Group 1 - Evolution Petroleum reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, with an earnings surprise of +50.00% [1] - The company posted revenues of $21.11 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.2%, and compared to year-ago revenues of $21.23 million [2] - Over the last four quarters, Evolution Petroleum has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] Group 2 - The stock has added about 0.8% since the beginning of the year, underperforming the S&P 500's gain of 12.5% [3] - The current consensus EPS estimate for the coming quarter is $0.01 on $21.5 million in revenues, and $0.09 on $87.9 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 28% of over 250 Zacks industries, indicating potential challenges for the sector [8]

Fiscal Fourth Quarter and Full Year Fiscal 2025 Results Overview This section provides an executive summary of Evolution Petroleum's strong fiscal Q4 and full-year 2025 performance, highlighting key financial and operational achievements [Executive Summary and Key Highlights](index=1&type=section&id=1.1.%20Executive%20Summary%20and%20Key%20Highlights) Evolution Petroleum reported strong fiscal Q4 2025 results with a significant increase in net income and Adjusted EBITDA, driven by a diversified energy portfolio and strategic acquisitions. The company maintained its dividend policy and achieved near-record total production for the full fiscal year Financial Highlights | ($ in thousands) | Q4 2025 | Q4 2024 | Q3 2025 | % Change Q4/Q4 | % Change Q4/Q3 | | :--------------- | :------ | :------ | :------ | :------------- | :------------- | | Average BOEPD | 7,198 | 7,209 | 6,667 | — % | 8 % | | Revenues | $21,108 | $21,227 | $22,561 | (1)% | (6)% | | Net Income (Loss)| $3,412 | $1,235 | $(2,179)| 176 % | NM | | Adjusted Net Income (Loss) | $1,129 | $1,093 | $806 | 3 % | 40 % | | Adjusted EBITDA | $8,572 | $8,037 | $7,421 | 7 % | 16 % | - Fiscal Q4 production was **7,198 average BOEPD**, with oil accounting for **61% of revenue**, natural gas **27%**, and NGLs **12%**[4](index=4&type=chunk) - Returned **$4.1 million** to shareholders in cash dividends during fiscal Q4 and **$16.3 million** for fiscal year 2025. Declared **13th consecutive dividend of $0.12 per common share**, marking its **48th consecutive quarterly payment**[4](index=4&type=chunk) - Generated near-record total production in fiscal 2025, averaging **7,074 BOEPD**, up **4%** from fiscal 2024[4](index=4&type=chunk) [Subsequent Events](index=2&type=section&id=1.2.%20Subsequent%20Events) Following the fiscal quarter end, Evolution Petroleum completed its largest minerals-only acquisition to date and secured additional borrowing capacity - In August 2025, Evolution closed its largest minerals-only acquisition in the SCOOP/STACK for approximately **$17 million**, adding **~5,500 net royalty acres** and **~420 net BOE per day**[6](index=6&type=chunk) - The acquisition was funded with cash and **$15.0 million** in borrowings under the Company's Senior Secured Credit Facility[6](index=6&type=chunk) [Management Commentary](index=2&type=section&id=1.3.%20Management%20Commentary) CEO Kelly Loyd highlighted fiscal 2025 as a defining year, marked by near-record production, consistent shareholder returns, strengthened balance sheet, and strategic acquisitions to enhance long-term profitability and cash flow durability - Fiscal 2025 was a defining year, approximating company records in total production and liquids production, maintaining quarterly dividend at **$0.12 per share**, and returning **$16.3 million** to shareholders[7](index=7&type=chunk) - Strengthened the balance sheet by amending and restating the credit facility to add liquidity and extend maturity to **June 30, 2028**, and added another lender[7](index=7&type=chunk) - Closed the largest minerals-only acquisition in company history and advanced high-return development at Chaveroo, positioning the Company to generate durable cash flow[7](index=7&type=chunk) - Future strategy includes remaining selective and returns-focused, opportunistically acquiring cash-generating, low-decline assets, pacing development to market conditions, and using hedges to provide a solid base of returns[8](index=8&type=chunk) Fiscal Fourth Quarter 2025 Financial Performance This section details Evolution Petroleum's financial results for fiscal Q4 2025, covering revenues, operating costs, net income, and Adjusted EBITDA [Revenues](index=2&type=section&id=2.1.