. and our discussion spending. that over may to remainder update plans beliefs typical currently and and statements this forward-looking available everyone forward-looking in uncertainties on subject filings materially Since are with based President to today prices our expected. will results of from Chief those These that risks on and on volatility numbers like including the for turn oil call Actual affects I'd capital contain Officer, XXXX, our and welcome call and the Evolution, differ will readily listed statements are and assumptions on fiscal Executive key now how Brown. are

Jason Brown

transition. I by for on the work thank and his the company. for joining Ryan. rest our to particularly, this in seamless appreciate today to support second first David interest thanks new you, fiscal diligent everyone, Evolution. would like call. us like also to and and and I'd Stash, our him making XXXX We a their continued Thank Ryan start of team your such Good Joe morning, quarter in earnings Evolution's earnings welcoming call of CFO, with

investment of brings opportunities, company's set nice effort. that With a through skilled banking growing focus experience acquisition on Ryan to the

have prices. increase the encouraged in been by commodity We recent

and However, evidenced COVID-XX futures which disrupt pandemic of as is of all not demand keeps mirror uncertain in the supply crude. ways, the The of yet us the be to in by continues price volatility market. continues to rearview delicate balance and in many

such cannot predict well welcome times we the are we past While we've duration year. positioned of we done volatility, weather are -- this as these to

We costs and continued maintaining balance on have our sustainability ensure and long-term are to. investors focus managing protect to sheet the our accustomed to us that

our Hamilton trailing ability in commodity lender, our credit some Dome, draw our our along value wasted technically I'll will you full in Although strategy, call. giving assets, detail us full we our to completed may no million three year the determination to sixth in negotiating were our amendment to it related Q somewhat with $XX last on recently covenants had have time adding extension, our seen Ryan of a we by in due limited support credit line prices. company in to to acquisition primarily find at in facility. continued our our and discuss to with both to We more conversations with hand which remain both This, operators, the Delhi ways cash financially. later optimize better of continuous on $XX serve and access on to our million that

expiration impact injects of purchases infill December. an about locations XX in and new feet and remaining hope they Delhi continue that contracts see decline. as cubic entered see increase. in or period, with XX of And months, in seen have per by of drilling reservoir initial to rate and a we a did protecting came place during very programs level we COX supply oil to COX get It's production I do remaining pressures COX Delhi. to These year late softening as put derivative also averaged time feet a dropped. and derivatives positions to that restricted the in quarter million we noteworthy to during substantial an to per at Purchased our that day believe we the we at of recent more dividend has pickup to increase sheet balance participate identified long-term at The over settled Delhi. prices. into and happy were in job uptick workovers projects precipitately can such to January to was upside coming of XXXX. that pleased them developed, particularly protect but prices cubic the sheet online the be as outstanding million when be the this XX/XX, tumultuous and our balance assets Our so company production we back runway in last no provide October, We've contracts day were normalized already their numerous needed

We quarter cash earnings this And of debt-free XX, It's we bank $X.X I'm remain of with revenues from QX. positive pleased increase per share. see to $X.XXX quarter. our quarter the X.X% with an undrawn million continue announce $XX of We that, and as ended cash X.X% in recorded issuing million. of December to XX dividend a revolver. a consecutive With in

to the our be the more But all improvement the so when step and only on to commodity XX toward do saw share. and $X.XX February gain hedges first did this more prices. year this the quarter path as XX% and dividend confidence taking consecutive can like it markets in a of the take it makes long-term sense continue steps on when and dividend we'll off paid hope XX in by direction that goal We Board we the we that our in to price. stability of X, addition, March decided by rolled the raising we approved near-term on In more

our return shareholder over the about an Ryan We the through then total I $XX XX million by call dividend financial dividend, and cash over the XXXX. the strategy, flow Ryan? on in now cash landscape. consecutive of cash inception returned and we've provide call now speaking paying We concentrate return. attractive to M&A dividends since up continue With shareholders. will run our our focus and briefly to program outlook in wrap I'll highlights, With to turn the that, our to

