In This Article:
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Total Revenue: $22.6 million, down 2% year over year.
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Net Loss: $2.2 million or $0.07 per share.
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Adjusted Net Income: $0.8 million or $0.02 per diluted share.
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Adjusted EBITDA: $7.4 million, compared to $8.5 million in the prior year period.
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Natural Gas Revenue: Increased 33% year over year to $7.8 million.
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NGL Revenue: Increased 14% to $3 million.
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Oil Revenue: Declined 19%.
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Total Production: Declined 7.5% year over year to 6,667 barrels of oil equivalent per day.
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Cash and Cash Equivalents: $5.6 million as of March 30, 2025.
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Borrowings Outstanding: $35.5 million under the revolving credit facility.
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Quarterly Dividend: $0.12 per share, marking the 47th consecutive quarter.
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Capital Expenditures: $4.4 million in fiscal Q3.
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Tex-Mex Acquisition: $9 million transaction, contributing 440 barrels of oil equivalent per day.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evolution Petroleum Corp (EPM) demonstrated disciplined capital allocation and strategic execution, maintaining a strong dividend and generating positive cash flow.
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The company successfully closed the Tex-Mex acquisition, adding approximately 440 barrels of oil equivalent per day of stable, low decline production.
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Four new wells in the Chevvaro development block were brought online, contributing significantly to production and cash flow.
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Natural gas revenue increased by 33% year over year, partially offsetting a decline in oil revenue.
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The company maintained a strong hedging strategy, with approximately 40% of oil volumes hedged at prices above $70, providing a safety net for CapEx and dividends.
Negative Points
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Total production declined 7.5% year over year due to planned maintenance and weather-related downtime.
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Net loss for the third quarter was $2.2 million, compared to net income in the previous year.
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Adjusted EBITDA decreased from $8.5 million to $7.4 million year over year, primarily due to lower revenues and higher operating costs.
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The company experienced an 8% decrease in production volumes, impacting overall revenue.
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Oil revenue declined by 19%, reflecting the volatility and softness in crude oil prices.
Q & A Highlights
Q: Can you discuss the current M&A market and any trends you're seeing, particularly in terms of oil versus gas-weighted acquisitions? A: Kelly Loyd, President and CEO, explained that despite weaker oil prices, there are still opportunities in the M&A market, particularly for low-decline assets. The company is seeing activity driven by funds needing to monetize assets and companies offloading non-core properties. On the natural gas side, the favorable strip pricing is leading to opportunities for acquisitions at reasonable discounts.