Evolution Petroleum Lifts Q4 Profit and Maintains Dividend

Evolution Petroleum reported fiscal Q4 2025 net income of $3.4 million on 7,198 BOEPD, declared a $0.12 per-share dividend for Q1 FY26, and expanded its mineral and royalty footprint with a $17 million SCOOP/STACK deal.

Q4 net income rose to $3.4 million (vs. $1.2 million a year earlier) and Adjusted EBITDA increased 7% to $8.6 million, supported by stable volumes and stronger gas realizations; the board declared a $0.12 dividend payable Sept. 30, 2025, marking the 48th consecutive quarterly payout.

Details & metrics

Volumes/Pricing: Q4 production averaged 7,198 BOEPD (oil 2,319 BOPD; gas 3,747 BOEPD; NGLs 1,132 BOEPD). Realized prices: oil $60.82/bbl (-20% y/y), gas $2.76/mcf (+66% y/y), NGLs $25.50/bbl (-12% y/y). Financials: Revenue $21.1M (-1% y/y). Adjusted EBITDA $8.6M (+7% y/y; +16% q/q). Adjusted net income $1.1M ($0.03/sh). FY25: Near-record average production 7,074 BOEPD (+4% y/y); gas revenue $23.5M (+9%), NGL revenue $11.2M (+3%). Returned $16.3M in dividends in FY25. Dividend: $0.12/share declared Sept. 11 for payment Sept. 30, 2025 (record Sept. 22); 13th consecutive at this rate and 48th straight quarterly dividend. Balance sheet/liquidity: Amended and restated RBL effective June 30, 2025: $200M revolver, $65M initial borrowing base, maturity June 30, 2028. Q4-end cash $2.5M; borrowings $37.5M; liquidity $30.0M. Hedging: Mix of oil swaps/collars through 2026 and sizable multi-year gas swaps/collars, providing downside protection to cash flows. Reserves (6/30/25): 27.1 MMBOE total proved (12.1 MMBbl oil, 61.5 Bcf gas, 4.7 MMBbl NGLs). Largest proved contributors include Barnett, Delhi, Jonah, Chaveroo, and Williston.

Portfolio actions & operations

Acquisitions:

TexMex non-operated package closed April 14 for $9M, adding ~440 net BOEPD (60% oil/40% gas). SCOOP/STACK minerals (subsequent event): closed August 2025 for ~$17M, ~5,500 net royalty acres and ~420 net BOE/d at the effective date; funded with cash plus $15M RBL draw. Chaveroo (NM): Four gross wells brought online under budget; early production tracking ahead of plan. Next pad permitting underway; cadence to follow commodity prices. Delhi (LA): Temporary downtime for facility safety upgrades; CO? injections limited to recycled volumes during summer heat. Jonah (WY): Operations steady; Q4 sales impacted by pipeline balancing/allocation—make-ups expected to aid Q1 FY26. SCOOP/STACK legacy: Activity moderated with five wells in progress; new wells began contributing in Q4; development ongoing across newly acquired minerals.

Context & outlook

Evolution’s model prioritizes low-decline, cash-generating assets and regular dividends; FY25 results underscore resilience amid oil/NGL price softness offset by stronger gas. The expanded RBL and hedge book backstop continued accretive M&A and measured development. Management plans to remain selective and returns-focused, pacing spend to market conditions while growing royalty cash flows (no lifting costs) and advancing Chaveroo development.

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