Financial & Operational Highlights
($ in thousands)
Q2 2026
Q2 2025
Q1 2026
% Change vs Q2/Q2
% Change vs Q2/Q1
Average BOEPD
7,380
6,935
7,315
6
%
1
%
Revenues
$
20,679
$
20,275
$
21,288
2
%
(3
)%
Net Income (Loss)(1)
$
1,065
$
(1,825
)
$
824
NM
29
%
Adjusted Net Income (Loss)(1)(2)
$
257
$
(841
)
$
(79
)
NM
NM
Adjusted EBITDA(3)
$
7,994
$
5,688
$
7,301
41
%
9
%
_______________(1) "NM" means "Not Meaningful."(2) Adjusted Net Income is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information. (3) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
Fiscal Q2 production increased 6% year-over-year to 7,380 barrels of oil equivalent per day ("BOEPD"), with oil increasing 8%, natural gas increasing 6%, and natural gas liquids ("NGLs") increasing 7%.
During the quarter, the Company benefited from higher realized natural gas prices, contributing to a 41% increase in Adjusted EBITDA to $8.0 million and a significant increase in Adjusted EBITDA margin to 39% compared to 28%.
Returned approximately $4.2 million to shareholders in the form of cash dividends during fiscal Q2.
M&A Highlights
Continued to expand the mineral and royalty platform, building out a growing network of industry partners that is enabling a consistent pipeline of tailored acquisition opportunities.
In late December 2025 and January 2026, Evolution closed four mineral and royalty acquisitions in the prolific Haynesville-Bossier Shale natural gas play in Louisiana, for total estimated net consideration of $4.5 million, adding approximately 321 net royalty acres ("NRA") to the Company's portfolio of assets.
Combined, the four closed transactions added 13 gross, high margin producing royalty wells and added zero-cost drilling and completion exposure to:
24 gross drilled, uncompleted wells ("DUCs")
10 additional proved, undeveloped locations ("PUDs")
10 probable locations
~2.1 BCF of net proved reserves at current strip pricing
These newly acquired assets are expected to pay back in under three years and enhance both near-and long-term cash flow, dividend coverage, and portfolio diversification.
Development Highlights
Scoop/Stack development
Working Interests: three gross wells in progress and signed three additional authorizations for expenditures ("AFEs") for new wells during the quarter.
Mineral Interests (at zero additional capital costs): converted three gross wells to Proved Developed Production ("PDP") and have an additional 16 gross wells in progress.
Transitioned from electric submersible pumps to rod pumps across the Chaveroo field, with five out of seven wells already converted.
Significantly improved lifting efficiency, reduced downtime and stabilized production, resulting in field performance trending approximately 5% above initial expectations, thereby boosting capital efficiency and long-term asset value.
Management Comments
Kelly Loyd, President and Chief Executive Officer, commented: "We are very pleased to deliver strong financial results for the quarter with a meaningful increase in profitability, supported by higher realized natural gas prices and improved results in the field, despite lower oil prices. Operationally, production was stable across the majority of our diversified asset base and lease operating expenses per BOE improved, reflecting continued execution in cost-control and efficiency.
"Looking ahead, we remain focused on a disciplined approach to capital allocation that balances sustainable shareholder returns with high conviction investment opportunities. In particular, we've been successful in growing a durable pipeline we expect will continue to provide attractive royalty and mineral prospects tailored to support long‑term dividend strength and production stability. We believe this continuous pipeline will allow us to be more consistent in our acquisition strategy, in addition to remaining highly opportunistic. This approach aligns with our goal of offering capital-efficient exposure to high-margin production, which we anticipate will be accretive to cash flow per share both now and in the future.
"Recent activity across our SCOOP/STACK minerals and newly acquired Haynesville-Bossier assets demonstrates this strategy in action. Several wells have turned to sales or entered drilling and completion operations ahead of schedule, driving incremental cash flow and accelerating returns. Our emphasis on assets with a blend of current production, near-term zero-cost drilling, and long-term upside has begun to yield tangible results.
"Our diversified, low-decline asset base and improving operational performance across the majority of our portfolio, provides strong resiliency throughout commodity price cycles. As always, we will continue to evaluate the most effective ways to deploy capital for long-term shareholder value."
Fiscal Second Quarter 2026 Financial Results
Total revenues increased 2% to $20.7 million compared to $20.3 million in the year-ago quarter. The change was driven primarily by a 6% increase in production and a 22% increase in realized natural gas prices, partially offset by 16% and 12% lower realized oil and NGL prices, respectively.
Lease operating costs ("LOE") improved to $11.5 million compared to $12.8 million in the year-ago quarter. On a per-unit basis, LOE was $16.96 per BOE compared to $20.05 per BOE in the year-ago quarter. The decrease was primarily driven by reduced ad valorem taxes at Barnett Shale and the cessation of CO2 purchases at Delhi Field, partially offset by the addition of TexMex properties and initial integration and transition to the new operator.
