Evolution Petroleum Lifts Q4 Profit and Maintains Dividend

Core Insights - Evolution Petroleum reported a fiscal Q4 2025 net income of $3.4 million, a significant increase from $1.2 million a year earlier, with production averaging 7,198 BOEPD [1][5] - The company declared a $0.12 per-share dividend for Q1 FY26, marking the 48th consecutive quarterly payout [1][5] - The company expanded its mineral and royalty footprint with a $17 million SCOOP/STACK deal [1][5] Financial Performance - Q4 revenue was $21.1 million, a slight decrease of 1% year-over-year, while Adjusted EBITDA increased by 7% to $8.6 million [5] - Adjusted net income for Q4 was $1.1 million, equating to $0.03 per share [5] - For FY25, the company achieved near-record average production of 7,074 BOEPD, a 4% increase year-over-year, with gas revenue rising by 9% to $23.5 million [5] Production and Pricing - Q4 production consisted of 2,319 BOPD of oil, 3,747 BOEPD of gas, and 1,132 BOEPD of NGLs [5] - Realized prices for Q4 were $60.82 per barrel for oil (down 20% year-over-year), $2.76 per mcf for gas (up 66% year-over-year), and $25.50 per barrel for NGLs (down 12% year-over-year) [5] Balance Sheet and Liquidity - The company amended its RBL with a $200 million revolver and a $65 million initial borrowing base, maturing on June 30, 2028 [5] - As of Q4-end, cash stood at $2.5 million with borrowings of $37.5 million, resulting in liquidity of $30 million [5] Acquisitions and Operations - The company closed a $9 million acquisition of a TexMex non-operated package, adding approximately 440 net BOEPD [5] - The SCOOP/STACK minerals acquisition was completed for about $17 million, adding around 5,500 net royalty acres and approximately 420 net BOE/d [5] - Operations in Chaveroo, Delhi, and Jonah are ongoing, with various developments and upgrades in progress [5][6] Strategic Outlook - The company’s model focuses on low-decline, cash-generating assets and regular dividends, demonstrating resilience amid fluctuating oil and NGL prices [4][6] - Management plans to remain selective and returns-focused, pacing spending according to market conditions while growing royalty cash flows [6]