Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2014 | Feb. 02, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | EVOLUTION PETROLEUM CORP | |
Entity Central Index Key | 1006655 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 32,860,087 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $22,523,164 | $23,940,514 |
Receivables | 2,924,570 | 1,457,212 |
Deferred tax asset | 159,624 | 159,624 |
Prepaid expenses and other current assets | 677,756 | 747,453 |
Total current assets | 26,285,114 | 26,304,803 |
Oil and natural gas property and equipment, net (full-cost method of accounting) | 38,536,733 | 37,822,070 |
Other property and equipment, net | 333,001 | 424,827 |
Total property and equipment | 38,869,734 | 38,246,897 |
Other assets | 578,405 | 464,052 |
Total assets | 65,733,253 | 65,015,752 |
Current liabilities | ||
Accounts payable | 4,821,014 | 441,722 |
State and federal income taxes payable | 45,392 | 0 |
Accrued liabilities and other | 811,821 | 2,558,004 |
Total current liabilities | 5,678,227 | 2,999,726 |
Long term liabilities | ||
Deferred income taxes | 10,553,861 | 9,897,272 |
Asset retirement obligations | 727,124 | 205,512 |
Deferred rent | 27,148 | 35,720 |
Total liabilities | 16,986,360 | 13,138,230 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized:8.5% Series A Cumulative Preferred Stock, 1,000,000 shares designated, 317,319 shares issued and outstanding at December 31, 2014 and June 30, 2014 with a liquidation preference of $7,932,975 ($25.00 per share) | 317 | 317 |
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 32,860,087 shares and 32,615,646 as of December 31, 2014 and June 30, 2014, respectively | 32,860 | 32,615 |
Additional paid-in capital | 36,035,076 | 34,632,377 |
Retained earnings | 12,678,640 | 17,212,213 |
Total stockholders’ equity | 48,746,893 | 51,877,522 |
Total liabilities and stockholders’ equity | $65,733,253 | $65,015,752 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Jun. 30, 2014 | |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 32,860,087 | 32,615,646 |
Common stock, shares issued | 32,860,087 | 32,615,646 |
Series A Cumulative Preferred Stock | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Cumulative Preferred Stock (as a percent) | 8.50% | 8.50% |
Preferred stock, shares issued | 317,319 | 317,319 |
Preferred stock, shares outstanding | 317,319 | 317,319 |
Preferred stock, total liquidation preference (in dollars) | $7,932,975 | $7,932,975 |
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |||||
Revenues | ||||||||
Total revenues | $7,708,067 | $4,392,289 | $11,712,894 | $9,025,988 | ||||
Operating costs | ||||||||
Depreciation, depletion and amortization | 917,757 | 327,168 | 1,287,107 | 636,841 | ||||
Accretion of discount on asset retirement obligations | 8,137 | 12,418 | 12,773 | 25,346 | ||||
General and administrative expenses | 1,606,501 | [1] | 2,642,082 | [1] | 3,111,094 | [1] | 4,571,033 | [1] |
Restructuring charges | -5,431 | [2] | 1,332,186 | [2] | -5,431 | [2] | 1,332,186 | [2] |
Total operating costs | 5,545,773 | 4,550,384 | 7,709,734 | 7,220,186 | ||||
Income (loss) from operations | 2,162,294 | -158,095 | 4,003,160 | 1,805,802 | ||||
Other | ||||||||
Interest income | 7,662 | 7,701 | 20,425 | 15,404 | ||||
Interest (expense) | -12,159 | -16,582 | -30,619 | -33,095 | ||||
Income (loss) before income taxes | 2,157,797 | -166,976 | 3,992,966 | 1,788,111 | ||||
Income tax provision | 917,879 | 241,907 | 1,624,038 | 724,543 | ||||
Net income (loss) attributable to the Company | 1,239,918 | -408,883 | 2,368,928 | 1,063,568 | ||||
Dividends on preferred stock | 168,576 | 168,576 | 337,151 | 337,151 | ||||
Net income (loss) available to common stockholders | 1,071,342 | -577,459 | 2,031,777 | 726,417 | ||||
Earnings (loss) per common share | ||||||||
Basic (in dollars per share) | $0.03 | ($0.02) | $0.06 | $0.03 | ||||
Diluted (in dollars per share) | $0.03 | ($0.02) | $0.06 | $0.02 | ||||
Weighted average number of common shares | ||||||||
Basic (in shares) | 32,825,631 | 30,063,676 | 32,754,016 | 29,335,498 | ||||
Diluted (in shares) | 32,947,280 | 30,063,676 | 32,884,754 | 32,377,918 | ||||
Delhi Field | ||||||||
Revenues | ||||||||
Total revenues | 7,644,831 | 4,130,236 | 11,513,433 | 8,560,047 | ||||
Operating costs | ||||||||
Production costs | 2,817,866 | 0 | 2,817,866 | 0 | ||||
Artificial Lift Technology | ||||||||
Revenues | ||||||||
Total revenues | 63,236 | 189,894 | 179,092 | 331,985 | ||||
Operating costs | ||||||||
Production costs | 191,553 | 153,221 | 388,913 | 316,970 | ||||
Other Properties | ||||||||
Revenues | ||||||||
Total revenues | 0 | 72,159 | 20,369 | 133,956 | ||||
Operating costs | ||||||||
Production costs | $9,390 | $83,309 | $97,412 | $337,810 | ||||
[1] | General and administrative expenses for the three months ended December 31, 2014 and 2013 included non-cash stock-based compensation expense of $245,020 and $316,422, respectively. For the corresponding six month periods, non-cash stock-based compensation expense was $488,357 and $689,860, respectively. | |||||||
[2] | Restructuring charges for the three and six months ended December 31, 2013 included non-cash stock-based compensation expense of $376,365 and $376,365, respectively. |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation expense | $488,357 | $689,860 | ||
General and administrative expenses | ||||
Stock-based compensation expense | 245,020 | 316,422 | 488,357 | 689,860 |
Restructuring charges | ||||
Stock-based compensation expense | $376,365 | $376,365 |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Cash Flows (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities | ||
Net income attributable to the Company | $2,368,928 | $1,063,568 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 1,311,425 | 657,265 |
Stock-based compensation | 488,357 | 689,860 |
Stock-based compensation related to restructuring | 0 | 376,365 |
Accretion of discount on asset retirement obligations | 12,773 | 25,346 |
Settlements of asset retirement obligations | -220,522 | -57,247 |
Deferred income taxes | 656,589 | 329,667 |
Deferred rent | -8,574 | -8,574 |
Changes in operating assets and liabilities: | ||
Receivables from oil and natural gas sales | -1,454,866 | 135,292 |
Receivables from income taxes and other | -12,492 | -11,170 |
Due from joint interest partner | 0 | 4,687 |
Prepaid expenses and other current assets | 69,697 | -367,426 |
Accounts payable and accrued expenses | 1,384,201 | 222,968 |
Income taxes payable | 45,392 | -233,548 |
Net cash provided by operating activities | 4,640,908 | 2,827,053 |
Cash flows from investing activities | ||
Proceeds from asset sales | 389,166 | 544,442 |
Capital expenditures for oil and natural gas properties | -1,136 | -856,943 |
Capital expenditures for other property and equipment | -311,075 | -9,637 |
Other assets | -84,341 | -5,957 |
Net cash used in investing activities | -7,386 | -328,095 |
Cash flows from financing activities | ||
Proceeds on exercise of stock options | 51,600 | 2,141,500 |
Cash dividends to preferred stockholders | -337,151 | -337,151 |
Cash dividends to common stockholders | -6,565,350 | -3,205,135 |
Acquisitions of treasury stock | -58,660 | -1,127,801 |
Tax benefits related to stock-based compensation | 921,581 | 386,976 |
Maturity of certificate of deposit | 0 | 250,000 |
Recovery of short swing profits | -62,958 | 0 |
Deferred loan costs | 66 | 6,850 |
Net cash used in financing activities | -6,050,872 | -1,884,761 |
Net increase (decrease) in cash and cash equivalents | -1,417,350 | 614,197 |
Cash and cash equivalents, beginning of period | 23,940,514 | 24,928,585 |
Cash and cash equivalents, end of period | 22,523,164 | 25,542,782 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 100,000 | 755,564 |
Non-cash transactions: | ||
Change in accounts payable used to acquire property and equipment | 1,410,420 | -223,846 |
Oil and natural gas property costs incurred through recognition of asset retirement obligations | 562,482 | 48,988 |
Previously acquired Company common shares swapped by holders to pay stock option exercise price | $0 | $618,606 |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statement of Changes in Stockholder's Equity (USD $) | Total | Preferred | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Beginning Balance at Jun. 30, 2014 | $51,877,522 | $317 | $32,615 | $34,632,377 | $17,212,213 | $0 |
Balance (in shares), beginning at Jun. 30, 2014 | 32,615,646 | 317,319 | 32,615,646 | |||
Issuance of restricted common stock (in shares) | 213,466 | |||||
Issuance of restricted common stock | 66 | 214 | -148 | |||
Exercise of stock options (in shares) | 37,000 | |||||
Exercise of stock options | 51,600 | 37 | 51,563 | |||
Acquisitions of treasury stock (in shares) | -6,025 | |||||
Acquisitions of treasury stock | -58,660 | -58,660 | ||||
Retirements of treasury stock | -6 | -58,654 | 58,660 | |||
Stock-based compensation | 488,357 | 488,357 | ||||
Tax benefits related to stock-based compensation | 921,581 | 921,581 | ||||
Net income attributable to the Company | 2,368,928 | 2,368,928 | ||||
Common stock cash dividends | -6,565,350 | -6,565,350 | ||||
Preferred stock cash dividends | -337,151 | -337,151 | ||||
Ending Balance at Dec. 31, 2014 | $48,746,893 | $317 | $32,860 | $36,035,076 | $12,678,640 | $0 |
Balance (in shares), ending at Dec. 31, 2014 | 32,860,087 | 317,319 | 32,860,087 |
