Evolution Petroleum Announces Acquisition Of Non-operated Oil And Gas Assets; Combined Purchase Price Of The Acquisitions Is $43.5M
Portfolio Pulse from Benzinga Newsdesk
Evolution Petroleum Corporation (NYSE:EPM) has announced the acquisition of non-operated oil and gas assets in Oklahoma from Red Sky Resources and Coriolis Energy Partners for $43.5 million. The assets include approximately 1,550 BOEPD production, 230 producing wells, and 3,700 net acres with over 300 undeveloped locations. The acquisition is expected to be highly accretive to key valuation metrics and self-funding, generating incremental cash flow to support the company's dividend. The transaction will be funded with cash and borrowings from EPM's credit facility, with net debt remaining within targeted leverage post-transaction.
January 09, 2024 | 9:24 pm
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POSITIVE IMPACT
Evolution Petroleum's acquisition of Oklahoma oil and gas assets for $43.5M is expected to be accretive to earnings and cash flow, supporting dividends and growth strategy.
The acquisition is significant for Evolution Petroleum as it represents the largest transaction in the company's history and is expected to be highly accretive to key financial metrics. The addition of these assets is likely to enhance the company's production capabilities and financial performance, which could positively influence investor sentiment and the stock price in the short term. The funding of the acquisition through cash and credit facilities is also a positive sign of the company's financial management, suggesting a well-planned strategic move without over-leveraging.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100