Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | EVOLUTION PETROLEUM CORP | |
Entity Central Index Key | 0001006655 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 32,935,424 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 31,404,803 | $ 31,552,533 |
Receivables | 2,969,052 | 3,168,116 |
Prepaid expenses | 363,059 | 458,278 |
Total current assets | 34,736,914 | 35,178,927 |
Oil and natural gas properties, net (full-cost method of accounting) | 59,554,106 | 60,346,466 |
Other property and equipment, net | 24,096 | 26,418 |
Total property and equipment | 59,578,202 | 60,372,884 |
Other assets | 351,380 | 210,033 |
Total assets | 94,666,496 | 95,761,844 |
Current liabilities | ||
Accounts payable | 2,014,031 | 2,084,140 |
Accrued liabilities and other | 471,012 | 537,755 |
State and federal income taxes payable | 592,865 | 130,799 |
Total current liabilities | 3,077,908 | 2,752,694 |
Long term liabilities | ||
Deferred income taxes | 11,293,608 | 11,322,691 |
Asset retirement obligations | 1,586,888 | 1,560,601 |
Operating lease liability | 126,233 | |
Total liabilities | 16,084,637 | 15,635,986 |
Commitments and contingencies | ||
Stockholders’ equity | ||
Common stock; par value $0.001; 100,000,000 shares authorized; 33,003,134 and 33,183,730 shares issued and outstanding, respectively | 33,003 | 33,183 |
Additional paid-in capital | 41,458,682 | 42,488,913 |
Retained earnings | 37,090,174 | 37,603,762 |
Total stockholders’ equity | 78,581,859 | 80,125,858 |
Total liabilities and stockholders’ equity | $ 94,666,496 | $ 95,761,844 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 33,003,134 | 33,183,730 |
Common stock, shares outstanding (in shares) | 33,003,134 | 33,183,730 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | ||
Revenues | |||
Total revenues | $ 9,152,215 | $ 12,307,079 | |
Operating costs | |||
Depreciation, depletion and amortization | 1,449,754 | 1,548,460 | |
General and administrative expenses | [1] | 1,338,353 | 1,305,262 |
Total operating costs | 5,878,196 | 6,312,152 | |
Income from operations | 3,274,019 | 5,994,927 | |
Other | |||
Enduro transaction breakup fee | 0 | 1,100,000 | |
Interest and other income | 66,129 | 46,571 | |
Interest expense | (29,345) | (29,345) | |
Income before income taxes | 3,310,803 | 7,112,153 | |
Income tax provision | 517,983 | 1,316,352 | |
Net income available to common stockholders | $ 2,792,820 | $ 5,795,801 | |
Earnings per common share | |||
Basic (in dollars per share) | $ 0.08 | $ 0.18 | |
Diluted (in dollars per share) | $ 0.08 | $ 0.17 | |
Weighted average number of common shares | |||
Basic (in shares) | 33,126,645 | 33,102,292 | |
Diluted (in shares) | 33,134,372 | 33,119,057 | |
Crude oil | |||
Revenues | |||
Total revenues | $ 8,845,504 | $ 11,397,452 | |
Natural gas liquids | |||
Revenues | |||
Total revenues | 305,944 | 909,627 | |
Natural gas | |||
Revenues | |||
Total revenues | 767 | 0 | |
Production costs | |||
Operating costs | |||
Production costs | $ 3,090,089 | $ 3,458,430 | |
[1] | For the three months ended September 30, 2019 and 2018, non-cash stock-based compensation expenses were $332,013 and $215,373, respectively.See accompanying notes to consolidated condensed financial statements. |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Operations (Parenthetical) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based compensation expense | $ 332,013 | $ 215,373 |
General and administrative expenses | ||
Stock-based compensation expense | $ 332,013 | $ 215,373 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net income | $ 2,792,820 | $ 5,795,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 1,449,754 | 1,548,460 |
Stock-based compensation | 332,013 | 215,373 |
Deferred income tax expense (benefit) | (29,083) | 275,380 |
Other | 18,526 | 4,824 |
Changes in operating assets and liabilities: | ||
Receivables | 199,064 | (392,981) |
Prepaid expenses | 95,219 | (415,729) |
Accrued liabilities and other | (276,864) | (428,148) |
Income taxes payable | 462,066 | 1,053,032 |
Net cash provided by operating activities | 5,043,515 | 7,656,012 |
Cash flows from investing activities | ||
Capital expenditures for oil and natural gas properties | (522,413) | (3,089,006) |
Net cash used in investing activities | (522,413) | (3,089,006) |
Cash flows from financing activities | ||
Cash dividends to common stockholders | (3,306,408) | (3,315,785) |
Common share repurchases, including shares surrendered for tax withholding | (1,362,424) | (89,992) |
Net cash used in financing activities | (4,668,832) | (3,405,777) |
Net change in cash, cash equivalents and restricted cash | (147,730) | 1,161,229 |
Cash, cash equivalents and restricted cash, beginning of period | 31,552,533 | 27,681,133 |
Cash and cash equivalents, end of period | 31,404,803 | 28,842,362 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 85,000 | 462,395 |
Non-cash transactions: | ||
Change in accounts payable used to acquire oil and natural gas properties | 102,981 | (405,645) |
Oil and natural gas property costs incurred through recognition of asset retirement obligations | $ 0 | $ 31,268 |
Consolidated Condensed Statem_4
Consolidated Condensed Statement of Changes in Stockholders' Equity - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock |
Beginning Balance (in shares) at Jun. 30, 2018 | 33,080,543 | ||||
Beginning Balance at Jun. 30, 2018 | $ 77,289,479 | $ 33,080 | $ 41,757,645 | $ 35,498,754 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted common stock (in shares) | 86,396 | ||||
Issuance of restricted common stock | $ 86 | (86) | |||
Common share repurchases, including shares surrendered for tax withholding (in shares) | 0 | ||||
Common share repurchases, including shares surrendered for tax withholding | (89,992) | (89,992) | |||
Retirements of treasury stock (in shares) | (9,087) | ||||
Retirements of treasury stock | $ (9) | (89,983) | 89,992 | ||
Stock-based compensation | 215,373 | 215,373 | |||
Net income | 5,795,801 | 5,795,801 | |||
Common stock cash dividends | (3,315,785) | (3,315,785) | |||
Ending Balance (in shares) at Sep. 30, 2018 | 33,157,852 | ||||
Ending Balance at Sep. 30, 2018 | $ 79,894,876 | $ 33,157 | 41,882,949 | 37,978,770 | 0 |
Beginning Balance (in shares) at Jun. 30, 2019 | 33,183,730 | 33,183,730 | |||
Beginning Balance at Jun. 30, 2019 | $ 80,125,858 | $ 33,183 | 42,488,913 | 37,603,762 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of restricted common stock (in shares) | 59,028 | ||||
Issuance of restricted common stock | $ 59 | (59) | |||
Forfeitures of restricted stock (in shares) | (8,248) | ||||
Forfeitures of restricted stock | $ (8) | 8 | |||
Common share repurchases, including shares surrendered for tax withholding (in shares) | 0 | ||||
Common share repurchases, including shares surrendered for tax withholding | (1,362,424) | (1,362,424) | |||
Retirements of treasury stock (in shares) | (231,376) | ||||
Retirements of treasury stock | $ (231) | (1,362,193) | 1,362,424 | ||
Stock-based compensation | 332,013 | 332,013 | |||
Net income | 2,792,820 | 2,792,820 | |||
Common stock cash dividends | $ (3,306,408) | (3,306,408) | |||
Ending Balance (in shares) at Sep. 30, 2019 | 33,003,134 | 33,003,134 | |||
Ending Balance at Sep. 30, 2019 | $ 78,581,859 | $ 33,003 | $ 41,458,682 | $ 37,090,174 | $ 0 |
Consolidated Condensed Statem_5
Consolidated Condensed Statement of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend (in dollars per share) | $ 0.10 | $ 0.10 |
Organization and Basis of Prepa