Organization_and_Basis_of_Prep
Organization and Basis of Preparation | 6 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Preparation | Organization and Basis of Preparation |
Nature of Operations. Evolution Petroleum Corporation ("EPM") and its subsidiaries (the "Company", "we", "our" or "us"), is an independent petroleum company headquartered in Houston, Texas and incorporated under the laws of the State of Nevada. We are engaged primarily in the development of incremental oil and gas reserves within known oil and gas resources for our shareholders and customers utilizing conventional and proprietary technology. | |
Interim Financial Statements. The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the appropriate rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. All adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been included. The interim financial information and notes hereto should be read in conjunction with the Company’s 2014 Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as filed with the SEC. The results of operations for interim periods are not necessarily indicative of results to be expected for a full fiscal year. | |
Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year include certain reclassifications that were made to conform to the current presentation. Such reclassifications have no impact on previously reported net income or stockholders' equity. | |
Use of Estimates. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. | |
New Accounting Pronouncement. In June 2014, the FASB issued FASB Accounting Standards Update No. 2014-12 “Compensation-Stock Compensation (Topic 718) : Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). | |
The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. | |
The amendment in this update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Receivables
Receivables | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Receivables | Receivables | |||||||
As of December 31, 2014 and June 30, 2014 our receivables consisted of the following: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Receivables from oil and gas sales | $ | 2,198,912 | $ | 1,456,146 | ||||
Receivable from suspended overriding royalty interest (a) | 712,100 | — | ||||||
Other | 13,558 | 1,066 | ||||||
Receivables | $ | 2,924,570 | $ | 1,457,212 | ||||
(a) In connection with the lawsuit between the Company and Denbury Resources, Inc. ("Denbury") regarding the provisions of the May 8, 2006 Purchase and Sale Agreements, Denbury has unilaterally suspended payments related to 2.891545% of our overriding royalty interest ("ORRI") in the Delhi Holt Bryant Unit effective November 1, 2014. Accordingly, rather than remitting our usual 7.405201% ORRI and royalty payment, which Denbury has been paying the Company since 2006, Denbury arbitrarily applied a 2.891545% reduction for two months of ORRI by reducing their payment to the Company for December 2014 sales without the Company's consent. Such amounts are being held in suspense by Denbury pending resolution of the litigation. The Company's position is that Denbury has no legal basis for applying such a reduction and withholding our funds. [See Note 15 - Commitments and Contingencies.] |
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets | |||||||
As of December 31, 2014 and June 30, 2014 our prepaid expenses and other current assets consisted of the following: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Prepaid insurance | $ | 155,827 | $ | 169,288 | ||||
Equipment inventory | 28,898 | 85,888 | ||||||
Prepaid other | 34,320 | 42,800 | ||||||
Retainers and deposits | 26,978 | 29,478 | ||||||
Prepaid federal and Louisiana income taxes | 431,733 | 419,999 | ||||||
Prepaid expenses and other current assets | $ | 677,756 | $ | 747,453 | ||||
Property_and_Equipment
Property and Equipment | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
As of December 31, 2014 and June 30, 2014 our oil and natural gas properties and other property and equipment consisted of the following: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Oil and natural gas properties | ||||||||
Property costs subject to amortization | $ | 48,812,257 | $ | 47,166,282 | ||||
Less: Accumulated depreciation, depletion, and amortization | (10,275,524 | ) | (9,344,212 | ) | ||||
Oil and natural gas properties, net | $ | 38,536,733 | $ | 37,822,070 | ||||
Other property and equipment | ||||||||
Furniture, fixtures and office equipment, at cost | $ | 286,820 | $ | 343,178 | ||||
Artificial lift technology equipment, at cost | 595,877 | 377,943 | ||||||
Less: Accumulated depreciation | (549,696 | ) | (296,294 | ) | ||||
Other property and equipment, net | $ | 333,001 | $ | 424,827 | ||||
During the six months ended ended December 31, 2014, we incurred $217,934 of costs related to the installation of our artificial lift technology on the remaining two wells of a five-well program for a third-party customer. Under the contract for these installations, we fund the majority of the incremental equipment and installation costs and will receive 25% of the net profits from production, as defined, for as long as the technology remains in the wells. We are depreciating these costs using a method and a life which approximates the timing and amounts of our expected net revenues from the wells. During the six months ended December 31, 2014, we recorded additional depreciation of $267,326 to expense the unrecovered installation costs of artificial lift equipment, net of estimated residual salvage value, which have been removed or are planned to be removed from three wells of a third-party customer. |
Other_Assets_Other_Assets
Other Assets Other Assets | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Assets | Other Assets | |||||||
As of December 31, 2014 and June 30, 2014 our other assets consisted of the following: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Trademarks | $ | 43,333 | $ | 40,928 | ||||
Patent costs | 387,528 | 305,592 | ||||||
Less: Accumulated amortization of patent costs | (35,678 | ) | (27,050 | ) | ||||
Deferred loan costs | 305,961 | 243,003 | ||||||
Less: Accumulated amortization of deferred loan costs | (122,739 | ) | (98,421 | ) | ||||
Other assets, net | $ | 578,405 | $ | 464,052 | ||||
Accrued_Liabilities_and_Other
Accrued Liabilities and Other | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Current [Abstract] | ||||||||
Accrued Liabilities and Other | Accrued Liabilities and Other | |||||||
As of December 31, 2014 and June 30, 2014 our other current liabilities consisted of the following: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Accrued incentive and other compensation | $ | 557,516 | $ | 1,358,653 | ||||
Accrued restructuring charges | — | 530,412 | ||||||
Officer retirement costs | 41,954 | 288,258 | ||||||
Asset retirement obligations due within one year | 10,219 | 146,703 | ||||||
Accrued royalties | 78,530 | 89,179 | ||||||
Accrued franchise taxes | 74,414 | 87,575 | ||||||
Other accrued liabilities | 49,188 | 57,224 | ||||||
Accrued liabilities and other | $ | 811,821 | $ | 2,558,004 | ||||
Restructuring
Restructuring | 6 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring | Restructuring | |||||||||||||||
On November 1, 2013, we undertook an initiative to refocus our business to GARP® development that resulted in an | ||||||||||||||||
adjustment of our workforce with less emphasis on oil and gas operations and greater emphasis on sales and marketing. In exchange for severance and non-compete agreements with the terminated employees, we recorded a restructuring charge of approximately $1,332,186 representing $376,365 of stock-based compensation from the accelerated vesting of equity awards and $955,821 of severance compensation and benefits to be paid during the twelve months ended December 31, 2014. Our disposition of the accrued restructuring charges is as follows: | ||||||||||||||||
Type of Cost | Balance at | Payments | Adjustment to Cost | 31-Dec-14 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Salary continuation liability | $ | 615,721 | $ | (615,721 | ) | $ | — | $ | — | |||||||
Incentive compensation costs | 185,525 | (185,525 | ) | — | — | |||||||||||
Other benefit costs and employer taxes | 154,575 | (110,144 | ) | (44,431 | ) | — | ||||||||||
Accrued restructuring charges | $ | 955,821 | $ | (911,390 | ) | $ | (44,431 | ) | $ | — | ||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligations | Asset Retirement Obligations | |||||||
Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and | ||||||||
remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a | ||||||||
reconciliation of the beginning and ending asset retirement obligations for the six months ended December 31, 2014, and for the year ended June 30, 2014: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Asset retirement obligations — beginning of period | $ | 352,215 | $ | 615,551 | ||||
Liabilities sold | (52,526 | ) | (48,273 | ) | ||||
Liabilities incurred (a) | 562,485 | — | ||||||
Liabilities settled | (137,604 | ) | (323,665 | ) | ||||
Accretion of discount | 12,773 | 41,626 | ||||||
Revision of previous estimates | — | 66,976 | ||||||
Less obligations due within one year | (10,219 | ) | (146,703 | ) | ||||
Asset retirement obligations — end of period | $ | 727,124 | $ | 205,512 | ||||
