Evolution Petroleum (AMEX:EPM) Financial Strength

: 10 (As of Sep. 2023)

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Evolution Petroleum has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Evolution Petroleum Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Evolution Petroleum's Interest Coverage for the quarter that ended in Sep. 2023 was 57.91. Evolution Petroleum's debt to revenue ratio for the quarter that ended in Sep. 2023 was 0.00. As of today, Evolution Petroleum's Altman Z-Score is 5.59.

Competitive Comparison

For the Oil & Gas E&P subindustry, Evolution Petroleum's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Evolution Petroleum Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Evolution Petroleum's Financial Strength distribution charts can be found below:

* The bar in red indicates where Evolution Petroleum's Financial Strength falls into.

Evolution Petroleum Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Evolution Petroleum's Interest Expense for the months ended in Sep. 2023 was $-0.0 Mil. Its Operating Income for the months ended in Sep. 2023 was $1.9 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was $0.1 Mil.

Evolution Petroleum's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage	=	-1	*	Operating Income (Q: Sep. 2023 )	/	Interest Expense (Q: Sep. 2023 )
	=	-1	*	1.853	/	-0.032
	=	57.91

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Evolution Petroleum Corp has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Evolution Petroleum's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Sep. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0.059	+	0.112)	/	82.404
	=	0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Evolution Petroleum has a Z-score of 5.59, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.59 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Evolution Petroleum (AMEX:EPM) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Evolution Petroleum has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Evolution Petroleum Financial Strength Related Terms

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Evolution Petroleum (AMEX:EPM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Evolution Petroleum Corp (AMEX:EPM) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

EP7:Germany EP7:Germany

Address

1155 Dairy Ashford Road, Suite 425, Houston, TX, USA, 77079

Website

https://www.evolutionpetroleum.com

Evolution Petroleum Corp is an independent oil and gas company operating in the US. It is engaged primarily in the acquisition, exploitation, and development of properties for the production of crude oil and natural gas, onshore in the United States. The company's revenues are primarily generated from its crude oil, natural gas and NGL production from the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field in Wyoming; and the Delhi Field in Northeast Louisiana. The revenue generated by the company includes royalty, mineral and working interests.

Executives

John Mark Bunch	officer: COO	1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Kelly Beatty	officer: Principal Accounting Officer	1155 DAIRY ASHFORD RD., SUITE 425, HOUSTON TX 77079
Myra C Bierria	director	1155 DAIRY ASHFORD, SUITE 425, HOUSTON TX 77079
Roderick A. Schultz	officer: Chief Accounting Officer	4621 PINERIDGE STREET, HOUSTON TX 77009
Marjorie Anne Hargrave	director	999 18TH STREET, SUITE 1925N, DENVER CO 80202
Ryan Stash	officer: SVP & CFO	1155 DAIRY ASHFORD ROAD, SUITE 425, HOUSTON TX 77079
Jason E. Brown	officer: President & CEO	1000 LOUISIANA, SUITE 6700, HOUSTON TX 77002
Marran H. Ogilvie	director	599 LEXINGTON AVENUE, NEW YORK NY 10022
Peninsula Capital Management Inc	director	235 PINE STREET, SUITE 1600, SAN FRANCISCO CA 94104
Edward John Dipaolo	director	9422 WINDRUSH DRIVE, SPRING TX 77379
William Dozier	director	3000 SAGE #1312, HOUSTON TX 77056
Kelly William Loyd	director	10000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
Gene G Stoever	director	5415 GRAYSTONE LANE, HOUSTON TX 77069
Jvl Advisors, L.l.c.	10 percent owner	10,000 MEMORIAL DRIVE, SUITE 550, HOUSTON TX 77024
Robert S Herlin	director, officer: Chief Executive Officer	820 GESSNER, SUITE 1340, HOUSTON TX 77024