EVOLUTION PETROLEUM CORP

Evolution Petroleum Corporation

Overview

• Independent energy company focused on acquiring and developing long-lived oil, natural gas, and NGL properties in the United States.
• Core model: non-operated working interests and mineral/royalty interests. The company does not operate properties and has no field-based employees; operations are conducted by third-party operators.
• Strategy emphasizes disciplined capital allocation, conservative balance sheet management, and returning capital to shareholders via dividends and/or share repurchases.

Recent developments (selected 2026 activity)

• Dividend: Board declared a quarterly common dividend of $0.12 per share, payable September 30, 2026 (as of September 10, 2026).
• Permian Minerals Acquisition: Acquired mineral and royalty interests in the Midland Basin core from a private seller for $16.0 million (effective August 1, 2026). Financing included net proceeds from a concurrent public equity offering and $3.2 million borrowed under the Senior Secured Credit Facility.
• Common Stock Offering: Completed a public offering on August 20, 2026 of 4.3 million shares at $3.25 per share; net proceeds approximately $12.8 million. Proceeds were used to fund the Permian Minerals Acquisition and other purposes.
• Senior Secured Credit Facility: As of August 20, 2026, the borrowing base was temporarily increased to $73.0 million through October 20, 2026; the prior committed amount was $65.0 million. A fall redetermination was expected around October 1, 2026. A prior modification on November 28, 2025 set the Margined Collateral Value at $65.0 million.
• Louisiana Minerals acquisitions: Cash purchases totaling $6.2 million (December 2025–June 2026) across multiple parishes; assets include proved producing wells, drilled-but-not-yet-producing wells, and undeveloped acreage.
• SCOOP/STACK Minerals Acquisition: Acquired mineral and royalty interests in SCOOP/STACK on August 4, 2025 for approximately $16.3 million (cash); financed with $15.0 million borrowed under the Senior Secured Credit Facility and cash on hand. On June 30, 2026 the company divested 3,700 net royalty acres for about $3.1 million.
• ATM Equity Sales Program: Program capacity up to $30.0 million maintained; a February 11, 2026 ATM agreement restored capacity to $30.0 million. In the year ended June 30, 2026, sold approximately 1.4 million shares for net proceeds of about $5.8 million.
• Ongoing activity: Additional mineral acquisitions in Louisiana and SCOOP/STACK and continued use of equity and debt markets to fund acquisitions and balance sheet needs.

Business focus and properties (as of June 30, 2026)

SCOOP/STACK — Central Oklahoma

• Non-operated working and mineral interests: ~2.6% average net working interest (2.0% average net revenue interest) on ~101,100 gross acres (4,000 net); ~0.6% average net royalty on ~8,600 gross royalty acres (1,800 net).
• Operators include Continental Resources, Ovintiv USA, Validus Energy, and EOG Resources (approximately 34% of wells operated by other companies).
• 2026 average net daily production: 1.4 MBOEPD; mix 54% natural gas, 24% oil, 22% NGLs.

Chaveroo Field — Chaves and Roosevelt Counties, New Mexico

• Non-operated: 50% net working interest; ~41% net revenue interest; ~4,500 gross acres (2,300 net); operated by PEDEVCO.
• 2026 average net daily production: 0.3 MBOEPD (100% oil).

Jonah Field — Sublette County, Wyoming

• Non-operated: ~20% average net working interest; ~15% net revenue; ~5,300 gross acres (950 net); operated by Jonah Energy.
• 2026 average net daily production: 0.3 MBOEPD (mostly natural gas and NGLs; later years ~89% natural gas).

Williston Basin — Williston, North Dakota

• Non-operated: ~39% average net working interest; ~33% average net revenue; ~133,800 gross acres (40,100 net); ~99% held by production; operated by Foundation Energy Management.
• 2026 average net daily production: 0.4 MBOEPD; mix 73% oil, 16% NGLs, 11% natural gas.

Barnett Shale — North Texas

• Non-operated working and overriding royalty interests: ~17% average net working interest; ~14% average net revenue; ~123,800 gross acres (21,000 net).
• Operators included Diversified Energy (until sale to Eagleridge in June 2026) and others.
• 2026 production: ~2.2 MBOEPD; mix 73% natural gas, 26% NGLs, 1% oil.

Hamilton Dome Field — Hot Springs County, Wyoming

• Non-operated working interests: ~24% net working; ~20% net revenue; ~5,900 gross acres (1,400 net); operated by Merit Energy.
• 2026 average net daily production: 0.4 MBOEPD (oil from Tensleep and Phosphoria); oil priced off Western Canadian Select.

