Evolution Petroleum Reports Fiscal Second Quarter 2026 Results and Declares $0.12 per Share Cash Dividend for the Fiscal Third Quarter

Material Improvement in Net Income and 41% Increase in Adjusted EBITDA to $8.0 Million

HOUSTON, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced its financial and operating results for its fiscal second quarter ended December 31, 2025. Evolution also declared its 15^th consecutive $0.12 cash dividend per common share, payable on March 31, 2026, marking its 50^th consecutive quarterly cash dividend payment.

Financial & Operational Highlights

_______________
(1)  "NM" means "Not Meaningful."
(2)  Adjusted Net Income 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.
(3)  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.

• Fiscal Q2 production increased 6% year-over-year to 7,380 barrels of oil equivalent per day (“BOEPD”), with oil increasing 8%, natural gas increasing 6%, and natural gas liquids (“NGLs”) increasing 7%.

• During the quarter, the Company benefited from higher realized natural gas prices, contributing to a 41% increase in Adjusted EBITDA to $8.0 million and a significant increase in Adjusted EBITDA margin to 39% compared to 28%.

• Returned approximately $4.2 million to shareholders in the form of cash dividends during fiscal Q2.
  

M&A Highlights

• Continued to expand the mineral and royalty platform, building out a growing network of industry partners that is enabling a consistent pipeline of tailored acquisition opportunities.

• In late December 2025 and January 2026, Evolution closed four mineral and royalty acquisitions in the prolific Haynesville-Bossier Shale natural gas play in Louisiana, for total estimated net consideration of $4.5 million, adding approximately 321 net royalty acres (“NRA”) to the Company's portfolio of assets.

• Combined, the four closed transactions added 13 gross, high margin producing royalty wells and added zero-cost drilling and completion exposure to:

  • 24 gross drilled, uncompleted wells ("DUCs")

  • 10 additional proved, undeveloped locations ("PUDs")

  • 10 probable locations

  • ~2.1 BCF of net proved reserves at current strip pricing

• These newly acquired assets are expected to pay back in under three years and enhance both near-and long-term cash flow, dividend coverage, and portfolio diversification.

Development Highlights

• Scoop/Stack development

  • Working Interests: three gross wells in progress and signed three additional authorizations for expenditures ("AFEs") for new wells during the quarter.

  • Mineral Interests (at zero additional capital costs): converted three gross wells to Proved Developed Production ("PDP") and have an additional 16 gross wells in progress.

• Transitioned from electric submersible pumps to rod pumps across the Chaveroo field, with five out of seven wells already converted.

  • Significantly improved lifting efficiency, reduced downtime and stabilized production, resulting in field performance trending approximately 5% above initial expectations, thereby boosting capital efficiency and long-term asset value.
    

Management Comments

Kelly Loyd, President and Chief Executive Officer, commented: “We are very pleased to deliver strong financial results for the quarter with a meaningful increase in profitability, supported by higher realized natural gas prices and improved results in the field, despite lower oil prices. Operationally, production was stable across the majority of our diversified asset base and lease operating expenses per BOE improved, reflecting continued execution in cost-control and efficiency.

“Looking ahead, we remain focused on a disciplined approach to capital allocation that balances sustainable shareholder returns with high conviction investment opportunities. In particular, we’ve been successful in growing a durable pipeline we expect will continue to provide attractive royalty and mineral prospects tailored to support long‑term dividend strength and production stability. We believe this continuous pipeline will allow us to be more consistent in our acquisition strategy, in addition to remaining highly opportunistic. This approach aligns with our goal of offering capital-efficient exposure to high-margin production, which we anticipate will be accretive to cash flow per share both now and in the future.

“Recent activity across our SCOOP/STACK minerals and newly acquired Haynesville-Bossier assets demonstrates this strategy in action. Several wells have turned to sales or entered drilling and completion operations ahead of schedule, driving incremental cash flow and accelerating returns. Our emphasis on assets with a blend of current production, near-term zero-cost drilling, and long-term upside has begun to yield tangible results.

“Our diversified, low-decline asset base and improving operational performance across the majority of our portfolio, provides strong resiliency throughout commodity price cycles. As always, we will continue to evaluate the most effective ways to deploy capital for long-term shareholder value.”

Fiscal Second Quarter 2026 Financial Results

Total revenues increased 2% to $20.7 million compared to $20.3 million in the year-ago quarter. The change was driven primarily by a 6% increase in production and a 22% increase in realized natural gas prices, partially offset by 16% and 12% lower realized oil and NGL prices, respectively.

Lease operating costs (“LOE”) improved to $11.5 million compared to $12.8 million in the year-ago quarter. On a per-unit basis, LOE was $16.96 per BOE compared to $20.05 per BOE in the year-ago quarter. The decrease was primarily driven by reduced ad valorem taxes at Barnett Shale and the cessation of CO₂ purchases at Delhi Field, partially offset by the addition of TexMex properties and initial integration and transition to the new operator.

Depletion, depreciation, and accretion expense was $5.9 million compared to $5.4 million in the year-ago period. On a per-BOE basis, the Company’s current quarter depletion rate was $8.15 per BOE, compared to $7.87 per BOE in the year-ago period, reflecting an increase in the depletion rate and a decrease in reserve volumes.