(a) Liabilities incurred during the period relate to our share of the the estimated abandonment costs of the wells and facilities in the Delhi Field subsequent to the reversion of our working interest. |
Stockholders_Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity |
Common Stock | |
Commencing in December 2013, the Board of Directors initiated a quarterly cash dividend on our common stock at a quarterly rate of $0.10 per share. During the six months ended December 31, 2014, the Company declared two quarterly dividends and paid $6,565,350 to our common shareholders. | |
For the six months ended December 31, 2014, the Board of Directors authorized the issuance of 144,468 shares of restricted common stock from the 2004 Stock Plan to all employees as a long-term incentive award. In addition, the Board authorized the issuance of 43,258 shares of restricted common stock to various employees for incentive compensation purposes and issued 25,740 shares of restricted common stock as compensation to the Company's directors. See Note 10 - Stock-Based Incentive Plan. | |
Series A Cumulative Perpetual Preferred Stock | |
At December 31, 2014, there were 317,319 shares of the Company’s 8.5% Series A Cumulative (perpetual) Preferred Stock outstanding. The Series A Cumulative Preferred Stock cannot be converted into our common stock and there are no sinking fund or redemption rights available to the holders thereof. Optional redemption can only be made by us on or after July 1, 2014 for the stated liquidation value of $25.00 per share plus accrued dividends. With respect to dividend rights and rights upon our liquidation, winding-up or dissolution, the Series A Preferred Stock ranks senior to our common shareholders, but subordinate to any of our existing and future debt. Dividends on the Series A Cumulative Preferred Stock accrue and accumulate at a fixed rate of 8.5% per annum on the $25.00 per share liquidation preference, payable monthly at $0.177083 per share, as, if and when declared by our Board of Directors through its Dividend Committee. We paid dividends of $337,151 and $337,151 to holders of our Series A Preferred Stock during the six months ended December 31, 2014 and 2013, respectively. | |
Expected Tax Treatment of Dividends | |
For the fiscal year ended June 30, 2014, cash dividends on preferred and common stock were treated for tax purposes as a return of capital to our shareholders. Based on our current projections for the fiscal year ending June 30, 2015, we expect preferred dividends will be treated as qualified dividend income and that a portion of our cash dividends on common stock will be treated as a return of capital and the remainder as qualified dividend income. We will make a preliminary determination regarding the tax treatment of dividends for the current fiscal year when we report this information to recipients. As a result of the difference between our June 30 fiscal year and the calendar year basis of our dividend reporting requirements, it is possible that we will be required to amend these reports when our final taxable income for the fiscal year is determined, as this will potentially affect the tax status of our dividends. |
StockBased_Incentive_Plan
Stock-Based Incentive Plan | 6 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Incentive Plan | Stock-Based Incentive Plan | ||||||||||||
We may grant option awards to purchase common stock (the "Stock Options"), restricted common stock awards ("Restricted Stock"), and unrestricted fully vested common stock, to employees, directors, and consultants of the Company under the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "Plan"). The Plan authorizes the issuance of 6,500,000 shares of common stock and 542,529 shares remain available for grant as of December 31, 2014. | |||||||||||||
Stock Options | |||||||||||||
No Stock Options have been granted since August 2008 and all compensation costs attributable to Stock Options have been recognized in prior periods. | |||||||||||||
The following summary presents information regarding outstanding Stock Options as of December 31, 2014, and the changes during the fiscal year: | |||||||||||||
Number of Stock | Weighted Average | Aggregate | Weighted | ||||||||||
Options | Exercise Price | Intrinsic Value | Average | ||||||||||
and Incentive | -1 | Remaining | |||||||||||
Warrants | Contractual | ||||||||||||
Term (in | |||||||||||||
years) | |||||||||||||
Stock Options outstanding at July 1, 2014 | 178,061 | $ | 2.08 | ||||||||||
Exercised | (37,000 | ) | 1.39 | ||||||||||
Stock Options outstanding at December 31, 2014 | 141,061 | 2.25 | $ | 729,991 | 1.3 | ||||||||
Vested or expected to vest at December 31, 2014 | 141,061 | 2.25 | 729,991 | 1.3 | |||||||||
Exercisable at December 31, 2014 | 141,061 | $ | 2.25 | $ | 729,991 | 1.3 | |||||||
(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($7.43 as of December 31, 2014) and the Stock Option exercise price of in-the-money Stock Options. | |||||||||||||
Restricted Stock and Contingent Restricted Stock | |||||||||||||
Prior to August 28, 2014 all restricted stock grants contained a four-year vesting period based solely on service. Restricted stock which vests based solely on service is valued at the fair market value on the date of grant and amortized over the service period. | |||||||||||||
During the six months ended December 31, 2014, the Company awarded grants of both restricted stock and contingent restricted stock as part of its long-term incentive plan. Such grants, which expire after four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the restricted stock grants were issued on the date of grant, whereas the contingent restricted stock will be issued only upon the attainment of specified performance-based or market-based vesting provisions. | |||||||||||||
Performance-based grants vest upon the attainment of earnings, revenue and other operational goals and require that the recipient remain an employee of the Company upon vesting. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period when it is deemed probable, for accounting purposes, that the performance criteria will be achieved. The expected vesting period may be deemed to be shorter than the remainder of the four year term. As of December 31, 2014, the Company does not consider the vesting of these performance-based grants to be probable and no compensation expense has been recognized. | |||||||||||||
Market-based awards entitle employees to vest in a fixed number of shares when the three-year trailing total return on the Company’s common stock exceeds the corresponding total returns of various quartiles of companies comprising the SIG Exploration and Production Index (NASDAQ EPX) during defined measurement periods. The fair value and expected vesting period of these awards were determined using a Monte Carlo simulation based on the historical volatility of the Company's total return compared to the historical volatilities of the other companies in the index. Fair values for these market-based awards ranged from $4.26 to $8.40 with expected vesting periods of 3.30 to 2.55 years, based on the various quartiles of comparative market performance. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the award holder remains an employee of the Company. Total compensation expense is based on the fair value of the awards at the date of grant and is independent of vesting or expiration of the awards, except for termination of service. | |||||||||||||
The following table sets forth the Restricted Stock transactions for the six months ended December 31, 2014: | |||||||||||||
Number of | Weighted | Unamortized Compensation Expense at December 31, 2014 (1) | Weighted Average Remaining Amortization Period (Years) | ||||||||||
Restricted | Average | ||||||||||||
Shares | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Unvested at July 1, 2014 | 140,067 | $ | 8.7 | ||||||||||
Service-based awards granted | 100,910 | 9.53 | |||||||||||
Performance-based awards granted | 76,642 | 10.05 | |||||||||||
Market-based awards granted | 35,914 | 7.59 | |||||||||||
Vested | (64,536 | ) | 8.59 | ||||||||||
Forfeited | — | — | |||||||||||
Unvested at December 31, 2014 | 288,997 | $ | 9.23 | $ | 1,749,848 | 2.6 | |||||||
(1) Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. | |||||||||||||
The following table summarizes Contingent Restricted Stock activity: | |||||||||||||
Number of | Weighted | Unamortized Compensation Expense at December 31, 2014 (1) | Weighted Average Remaining Amortization Period (Years) | ||||||||||
Restricted | Average | ||||||||||||
Stock Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Unvested at July 1, 2014 | — | — | |||||||||||
Performance-based awards granted | 38,325 | $ | 10.05 | ||||||||||
Market-based awards granted | 17,961 | 4.26 | |||||||||||
Unvested at December 31, 2014 | 56,286 | $ | 8.2 | $ | 68,507 | 3 | |||||||
(1) Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. | |||||||||||||
Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the three months ended December 31, 2014 and 2013 was $245,020 and $316,422, respectively. Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants six months ended December 31, 2014 and 2013 was $488,357 and $689,860, respectively. See Note 7 – Restructuring, for stock compensation included in Restructuring Charges for the six months ended December 31, 2013. |
Fair_Value_Measurement_Fair_Va
Fair Value Measurement Fair Value Measurement | 6 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement |
Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. | |
The three levels are defined as follows: | |
Level 1 — Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. | |
Level 2 — Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. | |
Level 3 — Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. | |
Fair Value of Financial Instruments. The Company’s other financial instruments consist of cash and cash equivalents, certificates of deposit, receivables and payables. The carrying amounts of cash and cash equivalents, receivables and payables approximate fair value due to the highly liquid or short-term nature of these instruments. | |
Other Fair Value Measurements. The initial measurement of asset retirement obligations at fair value is calculated using discounted future cash flows of internally estimated costs. Significant Level 3 inputs used in the calculation of asset retirement obligations include the costs of plugging and abandoning wells, surface restoration and reserve lives. Subsequent to initial recognition, revisions to estimated asset retirement obligations are made when changes occur for input values, which we review quarterly. |
Income_Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
We file a consolidated federal income tax return in the United States and various combined and separate filings in several state and local jurisdictions. | |
There were no unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during the six months ended December 31, 2014. We believe we have appropriate support for the income tax positions taken and to be taken on our tax returns and that the accruals for tax liabilities are adequate for all open years based on our assessment of many factors including past experience and interpretations of tax law applied to the facts of each matter. The Company’s federal and state income tax returns are open to audit under the statute of limitations for the years ending June 30, 2010 through June 30, 2014. | |
Our effective tax rate for any period may differ from the statutory federal rate due to (i) our state income tax liability in Louisiana; (ii) stock-based compensation expense related to qualified incentive stock option awards (“ISO awards”), which creates a permanent tax difference for financial reporting, as these types of awards, if certain conditions are met, are not deductible for federal tax purposes; and (iii) statutory percentage depletion, which may create a permanent tax difference for financial reporting. | |
We recognized income tax expense of $1,624,038 and $724,543 for the six months ended December 31, 2014 and 2013, respectively, with corresponding effective rates of 40.7% and 40.5%. |
Net_Income_Loss_Per_Share
Net Income (Loss) Per Share | 6 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Net Income Per Share | Net Income (Loss) Per Share | |||||||||||||||
The following table sets forth the computation of basic and diluted income (loss) per share: | ||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income (loss) available to common shareholders | $ | 1,071,342 | $ | (577,459 | ) | $ | 2,031,777 | $ | 726,417 | |||||||
Denominator | ||||||||||||||||
Weighted average number of common shares — Basic | 32,825,631 | 30,063,676 | 32,754,016 | 29,335,498 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Contingent restricted stock grants | 6,432 | — | 1,785 | — | ||||||||||||
Stock options | 115,217 | — | 128,953 | 3,042,420 | ||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,947,280 | 30,063,676 | 32,884,754 | 32,377,918 | ||||||||||||
Net income (loss) per common share — Basic | $ | 0.03 | $ | (0.02 | ) | $ | 0.06 | $ | 0.03 | |||||||
Net income (loss) per common share — Diluted | $ | 0.03 | $ | (0.02 | ) | $ | 0.06 | $ | 0.02 | |||||||
Outstanding potentially dilutive securities as of December 31, 2014 were as follows: | ||||||||||||||||
Outstanding Potential Dilutive Securities | Weighted | At | ||||||||||||||
Average | December 31, | |||||||||||||||
Exercise Price | 2014 | |||||||||||||||
Contingent restricted stock grants | — | 56,286 | ||||||||||||||
Stock options | $ | 2.25 | 141,061 | |||||||||||||
$ | 1.61 | 197,347 | ||||||||||||||
Outstanding potentially dilutive securities as of December 31, 2013 were as follows: | ||||||||||||||||
Outstanding Potential Dilutive Securities | Weighted | At | ||||||||||||||
Average | December 31, | |||||||||||||||
Exercise Price | 2013 | |||||||||||||||
Stock options | $ | 2.01 | 753,005 | |||||||||||||
Unsecured_Revolving_Credit_Agr
Unsecured Revolving Credit Agreement | 6 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Unsecured Revolving Credit Agreement | Unsecured Revolving Credit Agreement |
On February 29, 2012, Evolution Petroleum Corporation entered into a Credit Agreement (the “Credit Agreement”) with Texas Capital Bank, N.A. (the “Lender”). The Credit Agreement provides us with a revolving credit facility (the “facility”) in an amount up to $50,000,000 with availability governed by an Initial Borrowing Base of $5,000,000. A portion of the facility not in excess of $1,000,000 is available for the issuance of letters of credit. | |
The facility is unsecured and has a term of four years, expiring on February 29, 2016. Our subsidiaries guarantee the Company’s obligations under the facility. We may use the proceeds of any loans under the facility for the acquisition and development of oil and gas properties, as defined in the facility, the issuance of letters of credit, and for working capital and general corporate purposes. | |
Semi-annually, the borrowing base and a monthly reduction amount are re-determined from our reserve reports. Requests by the Company to increase the $5,000,000 initial amount are subject to the Lender’s credit approval process, and are also limited to 25% of the value of our oil and gas properties, as defined. | |
At our option, borrowings under the facility bear interest at a rate of either (i) an Adjusted LIBOR rate (LIBOR rate divided by the remainder of 1 less the Lender’s Regulation D reserve requirement), or (ii) an adjusted Base Rate equal to the greater of the Lender’s prime rate or the sum of 0.50% and the Federal Funds Rate. A maximum of three LIBOR based loans can be outstanding at any time. Allowed loan interest periods are one, two, three and six months. LIBOR interest is payable at the end of the interest period except for six-month loans for which accrued interest is payable at three months and at end of term. Base Rate interest is payable monthly. Letters of credit bear fees reflecting 3.5% per annum rate applied to their principal amounts and are due when transacted. The maximum term of letters of credit is one year. | |
A commitment fee of 0.50% per annum accrues on unutilized availability and is payable quarterly. We are responsible for certain administrative expenses of the Lender over the life of the Credit Agreement as well as $50,000 in loan costs incurred upon closing. | |
The Credit Agreement also contains financial covenants including a requirement that we maintain a current ratio of not less than 1.5 to 1; a ratio of total funded Indebtedness to EBITDA of not more than 2.5 to 1, and a ratio of EBITDA to interest expense of not less than 3 to 1. The agreement specifies certain customary covenants, including restrictions on the Company and its subsidiaries from pledging their assets, incurring defined Indebtedness outside of the facility other that permitted indebtedness, and it restricts certain asset sales. Payments of dividends for the Series A Preferred are only restricted by the EBITDA to interest coverage ratio, wherein Series A dividends are a 1X deduction from EBITDA (as opposed to a 3:1 requirement if dividends were treated as interest expense). The Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Lender may declare all amounts outstanding under the Credit Agreement, if any, to be immediately due and payable. | |
As of December 31, 2014, the Company had no borrowings and no outstanding letters of credit issued under the facility, resulting in an available borrowing base capacity of $5,000,000, and we are in compliance with all the covenants of the Credit Agreement. During May 2014, the Credit Agreement was amended to permit the payment of cash dividends on common stock if no borrowings are outstanding at the time of such payment. | |
In connection with this agreement we incurred $179,468 of debt issuance costs, which have been capitalized in Other Assets and are being amortized on a straight-line basis over the term of the agreement. The unamortized balance in debt issuance costs related to the Credit Agreement was $56,729 as of December 31, 2014. The Company is in discussions with the Lender to replace the unsecured Credit Agreement with an expanded secured facility. As of December 31, 2014, the Company had incurred approximately $126,493 in legal and title costs related to this proposed agreement, which are also capitalized in Other Assets. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
