Evolution Petroleum (EPM) investor relations material

Executive summary

• Portfolio demonstrated resilience with production essentially flat year-over-year at 6,700 BOEPD, despite significant weather-related disruptions and downtime.

• Revenues declined 10.6%–11% year-over-year for Q3 2026, mainly due to lower realized prices and unfavorable natural gas differentials.

• Net loss was $8.9 million ($0.26 per diluted share) for Q3 2026, compared to a $2.2 million loss a year ago, driven by unrealized hedge losses.

• Recent acquisitions in minerals and royalties, particularly in Louisiana and SCOOP/STACK, are expected to ramp up production and cash flow in coming quarters.

• Management remains focused on sustaining dividends and expects Q4 to better reflect underlying earnings power as temporary headwinds subside.

Financial highlights

• Total revenues for Q3 2026 were $20.2 million, down from $22.6 million year-over-year.

• Net loss per share was $(0.26) for Q3 2026; adjusted net loss was $2.9 million, versus adjusted net income of $0.8 million a year ago.

• Adjusted EBITDA was $3.1 million, down from $7.4 million year-over-year, reflecting lower revenues and realized derivative losses.

• Lease operating expenses improved to $13 million ($21.49/BOE), down from $22.32/BOE in the prior quarter.

• Cash and cash equivalents at quarter-end were $2.6 million; borrowings under credit facility were $56.5 million.

Outlook and guidance

• Q4 expected to show robust cash flow as one-time items roll off and new wells contribute, including 23 Louisiana royalty wells and TexMex optimization adding 100 BOEPD.

• Fiscal 2026 capital expenditures expected to be $4.0–$6.0 million, excluding acquisitions.

• Management remains confident in sustaining and potentially increasing the dividend as conditions allow.