General and administrative (“G&A”) expenses, excluding stock-based compensation, remained flat at $2.0 million for each of the periods. On a per-BOE basis, G&A (excluding stock-based compensation) was $2.91 compared to $3.13 in the year-ago period. The decrease on a per unit basis is primarily the result of the increase in production for the current year.

The Company reported net income of $1.1 million, or $0.03 per diluted share, compared to net loss of $1.8 million, or $(0.06) per share, in the year-ago period. Excluding the impact of selected items, which include gains and losses on the unrealized portion of hedges, the Company reported adjusted net income of $0.3 million, compared to adjusted net loss of $0.8 million in the year-ago period.⁽¹⁾

Adjusted EBITDA increased 41% to $8.0 million compared to $5.7 million in the year-ago quarter. The increase was primarily due to increases in natural gas revenues and realized gains on derivative contracts, as well as reductions in lease operating costs compared to the prior year period.⁽²⁾

Production & Pricing

Total production for the second quarter of fiscal 2026 increased 6% to 7,380 net BOEPD compared to 6,935 net BOEPD in the year-ago period. Total production for the second quarter of fiscal 2026 included approximately 2,098 barrels per day (“BOPD”) of crude oil, 4,065 BOEPD of natural gas, and 1,217 BOEPD of NGLs. The change in total production was primarily driven by production from the Company’s Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025. In the current quarter, natural gas accounted for 36% of revenue, up from 29% in the prior year.

_______________
(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

The Company’s average realized commodity price (excluding the impact of derivative contracts) decreased slightly to $30.46 per BOE in Q2, compared to $31.78 per BOE in the year-ago period. These changes were primarily due to lower realized oil and NGL prices, partially offset by a 22% increase in realized natural gas prices.

Operations Update

The Company continued to expand its mineral and royalty position, completing two mineral acreage acquisitions in the Haynesville-Bossier Shale play in Louisiana during the quarter and an additional two subsequent to quarter end. 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.

At SCOOP/STACK, there was a material increase of 28% in production and 23% decrease in LOE per BOE during fiscal Q2 compared to the prior year quarter, primarily due to the closing of various mineral and royalty acquisitions.

At Chaveroo, production for fiscal Q2 increased year-over-year, benefiting from wells brought online over the past twelve months. The Company continues to advance permitting activities to support future development when commodity prices and oil market conditions improve.

At TexMex, a successful workover program and facility upgrades led to improved production during the quarter, and the Company expects additional optimization work to drive further gains in fiscal 2026. Production increases were partially offset by a one-time failure of a tank battery in Texas that was repaired and restored to service during the quarter.

At Delhi, production was impacted by equipment downtime during the quarter. However, field-level profitability remained strong, aided by lower operating costs. Sales volumes are expected to improve moving forward following the resolution of downtime issues in late January.

At Jonah and Barnett, natural gas volumes remained steady quarter-over-quarter, reflecting their low-decline profiles, and the Company realized improved pricing in both basins.

Balance Sheet, Liquidity, and Capital Spending

On December 31, 2025, the Company had cash and cash equivalents of $3.8 million, outstanding borrowings of $54.5 million, and $0.8 million in letters of credit outstanding under its Senior Secured Credit Facility, and a weighted average interest rate of 6.88%. Availability under the facility was $9.7 million, bringing total liquidity to $13.5 million. In the second quarter of fiscal 2026, Evolution paid $4.2 million in common stock dividends and incurred $0.9 million in capital expenditures. Evolution deployed capital on royalty and minerals acquisitions in Louisiana. These cash outlays were partially offset by cash received from its SCOOP/STACK Minerals Acquisition for net cash flows from the effective date to closing date. Evolution also received net proceeds of $1.0 million 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 $5.4 million for the quarter.

Cash Dividend on Common Stock

On February 9, 2026, Evolution's Board of Directors declared a cash dividend of $0.12 per share of common stock, payable on March 31, 2026, to common stockholders of record on March 16, 2026. This will be the 50^th consecutive quarterly cash dividend on the Company's common stock since December 31, 2013. To date, Evolution has returned approximately $143.1 million, or $4.29 per share, back to stockholders in common stock dividends.

Conference Call

As previously announced, Evolution Petroleum will host a conference call on Wednesday, February 11, 2026, at 10:00 a.m. CT to review its fiscal second quarter 2026 financial and operating results. Participants can join online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=xSmEDlK2 or by dialing (844) 481-2813. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through February 11, 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]

Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.

We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.

_______________
(1) The tax impact for the three months ended December 31, 2025 and 2024, is represented using estimated tax rates of 44.0% and 28.0%, respectively. The tax impact for the three months ended September 30, 2025, is represented using estimated tax rates of 30.7%. The tax impact for the six months ended December 31, 2025 and 2024, is represented using estimated tax rates of 38.9% and 31.4%, respectively. 
(2) Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner. 
(3) The impact of selected items for the three months ended December 31, 2025 and 2024, were each calculated based upon weighted average diluted shares of 34.0 million and 32.9 million, respectively, due to the net income (loss), excluding selected items. The impact of selected items for the three months ended September 30, 2025, was calculated based upon weighted average diluted shares of 33.7 million due to the net income (loss), excluding selected items. The impact of selected items for the six months ended December 31, 2025 and 2024, were each calculated based upon weighted average diluted shares of 34.0 million and 32.8 million, respectively, due to the net income (loss), excluding selected items.

_______________
(1)  Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
(2)  Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.