Organization and Basis of Preparation | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Preparation | Organization and Basis of Preparation Nature of Operations. Evolution Petroleum Corporation is an oil and gas company focused on delivering a sustainable dividend yield to its stockholders through the ownership, management and development of oil and gas properties. The Company's long-term goal is to build a diversified portfolio of oil and gas assets primarily through acquisitions, while seeking opportunities to maintain and increase production through selective development, production enhancement and other exploitation efforts on its properties. 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 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 GAAP 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 2019 Annual Report on Form 10-K for the fiscal year ended June 30, 2019, 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 (the "Company"). All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. Any 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 (a) reserve quantities and estimated future cash flows associated with proved reserves, which may significantly impact depletion expense and potential impairments of oil and natural gas properties, (b) asset retirement obligations, (c) stock-based compensation, (d) income taxes and the valuation of deferred tax assets and (e) 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies followed by the Company are set forth in Note 2 - Summary of Significant Accounting Policies in the 2019 Form 10-K and are supplemented by the notes to the unaudited condensed consolidated financial statements included in this report. These unaudited condensed consolidated financial statements should be read in conjunction with the 2019 Form 10-K. Recently Adopted Accounting Pronouncement - Leases In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842"), which relates to the accounting for leasing transactions. This standard requires an entity to recognize a right-of-use (“ROU”) asset and lease liability for leases. Classification of leases as either a finance or operating lease determines the recognition, measurement and presentation of expenses. This accounting standards update also requires certain quantitative and qualitative disclosures about leasing arrangements. Leases acquired to explore for or use minerals, oil or natural gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained, are not within the scope of the standards update. Effective July 1, 2019, the Company adopted the new standard using a modified retrospective approach and elected to use the optional transition methodology whereby reporting periods prior to adoption continue to be presented in accordance with legacy accounting guidance, Accounting Standard Codification 840 - Leases. Upon transition, we recognized a ROU asset (or operating lease right-of-use asset) and an operating lease liability with no retained earnings impact. We applied the following practical expedients as provided in the standards update which provide elections to not reassess: • Whether an expired or existing pre-adoption date contracts contained leases. • Lease classification of any expired or existing leases. • Initial direct costs for any expired or existing leases. We determine if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as an operating lease or a finance lease. We capitalize our operating leases on our consolidated balance sheet through a ROU asset and a corresponding lease liability. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Short-term leases that have an initial term greater than one month but less than one year are not capitalized in the above manner but related costs each period must be disclosed. As a non-operator in recent years and having adequate liquidity, the Company has generally not entered into lease transactions. Presently, our only lease is an operating lease for our corporate office space in Houston, Texas, effective May 1, 2019, which expires November 30, 2022. We have no finance leases and no short-term leases. Adoption of the new standard did not impact our unaudited condensed consolidated statements of operations, cash flows or stockholders’ equity. At adoption we recorded our operating lease as follows: Asset (Liability) Balance June 30, 2019 Adjustment at Adoption July 1, 2019 Operating lease right-of-use asset $ — $ 161,125 Accrued liabilities and other: Deferred rent $ (4,338 ) $ 4,338 Operating lease liability $ — $ (26,194 ) Operating lease liabilities - long-term $ — $ (139,269 ) In addition to the transitional elections, we have also elected a practical expedient to not separate lease components from non-lease components, such as services provided by the lessor under the contract. Accordingly, we account for the lease and non-lease components in an arrangement as a single lease component. We elected this expedient for our existing asset classes. Although we presently have no short-term leases, we have made an accounting policy election not to apply the lease recognition requirements to any future short-term leases, which the guidance defines as having a lease term of 12 months or less and not having an option to purchase the underlying asset that we would be reasonably certain to exercise. Such lease payments would be recognized in our statement of operations on a straight-line basis over the lease term as would have been done under the previous guidance. Variable lease payments, which are neither fixed by the contract nor dependent on an index or rate, are not included in the lease liability or ROU assets. We recognize such payments in our statement of operations in the period in which the obligation for those payments is incurred. Recently Issued Accounting Pronouncement In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires the use of a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the amendment using a modified retrospective approach to the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 is currently not expected to have a material effect on our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers All of our revenue is generated from our interests in the Delhi field in Northeast Louisiana except $16 thousand of revenue from an overriding royalty interest retained in a past divestiture included below in fiscal 2020: Three Months Ended 2019 2018 Revenues Crude oil $ 8,845,504 $ 11,397,452 Natural gas liquids 305,944 909,627 Natural gas 767 — Total revenues $ 9,152,215 $ 12,307,079 The Company recognizes oil, gas, and NGL production revenue at the point in time when custody and title (“control”) of the product transfers to the customer, which differs depending on the contractual terms of each of the Company’s arrangements. Transfer of control drives the presentation of post-production expenses such as transportation, gathering and processing deductions within the accompanying statements of operations. Fees and other deductions incurred prior to control transfer are recorded within the production costs line item on the accompanying unaudited condensed statements of operations, while fees and other deductions incurred subsequent to control transfer are embedded in the price and effectively recorded as a reduction of oil, gas, and NGL production revenue. Judgments made in applying the guidance in Accounting Standards Codification Topic 606, Revenue from Contracts with Customers relate primarily to determining the point in time when control of product transfers to the customer. The Company does not believe that significant judgments are required with respect to the determination of the transaction price, including amounts that represent variable consideration, as volume and price carry a low level of estimation uncertainty given the precision of volumetric measurements and the use of index pricing with predictable differentials. Accordingly, the Company does not consider estimates of variable consideration to be constrained. The Company’s contractual performance obligations arise upon the production of hydrocarbons from wells in which the Company has an ownership interest. The performance obligations are considered satisfied at a point in time upon control transferring to a customer at a specified delivery point. Consideration is allocated to satisfied performance obligations at the end of an accounting period. Revenue is recorded in the month when contractual performance obligations are satisfied. However, settlement statements from the purchasers of hydrocarbons and the related cash consideration are received one to two months after production has occurred, which is typical in the industry. As a result, the Company must estimate the amount of production delivered to the customer and the consideration that will ultimately be received for sale of the product. Estimated revenue due to the Company is recorded within the receivables line item on the accompanying unaudited condensed consolidated balance sheets (“accompanying balance sheets”) until payment is received. The accounts receivable balances from contracts with customers within the accompanying balance sheets as of September 30, 2019 and June 30, 2019 were $3.0 million and $3.2 million , respectively. To estimate accounts receivable from operator contracts with customers, the Company uses knowledge of its properties, historical performance, contractual arrangements, index pricing, quality and transportation differentials, and other factors as the basis for these estimates. Differences between estimates and actual amounts received for product sales are recorded in the month that payment is received from the purchaser. Revenue recognized during the three months ended September 30, 2019 , that related to performance obligations satisfied in prior reporting periods, was immaterial. |
Enduro Purchase and Sale Agreem
Enduro Purchase and Sale Agreement and "Stalking Horse" Bid | 3 Months Ended |
Sep. 30, 2019 | |
Asset Acquisition [Abstract] | |
