Evolution Petroleum Corp. (NYSE MKT:EPM) Q2 2019 Earnings Conference Call Transcript
Feb 07, 2019 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to your Evolution Petroleum Second Quarter Fiscal 2019 Earnings Release Conference Call. All lines have been placed on a listen-only mode and the floor will be open for questions and comments following the presentation. (Operator Instructions)
At this time, it is my pleasure to turn the floor over to your host, David Joe, Chief Financial Officer. Sir, the floor is yours.
Thank you, Karen. Good morning and welcome to Evolution Petroleum's earnings call for our fiscal 2019 second quarter ended December 31, 2018. We will discuss operating and financial results for the quarter. I am David Joe, CFO, and joining me on the call today is Bob Herlin, Chairman of the Board and Interim CEO; and Steve Hicks, Senior Vice President of Engineering and Business Development.
If you wish to listen to a replay of today's call, it will be available shortly by going to the company's website or via a recorded replay until March 6, 2019. Please note that any statements and information provided today are time sensitive and may not be accurate at a later date. Our discussion today will contain forward-looking statements of management's beliefs and assumptions based on currently available information.
These forward-looking statements are subject to risks and uncertainties that are listed and described in our filings with the SEC. Actual results may differ materially from those expected. Since detailed numbers are readily available to everyone in yesterday's news release, this call will highlight the key results and overall trends and an update on Delhi for the remainder of our fiscal 2019.
I am now going to turn the call over to Bob Herlin.
Thanks, David, and welcome to everybody for this second quarter of our fiscal 2019 earnings call. Once again Evolution has posted a really strong quarter of performance. We had earnings of almost $4 million on $11 million in revenues, nice ratio. We had quarterly cash flow from operations of $14 million, and we are able to fund our CapEx at Delhi payout over $3 million dividends and increase our working capital by $3 million compared to the start of the fiscal year.
So we did pretty well fiscally for the shareholders. We now have almost $31 million of working capital, with no debt drawn on our elected $40 million borrowing base. Our Delhi Field asset is performing really well, with our 2018 infill well program already beginning to contribute meaningfully to production. We're working with the operator on some new projects that could further increase cash flows and value of our assets there.
We expect to begin next phase of project expansion at Delhi sometime during our fiscal 2020 period. Since we don't have any debt outstanding, the board has elected to not utilize hedges on recent periods. Consequently, our current and future performance will be tied to losing the light sweet oil price that currently sells at a nice premium to NYMEX, which is a real benefit to our shareholders.
Now we review that