Financial Data and Key Metrics Changes - Total revenues for fiscal Q2 2025 were $20.3 million, a decrease of 4% year over year, primarily due to lower realized commodity prices which fell approximately 12% year over year [30] - Production volumes increased by 10% year over year, attributed to acquisitions and new wells coming online [30] - Cash on hand as of December 31, 2024, was $11.7 million, with total liquidity amounting to $22.2 million [32] Business Line Data and Key Metrics Changes - Total production grew to 6,935 BOE per day, reflecting a 10% year-over-year increase, despite temporary downtime in certain areas [14] - The SCOOP/STACK region showed strong performance with three new wells brought online during the quarter, contributing to production growth [21] - Production at Chaveru was temporarily impacted by gas interference issues, but has since stabilized [24] Market Data and Key Metrics Changes - The energy market remains dynamic, with expectations for improved natural gas prices due to increased demand and easing LNG export restrictions [12] - Crude oil pricing trends indicate a potential continuation of tight supply and demand dynamics, which may benefit the company in the second half of fiscal 2025 [13] Company Strategy and Development Direction - The company is focused on disciplined asset acquisitions and organic growth, with a strong emphasis on maintaining a robust financial foundation [9][18] - Management is evaluating multiple acquisition opportunities that could enhance long-term growth and cash flow generation [10] - The company aims to sustain its dividend program while pursuing high-quality, low-decline assets [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A landscape, noting a healthy pipeline of acquisition targets [10] - The company remains committed to returning value to shareholders through consistent dividend payments, marking its 46th consecutive dividend [16][33] - Future expectations for production growth and cash flow remain positive, supported by strategic investments and disciplined capital management [14][18] Other Important Information - The company has returned approximately $126.6 million or $3.81 per share to shareholders in common stock dividends [17] - The quarterly cash dividend of $0.12 per share is scheduled for payment on March 31, 2025 [33] Q&A Session Summary Question: Is M&A still a top focus for the team, and would the company be comfortable executing multiple transactions at once? - Management indicated that they are open to executing multiple transactions if they are digestible and accretive to dividend per share [39][40] Question: What is the reason for the acceleration in M&A opportunities? - Management noted that current market conditions have aligned buyer and seller expectations, creating more opportunities for reasonable offers [46] Question: Can you provide insights on the performance of new wells in the SCOOP/STACK? - New wells are performing approximately 10% above type curve expectations for gas, with oil performance meeting expectations [57] Question: What is the expected capital expenditure for the second half of the fiscal year? - Management confirmed that capital expenditures will be back half weighted, primarily driven by drilling and completion activities at Chaveru [62] Question: Are acquisitions focused on existing core areas or new areas? - Management stated that they are considering both existing core areas and potential new core areas for acquisitions [68] Question: How does the company view financing alternatives for acquisitions? - Management indicated that they are within their stated leverage targets and would consider both debt and equity options for financing acquisitions [82]