We are subject to various claims and contingencies in the normal course of business. In addition, from time to time, we receive communications from government or regulatory agencies concerning investigations or allegations of noncompliance with laws or regulations in jurisdictions in which we operate. At a minimum we disclose such matters if we believe it is reasonably possible that a future event or events will confirm a loss through impairment of an asset or the incurrence of a liability. We accrue a loss if we believe it is probable that a future event or events will confirm a loss and we can reasonably estimate such loss and we do not accrue future legal costs related to that loss. Furthermore, we will disclose any matter that is unasserted if we consider it probable that a claim will be asserted and there is a reasonable possibility that the outcome will be unfavorable. We expense legal defense costs as they are incurred. | ||||
The Company and its wholly owned subsidiary are defendants in a lawsuit brought by John C. McCarthy et al in the fifth District Court of Richland Parish, Louisiana in July 2011. The plaintiffs alleged, among other claims, that we fraudulently and wrongfully purchased plaintiffs’ income royalty rights in the Delhi Field Unit in the Holt-Bryant Reservoir in May 2006. The plaintiffs are seeking cancellation of the transaction and monetary damages. On March 29, 2012, the Fifth District Court dismissed the case against the Company and our wholly owned subsidiary NGS Sub Corp. The Court found that plaintiffs had “no cause of action” under Louisiana law, assuming that the Plaintiffs’ claims were valid on their face. Plaintiffs filed an appeal and the Louisiana Second Circuit Court of Appeal affirmed the dismissal, but allowed the plaintiffs to amend their petition to state a different possible cause of action. The plaintiffs amended their claim and re-filed with the district court. We subsequently filed a second motion pleading “no cause of action,” with which the district court again agreed and dismissed the plaintiffs’ case on September 23, 2013. Plaintiffs again filed an appeal in November 2013. In October 2014, the appellate court reversed the district court. We subsequently filed for a rehearing which was denied. We now have filed Application for Writ of Review in the Louisiana Supreme Court in which we have asked the Louisiana Supreme Court to reverse the appellate court and reinstate the trial court judgment dismissing Plaintiffs’ case. Amicus Curiae Briefs have been filed in support of the Writ Application by the Louisiana Oil & Gas Association, the Louisiana Mid-Continent Oil and Gas Association and the American Association of Professional Landmen. | ||||
As previously reported, on August 23, 2012, we and our wholly-owned subsidiary, NGS Sub Corp., and Robert S. Herlin, our Chief Executive Officer, were served with a lawsuit filed in federal court by James H. and Kristy S. Jones (the “Jones lawsuit”) in the Western District Court of the Monroe Division, Louisiana. The plaintiffs allege primarily that we (defendants) wrongfully purchased the plaintiffs’ 0.048119 overriding royalty interest in the Delhi Unit in January 2006 by failing to divulge the existence of an alleged previous agreement to develop the Delhi Field for EOR. The plaintiffs are seeking rescission of the assignment of the overriding royalty interest and monetary damages. We believe that the claims are without merit and are not timely, and we are vigorously defending against the claims. We filed a motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b) (6) on April 1, 2013. On September 17, 2013, the federal court in the Western District Court of the Monroe Division, Louisiana, dismissed a portion of the claims and allowed the plaintiffs to pursue the remaining portion of the claims. Our motion to dismiss was for lack of cause of action, assuming that the plaintiffs' claims were valid on their face. On September 25, 2013, plaintiff Jones filed a motion to alter or amend the September 17, 2013 judgment. On December 27, 2013, the court denied said plaintiffs’ motion, and on January 21, 2014, we filed a motion to reconsider the nondismissal of the remaining claims, which was denied. The Court has entered a Scheduling Order setting trial of the case for the week of June 15, 2015. Counsel has advised us that, based on information developed to date, the risk of loss in this matter is remote. | ||||
On December 13, 2013, we and our wholly-owned subsidiaries, Tertiaire Resources Company and NGS Sub. Corp., filed a lawsuit in the 133rd Judicial District Court of Harris County, Texas, against Denbury Onshore, LLC (“Denbury”) alleging breaches of certain 2006 agreements between the parties regarding the Delhi Field in Richland Parish, Louisiana. The specific allegations include improperly charging the payout account for capital expenditures and costs of capital, failure to adhere to preferential rights to participate in acquisitions within the defined area of mutual interest, breach of the promises to assume environmental liabilities and fully indemnify us from such costs, and other breaches. We are seeking declaration of the validity of the 2006 agreements and recovery of damages and attorneys’ fees. Denbury subsequently filed counterclaims, including the assertion that we owed Denbury additional revenue interests pursuant to the 2006 agreements and that our transfer of the reversionary interests from our wholly owned subsidiary to our parent corporation and subsequently to another wholly-owned subsidiary were not timely noticed to Denbury. The Company disagrees with and is vigorously defending against Denbury's counterclaims. | ||||
On January 26, 2015, Denbury withheld and suspended 2.891545% of our overriding royalty revenue interest in the field for the months of November and December 2014. This unilateral suspension of a portion of our overriding royalties by the operator was made without consultation with the Company and, we believe, is without legal basis. Accordingly, the Company will continue to aggressively defend its property using all legal remedies and rights available to us. If we are required to forfeit some or all this disputed interest to Denbury, then our future reserves, value of reserves and revenues would be negatively impacted. | ||||
On December 3, 2013, our wholly owned subsidiary, NGS Sub Corp., was served with a lawsuit filed in the 8th Judicial District Court of Winn Parish, Louisiana by Cecil M. Brooks and Brandon Hawkins, residents of Louisiana, alleging that in 2006 a former subsidiary of NGS Sub Corp. improperly disposed of water from an off-lease well into a well located on the plaintiffs’ lands in Winn Parish. The plaintiffs requested monetary damages and other relief. NGS Sub Corp. divested its ownership of the property in question along with its ownership of the subsidiary in 2008 to a third party. The district court granted our exception of no right of action and dismissed Brooks' claims against NGS Sub Corp. We have denied and are vigorously defending all claims by Mr. Hawkins. | ||||
Lease Commitments. We have a non-cancelable operating lease for office space that expires on August 1, 2016. Future minimum lease commitments as of December 31, 2014 under this operating lease are as follows: | ||||
For the twelve months ended December 31, | ||||
2015 | $ | 159,011 | ||
2016 | 92,756 | |||
Total | $ | 251,767 | ||
Rent expense for the three months ended December 31, 2014 and 2013 was $43,776 and $44,759, respectively. Rent expense for the six months ended December 31, 2014 and 2013 was $87,551 and $86,667, respectively. | ||||
Employment Contracts. We have entered into employment agreements with two of the Company's senior executives. The employment contracts provide for severance payments in the event of termination by the Company for any reason other than cause or permanent disability, or in the event of a constructive termination, as defined. The agreements provide for the payment of base pay and certain medical and disability benefits for periods ranging from six months to one year after termination. The total contingent obligation under the employment contracts as of December 31, 2014 is approximately $473,000. |
Organization_and_Basis_of_Prep1
Organization and Basis of Preparation (Policies) | 6 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Significant estimates include reserve quantities and estimated future cash flows associated with proved reserves, which significantly impact depletion expense and potential impairments of oil and natural gas properties, income taxes and the valuation of deferred tax assets, stock-based compensation and commitments and contingencies. We analyze our estimates based on historical experience and various other assumptions that we believe to be reasonable. While we believe that our estimates and assumptions used in preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
New Accounting Pronouncement | New Accounting Pronouncement. In June 2014, the FASB issued FASB Accounting Standards Update No. 2014-12 “Compensation-Stock Compensation (Topic 718) : Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (“ASU 2014-12”). |
The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. | |
The amendment in this update is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Management does not believe that any recently issued, but not yet effective accounting pronouncements, when adopted, will have a material effect on the accompanying financial statements. |
Receivables_Tables
Receivables (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule of Receivables | As of December 31, 2014 and June 30, 2014 our receivables consisted of the following: | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Receivables from oil and gas sales | $ | 2,198,912 | $ | 1,456,146 | ||||
