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HOUSTON, July 01, 2025 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced the initial results of its joint interest audit of its Barnett Shale properties and is providing an update on its latest Chaveroo drilling results. Joint Interest Audit Results In fiscal year 2024, Evolution exercised its right to perform a joint interest audit of expenses charged from Diversified Energy Company (“Diversified”), the largest operator of its Barnett Sh ...

Group 1 - Evolution Petroleum (NYSE: EPM) is characterized as a small-cap oil and gas company with modest production and a focus on profitability rather than aggressive expansion [1] - The company does not aim to be the largest player in the industry, instead prioritizing steady profitability [1] - The investment strategy highlighted involves a blend of fundamental momentum, technical chart structure, and sentiment analysis to identify high-potential stocks [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-32942 EVOLUTION PETROLEUM CORPORATION (IRS Employer Identification No.) 1155 Dairy Ashford Road, Suite 425, Houston, Texas 7 ...

Evolution Petroleum (EPM) Q3 2025 Earnings Call May 14, 2025 11:00 AM ET Company Participants Brandi Hudson - IR ManagerKelly Loyd - CEO, President & DirectorMark Bunch - COORyan Stash - Senior Vice President, Chief Financial Officer, TreasurerChristopher Degner - Managing Director Conference Call Participants Jeff Grampp - Managing Director - Senior Research AnalystC.K. Poe Fratt - MD - Equity Research & Senior Transportation Analyst Operator Good morning, everyone, and welcome to the Evolution Petroleum F ...

Financial Data and Key Metrics Changes - Total revenues for fiscal Q3 were $22.6 million, a decrease of 2% year over year, primarily due to lower volumes, partially offset by a 7% increase in average realized commodity prices driven by stronger natural gas and NGL prices [21] - Net loss for the third quarter was $2.2 million or $0.07 per share, compared to net income of $0.3 million or $0.01 per share in the prior year [22] - Adjusted EBITDA for Q3 was $7.4 million, down from $8.5 million in the year-ago period, primarily due to lower revenue volumes and higher operating costs [22] Business Line Data and Key Metrics Changes - Natural gas revenue rose 33% year over year to $7.8 million, while NGL revenue increased 14% to $3 million, partially offsetting a 19% decline in oil revenue [10] - Total production declined 7.5% year over year to 6,667 barrels of oil equivalent per day, primarily due to planned maintenance and weather-related downtime [11] Market Data and Key Metrics Changes - Oil prices softened during April, falling nearly $12 a barrel to below $60, while natural gas prices strengthened, providing a partial offset to the decline in crude prices [10] - Approximately 40% of oil volumes are hedged at prices above $70 through the fiscal year end, providing a safety net for capital expenditures and dividends [11] Company Strategy and Development Direction - The company remains focused on disciplined capital allocation, sustaining dividends, and pursuing opportunistic growth, particularly in gas-weighted opportunities [14][15] - The recent Tex Mex acquisition adds approximately 440 barrels of oil equivalent per day of stable low decline production, aligning with the company's long-term strategy to own cash-generative low-risk assets [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to sustain dividends despite ongoing commodity price volatility, highlighting a strong operating cash flow driven by a diversified portfolio [13] - The decision to delay the start of the third development block reflects a prudent approach to focus on gas-weighted opportunities in light of recent market volatility [14] Other Important Information - The company declared a cash dividend of $0.12 per share, marking the 47th consecutive quarter of issuing a dividend [12] - The company has returned approximately $131 million or $3.93 per share to shareholders in common stock dividends to date [13] Q&A Session Summary Question: Insights on M&A market and bid-ask spreads - Management noted that while bid-ask spreads may widen with weaker oil prices, there are still encouraging opportunities in the M&A market, particularly for low decline assets [30][34] Question: Performance