Production and Revenue - Crude oil, natural gas, and NGL production increased by 13% during the six months ended December 31, 2024, compared to the year-ago period [124]. - Revenues from crude oil, natural gas, and NGL had a modest increase of 1% over the same period despite increased production volumes due to declines in commodity prices [124]. - Average daily production increased by 832 BOEPD, or 13.0%, from the prior year period, reaching 6,935 BOEPD [148]. - Total revenues for the three months ended December 31, 2024, were $20.3 million, a decrease of $0.7 million, or 3.6%, compared to $21.0 million in the same period of 2023 [154]. - Total revenues for the six months ended December 31, 2024, were $42.2 million, a slight increase of 1.3% from $41.6 million in the same period of 2023 [170]. Financial Performance - Net loss for the three months ended December 31, 2024, was $1.8 million, compared to a net income of $1.1 million for the same period in 2023 [152]. - Net income for the six months ended December 31, 2024, was $0.2 million, a decrease of 90.6% from $2.6 million in the same period of 2023 [167]. - Cash flows from operating activities for the six months ended December 31, 2024, increased by $4.0 million to $15.3 million compared to the same period in 2023, primarily due to increased revenues [148]. Expenses - Lease operating costs decreased by 10%, or $2.13 per BOE, compared to the year-ago period [124]. - General and administrative expenses for the three months ended December 31, 2024, were $2.0 million, compared to $1.9 million in 2023 [159]. - General and administrative expenses decreased to $4.0 million for the six months ended December 31, 2024, from $4.1 million in the prior year [175]. - Depletion expense increased by $0.8 million, or 18.5%, to $5.0 million for the three months ended December 31, 2024, due to an increase in the depletion rate [158]. - Depletion expense increased by $2.2 million, or 27.0%, to $10.3 million for the six months ended December 31, 2024, due to an increase in depletable assets [174]. - Stock-based compensation expense increased by $0.1 million to $0.7 million for the three months ended December 31, 2024, compared to $0.6 million for the same period last year [161]. - Stock-based compensation expense increased by $0.2 million to $1.2 million for the six months ended December 31, 2024, compared to $1.0 million for the same period last year [176]. Cash and Capital Expenditures - As of December 31, 2024, cash and cash equivalents were $11.7 million, up from $6.4 million at June 30, 2024 [134]. - Working capital increased to $10.5 million as of December 31, 2024, from $5.9 million as of June 30, 2024 [134]. - The company incurred $2.2 million on development capital expenditures during the six months ending December 31, 2024 [145]. - For fiscal year 2025, budgeted capital expenditures are expected to be between $12.5 million and $14.5 million, excluding potential acquisitions [146]. - Cash used in investing activities decreased by $1.9 million to $3.8 million for the six months ended December 31, 2024, compared to the same period in 2023 [149]. - Net cash flows used in financing activities decreased by $2.0 million to $6.3 million for the six months ended December 31, 2024, primarily due to proceeds from the sale of common stock [150]. Debt and Interest - The Senior Secured Credit Facility has a maximum capacity of $50.0 million, with $39.5 million drawn as of December 31, 2024 [135]. - Interest expense increased by $0.7 million for the three months ended December 31, 2024, primarily due to borrowings on the Senior Secured Credit Facility [164]. - Interest expense increased by $1.5 million for the six months ended December 31, 2024, primarily due to borrowings on the Senior Secured Credit Facility [179]. - The weighted average interest rate on borrowings was 7.80% for the six months ended December 31, 2024 [179]. Tax and Derivative Contracts - Income tax expense was $0.1 million on net income before income taxes of $0.4 million for the six months ended December 31, 2024, with an effective tax rate of 31.4% [180]. - The effective tax rate increased from 28.5% in the prior year to 31.4% in the current period due to higher projected state income taxes [180]. - The company reported a net loss of $1.2 million on derivative contracts for the three months ended December 31, 2024, with an unrealized loss of $1.4 million [163]. - The company had $1.3 million in derivative assets as of December 31, 2024, with $1.1 million classified as current [177]. - The company expects energy prices to remain volatile and will monitor commodity prices to determine the need for derivative financial instruments [183]. - The company did not enter into derivative contracts for speculative trading purposes, focusing instead on risk management [183].

