Evolution Petroleum | 10-Q: FY2026 Q3 Revenue Misses Estimate at USD 20.17 M

Revenue: As of FY2026 Q3, the actual value is USD 20.17 M, missing the estimate of USD 21.9 M.

EPS: As of FY2026 Q3, the actual value is USD -0.26, missing the estimate of USD 0.02.

EBIT: As of FY2026 Q3, the actual value is USD 378 K.

Evolution Petroleum Corporation operates as a single reportable segment focused on the ownership and investment in onshore oil and natural gas properties in the United States .

Revenue

• Three Months Ended March 31, 2026 vs. 2025:
  • Total revenues decreased to $20.168 million from $22.561 million, a -10.6% change .
  • Crude oil revenue decreased by -11.0% to $10.474 million from $11.769 million .
  • Natural gas revenue decreased by -6.5% to $7.284 million from $7.790 million .
  • Natural gas liquids revenue decreased by -19.7% to $2.410 million from $3.002 million .
• Nine Months Ended March 31, 2026 vs. 2025:
  • Total revenues decreased to $62.135 million from $64.732 million, a -4.0% change .
  • Crude oil revenue decreased by -11.0% to $34.042 million from $38.269 million .
  • Natural gas revenue increased by 15.4% to $20.625 million from $17.868 million .
  • Natural gas liquids revenue decreased by -13.1% to $7.468 million from $8.595 million .

Net Income (Loss)

• Three Months Ended March 31, 2026 vs. 2025: Net loss increased to -$8.932 million from -$2.179 million .
• Nine Months Ended March 31, 2026 vs. 2025: Net loss increased to -$7.043 million from -$1.939 million .

Operating Costs

• Three Months Ended March 31, 2026 vs. 2025:
  • Total operating costs were $20.726 million compared to $20.975 million .
  • Ad valorem and production taxes decreased by -10.6% to $1.317 million from $1.473 million .
  • Gathering, transportation, and other costs decreased by -2.7% to $2.834 million from $2.913 million .
  • Other lease operating costs decreased by -2.2% to $8.808 million from $9.002 million .
  • Depletion, depreciation, and accretion increased to $5.294 million from $5.014 million .
  • General and administrative expenses decreased to $2.473 million from $2.573 million .
• Nine Months Ended March 31, 2026 vs. 2025:
  • Total operating costs were $62.120 million compared to $61.897 million .
  • Ad valorem and production taxes decreased by -23.2% to $3.325 million from $4.328 million .
  • Gathering, transportation, and other costs decreased by -2.3% to $8.393 million from $8.592 million .
  • Other lease operating costs increased by 3.1% to $25.838 million from $25.051 million .
  • Depletion, depreciation, and accretion increased to $17.174 million from $16.172 million .
  • General and administrative expenses decreased to $7.390 million from $7.754 million .

Other Income (Expense)

• Three Months Ended March 31, 2026 vs. 2025:
  • Net loss on derivative contracts increased to -$9.869 million from -$3.802 million .
  • Interest expense increased to -$960 thousand from -$705 thousand .
• Nine Months Ended March 31, 2026 vs. 2025:
  • Net loss on derivative contracts increased to -$5.453 million from -$3.223 million .
  • Interest expense increased to -$2.880 million from -$2.292 million .

Production Volumes

• Three Months Ended March 31, 2026 vs. 2025:
  • Crude oil production increased by 2.9% to 177 thousand barrels (MBBL) from 172 MBBL .
  • Natural gas production decreased by -2.1% to 1,968 thousand cubic feet (MMCF) from 2,011 MMCF .
  • Natural gas liquids production increased by 5.4% to 98 MBBL from 93 MBBL .
  • Equivalent production (MBOE) increased by 0.5% to 603 MBOE from 600 MBOE .
  • Average daily production (BOEPD) increased by 0.5% to 6,700 BOEPD from 6,667 BOEPD .
• Nine Months Ended March 31, 2026 vs. 2025:
  • Crude oil production increased by 4.0% to 577 MBBL from 555 MBBL .
  • Natural gas production decreased by -0.1% to 6,359 MMCF from 6,364 MMCF .
  • Natural gas liquids production increased by 2.3% to 318 MBBL from 311 MBBL .
  • Equivalent production (MBOE) increased by 1.5% to 1,955 MBOE from 1,927 MBOE .
  • Average daily production (BOEPD) increased by 1.5% to 7,135 BOEPD from 7,033 BOEPD .

