Group 1 - Evolution Petroleum Corporation is set to release its fourth-quarter earnings results on September 16, with analysts expecting earnings of 1 cent per share, a decrease from 3 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $21.07 million, slightly down from $21.23 million a year earlier [1] - In the third quarter, Evolution Petroleum posted in-line earnings, and its shares rose by 0.2% to close at $5.24 [2] Group 2 - Northland Capital Markets analyst Bobby Brooks maintained a Market Perform rating and reduced the price target from $5 to $4.5 [7] - Roth MKM analyst John White maintained a Buy rating with a price target of $8.25 [7]

Group 1 - Evolution Petroleum Corporation is set to release its fourth-quarter earnings results on September 16, with analysts expecting earnings of 1 cent per share, a decrease from 3 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $21.07 million, slightly down from $21.23 million a year earlier [1] - In the third quarter, Evolution Petroleum posted in-line earnings, and its shares rose by 0.2% to close at $5.24 [2] Group 2 - Northland Capital Markets analyst Bobby Brooks maintained a Market Perform rating and reduced the price target from $5 to $4.5 [7] - Roth MKM analyst John White maintained a Buy rating with a price target of $8.25 [7]

Core Viewpoint - Evolution Petroleum Corporation is set to release its fourth quarter and fiscal year-end 2025 financial and operating results on September 16, 2025, after market close, followed by a conference call on September 17, 2025, at 10:00 a.m. Central Time [1] Group 1: Financial Results Announcement - The financial and operating results for the fourth quarter and fiscal year-end 2025 will be announced on September 16, 2025, after market close [1] - A conference call to review the results will take place on September 17, 2025, at 10:00 a.m. Central Time [1] Group 2: Conference Call and Webcast Details - Dial-in information for the conference call includes a U.S. number (844) 481-2813 and an international number (412) 317-0677 [2] - A webcast of the conference call will be available, with a replay accessible until September 16, 2026 [2] Group 3: 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. [3] - The company aims to build a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development, and production enhancements [3]

Summary of Evolution Petroleum (EPM) Conference Call Company Overview - **Company Name**: Evolution Petroleum (EPM) - **Focus**: The company emphasizes sustainable dividend payments and has paid out over $130 million in dividends over the last ten years, with a current yield of approximately 9.8% [4][5][44]. Key Points Business Model and Strategy - **Non-Operated Business Model**: Evolution Petroleum operates with a lean team of 11 people, allowing for efficient management of a diversified asset portfolio [6][7]. - **Asset Diversification**: The company has expanded from a single asset in Louisiana to multiple fields across various states, including Wyoming and Texas, to mitigate risks associated with geographic and commodity concentration [9][10][12][17]. - **Acquisition Strategy**: The company focuses on acquiring long-life, low-decline production assets that are accretive to cash flow per share, which is critical for maintaining dividends [30][44]. Financial Performance - **Enterprise Value**: The current enterprise value is just under $200 million [5]. - **Dividend History**: The company has maintained a consistent dividend, raising it to 12 cents per share in September 2022, despite fluctuations in commodity prices [40][44]. - **Cash Flow Management**: The company has historically funded its growth through internally generated cash flow and has maintained low leverage, with plans to keep net leverage below 1.5 times [41][68]. Market Outlook - **Natural Gas Demand**: The U.S. is currently producing approximately 107 billion cubic feet (BCF) of natural gas per day, with projections indicating an increase in demand due to industrial growth and LNG exports [21][25][26]. - **Oil Demand Resilience**: Despite concerns about declining oil demand, the company notes that global oil demand has shown robustness, typically growing between 1% to 3% annually [26][44]. Recent Acquisitions - **SCOOPSTACK Minerals**: Recently closed a deal for minerals in the SCOOPSTACK area for approximately $17 million, which is expected to enhance cash flow without incurring significant costs [49][51]. - **Tex Mex Acquisition**: Acquired a field producing about 440 net barrels of oil equivalent (BOE) per day at an attractive discount, contributing positively to cash flow [51][52]. Risk Management - **Hedging Strategy**: The company has begun to hedge its natural gas production, currently hedging about 60% of its gas output to ensure price stability [60][61]. - **Operator Relationships**: Strong relationships with operators are crucial for the company, allowing for better insights and management of assets [35][66]. Additional Insights - **Future Growth Potential**: The company is well-positioned for future growth with a robust portfolio that can maintain dividends even in low commodity price environments, while also having significant upside potential as prices recover [74]. - **Market Conditions**: The current market environment is favorable for acquisitions, with prices not excessively high or low, allowing for strategic buying opportunities [57][58]. This summary encapsulates the key points discussed during the Evolution Petroleum conference call, highlighting the company's strategic focus, financial performance, market outlook, and recent activities.

