Evolution Petroleum (EPM) Water Tower Research Virtual Insights Conference summary

Strategic overview and asset diversification

• Focus on maximizing total return per share by combining long-life working interests with high-margin mineral and royalty assets, supporting both dividends and selective reinvestment.

• Maintained production above 7,000 BOE/day in 2026, replacing over 100% of produced reserves and sustaining dividends.

• Geographic and commodity diversity across oil, gas, and NGLs in multiple basins enhances cash flow resilience and reduces reliance on any single field or partner.

• Recent royalty acquisitions, including a significant Midland Basin deal, now represent about 20% of total cash flow, with no set target for further expansion—growth is opportunity-driven.

• Asset portfolio management includes both marketed and bespoke deals, with a focus on accretive opportunities and leveraging relationships for bolt-on acquisitions.

Portfolio management and growth strategy

• Royalty and mineral interests provide low-cost, operator-funded growth, complementing working interests that require capital but offer more operational influence.

• Valuations for mineral/royalty packages typically range from 2x to 4x those of similar working interest packages, reflecting their high margin and cost-free development potential.

• Operator quality is critical for both non-operated and mineral assets, influencing development pace, costs, and overall asset value.

• Organic growth is prioritized through selective participation in working interest projects and cost-free upside from mineral holdings, with a focus on value creation over pure volume growth.

• Regular review and optimization of the asset base includes divesting non-strategic or low-cash-flow assets to redeploy capital more effectively.

Recent acquisitions and operational highlights

• Closed a $60 million Midland Basin mineral acquisition, adding 3,400 net royalty acres with strong current production, significant development activity, and over 1,200 upside locations.

• Midland Basin assets are operated by top-tier companies like ExxonMobil, SM Energy, Double Eagle, ConocoPhillips, and Apache, ensuring robust development.

• Production from the Midland acquisition has already increased, with potential to double over the next few years if current activity levels persist.

• Mineral and working interest positions are established in SCOOP STACK, Haynesville-Bossier, and Midland, with ongoing opportunities for bolt-on growth in each area.

• Fiscal 2026 saw $91 million in transactions since February 2024, including $39 million in royalty deals since August 2025.