Ryan Stash

afternoon out our Jason. refer Form later more Thanks, fiscal the filed December additional details for XX, press some XX-Q quarter release share to look XXXX full and to be XXXX. our second now I'll details ended for financial results for yesterday regarding today. the information and Please likely second for our filed quarter

highlights quarter. second the of some hit for I'll financial the Now

Revenues, the Jason the we quarterly and on hedge mentioned, quarter million. effects ended by payments We consecutive XX% and by mentioned, dividend million the XX X.X% to and our to with per common generated as payment before in the quarterly next of Jason prior As cash cash dividend no paid our $X.XX $X.XXX $X.X shares dividend $XX in increase flow share. excess over increased quarter of the from debt.

our of that We amended the flexible recent base. agreement borrowing more which had adversely also impacting us the covenant credit been December, off, our In full to hedges results. gives rolled our last a current to access incorporate ratio

decrease sheet, as we protected As to our field discussed, Jason in line, the of BOE in the hedges COX purpose lack balance shut-in and [Audio these related are Delhi their and mentioned, production but also, due the a performance of X,XXX per Gap] serve capital. the we've to day

quarters. discussed, line gradually numbers production with over resumption COX work, Jason coming improve conformance the the hope the As of we increased and to see

in XX% to see encouraged however, were average up to increase on is resumption realized prior continuing quarter. $X.X Realized of price are, We NGLs. prices an the entirely the in XX% at price per of COX quarter Lease million quarter increased compared $XX.XX this for for driven by NGL $X This BOE. to the prices expenses improvement operating purchases second Delhi. the million the

here, operating experienced of coming oil at resumed. purchases operating $X.X million. workovers by unchanged now in which test rolled the method we've the to first see that valuation Due quarters, the of in conformance costs environment their to cost the ceiling. and per price We oil lease driven however, of a ceiling Further $XX.XX expect to lease been have some in would, per XXXX, depressed and impacting the at Delhi All last we increases COX expenses prices. remained December $XX.X as result of adversely during the XX, crude impairment the and through XX, average quarterly of price from in noncash exceeding hedges a primarily at XX-month decrease ceiling used test oil few to full our of value for of September properties affected. test a properties this was book test mentioned ceiling times adversely day calculated XXXX, in full million months cost is performed May our for accounting, average gas off, Therefore, $XX.XX as XXXX. In December, cost quarter XX The accounting impairment prescribed rules the ceiling barrel a of five the recorded capitalized was us. trailing had March trailing barrel month our the we using

as is those covering portion million CFO production reminder, a day, expenses new last $XXX,XXX on XXXX. associated consulting of XX, incurrence had and the a is the yearly $X.X our transition and expenses for from As from X listening, G&A expenses our This well of hedges of substantial in quarter. plan. result shorts legal G&A onetime primarily April X,XXX December associated we through equity a increased meeting as increase shareholder barrels and annual a into which to and with cost legal administration with entered

longer in $X.X income carry prior the development in continue volatility, the continue months. loss The was approximately or associated believe higher refunds include of it primarily that million with impairment. approximately still prices, $X.X to for to or share. ceiling We income diluted V in year. At decided to full economic the our loss operator XXXX, receivable by million and no to were expected XX development Our aforementioned net we cost to current which $XX.X expect incur delay we collect. expenditures do be loss this project XX increased driven quarter primarily the for Net we is XX, to at V XX.X% $X.XX Phase V The the Delhi we a XXXX, undeveloped price December benefit field million reserves. planned previously pretax oil $XX.X due proved the to tax fiscal increase Phase $X.X million for our to has expect million per tax that from today's Delhi impairment. to quarter, Due was Phase

the in forward, amounts These time are conformance projects. of Delhi incur not to Dome the the as are X capital workover or expected of to However, but do maintenance be at remaining fiscal resume we Hamilton months additional expect known expenditures XXXX. range this and at to moving approved $XXX,XXX for $XXX,XXX operators

