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

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].