Receivable from suspended overriding royalty interest (a) | 712,100 | — | ||||||
Other | 13,558 | 1,066 | ||||||
Receivables | $ | 2,924,570 | $ | 1,457,212 | ||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of prepaid expenses and other current assets | As of December 31, 2014 and June 30, 2014 our prepaid expenses and other current assets consisted of the following: | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Prepaid insurance | $ | 155,827 | $ | 169,288 | ||||
Equipment inventory | 28,898 | 85,888 | ||||||
Prepaid other | 34,320 | 42,800 | ||||||
Retainers and deposits | 26,978 | 29,478 | ||||||
Prepaid federal and Louisiana income taxes | 431,733 | 419,999 | ||||||
Prepaid expenses and other current assets | $ | 677,756 | $ | 747,453 | ||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of oil and natural gas properties and other property and equipment | As of December 31, 2014 and June 30, 2014 our oil and natural gas properties and other property and equipment consisted of the following: | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Oil and natural gas properties | ||||||||
Property costs subject to amortization | $ | 48,812,257 | $ | 47,166,282 | ||||
Less: Accumulated depreciation, depletion, and amortization | (10,275,524 | ) | (9,344,212 | ) | ||||
Oil and natural gas properties, net | $ | 38,536,733 | $ | 37,822,070 | ||||
Other property and equipment | ||||||||
Furniture, fixtures and office equipment, at cost | $ | 286,820 | $ | 343,178 | ||||
Artificial lift technology equipment, at cost | 595,877 | 377,943 | ||||||
Less: Accumulated depreciation | (549,696 | ) | (296,294 | ) | ||||
Other property and equipment, net | $ | 333,001 | $ | 424,827 | ||||
Other_Assets_Tables
Other Assets (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Schedule of other assets | As of December 31, 2014 and June 30, 2014 our other assets consisted of the following: | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Trademarks | $ | 43,333 | $ | 40,928 | ||||
Patent costs | 387,528 | 305,592 | ||||||
Less: Accumulated amortization of patent costs | (35,678 | ) | (27,050 | ) | ||||
Deferred loan costs | 305,961 | 243,003 | ||||||
Less: Accumulated amortization of deferred loan costs | (122,739 | ) | (98,421 | ) | ||||
Other assets, net | $ | 578,405 | $ | 464,052 | ||||
Accrued_Liabilities_and_Other_
Accrued Liabilities and Other (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities, Current [Abstract] | ||||||||
Schedule of accrued liabilities | As of December 31, 2014 and June 30, 2014 our other current liabilities consisted of the following: | |||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Accrued incentive and other compensation | $ | 557,516 | $ | 1,358,653 | ||||
Accrued restructuring charges | — | 530,412 | ||||||
Officer retirement costs | 41,954 | 288,258 | ||||||
Asset retirement obligations due within one year | 10,219 | 146,703 | ||||||
Accrued royalties | 78,530 | 89,179 | ||||||
Accrued franchise taxes | 74,414 | 87,575 | ||||||
Other accrued liabilities | 49,188 | 57,224 | ||||||
Accrued liabilities and other | $ | 811,821 | $ | 2,558,004 | ||||
Restructuring_Tables
Restructuring (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Schedule of current estimate of remaining accrued restructuring charges | Our disposition of the accrued restructuring charges is as follows: | |||||||||||||||
Type of Cost | Balance at | Payments | Adjustment to Cost | 31-Dec-14 | ||||||||||||
December 31, | ||||||||||||||||
2013 | ||||||||||||||||
Salary continuation liability | $ | 615,721 | $ | (615,721 | ) | $ | — | $ | — | |||||||
Incentive compensation costs | 185,525 | (185,525 | ) | — | — | |||||||||||
Other benefit costs and employer taxes | 154,575 | (110,144 | ) | (44,431 | ) | — | ||||||||||
Accrued restructuring charges | $ | 955,821 | $ | (911,390 | ) | $ | (44,431 | ) | $ | — | ||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 6 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Schedule of reconciliations of the beginning and ending asset retirement obligation balances | The following is a | |||||||
reconciliation of the beginning and ending asset retirement obligations for the six months ended December 31, 2014, and for the year ended June 30, 2014: | ||||||||
December 31, | June 30, | |||||||
2014 | 2014 | |||||||
Asset retirement obligations — beginning of period | $ | 352,215 | $ | 615,551 | ||||
Liabilities sold | (52,526 | ) | (48,273 | ) | ||||
Liabilities incurred (a) | 562,485 | — | ||||||
Liabilities settled | (137,604 | ) | (323,665 | ) | ||||
Accretion of discount | 12,773 | 41,626 | ||||||
Revision of previous estimates | — | 66,976 | ||||||
Less obligations due within one year | (10,219 | ) | (146,703 | ) | ||||
Asset retirement obligations — end of period | $ | 727,124 | $ | 205,512 | ||||
StockBased_Incentive_Plan_Tabl
Stock-Based Incentive Plan (Tables) | 6 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Summary of information regarding outstanding Stock Options and Incentive Warrants and the changes during the fiscal year | The following summary presents information regarding outstanding Stock Options as of December 31, 2014, and the changes during the fiscal year: | ||||||||||||
Number of Stock | Weighted Average | Aggregate | Weighted | ||||||||||
Options | Exercise Price | Intrinsic Value | Average | ||||||||||
and Incentive | -1 | Remaining | |||||||||||
Warrants | Contractual | ||||||||||||
Term (in | |||||||||||||
years) | |||||||||||||
Stock Options outstanding at July 1, 2014 | 178,061 | $ | 2.08 | ||||||||||
Exercised | (37,000 | ) | 1.39 | ||||||||||
Stock Options outstanding at December 31, 2014 | 141,061 | 2.25 | $ | 729,991 | 1.3 | ||||||||
Vested or expected to vest at December 31, 2014 | 141,061 | 2.25 | 729,991 | 1.3 | |||||||||
Exercisable at December 31, 2014 | 141,061 | $ | 2.25 | $ | 729,991 | 1.3 | |||||||
(1) Based upon the difference between the market price of our common stock on the last trading date of the period ($7.43 as of December 31, 2014) and the Stock Option exercise price of in-the-money Stock Options. | |||||||||||||
Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Restricted Stock transactions | The following table sets forth the Restricted Stock transactions for the six months ended December 31, 2014: | ||||||||||||
Number of | Weighted | Unamortized Compensation Expense at December 31, 2014 (1) | Weighted Average Remaining Amortization Period (Years) | ||||||||||
Restricted | Average | ||||||||||||
Shares | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Unvested at July 1, 2014 | 140,067 | $ | 8.7 | ||||||||||
Service-based awards granted | 100,910 | 9.53 | |||||||||||
Performance-based awards granted | 76,642 | 10.05 | |||||||||||
Market-based awards granted | 35,914 | 7.59 | |||||||||||
Vested | (64,536 | ) | 8.59 | ||||||||||
Forfeited | — | — | |||||||||||
Unvested at December 31, 2014 | 288,997 | $ | 9.23 | $ | 1,749,848 | 2.6 | |||||||
(1) Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. | |||||||||||||
Contingent Restricted Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Schedule of Restricted Stock transactions | The following table summarizes Contingent Restricted Stock activity: | ||||||||||||
Number of | Weighted | Unamortized Compensation Expense at December 31, 2014 (1) | Weighted Average Remaining Amortization Period (Years) | ||||||||||
Restricted | Average | ||||||||||||
Stock Units | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Unvested at July 1, 2014 | — | — | |||||||||||
Performance-based awards granted | 38,325 | $ | 10.05 | ||||||||||
Market-based awards granted | 17,961 | 4.26 | |||||||||||
Unvested at December 31, 2014 | 56,286 | $ | 8.2 | $ | 68,507 | 3 | |||||||
(1) Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
Net_Income_Loss_Per_Share_Tabl
Net Income (Loss) Per Share (Tables) | 6 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Schedule of computation of basic and diluted income per share | The following table sets forth the computation of basic and diluted income (loss) per share: | |||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator | ||||||||||||||||
Net income (loss) available to common shareholders | $ | 1,071,342 | $ | (577,459 | ) | $ | 2,031,777 | $ | 726,417 | |||||||
Denominator | ||||||||||||||||
Weighted average number of common shares — Basic | 32,825,631 | 30,063,676 | 32,754,016 | 29,335,498 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Contingent restricted stock grants | 6,432 | — | 1,785 | — | ||||||||||||
Stock options | 115,217 | — | 128,953 | 3,042,420 | ||||||||||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,947,280 | 30,063,676 | 32,884,754 | 32,377,918 | ||||||||||||
Net income (loss) per common share — Basic | $ | 0.03 | $ | (0.02 | ) | $ | 0.06 | $ | 0.03 | |||||||
Net income (loss) per common share — Diluted | $ | 0.03 | $ | (0.02 | ) | $ | 0.06 | $ | 0.02 | |||||||
Schedule of outstanding potentially dilutive securities | Outstanding potentially dilutive securities as of December 31, 2014 were as follows: | |||||||||||||||
Outstanding Potential Dilutive Securities | Weighted | At | ||||||||||||||
Average | December 31, | |||||||||||||||
Exercise Price | 2014 | |||||||||||||||
Contingent restricted stock grants | — | 56,286 | ||||||||||||||
Stock options | $ | 2.25 | 141,061 | |||||||||||||