Enduro Purchase and Sale Agreement and Stalking Horse Bid | Enduro Purchase and Sale Agreement and "Stalking Horse" Bid During the first quarter of fiscal 2019, the Company recorded a $1.1 million break-up fee upon the closing of a higher bidder's purchase transaction. During May 2018, the Company had entered into a Purchase and Sale Agreement ("PSA"), to acquire, as the "stalking horse" bidder, certain oil and gas assets from an affiliate of Enduro Resource Partners LLC ("Enduro") for a purchase price of $27.5 million , subject to the outcome of Enduro's Chapter 11 process. Contemporaneous with executing the PSA, the Company made a $2.75 million deposit to an acquisition escrow account which, together with interest earned, comprised the restricted cash balance on the Company's June 30, 2018 consolidated statement of financial position. Earlier in the first quarter of 2019, the Company was repaid its deposit together with related earned interest when a higher bidder first emerged in the bidding process. The Company's initial and subsequent bids represented offers under Section 363 of the U.S. Bankruptcy Code in Enduro's Chapter 11 proceeding. Such offers are commonly referred to as “stalking horse” bids and are subject to higher bids, in accordance with the bidding procedures approved by the Bankruptcy Court. In connection with the PSA, the Company had incurred third party due diligence expenses, which have been reflected in the Company's consolidated statement of operations for the year ended June 30, 2018. |
Receivables
Receivables | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables As of September 30, 2019 and June 30, 2019 , our receivables consisted of the following: September 30, June 30, Receivables from oil and NGL sales $ 2,967,064 $ 3,168,116 Other 1,988 — Total receivables $ 2,969,052 $ 3,168,116 |
Prepaid Expenses
Prepaid Expenses | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses | Prepaid Expenses As of September 30, 2019 and June 30, 2019 , our prepaid expenses consisted of the following: September 30, June 30, Prepaid insurance $ 148,351 $ 206,198 Prepaid subscription and licenses 67,211 55,435 Prepaid federal and state income taxes 121,679 121,679 Prepaid investor relations and other 25,818 74,966 Total prepaid expenses $ 363,059 $ 458,278 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment As of September 30, 2019 and June 30, 2019 , our oil and natural gas properties and other property and equipment consisted of the following: September 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 96,247,547 $ 95,622,153 Less: Accumulated depreciation, depletion, and amortization (36,693,441 ) (35,275,687 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net $ 59,554,106 $ 60,346,466 Other property and equipment Furniture, fixtures, office equipment and other, at cost $ 154,731 $ 154,731 Less: Accumulated depreciation (130,635 ) (128,313 ) Other property and equipment, net $ 24,096 $ 26,418 During the three months ended September 30, 2019 and 2018 , the Company incurred capital expenditures of $0.6 million and $2.7 million , respectively, in the Delhi field. |
Leases
Leases | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Operating leases are reflected as an operating lease ROU asset included in other assets, in accrued and other liabilities-current and as an operating lease liability on our unaudited condensed consolidated balance sheet. Operating lease ROU assets and liabilities are recognized at the commencement date of an arrangement based on the present value of lease payments over the lease term. In addition to the present value of lease payments, the operating lease ROU asset would also include any lease payments made to the lessor prior to lease commencement less any lease incentives and initial direct costs incurred, if any. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. As an non-operator in recent years and having adequate liquidity, the Company has generally not entered into lease transactions. Presently, our only operating lease is for corporate office space in Houston, Texas, effective May 1, 2019 and which expires November 30, 2022. Presently we have one operating lease for office space, no finance leases and no short-term leases. Certain assumptions and judgments made by the Company when evaluating a contract that meets the definition of a lease under Topic 842 include: • Discount Rate - Our lease does not provide an implicit rate. Accordingly, we are required to use our incremental borrowing rate in determining the present value of lease payments based on the information available at commencement date. Our incremental borrowing rate reflects the estimated rate of interest that we would pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. At adoption, July 1, 2019,we used our prime-rate-based borrowing rate under our senior secured credit facility as our incremental borrowing as the term facility was based on a similar term and is appropriately risk-adjusted. • Lease Term - At inception the Company evaluates the contract containing a lease arrangement to determine the length of the lease term when recognizing a ROU asset and corresponding lease liability. When determining the lease term, an option available to extend or to early terminate the arrangement is evaluated and included when it is reasonably certain an option will be exercised. Because of the Company’s intent to maintain operational flexibility, there is no available option to extend that the Company is reasonably certain it will exercise. We have no expectation to use the early termination option that we are reasonably certain to exercise. For the three months ended September 30, 2019, the components of our total lease expense, included in general and administrative expense, are as follows: Three Months Ended September 30, 2019 Operating lease cost $ 13,015 Variable lease expense (1) 990 Total lease expense $ 14,005 (1) Variable lease payments that are not dependent on an index or rate are not included in the lease liability or ROU asset. Supplemental cash flow, balance sheet and other disclosures information related to our operating leases are as follows: As of and For the Three Months Ended September 30, 2019 Cash Flow: Cash paid for amounts included in the measurement of lease liabilities $ — ROU asset added in exchange for lease obligation at adoption 161,125 Balance Sheet: Operating lease ROU asset (included in other assets) 150,249 Accrued liabilities - current 41,369 Operating lease liability - long-term 126,233 Other: Weighted average remaining lease term in years 3.16 Weighted average discount rate 5.15 % Maturities of our operating lease liability are as follows: Fiscal Year Operating Lease Liability Remainder of 2020 $ 34,322 2021 59,945 2022 61,843 2023 26,098 Total lease payments 182,208 Less imputed interest (14,606 ) Total lease liability $ 167,602 |
Other Assets
Other Assets | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets As of September 30, 2019 and June 30, 2019 , other assets consisted of the following: September 30, June 30, Royalty rights $ 108,512 $ 108,512 Less: Accumulated amortization of royalty rights (50,865 ) (47,474 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (145,716 ) (141,927 ) Right of use asset under operating lease 161,125 — Less: Accumulated amortization of right of use asset (10,876 ) — Software license 20,662 20,662 Less: Accumulated amortization of software license (9,184 ) (7,462 ) Other assets, net $ 351,380 $ 210,033 Our royalty rights and investment in Well Lift, Inc. ("WLI") resulted from the separation of our artificial lift technology operations in December 2015. We conveyed our patents and other intellectual property to WLI and retained a 5% royalty on future gross revenues associated with the technology. We own 17.5% of the common stock of WLI and account for our investment in this private company at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer, if such were to occur. The Company evaluates the investment for impairment when it identifies any events or changes in circumstances that might have a significant adverse effect on the fair value of the investment. |
Accrued Liabilities and Other
Accrued Liabilities and Other | 3 Months Ended |
Sep. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
