Evolution Petroleum Q2 2025 Earnings Report
Key Takeaways
Evolution Petroleum reported a decrease in total revenues by 4% to $20.3 million compared to $21.0 million in the year-ago quarter, driven primarily by a 12% decrease in average realized commodity prices. The company reported a net loss of $1.8 million, or $(0.06) per share, compared to net income of $1.1 million, or $0.03 per share in the year-ago period.
Fiscal Q2 production increased 10% year-over-year to 6,935 average barrels of oil equivalent per day (BOEPD).
$4.1 million was returned to shareholders in the form of cash dividends during the fiscal second quarter of 2025.
Three gross SCOOP/STACK wells were brought online during the quarter, with 8 wells currently in progress or permitted.
Subsequent to quarter end, the company completed drilling two of four gross wells in the 2nd Chaveroo Field development block and expects to finish drilling the remaining 2 wells in the block by early March.
Evolution Petroleum
Evolution Petroleum
Evolution Petroleum Revenue by Segment
Forward Guidance
The company remains committed to driving long-term shareholder value with pursuing high-quality, low-decline assets at attractive valuations, expanding drilling inventory, and maintaining a strong financial foundation. Multiple acquisition opportunities are being evaluated that have the potential to enhance the long-term growth strategy and further improve cash flow generation.
Positive Outlook
- Favorable near and long-term outlook for sustainable cash flow generation from a diversified asset base.
- 11th straight dividend at the rate of $0.12 per share for the upcoming quarter, payable March 31, 2025.
- Strong recovery throughout the natural gas futures curve and substantially improved natural gas price realizations to date.
- Oil and natural gas liquids pricing has remained relatively stable to slightly improved.
- Above-average results from new wells in the SCOOP/STACK area and new well proposals from several operators within the acreage.
Challenges Ahead
- Operational issues and downtime at Chaveroo and Williston resulted in approximately 90 BOEPD lower production for the quarter.
- Lower commodity pricing, particularly for natural gas, was the main contributor to a modest revenue decline and net adjusted loss.
- Chaveroo production for fiscal Q2 was down due to gas interference in the downhole pumps.
- A compressor failure on a third-party-operated gathering system caused temporary downtime for 30 days at the beginning of fiscal Q2 in the Williston Basin.
- Oil sales volumes were negatively impacted during the quarter due to delays in sales of oil at the end of December.