EPM

Interested in Evolution Petroleum Corporation, Inc.? Here are five stocks we like better. Evolution Petroleum’s fiscal Q3 results were weighed down by temporary issues, including weather-related downtime, weak natural gas pricing, and a one-time Delhi transportation adjustment, leading to revenue of $20.2 million and a net loss of $8.9 million. Management said production held roughly flat at about 6,700 BOEPD despite disruptions, and expects Q4 to improve as weather-related impacts clear, the Delhi issue ends, TexMex workovers ramp up, and mineral/royalty assets contribute more meaningfully. The company maintained its quarterly dividend at $0.12 per share, marking its 51st straight quarterly payout, while also discussing moderate liquidity, ongoing hedging, and recent Louisiana mineral and royalty acquisitions targeting future growth. Evolution Petroleum (NYSEAMERICAN:EPM) management said fiscal third-quarter 2026 results were pressured by temporary items, including weather-related downtime, weak regional natural gas pricing and a one-time transportation adjustment at Delhi, while emphasizing that the company expects a stronger fourth quarter as those headwinds subside. President and Chief Executive Officer Kelly Loyd said the quarter was “more challenging” than the prior period, but argued that the issues did not reflect a change in the company’s asset quality, cost structure or strategy. He said Evolution’s portfolio has been reshaped over the past seven years toward long-life, low-decline assets and capital-efficient cash flow generation, with additions including Jonah, Barnett, TexMex and a newer minerals and royalty platform. → Micron Investors Face a High-Stakes Moment After the Latest Rally “These are not structural issues,” Loyd said, referring to the quarter’s headwinds. “They don’t reflect any change in the underlying quality of our assets or our cost structure or our strategy.” Senior Vice President, Chief Financial Officer and Treasurer Ryan Stash said total revenue for the fiscal third quarter was $20.2 million, down 11% from the year-earlier period. The decline was primarily attributed to an 11% decrease in average realized equivalent prices, partly offset by a slight increase in production volumes. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? Stash said realized pricing was hurt by regional natural gas pricing dislocations at Jonah and Barnett, especially in February, as well as a $1.2 million one-time prior period transportation adjustment at Delhi. The Delhi adjustment was tied to a new marketing contract entered into by the operator and dated back to December 2024. The company reported a net loss of $8.9 million, or $0.26 per diluted share, compared with a net loss of $2.2 million, or $0.07 per diluted share, in the year-earlier quarter. Stash said the latest quarter included $7.6 million of unrealized hedge losses due to a spike in crude oil prices. Excluding selected items, including unrealized hedge losses, adjusted net loss was $2.9 million, compared with adjusted net income of $0.8 million a year earlier. → How Berkshire’s New York Times Bet Looks Today Adjusted EBITDA was $3.1 million, down from $7.4 million in the prior-year quarter. Stash said the decrease reflected lower revenues due to unfavorable differentials, production downtime across assets and realized losses on derivative contracts. Lease operating expenses improved to $13 million, or $21.49 per barrel of oil equivalent, compared with $22.32 per BOE in the prior quarter. Stash cited lower ad valorem taxes at Barnett and continued benefits from the end of CO2 purchases at Delhi, partly offset by the addition of TexMex properties and incremental workover activity. Evolution reported production of about 6,700 barrels of oil equivalent per day, which Loyd said was essentially flat year over year despite disruptions. Chief Operating Officer Mark Bunch said the January winter storms and other downtime reduced production by more than 300 net BOEPD across the portfolio, with the impacts resolved during the quarter. At Barnett, Bunch said production was heavily affected by the winter storm, resulting in a decline of about 160 BOEPD. Impacts extended into February, with production restored by March. At Delhi, the winter storm affected production for six days, while the CO2 recycle compressor was down for 40 days during the quarter after being down for much of the prior quarter. Bunch said those issues were resolved during the quarter. At TexMex, oil production increased quarter over quarter due to a successful workover program at the end of the prior quarter, though winter storms caused power outages and surface equipment damage that required repairs. Bunch said a new workover program began after quarter-end and is expected to increase production by an additional 100 net BOEPD by the end of fiscal Q4. At Chaveroo, production increased year over year as wells brought online during the past 12 months contributed, though the winter storm and gas interference on wells with electric submersible pumps reduced production by 30 net BOEPD quarter over quarter. Bunch said Evolution converted one well from an ESP to a rod pump after quarter-end, leaving all but one of seven wells converted to rod pumps. The company is also advancing permits for the next six wells and expects to have those permits before the end of fiscal 2026. Loyd said Evolution completed two additional Louisiana mineral and royalty acquisitions targeting the Haynesville and Bossier Shales, bringing total consideration for Louisiana minerals to about $5 million. He said those assets are being actively developed, with wells being drilled and completed, and that contributions are expected to build as activity translates into production. Bunch said Evolution expects 23 wells in the Haynesville and Bossier Shales to be brought online and meaningfully contribute to revenue and cash flow in fiscal Q4. At SCOOP/STACK, production from mineral and royalty interests acquired in August 2025 modestly contributed to volumes during the quarter. Bunch said there are seven gross wells in progress and 12 gross wells on production for which Evolution is still awaiting first production and revenue data. During the question-and-answer session, management said royalty production data can be delayed, particularly in Oklahoma, and declined to quantify the near-term production impact from the SCOOP/STACK wells before receiving actual data. Evolution paid $4.3 million in dividends during the quarter. The board declared a quarterly cash dividend of $0.12 per share on May 11, marking the company’s 51st consecutive quarterly dividend and its 16th consecutive dividend at that level, according to Loyd. As of March 31, 2026, Evolution had $2.6 million of cash on hand, $56.5 million of borrowings under its credit facility and $0.8 million in letters of credit outstanding. Stash said total liquidity, including cash and available borrowing capacity, was about $10.3 million. On hedging, Stash said the company continues to add hedges to comply with credit facility covenants and protect cash flow. He said near-term restructuring opportunities are limited, but Evolution has used higher prices to add hedges in calendar 2027, including swaps and floors above $70 in some cases. He also noted that at least 30% of fiscal fourth-quarter crude volumes remain unhedged and that NGLs are unhedged. Loyd said the company expects fiscal Q4 to “look meaningfully different,” citing the end of the Delhi adjustment, a return toward more normal differentials after the February Jonah gas dislocation, the final phase of the TexMex workover program and the continued ramp of minerals and royalty assets. In response to analyst questions, Loyd said the 300 BOEPD of weather-related impact was “almost substantially all back online” and that Evolution is progressing toward the expected 100 net BOEPD addition at TexMex. Management also said it is evaluating whether to take Delhi production in kind under the joint operating agreement, with Stash saying the company believes it “probably can do a little bit better” than the current marketing arrangement. Loyd closed the call by reiterating that fiscal Q3 was shaped by temporary headwinds rather than structural weakness, and said recent acquisitions and the resolution of one-time items should help fiscal Q4 better reflect the company’s underlying earnings power. Evolution Petroleum Corporation (NYSE American: EPM) is an independent oil and natural gas company focused on enhanced oil recovery (EOR) through the use of carbon dioxide. Headquartered in Houston, Texas, the company specializes in acquiring and developing mature hydrocarbon reservoirs that benefit from CO₂ injection to increase production efficiency. Evolution Petroleum's business model combines property acquisition, reservoir engineering, and CO₂ management to optimize recovery of oil and associated gas. The company's primary asset is the Jackson Dome CO₂ field in southwestern Mississippi, where natural carbon dioxide is produced, separated and reinjected into adjacent oil-bearing formations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Evolution Petroleum Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Evolution Petroleum Corp (EPM) maintained its dividend for the 51st consecutive quarter, reflecting the durability of its cash flow. The company has expanded its portfolio with long-life, low-decline assets, enhancing its capital efficiency and free cash flow generation. Recent acquisitions, such as those in the Haynesville and Bossier shales, are expected to contribute to production and revenue growth. The company has a strong capital allocation framework, focusing on protecting the balance sheet and supporting sustainable dividends. Evolution Petroleum Corp (EPM) expects a robust cash flow in the fourth quarter, benefiting from higher commodity prices and improved operational stability. The fiscal third quarter was impacted by temporary headwinds, including weather-related disruptions and non-operational items. There was a significant unrealized hedge loss of $7.6 million due to a spike in crude oil prices. The company experienced a net loss of $8.9 million for the quarter, compared to a net loss of $2.2 million in the previous year. Production was affected by a January winter storm, causing downtime and impacting revenues. Regional natural gas pricing dislocations negatively