Accrued Liabilities and Other | Accrued Liabilities and Other As of September 30, 2019 and June 30, 2019 , our other current liabilities consisted of the following: September 30, June 30, Accrued incentive and other compensation $ 182,855 $ 369,719 Asset retirement obligations due within one year 50,244 50,244 Operating lease liability, current 41,369 — Accrued franchise taxes 34,238 5,738 Accrued ad valorem taxes 150,750 100,500 Other accrued liabilities 11,556 11,554 Accrued liabilities and other $ 471,012 $ 537,755 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Sep. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations Our asset retirement obligations represent the estimated present value of the amount we expect to 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 three months ended September 30, 2019 and for the year ended June 30, 2019 : September 30, June 30, Asset retirement obligations — beginning of period $ 1,610,845 $ 1,422,955 Liabilities incurred — 31,268 Accretion of discount 26,287 101,506 Revision of previous estimates — 55,116 Asset retirement obligations — end of period $ 1,637,132 $ 1,610,845 Less current portion in accrued liabilities (50,244 ) (50,244 ) Long-term portion of asset retirement obligations $ 1,586,888 $ 1,560,601 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Common Stock As of September 30, 2019 , we had 33,003,134 sh ares of common stock outstanding. The Company began paying quarterly cash dividends on common stock in December 2013. We paid dividends of $3,306,408 and $3,315,785 to our common stockholders during the three months ended September 30, 2019 and 2018, respectively. The following table reflects the dividends paid within the respective three month periods: Common Stock Cash Dividends per Share 2019 2018 First quarter ended September 30, $ 0.10 $ 0.10 In May 2015, the Board of Directors approved a share repurchase program covering up to $5 million of the Company's common stock. Since inception of the program through September 30, 2019 , the Company spent $2.9 million to repurchase 488,629 common shares at an average price of $5.98 per share, including 222,437 shares at an average cost of $5.89 during the three months ended September 30, 2019 . Under the program's terms, shares are repurchased only on the open market and in accordance with the requirements of the Securities and Exchange Commission. Such shares are initially recorded as treasury stock, then subsequently canceled. The timing and amount of repurchases depends upon several factors, including financial resources and market and business conditions. There is no fixed termination date for this repurchase program, and it may be suspended or discontinued at any time. During the three months ended September 30, 2019 and 2018 , the Company also acquired treasury stock from holders of newly vested stock-based awards to fund the recipients' payroll tax withholding obligations. The treasury shares were subsequently canceled. Such shares were valued at fair market value on the date of vesting. The following table shows all treasury stock purchases in the respective periods: Three Months Ended 2019 2018 Number of treasury shares acquired (1) 231,376 9,087 Average cost per share $ 5.89 $ 9.90 Total cost of treasury shares acquired $ 1,362,424 $ 89,992 (1) The fiscal 2019 number of shares is net of 8,939 shares forfeited in the period. Expected Tax Treatment of Dividends For the fiscal year ended June 30, 2019, all common stock dividends were treated for tax purposes as qualified dividend income to recipients. Based on our current projections for the fiscal year ending June 30, 2020, we expect all common dividends for such period to be treated as qualified dividend income. Such projections are based on our reasonable expectations as of September 30, 2019 and are subject to change based on our final tax calculations at the end of the fiscal year. |
Stock-Based Incentive Plan
Stock-Based Incentive Plan | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Incentive Plan | Stock-Based Incentive Plan At the December 8, 2016 annual meeting, the stockholders approved the adoption of the Evolution Petroleum Corporation 2016 Equity Incentive Plan (the “2016 Plan”), which replaced the Evolution Petroleum Corporation Amended and Restated 2004 Stock Plan (the "2004 Plan") for which there were no shares available for future grants. The 2016 Plan authorizes the issuance of 1,100,000 shares of common stock prior to its expiration on December 8, 2026. Incentives under the 2016 Plan may be granted to employees, directors and consultants of the Company in any one or a combination of the following forms: incentive stock options and non-statutory stock options, stock appreciation rights, restricted stock awards and restricted stock unit awards, performance share awards, performance cash awards, and other forms of incentives valued in whole or in part by reference to, or otherwise based on, our common stock, including its appreciation in value. As of September 30, 2019 , 603,239 shares remained available for grant under the 2016 Plan. All outstanding awards granted under the 2004 Plan continue to be subject to the terms and conditions as set forth in the agreements evidencing such awards and the terms of the 2004 Plan. Under these agreements, we have outstanding grants of restricted common stock awards ("Restricted Stock") and contingent restricted common stock awards ("Contingent Restricted Stock") to employees and directors of the Company. Restricted Stock and Contingent Restricted Stock The Company has awarded grants of both Restricted Stock and Contingent Restricted Stock as part of its long-term incentive plan. Such grants, which expire after a maximum of four years if unvested, contain service-based, performance-based and market-based vesting provisions. The common shares underlying the Restricted Stock grants are issued on the date of grant. Contingent Restricted Stock grants vest only upon the attainment of higher performance-based or market-based vesting thresholds and are issued only upon vesting. Shares underlying Contingent Restricted Stock awards are reserved from the Plan they were granted under. During the three months ended September 30, 2019 , the only awards granted by the Company were to its new chief executive officer upon his employment. He received 48,872 shares of serviced-based restricted common stock which vest in three equal amounts on June 30, 2020, 2021 and 2022, and was also awarded a total of 200,000 market-based restricted stock units consisting of four equal tranches, each of which may vest only if its respective stock price requirement is met before the award term expires. Each tranche has a separate stated price requirement and respective vesting will occur only if, before July 1, 2023, the ninety-day trailing average Company stock share price equals or exceeds its tranche price requirement. Service-based awards vest with continuous employment by the Company, generally in annual installments over their terms of three to four years. Awards to the Company's directors have one -year cliff vesting. Restricted Stock grants which vest based on service are valued at the fair market value on the date of grant and amortized over the service period. Performance-based grants vest upon the attainment of earnings, revenue and other operational goals and require that the recipient remain an employee or director of the Company through the vesting date. The Company recognizes compensation expense for performance-based awards ratably over the expected vesting period based on the grant date fair value 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 term of the award. As of September 30, 2019 , there were no performance-based awards outstanding. Many of our past market-based awards could vest if their respective two - or three -year trailing total returns on the Company’s common stock exceed the corresponding total returns of various quartiles of indices consisting of peer companies. More recent market-based awards vest when the average of the Company's closing stock price over a defined measurement period meets or exceeds a required stock price. The fair values and expected vesting periods of these awards are 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. Compensation expense for market-based awards is recognized over the expected vesting period using the straight-line method, so long as the holder remains an employee or director 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. For market-based awards granted during the three months ended September 30, 2019 and 2018, the assumptions used in the Monte Carlo simulation valuations, expected lives and fair values were as follows: Three Months Ended September 30, 2019 2018 Weighted average fair value of market-based awards granted $ 3.50 $ 8.24 Risk-free interest rate 1.87 % 2.69 % Expected vesting term in years 1.35 2.82 Expected volatility 43.7 % 41.8 % Dividend yield 6.0 % 4.0 % Unvested Restricted Stock awards at September 30, 2019 consisted of the following: Number of Weighted Service-based awards 142,132 $ 7.83 Market-based awards 41,888 8.24 Unvested Restricted Stock at September 30, 2019 184,020 $ 7.92 The following table sets forth the Restricted Stock transactions for the three months ended September 30, 2019 : Number of Weighted Unamortized Compensation Expense at September 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2019 176,683 $ 8.09 Service-based shares granted 48,872 6.65 Vested (33,287 ) 6.53 Forfeited (8,248 ) 9.48 Unvested Restricted Stock at September 30, 2019 184,020 $ 7.92 $ 889,543 2.06 Unvested Contingent Restricted Stock awards table below consists solely of market-based awards: Number of Weighted Unamortized Compensation Expense at September 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2019 10,156 $ 3.42 Market-based awards granted 200,000 3.50 Vested (10,156 ) 3.42 Unvested contingent shares at September 30, 2019 200,000 $ 3.50 $ 574,045 1.1 Stock-based compensation expense related to Restricted Stock and Contingent Restricted Stock grants for the three months ended September 30, 2019 and 2018 was $332,013 and $215,373 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