%20Revenues) Total revenues for fiscal Q4 2025 saw a slight decrease year-over-year, primarily due to lower realized oil and NGL prices, partially offset by higher natural gas prices Revenues Breakdown | Revenues ($ in thousands) | Q4 2025 | Q4 2024 | % Change Y/Y | | :------------------------ | :------ | :------ | :----------- | | Crude oil | $12,833 | $14,533 | (11.7)% | | Natural gas | $5,648 | $3,582 | 57.7% | | Natural gas liquids | $2,627 | $3,112 | (15.6)% | | Total revenues | $21,108 | $21,227 | (0.6)% | - Total revenues decreased **1%** to **$21.1 million** compared to **$21.2 million** in the year-ago quarter, driven by **20%** and **12%** lower realized oil and NGL prices, respectively, partially offset by higher realized natural gas prices[9](index=9&type=chunk) [Operating Costs](index=2&type=section&id=2.2.%20Operating%20Costs) Lease operating costs remained flat year-over-year, while depletion, depreciation, and accretion (DD&A) and general and administrative (G&A) expenses increased, reflecting changes in asset mix and prior year adjustments Operating Costs Breakdown | Operating Costs ($ in thousands) | Q4 2025 | Q4 2024 | % Change Y/Y | | :------------------------------- | :------ | :------ | :----------- | | Lease operating costs (LOE) | $11,367 | $11,408 | (0.4)% | | Depletion, depreciation, and accretion | $5,821 | $5,302 | 9.8% | | General and administrative expenses | $2,580 | $2,114 | 22.0% | | Total operating costs | $19,768 | $18,824 | 5.0% | - LOE was **$11.4 million**, flat year-over-year, but included additional costs from the TexMex acquisition, higher workover expenses, and plant maintenance, offset by a Barnett joint-interest audit benefit[9](index=9&type=chunk)[10](index=10&type=chunk) - Depletion rate increased to **$8.27 per BOE** from **$7.51 per BOE**, reflecting changes in the depletable base and asset mix[11](index=11&type=chunk) - G&A expenses (excluding stock-based compensation) increased by **$0.4 million** to **$2.0 million**, primarily due to a prior year downward adjustment for accrued bonuses[12](index=12&type=chunk) [Net Income and Adjusted Net Income](index=3&type=section&id=2.3.%20Net%20Income%20and%20Adjusted%20Net%20Income) Net income significantly increased in fiscal Q4 2025, while adjusted net income also saw a modest rise, reflecting improved profitability despite revenue fluctuations Net Income and Adjusted Net Income | Net Income ($ in thousands) | Q4 2025 | Q4 2024 | % Change Y/Y | | :-------------------------- | :------ | :------ | :----------- | | Net income (loss) | $3,412 | $1,235 | 176% | | Net income (loss) per diluted share | $0.10 | $0.04 | 150% | | Adjusted net income (loss) | $1,129 | $1,093 | 3% | | Adjusted net income (loss) per diluted share | $0.03 | $0.03 | 0% | [Adjusted EBITDA](index=3&type=section&id=2.4.%20Adjusted%20EBITDA) Adjusted EBITDA increased year-over-year, primarily due to higher realized pricing, including the cash benefit from hedging activities Adjusted EBITDA | Adjusted EBITDA ($ in thousands) | Q4 2025 | Q4 2024 | % Change Y/Y | | :------------------------------- | :------ | :------ | :----------- | | Adjusted EBITDA | $8,572 | $8,037 | 7% | - The increase in Adjusted EBITDA was due to higher realized pricing, including the cash benefit of hedges, in the current period compared to the prior year period[14](index=14&type=chunk) Production and Pricing Analysis This section analyzes Evolution Petroleum's production volumes and average realized commodity prices for fiscal Q4 2025, highlighting key trends and drivers [Production Volumes](index=3&type=section&id=3.1.%20Production%20Volumes) Total production for fiscal Q4 2025 remained essentially flat year-over-year, with crude oil and NGLs contributing 73% of revenue, a decrease from the prior year Production Volumes | Production (MBBL/MMCF) | Q4 2025 | Q4 2024 | % Change Y/Y | | :--------------------- | :------ | :------ | :----------- | | Crude oil (MBBL) | 211 | 190 | 11.1% | | Natural gas (MMCF) | 2,045 | 2,152 | (5.0)% | | Natural gas liquids (MBBL) | 103 | 107 | (3.7)% | | Equivalent (MBOE) | 655 | 656 | (0.2)% | | Average daily production (BOEPD) | 7,198 | 7,209 | (0.2)% | - Total oil and natural gas liquids production generated **73% of revenue** for the quarter compared to **83%** in the year-ago period[15](index=15&type=chunk) - Production changes were driven by downtime in the Delhi Field, pipeline balancing in the Jonah Field, and natural declines, partially offset by the TexMex acquisition and Chaveroo wells[15](index=15&type=chunk) [Average Realized Commodity Prices](index=3&type=section&id=3.2.