Evolution Petroleum Reports $1.8 Million Net Loss in Q2 Fiscal 2025

Evolution Petroleum Corporation reported its financial results for the second quarter of fiscal year 2025, revealing a net loss of $1.8 million for the three months ended December 31, 2024, compared to a net income of $1.1 million for the same period in 2023. Total revenues for the quarter decreased by 3.6% to $20.3 million, down from $21.0 million a year earlier. The decline in revenue was attributed to a decrease in average realized prices for oil and natural gas, despite a 10% increase in average daily production, which rose to 6,935 barrels of oil equivalent per day (BOEPD) from 6,304 BOEPD in the prior year.

For the six months ended December 31, 2024, the company reported a modest increase in total revenues to $42.2 million, up from $41.6 million in the same period of 2023. This increase was primarily driven by a 13% rise in production volumes, which was partially offset by lower average realized prices. The average realized price per BOE decreased by 10.4% compared to the previous year, reflecting the impact of fluctuating commodity prices on the company's revenue.

In terms of operational developments, Evolution Petroleum completed the acquisition of non-operated oil and natural gas assets in the SCOOP and STACK plays in Oklahoma in February 2024, which contributed to the increase in production. The company also entered into a Participation Agreement for joint development in the Chaveroo oilfield, further expanding its operational footprint. As of December 31, 2024, the company had $11.7 million in cash and cash equivalents, an increase from $6.4 million at the end of the previous fiscal year, and maintained $39.5 million in borrowings under its Senior Secured Credit Facility.

The company declared a quarterly cash dividend of $0.12 per share, payable on March 31, 2025, reflecting its ongoing commitment to returning value to shareholders. Additionally, Evolution Petroleum has initiated an At-the-Market (ATM) equity sales program, allowing it to raise up to $30 million through the sale of common stock, with net proceeds intended for general corporate purposes and debt repayment. The company remains focused on maximizing shareholder returns through its diversified portfolio of oil and natural gas properties while navigating the challenges posed by volatile commodity prices and market conditions.