Evolution Petroleum (EPM) Q4 2026 earnings summary

Executive summary

• Achieved significant progress in diversification, with minerals and royalty portfolio becoming a larger part of the business and selective investments in working interest assets.

• Q4 net income rebounded to $4.6 million from a loss in Q3, with adjusted EBITDA more than doubling sequentially to $6.5 million.

• Revenue for Q4 rose 20% sequentially and 15% year-over-year to $24.2 million, driven by higher realized oil and NGL prices and increased production.

• Completed a $16 million Permian Midland Basin mineral acquisition post-year-end, adding 3,420 net royalty acres, over 200 BOE/d of production, and more than 1,000 future drilling locations.

• Maintained commitment to shareholder returns, with the 52nd consecutive quarterly dividend declared and $16.9 million paid for the year.

Financial highlights

• Q4 production averaged 6,901 BOE/d, up 3% sequentially but down 4% year-over-year; fiscal year 2026 production averaged 7,077 BOE/d.

• Q4 revenue was $24.2 million, up 20% sequentially and 15% year-over-year, driven by higher realized oil and NGL prices and increased production.

• Net income for Q4 was $4.6 million ($0.13/share), compared to a net loss of $8.9 million in Q3 and net income of $3.4 million a year ago.

• Adjusted EBITDA more than doubled sequentially to $6.5 million, but declined year-over-year from $8.6 million due to prior year one-time benefits.

• Lease operating costs (LOE) increased to $12.8 million; per BOE LOE improved 5% sequentially to $20.35.

• Cash on hand at year-end was $6.1 million; total liquidity post-acquisition was ~$19 million.

• Operating cash flow for Q4 was $6.8 million; full-year operating cash flow was $23.6 million, down from $33.1 million in 2025.

• Paid $16.9 million in dividends for fiscal 2026.

Outlook and guidance

• Fiscal 2027 capital budget set at $4–$6 million, excluding potential Chaveroo development.

• Expect continued improvement in margins and lifting costs as minerals and royalties contribute more.

• Over 1,000 undeveloped drilling locations added, supporting future production growth and dividend sustainability.

• Anticipate better gas pricing as regional differentials normalize and LNG/power demand grows.

• Focus remains on maintaining liquidity, managing leverage, and deploying capital for attractive returns per share.