Depletion, depreciation, and accretion expense was $5.9 million compared to $5.4 million in the year-ago period. On a per-BOE basis, the Company's current quarter depletion rate was $8.15 per BOE, compared to $7.87 per BOE in the year-ago period, reflecting an increase in the depletion rate and a decrease in reserve volumes.
General and administrative ("G&A") expenses, excluding stock-based compensation, remained flat at $2.0 million for each of the periods. On a per-BOE basis, G&A (excluding stock-based compensation) was $2.91 compared to $3.13 in the year-ago period. The decrease on a per unit basis is primarily the result of the increase in production for the current year.
The Company reported net income of $1.1 million, or $0.03 per diluted share, compared to net loss of $1.8 million, or $(0.06) per share, in the year-ago period. Excluding the impact of selected items, which include gains and losses on the unrealized portion of hedges, the Company reported adjusted net income of $0.3 million, compared to adjusted net loss of $0.8 million in the year-ago period.(1)
Adjusted EBITDA increased 41% to $8.0 million compared to $5.7 million in the year-ago quarter. The increase was primarily due to increases in natural gas revenues and realized gains on derivative contracts, as well as reductions in lease operating costs compared to the prior year period.(2)
Production & Pricing
Average price per unit:
Q2 2026
Q2 2025
% Change vs Q2/Q2
Crude oil (BBL)
$
55.42
$
65.72
(16
)%
Natural gas (MCF)
3.32
2.73
22
%
Natural Gas Liquids (BBL)
22.70
25.90
(12
)%
Equivalent (BOE)
30.46
31.78
(4
)%
Total production for the second quarter of fiscal 2026 increased 6% to 7,380 net BOEPD compared to 6,935 net BOEPD in the year-ago period. Total production for the second quarter of fiscal 2026 included approximately 2,098 barrels per day ("BOPD") of crude oil, 4,065 BOEPD of natural gas, and 1,217 BOEPD of NGLs. The change in total production was primarily driven by production from the Company's Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025. In the current quarter, natural gas accounted for 36% of revenue, up from 29% in the prior year.
_______________(1) Adjusted net income (loss) is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.(2) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information
The Company's average realized commodity price (excluding the impact of derivative contracts) decreased slightly to $30.46 per BOE in Q2, compared to $31.78 per BOE in the year-ago period. These changes were primarily due to lower realized oil and NGL prices, partially offset by a 22% increase in realized natural gas prices.
Operations Update
The Company continued to expand its mineral and royalty position, completing two mineral acreage acquisitions in the Haynesville-Bossier Shale play in Louisiana during the quarter and an additional two subsequent to quarter end. The Company's mineral acquisitions prioritize placing value on wells that are either currently producing or are expected to be producing within one year of purchase.
At SCOOP/STACK, there was a material increase of 28% in production and 23% decrease in LOE per BOE during fiscal Q2 compared to the prior year quarter, primarily due to the closing of various mineral and royalty acquisitions.
At Chaveroo, production for fiscal Q2 increased year-over-year, benefiting from wells brought online over the past twelve months. The Company continues to advance permitting activities to support future development when commodity prices and oil market conditions improve.
At TexMex, a successful workover program and facility upgrades led to improved production during the quarter, and the Company expects additional optimization work to drive further gains in fiscal 2026. Production increases were partially offset by a one-time failure of a tank battery in Texas that was repaired and restored to service during the quarter.
At Delhi, production was impacted by equipment downtime during the quarter. However, field-level profitability remained strong, aided by lower operating costs. Sales volumes are expected to improve moving forward following the resolution of downtime issues in late January.
At Jonah and Barnett, natural gas volumes remained steady quarter-over-quarter, reflecting their low-decline profiles, and the Company realized improved pricing in both basins.
Balance Sheet, Liquidity, and Capital Spending
On December 31, 2025, the Company had cash and cash equivalents of $3.8 million, outstanding borrowings of $54.5 million, and $0.8 million in letters of credit outstanding under its Senior Secured Credit Facility, and a weighted average interest rate of 6.88%. Availability under the facility was $9.7 million, bringing total liquidity to $13.5 million. In the second quarter of fiscal 2026, Evolution paid $4.2 million in common stock dividends and incurred $0.9 million in capital expenditures. Evolution deployed capital on royalty and minerals acquisitions in Louisiana. These cash outlays were partially offset by cash received from its SCOOP/STACK Minerals Acquisition for net cash flows from the effective date to closing date. Evolution also received net proceeds of $1.0 million from the sale of shares of common stock under its At-The-Market equity sales agreement. The Company had total net cash provided by operating activities of $5.4 million for the quarter.
