Evolution Petroleum (EPM) Q1 2027 earnings summary

Executive summary

• Q1 revenue was $22.554 million, up 6% YoY; operating income was $1.861 million, while net loss was $2.992 million versus net income of $824,000, including a $4.054 million unrealized derivative loss.

• Adjusted EBITDA was $6.844 million versus $7.301 million YoY; adjusted net loss was $310,000 versus $79,000.

• Average production was 6,978 BOEPD, down 4.6% YoY; higher realized prices partly offset lower production.

• Completed a $16.0 million Permian minerals acquisition, adding 3,420 net royalty acres in the Midland Basin; a post-quarter Williston farmout generated approximately $2.5 million while retaining an ORRI.

Financial highlights

• Oil, natural gas and NGL revenue totaled $22.554 million versus $21.288 million YoY; crude oil revenue rose 7.9%, NGL revenue 26.5%, and natural gas revenue fell 7.2%.

• Net loss was $2.992 million, or $0.08 per diluted share, versus net income of $824,000, or $0.02 per share; adjusted diluted EPS excluding selected items was $(0.01).

• Adjusted EBITDA was $6.844 million versus $7.301 million YoY; adjusted net loss was $310,000 versus $79,000.

• Operating cash flow was $3.288 million; cash flow before working-capital changes was $8.4 million.

• Investing cash outflow was $17.3 million, including the Permian acquisition; ending cash was $3.1 million.

Outlook and guidance

• FY27 budgeted capital expenditures are $4.0 million–$6.0 million, excluding the Permian acquisition, potential acquisitions and Chaveroo drilling.

• A full quarter of Permian Minerals ownership and additional Permian, Haynesville and Bossier wells are expected to contribute to cash flow in coming quarters.

• FY27 plans include bringing about eight additional gross SCOOP/STACK wells online; further operator drilling and workovers are expected across the portfolio.

• Cash, operating cash flow and available borrowings are expected to cover operations, capital expenditures and dividends for at least 12 months.

• Chaveroo drilling timing and participation depend on operator plans, commodity prices and capital availability; further acreage farmouts are under discussion.