of new wells at Chavaroo - The new wells were completed approximately 5% under budget and are performing about 50% above initial expectations, attributed to favorable drilling conditions [39][41] Question: Impact of shifting from CO2 floods to waterflood in Delhi EOR project - Management highlighted significant cost savings of approximately $400,000 per month from this shift, with no expected negative impact on performance [51][52] Question: Clarification on production increase from Tex Mex and Chavaroo - The combined production from Tex Mex and Chavaroo is expected to exceed initial estimates, with Tex Mex contributing around 440 BOE per day [56][59] Question: Rationale for adding a new bank for credit facility - The addition of a new bank was to increase total commitments and provide flexibility while maintaining favorable terms with existing lenders [64][66]

Evolution Petroleum Fiscal Third Quarter 2025 Results [Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) In fiscal Q3 2025, Evolution Petroleum reported a net loss of **$2.2 million** despite an **11%** sequential increase in revenue to **$22.6 million**, driven by strong natural gas prices Q3 2025 Key Financial & Operational Metrics | Metric | Q3 2025 | Q2 2025 | Q3 2024 | % Change (QoQ) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Average BOEPD | 6,667 | 6,935 | 7,209 | (4)% | (8)% | | Revenues ($ in thousands) | $22,561 | $20,275 | $23,025 | 11% | (2)% | | Net Income (Loss) ($ in thousands) | $(2,179) | $(1,825) | $289 | NM | NM | | Adjusted Net Income ($ in thousands) | $806 | $(841) | $978 | NM | (18)% | | Adjusted EBITDA ($ in thousands) | $7,421 | $5,688 | $8,476 | 30% | (12)% | - Fiscal Q3 production was **6,667 BOEPD**, with revenue composed of **52%** oil, **35%** natural gas, and **13%** NGLs[3](index=3&type=chunk) - Subsequent to the quarter's end, the company brought **four new wells** online at Chaveroo Field and closed the TexMex acquisition, collectively adding over **850 net BOEPD** to production[3](index=3&type=chunk) - The company returned **$4.1 million** to shareholders through dividends and repaid **$4.0 million** of principal on its credit facility during the quarter[3](index=3&type=chunk) [Management Commentary](index=3&type=section&id=Management%20Commentary) CEO Kelly Loyd highlighted the company's commitment to shareholder returns, maintaining the quarterly dividend at **$0.12 per share** for the **twelfth consecutive quarter** - The quarterly dividend is maintained at **$0.12 per share** for the **twelfth consecutive quarter**, underscoring a commitment to sustainable shareholder returns[4](index=4&type=chunk) - Despite weather and maintenance-related production downtime, the company met all capital obligations, including **~$8.5 million** in dividends and capex, and repaid **$4.0 million** of debt[5](index=5&type=chunk) - The company is delaying the next Chaveroo development block until fiscal year 2026 to focus on acquiring oil-weighted, low-decline properties at discounted prices and preserving high-value locations for better market conditions[7](index=7&type=chunk) [Financial Performance Analysis](index=3&type=section&id=Fiscal%20Third%20Quarter%202025%20Financial%20Results) Total revenues for fiscal Q3 2025 decreased by **2%** year-over-year to **$22.6 million**, primarily due to an **8%** drop in production volumes, partially offset by a **7%** rise in average realized commodity prices - Total revenues decreased **2%** YoY to **$22.6 million**, driven by an **8%** decrease in production volumes, partially offset by a **7%** increase in average realized commodity prices[8](index=8&type=chunk) - Lease operating costs (LOE) rose to **$13.4 million** from **$12.6 million** in the year-ago quarter, mainly due to resumed CO2 purchases at Delhi Field and the inclusion of SCOOP/STACK properties[9](index=9&type=chunk) - The company reported a net loss of **$2.2 million** (**$(0.07) per share**), compared to a net income of **$0.3 million** (**$0.01 per share**) in the year-ago period[12](index=12&type=chunk) - Adjusted EBITDA decreased to **$7.4 million** from **$8.5 million** in the prior-year period, primarily due to lower production and higher operating costs[13](index=13&type=chunk) [Production & Pricing](index=4&type=section&id=Production%20%26%20Pricing) Total production for Q3 fiscal 