$ | 1.61 | 197,347 | ||||||||||||||
Outstanding potentially dilutive securities as of December 31, 2013 were as follows: | ||||||||||||||||
Outstanding Potential Dilutive Securities | Weighted | At | ||||||||||||||
Average | December 31, | |||||||||||||||
Exercise Price | 2013 | |||||||||||||||
Stock options | $ | 2.01 | 753,005 | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of future minimum lease commitments under the operating lease | Future minimum lease commitments as of December 31, 2014 under this operating lease are as follows: | |||
For the twelve months ended December 31, | ||||
2015 | $ | 159,011 | ||
2016 | 92,756 | |||
Total | $ | 251,767 | ||
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Nov. 01, 2014 |
Related Party Transaction [Line Items] | |||
Receivables from oil and gas sales | $2,198,912 | $1,456,146 | |
Receivable from suspended overriding royalty interest | 712,100 | 0 | |
Other | 13,558 | 1,066 | |
Receivables | $2,924,570 | $1,457,212 | |
Denbury Resources, Inc | |||
Related Party Transaction [Line Items] | |||
Suspended payments related to overriding royalty interest, percentage | 2.89% | ||
Usual percentage of overriding royalty interest payment | 7.41% |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $155,827 | $169,288 |
Equipment inventory | 28,898 | 85,888 |
Prepaid other | 34,320 | 42,800 |
Retainers and deposits | 26,978 | 29,478 |
Prepaid federal and Louisiana income taxes | 431,733 | 419,999 |
Prepaid expenses and other current assets | $677,756 | $747,453 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Jun. 30, 2014 | |
well | ||
Property, Plant and Equipment [Abstract] | ||
Installation costs of artificial lift technology | $217,934 | |
Percentage of net profits from production | 25.00% | |
Additional depreciation | 267,326 | |
Number of wells installed with artificial lift technology | 2 | |
Number of wells removed and installed with artificial lift technology | 3 | |
Oil and natural gas properties | ||
Property costs subject to amortization | 48,812,257 | 47,166,282 |
Less: Accumulated depreciation, depletion, and amortization | -10,275,524 | -9,344,212 |
Oil and natural gas property and equipment, net (full-cost method of accounting) | 38,536,733 | 37,822,070 |
Other property and equipment | ||
Furniture, fixtures and office equipment, at cost | 286,820 | 343,178 |
Artificial lift technology equipment, at cost | 595,877 | 377,943 |
Less: Accumulated depreciation | -549,696 | -296,294 |
Other property and equipment, net | $333,001 | $424,827 |
Other_Assets_Details
Other Assets (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Trademarks | $43,333 | $40,928 |
Patent costs | 387,528 | 305,592 |
Less: Accumulated amortization of patent costs | -35,678 | -27,050 |
Deferred loan costs | 305,961 | 243,003 |
Less: Accumulated amortization of deferred loan costs | -122,739 | -98,421 |
Other assets, net | $578,405 | $464,052 |
Accrued_Liabilities_and_Other_1
Accrued Liabilities and Other (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Other Liabilities, Current [Abstract] | ||
Accrued incentive and other compensation | $557,516 | $1,358,653 |
Accrued restructuring charges | 0 | 530,412 |
Officer retirement costs | 41,954 | 288,258 |
Asset retirement obligations due within one year | 10,219 | 146,703 |
Accrued royalties | 78,530 | 89,179 |
Accrued franchise taxes | 74,414 | 87,575 |
Other accrued liabilities | 49,188 | 57,224 |
Accrued liabilities and other | $811,821 | $2,558,004 |
Restructuring_Schedule_of_Rest
Restructuring - Schedule of Restructuring Charges (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Nov. 01, 2013 | |
Current estimate of remaining accrued restructuring charges | ||
Beginning Balance | $1,332,186 | |
Ending Balance | 1,332,186 | |
Salary continuation liability | ||
Current estimate of remaining accrued restructuring charges | ||
Beginning Balance | 615,721 | |
Payments | -615,721 | |
Adjustment to Cost | 0 | |
Ending Balance | 0 | |
Incentive compensation costs | ||
Current estimate of remaining accrued restructuring charges | ||
Beginning Balance | 185,525 | |
Payments | -185,525 | |
Adjustment to Cost | 0 | |
Ending Balance | 0 | |
Other benefit costs and employer taxes | ||
Current estimate of remaining accrued restructuring charges | ||
Beginning Balance | 154,575 | |
Payments | -110,144 | |
Adjustment to Cost | -44,431 | |
Ending Balance | 0 | |
Accrued restructuring charges | ||
Current estimate of remaining accrued restructuring charges | ||
Beginning Balance | 955,821 | |
Payments | -911,390 | |
Adjustment to Cost | -44,431 | |
Ending Balance | $0 |
Restructuring_Narrative_Detail
Restructuring - Narrative (Details) (USD $) | Nov. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $1,332,186 | ||
Stock-based compensation from accelerated vesting | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 376,365 | ||
Accrued restructuring charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $955,821 | $0 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset retirement obligations b beginning of period | $352,215 | $615,551 | ||||||
Liabilities sold | -52,526 | -48,273 | ||||||
Liabilities incurred (a) | 562,485 | [1] | 0 | [1] | ||||
Liabilities settled | -137,604 | -323,665 | ||||||
Accretion of discount | 8,137 | 12,418 | 12,773 | 25,346 | 41,626 | |||
Revision of previous estimates | 0 | 66,976 | ||||||
Less obligations due within one year | -10,219 | -10,219 | -146,703 | |||||
Asset retirement obligations b end of period | $727,124 | $727,124 | $205,512 | |||||
[1] | Liabilities incurred during the period relate to our share of the the estimated abandonment costs of the wells and facilities in the Delhi Field subsequent to the reversion of our working interest. |
Stockholders_Equity_Common_Sto
Stockholders' Equity - Common Stock (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | |
quarter | quarter | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash dividend per common share | $0.10 | ||
Number of quarterly dividends | 2 | 2 | |
Cash dividends to common stockholders | $6,565,350 | ||
2004 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted common stock authorized for issuance under plan | 6,500,000 | 6,500,000 | |
2004 Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted common stock authorized for issuance under plan | 144,468 | ||
Various Employees | 2004 Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted common stock authorized for issuance under plan | 43,258 | ||
Directors | 2004 Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of restricted common stock authorized for issuance under plan | 25,740 |
Stockholders_Equity_Series_A_C
Stockholders' Equity - Series A Cumulative Perpetual Preferred Stock (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Series A Cumulative Perpetual Preferred Stock | |||
Cash dividends to preferred stockholders | $337,151 | $337,151 | |
Series A cumulative perpetual preferred stock | |||
Series A Cumulative Perpetual Preferred Stock | |||
Number of shares sold of series A cumulative perpetual preferred stock | 317,319 | ||
Preferred stock dividend rate (as a percent) | 8.50% | 8.50% | |
Amount of sinking fund available to stockholders | 0 | ||
Preferred stock, liquidation preference (in dollars per share) | $25 | $25 | |
Dividend payable monthly on preferred stock (in dollars per share) | $0.18 | ||
Cash dividends to preferred stockholders | $337,151 | $337,151 |
StockBased_Incentive_Plan_Narr
Stock-Based Incentive Plan - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock and Contingent Restricted Stock | ||||
Stock-Based Incentive Plan | ||||
Stock-based compensation expense | $245,020 | $316,422 | $488,357 | $689,860 |
2004 Stock Plan | ||||
Stock-Based Incentive Plan | ||||
Number of shares of common stock authorized for issuance under plan | 6,500,000 | 6,500,000 | ||
Number of shares remaining available for grant under plan | 542,529 | 542,529 |
StockBased_Incentive_Plan_Stoc
Stock-Based Incentive Plan - Stock Options and Incentive Warrants (Details) (USD $) | 6 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | ||
Common Stock | |||
Additional disclosures of Stock Options and Incentive Warrants | |||
Market price of common stock on the last trading date of the period (in dollars per share) | $7.43 | ||
Stock Options and Incentive Warrants | |||
Number of Stock Options and Incentive Warrants | |||
Stock Options and Incentive Warrants outstanding at the beginning of the period (in shares) | 141,061 | 178,061 | |
Stock options and Incentive Warrants, Exercised (in shares) | 37,000 | ||
Stock Options and Incentive Warrants outstanding at the end of the period (in shares) | 141,061 | 178,061 | |
Vested or expected to vest at the end of the period (in shares) | 141,061 | ||
Exercisable at the end of the period (in shares) | 141,061 | ||
Weighted Average Exercise Price | |||
Stock Options and Incentive Warrants outstanding at the beginning of the period (in dollars per share) | $2.25 | $2.08 | |
Stock Options and Incentive Warrants, Exercised (in dollars per share) | $1.39 | ||
Stock Options and Incentive Warrants outstanding at the end of the period (in dollars per share) | $2.25 | $2.08 | |
Vested or expected to vest at the end of the period (in dollars per share) | $2.25 | ||
Exercisable at the end of the period (in dollars per share) | $2.25 | ||