impacted realized prices at key assets like Jonah and Barnett. Warning! GuruFocus has detected 10 Warning Signs with EPM. High Yield Dividend Stocks in Gurus' Portfolio This Powerful Chart Made Peter Lynch 29% A Year For 13 Years How to calculate the intrinsic value of a stock? Is EPM fairly valued? Test your thesis with our free DCF calculator. Q: Mark, at Delhi with the new crude marketing agreement that the operator entered into, can you talk about how much flexibility Evolution has to do anything different with respect to marketing your equity production from that field? A: Ryan Stash, CFO: We have a lot of flexibility in the JOA to take the production in kind, which we're actively looking at now. The main change was a move from Denbury to Exxon, and they are now trucking instead of using a pipeline. We believe we can potentially do better in the market than the current setup. Q: Brian, in the second quarter and going forward, do you expect the GPT charges to be similar to what they were last year? A: Ryan Stash, CFO: There hasn't been anything out of the ordinary in the past quarter. The charges are relatively constant and more volume-driven, so I wouldn't expect them to vary much from historical levels. Q: Can you talk about any initiatives your operators might have to do short cycle workover projects or bring wells back online to take advantage of high oil prices? A: Mark Bunch, COO: Our operators are working towards that. For example, TexMex accelerated their second round of workovers due to the rise in prices. These are high-return projects that can be completed quickly. Q: Kelly, can you speak to the state of the non-op market and the minerals market given the volatility in commodity prices? A: Kelly Oloyd, CEO: On the non-op side, there's a lack of availability. In the minerals market, we're working with trusted partners to find opportunities. We expect the non-op market to eventually offer better returns, but currently, it's not very attractive. Q: I'm trying to figure out your run rate for the June quarter. Are you above 7,000 BOE right now? A: Kelly Oloyd, CEO: The 300 BOE impacted by storms is almost all back online. We are also adding about 100 net BOE per day in TexMex and expect additional contributions from new wells in our royalty properties. Q: Are you looking at any adjustments to your hedging program given the current elevated prices? A: Ryan Stash, CFO: We've looked at restructuring, but most opportunities aren't beneficial for creating upside. We're adding hedges for calendar '27 at attractive prices. We still have some unhedged crude and NGLs, which will allow us to benefit from current price levels. Q: Is there any anticipation that CO2 purchases at Delhi will need to be resumed or ramped up? A: Mark Bunch, COO: No, there are no plans to purchase additional CO2. We believe CO2 utilization has improved by reducing the amount being injected, which helps our operating costs. Q: Are there other opportunities you think might be possible to divest in the near-term with some non-op stuff? A: Kelly Oloyd, CEO: Yes, there are a couple of opportunities that could be impactful after some seasoning. There's always potential for smaller divestitures on the margin. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the quarterly variance to isolated, non-structural items including regional natural gas pricing dislocations and a one-time $1.2 million prior-period transportation adjustment at Delhi. Production remained resilient at 6.7 thousand BOE per day, as contributions from new acquisitions successfully offset weather-related downtime and natural declines. The company is deliberately shifting toward a more capital-efficient platform by adding long-life, low-decline assets like Jonah and the Barnett to support durable free cash flow. The emerging minerals and royalty platform is designed to become a growing, high-margin component of the portfolio with minimal capital requirements. Management views the current high oil price environment as a significant tailwind, noting that selling oil above hedge prices provides incremental upside despite non-cash mark-to-market losses. Operational stability is returning following January ice storms that accounted for over 300 net BOE per day of production impact across multiple fields. Management expects fiscal Q4 results to better reflect underlying earnings power as one-time adjustments roll off and recent acquisitions contribute more fully. The company anticipates 23 wells in the Haynesville and Bossier Shales to begin contributing to revenue and cash flow during the fiscal fourth quarter. A new workover program at Tex Mex is expected to increase production by an additional 100 net BOE per day by the end of fiscal Q4. Guidance assumes natural gas differentials at Jonah and other assets will return to historical levels following the warmest winter on record for the West Coast. The capital allocation framework remains focused on protecting the balance sheet and maintaining the $0.12 per share dividend, which is intended to be sustainable for multiple years. A $1.2 million one-time transportation adjustment at Delhi was triggered by an operator contract change dating back to 2024; this is now considered resolved. Reported net loss included $7.6 million in unrealized hedge losses due to the spike in crude oil prices following geopolitical tensions in Iran. Regional gas pricing at Jonah was impacted by a 'once in a 100 years' winter on the West Coast, which negatively impacted realized prices by approximately $3.39 per BOE. The company successfully divested $3.3 million of SCOOP/STACK mineral assets post-quarter to high-grade the portfolio into near-term cash-flowing opportunities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is actively evaluating the option to take production in-kind under the Joint Operating Agreement to potentially improve marketing terms. The shift from Denbury to Exxon as operator introduced trucking charges that were previously pipeline-based, contributing to the recent transportation adjustment. There are 12 gross wells in the SCOOP/STACK and 24 wells in the Haynesville/Bossier areas expected to provide data and production in the near term. Management noted that royalty data often lags by up to 180 days, but they expect these assets to provide high-margin additions to cash flow without incremental CapEx. The non-op market is currently tight with a 'dearth of availability,' making it a seller's market where returns are less attractive due to high competition. Evolution is finding better opportunities in 'bespoke' mineral deals where they can find dislocations and high-grade the portfolio through smaller, more liquid transactions. Management is not restructuring near-term hedges as it would be too expensive, but they are aggressively adding hedges for calendar 2027 at attractive levels above $70. The company retains approximately 30% unhedged crude exposure and 100% unhedged NGL exposure to capture upside from current price spikes.

HOUSTON, May 12, 2026 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced its financial and operating results for its fiscal third quarter ended March 31, 2026. Evolution also declared its 16th consecutive $0.12 cash dividend per common share, payable on June 30, 2026, marking its 51st consecutive quarterly cash dividend payment. Financial & Operational Highlights Fiscal Q3 production increased slightly year-over-year to 6,700 barrels of oil equivalent per day (“BOEPD”) from 6,667 BOEPD in the prior year period. Production remained stable during the quarter, as contributions from recent acquisitions partially offset weather-related disruptions and downtime. Adjusted Net Income (Loss) and Adjusted EBITDA were impacted by: $3.2 million in departure from the prior-year period differentials, including $1.2 million related to prior period adjustments at Delhi Field. $2.2 million in realized hedge losses. Downtime of over 300 BOEPD related to extreme weather conditions in January, optimization activities at certain facilities and unexpected equipment failures. With these issues resolved, production is substantially restored. Returned approximately $4.3 million to shareholders in the form of cash dividends during fiscal Q3. Evolution expects 23 wells tied to its Louisiana royalty acquisitions to begin producing in the near term, meaningfully driving revenue and cash flow contributions in fiscal Q4 2026 and onward. M&A Highlights Acquired mineral and royalty interests across multiple Louisiana parishes from December 2025 through March 2026, for a total consideration of approximately $5.0 million, primarily consisting of proved producing wells, drilled but not yet producing wells, and permitted locations. These transactions added approximately 350 net royalty acres (“NRA”), including 17 gross PDP locations as of quarter-end, and over 50 gross future locations, most of which is expected to begin producing in the near term, enhancing the Company’s inventory of capital-light assets. Subsequent to quarter-end, Evolution high-graded its minerals and royalties portfolio by agreeing to sell longer-dated locations and acquiring cash-flowing properties with near-term upside. Agreed to divest a portion of non-core, unproved, mineral acres from its SCOOP/STACK portfolio for total consideration of approximately $3.3 million. Acquired an additional 50 NRA in the heart of the Haynesville and Bossier Shales, consisting of PDP’s, DUCs, and near-term locations for approximately $0.5 million. Management Comments Kelly Loyd, President and Chief Executive Officer, commented: “We continued to make steady progress during the fiscal third quarter, with contributions from recent acquisitions supporting overall volumes across our diversified portfolio. The quarter included the effects of a combination of items that were either isolated, temporary, or one-time. As these have rolled off, we can already see the powerful effects of combining our long-life, low-decline legacy properties, our higher-margin portfolio additions, and our high-return, low-cost workover projects. As we look to the fiscal 4th quarter and beyond, we expect our underlying performance to reflect the portfolio's true earnings power. “Operationally, we made encouraging progress across our asset base, identifying impactful opportunities. For example, the TexMex assets offer meaningful near-term upside, with more than 100 net