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

Core Insights - Evolution Petroleum Corporation reported a significant improvement in net income and a 41% increase in adjusted EBITDA to $8.0 million for the fiscal second quarter ended December 31, 2025, alongside the declaration of its 15th consecutive cash dividend of $0.12 per share [1][2][25]. Financial & Operational Highlights - Average production increased by 6% year-over-year to 7,380 barrels of oil equivalent per day (BOEPD) [2][6]. - Total revenues rose by 2% to $20.7 million compared to $20.3 million in the same quarter last year, driven by a 6% increase in production and a 22% rise in realized natural gas prices [10][11]. - Net income was reported at $1.1 million, a turnaround from a net loss of $1.8 million in the prior year [14]. - Adjusted net income improved to $0.3 million from a loss of $0.8 million year-over-year [14][15]. - Adjusted EBITDA increased by 41% to $8.0 million, attributed to higher natural gas revenues and reduced lease operating costs [15][19]. Production & Pricing - The average realized price for crude oil decreased by 16% to $55.42 per barrel, while natural gas prices increased by 22% to $3.32 per thousand cubic feet (MCF) [17][18]. - Total production included approximately 2,098 BOPD of crude oil, 4,065 BOEPD of natural gas, and 1,217 BOEPD of natural gas liquids (NGLs) [17]. Development & Acquisitions - The company expanded its mineral and royalty platform, completing four acquisitions in the Haynesville-Bossier Shale for a total estimated net consideration of $4.5 million, adding approximately 321 net royalty acres [6][19]. - The acquisitions are expected to enhance cash flow and dividend coverage, with a payback period of under three years [6][19]. Operational Efficiency - Lease operating costs improved to $11.5 million, with a per-unit cost of $16.96 per BOE, down from $20.05 per BOE in the previous year [11]. - The transition from electric submersible pumps to rod pumps in the Chaveroo field has improved lifting efficiency and stabilized production, resulting in performance trending approximately 5% above initial expectations [6][7]. Balance Sheet & Liquidity - As of December 31, 2025, the company had cash and cash equivalents of $3.8 million and outstanding borrowings of $54.5 million [23][24]. - The company paid $4.2 million in dividends during the quarter and incurred $0.9 million in capital expenditures [24].