
Evolution Petroleum Fiscal Third Quarter 2025 Results Financial and Operational Highlights 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% NGLs3 - 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 production3 - The company returned $4.1 million to shareholders through dividends and repaid $4.0 million of principal on its credit facility during the quarter3 Management Commentary 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 returns4 - 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 debt5 - 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 conditions7 Financial Performance Analysis 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 prices8 - 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 properties9 - 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 period12 - Adjusted EBITDA decreased to $7.4 million from $8.5 million in the prior-year period, primarily due to lower production and higher operating costs13 Production & Pricing 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 NGLs14 - 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 properties14 Operations Update 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 progress17 - Chaveroo: Successfully completed and brought online four new gross wells under budget, with early production rates significantly exceeding expectations17 - 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 flow19 - Barnett Shale: Delivered consistent cash flow, with improved realized pricing for natural gas and NGLs offsetting brief winter storm downtime21 Balance Sheet, Liquidity, and Capital Spending 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 million22 - Key cash uses in Q3 included $4.1 million in dividends, $4.0 million in debt repayments, and $4.4 million in capital expenditures23 - 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 lender24 Shareholder Returns 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 quarter25 - This marks the 47th consecutive quarterly cash dividend paid by the company since December 31, 201325 - Cumulatively, Evolution has returned approximately $130.7 million, or $3.93 per share, to stockholders in dividends25 Financial Statements 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 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 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 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 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 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 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 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 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 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 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 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 production45 - 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/MMBTU45