BOEPD of incremental production to be added by the end of our fiscal 4th quarter as ongoing optimization work is completed. At Chaveroo, since quarter-end, we have completed conversion of all but one of our wells from electric submersible pumps ("ESP") to rod pumps, as water production declined as projected, which should reduce operating costs and allow for longer run-times. These are just two of the many impactful optimization projects we are working on with our operators across the portfolio. “On the acquisition front, we continued executing on our mineral and royalty strategy. During the quarter, we expanded our Louisiana position in the Haynesville and Bossier Shales. These assets are being actively developed by operators in the area and provide capital-light exposure to substantial future development. We continue to see highly accretive bolt-on opportunities to build scale and expect contributions from these high-margin positions to grow over time as completion activity progresses with no additional development cost to the Company. We also agreed to divest non-core mineral acreage having more distant future development plans and reinvest into near-term opportunities with clearer visibility of revenue and cash flow contributions beginning in fiscal 2027. “Looking ahead, we remain committed to our long-standing capital allocation framework and believe we are well positioned to protect the balance sheet, support a dividend that we have maintained for more than 50 consecutive quarters, which we believe is durable through cycles, deploy capital where we see compelling risk-adjusted returns, and continue compounding long-term value for our shareholders.” Fiscal Third Quarter 2026 Financial Results Total revenues decreased 11% to $20.2 million compared to $22.6 million in the year-ago quarter. The change was driven primarily by an 11% decrease in average realized equivalent prices, partially offset by a slight increase in average daily production. The current quarter oil revenue at Delhi Field was materially impacted by a one-time $1.2 million prior-period adjustment for transportation charges, due to a new marketing contract entered into by the operator in December 2024 and not communicated to the Company until the current quarter. The Company is reviewing responses to these actions and is evaluating alternative marketing options going forward. During the current quarter, decreases in natural gas revenues were driven by unfavorable natural gas field differentials. At Jonah Field in particular, the historically warm winter on the West Coast led to differentials declining by $1.96 per Mcf on average compared to the year-ago period. Barnett Shale also experienced more unfavorable differentials than last year, declining by $0.90 per Mcf below the year-ago period. Lease operating costs (“LOE”) improved to $13.0 million compared to $13.4 million in the year-ago quarter. The decrease was primarily driven by the cessation of CO2 purchases at Delhi Field, partially offset by the addition of TexMex properties and initial workover and facility upgrades in the field. On a per-unit basis, LOE was $21.49 per BOE compared to $22.32 per BOE in the year-ago quarter. The addition of our recently acquired Oklahoma and Louisiana Minerals properties contributed to the lower per-unit LOE as they provide a higher-margin asset base with no lifting costs. Depletion, depreciation, and accretion expense was $5.3 million compared to $5.0 million in the year-ago period. On a per-BOE basis, the Company’s current quarter depletion rate was $8.13 per BOE, compared to $7.68 per BOE in the year-ago period. General and administrative (“G&A”) expenses (excluding stock-based compensation) remained flat at $1.9 million for each period. On a per-BOE basis, G&A (excluding stock-based compensation) was $3.11 compared to $3.22 in the year-ago period. The Company reported net loss of $8.9 million, or ($0.26) per diluted share, compared to net loss of $2.2 million, or $(0.07) per diluted share, in the year-ago period, primarily driven by unrealized losses on future period hedges extending into calendar 2027. Excluding the impact of selected items, which include losses on the unrealized portion of hedges, the Company reported adjusted net loss of $2.9 million, compared to adjusted net income of $0.8 million in the year-ago period.(1) Adjusted EBITDA was $3.1 million compared to $7.4 million in the year-ago quarter. The decrease was primarily due to historically high unfavorable natural gas field differentials, the aforementioned prior-period adjustments at Delhi, and realized losses on derivative contracts, compared to the prior-year period.(2) Production & Pricing Total production for the third quarter of fiscal 2026 increased slightly to 6,700 net BOEPD compared to 6,667 net BOEPD in the year-ago period. Total production for the third quarter of fiscal 2026 included approximately 1,967 barrels per day (“BOPD”) of crude oil, 3,644 BOEPD of natural gas, and 1,089 BOEPD of NGLs. The change in total production was primarily driven by production adds from the Company’s SCOOP/STACK Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025, partially offset by downtime at other fields. In January 2026, multiple fields were impacted by heavy ice storms and power outages, resulting in production shutdowns for multiple days. The Company’s average realized commodity price (excluding the impact of derivative contracts) decreased to $33.45 per BOE in fiscal Q3, compared to $37.60 per BOE in the year-ago period. The aforementioned Delhi prior-period adjustments reduced the Company’s average realized equivalent price for the quarter by approximately $1.90 per BOE. Compared with the prior-year period, unfavorable gas differentials at Jonah and Barnett reduced the Company’s average realized equivalent price for the quarter by approximately $3.39 per BOE. Operations Update The Company continued to expand its mineral and royalty position, completing two mineral acreage acquisitions in the Haynesville and Bossier Shales in Louisiana during fiscal Q3, following two similar acquisitions completed in fiscal Q2. The Company’s mineral acquisitions prioritize placing value on wells that are either currently producing or are expected to be producing within one year of purchase. We expect 23 wells to be brought online and meaningfully contribute to revenue and cash flow in the fiscal fourth quarter. At SCOOP/STACK, quarterly production was impacted by 64 BOEPD due to the winter storm in January. Additionally, there are 7 gross wells in progress and 12 gross wells on production that we are still waiting for first production data and revenue. Production from mineral and royalty interests acquired in August 2025 continued to contribute to overall volumes during the quarter, leading to a material increase of 27% in production and 24% decrease in LOE per BOE during the current fiscal quarter compared to the prior-year quarter. At Chaveroo, the January winter storm and gas interference on an ESP affected production by 30 net BOEPD for the quarter. Subsequent to quarter-end, we converted that well from ESP to a rod pump, and all but one of our 7 wells have now been converted to rod pumps. The Company expects to secure permits for its next drilling block, comprising six gross wells, before the end of the 4th fiscal quarter. At TexMex, oil production increased quarter over quarter due to a successful workover program at the end of the prior quarter. However, January winter storms not only impacted production but also caused power outages and surface equipment damage that required repairs. This led to higher expenses in the quarter. We expect TexMex to continue to improve substantially. Subsequent to quarter-end, we began a new workover program, which we expect will increase production by an additional 100 net BOEPD by the end of fiscal Q4. At the Williston Basin, production was down 32 BOEPD, due to downtime caused by the January winter storm and delays in crude oil trucking. Operations were quickly restored, and the field runtimes remain strong. At Barnett, quarterly production was heavily impacted by the winter storm, resulting in a decline of approximately 160 BOEPD. The impacts carried into February and were restored by March. At Delhi, the January winter storm outages impacted production for 6 days during the quarter. The CO₂ recycle compressor, which was down for most of the prior quarter, remained down for 40 days during fiscal Q3, negatively affecting production. These issues were resolved during the quarter, and we expect to see the benefits of a return to normal run times and restoring full CO₂ recycle capacity moving forward. Balance Sheet, Liquidity, and Capital Spending On March 31, 2026, the Company had cash and cash equivalents of $2.6 million, outstanding borrowings of $56.5 million, and $0.8 million in letters of credit outstanding under its Senior Secured Credit Facility, and a weighted average interest rate of 6.78%. Availability under the facility was $7.7 million, bringing total liquidity to $10.4 million. In the third quarter of fiscal 2026, Evolution paid $4.3 million in common stock dividends and incurred $1.6 million in capital expenditures. Evolution also deployed capital on royalty and minerals acquisitions in Louisiana. These cash outlays were partially offset by cash received from its SCOOP/STACK Minerals Acquisition due to purchase price adjustments associated with net cash flows between the effective date and closing date. Evolution also received net proceeds of $3.6 million, net of $0.1 million of offering costs paid, from the sale of shares of common stock under its At-The-Market equity sales agreement. The Company had total net cash provided by operating activities of $3.5 million for the quarter. Cash Dividend on Common Stock On May 11, 2026, Evolution's Board of Directors declared a cash dividend of $0.12 per share of common stock, payable on June 30, 2026, to common stockholders of record on June 15, 2026. This will be the 51st consecutive quarterly cash dividend on the Company's common stock since December 31, 2013. To date, Evolution has returned approximately $147.4 million, or $4.41 per share, back to stockholders in common stock dividends. Conference Call As previously announced, Evolution Petroleum will host a conference call on Wednesday, May 13, 2026, at 10:00 a.m. CT to review its fiscal third quarter 2026 financial and operating results. Participants can join online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=wK31ZL1A or by dialing (844) 481-2813. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through May 13, 2027, via the provided webcast link and on Evolution's Investor Relations website at www.ir.evolutionpetroleum.com. About Evolution Petroleum Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information. Cautionary Statement All forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "anticipate," "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement. Contact Investor Relations (713) 935-0122 [email protected] (1) Adjusted net income (loss) is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information. (2) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.

