Evolution Petroleum Reports Q3 Fiscal 2025 Net Loss of $2.2 Million

Evolution Petroleum Corporation reported its financial results for the third quarter of fiscal year 2025, revealing a net loss of $2.2 million, a significant decline from the net income of $289,000 recorded in the same period last year. Total revenues for the quarter amounted to $22.6 million, a slight decrease from $23.0 million in the prior year. The company's crude oil revenues fell by 19% to $11.8 million, while natural gas revenues increased by 33% to $7.8 million, and natural gas liquids revenues rose by 14% to $3.0 million. The overall decline in revenues was attributed to decreased production volumes, which were partially offset by higher average realized prices for natural gas and natural gas liquids.

Comparing the nine-month period ending March 31, 2025, to the same period in 2024, Evolution Petroleum's total revenues remained relatively stable at $64.7 million. The company experienced a 5% increase in production volumes, primarily due to contributions from recent acquisitions and development drilling activities. However, this increase was countered by a decrease in average realized prices, with crude oil prices dropping by 8% and natural gas prices decreasing by 5%. The net loss for the nine-month period was $1.9 million, contrasting with a net income of $2.8 million in the previous year.

Strategically, Evolution Petroleum has made significant acquisitions, including the purchase of non-operated oil and natural gas assets in the SCOOP and STACK plays in Oklahoma for approximately $39.1 million in February 2024. Additionally, the company recently completed the TexMex Acquisition, acquiring interests in approximately 600 wells in New Mexico and Texas for about $9 million. These acquisitions are expected to enhance the company's production capabilities and contribute to future revenue growth.

Operationally, the company reported an average daily production of 6,667 barrels of oil equivalent per day (BOEPD) for the quarter, down from 7,209 BOEPD in the prior year. The decrease was attributed to planned maintenance and natural production declines, although the recent acquisitions helped mitigate some of the impact. As of March 31, 2025, Evolution Petroleum had 34.3 million shares of common stock outstanding and maintained a cash balance of $5.6 million, with $35.5 million drawn from its Senior Secured Credit Facility.

Looking ahead, Evolution Petroleum remains focused on maximizing shareholder returns through its diversified portfolio of oil and natural gas properties. The company plans to continue its capital development activities, with budgeted capital expenditures for fiscal year 2025 expected to range between $12.5 million and $14.5 million. The board of directors declared a quarterly cash dividend of $0.12 per share, reflecting the company's commitment to returning value to shareholders despite the recent financial challenges.