Evolution Petroleum Corporation (EPM) Market Cap
Evolution Petroleum Corporation has a market capitalization of $144.6M.
Financials based on reported quarter end 2025-12-31
Price: $4.13
▼ -0.10 (-2.36%)
Market Cap: 144.57M
AMEX · time unavailable
CEO: Kelly W. Loyd
Sector: Energy
Industry: Oil & Gas Exploration & Production
IPO Date: 1996-04-11
Website: https://www.evolutionpetroleum.com
Evolution Petroleum Corporation (EPM) - Company Information
Market Cap: 144.57M · Sector: Energy
Evolution Petroleum Corporation, an oil and natural gas company, engages in the development, production, ownership, and management of oil and gas properties in the United States. The company holds interests in a CO2 enhanced oil recovery project in Louisiana's Delhi field. Its Delhi Holt-Bryant Unit covers an area of 13,636 acres located in Northeast Louisiana. The company also holds interests in the Hamilton Dome field covering 5,908 acres located in Wyoming; and Barnett Shale field covering an area of 123,777 acres located in North Texas. Evolution Petroleum Corporation was founded in 2003 and is based in Houston, Texas.
Analyst Sentiment
Based on 4 ratings
Analyst 1Y Forecast: $5.15
Average target (based on 2 sources)
Consensus Price Target
Low
$5
Median
$5
High
$5
Average
$5
Potential Upside: 24.7%
Price & Moving Averages
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Management highlighted strong operating leverage: adjusted EBITDA +41% YoY to $8.0M despite revenue only +2% to $20.7M, and LOE fell to $16.96/BOE ($11.5M total). The call tone is confident around minerals/royalty accretion (SCOOPSTACK conversions now producing; Haynesville-Bossier ramp starting in Q3 with zero prior-quarter impact). However, the Q&A exposed operational uncertainty that tempers the optimism. For Delhi, CO2 compressor downtime limited injection for most of the quarter, and management explicitly said it’s “really hard to quantify” when/how production will return (no confirmation of a 600 bbl/day target). Barnett LOE benefits also reflect a one-time annual accrual true-up (Advo), with expectations that future quarters won’t stay as low. Analyst pressure focused on durability of LOE reductions and production recovery—key areas where visibility is currently limited.
Growth Catalysts
- SCOOPSTACK mineral/royalty conversion: 3 wells converted to producing during the quarter; 16 additional wells in progress supporting incremental high-margin production
- Haynesville-Bossier mineral & royalty assets: ramp expected over next few quarters (late-Dec/Jan closings had zero impact in the just-ended quarter)
- Operational cost and uptime improvements: operating margin gains from lower costs and better uptime across several assets
- Chavaroo optimization: transitioned all but 2 wells from electric submersible pumps to rod pumps, stabilizing production and trending ~5% above initial expectations
Business Development
- Haynesville-Bossier shale mineral and royalty acquisitions (expect meaningful contributions starting Q3)
- SCOOPSTACK minerals/royalty activity funnel (multiple wells moving to sales or drilling/completions even ahead of schedule)
- Mineral/royalty acquisition network approach with partners (tailored offers aligned to desired reserve categories; no specific names disclosed on the call)
Financial Highlights
- Adjusted EBITDA up 41% YoY to $8.0 million while revenue up only 2% YoY to $20.7 million (implies strong operating leverage)
- Net income: $1.1 million ($0.03 diluted EPS) vs net loss of $1.8 million ($0.06 EPS) in year-ago quarter
- Lease operating expense (LOE): $11.5 million and $16.96/BOE vs $20.05/BOE prior year quarter (major per-unit improvement)
- Revenue drivers: +6% production volumes and higher realized natural gas prices; offset by lower oil/NGL pricing
- Liquidity: cash $3.8 million at 12/31/2025; credit facility borrowings $54.5 million; total liquidity ~$13.5 million vs $11.9 million last quarter
- Dividends: paid $4.2 million during the quarter; board declared $0.12/share quarterly cash dividend
- Hedging: continued adding swaps/collars for oil and gas to reduce downside while preserving upside; monitoring for additional hedge opportunities
