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Dec 31, 2024
Evolution Petroleum Q2 2025 Earnings Report
Evolution Petroleum reported its fiscal second quarter 2025 results, with production increasing 10% year-over-year and a declared quarterly cash dividend of $0.12.
Key Takeaways
Evolution Petroleum Corporation reported a 10% year-over-year increase in fiscal Q2 production, reaching 6,935 BOEPD, driven by SCOOP/STACK acquisitions and new wells. Despite this, total revenues decreased by 4% due to a 12% decrease in average realized commodity prices, leading to a net loss of $1.8 million.
Fiscal Q2 production increased 10% year-over-year to 6,935 average barrels of oil equivalent per day (BOEPD).
Total revenues decreased 4% to $20.3 million, primarily due to 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 a net income of $1.1 million in the prior year.
Evolution declared its 46th consecutive quarterly cash dividend of $0.12 per common share for the fiscal 2025 third quarter.
Evolution Petroleum
Evolution Petroleum
Evolution Petroleum Revenue by Segment
Revenue by Segment
Crude oil Revenue
CapyFin.comNatural gas Revenue
CapyFin.comNatural gas liquids Revenue
CapyFin.com Forward Guidance
Evolution Petroleum is committed to driving long-term shareholder value through high-quality, low-decline assets, expanding drilling inventory, and maintaining a strong financial foundation. The company is evaluating multiple acquisition opportunities to enhance growth and cash flow generation.
Positive Outlook
- Continued above-average results from new wells in the SCOOP/STACK area.
- Excitement about new well proposals from several operators within existing acreage.
- Upcoming four gross wells (two net) in the second development block at Chaveroo, with two already drilled and the remaining two expected by early March.
- Expectation for all four Chaveroo wells to be completed and turned in line during fiscal fourth quarter.
- Commitment to driving long-term shareholder value through high-quality, low-decline assets and expanding drilling inventory.
Challenges Ahead
- Modest revenue decline and net adjusted loss in the current quarter.
- Operational issues and downtime at Chaveroo and Williston resulted in approximately 90 BOEPD lower production for the quarter (though resolved post-quarter).
- Lower commodity pricing, particularly for natural gas, was a main contributor to the revenue decline.
- Gas interference in downhole pumps at Chaveroo caused production to be down (though resolved).
- Compressor failure on a third-party-operated gathering system in Williston Basin caused temporary downtime and reduced natural gas/NGL sales.
Revenue & Expenses
Visualization of income flow from segment revenue to net income