Cash Dividend on Common Stock
On February 9, 2026, Evolution's Board of Directors declared a cash dividend of $0.12 per share of common stock, payable on March 31, 2026, to common stockholders of record on March 16, 2026. This will be the 50th consecutive quarterly cash dividend on the Company's common stock since December 31, 2013. To date, Evolution has returned approximately $143.1 million, or $4.29 per share, back to stockholders in common stock dividends.
Conference Call
As previously announced, Evolution Petroleum will host a conference call on Wednesday, February 11, 2026, at 10:00 a.m. CT to review its fiscal second quarter 2026 financial and operating results. Participants can join online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=xSmEDlK2 or by dialing (844) 481-2813. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through February 11, 2027, via the provided webcast link and on Evolution's Investor Relations website at www.ir.evolutionpetroleum.com.
About Evolution Petroleum
Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information.
Cautionary Statement
All forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "anticipate," "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement.
ContactInvestor Relations(713) 935-0122[email protected]
Evolution Petroleum CorporationCondensed Consolidated Statements of Operations (Unaudited)(In thousands, except per share amounts)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2025
2024
2025
2025
2024
Revenues
Crude oil
$
10,696
$
11,763
$
12,872
$
23,568
$
26,500
Natural gas
7,441
5,793
5,900
13,341
10,078
Natural gas liquids
2,542
2,719
2,516
5,058
5,593
Total revenues
20,679
20,275
21,288
41,967
42,171
Operating costs
Lease operating costs
11,510
12,793
13,087
24,597
24,583
Depletion, depreciation, and accretion
5,919
5,433
5,961
11,880
11,158
General and administrative expenses
2,592
2,654
2,325
4,917
5,181
Total operating costs
20,021
20,880
21,373
41,394
40,922
Income (loss) from operations
658
(605
)
(85
)
573
1,249
Other income (expense)
Net gain (loss) on derivative contracts
2,235
(1,219
)
2,181
4,416
579
Interest and other income
12
52
10
22
109
Interest expense
(1,003
)
(764
)
(917
)
(1,920
)
(1,587
)
Income (loss) before income taxes
1,902
(2,536
)
1,189
3,091
350
Income tax (expense) benefit
(837
)
711
(365
)
(1,202
)
(110
)
Net income (loss)
$
1,065
$
(1,825
)
$
824
$
1,889
$
240
Net income (loss) per common share:
Basic
$
0.03
$
(0.06
)
$
0.02
$
0.05
$
—
Diluted
$
0.03
$
(0.06
)
$
0.02
$
0.05
$
—
Weighted average number of common shares outstanding:
Basic
33,904
32,934
33,725
33,815
32,828
Diluted
34,025
32,934
33,977
34,001
32,994
Evolution Petroleum CorporationCondensed Consolidated Balance Sheets (Unaudited)(In thousands, except share and per share amounts)
December 31, 2025
June 30, 2025
Assets
Current assets
Cash and cash equivalents
$
3,762
$
2,507
Receivables from crude oil, natural gas, and natural gas liquids revenues
9,345
10,804
Derivative contract assets
3,196
1,777
Prepaid expenses and other current assets
859
2,287
Total current assets
17,162
17,375
Property and equipment, net of depletion, depreciation, and impairment
Oil and natural gas properties—full-cost method of accounting:
Oil and natural gas properties, subject to amortization, net
146,476
142,248
Oil and natural gas properties, not subject to amortization
4,645
—
Total property and equipment, net
151,121
142,248
Other noncurrent assets
Derivative contract assets
135
198
Other assets
847
431
Total assets
$
169,265
$
160,252
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$
11,041
$
12,901
Accrued liabilities and other
5,308
6,909
Derivative contract liabilities
1,505
1,577
State and federal taxes payable
1,272
—
Total current liabilities
19,126
21,387
Long term liabilities
Senior secured credit facility
54,500
37,500
Deferred income taxes
4,935
6,234
Asset retirement obligations
22,309
21,535
Derivative contract liabilities
465
1,783
Operating lease liability
386
—
Total liabilities
101,721
88,439
Commitments and contingencies
Stockholders' equity
Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 35,003,844 and 34,337,188 shares as of December 31, 2025 and June 30, 2025, respectively
35
34
Additional paid-in capital
48,843
46,650
Retained earnings
18,666
25,129
Total stockholders' equity
67,544
71,813
Total liabilities and stockholders' equity
$
169,265
$
160,252
Evolution Petroleum CorporationCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands)
Three Months Ended
Six Months Ended
December 31,
September 30,
December 31,
2025
2024
2025
2025
2024
Cash flows from operating activities:
Net income (loss)
$
1,065
$
(1,825
)
$
824
$
1,889
$
240
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
