Core Insights - Evolution Petroleum reported quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share, and down from $0.03 per share a year ago, representing an earnings surprise of -50% [1] - The company posted revenues of $22.56 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.99%, but down from $23.03 million year-over-year [2] - The stock has underperformed the market, losing about 17% since the beginning of the year compared to the S&P 500's decline of -0.6% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.01 on revenues of $22.25 million, and $0.05 on revenues of $86.75 million for the current fiscal year [7] - The estimate revisions trend for Evolution Petroleum is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently in the bottom 31% of over 250 Zacks industries, suggesting that the outlook for the industry can significantly impact stock performance [8]

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 ...

HOUSTON, April 24, 2025 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced that it plans to release its fiscal third quarter 2025 financial and operating results on Tuesday, May 13, 2025, after the market closes. Additionally, Kelly Loyd, President and Chief Executive Officer, Ryan Stash, Senior Vice President, Chief Financial Officer, and Treasurer, and Mark Bunch, Senior Vice President and Chief Operating Officer, will review the results ...

Core Viewpoint - Evolution Petroleum Corporation has successfully closed the acquisition of non-operated oil and natural gas assets in New Mexico, Texas, and Louisiana for a total purchase price of $9.0 million, which is expected to enhance both near-term and long-term cash flows [1][3]. Acquisition Details - The acquisition was funded through a combination of cash on hand and borrowings under the existing credit facility [1]. - The effective date of the acquisition is February 1, 2025 [1]. Strategic Benefits - The acquisition is expected to provide significant cash flow visibility and strengthen the long-term sustainability of the company's dividend [3][7]. - The deal was negotiated at a significant discount to the Proved Developed PV-10 value, estimated at approximately $13 million, indicating a favorable valuation at around 3.4 times the estimated next 12 months Adjusted EBITDA based on current strip pricing [7][11]. - The acquisition adds approximately 440 net barrels of oil equivalent per day (BOEPD) of stable, low-decline production, with a composition of 60% oil and 40% natural gas [7]. 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. [4]. - The company aims to maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, and production enhancements [4].

Core Viewpoint - Evolution Petroleum Corporation is actively engaging with investors through various upcoming events to discuss its strategic initiatives, including asset acquisitions and ongoing development activities in key oil and gas fields [2][4]. Group 1: Upcoming Events - Evolution will participate in a virtual fireside chat hosted by Water Tower Research on March 26, 2025, focusing on its acquisition of non-operated assets in New Mexico, Texas, and Louisiana, as well as development in the Chaveroo field and the SCOOP/STACK play [2]. - Management will host one-on-one meetings with institutional investors during A.G.P.'s Virtual Energy Conference on April 2, 2025, allowing for direct engagement with potential investors [3]. - Evolution will take part in the 2025 Louisiana Energy Conference from May 27-29, 2025, where management is scheduled for a panel discussion and one-on-one meetings with investment professionals [4]. Group 2: Company Overview - Evolution Petroleum Corporation is an independent energy company focused on maximizing shareholder returns through investments in onshore oil and natural gas properties in the U.S. [6]. - The company aims to build a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development, and production enhancements [6]. - Key properties include non-operated interests in the SCOOP/STACK plays in Oklahoma, the Chaveroo Oilfield in New Mexico, and various other fields across the U.S. [6].

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Core Viewpoint - Evolution Petroleum Corporation has announced a definitive agreement to acquire non-operated oil and natural gas assets in New Mexico, Texas, and Louisiana for a total purchase price of $9.0 million, expected to close by the end of the third quarter of fiscal 2025 [2][3]. Strategic Benefits of the Acquisition - The acquisition is the seventh transaction in six years, aimed at strengthening the production base and aligning with a disciplined growth strategy by adding high-quality, low-decline production at an attractive valuation of approximately 2.8x NTM Adjusted EBITDA [3][6]. - The acquired assets will add approximately 440 barrels of oil equivalent per day (BOEPD) of net production, with a balanced commodity mix of 60% oil and 40% natural gas, primarily consisting of low-decline, Proved Developed Producing (PDP) properties [3][6]. - The transaction is expected to be immediately accretive to all key metrics, enhancing Evolution's ability to generate stable free cash flow and supporting the long-standing commitment to returning capital to shareholders [3][6]. Financial Overview - The purchase price of $9.0 million is compared to an estimated $15 million of Proved Developed PV-10, indicating a favorable valuation for the assets [6]. - The acquisition is expected to enhance cash flow visibility and strengthen the long-term sustainability of dividends, while offering low-risk development opportunities for incremental production growth [6]. Company Background - Evolution Petroleum Corporation focuses on maximizing total shareholder returns through ownership and investment in onshore oil and natural gas properties in the U.S., aiming to build a diversified portfolio of long-life assets through acquisitions and production enhancements [9].