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 neither unrecognized tax benefits nor any accrued interest or penalties associated with unrecognized tax benefits during any periods presented in the financial statements. 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 various 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 ended June 30, 2015 through June 30, 2018 for federal tax purposes and for the years ended June 30, 2016 through June 30, 2018 for state tax purposes. To the extent we utilize net operating losses generated in earlier years, such earlier years may also be subject to audit. For the three months ended September 30, 2019 and 2018 , respectively, we recognized income tax expenses of $0.5 million and $1.3 million . For the three months ended September 30, 2019 and 2018, the corresponding effective tax rates were 15.6% and 18.5% . Our effective tax rate will typically differ from the statutory federal rate as a result of state income taxes, primarily in the State of Louisiana, and differences related to percentage depletion in excess of basis, stock-based compensation and other permanent differences. For both periods, our respective statutory federal tax rate was 21% . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The following table sets forth the computation of basic and diluted income per share: Three Months Ended September 30, 2019 2018 Numerator Net income available to common shareholders $ 2,792,820 $ 5,795,801 Denominator Weighted average number of common shares — Basic 33,126,645 33,102,292 Effect of dilutive securities: Contingent restricted stock grants 7,727 16,765 Weighted average number of common shares and potentially dilutive common shares used in diluted earnings per share 33,134,372 33,119,057 Net income per common share — Basic $ 0.08 $ 0.18 Net income per common share — Diluted $ 0.08 $ 0.17 Outstanding Potentially Dilutive Securities Weighted At September 30, 2019 Contingent Restricted Stock grants $ — 200,000 Outstanding Potentially Dilutive Securities Weighted At September 30, 2018 Contingent Restricted Stock grants $ — 10,156 |
Senior Secured Credit Agreement
Senior Secured Credit Agreement | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Senior Secured Credit Agreement | Senior Secured Credit Agreement On April 11, 2016, the Company entered into a three -year, senior secured reserve-based credit facility ("Facility") in an amount up to $50 million . On May 25, 2018, we entered into the third amendment to our credit agreement governing the revolving credit facility to, among other things, extend the maturity date to April 11, 2021. On December 31, 2018, we entered into the fourth amendment to our credit agreement governing the revolving credit facility to broaden the definition for the Use of Proceeds. As of September 30, 2019 , the Company's elected commitment and borrowing base were $40 million , we were in compliance with all financial covenants and there were no amounts outstanding under the Facility, which is secured by substantially all of the Company’s assets. Under the Facility the borrowing base shall be determined semiannually as of every May 15 and November 15 during the term of the Facility. During the current quarter, the bank performed its periodic fall redetermination of the borrowing base and confirmed our elected amount of $40 million . Borrowings from the Facility may be used for the acquisition and development of oil and gas properties, investments in cash flow generating assets complimentary to the production of oil and gas, and for letters of credit and other general corporate purposes. The Facility included a placement fee of 0.50% on the initial borrowing base, amounting to $50,000 , and carries a commitment fee of 0.25% per annum on the undrawn portion of the borrowing base. Any borrowings under the Facility will bear interest, at the Company’s option, at either LIBOR plus 2.75% or the Prime Rate, as defined under the Facility, plus 1.00% . The Facility contains financial covenants including a requirement that the Company maintain, as of the last day of each fiscal quarter, (a) a maximum total leverage ratio of not more than 3.00 to 1.00, (b) a debt service coverage ratio of not less than 1.10 to 1.00, and (c) a consolidated tangible net worth of not less than $50 million , all as defined under the Facility. In connection with this agreement, the Company incurred $168,972 of debt issuance costs. Such costs were capitalized in Other Assets and are being amortized to expense. The unamortized balance in debt issuance costs related to the Facility was $23,256 as of September 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
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. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On November 1, 2019, and effective as of October 1, 2019, our wholly-owned subsidiary, Evolution Petroleum West, Inc., a Delaware corporation, purchased a 23.51% non-operating working interest and a 19.70% revenue interest in the Hamilton Dome field located in Hot Springs County, Wyoming, from entities owned or controlled by Merit Energy Company ("Merit") of Dallas, Texas. The consideration to Merit consisted of $9.5 million in cash and our assumption of asset retirement obligations. The assets included 265 producing and water injection wells and associated facilities. |
Organization and Basis of Pre_2
Organization and Basis of Preparation (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation and Reporting | Principles of Consolidation and Reporting. Our consolidated financial statements include the accounts of EPM and its wholly-owned subsidiaries (the "Company"). All significant intercompany transactions have been eliminated in consolidation. The consolidated financial statements for the previous year may include certain reclassifications to conform to the current presentation. Any such reclassifications have no impact on previously reported net income or stockholders' equity. |
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 (a) reserve quantities and estimated future cash flows associated with proved reserves, which may significantly impact depletion expense and potential impairments of oil and natural gas properties, (b) asset retirement obligations, (c) stock-based compensation, (d) income taxes and the valuation of deferred tax assets and (e) 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. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncement - Leases In February 2016, the FASB issued ASU 2016-02, Leases ("ASC 842"), which relates to the accounting for leasing transactions. This standard requires an entity to recognize a right-of-use (“ROU”) asset and lease liability for leases. Classification of leases as either a finance or operating lease determines the recognition, measurement and presentation of expenses. This accounting standards update also requires certain quantitative and qualitative disclosures about leasing arrangements. Leases acquired to explore for or use minerals, oil or natural gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained, are not within the scope of the standards update. Effective July 1, 2019, the Company adopted the new standard using a modified retrospective approach and elected to use the optional transition methodology whereby reporting periods prior to adoption continue to be presented in accordance with legacy accounting guidance, Accounting Standard Codification 840 - Leases. Upon transition, we recognized a ROU asset (or operating lease right-of-use asset) and an operating lease liability with no retained earnings impact. We applied the following practical expedients as provided in the standards update which provide elections to not reassess: • Whether an expired or existing pre-adoption date contracts contained leases. • Lease classification of any expired or existing leases. • Initial direct costs for any expired or existing leases. We determine if an arrangement is a lease at inception of the arrangement. To the extent that we determine an arrangement represents a lease, we classify that lease as an operating lease or a finance lease. We capitalize our operating leases on our consolidated balance sheet through a ROU asset and a corresponding lease liability. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Short-term leases that have an initial term greater than one month but less than one year are not capitalized in the above manner but related costs each period must be disclosed. As a non-operator in recent years and having adequate liquidity, the Company has generally not entered into lease transactions. Presently, our only lease is an operating lease for our corporate office space in Houston, Texas, effective May 1, 2019, which expires November 30, 2022. We have no finance leases and no short-term leases. Adoption of the new standard did not impact our unaudited condensed consolidated statements of operations, cash flows or stockholders’ equity. At adoption we recorded our operating lease as follows: Asset (Liability) Balance June 30, 2019 Adjustment at Adoption July 1, 2019 Operating lease right-of-use asset $ — $ 161,125 Accrued liabilities and other: Deferred rent $ (4,338 ) $ 4,338 Operating lease liability $ — $ (26,194 ) Operating lease liabilities - long-term $ — $ (139,269 ) In addition to the transitional elections, we have also elected a practical expedient to not separate lease components from non-lease components, such as services provided by the lessor under the contract. Accordingly, we account for the lease and non-lease components in an arrangement as a single lease component. We elected this expedient for our existing asset classes. Although we presently have no short-term leases, we have made an accounting policy election not to apply the lease recognition requirements to any future short-term leases, which the guidance defines as having a lease term of 12 months or less and not having an option to purchase the underlying asset that we would be reasonably certain to exercise. Such lease payments would be recognized in our statement of operations on a straight-line basis over the lease term as would have been done under the previous guidance. Variable lease payments, which are neither fixed by the contract nor dependent on an index or rate, are not included in the lease liability or ROU assets. We recognize such payments in our statement of operations in the period in which the obligation for those payments is incurred. Recently Issued Accounting Pronouncement In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, and requires the use of a new forward-looking expected loss model that will result in the earlier recognition of allowances for losses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, and early adoption is permitted. Entities must adopt the amendment using a modified retrospective approach to the first reporting period in which the guidance is effective. The adoption of ASU 2016-13 is currently not expected to have a material effect on our consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Adoption of New Standard | Adoption of the new standard did not impact our unaudited condensed consolidated statements of operations, cash flows or stockholders’ equity. At adoption we recorded our operating lease as follows: Asset (Liability) Balance June 30, 2019 Adjustment at Adoption July 1, 2019 Operating lease right-of-use asset $ — $ 161,125 Accrued liabilities and other: Deferred rent $ (4,338 ) $ 4,338 Operating lease liability $ — $ (26,194 ) Operating lease liabilities - long-term $ — $ (139,269 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | All of our revenue is generated from our interests in the Delhi field in Northeast Louisiana except $16 thousand of revenue from an overriding royalty interest retained in a past divestiture included below in fiscal 2020: Three Months Ended 2019 2018 Revenues Crude oil $ 8,845,504 $ 11,397,452 Natural gas liquids 305,944 909,627 Natural gas 767 — Total revenues $ 9,152,215 $ 12,307,079 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Receivables | As of September 30, 2019 and June 30, 2019 , our receivables consisted of the following: September 30, June 30, Receivables from oil and NGL sales $ 2,967,064 $ 3,168,116 Other 1,988 — Total receivables $ 2,969,052 $ 3,168,116 |
Prepaid Expenses (Tables)
Prepaid Expenses (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses | As of September 30, 2019 and June 30, 2019 , our prepaid expenses consisted of the following: September 30, June 30, Prepaid insurance $ 148,351 $ 206,198 Prepaid subscription and licenses 67,211 55,435 Prepaid federal and state income taxes 121,679 121,679 Prepaid investor relations and other 25,818 74,966 Total prepaid expenses $ 363,059 $ 458,278 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of oil and natural gas properties and other property and equipment | As of September 30, 2019 and June 30, 2019 , our oil and natural gas properties and other property and equipment consisted of the following: September 30, June 30, Oil and natural gas properties Property costs subject to amortization $ 96,247,547 $ 95,622,153 Less: Accumulated depreciation, depletion, and amortization (36,693,441 ) (35,275,687 ) Unproved properties not subject to amortization — — Oil and natural gas properties, net $ 59,554,106 $ 60,346,466 Other property and equipment Furniture, fixtures, office equipment and other, at cost $ 154,731 $ 154,731 Less: Accumulated depreciation (130,635 ) (128,313 ) Other property and equipment, net $ 24,096 $ 26,418 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of total lease expense | For the three months ended September 30, 2019, the components of our total lease expense, included in general and administrative expense, are as follows: Three Months Ended September 30, 2019 Operating lease cost $ 13,015 Variable lease expense (1) 990 Total lease expense $ 14,005 (1) Variable lease payments that are not dependent on an index or rate are not included in the lease liability or ROU asset. |
Supplemental cash flow, balance sheet and other information | Supplemental cash flow, balance sheet and other disclosures information related to our operating leases are as follows: As of and For the Three Months Ended September 30, 2019 Cash Flow: Cash paid for amounts included in the measurement of lease liabilities $ — ROU asset added in exchange for lease obligation at adoption 161,125 Balance Sheet: Operating lease ROU asset (included in other assets) 150,249 Accrued liabilities - current 41,369 Operating lease liability - long-term 126,233 Other: Weighted average remaining lease term in years 3.16 Weighted average discount rate 5.15 % |
Schedule of future minimum lease commitments under the operating lease | Maturities of our operating lease liability are as follows: Fiscal Year Operating Lease Liability Remainder of 2020 $ 34,322 2021 59,945 2022 61,843 2023 26,098 Total lease payments 182,208 Less imputed interest (14,606 ) Total lease liability $ 167,602 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | As of September 30, 2019 and June 30, 2019 , other assets consisted of the following: September 30, June 30, Royalty rights $ 108,512 $ 108,512 Less: Accumulated amortization of royalty rights (50,865 ) (47,474 ) Investment in Well Lift Inc., at cost 108,750 108,750 Deferred loan costs 168,972 168,972 Less: Accumulated amortization of deferred loan costs (145,716 ) (141,927 ) Right of use asset under operating lease 161,125 — Less: Accumulated amortization of right of use asset (10,876 ) — Software license 20,662 20,662 Less: Accumulated amortization of software license (9,184 ) (7,462 ) Other assets, net $ 351,380 $ 210,033 |
Accrued Liabilities and Other (
Accrued Liabilities and Other (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | As of September 30, 2019 and June 30, 2019 , our other current liabilities consisted of the following: September 30, June 30, Accrued incentive and other compensation $ 182,855 $ 369,719 Asset retirement obligations due within one year 50,244 50,244 Operating lease liability, current 41,369 — Accrued franchise taxes 34,238 5,738 Accrued ad valorem taxes 150,750 100,500 Other accrued liabilities 11,556 11,554 Accrued liabilities and other $ 471,012 $ 537,755 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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 three months ended September 30, 2019 and for the year ended June 30, 2019 : September 30, June 30, Asset retirement obligations — beginning of period $ 1,610,845 $ 1,422,955 Liabilities incurred — 31,268 Accretion of discount 26,287 101,506 Revision of previous estimates — 55,116 Asset retirement obligations — end of period $ 1,637,132 $ 1,610,845 Less current portion in accrued liabilities (50,244 ) (50,244 ) Long-term portion of asset retirement obligations $ 1,586,888 $ 1,560,601 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Dividends paid | The following table reflects the dividends paid within the respective three month periods: Common Stock Cash Dividends per Share 2019 2018 First quarter ended September 30, $ 0.10 $ 0.10 |