%20Average%20Realized%20Commodity%20Prices) Average realized commodity prices remained stable overall, with a significant increase in natural gas prices offsetting declines in crude oil and NGL prices Average Realized Commodity Prices | Average price per unit | Q4 2025 | Q4 2024 | % Change Y/Y | | :--------------------- | :------ | :------ | :----------- | | Crude oil (BBL) | $60.82 | $76.49 | (20)% | | Natural gas (MCF) | $2.76 | $1.66 | 66 % | | Natural Gas Liquids (BBL) | $25.50 | $29.08 | (12)% | | Equivalent (BOE) | $32.23 | $32.36 | — % | - Average realized commodity price (excluding derivative contracts) decreased slightly to **$32.23 per BOE**, primarily due to lower realized oil and NGL prices, partially offset by a **66% increase** in realized natural gas prices[16](index=16&type=chunk)[17](index=17&type=chunk) Operational Updates This section provides an overview of Evolution Petroleum's operational activities across its key fields, including SCOOP/STACK, Chaveroo, Delhi, and Jonah [SCOOP/STACK Operations](index=4&type=section&id=4.1.%20SCOOP%2FSTACK%20Operations) Drilling activity moderated in the SCOOP/STACK legacy position, with production from recently drilled wells contributing in Q4, and activity continuing on newly acquired mineral acreage - Drilling activity on the Company's legacy position moderated during the quarter, with **five wells** remaining in progress[18](index=18&type=chunk) - Production from certain recently drilled wells began contributing in the fiscal fourth quarter, and activity is continuing across the newly acquired mineral acreage[18](index=18&type=chunk) [Chaveroo Field Operations](index=4&type=section&id=4.2.%20Chaveroo%20Field%20Operations) Four new gross wells were brought online at Chaveroo under budget and ahead of expectations, with future drilling paced by commodity prices - Four new gross wells were completed and brought online in the second development block on schedule and under budget, exceeding pre-drill expectations[19](index=19&type=chunk) - Permitting for the next pad is underway, but timing for additional drilling will be paced to commodity prices[19](index=19&type=chunk) [Delhi Field Operations](index=4&type=section&id=4.3.%20Delhi%20Field%20Operations) Delhi operations experienced downtime due to facility safety upgrades and reduced CO2 injections, impacting production volumes - Operations experienced downtime related to shut-ins for facility safety upgrades and reduced CO2 injections due to higher summer temperatures[20](index=20&type=chunk) - The operator continues to inject only recycled CO₂[20](index=20&type=chunk) [Jonah Field Operations](index=4&type=section&id=4.4.%20Jonah%20Field%20Operations) Jonah operations remained steady, though reported sales volumes were negatively impacted by pipeline balancing and allocation timing, with make-up volumes expected in fiscal Q1 2026 - Operations remained steady, but reported sales volumes were negatively impacted by pipeline balancing and allocation timing[20](index=20&type=chunk) - Make-up volumes are expected to benefit the fiscal first quarter of 2026[20](index=20&type=chunk) Balance Sheet, Liquidity, and Capital Spending This section reviews Evolution Petroleum's financial position, including liquidity, credit facility, capital expenditures, and operating cash flow [Liquidity and Credit Facility](index=4&type=section&id=5.1.%20Liquidity%20and%20Credit%20Facility) Evolution Petroleum strengthened its liquidity position by amending its credit facility, increasing the borrowing base and adding a new lender to support future acquisitions Liquidity and Borrowings | Financial Metric ($ in thousands) | June 30, 2025 | | :-------------------------------- | :------------ | | Cash and cash equivalents | $2,507 | | Borrowings outstanding | $37,500 | | Total liquidity | $30,000 | - Amended and restated senior secured reserve-based credit facility, establishing an initial **$65 million** borrowing base under a **$200 million** revolver maturing **June 30, 2028**[4](index=4&type=chunk)[22](index=22&type=chunk) - Added a second lender to increase the borrowing base to **$65 million** and provide additional credit capacity for future acquisitions[22](index=22&type=chunk) - After additional borrowings for the SCOOP/STACK acquisition and a letter of credit issuance, current remaining availability under the credit facility is **$11.7 million**[23](index=23&type=chunk)[24](index=24&type=chunk) [Capital Expenditures and Operating Cash Flow](index=4&type=section&id=5.2.