Evolution Petroleum (EPM) Q4 2024 earnings summary

Executive summary

• Achieved record oil and liquids revenue and production in fiscal 2024, offsetting weak natural gas prices and increasing proved oil reserves by 20%.

• Added 6.6 million BOE of proved reserves through two major acquisitions, expanding drilling inventory by over 380 locations.

• Participated in 3 new producing wells in Q4 and 27 in fiscal 2024, with 10 wells in progress post year-end.

• Maintained a consistent dividend program, marking the 44th consecutive quarterly payment and returning $16 million in FY24.

• Focused on disciplined capital allocation, portfolio diversification, and long-term shareholder returns.

Financial highlights

• Fiscal Q4 2024 revenue was $21.2 million, up 17% year-over-year, with net income up 644% to $1.2 million and adjusted EBITDA up 72% to $8 million.

• Fiscal 2024 full-year revenue reached $86 million, net income $4 million, and adjusted EBITDA $30 million.

• Q4 production was 7,209 BOE/d (up 11% YoY), with oil up 20%, gas up 5%, and NGLs up 17%.

• Lease operating costs decreased to $11.4 million; per unit LOE down 13% to $17.39/BOE.

• Ended the quarter with $6.4 million in cash, $39.5 million in borrowings, and total liquidity of $16.9 million.

Outlook and guidance

• Fiscal 2025 CapEx expected in the range of $12.5–$14.5 million, with spending focused on Chaveroo and SCOOP/STACK drilling.

• CO2 purchases for Delhi Field expected to restart in early Q2 fiscal 2025, with LOE projected to return to historical levels around $20/BOE.

• Anticipates strong liquids production in fiscal 2025, supporting continued dividend payments.

• Ongoing evaluation of M&A and organic growth opportunities, with near-term capital spending funded from operations, working capital, and credit facility.

• Participation in new horizontal wells in Chaveroo and further development in SCOOP/STACK and Delhi planned.