Finally, $XX.X results working fiscal capital of for the increased in to we out turn This after dividends, and cash remarks. slightly Jason with in our facility. quarter. now financial our concludes million, from call and debt back quarter undrawn paying have the final for and X $XXX,XXX $XX I'll over prior credit operations second the million review quarter ended to

Jason Brown

Ryan. Thanks,

and that approved and us at As Delhi from team have We're annual before, and pleased work continue has to emerged plans technical are to the We to high-grade underway had by to of to will with working encouraged projects. are process meetings relationship projects conformance owners be operators, had working fruits operators workover review XXXX. and starting that both time developing see Asset to for from attention Denbury into a invited our our team Delhi. conformance indicated I and mentioned both their with also future Denbury's and we interest our restructuring they're collaborative soon with has effort. invest just our

more nature shut-in We production in are months are increased Hamilton the fiscal these projects and see the our injection of programs is to coming evaluating strategically and second rebound returned the we additive Dome, by hopeful to and oil half expect well are results encouraged and the as wells Merit for year. prices these At in and actions production. to water

technical We continue professionals impressed and being enjoy with that to Merit's with organization. be partners

this CapEx As previously for year expect $XXX,XXX in stated, be $XXX,XXX spend we the remaining. the to range total of to

with of opportunities cash assets our have contribute the to 'XX dividend stabilization been for been continued we As a expenditures decline, We help to reserves, planned take low delayed. additional we're approximately will deal add V participate. economic will discussions in I success, today's fiscal I Delhi development now looking believe $X.X have and that, Phase our continue to plan at is undeveloped Phase forward come. prices that and please operator include further been to and eventual proved XXXX year still line mentioned, should Phase XXXX. of for changed. years net calendar of up position and with operator. at look V We looking to and questions. recent future That in We nothing our where Evolution activity for in diversify prices so the strategically Operator, believe encouraged believe we and by of company. project time, the V opportunities long-lived We're Ryan We development this for or assets previously by to just I with continue expected will able to take term, being begin to our for the forward continue They're add delay, for it field the that and EPM in advantage Phase judicious level open that reserves million of available our to our assess the ready V, our look we to and oil reiterate does but the are great of to the With further disappointed forward were, this we've facilitate economics effort focus and at strategically the development. that selectively to grow in Petroleum. on that of additional said, capital does and moving efforts has the the of we'll course, questions. some that think long being can production

Operator

question White. Please pose first then from today [Operator your announce question. Your is Instructions] for coming John affiliation your

John White

White, Yes. John ROTH Capital.

And kind injection volumes thing. Could you over the got I how but the I good And calendar team. the It's First, your the the dividend congratulations of there amount raising very in is that's rest us great congratulations year? a heritage on give dividend -- a COX style, to call of think move. you're environment, additional late, -- any management Ryan see you joining of and your cautiously. the comments. And do of for and increase progressing the to your on amount true this the

Jason Brown

and have us the other well. well Sure. It's surprised and the many a great well, you guys, did saw you we question, for us John. And for him. write-up thanks how as -- always covering that you pretty Jeff I'm analysts pegged

So of with Dome. up Denbury. COX got has last conversation just there, had and months. some the has at the they've constant we been coverage. appreciate issues And a kind been worked They've Jackson everything over facilities three main few it's

kind of some the fields different COX. share they're making of all So

XXX about So to have the we'd now, range. have XX XX but right like to We'd or to we're limited XX. like

with as the Their the COX. I spring summer, know, you to think issue temperatures, XX consistently we the that the see throughout visibility have summer. going we'll the finished with and repairs be before pretty a But are warmer in summer.

the ramp makeup to of I not what some right COX. it's So up time would call kind to

Does probably a say, to make would seen softening that come late next to already that the doesn't we've at I I or on And rise. quite day the won't would of in decline. climb I production of mean probably COX. to we'll of of We September per expect where XXX reservoir through sense? effects for, XXX production are some to the late We'll But pressures We would give see to That and don't fall winter give going going then temperatures should And that would reservoir February And it continue run a through break. when the up quite running XXX, October it's pressures is bit. us year. start I 'XX, capable in least arrested. think anticipate to year, to to last make of softened but a expect think kind Mcf off. was to most think as 'XX about that and already, maybe hard. will we gas. It's makeup it that all I that we bit of

John White

detail. very, a nice that's very Indeed, Yes.