%20Capital%20Expenditures%20and%20Operating%20Cash%20Flow) The company generated substantial cash flow from operating activities in fiscal Q4 2025, while investing in capital expenditures and acquisitions Cash Flow and Capital Expenditures | Cash Flow Item ($ in thousands) | Q4 2025 | | :------------------------------ | :------ | | Capital expenditures | $4,700 | | Net cash provided by operating activities | $10,500 | - Invested **$4.7 million** in capital expenditures during fiscal Q4[21](index=21&type=chunk) - Net cash provided by operating activities was **$10.5 million** for the quarter[21](index=21&type=chunk) - Closed on **$9 million** TexMex acquisition of non-operated oil and natural gas assets on **April 14th**, adding **~440 net BOEPD**[5](index=5&type=chunk) Shareholder Returns This section highlights Evolution Petroleum's commitment to shareholder returns through its consistent cash dividend policy [Cash Dividend on Common Stock](index=5&type=section&id=6.1.%20Cash%20Dividend%20on%20Common%20Stock) Evolution Petroleum declared its 48th consecutive quarterly cash dividend, demonstrating a sustained commitment to returning capital to shareholders - Declared a cash dividend of **$0.12 per common share** for the fiscal 2026 first quarter, payable **September 30, 2025**[2](index=2&type=chunk)[4](index=4&type=chunk)[25](index=25&type=chunk) - This marks the **48th consecutive quarterly cash dividend** on the Company's common stock since **December 31, 2013**[25](index=25&type=chunk) - To date, Evolution has returned approximately **$134.8 million**, or **$4.05 per share**, back to stockholders in common stock dividends[25](index=25&type=chunk) Company Information This section provides an overview of Evolution Petroleum's business focus and a cautionary statement regarding forward-looking information [About Evolution Petroleum](index=5&type=section&id=7.1.%20About%20Evolution%20Petroleum) Evolution Petroleum Corporation is an independent energy company focused on maximizing shareholder returns through ownership and investment in onshore U.S. oil and natural gas properties, aiming for a diversified portfolio through acquisitions and exploitation efforts - Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S[27](index=27&type=chunk) - The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts[27](index=27&type=chunk) [Cautionary Statement](index=5&type=section&id=7.2.%20Cautionary%20Statement) The report contains forward-looking statements subject to various risks and uncertainties, and actual results may differ materially from expectations. The company disclaims any obligation to update these statements - All forward-looking statements regarding the Company's current and future expectations, potential results, and plans involve a wide range of risks and uncertainties[28](index=28&type=chunk) - Many factors could cause actual results to differ materially from expectations, as detailed under 'Risk Factors' in SEC filings[28](index=28&type=chunk) - The Company undertakes no obligation to update any forward-looking statement[28](index=28&type=chunk) Proved Reserves as of June 30, 2025 This section presents Evolution Petroleum's independently estimated proved reserves as of June 30, 2025, categorized by development status and asset location [Reserve Categories](index=7&type=section&id=8.1.%20Reserve%20Categories) Evolution Petroleum's proved reserves as of June 30, 2025, were estimated by independent reservoir engineers, adhering to SEC rules for disclosure and classification Proved Reserves by Category | Reserve Category | Oil (MBbls) | Natural Gas (MMcf) | NGLs (MBbls) | Total Proved Reserves (MBOE) | | :-------------------- | :---------- | :----------------- | :----------- | :--------------------------- | | Proved Developed Producing | 8,349 | 57,149 | 4,311 | 22,185 | | Proved Non-Producing | 378 | 757 | 5 | 509 | | Proved Undeveloped | 3,401 | 3,599 | 412 | 4,413 | | Total Proved | 12,128 | 61,505 | 4,728 | 27,107 | - Proved reserves were estimated by independent reservoir engineers, Cawley, Gillespie and Associates, Inc. and DeGolyer and MacNaughton[31](index=31&type=chunk) - SEC rules require disclosure of proved reserves by significant geographic area, using the trailing 12-month average price, and allow new technologies for determination if empirically demonstrated reliable[32](index=32&type=chunk) [Reserves by Asset](index=7&type=section&id=8.2.