EPM · Evolution Petroleum Corporation

Evolution Petroleum's fiscal Q3 2026 results showed a GAAP net loss of $8.9 million, or ($0.26) per diluted share, widening from a $2.2 million loss in the prior-year quarter, primarily due to unrealized hedge losses extending into 2027. Adjusted net loss was $2.9 million, reflecting impacts from $3.2 million in unfavorable differentials including $1.2 million Delhi prior-period adjustments, $2.2 million realized hedge losses, and over 300 BOEPD downtime from January weather, optimizations, and equipment failures. Revenues fell 11% to $20.2 million on stable 6,700 BOEPD production (up slightly YoY) but 11% lower realized prices at $33.45/BOE, with gas differentials at Jonah down $1.96/Mcf and Barnett $0.90/Mcf. LOE improved to $13.0 million or $21.49/BOE, aided by no CO2 purchases at Delhi and high-margin mineral additions. Adjusted EBITDA dropped 58% to $3.1 million. Management notes issues resolved, with production restored; expects Q4 uplift from 23 Louisiana wells online, TexMex +100 net BOEPD from workovers, Chaveroo rod pump conversions cutting costs, and Delhi normalization. Recent $5.0 million Louisiana acquisitions added 350 NRA with 17 PDP and 50+ future locations; post-quarter, divested $3.3 million non-core SCOOP/STACK for Haynesville/Bossier assets. Balance sheet as of March 31: $2.6 million cash, $56.5 million debt at 6.78%, $10.4 million liquidity. Declared 16th straight $0.12/share dividend (51st consecutive quarterly), returning $4.3 million in Q3, underscoring commitment to shareholder returns amid portfolio optimization for durable cash flows.