Evolution Petroleum (AMEX:EPM) held its third-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=wK31ZL1A Evolution Petroleum reported fiscal Q3 2026 financials with total revenues of $20.2 million, down 11% year-over-year, due to regional natural gas pricing dislocations and one-time transportation adjustments. Production stood at 6,700 boe per day, flat year-over-year despite weather-related disruptions and downtime, highlighting the portfolio's resilience. The company completed additional mineral and royalty acquisitions in Louisiana, with active development expected to contribute to future production. Challenges included $7.6 million in unrealized hedge losses due to crude oil price spikes and weather-related production disruptions. The company maintained its dividend for the 51st consecutive quarter, reflecting confidence in future cash flow, supported by a diversified asset portfolio. Management expects improved financial performance in Q4 2026 as temporary headwinds dissipate and recent acquisitions contribute more fully. OPERATOR Good morning and welcome to Evolution Petroleum Third Quarter 2026 Earnings Release Conference call. All participants are in a listen-only mode. Please also note today's event is being recorded at this time. I would now like to turn the conference over to Brandy Hudson, the, Investor Relations Manager. Please go ahead. Brandy Hudson (Investor Relations Manager) Thank you. Welcome to Evolution Petroleum's fiscal Q3 2026 earnings call. I'm joined today by Kelly Lloyd, President and Chief Executive Officer, Mark Bunch, Chief Operating Officer and Ryan Stash, Senior Vice President, Chief Financial Officer and Treasurer.. We released our fiscal third quarter 2026 financial results after the market closed yesterday. Please refer to our earnings press release. For additional information containing these results. You can access our earnings release in the Investors section of our website. Please note that any statements and information provided in today's call speak only as of today's date, May 13, 2026 and any time sensitive information may not be accurate at a later date.. Our discussion today will contain forward looking statements of management's beliefs and assumptions based on currently available information. These forward looking statements are subject to the risks, assumptions and uncertainties as described in our SEC filings. Actual results may differ materially from those expected. We undertake no obligation to update any forward looking statements. During today's call we may discuss certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income reconciliations to the most directly comparable GAAP measures are included in our earnings release. Kelly will begin with opening remarks followed by Mark with an operational update and then Ryan will review the financial results. After our prepared comments, the management team will open the call for questions. As a reminder, this conference call is being recorded. If you wish to listen to a webcast replay of today's call, it will be available on the Investors section of our website. With that, I will turn the call over to Kelly. Kelly Lloyd (President and Chief Executive Officer) Thank you Brandy and good morning everyone. Before walking through the quarter, I want to step back and provide some context on where we are as a company and how we are thinking about the path forward. Over the last seven years we have deliberately reshaped Evolution's portfolio, expanding beyond our legacy asset base into a more diversified capital efficient platform designed to generate durable free cash flow through commodity cycles. That has meant adding long life low decline assets such as Jonah and Barnett, expanding our non-operating working interest base through acquisitions like TexMex,, and most recently building a minerals and royalty platform that we believe can become a durable and growing component of our portfolio. The common thread across these decisions is the same building a business with long life assets, modest capital requirements, sustainable free cash flow and the ability to support our dividend while compounding per share value over time. That is the framework through which we evaluate every capital allocation decision and it is the lens through which I would encourage investors to evaluate our results, including in quarters like this one where reported results were impacted by items that do not reflect the underlying earnings power of the business. With that context, let me address the fiscal third quarter directly. This was a more challenging period than the second quarter and I want to be transparent about what drove the variance. A combination of isolated and largely non operational items weighed on our reported results, including regional natural gas pricing dislocations that impacted realized prices at Jonah and Barnett, a $1.2 million one time prior period transportation adjustment at Delhi related to changes made by the operator dating back to 2024, and weather related production disruptions across multiple fields during the January ice storms. These are not structural issues. They don't reflect any change in the underlying quality of our assets or our cost structure or our strategy. These were largely timing related and onetime in nature and we expect underlying performance to normalize as they roll off setting those items aside, what stands out to me is how the portfolio held up despite those headwinds. Production was essentially flat year over year at 6,700 boe per day, a result we view as a meaningful sign of resilience given the level of weather related disruption and downtime we experienced in the quarter. Contributions from our new acquisitions helped offset downtime and natural declines at certain assets, which is exactly the kind of portfolio level stability we have been working to build. This reflects the benefits of diversification across assets, commodities and operating partners. That diversification is not accidental. It is the direct result of the capital allocation discipline we have applied consistently over multiple years on our mineral and royalty program. We continued to make progress during the quarter. We completed two additional Louisiana Mineral and Royalty acquisitions targeting the Haynesville and Bossier shales, bringing the total consideration for our Louisiana minerals to approximately 5 million. These assets are being actively developed by operators in the area. operators in the area. Wells are being drilled and completed and we expect contributions from these positions to begin building as that activity translates into production. All of that to say the financial contribution from our minerals platform is still in early stages. However, the activity we see from operators gives us confidence that the production ramp we underwrote when we made these acquisitions is right on track. We will provide more specific updates as those results come through. As we move into the fiscal fourth quarter, we expect the picture to look meaningfully different. The prior period Delhi adjustment is behind us. The February gas dislocation at Jonah was a singular weather event.. Differentials are returning to more normal levels. The TexMex workover program is in its final phase and we expect that asset to be a more meaningful contributor as that work is completed. The combination of these factors alongside the continued ramp of our minerals and royalty assets gives us confidence that the fourth quarter will better reflect the underlying earnings power of this business. We expect to generate robust cash flow in the fourth quarter and beyond, which reinforces our continued confidence in the dividend. In addition, we believe the current commodity price environment provides incremental upside from here. On May 11th, our board declared our 51st consecutive quarterly dividend and 16th consecutive dividend at $0.12 per share, a milestone that reflects the durability of our underlying cash generation across a range of commodity environments. Our capital allocation framework has not changed Protect the balance sheet, support a dividend we believe is sustainable through cycles, and deploy capital where we see compelling risk adjusted returns. As always, dividends are paid at levels that are meant to be sustainable given the current outlook for multiple years to come. This portfolio has always been designed to withstand any ill effects of the odd difficult quarter, and it is this same framework that gives us confidence in what we expect to be a strong finish to fiscal 2026. Before I hand it over to Mark for more detail on our operations, I want to leave you with one final thought looking at the broader picture for commodity prices. In March of 2026, WTI oil prices reached their highest levels since 2022 and remain at elevated, although highly backwardated risk premium levels. The significant increase in forward oil commodity prices as of March 31st resulted in an unrealized loss on the mark to market value of our hedges for the quarter. Additionally, the large non cash loss associated with unrealized hedge losses was based off of a crude oil strip at the end of March where spot prices for WTI were over $100 per barrel. No one knows where WTI will be at 6:30, 2026, but where we sit today, we think that it is likely that the unrealized losses will show a reversal in the next quarter, although our unrealized gains and losses on hedges will fluctuate as forward commodity prices change. I sometimes think that people forget that selling oil for higher prices than our hedges is a really good thing. The current