Financial & Operational Highlights
($ in thousands)
Q1 2026
Q1 2025
Q4 2025
% Change vs Q1/Q1
% Change vs Q1/Q4
Average BOEPD
7,315
7,478
7,198
(2
)%
2
%
Revenues
$
21,288
$
21,896
$
21,108
(3
)%
1
%
Net Income (Loss)
$
824
$
2,065
$
3,412
(60
)%
(76
)%
Adjusted EBITDA(1)
$
7,301
$
8,125
$
8,572
(10
)%
(15
)%
________________________(1) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
Fiscal Q1 production increased quarter over quarter to 7,315 average barrels of oil equivalent per day ("BOEPD").
Natural gas revenue increased 38% to $5.9 million in fiscal Q1 compared to the year-ago period.
Returned $4.2 million to shareholders in the form of cash dividends during fiscal Q1.
Purchased assets in the SCOOP/STACK area of Oklahoma, marking the Company's largest acquisition of mineral and royalty interests and the Company's second acquisition in the region. This transaction brings limited integration costs and provides ownership in high-margin, long-life assets with significant expected upside requiring no additional capex via ownership in over 650 future drilling locations and immediate accretion to cash flow per share (the "Minerals Acquisition").
Management CommentsKelly Loyd, President and Chief Executive Officer, commented: "During a quarter marked by softer crude prices and higher operating costs related to the initial integration and transition to the new operator of our recent TexMex acquisition, the strength of our diversified, long-life asset base, supported by steady production and disciplined capital allocation, allowed us to continue generating solid cash flow while executing on our strategy. During the quarter, we closed our largest minerals and royalties acquisition to date in the SCOOP/STACK, providing immediate accretion to cash flow per share and positioning Evolution to benefit from anticipated exceptional margins and a multi-year inventory of drilling locations, which come with no incremental future capital obligations.
Looking ahead, we remain resolute in creating long-term shareholder value through disciplined capital management, strategic acquisitions, and conservative cost management, all aimed at ensuring the strength and continuity of our quarterly cash dividend. This strategy provides the flexibility of drilling development wells during periods of higher commodity pricing and acquiring producing reserves when commodity prices are low. At the same time, our existing low decline producing reserves will continue to maintain strong current cash flows. As such, we are very pleased to announce that in accordance with our policy of setting the dividend at a level that we view as sustainable for multiple years, we will pay $0.12 per share for the 14th consecutive quarter for our fiscal 2nd quarter ending December 31, 2025."
Fiscal First Quarter 2026 Financial ResultsTotal revenues decreased 3% to $21.3 million compared to $21.9 million in the year-ago quarter. The change was driven primarily by 14% and 8% lower realized oil and NGL prices, respectively, partially offset by a 43% increase in natural gas prices.
Lease operating costs ("LOE") were $13.1 million compared to $11.8 million in the year-ago quarter. On a per-unit basis, LOE was $19.45 per BOE compared to $17.15 per BOE in the year-ago quarter. The increase was primarily driven by the addition of TexMex properties and initial integration and transition to the new operator.
Depletion, depreciation, and accretion expense was $6.0 million compared to $5.7 million in the year-ago period. On a per-BOE basis, the Company's current quarter depletion rate was $8.26 per BOE, compared to $7.74 per BOE in the year-ago period, reflecting an increase in the depletion rate and a decrease in reserve volumes.
General and administrative ("G&A") expenses, excluding stock-based compensation, were $1.8 million compared to $2.0 million in the year-ago period. The decrease is primarily attributable to a decline in professional fees. On a per-BOE basis, G&A (excluding stock-based compensation) was $2.66 compared to $2.86 in the year-ago period.
The Company reported net income of $0.8 million, or $0.02 per diluted share, compared to net income of $2.1 million, or $0.06 per diluted share, in the year-ago period. Excluding the impact of selected items, including benefits provided by the unrealized portion of our hedging activities, the Company reported an adjusted net loss of $0.1 million, or $0.00 per diluted share, compared to adjusted net income of $0.7 million, or $0.02 per diluted share, in the year-ago period.(2)
Adjusted EBITDA was $7.3 million compared to $8.1 million in the year-ago quarter. The decline was primarily due to lower realized pricing for crude oil and higher lease operating costs compared to the prior year period.
