Evolution Petroleum (EPM) Q2 2025 earnings summary

Executive summary

• Production increased 10% year-over-year to 6,935 BOE per day, driven by acquisitions and new wells, despite temporary downtime in Williston and Chaveroo.

• Revenues for the quarter were $20.3 million, down 4% year-over-year due to a 12% decline in realized commodity prices.

• Net loss for the quarter was $1.8 million, compared to net income of $1.1 million in the prior year, mainly due to lower prices and higher expenses.

• 46th consecutive quarterly dividend of $0.12 per share declared, with $4.1 million returned to shareholders in Q2 and $126.6 million to date.

• Cash provided by operating activities for the six months was $15.3 million, up $4.0 million from the prior year period.

Financial highlights

• Adjusted EBITDA was $5.7 million, down from $6.8 million year-over-year, reflecting lower prices and higher costs.

• Lease operating costs for the quarter were $12.8 million, with per-unit LOE down 6% to $20.05 per BOE due to higher production.

• Cash and cash equivalents stood at $11.7 million, with total liquidity of $22.2 million and $39.5 million in borrowings as of December 31, 2024.

• Operating cash flow for the quarter was $7.7 million, up from $7.1 million a year ago.

• $2.0 million raised from ATM equity sales during the quarter.

Outlook and guidance

• CapEx guidance for fiscal 2025 is $12–$14.5 million, with spending focused on Chaveroo and SCOOP/STACK, and all four new Chaveroo wells expected online in Q4 2025.

• M&A pipeline remains robust, with multiple accretive acquisition opportunities under evaluation.

• Company expects to fund development with operating cash flow, working capital, and available credit.

• Natural gas price outlook is favorable, with improved realizations post-quarter and expectations for increased demand.

• Commitment to maintaining dividend program and disciplined capital allocation.