Jason Brown President & Chief Executive Officer November 20, - PowerPoint PPT Presentation

Jason Brown President & Chief Executive Officer November 20, 2019

Disclaimer NYSE American: EPM Forward Looking Statements 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 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. Cautionary Note Regarding Oil and Gas Reserves The United States Securities and Exchange Commission (“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, 2019 were estimated by DeGolyer and MacNaughton, an independent petroleum engineering firm. 2

Company Overview NYSE American: EPM High Quality Long-Lived Assets Overview New York Stock Exchange EPM Shares Outstanding 33.1M Share Price (11/13/2019) $5.74 Market Capitalization (11/13/2019) $190M Common Dividend (Annualized Rate) $0.40 per share Dividend Yield (11/13/2019) 7.0% Gross Liquids Production (85% Oil) ~7,200 BOEPD EPM Net Liquids Production ~2,000 BOEPD Proved Reserves 1 (6/30/2019) 9.0 MMBOE (82% dev) Company History Probable Reserves (6/30/2019) 4.8 MMBOE (87% dev) Evolution Petroleum Founding 2003 Possible Reserves (6/30/2019) 4.3 MMBOE (91% dev) Delhi Field Acquisition September 2003 Cash (9/30/2019) $31.4M ($1/Shr) Hamilton Dome Acquisition November 2019 Debt ($40M+ available capacity) $0.0 3 Note: 1. Reserves and production do not include Hamilton Dome.

Seasoned Leadership NYSE American: EPM Management Team Jason Brown | President & CEO, Founder of LongBow Energy, Co-founder of Halcon Resources, RBC Richardson Barr, Petrohawk David Joe | Senior Vice President & CFO (14 years with EPM), UNOCAL Corp. Board of Directors Robert Herlin | Evolution Petroleum Chairman & Co-founder Edward DiPaolo | Halliburton, Duff & Phelps William Dozier | Vintage Petroleum, Santa Fe Minerals & Amoco Kelly Loyd | JVL Advisors, LLC 1 , RBC Capital Marran Ogilvie | Lehman Brothers, Ferro Corp, LSB Industries  Leadership holds ~8% of the company Note: 1. Insider holdings cited do not include those of JVL Advisors’ funds not managed by Mr. Loyd 4 4

Investment Highlights NYSE American: EPM  High Quality, Low Risk, Long-lived Asset Base  Low decline and substantial cash flow; 20+ years remaining life and 100% Oil and NGLs  Delhi Field potential by extending CO 2 flood to other reservoirs utilizing existing facilities  Attractive Dividend Supports Total Shareholder Return  7% dividend yield at $0.40/share annually backed by 6 consecutive years of cash dividends  Consistent Track Record of Profitability  8 consecutive years of positive net income  Solid Financial Position  Cash: $31.4M in cash at Sep. 30, 2019; Zero Debt , Untapped $40M Credit Facility  Generating Significant Free Cash Flow  Executing A Disciplined Growth Plan  Closed $9.5M Hamilton Dome acquisition November 1, 2019  Positioned to execute future acquisitions with conservative leverage and available cash 5 5

Disciplined Growth Plan NYSE American: EPM Long-lived reserves with value dominated by proved developed  producing cash flow Appropriate for the size and capabilities of Evolution  Assets in locations with reasonable market access and a stable  regulatory environment Focus on assets that have:  Low ongoing capital investment  Short or intermediate runway to incremental cash flow  Efficient and economic at existing scale of development  Not dependent on near term commodity price improvement   Accretive to Cash Flow and Value  Supportive of Company’s Dividend Strategy 6 6

Delhi Field 7

Multiple High Quality, Low Risk, Long-lived Low Decline CO 2 Flood Asset Base NYSE American: EPM Delhi NGL Plant Delhi Field EOR CO 2 Flood • ~7,200 Gross BOE per day • ~85% Louisiana Light Sweet (LLS) oil, connected by pipeline to market • Rich mix of heavier NGLs, or 60% C 4 + C 5 8

