Evolution Petroleum Corporation Corporate Presentation – February 2018 Corporate Presentation – February 2018 1
Corporate Presentation – February 2018 Forwar ard Looking king Stat atements ements This presentation contains “forward -looking statements. ” Such statements may relate to capital expenditures, drilling and exploitation activities, production efforts and sales volumes, Proved, Probable, and Possible reserves, operating and administrative costs, future operating or financial results, cash flow and anticipated liquidity, business strategy and potential property acquisitions. These forward-looking statements are generally accompanied by words such as “estimated”, “projected”, “potential”, “anticipated”, “forecasted” or other words that convey the uncertainty of future events or outcomes. Although we believe the expectations and forecasts reflected in these and other forward-looking statements are reasonable, we can give no assurance they will prove to have been correct. These statements are based on our current plans and assumptions and are subject to a number of risks and uncertainties as further outlined in our most recent Forms 10-K and 10-Q. Therefore, the actual results may differ materially from the expectations, estimates or assumptions expressed in or implied by any forward-looking statement and we undertake no obligation to update these estimates for events after this presentation. Cau auti tiona onary Note re regar ardi ding ng Oi Oil an and Gas as Res eser erves es – SEC rules allow oil and gas companies to disclose not only Proved reserves, but also Probable and Possible reserves that meet the SEC’s definitions of such terms. We disclose Proved, Probable and Possible reserves in our filings with the SEC and this presentation. Estimates of Probable and Possible reserves are by their nature more speculative than estimates of Proved reserves and are subject to greater uncertainties, and accordingly the likelihood of recovering those reserves is subject to substantially greater risk. Our reserves as of June 30, 2017 were estimated by DeGolyer and MacNaughton (“D&M”), an independent petroleum engineering firm. 2
Corporate Presentation – February 2018 Texas s / Gulf lf Coas ast t Focus Overview (Quarter ended December 31, 2017) New York Stock Exchange EPM Shares Outstanding 33.1 MM Share Price (2/13/2018) $8.00 Delhi Field Total Equity Value (2/13/2018) $265 MM Common Stock Dividend (Annual Rate) $0.40 per share Dividend Yield (2/13/2018) 5.0% Houston Headquarters Delhi Gross Oil Production (87% Oil) 7,370 BOPD Delhi Gross NGL Production 1,079 BOEPD EPM Avg Net Production (26.2% NRI) 2,215 BOEPD ▪ Evolution Petroleum Founded in 2003 by Bob Herlin, Chairman Proved Reserves (6/30/2017) 10.1 MMBOE ▪ Delhi Field Acquired in 2003 Net Working Capital $27.6 MM Debt ( $40 MM+ Avail Capacity ) None 3
Corporate Presentation – February 2018 Core Principles and Objectives ▪ Distribute 40-50% of Cash Flow as Dividends ▪ Tax Reform makes C- Corp’s much more Tax -Efficient ▪ Reserve 40-50% of Cash Flow for Value- Driven Reinvestment in Portfolio ▪ Diversify Asset Base with Acquisitions Seeking Geologic and Product Mix Diversity ▪ ▪ Maintain Solid Financial Position Increase Scale for Public Market ▪ 4
Corporate Presentation – February 2018 EPM M Divide dend nd Hi History y vs WTI Oil Pric rices Cumulative Payout Dec 2013 thru Dec 2017: $0.14 $140 $39.5 MM ($1.205 per share) $0.12 $120 Mar-18 Dividend $0.10 $0.10 $100 $0.08 $80 Quarterly WTI Avg Dividend Oil Prices Rate per $0.06 $60 (Bloomberg) Share $0.04 $40 $0.02 $20 $0.00 $- Common Stock Dividends WTI Oil Prices (Qtr Avg) 5
Corporate Presentation – February 2018 In Investment stment Con onside sideratio rations ns ▪ High Quality, Long-lived Asset Base ▪ Steady Cash Flow from Very Large Delhi Field Resource ▪ Potential Production Increases from Continuing Development ▪ 12 well Infill Drilling Program Planned to Start March 2018 ▪ Solid Financial Position ▪ Debt Free Balance Sheet w/ Substantial Working Capital Position ▪ Provides Stability to Weather Industry Cycles ▪ Well-Positioned to Capitalize on New Growth Opportunities ▪ Attractive Dividend Yield of 5.0% ▪ Flexible Share Repurchase Program Available 6