2025 decreased by **7.5%** year-over-year to **6,667 net BOEPD**, attributed to maintenance at Delhi Field, weather impacts at Barnett Shale, and natural declines Average Realized Price per Unit (YoY Comparison) | Commodity | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | Crude oil (BBL) | $68.42 | $73.06 | (6)% | | Natural gas (MCF) | $3.87 | $2.77 | 40% | | Natural Gas Liquids (BBL) | $32.28 | $25.26 | 28% | | Equivalent (BOE) | $37.60 | $35.10 | 7% | - Total production decreased **7.5%** YoY to **6,667 net BOEPD**, comprising **1,911 BOPD** of crude oil, **3,723 BOEPD** of natural gas, and **1,033 BOEPD** of NGLs[14](index=14&type=chunk) - The production decrease was driven by planned maintenance at Delhi Field, winter weather impacts at Barnett Shale, and natural declines, partially offset by new production from SCOOP/STACK properties[14](index=14&type=chunk) [Operations Update](index=5&type=section&id=Operations%20Update) Operational activity was robust across several assets, including **13 gross wells** brought online at SCOOP/STACK and **four new wells** completed at Chaveroo Field under budget - **SCOOP/STACK:** Brought **13 gross wells** online fiscal year-to-date, with five more in progress[17](index=17&type=chunk) - **Chaveroo:** Successfully completed and brought online **four new gross wells** under budget, with early production rates significantly exceeding expectations[17](index=17&type=chunk) - **Delhi:** Production was affected by planned maintenance, and the company switched from purchasing CO2 to additional water injection to reduce operating costs and maximize cash flow[19](index=19&type=chunk) - **Barnett Shale:** Delivered consistent cash flow, with improved realized pricing for natural gas and NGLs offsetting brief winter storm downtime[21](index=21&type=chunk) [Balance Sheet, Liquidity, and Capital Spending](index=5&type=section&id=Balance%20Sheet,%20Liquidity,%20and%20Capital%20Spending) As of March 31, 2025, the company had **$5.6 million** in cash and **$35.5 million** outstanding on its revolving credit facility, with total liquidity of **$20.1 million** - As of March 31, 2025, the company had **$5.6 million** in cash, **$35.5 million** of borrowings outstanding, and total liquidity of **$20.1 million**[22](index=22&type=chunk) - Key cash uses in Q3 included **$4.1 million** in dividends, **$4.0 million** in debt repayments, and **$4.4 million** in capital expenditures[23](index=23&type=chunk) - The Senior Secured Credit Facility maturity has been extended to April 2028, and total commitments are expected to increase from **$50.0 million** to **$65.0 million** with the addition of a new lender[24](index=24&type=chunk) [Shareholder Returns](index=6&type=section&id=Cash%20Dividend%20on%20Common%20Stock) Evolution's Board of Directors declared a quarterly cash dividend of **$0.12 per share**, marking the **47th consecutive quarterly dividend** - The Board of Directors declared a cash dividend of **$0.12 per share** of common stock for the fiscal fourth quarter[25](index=25&type=chunk) - This marks the **47th consecutive quarterly cash dividend** paid by the company since December 31, 2013[25](index=25&type=chunk) - Cumulatively, Evolution has returned approximately **$130.7 million**, or **$3.93 per share**, to stockholders in dividends[25](index=25&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) The unaudited financial statements detail the company's performance, showing a net loss of **$2.18 million** and total assets of **$156.4 million** as of March 31, 2025 [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended March 31, 2025, total revenues were **$22.56 million**, down from **$23.03 million** in the prior-year quarter, resulting in a net loss of **$2.18 million** Q3 2025 Statement of Operations Summary (in thousands) | Line Item | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenues | $22,561 | $23,025 | | Total operating costs | $20,975 | $20,941 | | Income (loss) from operations | $1,586 | $2,084 | | Net gain (loss) on derivative contracts | $(3,802) | $(1,183) | | Net income (loss) | $(2,179) | $289 | | Diluted EPS | $(0.07) | $0.01 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets stood at **$156.4 million**, a decrease from **$162.9 million** at June 30, 2024, while total liabilities increased to **$84.7 million** Balance