Evolution Petroleum shares up after beating earnings expectations

Published 16/09/2025, 21:26
Evolution Petroleum shares up after beating earnings expectations

Investing.com -- Evolution Petroleum Corporation (NYSE:EPM) reported fiscal fourth quarter adjusted earnings that beat analyst expectations, driving shares up 5% as investors responded positively to the company’s financial performance despite revenue challenges.

The oil and gas producer posted adjusted earnings of $0.03 per share for the quarter ended June 30, 2025, exceeding analyst estimates of $0.00. Revenue came in at $21.11 million, slightly below the consensus estimate of $21.24 million and down 1% from $21.23 million in the same quarter last year. The company maintained production at 7,198 barrels of oil equivalent per day (BOEPD), essentially flat compared to 7,209 BOEPD in the year-ago period.

Evolution’s adjusted EBITDA increased 7% to $8.6 million compared to $8.0 million in the year-ago quarter, demonstrating the company’s ability to generate improved earnings despite commodity price volatility. The company benefited from its diversified energy portfolio, with oil accounting for 61% of revenue, natural gas 27%, and natural gas liquids 12%.

"Fiscal 2025 was a defining year for Evolution. We approximated company records in total production and in liquids production, maintained our quarterly dividend at $0.12 per share, and returned $16.3 million to shareholders," said Kelly Loyd, President and Chief Executive Officer.

The company declared a quarterly cash dividend of $0.12 per share, marking its 48th consecutive quarterly payment. Evolution also completed its largest minerals-only acquisition to date in the SCOOP/STACK for approximately $17 million in August 2025, adding about 420 net BOE per day.

Evolution’s realized commodity prices were mixed, with oil prices down 20% YoY to $60.82 per barrel and natural gas prices up 66% YoY to $2.76 per MCF. The company ended the quarter with $2.5 million in cash and $37.5 million in borrowings under its recently amended credit facility, which now has a $65 million borrowing base.

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