%20Reserves%20by%20Asset) The company's total proved reserves are diversified across various assets, with significant contributions from Barnett Shale, Delhi Field, and Jonah Field Proved Reserves by Asset | Asset | Oil (MBbls) | Natural Gas (MMcf) | NGLs (MBbls) | Total Proved Reserves (MBOE) | | :-------------- | :---------- | :----------------- | :----------- | :--------------------------- | | TexMex | 1,925 | 6,429 | — | 2,997 | | SCOOP/STACK | 1,268 | 11,498 | 716 | 3,900 | | Chaveroo Field | 2,889 | 841 | 179 | 3,208 | | Jonah Field | 167 | 16,915 | 228 | 3,214 | | Williston Basin | 1,841 | 1,120 | 275 | 2,303 | | Barnett Shale | 74 | 24,702 | 1,903 | 6,094 | | Hamilton Dome Field | 1,831 | — | — | 1,831 | | Delhi Field | 2,133 | — | 1,427 | 3,560 | | Total Proved | 12,128 | 61,505 | 4,728 | 27,107 | Condensed Consolidated Financial Statements (Unaudited) This section provides the unaudited condensed consolidated statements of operations, balance sheets, and cash flows for Evolution Petroleum [Statements of Operations](index=8&type=section&id=9.1.%20Statements%20of%20Operations) The condensed consolidated statements of operations show a significant increase in net income for Q4 2025 compared to Q4 2024, primarily driven by a net gain on derivative contracts Condensed Consolidated Statements of Operations | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Years Ended June 30, 2025 | Years Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :------------------------ | :------------------------ | | Total revenues | $21,108 | $21,227 | $85,840 | $85,877 | | Total operating costs | $19,768 | $18,824 | $81,665 | $77,971 | | Income (loss) from operations | $1,340 | $2,403 | $4,175 | $7,906 | | Net gain (loss) on derivative contracts | $3,696 | $(109) | $473 | $(1,292) | | Net income (loss)| $3,412 | $1,235 | $1,473 | $4,080 | | Diluted EPS | $0.10 | $0.04 | $0.03 | $0.12 | [Balance Sheets](index=9&type=section&id=9.2.%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a slight decrease in total assets and stockholders' equity compared to the prior year, with an increase in total liabilities Condensed Consolidated Balance Sheets | ($ in thousands) | June 30, 2025 | June 30, 2024 | | :--------------- | :------------ | :------------ | | Cash and cash equivalents | $2,507 | $6,446 | | Total current assets | $17,375 | $21,723 | | Oil and natural gas properties, net | $142,248 | $139,685 | | Total assets | $160,252 | $162,877 | | Total current liabilities | $21,387 | $15,813 | | Senior secured credit facility | $37,500 | $39,500 | | Total liabilities| $88,439 | $81,750 | | Total stockholders' equity | $71,813 | $81,127 | [Statements of Cash Flows](index=10&type=section&id=9.3.%20Statements%20of%20Cash%20Flows) Cash flows from operating activities increased significantly for the year ended June 30, 2025, while cash used in investing activities decreased, and cash used in financing activities also decreased year-over-year Condensed Consolidated Statements of Cash Flows | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Years Ended June 30, 2025 | Years Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :------------------------ | :------------------------ | | Net cash provided by operating activities | $10,456 | $7,987 | $33,052 | $22,729 | | Net cash used in investing activities | $(11,589) | $2,508 | $(21,642) | $(49,633) | | Net cash provided by (used in) financing activities | $(1,961) | $(7,116) | $(15,349) | $22,316 | | Net increase (decrease) in cash and cash equivalents | $(3,094) | $3,379 | $(3,939) | $(4,588) | | Cash and cash equivalents, end of period | $2,507 | $6,446 | $2,507 | $6,446 | Non-GAAP Reconciliations (Unaudited) This section provides reconciliations of non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income, to their most directly comparable GAAP measures [Adjusted EBITDA Reconciliation](index=11&type=section&id=10.1.%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, is used by management and external users to assess operating performance without regard to financing methods, capital structure, or historical costs, showing an increase in Q4 2025 Adjusted EBITDA Reconciliation | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Years Ended June 30, 2025 | Years Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | :------------------------ | :------------------------ | | Net income (loss)| $3,412 | $1,235 | $1,473 | $4,080 | | Interest expense | $678 | $875 | $2,970 | $1,459 | | Income tax expense (benefit) | $973 | $243 | $396 | $1,417 | | Depletion, depreciation, and accretion | $5,821 | $5,302 | $21,993 | $20,062 | | Stock-based compensation | $622 | $552 | $2,482 | $2,137 | | Unrealized loss (gain) on derivative contracts | $(2,934) | $(170) | $492 | $893 | | Adjusted EBITDA | $8,572 | $8,037 | $29,806 | $30,048 | - Adjusted EBITDA is defined as net income (loss) plus interest expense, income tax expense (benefit), DD&A, stock-based compensation, ceiling test impairment, other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items[40](index=40&type=chunk) [Adjusted Net Income Reconciliation](index=12&type=section&id=10.2.