Operator

Grampp. is next from Please your then affiliation your Your coming question. question announce pose Jeff

Jeff Grampp

with Grampp Jeff It's Northland.

of characterize in get of of on left, and little from still release of shut-in of of guys. added, to given return on curtailed either there's to curious from you there And operations? of kind kind that. comments on terms a what's handle you will, a updated to rally like Is either production to maybe in I that an production way any want could number the prices the normalized you kind think that in kind Just sounds or bit your both depending quantify or incremental and assets get it kind a if be how

Jason Brown

question. a It's Yes. good

at a Let's start bit easier. Hamilton first Dome. It's little

wells, in that X in think, in to the where in of February. XX are gross. January turning thing is they're those January but other We kind a I'm I risk XXX on, X come -- they're where ones a on in on, are the and going XXX, of excited guess X X of sorry, come estimates It's somewhere have kind and and

So would about be X%, what that X%.

there. some barrels X,XXX we're making about think the I a and day of

X,XXX mark. So that should us over push the

I were somewhere XX, before around everything the there. went think in XX, we down,

that not be goal. So that's yet, way a nice back but going all the step we're to towards

a So process, going that say I'd the is which little the pretty through whole -- bit and seen there that's we've -- tighten happen nice. is immediately. up to the this thing And other differentials

the of in $XX off somewhere think I in, WTI. range, all

that will recent on affect I of regulation BIA we've make tends Hamilton stuff. time at on that seen and generally, land affects but certainly of Hamilton wells. or whole of leasing up terms -- on to Dome, It there some particularly and been all silver about nice kind doesn't changes kind of current permits to comment BLM one doing none year, aren't any blow a the but drilling, out, any BLM process. that operations. of that We and that's Dome land, in this is us. drill this new So land lining more

So none of that's affected All us. right.

projects. dynamic to that really been we conformance probably There's on begin you they will already Actually, heard thrilled changed voice, Moving and team, have bit. a of that to technical in Delhi whole were -- were three approved, projects. We have some our has in terms my quickly. pretty as little

technical their technical meet team with to team. Our invited

have to be work selecting Sort We've part doing process to two there, geologists. the go it's kind of of projects between been and and too, of discussion. the teams in really healthy conformance we forth back

talking are In morning, additional on for would going those for make three, the phone were fact, two those that probability. hours pushed probably this now pretty are about I but we to be X.X approvals, up think an two which high X that's

in none have projects So didn't calendar. half of and in we any second XXXX the conformance XXXX

So was of I they think did before a project I the month 'XX. started last conformance July in

So that's be going great. to

of of kind happy adding barrels, about So aside have own be we'll their each pretty and that. from potential conformance which the projects, of

normal back said, terms that's -- of not the and rise a pressure it. just be lack curtailed In it's up. from is Like of a just kind slow I Delhi. the going of really to down production we've curtailed at It's support,

I barrels about think now, February a right were in XX. day X,XXX

-- think So barrels I down, day. line the went a X,XXX COX we at last we're year, when

certainly loss take wedge years that, that and well. maybe guidance. from that's it's back to COX So We we've it down. to at those at there up X.X I basically It's add that take least to there. direction. we're would it the to to got we've probably the the line Hopefully, don't least give up. starts ease that, would to get projects in some a anticipate being us directionally hoping pointing a year, going conformance And production a got us then But really levels. might conformance to get right as make