________________________(2) Adjusted net income (loss) is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
Production & Pricing
Average price per unit:
Q1 2026
Q1 2025
% Change vs Q1/Q1
Crude oil (BBL)
$
62.18
$
72.24
(14
)%
Natural gas (MCF)
2.74
1.92
43
%
Natural Gas Liquids (BBL)
23.30
25.43
(8
)%
Equivalent (BOE)
31.63
31.83
(1
)%
Total production for the first quarter of fiscal 2026 declined 2% to 7,315 net BOEPD compared to 7,478 net BOEPD in the year-ago period. Total production for the first quarter of fiscal 2026 included approximately 2,250 barrels per day ("BOPD") of crude oil, 3,891 BOEPD of natural gas, and 1,174 BOEPD of NGLs. The change in total production was primarily driven by downtime of a turbine replacement at the Delhi NGL plant and natural production declines. The overall decrease in production was partially offset by production from the Company's Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025. Total oil and natural gas liquids production generated 72% of revenue for the fiscal 2026 first quarter compared to 80% in the year-ago period.
The Company's average realized commodity price (excluding the impact of derivative contracts) decreased slightly to $31.63 per BOE in Q1, compared to $31.83 per BOE in the year-ago period. These changes were primarily due to lower realized oil and NGL prices, partially offset by a 43% increase in realized natural gas prices.
Operations UpdateAt SCOOP/STACK, activity on the Company's legacy working-interest position moderated during the quarter, with three wells turned to sales and two additional wells remaining in progress from prior periods. Future drilling activity will be contingent upon commodity prices and budgeted activity for the Company's operating partners. The recently acquired minerals and royalty interests are performing in line with expectations.
At Chaveroo, no new drilling occurred during the quarter as the Company continued to advance permits for the next development pad and evaluate timing relative to commodity prices. Operations included a lift conversion program that is expected to reduce future operating costs and improve production performance.
At Jonah, production increased in fiscal Q1 as the field worked off prior pipeline imbalance volumes from fiscal Q4 2025. With imbalance corrections substantially completed by October, sales volumes have now returned to expected levels.
At Hamilton Dome, lease operating expenses normalized in fiscal Q1, following elevated workover activity in the prior period. A slower pace of workovers is expected during the fall and winter months, with efforts focused on maintaining key wells.
At TexMex, integration and transition activities continued during the quarter. During this period, the new operator has been focused on optimizing surface facilities, evaluating and repairing existing wells, and identifying candidates for reactivation as part of ongoing field optimization efforts. When evaluating the acquisition, additional upfront costs were expected to integrate the new operator and bring parts of the field back online over time. We expect production to increase and operating costs per barrel to decrease in future quarters.
Balance Sheet, Liquidity, and Capital SpendingOn September 30, 2025, the Company had cash and cash equivalents of $0.7 million, outstanding borrowings of $53.0 million, and $0.8 million in letters of credit outstanding under its Senior Secured Credit Facility. Availability under the facility was $11.2 million, bringing total liquidity to $11.9 million. In the first quarter of fiscal 2026, Evolution paid $4.2 million in common stock dividends and incurred $1.9 million in capital expenditures related to drilling and completion activities at SCOOP/STACK and the previously mentioned lift conversion program at Chaveroo. Evolution also received net proceeds of $0.2 million from the sale of shares of common stock under its At-The-Market equity sales agreement. The Company had total net cash provided by operating activities of $7.8 million for the quarter.
Cash Dividend on Common StockOn November 10, 2025, Evolution's Board of Directors declared a cash dividend of $0.12 per share of common stock, payable on December 31, 2025, to common stockholders of record as of December 15, 2025. This will be the 49th consecutive quarterly cash dividend on the Company's common stock since December 31, 2013. To date, Evolution has returned approximately $139.0 million, or $4.17 per share, back to stockholders in common stock dividends.