Corporate Presentation – February 2018 Summary Financial Statements December 31, 2017 Amounts in $000’s, except EPS Income In me St Stateme ement nt ( Six iscal YTD ) Bala lance ce Sheet x Month ths s Fis Cash $ 25,744 Delhi field revenues $ 19,605 Other current assets 4,902 Lease operating expenses 5,806 Property and equipment 60,126 DD&A and accretion 3,197 Other assets 260 G&A expenses and other 3,247 Tot otal assets ets $ 91,03 ,032 Current liabilities $ 3,061 Income before income taxes $ 7,355 Long-term debt -- Income tax (benefit) (4,662) Deferred taxes and ARO 11,877 Net et in income ome $ 12,017 Stockholders’ equity 76,094 Earnings s per share e (ful ully y dil ilut uted ed) $ 0.36 Tot otal li liabi bilitie ties s and equity ty $ 91 91,03 ,032 7
Corporate Presentation – February 2018 Six + Years of Increasing Revenues and Positive Net Income $40 Revenues & Net Income ($MM) $35 $30 $25 (a) $20 $15 (b) $10 $5 $0 2012 2013 2014 2015 2016 2017 2018 Revenues Net Income Fiscal YTD 2 Quarters (a) Includes Litigation Settlement (b) Includes Tax Reform 8
Corporate Presentation – February 2018 Delhi Field Recycle Facility and NGL Plant Foundation Cash Flow Asset for Evolution Petroleum 9
Corporate Presentation – February 2018 Delh lhi Fie ield ld EOR Pro rojec ect t Developme opment nt Exception ptional al resou ource ce: Other er advant antage ges: s: 418 MMBO of gross original oil in place No LA oil severance taxes (12.5%) ▪ ▪ ▪ 323 MMBO OOIP in proved flood area until financial payout of the project ▪ 195 MMBO production prior to EOR ▪ Oil transported by pipeline ▪ 16.0 MMBO since CO 2 flood began ▪ Delhi crude sells at LLS pricing 10
Corporate Presentation – February 2018 Delhi Fi Field d Daily ly Prod roductio uction n (Terti tiar ary) Net Gross Gro ross ss and Net et BOE per Day BOEPD BOEPD 10,000 4,000 9,000 3,500 8,000 3,000 7,000 2,500 6,000 Combined Interests 5,000 2,000 4,000 1,500 3,000 Reversion of 1,000 Working Interest Royalty Interests Only 2,000 Nov 2014 500 1,000 - - Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Gross BOEPD Total Net BOEPD 11
Corporate Presentation – February 2018 EPM Interests in the Delhi Field Costs Revenues Working Interest (a) 23.9% 19.0% Royalty Interests None 7.2% Combined Interests 23.9% 26.2% (a) Field Payout and Reversion of Working Interest to EPM Occurred Effective November 1, 2014 (Working Interest in the Mengel Sand also 23.9%) 12
Corporate Presentation – February 2018 Delhi Revenue and Field Operating Margin per BOE (YE June 30) $70 Rev / BOE $61.52 $60 $49.53 $50 $44.88 (69% of Rev) $39.71 $40 (69% of Rev) $30 (70% of Rev) (65% of Rev) $20 $10 $- YE Ju Y Jun 2 n 2015 015 Y YE Ju Jun 2 n 2016 016 YE Ju Y Jun 2 n 2017 017 FY FYTD TD Dec Dec 20 2017 17 LO LOE CO CO2 Costs 2 Costs Field Fie ld Operat Operating Margi Margin Field Operating Margins of $42.52 (2015) , $25.95 (2016), $30.78 (2017) and $34.86 (YTD Dec 2017), respectively 13
Corporate Presentation – February 2018 Delhi Capital Spending by Year ($000’s) $8,000 Cum Capex – Dec 2017 $7,000 NGL Plant - $26.6MM * Other Spending - $10.9MM $6,000 $5,500 (Post Reversion Nov 2014) $5,359 $5,000 $4,000 Forecast $3,000 $2,397 $2,292 $2,000 $1,500 $901 $1,000 Forecast $0 FY 2015 FY 2016 FY 2017 1H 2018 2H 2018e 1H 2019e Well Integrity Field Enhancement Facilities/Other New Drilling * Above Chart Excludes NGL Plant – $26.6 MM Field Enhancement ~ $4MM 14
Corporate Presentation – February 2018 Pro roved d Reserves s – June e 2017 MBbls Proved Reserves assume 14 14.3% 12,000 Incremental CO2 Total 10,000 Recovery (Up from Proved Reserves 13.0% 0% in 2015) 10,058 8,000 MBOE Reserve Reports 6,000 Prepared by DeGolyer and Revision Gains 4,000 Oil Only + 11% MacNaughton 2,000 Undevelop eloped ed Reserves: es: - Infill Drilling Program $4.7MM – 12 Wells PDP-NGL (8 Wells in Jun 2017 PUD) PDP-Oil PUD-BOE Future Dev Costs for PDP-BOE Test Site 5 are approx $10.9MM - $6.97 7 per Bbl 15
Corporate Presentation – February 2018 Delhi NGL Plant Currently Producing ~1,150 Bbls NGL’s per day Very Rich NGL Mix (ITD): • NGL Plant Online Dec 2016 NGL Component % of Stream • Engineered Solution to CO2 Inlet Ethane 2.9% Processing Installed Aug 2017 Propane 26.0% • Operating at Effective Capacity Butanes (ISO + Normal) 33.1% • GE Turbine also at Capacity Pentanes Plus (C5+) 38.0% • NGL Avg Net Price ~52% WTI Total 100.0% 16
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