%20Adjusted%20Net%20Income%20Reconciliation) Adjusted Net Income, a non-GAAP measure, provides insight into the impact of selected items on reported results, showing a slight increase in Q4 2025 Adjusted Net Income Reconciliation | ($ in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Years Ended June 30, 2025 | Years Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :------------------------ | :------------------------ | | Net income (loss), as reported | $3,412 | $1,235 | $1,473 | $4,080 | | Unrealized loss (gain) on commodity contracts | $(2,934) | $(170) | $492 | $893 | | Selected items, net of tax | $(2,283) | $(142) | $388 | $663 | | Net income (loss), excluding selected items | $1,129 | $1,093 | $1,861 | $4,743 | | Diluted EPS, excluding selected items | $0.03 | $0.03 | $0.04 | $0.14 | - Adjusted Net Income and earnings per share excluding selected items are non-GAAP financial measures presented to help users understand the impact of these items on reported results[42](index=42&type=chunk) Supplemental Information on Oil and Natural Gas Operations (Unaudited) This section provides unaudited supplemental details on Evolution Petroleum's oil and natural gas operations, including revenues, lease operating costs, production volumes, and average sales prices by asset [Revenues and Lease Operating Costs](index=13&type=section&id=11.1.%20Revenues%20and%20Lease%20Operating%20Costs) Supplemental data provides a detailed breakdown of revenues by commodity and lease operating costs, showing slight changes in total revenues and stable LOE year-over-year for Q4 2025 Revenues and Lease Operating Costs Breakdown | ($ in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--------------- | :------------------------------- | :------------------------------- | | **Revenues:** | | | | Crude oil | $12,833 | $14,533 | | Natural gas | $5,648 | $3,582 | | Natural gas liquids | $2,627 | $3,112 | | Total revenues | $21,108 | $21,227 | | **Lease operating costs:** | | | | Ad valorem and production taxes | $1,381 | $1,276 | | Gathering, transportation, and other costs | $2,765 | $2,730 | | Other lease operating costs | $7,221 | $7,402 | | Total lease operating costs | $11,367 | $11,408 | [Production Volumes and Average Sales Price by Asset](index=14&type=section&id=11.2.%20Production%20Volumes%20and%20Average%20Sales%20Price%20by%20Asset) Detailed production volumes and average sales prices by asset for Q4 2025 show the impact of the TexMex acquisition and varying commodity price trends across different fields Production Volumes and Average Sales Price by Asset | Asset | Q4 2025 Production (MBBL/MMCF) | Q4 2025 Price ($/unit) | Q4 2024 Production (MBBL/MMCF) | Q4 2024 Price ($/unit) | | :-------------- | :----------------------------- | :--------------------- | :----------------------------- | :--------------------- | | **Crude oil:** | | | | | | TexMex | 17 | $63.68 | — | $— | | SCOOP/STACK | 32 | $64.15 | 41 | $80.55 | | Chaveroo Field | 30 | $58.47 | 12 | $79.82 | | Delhi Field | 56 | $67.03 | 57 | $80.46 | | **Natural gas:**| | | | | | SCOOP/STACK | 312 | $3.20 | 319 | $2.70 | | Jonah Field | 691 | $2.49 | 818 | $1.59 | | Barnett Shale | 945 | $2.84 | 979 | $1.39 | | **NGLs:** | | | | | | SCOOP/STACK | 18 | $23.27 | 20 | $22.16 | | Delhi Field | 17 | $25.66 | 17 | $31.83 | | **Total Equivalent (MBOE):** | 655 | $32.23 | 656 | $32.36 | | **Average daily production (BOEPD):** | 7,198 | | 7,209 | | [Summary of Average Production Costs by Asset](index=15&type=section&id=11.3.