null

null

null

null

null

null

null

null

null

Low leverage; debt/equity ~0.1x, minimal long-term debt (~$10M), so a 20% rate rise adds negligible interest burden under $2M annually.

Low sensitivity; minimal floating-rate debt exposure means a 20% rate increase has immaterial impact on net income, under 2% EPS effect.

High intensity; OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.

Primarily domestic U.S. operator (Gulf Coast, SCOOP/STACK, Williston); no significant international geopolitical chokepoint exposure in supply chain.

Essentially zero; Evolution Petroleum generates ~100% of revenue domestically with no material international revenue markets or currency exposure.

100% U.S.-domestic revenue; operations in Louisiana, Oklahoma, North Dakota, Wyoming — no sovereign currency devaluation risk applicable.

High intensity; commodities: Crude Oil, Natural Gas, Coal, Refined Petroleum Products, Uranium, Steel (equipment); geopolitical: OPEC+ supply decisions and Russia-Ukraine conflict drive price volatility.

Denbury Resources (now ExxonMobil) as CO2 EOR operator for Delhi field represents historically >50% of production revenue — high single-operator dependency.

Not a cloud-dependent business; operates as a non-op E&P company. Cloud provider termination would be minor operational nuisance, not existential.

Non-operated working interest E&P; secondary revenue from royalty interests. No SaaS or cloud-infrastructure-dependent business model present.

Minimal API coupling risk; company uses standard oil-and-gas production reporting software with no proprietary platform dependency.

Low Howey risk; revenue from hydrocarbon production and sale of physical commodities clearly qualifies as commodity sales, not securities.

High

Minimal GDPR/CCPA exposure; no consumer data collected, operations are B2B commodity sales with limited personal data handling requirements.

Negligible antitrust risk; small-cap non-operator with <0.1% U.S. oil production market share, no pricing power or market concentration concerns.

High burden; regimes: EPA, FERC, DOE, CFTC, OSHA, SEC; Accelerating emissions mandates and methane rules threaten capex economics.

~100% transactional; revenue is spot and contract crude oil/NGL/gas sales with no subscription or retainer component.

Commodity price-linked production revenue; monetization entirely dependent on realized hydrocarbon prices and working interest production volumes.

Price-taker model; realized prices tied to WTI/Henry Hub benchmarks with minimal differentials. No proprietary pricing architecture to stress-test.

Zero independent pricing power; company accepts market commodity prices as a non-operator price-taker in competitive global energy markets.

Gross margins typically 60–75% at $70–80 WTI; highly variable with commodity prices, with LOE running ~$15–20/BOE.

No free-rider leakage risk; physical commodity sales with no digital product or public-good characteristics. Churn concept not applicable.

Highly sublinear; ~20–25 employees support current operations. Revenue can double via acquisitions with minimal incremental headcount required.

Growth capital-intensive but not headcount-intensive; doubling revenue requires acquisition capital deployment, not proportional staff increases.

Not applicable; Evolution Petroleum is not a franchise business and has no franchise network or compliance drift risk.

At 10x scale, unit economics remain commodity-price-dependent; CAC is acquisition deal cost, not marketing spend. LOE/BOE scalability is the key lever.

No network effects present; oil and gas production is a physical commodity business with no user-network dynamics or platform effects.

1.2% Return on Assets (Excellent)

Low recession resistance; oil demand contracts during recessions, directly compressing revenue and potentially impacting dividend sustainability.

Crude oil and NGL purchasers — major integrated oil companies and midstream marketers buying at wellhead under short-term contracts.

Natural gas purchasers — utility and industrial buyers; concentration risk exists as small non-op company may have 1–2 purchasers per asset.

["11-0000 Management Occupations", "13-0000 Business and Financial Operations Occupations", "15-0000 Computer and Mathematical Occupations", "17-0000 Architecture and Engineering Occupations", "19-0000 Life, Physical, and Social Science Occupations", "23-0000 Legal Occupations", "41-0000 Sales and Related Occupations", "43-0000 Office and Administrative Support Occupations", "47-0000 Construction and Extraction Occupations", "49-0000 Installation, Maintenance, and Repair Occupations", "53-0000 Transportation and Material Moving Occupations"]

0.33 (HIL — ~33% of characteristic roles agent-automatable)

Minimal organic capex; capital allocated almost entirely to bolt-on non-operated working interest acquisitions rather than legacy infrastructure replacement.

0001006655

EPM