Evolution Petroleum Corporation

Fiscal Q4 2026 production averaged 6,901 BOE per day, up 3% sequentially and down 4% year over year. Total revenues were $24.2 million, up 20% sequentially and 15% year over year. Net income was $4.6 million, or $0.13 per diluted share, versus a net loss of $8.9 million in fiscal Q3 and net income of $3.4 million, or $0.10 per diluted share, in the year-ago quarter. Adjusted EBITDA more than doubled sequentially to $6.5 million from $3.1 million, though it declined from $8.6 million a year ago. Lease operating costs were $12.8 million; on a per-unit basis, LOE was $20.35 per BOE in the prior-year-adjusted comparison and improved about 5% sequentially to $20.25 per BOE from $21.49 in fiscal Q3. Cash on hand was $6.1 million at June 30, borrowings were $56.5 million, and total liquidity was approximately $13.9 million. For the full year, average production was 7,077 BOE/d versus 7,074 BOE/d in fiscal 2025, operating cash flow was $23.6 million versus $33.1 million in fiscal 2025, and the company ended with 27.2 million BOE of proved reserves. Forward guidance was limited, but management said fiscal 2027 capital budget is about $4 million to $6 million, excluding possible Chaveroo CapEx, and the quarterly dividend remains $0.12 per share for Q1 2027.

Kelly Loyd framed fiscal 2026 as a year of portfolio building and fiscal Q4 as the expected recovery after temporary issues rolled off. He emphasized that Evolution is becoming more diversified across long-life operated assets, working interests, and minerals/royalties, with the goal of building greater value per share while maintaining dividend sustainability. He was upbeat about fiscal 2027, pointing to higher minerals contributions, improving operations in TexMex and other assets, and additional upside from new wells and the Permian minerals deal.

Ryan Stash focused on the quarter’s financial recovery and balance-sheet flexibility. He cited $24.2 million of revenue, $4.6 million of net income, $6.5 million of adjusted EBITDA, $6.1 million of cash, $56.5 million of borrowings, and $13.9 million of total liquidity at quarter-end, plus $6.8 million of operating cash flow and $1.4 million of capex. He also noted the $5.8 million unrealized gain on derivatives, $4.3 million of dividends paid in the quarter, and $16.9 million of dividends paid for fiscal 2026, while saying the company’s financial priorities remain liquidity, manageable leverage, and capital deployment where returns per share look attractive.

Analysts pressed on the temporary borrowing-base increase, and management said it was mainly to provide interim liquidity and flexibility for the Permian minerals acquisition until the formal redetermination. They also asked about activity trends and capital allocation, and management said SCOOP/STACK and the Permian are seeing more rig and permitting activity, Chaveroo remains a timing question with the operator, and fiscal 2027 capex is expected to be $4 million to $6 million excluding Chaveroo. On natural gas, management said West Coast differentials have already improved from unusually weak levels, Henry Hub weakness reflects warm-weather expectations and supply growth, and longer-term LNG and power demand should support gas, though a very warm winter could cap near-term pricing.