Evolution Petroleum Reports Fiscal First Quarter 2026 Results and Declares $0.12 per Share Quarterly Cash Dividend for the Fiscal Second Quarter

Core Insights - Evolution Petroleum Corporation reported its financial and operational results for the fiscal first quarter ended September 30, 2025, declaring its 14th consecutive cash dividend of $0.12 per share, marking 49 consecutive quarterly cash dividend payments [1][20]. Financial & Operational Highlights - Average production for Q1 2026 was 7,315 BOEPD, a 2% decrease from 7,478 BOEPD in Q1 2025 but a 2% increase from 7,198 BOEPD in Q4 2025 [2]. - Total revenues decreased by 3% to $21.3 million compared to $21.9 million in Q1 2025, primarily due to lower realized oil and NGL prices, partially offset by a 38% increase in natural gas revenue to $5.9 million [3][6]. - Net income for Q1 2026 was $0.8 million, or $0.02 per diluted share, down 60% from $2.1 million, or $0.06 per diluted share, in Q1 2025 [10][11]. - Adjusted EBITDA was $7.3 million, a 10% decrease from $8.1 million in the year-ago quarter [11]. Production & Pricing - The average realized price for crude oil was $62.18 per barrel, down 14% from $72.24 in Q1 2025, while natural gas prices increased by 43% to $2.74 per MCF [12][13]. - Total production included approximately 2,250 BOPD of crude oil, 3,891 BOEPD of natural gas, and 1,174 BOEPD of NGLs, with oil and NGLs generating 72% of revenue compared to 80% in the previous year [12]. Acquisition & Strategy - The company completed its largest acquisition of mineral and royalty interests in the SCOOP/STACK area of Oklahoma, which is expected to provide immediate cash flow accretion and significant upside potential with over 650 future drilling locations [3][4]. - Management emphasized a strategy focused on long-term shareholder value through disciplined capital management, strategic acquisitions, and maintaining a sustainable dividend [5]. Cost Management - Lease operating costs increased to $13.1 million from $11.8 million in the year-ago quarter, with a per-unit cost of $19.45 per BOE compared to $17.15 [7]. - General and administrative expenses decreased to $1.8 million from $2.0 million in the prior year, primarily due to lower professional fees [9]. Balance Sheet & Liquidity - As of September 30, 2025, the company had cash and cash equivalents of $0.7 million, outstanding borrowings of $53.0 million, and total liquidity of $11.9 million [18]. - The company returned $4.2 million to shareholders in cash dividends during the quarter [3].