Evolution Petroleum Reports $8.9 Million Net Loss and Declining Revenues for Q1 2026

Evolution Petroleum Corporation reported a net loss of $8.9 million for the three months ended March 31, 2026, compared to a loss of $2.2 million for the same period in 2025. Total revenues for the current quarter were $20.2 million, down from $22.6 million a year earlier, primarily due to a decrease in average realized prices for crude oil, natural gas, and natural gas liquids (NGLs). The average realized price per barrel of oil fell by 13.5% to $59.18, while the average price for natural gas decreased by 4.4% to $3.70 per MCF. Despite these challenges, production volumes remained relatively stable, with average daily production slightly increasing to 6,700 BOEPD from 6,667 BOEPD.

For the nine months ending March 31, 2026, the company reported a net loss of $7.0 million, compared to a loss of $1.9 million in the prior year. Total revenues for this period were $62.1 million, down from $64.7 million, reflecting a decrease in average realized prices, particularly for crude oil, which fell by 14.4%. However, production volumes increased by 1.5%, driven by contributions from recent acquisitions, including the SCOOP/STACK Minerals Acquisition and the TexMex Acquisition. The company’s operational costs remained stable, with lease operating costs totaling $37.6 million for the nine months, slightly lower than the previous year's $37.0 million.

In terms of strategic developments, Evolution Petroleum completed several acquisitions, including mineral and royalty interests in Louisiana for $5.0 million and interests in the SCOOP and STACK plays in Oklahoma for approximately $16.3 million. These acquisitions were funded through cash on hand and borrowings under the company’s Senior Secured Credit Facility, which had an outstanding balance of $56.5 million as of March 31, 2026. The company also declared a quarterly cash dividend of $0.12 per share, maintaining its commitment to returning value to shareholders.

Operationally, the company reported a total of 35,821,410 shares outstanding as of March 31, 2026, with a working capital deficit of $10.6 million, primarily due to current derivative contracts. The company’s derivative contracts, which are used to hedge against commodity price fluctuations, resulted in a net loss of $9.9 million for the quarter, significantly impacting overall financial performance. The company continues to monitor market conditions closely, particularly given the volatility in oil and natural gas prices, which could affect future revenues and operational strategies.

Looking ahead, Evolution Petroleum aims to continue its focus on maximizing shareholder returns through strategic acquisitions and operational efficiencies. The company plans to maintain its capital expenditures within a range of $4.0 million to $6.0 million for the fiscal year, excluding acquisitions, while also pursuing additional growth opportunities. The management remains cautious about the potential impacts of fluctuating commodity prices and market conditions on its financial performance and operational plans.