"Our first quarter reflected continued execution across a broad and diversified portfolio, underscoring the resiliency of our business model through commodity price cycles."
— Kelly Loyd
03Detailed Report
EPM
Company EPM
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 25, 2026
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Executive Summary
Evolution Petroleum delivered a cash-flow–constrained Q1 2026 with revenue of $21.3 million, a modest year-over-year decline driven by weaker realized oil and NGL prices, offset by a 43% increase in natural gas pricing. Net income of $0.8 million and EBITDA of $7.06 million reflected a portfolio that remains resilient across commodity cycles. The company closed its first minerals-and-royalties acquisition in SCOOP/STACK, expanding exposure to long-lived reserves with a capital-light profile and upside from future development across ~650 gross locations. Management reaffirmed a disciplined, dividend-focused strategy supported by a flexible capital framework and liquidity improvement from a credit facility expansion completed in fiscal 2025. Near-term execution is driven by integration of TexMex and the SCOOP/STACK mineral asset, with management signaling production uplift and unit-cost improvements as the quarter progresses. The favorable gas backdrop—gas revenues up 38% year over year and a 43% price rally in Henry Hub versus oil/NGL—combined with a diversified asset base and hedging program, underpins an ongoing ability to return capital to shareholders while pursuing accretive acquisitions. The company maintains capex guidance of roughly $4–6 million for 2026 and views the next 12–18 months as a period to realize accretive opportunities while maintaining financial strength and dividend sustainability.
Key Performance Indicators
Revenue
Increasing
21.29M
QoQ: -5.64% | YoY: 0.29%
Gross Profit
Increasing
8.20M
38.52% margin
QoQ: 97.19% | YoY: 37.28%
Operating Income
Decreasing
-85.00K
QoQ: -105.36% | YoY: -103.54%
Net Income
Decreasing
824.00K
QoQ: 137.82% | YoY: -33.28%
EPS
Decreasing
0.02
QoQ: 128.57% | YoY: -49.37%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $21.288 million in Q1 2026, vs. $21.9 million year-ago; QoQ decline driven by lower oil/NGL prices, offset by +43% gas price uplift. YoY revenue growth 0.29%, QoQ change -5.64%.
- Composition: Revenue mix 60% oil, 28% natural gas, 12% NGLs; average realized price $31.63/BOE.
- Profitability: Gross profit $8.201 million; gross margin 38.5%; operating income -$0.085 million; EBITDA $7.058 million (EBITDA margin ~37.85%); net income $0.824 million (net margin ~3.87%); basic/diluted EPS $0.02.
- Cash flow: Cash provided by operating activities $7.805 million; capex (drilling & completion) $1.9 million; operating cash flow $7.805 million; free cash flow -$12.881 million (reflects timing of capex/working capital; guidance for free cash flow to be more favorable as assets scale).
- Balance sheet and liquidity: Cash at period end $0.714 million; revolver borrowings $53.0 million; letters of credit $0.8 million; total liquidity ~ $11.9 million; total assets $169.131 million; total liabilities $100.0 million; stockholders’ equity $69.131 million.
- Dividends and shareholder returns: Cash dividends declared/payments of $0.12 per share, totaling $4.157 million in the quarter; cumulative shareholder returns ~ $139 million ($4.17 per share).
- Hedging: Hedge program remains >50% hedged, closer to ~70% for the next year; floors in the $3.50–$3.60 per MMBtu range for gas, ceilings up to about $5.00+; hedging designed to protect cash flow and dividend sustainability.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
21.29M
0.29%
-5.64%
Gross Profit
8.20M
37.28%
97.19%
Operating Income
-85.00K
-103.54%
-105.36%
Net Income
824.00K
-33.28%
137.82%
EPS
0.02
-49.37%
128.57%
Key Financial Ratios
Management Insights Available for Members
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