Evolution Petroleum Releases Fourth Quarter Results and Leads PRISM Oil and Gas Index

The PRISM Oil and Gas Index company Evolution Petroleum (EPM) has released its fourth quarter financial results. Overall, the report disappointed on most earnings metrics falling short of consensus. EPS was reported at $0.04 vs FactSet $0.06 with revenues of $12.2M vs FactSet $24.4M. Additionally, adjusted EBITDA was $8M vs FactSet $8.9M.

On June 30, 2024, cash and cash equivalents totaled $6.4 million and working capital was $5.9 million. Evolution had $39.5 million of borrowings outstanding under its revolving credit facility, which was used to fund the acquisitions of SCOOP/STACK, and total liquidity of $16.9 million, including cash and cash equivalents.

For its longer term outlook the company seeks to maximize total shareholder returns through efficient capital management, develop its current assets and evaluate M&A opportunities while exploring a potential expansion of its credit facilities for additional liquidity.

Kelly Loyd, President and Chief Executive Officer, commented, “Following our record year of natural gas production and revenue in fiscal 2023, this fiscal year we recognized the importance of balancing our portfolio. This helped reduce exposure to natural gas price volatility while increasing our ability to participate in organic growth of reserves and production. As a result, we generated record liquids revenues and production for the year and completed two transformative transactions that added 6.6 MMBOE of proved reserves, with the majority of the locations yet to be booked. We expect these acquisitions to meaningfully contribute to cash flow and further support our dividend-focused policy over the next ten years.”