Group 1 - Evolution Petroleum (NYSE: EPM) has exercised its right to audit the operator of its Barnett Shale natural gas properties for the years 2022 and 2023 [2] - The oil and gas industry is characterized as a boom-bust, cyclical sector, requiring patience and experience for successful investment [2] Group 2 - The analysis provided in the article focuses on identifying undervalued companies within the oil and gas sector, including a breakdown of balance sheets, competitive positions, and development prospects [1]

Core Insights - Evolution Petroleum Corporation has announced the initial results of its joint interest audit of its Barnett Shale properties and provided an update on its Chaveroo drilling results [1] Joint Interest Audit Results - In fiscal year 2024, Evolution conducted a joint interest audit of expenses charged by Diversified Energy Company for the years 2022-2023, with assistance from BRI Consulting Group [2] - The audit revealed that Evolution was overcharged, with approximately $1.8 million owed to the company for the period from September 2021 to December 2023, which will be recognized as a reduction in lease operating expenses and accounts payable in fiscal year 2025 [3] - The company plans to continue exercising its rights under the joint operating agreement for future audits [3] Chaveroo New Drill Wells Update - The recent four wells at Chaveroo have exceeded expectations, continuing to perform well after more than 50 days of production, following initial reports of being completed on schedule and under budget [5] Company Overview - Evolution Petroleum Corporation is an independent energy company focused on maximizing shareholder returns through ownership and investment in onshore oil and natural gas properties in the U.S., aiming to maintain a diversified portfolio through acquisitions and production enhancements [6]

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]

