Evolution Petroleum — Fiscal First Quarter 2027 Earnings Summary

Financial Performance:

• Oil, natural gas, and NGL revenues increased 6% year-over-year to $22.6 million (Q1 2026: $21.3 million).
• Net loss was $3.0 million ($0.08 per share) compared to net income of $0.8 million ($0.02 per share) in the prior year period.
• Adjusted net loss was $0.3 million ($0.01 per share) compared to an adjusted net loss of $0.1 million ($0.00 per share) in the prior year period.
• Adjusted EBITDA was $6.8 million, a 6% decrease year-over-year from $7.3 million.
• Lease operating costs (LOE) decreased to $12.4 million from $13.1 million year-over-year; per-unit LOE was $19.25 compared to $19.45.
• Depletion, depreciation, and accretion expense was $5.7 million ($8.32 per BOE) compared to $6.0 million ($8.26 per BOE) in the prior year.
• General and administrative expenses (excluding stock-based compensation) increased to $2.1 million from $1.8 million; per-unit G&A was $3.22 compared to $2.66.
• Net cash provided by operating activities was $3.3 million.
• Cash and cash equivalents were $3.1 million as of September 30, 2026.
• Outstanding borrowings under the Senior Secured Credit Facility were $60.0 million with a weighted average interest rate of 6.48%.
• Total liquidity was $15.3 million ($3.1 million cash + $12.2 million availability).

Guidance and Future Outlook:

• Management expects the Permian Minerals portfolio to increase production rates in fiscal Q2 following a full quarter of ownership.
• Recent investments in Permian Minerals, Haynesville, and Bossier Shale are expected to meaningfully add to cash flow in coming quarters as new wells enter production.
• The company anticipates continued growth within its existing portfolio and is negotiating additional farmouts of nonproducing working interest acreage.
• Future drilling timing and participation levels at Chaveroo Field remain subject to operator plans, commodity prices, and capital availability.

Business Segments and Product Lines:

• Average production was 6,978 BOEPD, a 5% decrease year-over-year from 7,315 BOEPD.
• Production mix was 62% oil, 24% natural gas, and 14% NGLs.
• Permian Minerals portfolio exceeded acquisition expectations, averaging 218 BOE/d since the August 20 acquisition date, with 21 gross wells brought online.
• Haynesville and Bossier Shale M&R interests continue to come online; the company acquired $0.3 million of additional interests during the quarter.
• SCOOP/STACK production remained flat sequentially with two gross wells brought online and eight in progress.
• Jonah, Barnett, Williston, and Hamilton Dome properties showed slight production increases over the prior quarter.
• Delhi Field production was impacted by compressor downtime.
• TexMex operating costs declined following a change of operator.
• Barnett Shale engaged a new operator focused on field profitability and workover opportunities.

Market and Competitive Landscape:

• Average realized equivalent price increased 11% to $35.13 per BOE year-over-year.
• Average realized crude oil price increased 31% to $81.74 per barrel.
• Average realized NGL price increased 26% to $29.47 per barrel.
• Average realized natural gas price decreased 8% to $2.51 per MCF.
• The company noted unsolicited interest in its assets, highlighting opportunities to realize value from existing holdings.

Risks and Challenges:

• Production decreased due to unplanned downtime at Delhi and TexMex, as well as natural decline across the portfolio.
• Net income was negatively impacted by a net loss on the unrealized portion of hedges.
• Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• CEO Kelly Loyd expressed encouragement regarding fiscal Q1 results and the outlook for the diversified portfolio.
• Management highlighted the success of the Permian Minerals acquisition exceeding production expectations.
• The tone emphasized unlocking value from nonproducing acreage through farmouts and retaining overriding royalty interests.
• Management stated a near-term focus on realizing benefits of recent investments, strengthening the balance sheet, and sustaining the quarterly dividend.

Other Key Points:

• Declared a $0.12 per share cash dividend for fiscal Q2, payable December 31, 2026; this marks the 53rd consecutive quarterly dividend.
• Returned $4.9 million to shareholders via dividends in fiscal Q1.
• Completed a farmout of 636 net acres in the Williston Basin for approximately $2.5 million plus a small overriding royalty interest.
• Paid $16.0 million for Permian Minerals acquisitions and incurred $0.7 million in capital expenditures during the quarter.
• Received $12.5 million in net proceeds from an August 2026 public equity offering.
• Borrowing base on the Senior Secured Credit Facility was redetermined to $70.0 million on October 20, 2026.
• Total dividends paid to date amount to approximately $156.6 million ($4.65 per share).