%20Summary%20of%20Average%20Production%20Costs%20by%20Asset) Average production costs per BOE varied significantly across different assets in Q4 2025, with TexMex showing the highest per-BOE cost and Barnett Shale the lowest Average Production Costs by Asset | Production costs (in thousands, except per BOE) | Q4 2025 Amount | Q4 2025 per BOE | Q4 2024 Amount | Q4 2024 per BOE | | :---------------------------------------------- | :------------- | :-------------- | :------------- | :-------------- | | TexMex | $1,189 | $41.47 | $— | $— | | SCOOP/STACK | $1,130 | $11.05 | $1,028 | $9.06 | | Chaveroo Field | $501 | $16.65 | $301 | $24.42 | | Jonah Field | $1,928 | $14.91 | $1,834 | $11.99 | | Williston Basin | $1,159 | $26.48 | $1,227 | $25.53 | | Barnett Shale | $1,850 | $8.67 | $3,853 | $17.47 | | Hamilton Dome Field | $1,523 | $44.36 | $1,415 | $40.40 | | Delhi Field | $2,087 | $28.73 | $1,750 | $23.96 | | Total | $11,367 | $17.35 | $11,408 | $17.39 | - Total lease operating costs include lifting costs, workover expenses, and gathering, transportation, processing, and other expenses[48](index=48&type=chunk) Summary of Open Derivative Contracts (Unaudited) This section outlines Evolution Petroleum's open derivative contracts for crude oil and natural gas, detailing hedging instruments and volumes to manage price risk [Open Derivative Contracts](index=16&type=section&id=12.1.%20Open%20Derivative%20Contracts) Evolution Petroleum has various open derivative contracts for crude oil and natural gas, including fixed-price swaps and two-way/three-way collars, extending through December 2027 to manage commodity price risk Open Derivative Contracts Summary | Period | Commodity | Instrument | Volumes (MMBTU/BBL) | Swap Price ($/MMBTU/BBL) | Sub Floor Price ($/MMBTU/BBL) | Floor Price ($/MMBTU/BBL) | Ceiling Price ($/MMBTU/BBL) | | :------------------------- | :---------- | :--------- | :------------------ | :----------------------- | :---------------------------- | :------------------------ | :-------------------------- | | July 2025 - September 2025 | Crude Oil | Swap | 9,591 | $60.50 | | | | | July 2025 - December 2025 | Crude Oil | Swap | 11,880 | $72.00 | | | | | August 2025 - August 2026 | Crude Oil | Collar | 83,458 | | | $60.00 | $65.55 | | September 2026 - December 2026 | Crude Oil | Three-Way Collar | 40,872 | | $50.00 | $60.00 | $70.45 | | July 2025 - December 2025 | Natural Gas | Collar | 450,550 | | | $4.00 | $4.95 | | July 2025 - December 2026 | Natural Gas | Swap | 2,546,138 | $3.60 | | | | | July 2025 - December 2027 | Natural Gas | Swap | 3,323,035 | $3.57 | | | | | April 2026 - October 2026 | Natural Gas | Collar | 952,588 | | | $3.50 | $4.55 | - The company utilizes various hedging practices, including fixed-price swaps and collars, for crude oil and natural gas to manage price volatility[50](index=50&type=chunk)[51](index=51&type=chunk)

Core Viewpoint - Evolution Petroleum Corporation reported significant financial growth in fiscal Q4 2025, with net income increasing by 176% to $3.4 million and adjusted EBITDA rising by 7% to $8.6 million, despite a slight decline in revenues [1][12]. Financial & Operational Highlights - Average production for Q4 2025 was 7,198 barrels of oil equivalent per day (BOEPD), a year-over-year decrease of 0.15% [2][13]. - Total revenues for Q4 2025 were $21.1 million, down 1% from $21.2 million in Q4 2024, primarily due to lower realized oil and natural gas liquids prices [7][12]. - The company declared a cash dividend of $0.12 per share for Q1 fiscal 2026, marking its 48th consecutive quarterly dividend payment [1][22]. Subsequent Events - In August 2025, the company completed its largest minerals-only acquisition in the SCOOP/STACK area for approximately $17 million, adding around 5,500 net royalty acres and 420 net BOE per day [3]. Management Comments - The CEO highlighted fiscal 2025 as a defining year, with record production levels and a commitment to returning $16.3 million to shareholders [4]. - The company aims to continue acquiring cash-generating, low-decline assets while maintaining a focus on shareholder returns [5]. Production & Pricing - The average realized price for crude oil in Q4 2025 was $60.82 per barrel, down 20% from $76.49 in Q4 2024, while natural gas prices increased by 66% to $2.76 per MCF [13][14]. - Total production for Q4 2025 included approximately 2,319 BOPD of crude oil, 3,747 BOEPD of natural gas, and 1,132 BOEPD of natural gas liquids [13]. Balance Sheet, Liquidity, and Capital Spending - As of June 30, 2025, the company had cash and cash equivalents of $2.5 million and total liquidity of $30 million [19][20]. - The company invested $4.7 million in capital expenditures during Q4 2025 and paid $4.1 million in dividends [19]. Proved Reserves - As of June 30, 2025, total proved reserves were estimated at 27.1 million BOE, with significant contributions from various fields including TexMex and SCOOP/STACK [31].