Company Performance - Evolution Petroleum reported a quarterly loss of $0.03 per share, missing the Zacks Consensus Estimate of a loss of $0.01, compared to earnings of $0.03 per share a year ago, representing an earnings surprise of -200% [1] - The company posted revenues of $20.28 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.71%, and down from $21.02 million year-over-year [2] - Over the last four quarters, Evolution Petroleum has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Market Outlook - The stock has added about 2.5% since the beginning of the year, underperforming the S&P 500's gain of 3.1% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.09 on $24.63 million in revenues for the coming quarter and $0.21 on $91.18 million in revenues for the current fiscal year [4][7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is in the top 21% of over 250 Zacks industries, indicating a favorable industry outlook [8] Earnings Estimate Revisions - The estimate revisions trend for Evolution Petroleum is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Production Performance - Fiscal Q2 production increased 10% year-over-year to 6,935 average BOEPD, with oil production up 13%, natural gas up 9%, and NGLs up 9%[5] - Average daily production for the six months ended December 31, 2024, was 7,212 BOEPD, an increase from 6,380 BOEPD in the same period of 2023[38] - Average daily production increased to 6,935 BOEPD from 6,304 BOEPD in the previous quarter[41] - The company reported a total of 638 MBOE in equivalent production for the three months ended December 31, 2024, compared to 580 MBOE in the same period of 2023, indicating a production increase[38] - Total crude oil production for the three months ended December 31, 2024, was 179 MBBL, an increase from 159 MBBL in the previous quarter, with an average sales price of $65.72 per barrel[41] - Natural gas production reached 2,125 MMCF, up from 1,951 MMCF in the previous quarter, with an average sales price of $2.73 per MCF[41] - The company reported a significant increase in production from the SCOOP/STACK area, with crude oil production of 35 MBBL and an average price of $70.52 per barrel for the current quarter[41] - The Delhi Field produced 60 MBBL of crude oil at an average price of $68.66 per barrel, showing a decrease from 78 MBBL at $79.02 per barrel in the previous quarter[41] Financial Performance - Total revenues decreased 4% to $20.3 million compared to $21.0 million in the year-ago quarter, primarily due to a 12% decrease in average realized commodity prices[9] - The Company reported a net loss of $1.8 million or $(0.06) per share, compared to net income of $1.1 million or $0.03 per share in the year-ago period[13] - Adjusted EBITDA was $5.7 million compared to $6.8 million in the year-ago period, primarily due to decreased revenue from lower commodity prices[14] - Total revenues for the three months ended December 31, 2024, were $20,275,000, a decrease of 3.5% from $21,024,000 in the same period of 2023[27] - Net income for the three months ended December 31, 2024, was a loss of $1,825,000 compared to a net income of $1,082,000 in the same period of 2023[27] - Adjusted EBITDA for the six months ended December 31, 2024, was $13,813,000, an increase of 2.0% from $13,535,000 in the same period of 2023[33] - The company incurred interest expense of $764,000 for the three months ended December 31, 2024, compared to $34,000 in the same period of 2023[33] - The company paid common stock dividends of $4,082,000 during the three months ended December 31, 2024[30] - The unrealized loss on commodity contracts for the three months ended December 31, 2024, was $1,368 thousand, impacting the net income significantly[34] Costs and Expenses - Lease operating costs increased to $12.8 million, driven by the addition of SCOOP/STACK properties, with total LOE decreasing 6% to $20.05 per BOE[10] - The company reported lease operating costs of $12,793,000 for the three months ended December 31, 2024, up from $12,358,000 in the same period of 2023[27] - Lease operating costs for the three months ended December 31, 2024, totaled $12,793 thousand, compared to $12,358 thousand in the same period of 2023, an increase of about 3.5%[38] - Total production costs for the three months ended December 31, 2024, were $12,793,000, with an average cost of $20.05 per BOE, compared to $12,358,000 and $21.30 per BOE in the previous quarter[43] - The average production cost for the Barnett Shale was $18.03 per BOE, an increase from $16.31 per BOE in the previous quarter[43] Liquidity and Assets - Cash and cash equivalents totaled $11.7 million, with total liquidity of $22.2 million as of December 31, 2024[21] - Cash and cash equivalents increased to $11,667,000 as of December 31, 2024, from $6,446,000 at the beginning of the period[30] - Total current assets rose to $26,987,000 as of December 31, 2024, compared to $21,723,000 as of June 30, 2024[29] - Total liabilities increased to $83,915,000 as of December 31, 2024, from $81,750,000 as of June 30, 2024[29] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.12 per share for the fiscal 2025 third quarter, marking the 46th consecutive quarterly