Evolution Petroleum (EPM) investor relations material

Executive summary

• Net income improved to $1.1 million for Q2 FY2026, reversing a $1.8 million loss in the prior year, driven by higher production, increased natural gas exposure, and derivative gains despite lower oil prices.

• Adjusted EBITDA rose 41% year-over-year to $8.0 million, reflecting stronger natural gas revenues, derivative gains, and cost discipline.

• Revenues for the quarter were $20.7 million, up 2% year-over-year, with production increases from recent acquisitions offsetting price declines.

• Strategy focuses on building a diversified, resilient portfolio with low base decline, modest capital requirements, and accretive mineral and royalty acquisitions.

• Major acquisitions in Haynesville-Bossier Shale, SCOOP/STACK, and TexMex are expected to provide meaningful, accretive growth and cash flow.

Financial highlights

• Q2 FY2026 revenues: $20.7 million (up 2% YoY); net income: $1.1 million (vs. $1.8 million loss YoY); adjusted EBITDA: $8.0 million (up 41% YoY).

• Average daily production increased 6.4% year-over-year to 7,380 BOEPD.

• Lease operating expenses improved to $11.5 million ($16.96 per BOE), down from $20.05 per BOE year-over-year.

• Realized natural gas price rose 21.6% to $3.32/MCF, while oil price fell 15.7% to $55.42 per barrel.

• Net gain on derivatives for the quarter: $2.2 million (vs. $1.2 million loss YoY).

Outlook and guidance

• Capital expenditure guidance for FY2026 remains at $4 million–$6 million, focused on SCOOP/STACK drilling and Chaveroo Field permitting.

• Anticipates meaningful contributions from newly acquired Haynesville-Bossier Shale and SCOOP/STACK mineral and royalty assets in upcoming quarters.

• Strategy remains focused on assets with durable cash flow, modest capital needs, and attractive risk-adjusted returns, with continued opportunistic acquisitions and dividend payments.