Sheet Summary (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total current assets | $19,794 | $21,723 | | Total assets | $156,394 | $162,877 | | Total current liabilities | $22,522 | $15,813 | | Senior secured credit facility | $35,500 | $39,500 | | Total liabilities | $84,734 | $81,750 | | Total stockholders' equity | $71,660 | $81,127 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended March 31, 2025, net cash provided by operating activities was **$7.3 million**, with significant cash used in investing and financing activities Q3 2025 Cash Flow Summary (in thousands) | Cash Flow Item | Three Months Ended Mar 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $7,263 | | Net cash used in investing activities | $(6,224) | | Net cash provided by (used in) financing activities | $(7,105) | | Net decrease in cash and cash equivalents | $(6,066) | | Cash and cash equivalents, end of period | $5,601 | [Non-GAAP Reconciliations](index=11&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations for non-GAAP measures, with Adjusted EBITDA reconciled from a net loss of **$2.2 million** to **$7.4 million** for Q3 2025 [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) For the third quarter of fiscal 2025, the company reconciled its GAAP net loss of **$2.18 million** to a non-GAAP Adjusted EBITDA of **$7.42 million** Q3 2025 Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q3 2025 | | :--- | :--- | | Net income (loss) | $(2,179) | | Interest expense | $705 | | Income tax expense (benefit) | $(687) | | Depletion, depreciation, and accretion | $5,014 | | Stock-based compensation | $642 | | Unrealized loss on derivative contracts | $3,926 | | **Adjusted EBITDA** | **$7,421** | [Adjusted Net Income Reconciliation](index=12&type=section&id=Adjusted%20Net%20Income%20Reconciliation) The company's reported GAAP net loss of **$2.18 million** for Q3 2025 was adjusted to a non-GAAP Adjusted Net Income of **$0.81 million** Q3 2025 Adjusted Net Income Reconciliation (in thousands) | Line Item | Q3 2025 | | :--- | :--- | | Net income (loss), as reported | $(2,179) | | Unrealized loss on commodity contracts | $3,926 | | Income tax effect of selected items | $941 | | Selected items, net of tax | $2,985 | | **Net income, excluding selected items** | **$806** | [Supplemental Information](index=13&type=section&id=Supplemental%20Information) Supplemental data provides a detailed breakdown of operations, including total production of **600 MBOE** and total lease operating costs of **$22.32 per BOE** for Q3 2025 [Oil and Natural Gas Operations](index=13&type=section&id=Supplemental%20Information%20on%20Oil%20and%20Natural%20Gas%20Operations) In Q3 2025, total production was **600 MBOE**, down from **656 MBOE** in the prior-year quarter, while the average sales price per BOE increased to **$37.60** Q3 2025 Production and Cost per BOE | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Equivalent Production (MBOE) | 600 | 656 | | Average Daily Production (BOEPD) | 6,667 | 7,209 | | Average Sales Price ($/BOE) | $37.60 | $35.10 | | Total Lease Operating Costs ($/BOE) | $22.32 | $19.24 | | Depletion ($/BOE) | $7.68 | $8.43 | [Production Volumes and Sales Price by Field](index=14&type=section&id=Summary%20of%20Production%20Volumes%20and%20Average%20Sales%20Price) For Q3 2025, total crude oil production was **172 MBBL** at an average price of **$68.42/BBL**, with Barnett Shale being the largest producing field at **2,256 BOEPD** Q3 2025 Average Daily Production by Field (BOEPD) | Field | Q3 2025 BOEPD | | :--- | :--- | | SCOOP/STACK | 1,044 | | Chaveroo Field | 89 | | Jonah Field | 1,567 | | Williston Basin | 522 | | Barnett Shale | 2,256 | | Hamilton Dome Field | 378 | | Delhi Field | 811 | | **Total** | **6,667** | [Production Costs by Field](index=15&type=section&id=Summary%20of%20Average%20Production%20Costs) In Q3 2025, total lease operating costs were **$13.4 million**, averaging **$22.32 per BOE**, with Delhi Field having the highest cost per unit at **$48.04/BOE** Q3 2025 Lease Operating Costs by Field ($/BOE) | Field | LOE per BOE | | :--- | :--- | | SCOOP/STACK | $11.74 | | Chaveroo Field | $15.77 | | Jonah Field | $15.51 | | Williston Basin | $31.45 | | Barnett Shale | $18.47 | | Hamilton Dome Field | $36.36 | | Delhi Field | $48.04 | | **Total Average** | **$22.32** | [Open Derivative Contracts](index=16&type=section&id=Summary%20of%20Open%20Derivative%20Contracts) As of May 12, 2025, the company had multiple open derivative contracts to hedge crude oil and natural gas prices, including fixed-price swaps and collars extending through December 2027 - The company utilizes a combination of fixed-price swaps and collars to hedge its crude oil and natural gas production[45](index=45&type=chunk) - Natural gas hedges include fixed-price swaps at approximately **$3.60/MMBTU** extending through December 2027 and collars with floors ranging from **$3.50** to **$4.00/MMBTU**[45](index=45&type=chunk)