Market Overview - The U.S. stock market closed on September 16, 2025, with major indexes near all-time highs, driven by strong retail sales data and anticipation of the Federal Reserve's policy meeting [1][3] - The S&P 500 Index decreased by 0.1%, while the Nasdaq Composite finished up less than 0.1%, and the Dow Jones Industrial Average dipped between 0.2% and 0.3% [2] Economic Data - U.S. retail sales for August increased by 0.6% month-over-month, exceeding expectations of 0.3%, with July's figures revised to a 0.6% growth [5] - Upcoming economic releases include Housing Starts and Building Permits, which will provide insights into the housing market's health [6] Federal Reserve Meeting - The Federal Open Market Committee (FOMC) meeting is expected to conclude with a widely anticipated 25-basis-point reduction in the federal funds rate, aimed at boosting economic activity [4] Corporate Developments - Alphabet (GOOGL) shares rose, reaching a market capitalization above $3 trillion, following Citigroup's price target increase to $280 from $225 [7] - Tesla (TSLA) shares increased over 3% after Elon Musk's $1 billion stock purchase [7] - Emerson Electric (EMR) shares fell nearly 5% due to disappointing fiscal fourth-quarter orders guidance [8] - Webtoon Entertainment's shares soared 28% after a deal with Disney for a new digital comics platform [9] Upcoming Earnings Reports - General Mills (GIS) is set to report earnings, with other notable companies like FedEx (FDX), Micron Technology (MU), Accenture (ACN), Costco Wholesale (COST), and Nike (NKE) scheduled for later in September [12]

Earnings Reports - Ferguson Enterprises Inc. is expected to report quarterly earnings of $2.88 per share on revenue of $8.41 billion [2] - Brand House Collective Inc. is anticipated to post a quarterly loss of 74 cents per share on revenue of $77.63 million [2] - Evolution Petroleum Corp. is projected to report quarterly earnings of 1 cent per share on revenue of $20.90 million [2] Stock Performance - Ferguson shares increased by 0.6% to $215.87 in after-hours trading [2] - Adtran Holdings Inc. shares fell by 10% to $9.40 following the announcement of a $150 million convertible senior notes offering [2] - Brand House Collective shares rose by 1.6% to $1.96 in after-hours trading [2] - Dave & Buster's Entertainment Inc. shares dropped by 17.3% to $20.00 after reporting weaker-than-expected second-quarter results [2] - Evolution Petroleum shares gained 1.5% to $5.35 in after-hours trading [2] Financial Performance - Dave & Buster's reported second-quarter revenue of $557.41 million, missing analyst estimates of $562.78 million [2] - The company reported adjusted earnings of 40 cents per share, falling short of estimates of 92 cents per share [2]

Group 1 - The article discusses the recent financial performance of a specific company, highlighting a revenue increase of 15% year-over-year, reaching $2.5 billion [1] - It notes that the company's net income rose to $300 million, representing a 20% increase compared to the previous year [1] - The report emphasizes the growth in the company's market share, which expanded by 5% in the last quarter [1] Group 2 - The article outlines the strategic initiatives the company has undertaken, including the launch of new products that contributed to the revenue growth [1] - It mentions the company's investment in technology, which is expected to enhance operational efficiency and drive future growth [1] - The article also highlights the competitive landscape, indicating that the company is well-positioned against its main rivals [1]

Group 1 - The article discusses the analysis of oil and gas companies, specifically focusing on Evolution Petroleum and similar firms, highlighting the importance of understanding their balance sheets, competitive positions, and development prospects [1] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] - The analysis provided is part of a service called Oil & Gas Value Research, which offers in-depth insights to its members, including information not available on free platforms [1] Group 2 - The analyst expresses no current stock or derivative positions in the companies mentioned but indicates a potential interest in initiating a long position in Evolution Petroleum within the next 72 hours [3] - The article is authored independently, reflecting the analyst's personal opinions without any compensation from the companies discussed [3]

Core Viewpoint - Wall Street analysts anticipate a decline in Evolution Petroleum's quarterly earnings and revenues, indicating potential challenges for the company in the upcoming report [1]. Financial Performance Expectations - Expected quarterly earnings are $0.02 per share, reflecting a year-over-year decline of 33.3% [1]. - Revenues are projected to be $21.15 million, down 0.4% from the same quarter last year [1]. - There have been no revisions in the consensus EPS estimate over the last 30 days, suggesting analysts have maintained their initial forecasts [1]. Key Metrics Analysis - Analysts predict 'Total Oil and gas production per day' to be 7,120 barrels of oil equivalent, a decrease from 7,209 barrels reported in the same quarter last year [4]. - The 'Average sales price - Natural gas liquids' is expected to be $23.57, down from $29.08 a year ago [4]. - The 'Average sales price - Crude oil' is estimated at $59.79, compared to $76.49 in the previous year [5]. Market Performance - Over the past month, Evolution Petroleum shares have increased by 4.4%, outperforming the Zacks S&P 500 composite's increase of 3.4% [5]. - The company holds a Zacks Rank 3 (Hold), indicating it is likely to perform in line with the overall market in the near future [5].

Core Viewpoint - The focus of Wall Street on large and mega-cap stocks limits the number of shares investors can buy, leading many to seek lower-priced stocks for better leverage and profit opportunities [1] Group 1 - Many significant public companies, particularly in the technology sector, have high share prices, often reaching up to $1,000 per share, making it difficult for investors to achieve decent share count leverage [1] - Aggressive traders are increasingly looking at lower-priced stocks to enhance their potential for profit and increase their share count [1] - The strategy of buying lower-priced stocks allows investors to sell part of their holdings while retaining some, which can aid in decision-making when a stock is performing well [1]

Core Viewpoint - Evolution Petroleum Corporation has declared a cash dividend of $0.12 per share for the first quarter of fiscal 2026, indicating a commitment to returning value to shareholders [1]. Company Overview - Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through ownership and investment in onshore oil and natural gas properties in the U.S. [2] - The company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts [2].