dividend[22] - The weighted average number of common shares outstanding for the three months ended December 31, 2024, was 32,934,000[27] - The net income per common share, diluted, as reported for the three months ended December 31, 2024, was $(0.06), compared to $0.03 for the same period in 2023[34] Strategic Initiatives - The Company is evaluating multiple acquisition opportunities to enhance long-term growth strategy and improve cash flow generation[8] Commodity Prices - Average realized commodity price decreased 12% to $31.78 per BOE, driven by a 19% decrease in realized natural gas prices year-over-year[16] - The average price per barrel of crude oil for the three months ended December 31, 2024, was $65.72, down from $73.96 in the same period of 2023, reflecting a decrease of approximately 16.0%[38] - The average sales price for natural gas liquids was $25.90 per barrel, compared to $28.48 per barrel in the previous quarter, with total production of 105 MBBL[41]

Core Viewpoint - Evolution Petroleum Corporation reported a 10% year-over-year increase in production for fiscal Q2 2025, reaching an average of 6,935 BOEPD, while also declaring a quarterly dividend of $0.12 per share for the upcoming quarter, marking its 46th consecutive dividend payment [1][4]. Financial & Operational Highlights - Average production increased to 6,935 BOEPD from 6,304 BOEPD in the previous year, with oil production up 13%, natural gas up 9%, and NGLs up 9% [2][5][14]. - Total revenues decreased by 4% to $20.3 million compared to $21.0 million in the same quarter last year, primarily due to a 12% decrease in average realized commodity prices [2][7]. - The company reported a net loss of $1.8 million or $(0.06) per share, compared to a net income of $1.1 million or $0.03 per share in the prior year [11][12]. - Adjusted EBITDA was $5.7 million, down from $6.8 million in the year-ago period, attributed to lower revenues and higher operating costs [12][34]. Production & Pricing - The average realized commodity price decreased by 12% to $31.78 per BOE, driven by a 19% drop in realized natural gas prices [15][40]. - Total production for fiscal Q2 included 1,946 BOPD of crude oil, 3,848 BOEPD of natural gas, and 1,141 BOEPD of NGLs, with oil and NGLs generating 71% of revenue [14][40]. Operations Update - The company successfully brought three gross wells online in the SCOOP/STACK area during fiscal Q2 2025, with additional drilling activities planned [16][17]. - Production issues at Chaveroo and Williston were resolved, leading to a recovery in production rates by the end of January 2025 [4][18]. Balance Sheet, Liquidity, and Capital Spending - As of December 31, 2024, cash and cash equivalents totaled $11.7 million, with total liquidity of $22.2 million [20]. - The company paid $4.1 million in dividends during the fiscal second quarter and incurred $0.8 million in capital expenditures [20][21]. Future Outlook - The company remains focused on long-term shareholder value through acquisitions and maintaining a strong financial foundation, with plans to evaluate multiple acquisition opportunities [6][24].

Group 1 - Evolution Petroleum Corporation plans to release its fiscal second quarter 2025 financial and operating results on February 11, 2025, after market close [1] - A conference call to review the results will be held on February 12, 2025, at 10:00 a.m. Central Time, featuring key executives [1][2] - The company focuses on maximizing total shareholder returns through ownership and investment in onshore oil and natural gas properties in the U.S. [3] Group 2 - Evolution Petroleum aims to build a diversified portfolio of long-life oil and natural gas properties through acquisitions and selective development opportunities [3] - The company holds non-operated interests in various regions, including the SCOOP/STACK plays in Oklahoma and the Williston Basin in North Dakota [3] - Additional properties include the Chaveroo Oilfield in New Mexico and the Barnett Shale in North Texas, among others [3]

Core Insights - The Future Investor with Albert Anthony is a new author concept on the Seeking Alpha platform, focusing on diversified portfolio growth and performance drivers across multiple sectors [1] - Albert Anthony, a contributing analyst, has covered over 200 stocks since 2023 and has gained over 1.07K followers [1] - A new book titled "The Future Investor: Growing a Diversified Portfolio (2025 edition)" is in development [1] Author Background - Albert Anthony is a first-generation Croatian-American from the New York City/New Jersey area, with experience as an information systems analyst at Charles Schwab [1] - He holds a B.A. in political science from Drew University and has completed certification programs from various institutions, focusing on capital markets and securities [1] - His interests include managing a small equities portfolio called the Future Investor Fund and attending business and innovation conferences [1] Media Presence - The Future Investor channel was launched on YouTube in late 2024 to complement the articles, providing video updates and market commentary [1] - Albert Anthony is an active member of the Croatian Association of Economists since 2024 [1]

