Evolution Petroleum Announces Acquisition of Non-Operated Oil and Natural Gas Assets in New Mexico, Texas, and Louisiana

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$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].