oil price environment will provide incremental upside in the fourth quarter as we expect to benefit from the higher pricing to the extent that prices exceed our applicable oil hedges. Additionally, our NGLs, which are priced as a percentage of crude oil, remain unhedged and should receive the full benefit of pricing as far as our natural gas hedges are concerned, we expect to realize a benefit as our hedges are priced at levels higher than current strip pricing. With that, I'll turn the call over to Mark. Mark Bunch (Chief Operating Officer) Thank you Kelly and good morning everyone. I will focus my remarks on key operational highlights from the quarter and encourage listeners to review our earnings, press release and filings for additional details across our asset base. Overall, our operations continued to demonstrate steady base performance across the portfolio during the quarter. The results were impacted by the weather related disruptions and one time items Kelly described. Now onto our assets at our Haynesville and Bossier Shales, we continue to build scale and are prioritizing value on wells that are either currently producing or expected to be producing within one year of purchase. To that end, we expect 23 wells to be brought online and meaningfully contribute to revenue and cash flow in the fiscal fourth quarter. At SCOOP/STACK, production from the mineral and royalty interest acquired in August 2025 modestly contributed to overall volumes during the quarter. Additionally, there are 7 gross wells in progress and 12 gross wells on production that we are still awaiting first production and revenue data. At Shavaru, production increased year over year reflecting the benefit of wells brought online over the past 12 months. The January winter storm and gas interference on the wells with ESPs decreased production by a 30 net boe per day quarter over quarter. Subsequent to quarter end, we converted one well from ESP to rod pump. Currently, all but one of our seven wells has now been converted to rod pumps. We continue to advance permitting for the next six wells. Expect to have those permits in hand before the end of fiscal 2026. At Tex Mex, oil production increased quarter over quarter due to a successful workover program at the end of the prior quarter. However, January winter storms not only impacted production but also caused power outages and surface equipment damages that required repairs. This led to higher expenses in the quarter. We expect Tex Mex to continue to improve subsequent to quarter end repair. We began a new workover program which we expect will increase production by an additional 100 net boe per day by the end of fiscal Q4. At Delhi, revenues were impacted by the one time prior period transportation adjustment Kelly described earlier, which is now behind us. The January winter storm outages impacted production for six days during the quarter and the CO2 recycle compressor which is down for most of the prior quarter, remained down for 40 days during fiscal Q3, negatively affecting production. These issues resolved during the quarter. Despite this, field level profitability remains strong supported by lower operating costs, reflecting the continued benefit of the cessation of CO2 purchases that concluded late in fiscal Q3 of last year. We expect production volumes to improve as operational stability continues. At Barnett, quarterly production was heavily impacted by the winter storm as well, resulting in a decline of approximately 160 boe per the impacts carried into February and restored by March. Across the portfolio, production was heavily impacted by the January winter storm and other downtime, accounting for over 300 net boe per day. However, these have been resolved during the quarter and we remain focused on maintaining operational flexibility, optimizing our cost structure and deploying capital where returns are most attractive. With that, I will turn it over to Ryan. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Thank you Mark and good morning everyone. As Brandy mentioned earlier, we released our earnings yesterday which contains more information on our results for today. I'd like to go through our fiscal third quarter financial highlights. In fiscal Q3 we had total revenues of $20.2 million down 11% year over year. The decrease in revenues was primarily driven by an 11% decline average realized equivalent prices partially offset by a slight increase in production volumes. The decline in pricing reflected regional natural gas pricing dislocations at Jonah and Barnett during the quarter, but especially in the month of February, as well as 1.2 million in one time prior period. Transportation adjustments at Delhi related to a new marketing contract entered into by the operator and dating back to December 2024. Net loss for the quarter was $8.9 million or $0.26 per diluted share compared to a net loss of 2.2 million or $0.07 per diluted share in a year ago period. This quarter was negatively impacted by $7.6 million in unrealized hedge losses due to the spike in crude oil prices with the war in Iran. Excluding the impact of selected items, including the unrealized hedge losses, adjusted net loss for the quarter was 2.9 million compared to 0.8 million in adjusted net income in the year ago period. Adjusted EBITDA was 3.1 million compared to 7.4 million in the prior year quarter, reflecting lower revenues due to historically unfavorable differentials, production downtime at many of our assets and realized losses on derivative contracts. More specifically, as it relates to differentials in Jonah, the winter differentials were the worst since we have owned the asset and the lowest in the past 10 years due to the warmest winter on record for the West Coast. Going forward, we would expect differentials at Jonah and our other natural gas assets to return to more historical levels. We estimate that the winter differentials negatively impacted our realized price per BOE by approximately $3.39 as compared to the prior year period. Lease operating expenses improved to 13 million or $21.49 per boe compared to $22.32 per boe in the prior year quarter. The decrease was primarily driven by reduced ad valorem taxes at Barnett Shale and the continued benefit of the cessation of CO2 purchases at Delhi, partially offset by the addition of the TexMex properties and incremental workover activity during the quarter. The addition of our royalty assets in Oklahoma and Louisiana have also contributed to higher margins and lower operating costs for our asset base. On the hedging front, we have continued to add additional hedges to comply with our credit facility covenants. Our ongoing goal remains to reduce downside commodity price risk and protect cash flow for our shareholder return strategy while preserving the maximum potential upside. This strategy can result in realized and unrealized losses on our hedges in some periods, such as the current quarter, but benefit us in other periods and will provide more predictable and stable cash flows over time. Turning to the balance sheet, as of March 31, 2026, cash on hand totaled $2.6 million. Borrowings under our credit facilities stood at 56 point with 0.8 million in letters of credit outstanding. Total liquidity including cash and available borrowing capacity was approximately 10.3 million, providing us with the flexibility to support our ongoing operations, capital allocation priorities and selective growth initiatives. During the quarter, we paid dividends totaling 4.3 million. As previously announced, the Board declared a quarterly cash dividend of $0.12 per share, reflecting our continued commitment to returning capital to shareholders. Overall, our asset base and balance sheet strength position us to continue returning capital to shareholders while selectively deploying capital into opportunities that we expect to be accretive over the long term, just as we have done over the past seven years. I'll now hand it back over to Kelly for closing comments. Kelly Lloyd (President and Chief Executive Officer) Thanks, Ryan. To sum it up, fiscal Q3 was a quarter shaped by temporary headwinds rather than structural weakness. The portfolio held up well at the asset level, our minerals and royalty strategy continued to advance and we maintained the dividend for the 51st consecutive quarter, which we believe speaks to the durability of our underlying cash flow. As these onetime items roll off and our recent acquisitions contribute more fully, we expect our results to better reflect the earnings power we have built in this business in the fiscal Q4 and thereafter. We look forward to updating you on our progress. With that, I'll turn it over to the operator to begin the Q and A session. OPERATOR Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Jeff Robertson with Water Tower Research. Please go ahead. Jeff Robertson (Equity Analyst) Thank you. Good morning, Mark at Delhi with the new crude marketing agreement that the operator entered into. Can you talk about how much flexibility evolution has to and whether you want to do any, as you alluded to in the press release, to do anything different with respect to marketing your equity production from that field? Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Hey, yeah, Jeff, I'm going to flip that actually. I know you asked me, but I'm going to flip it over to Ryan to answer. Yes. So that's part of the thing we've actually been kind of actively looking at and we do actually have a lot of flexibility in the JOA to take the production in kind, which we're actively looking at now. The one point I'll make on the actual changes is obviously it was a move from Denbury to Exxon. The ultimate contract with Plain hasn't changed that much other than they're now trucking where in the past they had a pipeline that, that went down. So that's really the biggest difference in kind of charges. But to directly answer your question, we're definitely looking at that and it's something that we're actively considering and we think we probably can do a little bit better than what they are in the market. Jeff Robertson (Equity Analyst) Ryan, in the second quarter and going forward, do you expect the GPT charges to be similar to what they were last year as opposed to obviously the. I'm sorry, in previous quarters as opposed to what they were in the. In your second fiscal quarter? Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Yeah, I mean In gathering there's, you know, there's nothing that's been out of the ordinary that I'm aware of in the past quarter. I mean those have been relatively constant. I mean there are some contracts we mentioned in the past, like you know, Barnett that is tied a little bit to natural gas pricing, so it will move a bit but overall it's more volume driven. Right. And so I wouldn't expect those to vary more much from his historical. Jeff Robertson (Equity Analyst) Can you talk about what kind of communications you're having from your operators with respect to any initiatives they might have to go out and do short cycle workover type projects or whether there are opportunities to bring wells back online to take advantage of the high oil prices we have. At least for next month. At least the next couple of months. Mark Bunch (Chief Operating Officer) Yeah. So Jeff, this is Mark and you know, yeah, our operators are all working towards that. In fact, we actually mentioned one in particular, you know, Tex Mex, they really accelerated their second round of workovers to bring things online in New Mexico largely because the prices went up. And so the timing was really good. So we speeded that up somewhat. So yeah, everybody's looking at, at making sure that they keep as much production, oil production on as possible. Kelly Lloyd (President and Chief Executive Officer) And Jeff, hey, this is Kelly. I'll just add on Mark's right across the board we're seeing it. And look, these are simple projects that are fast, right? Drilling takes longer to get on production. But if you do a workover that takes a week and things are back up producing, we evaluate these, these are very, very high return projects that can get done quickly and can be meaningful. So we've seen a lot of guys try to do that as much as they can. In Hamilton Dome, you're seeing activity increase Jeff Robertson (Equity Analyst) really across the board. And then lastly, before getting back in the queue, Kelly, can you speak to the state of both the non op market and the minerals market just given the volatility in commodity prices and what that means for trying to value transactions? Kelly Lloyd (President and Chief Executive Officer) Yeah, you know, it's interesting on the non-op side it's, I mean, I would almost argue it's kind of a dearth of availability. Like there isn't a whole lot that we've seen out there on the mineral side, again, you know, working with some folks that we, you know, have a whole lot of confidence and trust in, we've been able to do sort of, you know, if you want to call it customized, but deals we put together along with them and go execute on and minerals just in general, especially when you're able to build them in little onesies and twosies like we have been, they're more liquid and we can find real dislocations and opportunities which like I said, we and the folks we're working with have been doing a great job of finding those and we expect to see that continuing. There will be a flip but you know, at some point the non-op will come back in vogue and we'll start seeing better returns. But when you only have a couple deals and a bunch of people bidding on them, it just hasn't in the last couple quarters it really hasn't been super attractive. Thanks, I'll jump back in the queue. Thanks Jeff. PO FRAT Our next question comes from PO FRAT with Alliance Global Partners. Please go ahead. Thanks for taking my call. I'm trying to figure out what your run rate is for the June quarter. Right now you reported, you know, 6700 of boe. You talked about 300 boe of impact on production from storms and other things. Are you above 7,000 right now? It's a run rate for the June quarter or can you just help me calibrate that? Kelly Lloyd (President and Chief Executive Officer) Sure. Hey po, this is Kelly. Thanks for calling. Yeah, I think we made it clear I don't want to speak out of school or Ryan will slap me, but the 300 is almost substantially all back online and was starting to get there before the end of the quarter. And if there was anything left over, it's pretty much there now. We are well underway in our progress on adding about 100 net boe per day in Tex Mex. And we also have, you know, and I'll be a little cautious here, we have 12 wells in our royalty properties alone in the scoop stack that we know are on production. They have been completed. We just don't have data yet. Again in Oklahoma it can take a while. So we expect to get data where we don't want to aggregate. If we have no data, you don't want to. We have type curves but you need to actually get data before you put it on there. So we've got 12 wells that we're a part of there that we're going to get. We expect to get data on and be able to include in our fourth quarter results. Same thing with our Haynesville and Bossier shale assets. We've got 24 wells that we expect to get data on and have production from during the fourth quarter. We know that at least 20 of them have already been completed and others are sort of in process. So I can't really quantify that number. I mean I could guess off my type curve poe, but that wouldn't be appropriate. So again, we've got the 300 back online. We've got another 100 we fully expect and is in progress of working towards that Tex Mex plus additionals from new wells that we don't have data on that we're either already producing or getting there very shortly. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) So yeah, it's probably, this is Ryan. It's probably helpful just sometimes to remind you guys on how from the non-op perspective how it works. You know, we, you know, there are some wells in some areas we have real time data, but certainly not all across our portfolio. We won't probably really know true April production for another week or two until we actually start getting our revenue statements in from the month of April. Right. So as we sit today, you know, we still don't have actual revenue statements yet for April production. We have, we do know of some areas obviously, as Kelly said, and we do know things that have returned to normal, but we won't know for a fact like what production actually was for April yet. PO FRAT Yeah. And then, and from the royalty side, Poe, it's even more delayed just because you had your further removed from the operator. So those, almost those like in Oklahoma can be, you know, somewhat delayed, like by 180 days. So it's, you know, where we get information, we start applying and accruing for it, but sometimes we don't know about it until it actually comes on. Okay. And I, you know, I'm not going to hold you to any guesses, but is there, you know, it sounds like the Scoopstack you might get some data maybe two months would potentially hit the, hit the production for the June quarter and then the Haynesville and the Bossier is, you know, probably, you know, first quarter next year or the September quarter. But I guess a short question. What could potentially be the impact from Scoopstack if you do get the data in the, in the June quarter? Is it 50, 25? You know, sort of just. I'm not going to hold you to any guesses that you make, but just, I'm just trying to calibrate. I understand and, but I mean I, I don't think I'm comfortable speculating on that. Okay. I'm not going to beat the dead horseman. You talked about Chevro that, you know, the permits are potentially in place for the next six wells or the next pad there by the end of June. Do you think the operator there will pull the trigger in these in the September quarter or is it more, you know, December quarter with potential impact in calendar 27? Kelly Lloyd (President and Chief Executive Officer) So as you know, the operator there has undergone a merger and it is our understanding that they are prioritizing assets and coming up with scheduling. We're working with them closely and I would just, it's just too early to say at point, this exact point in time. But we are working on that and trying to get things scheduled as quickly as we can and to understand from our own, you know, capital needs exactly when this is going to work out. So I, you know, I don't want to, I don't want to speculate and answer for them. So I'm going to wait for that. We will update you when we know. How about that? PO FRAT Yeah, I guess though from a conceptual standpoint, those are shorter term, you know, shorter lead time. They're permitted. There's, you know, generally you can drill a lot quicker there than you can in other places, but. Okay. And then on Delhi, is there any legal, you know, recourse that you have? I mean, this is, you know, there's quite a delay between the time that the contract went in place and then, you know, it hit the quarter. Did I read in between the lines that you may have legal recourse? Kelly Lloyd (President and Chief Executive Officer) I'm officially not going to answer that. PO FRAT Okay, I think that's it. Thank you. I appreciate it. Thanks. Really appreciate it. Both. Thank you. OPERATOR Our next question comes from John Blair with Ascend Wealth Advisors. Please go ahead. John Blair Thanks. There's no L in there. That's Christmas time. Thank you. It's Bair Blair. Thanks. Appreciate your taking my call. And you touched on a number of aspects of my questions. Is it fair to say that add back, I mean this was a quarter, pardon the pun, but a really perfect storm. Right. All four, five of your areas impacted here, your comments are that the flow rates are back and so I'm just wondering, do you have any, was there any impact that is known as to flow rates or any reservoir damage, anything like that while these wells were shut in? Mark Bunch (Chief Operating Officer) No, this is. There weren't any damages. This is the typical thing we have happen in the wintertime when we have bad weather. So pardon me getting over a cold but you know, we do it like typically we see at Barnett, which is. It's the one that's slowest to come back, but it comes back. It just takes it a few weeks to get back, you know, up to full rate. Kelly Lloyd (President and Chief Executive Officer) I mean. Yeah. And back to your perfect storm. We had one area where a lightning strike blew up a tank battery. Right. I mean, yeah, again, all covered by insurance, all fixed but you know, caused downtime for sure. And then one thing, John, and this is Kelly, by the way. Thanks for calling. On the west coast we talk about some of the impacts of differentials from our Jonah gas and how far from normal it was. I mean, Ryan talked about it a little bit. I mean once in 100 years plus kind of winter. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) What did they draw on the west coast for gas, Ryan? I mean it was probably about 60, 65 BCF, which is pretty much the lowest I can find for a long period of time. Right. John Blair I was going to say it went the other way. I think not long after you purchased that property. So that was kind of another follow on question. I was going to say, okay, so you got impacted because of warmer winter, but if it's a more hotter or more severe summer and there's higher demand then this could flip the other way. Is that a fair way of looking at it? Kelly Lloyd (President and Chief Executive Officer) Yeah, for sure. So Ryan and I were doing some research on this on the west coast, right? It's not just California. Let's look at the whole west coast. When you have a good snowpack, right, A nice wet cold winter. In the summer months when it's hot, you get a lot of hydro. Hydro is the cheapest, best, easiest way for them to generate electricity. And it can be, you know, in a wet, cold winter it can be up to 50% of the power in some of those areas when you have no snowpack essentially and you're expecting no hydro. Ryan, I think your research showed it can use an extra 1.1 plus kind of BCF a day of natural gas usage. So there will be a bounce back effect that's to our favor on this during the summer. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Yeah, no, we think there's definitely potential for the differentials that we see right now in the summer months might be overstating kind of the potential high storage that we're going into right now in the injection season. So with kind of a normal to warm summer, although snowpack could set up for hopefully a little bit better demand on the summer heating, sorry summer cooling. John Blair And from what we're seeing out there now, California's in a pretty bad state given they have to import just about everything it seems whether it's energy from Asia since they've run off the industry internally, their water and their electric. So they're kind of in a bad spot there as far as I'm. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Yeah, and I don't see it. We talk about elevated storage there. I mean honestly they have so few days of coverage. I mean just happened this, this particular winter there was no sort of gas on gas competition because they didn't hardly use any gas. So it goes away and switches very quickly. It's very light storage relative to usage there. As a matter of fact, I would say out of all the regions of the country it has the least sort of storage relative to usage. So yeah, I mean they've got around, you know, assuming they wouldn't inject, which they will, they've got generally 30 days or less of storage based on typical demand out there, which is very low. They've also had storage come out of the system right over the past five years which has Kind of increased the volatility as you mentioned, John. I mean you know we're kind of, we're not benefiting from this winter, but we've definitely been a beneficiary of enterprise saying due to this volatility since we found the asset, we can't complain that much. John Blair Going back to Dalle for just a moment, is there any anticipation that that CO2 purchases will need to be resumed or ramped up anytime soon that could be impactful? Mark Bunch (Chief Operating Officer) John, this is Mark and no, they don't have any plans currently to purchase any additional CO2 and honestly with the reservoir work that we've done, we actually think CO2 utilization is probably improved by dropping the amount of code CO2 that's being put in the system. So we don't have any disagreements with it and it helps our operating costs John Blair A little disconcerting as I think it was referenced in an earlier caller there questioner, the kind of lack of communication that you've had with or by the operator. So hopefully in all areas you'll be able to somehow improve that communication and updates, you know, so that you're a little bit better aware what, what's going on and what to anticipate. I realize that as a non op it's perhaps a little more difficult, but still. Mark Bunch (Chief Operating Officer) Well we, John, just, just FYI on that, just so we really actually have a very good relationship with Exxon in my opinion for I've worked with Exxon before and it's, and you know, it's tough because there are, they're a big company and you know, big companies do different things differently. But we actually have a good relationship with them I think and they do talk to us. It's just, you know, they've had some difficult maintenance issues going on and you know, we treat them pretty much like the rest of our partners. And actually I'd say they're, they're definitely not the worst. So that's, you know, which is a big plus because I was kind of afraid they could have been. But we've been really happy with them, what they're doing. John Blair Okay, well that's good to hear. And I suppose that this field is kind of somewhat off their radar in the grand scheme of things for their size and so forth. So thanks very much for taking the calls. Thanks John. Nicholas Pope Our next question comes from Nicholas Pope with Roland. Please go ahead. Kelly Lloyd (President and Chief Executive Officer) Morning guys. Good morning. Nick. Kelly, you, I think you made a comment that the non op, the market for kind of non op assets has been, you know, a little tight right now. So I thought it was kind of encouraging. There's a. That you sold, was it 3.3 million of stacks non ops assets post, post quarter end. I'm curious, can I give you a little color on that? Yeah, that's exactly what I wanted. So go ahead. Yeah. So just to be clear, that is, it is scoop stack but it was from our minerals package. Right. If you recall, we paid 17 million before post effective date. What was the ultimate adjusted price? 6.16.1, 16.1 million for that package of royalties. But you know when you factor in the difference between effective date and closing date cash flows and we placed the vast majority of that on all the stuff we kept. Right. There were some locations that were again they could absolutely be viable home run candidates but they were further out in time. And so when we put most of our valuation work we front loaded that. So if you take that evaluation, which again we think has borne out to be a very good high return project at 16.1, if you knock another 3.2, 5. 3.3 off of that, it's an absolute home run. And so what do you do with that capital? Well, you go try to redeploy it, right. Sort of high grade that portfolio from stuff that again we think is good, it has value, clearly we sold it. But into stuff that is going to be completed in our opinion more near term and begin to add cash flows in the near term. So that was the sort of process behind that. Let's see if we can put some of these potentially longer dated to be completed stuff, flip that into stuff that we think is going to be more nearer term at also very attractive rates which we were buying at. So. So that was the process there, Nick. Nicholas Pope I mean I think it makes total sense. I mean it's. I think you've been active in the past at divestitures and it sounds like maybe the non op market is a bit of a seller's market right now just with the how quickly commodity prices have moved. Kelly Lloyd (President and Chief Executive Officer) Is there other opportunities? I mean is that something. I know you are always active kind of looking at your own assets and high grade and stuff. I mean is there other opportunities you think might be possible to divest here in the near term with some non op stuff? There are for sure, yes, there are a couple that I would say need Jeff Robertson (Equity Analyst) to sort of be seasoned a little more, but that could be very impactful. And then there's always little stuff on the margin that you could flip around with. So if I were modeling I probably wouldn't account for it. But it would call that, as the Cajun say, Lanyap. Right, got it. All right, Kelly, I appreciate the time. Thanks for the question. Thank you, Nick. Up next, we have a follow up from Jeff Robertson with Water Tower Research. Please go ahead. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) Thank you. Ryan, on Capex, do you have much visibility into the the rest of calendar 26 from your operating partners? No, I mean I think at this point, you know, it's going to be probably that we don't really own the scoop stack which is a majority as you know, kind of our capex other than Chevro. And at that, you know, we're not getting a lot of drill schedules unfortunately from them and we're seeing afes and activities but we don't have a ton of insight there as to how much capital. So we're not budgeting much more than we've probably spent this year right now. You know, we have, we'll come out with our official kind of 27 budget here probably on our next fiscal 27. That is on our next call. But at this point, no, we haven't seen a lot of activity or that we would know of really on the non op side right now. I will say as you know, obviously the activity we've talked about on the mineral side, I mean that doesn't impact our cap capital budget, which is the nice thing about it. So all those wells coming on for scoop Stack, you know, are not going to impact our capital budget. Thank you. I guess. And to that note, the mineral interest production that you talk about that should come on near term, should have a high margin addition to cash flow. Yep, absolutely. And yeah, we're excited about it. But it's again we're going to gain more info this quarter and even more going forward as we get more wells being completed over time. So again, very excited about that. Jeff Robertson (Equity Analyst) Thank you. OPERATOR Our next question is a follow up with John Baer from Ascend Wealth Advisors. Please go ahead. John Blair Thanks for taking the follow up here. Just a quick question. Are you looking at any adjustments or any ways that you can, you know, adjust your hedging program given the current elevated prices and whatever, is there any way that you can kind of high grade that? And my personal take is these prices. Even if, you know, some solution to