Core Viewpoint - Evolution Petroleum Corporation reported its financial and operational results for the fiscal third quarter ended March 31, 2025, declaring a quarterly cash dividend of $0.12 per share, marking the 47th consecutive dividend payment, reflecting the company's commitment to shareholder returns despite market volatility [1][3][23]. Financial & Operational Highlights - Average production for Q3 2025 was 6,667 BOEPD, a decrease of 4% from Q2 2025 and 8% from Q3 2024 [2][6]. - Revenues increased by 11% to $22.6 million compared to Q2 2025 but decreased by 2% compared to Q3 2024 [2][8]. - The company reported a net loss of $2.2 million, or $(0.07) per share, compared to a net income of $0.3 million, or $0.01 per share, in the year-ago period [12][40]. - Adjusted EBITDA for Q3 2025 was $7.4 million, a 30% increase from Q2 2025 but a decrease from $8.5 million in the year-ago period [2][13]. Production & Pricing - The average realized commodity price increased by 7% to $37.60 per BOE, driven by a 40% increase in realized natural gas prices year-over-year [15][14]. - Total production for Q3 2025 included 1,911 BOPD of crude oil, 3,723 BOEPD of natural gas, and 1,033 BOEPD of NGLs, with oil accounting for 52% of revenue [6][14]. Operations Update - The company successfully completed and brought online four new gross wells in the Chaveroo Field, exceeding early production expectations [16][5]. - The TexMex acquisition, closed after the quarter end, is expected to contribute over 850 net BOEPD to production [5][4]. Balance Sheet, Liquidity, and Capital Spending - As of March 31, 2025, cash and cash equivalents totaled $5.6 million, with a working capital deficit of $2.7 million [21]. - The company had $35.5 million in borrowings under its revolving credit facility and total liquidity of $20.1 million [21][22]. - In Q3, the company paid $4.1 million in dividends and $4.0 million in repayments of its Senior Secured Credit Facility [21][4]. Dividend Declaration - The Board of Directors declared a cash dividend of $0.12 per share, to be paid on June 30, 2025, to stockholders of record on June 13, 2025 [23][1].

Core Viewpoint - Evolution Petroleum (EPM) is expected to report quarterly earnings of $0.04 per share, a 33.3% increase year-over-year, while revenues are forecasted to decline by 3% to $22.34 million [1] Earnings Estimates - The consensus EPS estimate has been revised down by 75% over the last 30 days, indicating a significant reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance [3] Key Metrics Projections - Total oil and gas production per day is projected to be 6,876.00 BOE/D, down from 7,209 BOE/D in the same quarter last year [5] - The average sales price for crude oil is estimated at $67.70, compared to $73.06 in the same quarter of the previous year [5] - The average sales price for natural gas liquids is expected to be $25.22, slightly down from $25.26 year-over-year [6] - Production of natural gas is anticipated to be 2,008,765.00 MMcf, down from 2,115,000 MMcf in the same quarter last year [6] - Production of crude oil is projected at 184,505.00 MBBL, compared to 199,000 MBBL in the same quarter last year [7] - Production of natural gas liquids is expected to reach 103,020.00 MBBL, slightly down from 104,000 MBBL year-over-year [7] Stock Performance - Evolution Petroleum shares have decreased by 1.2% over the past month, contrasting with a 13.7% increase in the Zacks S&P 500 composite [8] - With a Zacks Rank of 5 (Strong Sell), EPM is expected to underperform the overall market in the near term [8]

Evolution Petroleum (EPM) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on May 13, 2025, might help the stock move higher if these key numbers are better than ...