the ballpark. on you So

Jeff Grampp

have bid-ask onion the side. really acquisition little on federal sellers done, of default and Hamilton has maybe the bailed just given peeling little things more narrow be narrowing, conversely, helps what bit at maybe feeling little confident back commentary a more maybe is assumption my are pricing sellers. a Dome. out. you kind there helpful. kind a our But definitely give that appreciate I us that buyers of been guess Switching that maybe getting That's And that's some may helpful. could that's for Can potential some distress maybe Yes, over and folks bit

what kind you're those kind Just seeing. curious, of of dynamics and playing

Ryan Stash

too. year going well, of Yes. pretty soon we're I'll if it and a mean, of follow-up, the as out I and hit, that I'll to marketed actually think Jason volume, we've in we too. as fit first seen first think sort seeing increase take I will, the deals coming an -- us let Jeff, lot you of

So increase if it's side. confidence, will, good sort that in the on of to seller you see

So that. we seeing That's happening currently are there. out

bid-ask look, -- mean, like just as we we're As I far have. deals few spread, obviously, followed a have guys you seen we've

So things coming start to think spread the out in. I is loosen up bid-ask do there.

get people going to you're come as in naturally and confident curve, the sellers agreement. buyers in see think just I forward more

of taking have think to in I seen any and of participate sellers stock Warberg some kind sort upside. like Earthstone of you deals

you're So see. I that's a to continue to trend think going

some out something night, relying We're right? warrant. to So last northern put

you're So ride sentiment kind -- I and now with take in trend Jason? this of of increases being the wave people as market seeing stock pricing. think the other that's hopefully, willing the to to

Jason Brown

really that with like that things plagued Yes. darn forward clouds We future, industry for and afterwards. range. down our how range, through is there. still take volatility just peaking motivated Sure. The has the We the the that. Because deficit the been can in bid-ask still do. the that's we're that been right of have We're And I down what represents there's to advantage curve goes out kicking seeing a people to would kind that people some looks it now. seeing And which the light like just people is seeing overarchingly, thing and definitely of the to the trying time. say, figure tighten. road long process, of out the strip $XX what now. economy which buying say that's would we were sure was and that of lot flat We the we a of going kind company, like swing Unfortunately, took the pretty looks get to we right on lot We and the are pretty were liability, shake gnarly. I in price. got wellbores contract close pretty think And as really a a quite the good a good stupid. there close. post-COVID to pretty a there fall, and public can't not

than here. swing more three, that's the just would there's we've months, say pretty So price a X involved last But four over I took on good deals.

a And that's where with getting other, we're while some traction that forth, been is good. where motivated And need that the to starting assessment of the and takes to and each track management's with back collectively all to really. understand record that and be, Board into very and we're to build we grow we and get comfortable company, groove a

the than a of the management. company. more the and on on Board not level to we've with paper of to right now. grow being coming kind So our of confident I to that universally like at trade the Their singular getting And debt, all deals I we're extremely now, place motivation agreed cash, to And us. internally -- our table level, some table time shares, some it's and to be able turn. with some right And at the are that feel kind modest think we're Ryan able mentioned, all with our

Operator

then coming question is Erik Please your next from your question. Volfing. pose affiliation announce Your

Erik Volfing

Thanks solid is This Grand taking quarter for with my Eric on question. there. a Congrats Slam.

question about the you board after they talk So you stage is talked which pretty there really involved little their about are my Could early? bit work? what Or a Or more actually of involved? are sort quite gets role? it helping sometimes preliminary about. M&A What's well you maybe they done what source? the was Is at opportunities, you've

Jason Brown

flow. is see Yes. think comes There's generally, of we I in. everything that certainly the -- avenues deal But process

are all we Detrings we to but that banks, the out. just at been The to the smaller and shops weed those for once work. been got sorts RBCs presence investment dedication quickly, that the have and everything all good also looking fast with and we've people, committee You've a up have some Net. and that week, committee the is deals, about of and the the the this. be that meeting but the an Energy the have ones popped comes And a larger large, an have months, to Oaks Tennant doing see Jefferies We've the to in, got has investment year last Board defined having to screening shows move the that very unusual. able formed X tools which pretty investment them We ago, doing

because deals has the that process is of So I guess, in aware quickened, Board been these even earlier the process.