Schedule of share repurchases | The following table shows all treasury stock purchases in the respective periods: Three Months Ended 2019 2018 Number of treasury shares acquired (1) 231,376 9,087 Average cost per share $ 5.89 $ 9.90 Total cost of treasury shares acquired $ 1,362,424 $ 89,992 (1) The fiscal 2019 number of shares is net of 8,939 shares forfeited in the period. |
Stock-Based Incentive Plan (Tab
Stock-Based Incentive Plan (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Market-based Award Valuation Assumptions | For market-based awards granted during the three months ended September 30, 2019 and 2018, the assumptions used in the Monte Carlo simulation valuations, expected lives and fair values were as follows: Three Months Ended September 30, 2019 2018 Weighted average fair value of market-based awards granted $ 3.50 $ 8.24 Risk-free interest rate 1.87 % 2.69 % Expected vesting term in years 1.35 2.82 Expected volatility 43.7 % 41.8 % Dividend yield 6.0 % 4.0 % |
Schedule of Restricted Stock transactions | Unvested Restricted Stock awards at September 30, 2019 consisted of the following: Number of Weighted Service-based awards 142,132 $ 7.83 Market-based awards 41,888 8.24 Unvested Restricted Stock at September 30, 2019 184,020 $ 7.92 |
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 three months ended September 30, 2019 : Number of Weighted Unamortized Compensation Expense at September 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2019 176,683 $ 8.09 Service-based shares granted 48,872 6.65 Vested (33,287 ) 6.53 Forfeited (8,248 ) 9.48 Unvested Restricted Stock at September 30, 2019 184,020 $ 7.92 $ 889,543 2.06 |
Contingent Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Restricted Stock transactions | Unvested Contingent Restricted Stock awards table below consists solely of market-based awards: Number of Weighted Unamortized Compensation Expense at September 30, 2019 Weighted Average Remaining Amortization Period (Years) Unvested at July 1, 2019 10,156 $ 3.42 Market-based awards granted 200,000 3.50 Vested (10,156 ) 3.42 Unvested contingent shares at September 30, 2019 200,000 $ 3.50 $ 574,045 1.1 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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 per share: Three Months Ended September 30, 2019 2018 Numerator Net income available to common shareholders $ 2,792,820 $ 5,795,801 Denominator Weighted average number of common shares — Basic 33,126,645 33,102,292 Effect of dilutive securities: Contingent restricted stock grants 7,727 16,765 Weighted average number of common shares and potentially dilutive common shares used in diluted earnings per share 33,134,372 33,119,057 Net income per common share — Basic $ 0.08 $ 0.18 Net income per common share — Diluted $ 0.08 $ 0.17 |
Schedule of outstanding potentially dilutive securities | Outstanding Potentially Dilutive Securities Weighted At September 30, 2019 Contingent Restricted Stock grants $ — 200,000 Outstanding Potentially Dilutive Securities Weighted At September 30, 2018 Contingent Restricted Stock grants $ — 10,156 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 3 Months Ended | ||
Sep. 30, 2019USD ($)contract | Jul. 01, 2019USD ($) | Jun. 30, 2019USD ($) | |
Accounting Policies [Abstract] | |||
Number of finance lease contracts | contract | 0 | ||
Number of short-term lease contracts | contract | 0 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 150,249 | ||
Accrued liabilities and other: | |||
Deferred rent | $ (4,338) | ||
Operating lease liability | (41,369) | ||
Operating lease liabilities - long-term | $ (126,233) | ||
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use asset | $ 161,125 | ||
Accrued liabilities and other: | |||
Deferred rent | 4,338 | ||
Operating lease liability | (26,194) | ||
Operating lease liabilities - long-term | $ (139,269) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Schedule of Revenues (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 9,152,215 | $ 12,307,079 |
Crude oil | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 8,845,504 | 11,397,452 |
Natural gas liquids | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 305,944 | 909,627 |
Natural gas | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 767 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 9,152,215 | $ 12,307,079 | |
Accounts receivable | $ 2,967,064 | $ 3,168,116 | |
Royalty | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 16,000 |
Enduro Purchase and Sale Agre_2
Enduro Purchase and Sale Agreement and "Stalking Horse" Bid - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Asset Acquisition [Line Items] | |||
Enduro transaction breakup fee | $ 0 | $ 1,100,000 | |
Affiliate of Enduro Resource Partners LLC | |||
Asset Acquisition [Line Items] | |||
Enduro transaction breakup fee | $ 1,100,000 | ||
Purchase price of oil and gas assets | $ 27,500,000 | ||
Escrow deposit | $ 2,750,000 |
Receivables (Details)
Receivables (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Receivables [Abstract] | ||
Receivables from oil and NGL sales | $ 2,967,064 | $ 3,168,116 |
Other | 1,988 | 0 |
Total receivables | $ 2,969,052 | $ 3,168,116 |
Prepaid Expenses (Details)
Prepaid Expenses (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 148,351 | $ 206,198 |
Prepaid subscription and licenses | 67,211 | 55,435 |
Prepaid federal and state income taxes | 121,679 | 121,679 |
Prepaid investor relations and other | 25,818 | 74,966 |
Total prepaid expenses | $ 363,059 | $ 458,278 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Oil and natural gas properties | |||
Property costs subject to amortization | $ 96,247,547 | $ 95,622,153 | |
Less: Accumulated depreciation, depletion, and amortization | (36,693,441) | (35,275,687) | |
Unproved properties not subject to amortization | 0 | 0 | |
Oil and natural gas properties, net | 59,554,106 | 60,346,466 | |
Other property and equipment | |||
Furniture, fixtures, office equipment and other, at cost | 154,731 | 154,731 | |
Less: Accumulated depreciation | (130,635) | (128,313) | |
Other property and equipment, net | 24,096 | $ 26,418 | |
Delhi field | |||
Other property and equipment | |||
Capital expenditures | $ 600,000 | $ 2,700,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2019contract | |
Leases [Abstract] | |
Number of operating lease contracts | 1 |
Number of finance lease contracts | 0 |
Number of short-term lease contracts | 0 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 13,015 |
Variable lease expense | 990 |
Total lease expense | $ 14,005 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities | $ 0 |
ROU asset added in exchange for lease obligation at adoption | 161,125 |
Operating lease ROU asset (included in other assets) | 150,249 |
Accrued liabilities - current | 41,369 |
Operating lease liability | $ 126,233 |
Weighted average remaining lease term in years | 3 years 1 month 28 days |
Weighted average discount rate | 5.15% |
Leases - Future Minimum Lease M
Leases - Future Minimum Lease Maturities (Details) | Sep. 30, 2019USD ($) |
Operating Lease Liability Maturity | |
Remainder of 2020 | $ 34,322 |
2021 | 59,945 |
2022 | 61,843 |
2023 | 26,098 |
Total lease payments | 182,208 |
Less imputed interest | (14,606) |
Total lease liability | $ 167,602 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Royalty rights | $ 108,512 | $ 108,512 |
Less: Accumulated amortization of royalty rights | (50,865) | (47,474) |
Investment in Well Lift Inc., at cost | 108,750 | 108,750 |
Deferred loan costs | 168,972 | 168,972 |
Less: Accumulated amortization of deferred loan costs | (145,716) | (141,927) |
Right of use asset under operating lease | 161,125 | |
Less: Accumulated amortization of right of use asset | (10,876) | |
Software license | 20,662 | 20,662 |
Less: Accumulated amortization of software license | (9,184) | (7,462) |
Other assets, net | $ 351,380 | $ 210,033 |
Well Lift Inc. | ||
Noncontrolling Interest [Line Items] | ||
Royalty percentage | 5.00% | |
Ownership percentage | 17.50% |
Accrued Liabilities and Other_2