Core Insights - Evolution Petroleum Corporation will participate in a fireside chat with Water Tower Research on November 20, 2024, at 10:00 AM CT [1] - The discussion will focus on Evolution's rebalanced asset portfolio, capital allocation options, and long-term dividend policy [2] Company Overview - Evolution Petroleum is an independent energy company focused on maximizing total shareholder returns through investments 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 and selective development opportunities [4] - Key properties include interests in the SCOOP/STACK plays in Oklahoma, Chaveroo Oilfield in New Mexico, Jonah Field in Wyoming, Williston Basin in North Dakota, and others [4] Event Details - The fireside chat will be led by Jeff Robertson, Managing Director at Water Tower Research, featuring Evolution's President and CEO, CFO, and COO [2] - Topics will include capital allocation priorities, the impact of recent acquisitions on organic growth, and future acquisition opportunities [2] - The event is open to all investors, with registration available and replays of the webcast to be provided [3]

Financial Data and Key Metrics Changes - Total revenues for fiscal Q1 2025 were $21.9 million, a 6% increase year-over-year, primarily driven by increased production volumes from the SCOOP/STACK acquisition and new drills [21] - Net income rose 40% to $2.1 million compared to the prior year period, while adjusted EBITDA increased 21% to $8.1 million due to higher revenue and reduced operating costs [22] - Cash flow from operations increased significantly to $7.6 million for the quarter, up from $4.3 million in the prior year [22] - The company ended the quarter with $6.9 million in cash and $39.5 million in borrowings under its revolving credit facility, resulting in total liquidity of $17.4 million [25] Business Line Data and Key Metrics Changes - Total production increased by 16% year-over-year, reaching 7,478 net barrels of oil equivalent per day, supported by strong performance from SCOOP/STACK and Chaveroo [10] - Production from the three horizontal San Andres wells in Chaveroo met expectations, contributing positively to overall production [10] - At Delhi, production improved quarter-over-quarter due to the replacement of a CO2 recycle compressor and resumed CO2 purchases [18] Market Data and Key Metrics Changes - The company faced the lowest natural gas pricing environment since the COVID-19 pandemic in calendar 2024, yet continued to generate positive cash flow [23] - The production operations in the Williston Basin were impacted by high-volume wells going down, but production was quickly restored [19] Company Strategy and Development Direction - The company focuses on diversifying its portfolio to mitigate exposure to commodity price volatility, emphasizing assets with steady, predictable returns [9] - Future growth will be driven by disciplined capital management, strategic deployment in high-return regions, and ongoing evaluation of accretive M&A opportunities [14][15] - The commitment to returning value to shareholders is highlighted by a consistent dividend program, marking the 45th consecutive dividend payment [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the adaptability of the diversified asset base to thrive under various market conditions, particularly in light of fluctuating natural gas prices [9][28] - The company anticipates continued strong liquids production in fiscal year 2025, enhancing cash flow for the future [10] Other Important Information - The company plans to drill four horizontal wells in Chaveroo and has agreed to participate in five additional gross horizontal wells in SCOOP/STACK [17][39] - The company has a strong commitment to maintaining a disciplined approach to capital expenditures, with expectations of $12 million to $14.5 million for the full fiscal year [44] Q&A Session Summary Question: Expectations for the next batch of wells in SCOOP/STACK - Management indicated that the new wells are expected to perform similarly to previous wells, which exceeded initial type curve projections by approximately 65% [31][32] Question: Production uplift and CapEx expectations for Chaveroo - The expected production uplift is around 220 barrels per day gross per well, with CapEx for drilling estimated at $3.5 million per well [39] Question: CO2 purchases and production response timeline at Delhi - Management expects to see a production response within a month of resuming CO2 purchases, with an overall upward movement anticipated [46][50] Question: M&A activity and market conditions - Management noted an increase in potential deals and seller willingness, indicating a favorable environment for acquisitions [53][54] Question: Changes in drilling and completion for upcoming wells at Chaveroo - The company plans to use produced water for drilling to control costs, which is a change from previous practices [58]

Evolution Petroleum (EPM) came out with quarterly earnings of $0.02 per share, missing the Zacks Consensus Estimate of $0.04 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.06 per share when it actually produced earnings of $0.03, delivering a surprise of -50%.Over the last four quarters, t ...