Evolution Petroleum Acquires Full Control of Sunstone Energy
Ticker: EPM · Form: 8-K · Filed: May 7, 2024 · CIK: 1006655
Sentiment: neutral
Topics: acquisition, subsidiary, financial-results
Related Tickers: EPM
TL;DR
EPM buys out Sunstone's stake, taking full control of the subsidiary.
AI Summary
Evolution Petroleum Corporation announced on May 6, 2024, that it has entered into a definitive agreement to acquire the remaining 50% non-economic interest in its subsidiary, Sunstone Energy LLC, from Sunstone Energy Holdings, LLC. This transaction is expected to close in the third quarter of 2024 and will result in Evolution Petroleum owning 100% of Sunstone Energy. The company also reported its financial results for the third quarter ended March 31, 2024.
Why It Matters
This acquisition consolidates full ownership of Sunstone Energy under Evolution Petroleum, potentially simplifying operations and allowing for more strategic decision-making regarding the subsidiary's assets.
Risk Assessment
Risk Level: low — The filing primarily concerns a standard acquisition of a subsidiary's remaining interest and financial reporting, with no immediate significant risks indicated.
Key Numbers
- 50% — Non-economic interest (Percentage of Sunstone Energy LLC being acquired)
Key Players & Entities
- Evolution Petroleum Corporation (company) — Registrant
- Sunstone Energy LLC (company) — Subsidiary being acquired
- Sunstone Energy Holdings, LLC (company) — Seller of remaining interest
- May 6, 2024 (date) — Date of agreement
- third quarter of 2024 (date) — Expected closing period
- March 31, 2024 (date) — End of reporting period for financial results
FAQ
What is the primary purpose of this 8-K filing?
The primary purpose is to announce Evolution Petroleum Corporation's definitive agreement to acquire the remaining 50% non-economic interest in its subsidiary, Sunstone Energy LLC, and to report financial results for the third quarter ended March 31, 2024.
Who is Evolution Petroleum acquiring the interest from?
Evolution Petroleum is acquiring the remaining 50% non-economic interest in Sunstone Energy LLC from Sunstone Energy Holdings, LLC.
When is the acquisition expected to be completed?
The acquisition is expected to close in the third quarter of 2024.
What will be Evolution Petroleum's ownership stake in Sunstone Energy after the acquisition?
After the acquisition, Evolution Petroleum will own 100% of Sunstone Energy.
What financial period do the reported results cover?
The reported financial results cover the third quarter ended March 31, 2024.
Filing Stats: 749 words · 3 min read · ~2 pages · Grade level 12 · Accepted 2024-05-07 16:15:26
Key Financial Figures
- $0.001 — nge On Which Registered Common Stock, $0.001 par value EPM NYSE American Indic
- $0.12 — e Company approved the declaration of a $0.12 per common share dividend for the fourt
Filing Documents
- epm-20240506x8k.htm (8-K) — 31KB
- epm-20240506xex99d1.htm (EX-99.1) — 1196KB
- epm-20240506xex99d1001.gif (GRAPHIC) — 7KB
- 0001544784-24-000029.txt ( ) — 1408KB
- epm-20240506.xsd (EX-101.SCH) — 3KB
- epm-20240506_lab.xml (EX-101.LAB) — 16KB
- epm-20240506_pre.xml (EX-101.PRE) — 10KB
- epm-20240506x8k_htm.xml (XML) — 5KB
02 Results of Operations and Financial Condition
Item 2.02 Results of Operations and Financial Condition. On May 7, 2024, Evolution Petroleum Corporation (the "Company") issued a press release reporting its financial and operating results for the quarter ended March 31, 2024. A copy of the press release, dated May 7, 2024, regarding the Company's financial and operating results, is furnished herewith as Exhibit 99.1 and is incorporated herein by reference. This information is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, unless specifically incorporated by reference in a document filed under the Securities Act of 1933, as amended, or the Exchange Act. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by Item 2.02. Occasionally our management discloses net income (loss) and net earnings (loss) per common share excluding selected items as well as Adjusted EBITDA. These measures are presented by our management as supplemental financial measures to allow external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. These measures are not measures of financial performance performed under GAAP and should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with GAAP. These measures may not be comparable to similarly titled non-GAAP m
01 Other Events
Item 8.01 Other Events. On May 6, 2024, the Company approved the declaration of a $0.12 per common share dividend for the fourth quarter of 2024 to shareholders of record on June 14, 2024 and payable on June 28, 2024.
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 99.1 Evolution Petroleum Corporation Press Release dated May 7, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL)
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Evolution Petroleum Corporation (Registrant) Date: May 7, 2024 By: /s/ RYAN STASH Name: Ryan Stash Title: Senior Vice President and Chief Financial Officer