Accrued Liabilities and Other (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Other Liabilities, Current [Abstract] | ||
Accrued incentive and other compensation | $ 182,855 | $ 369,719 |
Asset retirement obligations due within one year | 50,244 | 50,244 |
Operating lease liability, current | 41,369 | |
Accrued franchise taxes | 34,238 | 5,738 |
Accrued ad valorem taxes | 150,750 | 100,500 |
Other accrued liabilities | 11,556 | 11,554 |
Accrued liabilities and other | $ 471,012 | $ 537,755 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations — beginning of period | $ 1,610,845 | ||
Liabilities incurred | 0 | $ 31,268 | |
Accretion of discount | 26,287 | 101,506 | |
Revision of previous estimates | 0 | 55,116 | |
Asset retirement obligations — end of period | 1,637,132 | $ 1,422,955 | |
Less current portion in accrued liabilities | (50,244) | $ (50,244) | |
Long-term portion of asset retirement obligations | $ 1,586,888 | $ 1,560,601 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Dividends and Buyback Program (Details) - USD ($) | 3 Months Ended | 53 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares of common stock outstanding (in shares) | 33,003,134 | 33,003,134 | ||
Cash dividends to common stockholders | $ 3,306,408 | $ 3,315,785 | ||
Shares forfeited (in shares) | 8,939 | |||
Common Stock | 2015 Share Repurchase Program | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Authorized amount to be repurchased | $ 5,000,000 | |||
Value of shares repurchased | $ 1,362,424 | $ 89,992 | $ 2,900,000 | |
Treasury stock acquired (in shares) | 222,437 | 488,629 | ||
Number of treasury shares acquired (in shares) | 231,376 | 9,087 | ||
Average cost per share (in dollars per share) | $ 5.89 | $ 9.90 | $ 5.98 |
Stockholders' Equity - Dividend
Stockholders' Equity - Dividends (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||
Cash dividend (in dollars per share) | $ 0.10 | $ 0.10 |
Stock-Based Incentive Plan - Na
Stock-Based Incentive Plan - Narrative (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 08, 2016 | |
Restricted Stock and Contingent Restricted Stock | |||
Stock-Based Incentive Plan | |||
Stock-based compensation expense | $ 332,013 | $ 215,373 | |
2016 Plan | |||
Stock-Based Incentive Plan | |||
Number of shares remaining available for grant under plan (in shares) | 603,239 | 0 | |
Number of shares of common stock authorized for issuance under plan (in shares) | 1,100,000 | ||
2004 Stock Plan | Restricted Stock and Contingent Restricted Stock, Other | |||
Stock-Based Incentive Plan | |||
Vesting period | 1 year | ||
2004 Stock Plan | Restricted Stock, Performance-Based | |||
Stock-Based Incentive Plan | |||
Performance based awards, outstanding (in shares) | 0 | ||
Minimum | 2004 Stock Plan | Restricted Stock, Service-Based | |||
Stock-Based Incentive Plan | |||
Vesting period | 3 years | ||
Minimum | 2004 Stock Plan | Restricted Stock, Market-Based | |||
Stock-Based Incentive Plan | |||
Vesting period | 2 years | ||
Maximum | 2004 Stock Plan | Restricted Stock and Contingent Restricted Stock | |||
Stock-Based Incentive Plan | |||
Expiration period | 4 years | ||
Maximum | 2004 Stock Plan | Restricted Stock, Service-Based | |||
Stock-Based Incentive Plan | |||
Vesting period | 4 years | ||
Maximum | 2004 Stock Plan | Restricted Stock, Market-Based | |||
Stock-Based Incentive Plan | |||
Vesting period | 3 years | ||
Chief Executive Officer | 2004 Stock Plan | Restricted Stock, Service-Based | |||
Stock-Based Incentive Plan | |||
Granted (in shares) | 48,872 | ||
Chief Executive Officer | 2004 Stock Plan | Restricted Stock, Market-Based | |||
Stock-Based Incentive Plan | |||
Granted (in shares) | 200,000 |
Stock-Based Incentive Plan - Va
Stock-Based Incentive Plan - Valuation Assumptions (Details) - Restricted Stock, Market-Based - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average fair value of market-based awards granted (in dollars per share) | $ 3.50 | $ 8.24 |
Risk-free interest rate | 1.87% | 2.69% |
Expected vesting term in years | 1 year 4 months 6 days | 2 years 9 months 26 days |
Expected volatility | 43.70% | 41.80% |
Dividend yield | 6.00% | 4.00% |
Stock-Based Incentive Plan - Un
Stock-Based Incentive Plan - Unvested Restricted Stock (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock | ||
Number of Restricted Shares | ||
Unvested at the beginning of the period (in shares) | 176,683 | |
Granted (in shares) | 48,872 | |
Vested (in shares) | (33,287) | |
Forfeited (in shares) | (8,248) | |
Unvested at the end of the period (in shares) | 184,020 | |
Weighted Average Grant-Date Fair Value | ||
Unvested at the beginning of the period (in dollars per share) | $ 8.09 | |
Granted (in dollars per share) | 6.65 | |
Vested (in dollars per share) | 6.53 | |
Forfeited (in dollars per share) | 9.48 | |
Unvested at the end of the period (in dollars per share) | $ 7.92 | |
Additional disclosures of restricted stock | ||
Unamortized compensation expense | $ 889,543 | |
Weighted average remaining amortization period | 2 years 22 days | |
Restricted Stock, Service-Based | ||
Number of Restricted Shares | ||
Unvested at the end of the period (in shares) | 142,132 | |
Weighted Average Grant-Date Fair Value | ||
Unvested at the end of the period (in dollars per share) | $ 7.83 | |
Restricted Stock, Market-Based | ||
Number of Restricted Shares | ||
Unvested at the end of the period (in shares) | 41,888 | |
Weighted Average Grant-Date Fair Value | ||
Granted (in dollars per share) | $ 3.50 | $ 8.24 |
Unvested at the end of the period (in dollars per share) | $ 8.24 | |
Contingent Restricted Stock | ||
Number of Restricted Shares | ||
Unvested at the beginning of the period (in shares) | 10,156 | |
Granted (in shares) | 200,000 | |
Vested (in shares) | (10,156) | |
Unvested at the end of the period (in shares) | 200,000 | |
Weighted Average Grant-Date Fair Value | ||
Unvested at the beginning of the period (in dollars per share) | $ 3.42 | |
Granted (in dollars per share) | 3.50 | |
Vested (in dollars per share) | 3.42 | |
Unvested at the end of the period (in dollars per share) | $ 3.50 | |
Additional disclosures of restricted stock | ||
Unamortized compensation expense | $ 574,045 | |
Weighted average remaining amortization period | 1 year 1 month 6 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 517,983 | $ 1,316,352 |
Income tax expense, effective rates (as a percent) | 15.60% | 18.50% |
Statutory federal tax rate | 21.00% | 21.00% |
Senior Secured Credit Agreeme_2
Senior Secured Credit Agreement (Details) - Senior Secured Reserve-Based Credit Facility - Line of Credit - Revolving credit facility | Apr. 11, 2016USD ($) | Sep. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | ||
Term of revolving credit facility | 3 years | |
Maximum amount available under revolving credit facility | $ 50,000,000 | |
Initial borrowing base | $ 40,000,000 | |
Amount outstanding | 0 | |
Placement fee percentage | 0.50% | |
Placement fee percentage | $ 50,000 | |
Commitment fee percentage | 0.25% | |
Maximum total leverage ratio (not more than) | 3 | |
Debt service coverage ratio (not less than) | 1.10 | |
Minimum consolidated tangible net worth | $ 50,000,000 | |
Debt issuance costs | $ 168,972 | |
Unamortized debt issuance costs | $ 23,256 | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.75% | |
Prime rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% |
Net Income Per Share - Schedule
Net Income Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator | ||
Net income available to common shareholders | $ 2,792,820 | $ 5,795,801 |
Denominator | ||
Weighted average number of common shares — Basic (in shares) | 33,126,645 | 33,102,292 |
Effect of dilutive securities: | ||
Contingent restricted stock grants (in shares) | 7,727 | 16,765 |
Weighted average number of common shares and potentially dilutive common shares used in diluted EPS (in shares) | 33,134,372 | 33,119,057 |
Net income per common share - Basic (in dollars per share) | $ 0.08 | $ 0.18 |
Net income per common share - Diluted (in dollars per share) | $ 0.08 | $ 0.17 |
Net Income Per Share - Schedu_2
Net Income Per Share - Schedule of Dilutive Securities (Details) - Contingent restricted stock grants - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Outstanding Potential Dilutive Securities | ||
Weighted Average Exercise Price (in dollars per share) | $ 0 | $ 0 |
Balance at the end of the period (in shares) | 200,000 | 10,156 |
Subsequent Event (Details)
Subsequent Event (Details) - Hamilton Dome Field - Subsequent Event $ in Millions | Nov. 01, 2019USD ($)well |
Subsequent Event [Line Items] | |
Non-operating working interest, percent | 23.51% |
Revenue interest, percent | 19.70% |
Consideration for working and revenue interest | $ | $ 9.5 |
Number of wells | well | 265 |