Stock Options and Incentive Warrants outstanding at the end of the period | $729,991 | [1] | |
Vested or expected to vest at the end of the period | 729,991 | [1] | |
Exercisable at the end of the period (in dollars) | $729,991 | [1] | |
Stock Options and Incentive Warrants outstanding at the end of the period | 1 year 3 months 18 days | ||
Vested or expected to vest at the end of the period | 1 year 3 months 18 days | ||
Exercisable at the end of the period | 1 year 3 months 18 days | ||
[1] | Based upon the difference between the market price of our common stock on the last trading date of the period ($7.43 as of DecemberB 31, 2014) and the Stock Option exercise price of in-the-money Stock Options. |
StockBased_Incentive_Plan_Fair
Stock-Based Incentive Plan - Fair Value Inputs and Assumptions (Details) (Restricted Stock, USD $) | 6 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value at grant date, per share | $4.26 |
Vesting period | 2 years 6 months 18 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value at grant date, per share | $8.40 |
Vesting period | 3 years 3 months 18 days |
StockBased_Incentive_Plan_Rest
Stock-Based Incentive Plan - Restricted Stock (Details) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | ||
Restricted Stock | ||
Number of Restricted Shares | ||
Unvested at the beginning of the period (in shares) | 140,067 | |
Vested (in shares) | -64,536 | |
Forfeited (in shares) | 0 | |
Unvested at the end of the period (in shares) | 288,997 | |
Weighted Average Grant-Date Fair Value | ||
Unvested at the beginning of the period (in dollars per share) | $8.70 | |
Vested (in dollars per share) | $8.59 | |
Forfeited (in shares) | $0 | |
Unvested at the end of the period (in dollars per share) | $9.23 | |
Additional disclosures of restricted stock | ||
Unrecognized stock compensation expense related to Restricted Stock | $1,749,848 | [1] |
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized | 2 years 7 months 6 days | |
Restricted Stock, Service-Based | ||
Number of Restricted Shares | ||
Granted (in shares) | 100,910 | |
Weighted Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $9.53 | |
Restricted Stock, Performance-Based | ||
Stock-Based Incentive Plan | ||
Potential future compensation expense | $770,252 | |
Number of Restricted Shares | ||
Granted (in shares) | 76,642 | |
Weighted Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $10.05 | |
Restricted Stock, Market-Based | ||
Number of Restricted Shares | ||
Granted (in shares) | 35,914 | |
Weighted Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $7.59 | |
[1] | Excludes $770,252 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
StockBased_Incentive_Plan_Cont
Stock-Based Incentive Plan - Contingent Restricted Stock Activity (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2014 | |||
Contingent Restricted Stock | ||||
Number of Restricted Stock Units | ||||
Unvested at the beginning of the period (in shares) | 0 | |||
Unvested at the end of the period (in shares) | 56,286 | 56,286 | ||
Weighted Average Grant-Date Fair Value | ||||
Unvested at the beginning of the period (in dollars per share) | $0 | |||
Unvested at the end of the period (in dollars per share) | $8.20 | $8.20 | ||
Additional disclosures of restricted stock | ||||
Unrecognized stock compensation expense related to Restricted Stock | $68,507 | [1] | $68,507 | [1] |
Weighted average remaining service period over which unrecognized compensation cost is expected to be recognized | 3 years | |||
Contingent Restricted Stock, Performance-Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Potential future compensation expense | $385,166 | |||
Number of Restricted Stock Units | ||||
Granted (in shares) | 38,325 | |||
Weighted Average Grant-Date Fair Value | ||||
Granted (in dollars per share) | $10.05 | |||
Contingent Restricted Stock, Market-Based | ||||
Number of Restricted Stock Units | ||||
Granted (in shares) | 17,961 | |||
Weighted Average Grant-Date Fair Value | ||||
Granted (in dollars per share) | $4.26 | |||
[1] | Excludes $385,166 of potential future compensation expense for performance-based awards for which vesting is not considered probable at this time for accounting purposes. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits | $0 | $0 | ||
Accrued interest and penalties, unrecognized tax benefits | 0 | |||
Income tax expense | $917,879 | $241,907 | $1,624,038 | $724,543 |
Income tax expense, effective rates (as a percent) | 40.70% | 40.50% |
Net_Income_Loss_Per_Share_Sche
Net Income (Loss) Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator | ||||
Net income (loss) available to common shareholders | $1,071,342 | ($577,459) | $2,031,777 | $726,417 |
Denominator | ||||
Weighted average number of common shares b Basic | 32,825,631 | 30,063,676 | 32,754,016 | 29,335,498 |
Effect of dilutive securities: | ||||
Weighted average number of common shares and dilutive potential common shares used in diluted EPS | 32,947,280 | 30,063,676 | 32,884,754 | 32,377,918 |
Net income (loss) per common share - Basic (in dollars per share) | $0.03 | ($0.02) | $0.06 | $0.03 |
Net income (loss) per common share - Diluted (in dollars per share) | $0.03 | ($0.02) | $0.06 | $0.02 |
Contingent restricted stock grants | ||||
Effect of dilutive securities: | ||||
Weighted average of securities | 6,432 | 0 | 1,785 | 0 |
Stock options | ||||
Effect of dilutive securities: | ||||
Weighted average of securities | 115,217 | 0 | 128,953 | 3,042,420 |
Net_Income_Loss_Per_Share_Sche1
Net Income (Loss) Per Share - Schedule of Dilutive Securities (Details) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Outstanding Potential Dilutive Securities | ||
Weighted Average Exercise Price (in dollars per share) | $1.61 | |
Balance at the end of the period (in shares) | 197,347 | |
Contingent restricted stock grants | ||
Outstanding Potential Dilutive Securities | ||
Weighted Average Exercise Price (in dollars per share) | $0 | |
Balance at the end of the period (in shares) | 56,286 | |
Stock options | ||
Outstanding Potential Dilutive Securities | ||
Weighted Average Exercise Price (in dollars per share) | $2.25 | $2.01 |
Balance at the end of the period (in shares) | 141,061 | 753,005 |
Unsecured_Revolving_Credit_Agr1
Unsecured Revolving Credit Agreement (Details) (Texas Capital Bank, N.A., USD $) | 1 Months Ended | 6 Months Ended | 3 Months Ended |
Feb. 29, 2012 | Dec. 31, 2014 | Sep. 30, 2014 | |
Revolving credit facility | |||
Unsecured Revolving Credit Agreement | |||
Maximum amount available under revolving credit facility | $50,000,000 | ||
Initial borrowing base | 5,000,000 | 5,000,000 | |
Term of revolving credit facility | 4 years | ||
Value of oil and gas properties subject (as a percent) | 25.00% | ||
Commitment fee accruing on unutilized availability (as a percent) | 0.50% | ||
Loan costs to be compensated to lender over the life of the Credit Agreement | 50,000 | ||
Outstanding borrowings | 0 | ||
Debt issuance costs | 179,468 | ||
Unamortized debt issuance costs | 56,729 | ||
Revolving credit facility | Maximum | |||
Unsecured Revolving Credit Agreement | |||
Number of loans that can be outstanding at any time | 3 | ||
Current ratio | 1.5 | ||
Total funded indebtedness to EBITDA ratio | 2.5 | ||
EBITDA to interest expense ratio | 3 | ||
Revolving credit facility | LIBOR | |||
Unsecured Revolving Credit Agreement | |||
Variable interest rate basis | Adjusted LIBOR | ||
Interest period one | 1 month | ||
Interest period two | 2 months | ||
Interest period three | 3 months | ||
Interest period four | 6 months | ||
Term for payment of interest | 3 months | ||
Revolving credit facility | Prime rate | |||
Unsecured Revolving Credit Agreement | |||
Variable interest rate basis | Lenderbs prime rate | ||
Revolving credit facility | Federal funds rate | |||
Unsecured Revolving Credit Agreement | |||
Variable interest rate basis | Federal Funds Rate | ||
Margin added to variable interest rate basis (as a percent) | 0.50% | ||
Letter of credit | |||
Unsecured Revolving Credit Agreement | |||
Maximum amount available under revolving credit facility | 1,000,000 | ||
Term of revolving credit facility | 1 year | ||
Letter of credit fees rate applied to principal amounts (as a percent) | 3.50% | ||
Outstanding borrowings | 0 | ||
Other Assets | Revolving credit facility | |||
Unsecured Revolving Credit Agreement | |||
Debt issuance costs | $126,493 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 01, 2014 | Jan. 26, 2015 | |
Commitments and Contingencies | ||||||
Rent Expense | $43,776 | $44,759 | $87,551 | $86,667 | ||
Employment Contracts | ||||||
Commitments and Contingencies | ||||||
Number of employment agreements | 2 | |||||
Estimated obligation of employment contract | $473,000 | $473,000 | ||||
Employment Contracts | Low end of the range | ||||||
Commitments and Contingencies | ||||||
Benefit period | 6 months | |||||
Employment Contracts | High end of the range | ||||||
Commitments and Contingencies | ||||||
Benefit period | 1 year | |||||
Denbury Resources, Inc | ||||||
Commitments and Contingencies | ||||||
Suspended payments related to overriding royalty interest, percentage | 2.89% | |||||
Subsequent Event | Denbury Resources, Inc | ||||||
Commitments and Contingencies | ||||||
Suspended payments related to overriding royalty interest, percentage | 2.89% |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $159,011 |
2016 | 92,756 |
Total | $251,767 |