of that doing some the core we pretty solid had has logs with to them a get technical solid. reservoir gun happy the geologic as come way Now deals pretty you tend these I over bit jump time on very, work before very bit, petrophysicists jumped and work together, We're we a lot and got gun do them. and want correcting holidays little labs. on. that along to and team all technical reservoirs. spend a doing of to of and would normally I'm you a petrophysical very the far to digitize quite the I understand

down. you down can't to get be to are are prices stretched to valuations stretch their engineering got Nobody But stretching when a line. bit stretched really wants something technical sell these across little on goal and or the You've valuations.

it to to we need -- structure sure all get and our type that model that is of we've the So we look really in pulling would in corporately his that how focus to we to capital financials us returns be to dividend. able to putting does on make effort of at Ryan the what support

standing that very, of and geologically technically, all very on the firm ways. All footing other

update So kind that months, kind getting the all And that's of been what's Board the the of along an pretty short actually last on. process. of of process, involved has through going in the X weekly

Operator

You White. do from question follow-up a have John coming

John White

projects. When the you as response and was in bit stretching is conformance about. ask with about of engineering I'm the the known about Bob [indiscernible] your I've on to to to worry talked going as long last I But last thing going commentary

Jason Brown

go. I he well that We it what and to a putting you that. little -- they're beat good hammer like a bit this very and That's second sure take team along and guessing and missing not game it's There difficult we're makes together that. -- get a yourself. make really But a we've something. starting got gel, always you're because come really But easy, doesn't and team, that on

Operator

Please Your Bair. coming is then pose affiliation next question. from announce your your question John

John Bayer

Sun I the John last congratulations good didn't and luck sure call to with Ryan, Advisors. on Bayer David him on get the I'm and listening. a retirement. chance Jason, Wealth wish is

Jason Brown

I'm hears sure you. he

share. needed to You heard He went and the just organization. do the friend my dear of he he's help to comment in what in still over a above

So getting to Ryan, a great. very, very helpful It in them was speed. up

John Bayer

gather. try I time. And to here Yes. get certainly, some can a hold I of for to and down get hope Houston him

far of and purchases dividend quarter questions. So so want as callers, increase, previous But echo to and of several anyway, been do COX a and congrats of other have couple questions the answered forth. my as the course, on the

M&A. the to around Going

You -- previously does that Is it? along, gas Is it indicated going Or is of sort we're looking the to still at make that centric that comes more whatever's that sense? best possibilities. some mix? grab acquisition in

Jason Brown

a I bit. reiterate does. that would little It And probably

very about There's gas and interest very a gas flat. cost generally, things that a very low that pretty life, are like focused. evolution-esque long of that in it's lot narrowly is it's Our it's lifting I

us. really has well works nature So that life for long that it

super is gas transportation. sensitive midstream However, to marketing,

So midstream the it in is marketing all-in really game.

gas and efforts, we're projects. looking our at So

this be fact, the say They morning. one would looking just we East to I close East in at to get -- carthage over Sabine In up was the to Pass, probably going in Texas. something Texas Barnett to got let's look really pipeline the

that's to been a that's of long-term There's into going start to getting goal You And bit a get gas. just LNG an know Oklahoma, transport but now, I too i.e., start you to that anywhere for little right it further type the deflated market. it's much be sustainable market, away. getting

whatnot, Eagle in trying compete to over you're If think there, the West and the price I a side product. Texas associated as much and too and produce with with going on over get coming gas to producing gas oil all you to get and Ford there's people deflated to

does -- we special. So that like it's give you any to it, pretty about got be but

John Bayer

And the still in past, then is you Louisiana of your premium up for bit in suite, a that it. regard? get that Got a holding you mentioned Sure.

Jason Brown

It good A John. question, it's really No, not. is.