Average Price per Unit (excluding derivative impacts)

• Three Months Ended March 31, 2026 vs. 2025:
  • Crude oil price decreased by -13.5% to $59.18 per barrel (BBL) from $68.42 per BBL .
  • Natural gas price decreased by -4.4% to $3.70 per MCF from $3.87 per MCF .
  • Natural Gas Liquids price decreased by -23.8% to $24.59 per BBL from $32.28 per BBL .
  • Equivalent price (BOE) decreased by -11.0% to $33.45 per BOE from $37.60 per BOE .
• Nine Months Ended March 31, 2026 vs. 2025:
  • Crude oil price decreased by -14.4% to $59.00 per BBL from $68.95 per BBL .
  • Natural gas price increased by 15.3% to $3.24 per MCF from $2.81 per MCF .
  • Natural Gas Liquids price decreased by -15.1% to $23.48 per BBL from $27.64 per BBL .
  • Equivalent price (BOE) decreased by -5.4% to $31.78 per BOE from $33.59 per BOE .

Cash Flow

• Nine Months Ended March 31, 2026 vs. 2025:
  • Cash flows provided by operating activities decreased to $16.719 million from $22.596 million .
  • Cash flows used in investing activities increased to -$27.228 million from -$10.053 million, primarily due to the SCOOP/STACK Minerals Acquisition and Louisiana Minerals purchases .
  • Cash flows provided by financing activities were $10.618 million compared to cash flows used in financing activities of -$13.388 million, driven by net borrowings under the Senior Secured Credit Facility and net proceeds from ATM Sales Agreements .

Capital Structure and Liquidity

• As of March 31, 2026, Evolution Petroleum Corporation had $2.6 million in cash and cash equivalents, and $56.5 million in outstanding borrowings on its Senior Secured Credit Facility, with $7.7 million available borrowing capacity .
• Working capital was a deficit of -$10.6 million as of March 31, 2026, compared to a deficit of -$4.0 million at June 30, 2025 .
• The weighted average interest on borrowings under the Senior Secured Credit Facility was 6.78% for the nine months ended March 31, 2026, compared to 7.59% for the same period in 2025 .

Acquisitions and Capital Expenditures

• From December 2025 through March 2026, Evolution Petroleum Corporation acquired mineral and royalty interests in Louisiana for $5.0 million .
• On August 4, 2025, the company completed the SCOOP/STACK Minerals Acquisition for approximately $16.3 million .
• During the nine months ended March 31, 2026, development capital expenditures were $4.0 million, primarily in SCOOP/STACK, Chaveroo Field, and Hamilton Dome Field .

Shareholder Returns

• Evolution Petroleum Corporation paid $12.6 million in cash dividends during the nine months ended March 31, 2026 .
• A quarterly cash dividend of $0.12 per share was declared on May 11, 2026, payable June 30, 2026 .
• Under the ATM Sales Agreements, approximately 1.1 million shares were sold for net proceeds of $4.7 million during the nine months ended March 31, 2026 .

Outlook and Strategy

Evolution Petroleum Corporation’s long-term goal is to maximize total shareholder return from a diversified portfolio of long-life oil and natural gas properties, built through acquisitions and selective development . The company expects fiscal year 2026 budgeted capital expenditures to be in the range of $4.0 million to $6.0 million, excluding potential acquisitions, and anticipates bringing approximately eleven gross wells online at its SCOOP/STACK properties . Management also expects capital workover projects to continue across most asset fields and aims to secure permits for the next six wells at Chaveroo Field before the end of fiscal year 2026 .