Multiple High Quality, Low Risk, Exceptional Resource Long-lived Asset Base NYSE American: EPM Delhi Field Enhanced Oil Recovery (“EOR”) Project 2010 2009 2012-13 Town of Delhi Phase V Phase IV Phase I Phase II Unquantified Phase III Unquantified future expansion in Future Proved downdip thinner reservoirs & eastern Expansion 2018 Undeveloped 2015-17 phase – dependent on oil price PUD Infill (“PUD”) Infill Drilling in 2011 Program Phases I & II Exceptional Resource Key Advantages  No Louisiana oil severance taxes (at 12.5%)  418 MMBO of gross original oil in place until payout  At fixed $58 oil price, proved reserves extend  Oil transported by pipeline from field – no field life over 20 years current capacity constraints  Over 13,600 gross acres in units held by  Delhi crude price based on LLS pricing production (current premium to WTI) 9 9

Multiple High Quality, Low Risk, Long-lived Minimal Ongoing Capital Expenditures Asset Base NYSE American: EPM Delhi Field Net Capital Expenditures $8,000 $7,000 $6,000 $5,430 $5,359 $5,200 $5,000 $’s in 000’s $4,000 $3,000 $2,397 $2,292 $2,000 $1,000 $0 FY2015 FY2016 FY2017 FY2018 FY2019 Well Integrity Field Enhancement Facilities/Other New Drilling  Capex averaged only 12% of revenue over the last five fiscal years Note: Excludes NGL Plant net capital expenditure of ~$27M. 10 10

Hamilton Dome Field 11

Multiple High Quality, Low Risk, Long-lived Long-Life Low Decline Oil Acquisition Asset Base NYSE American: EPM Conventional Oil Hamilton Dome Field Key Advantages Hamilton Dome Field 23.51% Non-operated working interest and  19.70% revenue interest (83.79% revenue interest to 8/8ths) Long life reserves - premier field having  produced over 160 MMBO over 100 years 100% Oil production - averaging low single-digit  decline rates Top tier operator - Merit Energy will continue to  operate this field as they have for 20+ years Location Geographically located in NW Wyoming  about twenty miles northwest of Thermopolis in Hot Springs County. Geologically located in the SW part of the  Big Horn Basin producing primarily from the Tensleep and Phosphoria reservoirs from approximately 3,000’ deep. 12 12

Multiple High Quality, Low Risk, Long-lived Hamilton Dome Historical Net Production Asset Base NYSE American: EPM Historical Production Net to Acquired Working Interest 10,000 ~3.4% Decline Since 1974 BOE per Day 1,000 ~0.8% Decline Since 2016 100 1974 1975 1976 1978 1979 1981 1982 1983 1985 1986 1988 1989 1991 1992 1993 1995 1996 1998 1999 2000 2002 2003 2005 2006 2008 2009 2010 2012 2013 2015 2016 2017 2019 Hamilton Dome Production Note: Declines are per annum. 13 13

Company Performance 14

Multiple High Quality, Low Risk, Long-lived Low Decline and Acquisitive Growth Asset Base NYSE American: EPM Illustrative addition EPM Historical Net Production of Hamilton Dome 3,000 2,500 2,000 BOE per Day 1,500 Planned facility downtime 1,000 500 Working interest reversion 0 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Delhi Field Including Hamilton Dome Note: The Hamilton Dome acquisition closed on November 1, 2019. Hamilton Dome production added historically for illustrative purposes only. 15 15

Multiple High Quality, Low Risk, Long-lived Non-Operated Interests Asset Base NYSE American: EPM Delhi Field Interests Metric Costs Revenues Working Interest 23.9% 19.0% Royalty Interests - 7.2% Combined Interests 23.9% 26.2% Hamilton Dome Field Interests Metric Costs Revenues Working Interest 23.5% 19.7% Royalty Interests - - Combined Interests 23.5% 19.7% 16 16