[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines cautionary language for forward-looking statements, detailing factors and assumptions that could cause actual results to differ - The report contains forward-looking statements on topics such as capital spending, acquisition strategy, production estimates, commodity prices, and dividend payments[9](index=9&type=chunk) - Key assumptions include future commodity prices, access to credit, and expectations consistent with historical experience and industry trends[13](index=13&type=chunk) - Readers are warned that these statements are subject to significant risks and uncertainties, with actual results potentially differing materially[10](index=10&type=chunk)[11](index=11&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Evolution Petroleum Corporation's unaudited condensed consolidated financial statements, including balance sheets, operations, cash flows, and equity changes [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$156.4 million**, liabilities increased to **$84.7 million**, and stockholders' equity decreased to **$71.7 million** Condensed Consolidated Balance Sheets (in thousands) | Account | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $19,794 | $21,723 | | **Oil and natural gas properties, net** | $133,514 | $139,685 | | **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 Operations](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a **net loss of $2.2 million** for Q3 FY2025 and **$1.9 million** for the nine months, driven by derivative losses and higher interest expense Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | $22,561 | $23,025 | $64,732 | $64,650 | | **Income (loss) from operations** | $1,586 | $2,084 | $2,835 | $5,503 | | **Net gain (loss) on derivative contracts** | $(3,802) | $(1,183) | $(3,223) | $(1,183) | | **Net income (loss)** | **$(2,179)** | **$289** | **$(1,939)** | **$2,845** | | **Diluted EPS** | **$(0.07)** | **$0.01** | **$(0.07)** | **$0.08** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$22.6 million**, investing outflow decreased to **$10.1 million**, and financing shifted to a **$13.4 million** outflow for the nine months Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Mar 31, 2025 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $22,596 | $14,742 | | **Net cash used in investing activities** | $(10,053) | $(52,141) | | **Net cash provided by (used in) financing activities** | $(13,388) | $29,432 | | **Net (decrease) in cash** | $(845) | $(7,967) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, operations, acquisitions, credit facility, derivatives, equity, and subsequent events like the TexMex Acquisition - **Acquisitions**: The company closed SCOOP/STACK Acquisitions in February 2024 for approximately **$39.1 million** and entered a joint development agreement in September 2023[42](index=42&type=chunk)[44](index=44&type=chunk) - **Credit Facility**: As of March 31, 2025, **$35.5 million** was outstanding under the **$50.0 million** senior secured credit facility, with all covenants in compliance[54](index=54&type=chunk)[55](index=55&type=chunk) - **Derivatives**: A net loss of **$3.2 million** on derivative contracts was reported for the nine months, including a **$0.2 million** realized gain and a **$3.4 million** unrealized loss[70](index=70&type=chunk) - **Stockholders' Equity**: The company paid **$12.2 million** in dividends and raised **$3.1 million** from its ATM equity program during the nine months[84](index=84&type=chunk)[85](index=85&type=chunk) - **Subsequent Events**: The TexMex Acquisition closed on April 14, 2025, for approximately **$9.0 million**, and a **$0.120** per share dividend was declared on May 12, 2025[106](index=106&type=chunk)[108](index=108&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses business, developments, and financial performance, noting a 5% production increase, flat revenues, and a **$3.4 million** unrealized derivative loss [Executive Overview](index=31&type=section&id=Executive%20Overview) The company aims to maximize shareholder returns from diversified US oil and gas properties, with a 5% production increase offset by flat revenue and derivative losses - The company's strategy focuses on maximizing shareholder return from a diversified portfolio of long-life oil and gas properties[111](index=111&type=chunk) - For the nine months ended March 31, 2025, production increased **5%** year-over-year, but revenues remained flat due to lower commodity prices[120](index=120&type=chunk) - Financial results were negatively impacted by a **$3.4 million** non-cash unrealized loss on derivative contracts for the nine months[121](index=121&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, liquidity included **$5.6 million** cash and **$14.5 million** available credit, with FY2025 capital expenditures projected between **$12.5 million** and **$14.5 million** - As of March 31, 2025, liquidity comprised **$5.6 million** in cash and **$14.5 million** available under the Senior Secured Credit Facility[131](index=131&type=chunk)[136](index=136&type=chunk) - The company anticipates extending its credit facility maturity to April 2028 and increasing total commitments to **$65.0 million**[132](index=132&type=chunk) - Fiscal year 2025 capital expenditure budget is projected between **$12.5 million** and **$14.5 million**, excluding potential acquisitions[140](index=140&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance for the three and nine-month periods ended March 31, 2025, detailing changes in revenues, costs, and production Q3 FY2025 vs Q3 FY2024 Performance | Metric | Q3 2025 | Q3 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues (in thousands)** | $22,561 | $23,025 | (2.0)% | | **Net Loss (in thousands)** | $(2,179) | $289 | (854.0)% | | **Avg. Daily Production (BOEPD)** | 6,667 | 7,209 | (7.5)% | | **Avg. Realized Price per BOE** | $37.60 | $35.10 | 7.1% | Nine Months FY2025 vs FY2024 Performance | Metric | 9M 2025 | 9M 2024 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues (in thousands)** | $64,732 | $64,650 | 0.1% | | **Net Loss (in thousands)** | $(1,939) | $2,845 | (168.2)% | | **Avg. Daily Production (BOEPD)** | 7,033 | 6,651 | 5.7% | | **Avg. Realized Price per BOE** | $33.59 | $35.35 | (5.0)% | [Item 3. Quantitative and Qualitative Disclosures about Market Risks](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) The company identifies energy commodity price risk, managed with derivatives, and interest rate risk from its variable-rate Senior Secured Credit Facility - The company is exposed to energy commodity price risk, partially mitigated by derivative instruments[175](index=175&type=chunk) - Interest rate risk arises from variable rates on the Senior Secured Credit Facility, tied to SOFR or the Prime Rate[177](index=177&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - Management concluded that disclosure controls and procedures were effective as of March 31, 2025[179](index=179&type=chunk) - No material changes occurred in internal control over financial reporting during the quarter ended March 31, 2025[180](index=180&type=chunk) [PART II. OTHER INFORMATION](index=46&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers other disclosures, confirming no material legal proceedings or risk factor changes, detailing equity repurchases, and noting other items as not applicable [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings, referencing Note 10 of its financial statements for general claims - The company reports no material legal proceedings, referencing Note 10 of the financial statements[181](index=181&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Annual Report on Form 10-K for the fiscal year ended June 30, 2024 - The company refers to its Annual Report on Form 10-K for a detailed description of risk factors[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section summarizes equity security purchases for Q3 FY2025, noting shares were acquired solely for employee tax withholding on vested stock awards Issuer Purchases of Equity Securities (Q3 FY2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2025 | — | $— | | February 2025 | 13,288 | $5.12 | | March 2025 | 741 | $4.90 | [Other Items (3, 4, 5)](index=47&type=section&id=Other%20Items%20(3,%204,%205)) The company reports no defaults upon senior securities, no mine safety disclosures, and no other information for these items - Item 3, Defaults Upon Senior Securities, is Not Applicable[186](index=186&type=chunk) - Item 4, Mine Safety Disclosures, is Not Applicable[187](index=187&type=chunk) - Item 5, Other Information, reports 'None'[188](index=188&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists documents filed as exhibits with the Form 10-Q, including credit facility agreements and officer certifications - A letter agreement dated March 7, 2025, related to the Credit Agreement with MidFirst Bank, was filed as an exhibit[190](index=190&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer under Sarbanes-Oxley Act Sections 302 and 906 are included as exhibits[190](index=190&type=chunk) [Signatures](index=49&type=section&id=Signatures) The report is signed and authorized by CEO Kelly W. Loyd and CFO Ryan Stash on May 14, 2025 - The Form 10-Q was signed on May 14, 2025, by Kelly W. Loyd (CEO) and Ryan Stash (CFO)[195](index=195&type=chunk)