the Persian Gulf Straits of Horboz thing was resolved, you got a long lead time to get all that cargo out of there. So I know the market response would probably try to reflect it. But given where we're at right now and all those uncertainties, are you looking at any doing any high grading of that catching program. Yeah, John, this is Ryan. So, you know, unfortunately in the near term, right, we definitely have looked at restructuring, but most of the restructuring opportunities would be things like converting our collars to swaps, which isn't really that beneficial to create upside given where the prices are. It'd be too expensive to take a lot of those swaps out or just take them off. What we are doing is we've taken the opportunity to start adding hedges in calendar 27. So we're able to get 70 plus swaps and floors in some instances with higher callers. And so those, those prices into calendar 27 are pretty attractive. Ryan Stash (Senior Vice President, Chief Financial Officer and Treasurer) So to us, you know, adding hedges out in the future at good prices is really what we're doing for the most part with this kind of spike. You know, the other point I'd make is, you know, while we do have, you know, we're not completely hedged out on our crude, right. So we've still got, you know, for this kind of our fiscal fourth quarter, at least 30% unhedged on the crude side, all of our NGO. So we definitely have upside there from, you know, the run and kind of the heavier parts of the barrel for the ngl. So we're still going to see some of that upside, as Kelly kind of mentioned in his comments. But you know, really near term there's not a lot of restructuring opportunities. We're just going to take advantage of adding stuff at 27. Very good. I think one of the big takeaways from what's been going on is domestic production. I think globally you're going to be looking at more cautiously at where you source your crude from. Right. So I think from that standpoint, being a domestic producer should be given a little bit of a premium perhaps, I don't know, but just kind of food for thought there. John Blair Thanks again for taking the question. Hi, John. Really appreciate your interest in your call and we agree. Yeah, I think good old USA is the place to be. So very good. OPERATOR This concludes our question and answer session. I would like to turn the call back over to Kelly Lloyd for any closing remarks. Kelly Lloyd (President and Chief Executive Officer) Yes, thank you. And thank you everybody for attending as we move forward. Like I said, we're excited about the future future here. So thanks again for your interest. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: EVOLUTION PETROLEUM (EPM): Free Stock Analysis Report This article Evolution Petroleum Reports Q3 2026 Results: Full Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. 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Constellation Energy Corporation CEG is expected to report its first-quarter 2026 results on May 11, 2026. The Zacks Consensus Estimate for revenues is pinned at $8.21 billion, indicating an increase of 20.92% from the year-ago reported figure. Image Source: Zacks Investment Research The consensus mark for earnings is pegged at $2.56 per share, indicating a year-over-year growth of 19.63%. The bottom-line estimate has gone up 1.19% over the past 60 days. Image Source: Zacks Investment Research Constellation Energy’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missed one and met in the remaining one, delivering an average surprise of 1.51%. Image Source: Zacks Investment Research Our proven model predicts a likely earnings beat for Constellation Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here as you will see below. Constellation Energy Corporation price-eps-surprise | Constellation Energy Corporation Quote Earnings ESP: The company’s Earnings ESP is +2.24%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Currently, Constellation Energy carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Some other stocks from the same sector that have the combination of factors indicating an earnings beat are Evolution Petroleum EPM, Nextracker Inc. NXT and Pedevco PED. EPM has a Zacks Rank #3, while NXT and PED carry a Zacks Rank #2 at present. EPM, NXT and PED currently have an Earnings ESP of +50.00%, +0.19% and +23.58%, respectively. Constellation Energy’s first-quarter earnings are expected to have benefited from rising demand from data centers, supported by its highly efficient nuclear fleet and diversified generation portfolio. Constellation Energy has continued to expand its renewable energy portfolio beyond nuclear power, further diversifying its generation mix to drive long-term earnings growth. Supported by a strong nuclear foundation and growing investments in renewables, the company remains well-positioned in an increasingly sustainability-focused energy market, with these efforts expected to have contributed positively to first-quarter results. The company continues to benefit from securing long-term power purchase agreements with major technology firms, ensuring a stable revenue stream. This is expected to have supported bottom-line growth in the first quarter. The company’s ongoing share repurchase program is expected to have enhanced shareholder value and might have supported first-quarter earnings by reducing shares outstanding at period end. In the past month, the stock has gained 11.1% compared with the industry’s growth of 9.5%. Image Source: Zacks Investment Research Constellation Energy is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 25.2X compared with the industry average of 22.64X. Image Source: Zacks Investment Research With its extensive carbon-free generation fleet and integrated energy supply and risk management services, Constellation Energy remains well-positioned to address rising demand across its service regions, support revenue growth and advance a more sustainable energy future. CEG’s investments in customer-focused energy solutions, including carbon-free and renewable energy certifications, are expected to have delivered solid returns and enhanced stakeholder value while enabling customers to meet emissions goals and manage energy costs more effectively. The company’s strategic investments and ongoing expansion of its renewable portfolio continue to support earnings growth, a momentum likely maintained in the first quarter. Considering Constellation Energy’s solid earnings growth expectations for the first quarter and rising demand for reliable clean energy, existing investors may continue to hold on to this stock. Given CEG’s premium valuation, prospective investors should approach the stock cautiously. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Constellation Energy Corporation (CEG) : Free Stock Analysis Report Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report Pedevco Corp. (PED) : Free Stock Analysis Report Nextracker Inc. (NXT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Magnolia Oil & Gas Corp (MGY) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.51 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.20%. A quarter ago, it was expected that this company would post earnings of $0.36 per share when it actually produced earnings of $0.37, delivering a surprise of +2.78%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Magnolia Oil & Gas Corp, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $358.51 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.98%. This compares to year-ago revenues of $350.3 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Magnolia Oil & Gas Corp shares have added about 41% since the beginning of the year versus the S&P 500's gain of 6%. While Magnolia Oil & Gas Corp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Magnolia Oil & Gas Corp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $371.73 million in revenues for the coming quarter and $2.80 on $1.47 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Evolution Petroleum (EPM), is yet to report results for the quarter ended March 2026. The results are expected to be released on May 12. This oil and gas company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 185.7% higher over the last 30 days to the current level. Evolution Petroleum's revenues are expected to be $22.97 million, up 1.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Magnolia Oil & Gas Corp (MGY) : Free Stock Analysis Report Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In its upcoming report, Evolution Petroleum (EPM) is predicted by Wall Street analysts to post quarterly earnings of $0.02 per share, reflecting no change compared to the same period last year. Revenues are forecasted to be $22.97 million, representing a year-over-year increase of 1.8%. The consensus EPS estimate for the quarter has been revised 185.7% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe. Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock. While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights. Given this perspective, it's time to examine the average forecasts of specific Evolution Petroleum metrics that are routinely monitored and predicted by Wall Street analysts. Analysts' assessment points toward 'Production - Average daily production' reaching 7270 barrels of oil equivalent per day. The estimate compares to the year-ago value of 6667 barrels of oil equivalent per day. Based on the collective assessment of analysts, 'Average price per unit - Natural gas liquids' should arrive at $26.32 . Compared to the current estimate, the company reported $32.28 in the same quarter of the previous year. The combined assessment of analysts suggests that 'Average price per unit - Natural gas' will likely reach $3.77 . The estimate is in contrast to the year-ago figure of $3.87 . The consensus among analysts is that 'Average price per unit - Crude oil' will reach $68.66 . Compared to the current estimate, the company reported $68.42 in the same quarter of the previous year. View all Key Company Metrics for Evolution Petroleum here>>> Evolution Petroleum shares have witnessed a change of +6.1% in the past month, in contrast to the Zacks S&P 500 composite's +11.4% move. With a Zacks Rank #2 (Buy), EPM is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Evolution Petroleum Corporation, Inc. (EPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research