Conference CallAs previously announced, Evolution Petroleum will host a conference call on Wednesday, November 12, 2025, at 10:00 a.m. Central Time to review its first quarter fiscal 2026 financial and operating results. Participants can join via phone by dialing (844) 481-2813 or view the webcast online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=CKYmUkGt. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through November 12, 2026, via the webcast link provided and on Evolution's Investor Relations website at www.ir.evolutionpetroleum.com.
About Evolution PetroleumEvolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information.
Cautionary StatementAll forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "anticipate," "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement.
ContactInvestor Relations(713)
Evolution Petroleum CorporationCondensed Consolidated Statements of Operations (Unaudited)(In thousands, except per share amounts)
Three Months Ended
September 30,
June 30,
2025
2024
2025
Revenues
Crude oil
$
12,872
$
14,737
$
12,833
Natural gas
5,900
4,285
5,648
Natural gas liquids
2,516
2,874
2,627
Total revenues
21,288
21,896
21,108
Operating costs
Lease operating costs
13,087
11,790
11,367
Depletion, depreciation, and accretion
5,961
5,725
5,821
General and administrative expenses
2,325
2,527
2,580
Total operating costs
21,373
20,042
19,768
Income (loss) from operations
(85
)
1,854
1,340
Other income (expense)
Net gain (loss) on derivative contracts
2,181
1,798
3,696
Interest and other income
10
57
27
Interest expense
(917
)
(823
)
(678
)
Income (loss) before income taxes
1,189
2,886
4,385
Income tax (expense) benefit
(365
)
(821
)
(973
)
Net income (loss)
$
824
$
2,065
$
3,412
Net income (loss) per common share:
Basic
$
0.02
$
0.06
$
0.10
Diluted
$
0.02
$
0.06
$
0.10
Weighted average number of common shares outstanding:
Basic
33,725
32,722
33,553
Diluted
33,977
32,868
33,723
Evolution Petroleum CorporationCondensed Consolidated Balance Sheets (Unaudited)(In thousands, except share and per share amounts)
September 30, 2025
June 30, 2025
Assets
Current assets
Cash and cash equivalents
$
714
$
2,507
Receivables from crude oil, natural gas, and natural gas liquids revenues
8,485
10,804
Derivative contract assets
2,075
1,777
Prepaid expenses and other current assets
1,235
2,287
Total current assets
12,509
17,375
Property and equipment, net of depletion, depreciation, and impairment
Oil and natural gas properties—full-cost method of accounting:
Oil and natural gas properties, subject to amortization, net
149,934
142,248
Oil and natural gas properties, not subject to amortization
5,812
—
Total property and equipment, net
155,746
142,248
Other noncurrent assets
Derivative contract assets
402
198
Other assets
474
431
Total assets
$
169,131
$
160,252
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
11,167
$
12,901
Accrued liabilities and other
5,443
6,909
Derivative contract liabilities
1,216
1,577
State and federal taxes payable
55
—
Total current liabilities
17,881
21,387
Long term liabilities
Senior secured credit facility
53,000
37,500
Deferred income taxes
5,848
6,234
Asset retirement obligations
21,928
21,535
Derivative contract liabilities
1,343
1,783
Total liabilities
100,000
88,439
Commitments and contingencies
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued and
outstanding 34,647,751 and 34,337,188 shares as of September 30, 2025
and June 30, 2025, respectively
35
34
Additional paid-in capital
47,300
46,650
Retained earnings
21,796
25,129
Total stockholders' equity
69,131
71,813
Total liabilities and stockholders' equity
$
169,131
$
160,252
Evolution Petroleum CorporationCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands)
Three Months Ended
September 30,
June 30,
2025
2024
2025
Cash flows from operating activities:
Net income (loss)
$
824
$
2,065
$
3,412
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depletion, depreciation, and accretion
5,961
5,725
5,821
Stock-based compensation
537