$X.XX to bucks, In a it's over. couple $X fact, of

all-in half is trade we for are transport $X I year, above That through 'XX, our off at said, WTI the would 'XX is of next hang what anticipate going probably think the of in that LLS $X.XX to to $X.XX least is first probably being about somewhere to the probably at. price. $X.XX

So right now, -- back. we net $X WTI $X.XX, under about $X would be

WTI. reserve So was I report just of $X.XX generally last over reference, as a have think, point year's been, we

mean wouldn't over WTI. that that So what, was, LLS $X

$X.XX back WTI. $X.XX have net us our would So still above

that's So only also bit a hit, a the price quite oil but differential. not of been

what the to see right of question us. revenue to you're asking kind translates that for that So

well-known in there? and probably after I to ARM, called work you company going anticipate transport to Ryan? I all-in, I with a consultants, think everything, be gathering our under. What marketing for here Somewhere say, it's $X.XX realized of that we look kind and $X do us, forecast. mean, $X.XX in at would Houston pretty probably in to our marketing

Ryan Stash

I for factors mentioned. better we're LLS going on relative WTI. it's but dependent moves that LLS, to see is obviously, how on Jason we're transport as basis, mean, to the improves, to WTI extent Obviously, right, pricing to compared -- fairly pay subject to right. the that's we fixed, Yes, what

John Bayer

quick question. Okay. is could that you And and last really any are then one face that far issues to given methane course, headwinds right of ESG. picture Do forth, now? that Unfortunately, one down wondering, like issue the escape faces, in with older have be and or industry the as and not might these so potentially that fields I'm of the an addressing anything CapEx just be And the all regards higher you where as in road forth. so

Jason Brown

tie think where ourselves way, the have going face we in public of assets not. going and opinion something our favorable practical our growing good general, regardless to That's situation. question. those the seems or is quarter -- That's in a that like one pretty lot as opinions industry, a now really in of of We to are is are

So up gas talking about making any Hamilton dome first. We're just not there.

relationship operation. a an not anywhere. great Environmentally, VOCs absolutely has going wonderful really merit runs and the there's any So got BLM

So about we Delhi, actually environmental better lot that spend situation. in XX% I'm comes of COX concerned to CapEx Delhi, In that that make on would more industry. the In friendly. from having even a things of not buy we're

from So XXX,XXX on fairly substantial. that's road, an cars that's basis removing the annual

capture any and agree I, I of benefit looking I carbon and CapEx us of bit their because better So think you're be of we in I Delhi. other would to infrastructure ways little better. Ryan? brought ESG got one. speaking efforts at oil at a some at going COX. up asking, to this getting make overarchingly, looking there Board, required the can a as kind specifically policies to a place, they've We're do But the focus -- shape partner is that foresee pretty of some question was don't in wise. that, to improve a you Denbury some with Ryan, can relative know companies. and anything of that to ESG we're it that see management, our we the Ryan that being get sort kind good really And which other spending do to we're But is good with actually

Ryan Stash

and Board No, it's list higher term. address the a the on our sort quite agree. mean the as Yes. here I level ESG of absolutely our at and now, under investing definitely is is in no to well, industry focus you community, near in of doubt, the just know kind right I Spotlight

John Bayer

your suggest fact And just And utilizing COX. up speak. whatever would the you using just all thought. that to it blue to that it, market, you off or taking and the website a taking attention on some bring maybe are Maybe so Denbury green the that and COX to and from ought to colors change as well maybe that

Jason Brown

must this have website a reworking You in we're bug boardroom, our our month.

include -- now. that So and definitely to it's going

So yes.

Operator

are queue. no more There questions in

Jason Brown

Thank forward early was an next I you update That with Please to for in It Ryan should right. free be conference great. our contact your today. look any providing May. All other to feel participation call. or on questions. myself with you

Ryan Stash

Thank everyone. you. Thanks,

Operator

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Evolution Petroleum (EPM) 4 Feb 212021 Q2 Earnings call transcript