Delhi Field — Enhanced Oil Recovery CO2 Flood, Northeast Louisiana

• Non-operated working interests: ~24% net; ~19% net revenue; combined with RM/ORRI interests totaling ~26% net revenue.
• 13,600 gross acres; 3,200 net; operated by Denbury Onshore LLC (ExxonMobil).
• 2026 average net daily production: 0.6 MBOEPD; mix 81% oil, 19% NGLs; oil priced off Louisiana Light Sweet (LLS).

TexMex — Louisiana, Texas, New Mexico

• Mineral/royalty interests including Haynesville/Bossier (Louisiana) and non-operated working interest in TexMex.
• TexMex: ~42% net working interest; ~35% net revenue; ~27,800 gross acres (11,200 net); operated by Texian Operating Company.
• 2026 average daily production: ~0.4 MBOEPD; mix 50% oil, 48% natural gas, 1% NGLs.

Louisiana Minerals

• Acquired across multiple parishes; portfolio includes proved producing wells, drilled-but-not-yet-producing wells, and undeveloped acreage; development is underway by operators.

Proved reserves and economics (as of June 30, 2026)

• Total Proved Reserves: 27,217 MBOE (7,049 MBbl oil; 74,192 MMcf natural gas; 4,227 MBbls NGLs).
• Proved developed vs undeveloped:
  • Developed producing: 22,032 MBOE (80.9% of total).
  • Developed non-producing: 349 MBOE (1.3%).
  • Undeveloped: 4,836 MBOE (17.8%).
• Proved undeveloped (PUD) reserves: 3,275 MBbl oil; 6,533 MMcf natural gas; 472 MBbls NGL; total 4,836 MBOE.
• Reserve mix by field (selected): SCOOP/STACK (~4,950 MBOE), Chaveroo (~3,047 MBOE), Jonah (~3,500 MBOE), Williston (~2,229 MBOE), Barnett (~6,705 MBOE), Hamilton Dome (~1,684 MBOE), Delhi (~2,278 MBOE), TexMex & Other (~2,824 MBOE).
• 2026 pricing basis for reserves: NYMEX trailing 12-month average prices used for oil and gas; NGL pricing derived relative to net price with differential adjustments applied per property.

Production volumes, prices, and costs (fiscal year ended June 30)

• Crude oil production: total 759 MBbl in 2026; average price $66.61 per barrel.
  • By field: SCOOP/STACK 119 MBbl; Chaveroo 95 MBbl; Jonah 27 MBbl; Williston 119 MBbl; Barnett 9 MBbl; Hamilton Dome 133 MBbl; Delhi 190 MBbl; TexMex and Other 67 MBbl.
• Natural gas production: total 8,428 MMCF in 2026; average price $2.97 per MCF.
• Natural gas liquids (NGLs) production: total 419 MBbl in 2026; average price $25.65 per barrel.
• Equivalent oil (MBOE): total 2,583 MBOE; blended average price $33.43 per BOE.
• Average daily production (BOE per day): 2026: 7,077; 2025: 7,074; 2024: 6,790.
• Production costs (Lease Operating Expenses):
  • 2026 LOE: $50.338 million; $19.48 per BOE.
  • 2025 LOE: $49.338 million; $19.11 per BOE.
  • 2024 LOE: $48.273 million; $19.43 per BOE.
• Sales and concentration: Production is primarily sold under short-term contracts; approximately 46% of 2026 revenues were from three operators (Denbury/ExxonMobil, Diversified, Foundation), versus about 51% in 2025.

Employees and operators

• 11 full-time employees as of June 30, 2026, plus contract personnel and outsourced services.
• The company does not operate properties; third-party operators conduct field operations.

Other points

• Market position: Non-operating ownership model across diversified properties and basins to mitigate concentration risk.
• Markets: NGLs sold to Enterprise Products Partners L.P.; three primary operators account for a large portion of revenues; the company depends on operator performance and transportation arrangements.
• Reserves and risk management: Reserves estimates prepared by external engineers and disclosed under SEC definitions. The hedging policy uses derivatives to reduce cash flow volatility and not for speculative trading; no collateral was posted for derivative settlements in 2026 and 2025.
• Regulatory and environmental: Subject to federal, state, and local regulations, and exposed to climate-related and environmental provisions, with ongoing compliance costs and potential liabilities.

Summary

Evolution acquires and develops long-lived U.S. oil, natural gas, and NGL properties primarily through non-operated working and mineral/royalty interests, relying on third-party operators. The company pursued strategic acquisitions and capital raises in 2025–2026, funded in part by equity offerings and activity under a Senior Secured Credit Facility. As of mid-2026, the portfolio spans SCOOP/STACK, Jonah, Williston, Barnett, Hamilton Dome, Delhi, TexMex, and Louisiana mineral interests, with total Proved Reserves of 27,217 MBOE and a 2026 production profile weighted toward natural gas and NGLs alongside substantial oil contributions from several fields. The company maintains a small staff (11 full-time) and depends on a limited number of operators for a substantial portion of revenue.