Financial Data and Key Metrics Changes - Total revenues for fiscal Q3 were $22.6 million, down 2% year over year, primarily due to lower production volumes, partially offset by a 7% increase in average realized commodity prices driven by stronger natural gas and NGL prices [21][22] - 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 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 weaker 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 low decline assets [6][13] - The recent Tex Mex acquisition adds approximately 440 barrels of oil equivalent per day of stable production, aligning with the company's long-term strategy [8][9] - Development activities are being shifted towards gas-weighted opportunities, particularly in the SCOOPSTACK area, while delaying oil-weighted drilling [14][15] 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 [12][13] - The company anticipates that the effects of recent acquisitions will be evident in fiscal Q4, with production and cash flow expected to improve [13][26] Other Important Information - The company declared a cash dividend of $0.12 per share, marking the 47th consecutive quarter of issuing a dividend [12][24] - The company has negotiated with lenders to extend the maturity of its credit facility and increase total commitments, enhancing financial flexibility [24][66] 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 [29][35] Question: Performance of new wells at Chavaroo - New wells were drilled and completed under budget, approximately 5% below AFE, with initial production rates exceeding expectations [39][41] Question: Impact of Delhi EOR project shift - The shift from CO2 floods to waterflood development is expected to result in significant cost savings, estimated at $400,000 per month, without impacting performance [49][53] Question: Clarification on production increases - The combined production from Tex Mex and Chavaroo is expected to exceed initial projections, with Tex Mex contributing approximately 440 BOE per day [56][58]

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]