This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Evolution Petroleum's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Let's talk about Delhi in particular. The improvements there are quite numerous. Over the last year, production response for the first 2 phases came on sooner than expected. Production grew more rapidly than expected, and the project has actually required less CO2 than projected. We also benefited from higher oil prices, especially since the first of the calendar year '11 due to the substantial premium that our Delhi oil received compared to NYMEX WTI oil price. The oil we sell at Delhi is tied to Louisiana Light Sweet price, which tracks Brent or imported oil. And that premium to WTI was more than $12 a barrel in the fourth fiscal quarter or about 12%, and then actually that premium has increased through the near term. In fact, our most recent realized oil price at Delhi is substantially higher than the oil prices utilized in our SEC reserves report and in our forward oil price curve evaluation. As a result of these various factors and the continued substantial investment during the past year by the operator, our independent reserve engineers calculated that the reversionary working interest payout has accelerated to calendar 2013 year end. That is more than 2 years earlier than projected in last year's report. At payout, our net revenue interest at Delhi increases from the current 7.4% to about 26.5%, and we would bear at that time a 24% working interest share of operating costs and future capital expenditures. Due to the accelerated payout date, we now projected -- that should bear our 24% share capital expenditures beginning in 2014, which will include the last phase of the proved reserves development. But our share of capital expenditures will still be far less than our net operating cash flow from Delhi that same year.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs