Evolution Petroleum Corporation

Fiscal Q3 revenues were $20.2 million, down 11% year over year, with the decline driven by an 11% drop in average realized equivalent prices and production roughly flat at 6,700 BOE/d. Net loss was $8.9 million, or $0.26 per diluted share, versus a net loss of $2.2 million, or $0.07 per diluted share, in the year-ago period. Adjusted EBITDA was $3.1 million versus $7.4 million last year, and adjusted net loss was $2.9 million versus $0.8 million of adjusted net income in the prior-year quarter. Lease operating expenses were $13 million, or $21.49 per BOE, compared with $22.32 per BOE a year ago. Cash on hand was $2.6 million, borrowings were $56.5 million, letters of credit were $0.8 million, and total liquidity was approximately $10.3 million. The board declared a quarterly dividend of $0.12 per share, the 51st consecutive quarterly dividend and 16th consecutive dividend at that rate. For Q4, management expects the prior-period Delhi adjustment to be behind them, differentials to normalize, TexMex to be a more meaningful contributor, and mineral/royalty assets to ramp further; they said they expect robust cash flow and more benefit from higher oil and gas prices, while noting at least 30% of crude is still unhedged in the fiscal fourth quarter.

Kelly Loyd framed the quarter as a temporary setback rather than a sign of structural weakness, emphasizing the company’s seven-year effort to build a diversified, capital-efficient portfolio that can sustain free cash flow and the dividend. He pointed to weather-related downtime, gas pricing dislocations, and the Delhi transportation adjustment as nonrecurring issues, and said those items should roll off in Q4. His tone was confident and constructive, with repeated emphasis that the business is designed to withstand difficult quarters and still compound per-share value.

Ryan Stash highlighted the hard numbers: $20.2 million of revenue, $8.9 million of net loss, $3.1 million of adjusted EBITDA, and $13 million of LOE, alongside $2.6 million of cash and $10.3 million of liquidity at March 31, 2026. He said the quarter was hurt by $7.6 million of unrealized hedge losses tied to the spike in crude prices, and that the quarter also reflected regional gas differential weakness, especially at Jonah, plus downtime across several assets. On capital allocation, he said the company paid $4.3 million of dividends during the quarter, continues to add hedges to meet credit facility covenants, and is focused on downside protection while preserving upside; he also noted the balance sheet and asset base support ongoing shareholder returns and selective growth.

Analysts focused on Delhi marketing flexibility, the production run rate into Q4, Texas/New Mexico workovers, the state of non-op and minerals asset pricing, and whether the company would adjust hedging given elevated oil prices. Management said it has flexibility in the Delhi JOA to take production in kind and is actively considering doing so, while also saying GPT charges should be broadly in line historically. On operations, they said storm impacts are largely back online, TexMex workovers should add about 100 net BOE/d by the end of fiscal Q4, and additional SCOOP/STACK and Haynesville/Bossier wells should begin contributing as data comes in, but they declined to quantify near-term upside or speculate on Chaveroo timing or any legal recourse on Delhi. On hedging, Ryan said near-term restructuring options are limited, so the main move is adding 2027 hedges at attractive prices rather than trying to remove existing protection.