Capital Funding
- Dividend payout: $4.2 million in the quarter; quarterly dividend set at $0.12/share
- No buyback disclosed
- Debt: credit facility borrowings $54.5 million as of 12/31/2025; cash $3.8 million
- Capital/CapEx guidance (range): $4 million to $6 million through June 30 (still consistent per CFO)
Strategy & Ops
- SCOOPSTACK: legacy working interest steady with 3 additional wells in progress; mineral/royalty ramp includes 3 wells converted to producing and 16 more wells in progress
- Chavaroo: ESP-to-rod pump conversion (all but 2 wells) improved lifting efficiency, reduced downtime, stabilized production; field performance trending ~5% above initial expectations
- TexMix: LOE/production improvement tied to transition completion and catch-up workovers; goal to reach ~$1/BOE ‘Williston run’ level; disclosed 14 workovers at TexMex with ~$0.2–0.3 million net to EPM and ~80 net barrels/day of oil from those workovers (spread across the quarter)
- Delhi: significant operational hurdle—equipment-related downtime from CO2 compressor issues limited injection volumes for most of the quarter; cessation of third-party CO2 purchases reduced operating costs; field profitability described as strong but production recovery quantification is difficult
- Barnett (LOE/accrual): Barnett cost volatility linked to Advo accrual true-up—bill came in below accrual, lowering current quarter Advel; expects Advel to decline but not as low as Q2
Market Outlook
- Haynesville-Bossier impact timing: essentially zero impact in the recently ended quarter; production ramp expected over next few quarters; PDP begins later and DUC conversions underway
- CapEx outlook: total fiscal CapEx expected between $4 million and $6 million until June 30
- Delhi production guidance precision constrained by compressor downtime and operational heat/injectivity constraints; management declined to confirm a specific return-to-rate (e.g., 600 bbl/day) due to quantification difficulty
Risks & Headwinds
- Delhi production uncertainty: CO2 compressor downtime limited injection volumes for much of the quarter; management indicated it is ‘really hard to quantify’ the full production effect and expected better clarity after downtime and summer season pass
- Delhi injection change complexity: plan involves recycled CO2 (management referenced ~84% recycled); management said they have ‘yet to see really the full results’ of how altered injection (voidage/water impacts) will play out
- Barnett LOE durability uncertainty: LOE reduction partly driven by annual Advo bill accrual being overstated; expects improvement but ‘probably not as low’ as this quarter; also expects offsets/other improvements could mask movement
- Natural gas differentials: realized natural gas pricing improved YoY but quarter impacted by wider regional differentials from mild winter conditions (calendar Q4)
- Data lag on royalty-side cost efficiency: CFO noted Haynesville-Bossier/royalty LOE improvements are not yet fully visible because data comes more slowly
Sentiment: MIXED
Note: This summary was synthesized by AI from the EPM Q2 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"EPM reported a revenue of $20.68M for the year ended December 31, 2025, reflecting a notable achievement in terms of income generation with a net income of $1.07M and earnings per share (EPS) of $0.0314. The company generated an operating cash flow of $5.43M but had a significant capital expenditure of $20.69M, impacting free cash flow. Total assets stood at $169.27M against total liabilities of $101.72M, resulting in total equity of $67.54M. EPM holds a negative net debt of $3.38M, indicating more cash than liabilities. However, market performance shows a year-to-date price appreciation of 23.90%, despite a one-year decline of 11.05% in share price. Regular dividends were paid, but the company faces capital challenges. The overall financial health shows signs of stress with ongoing capital expenditures and declining market value in the past year, warranting a cautious approach for investors looking into EPM."
Revenue Growth
Moderate revenue generation at $20.68M.
Profitability
Net income of $1.07M indicates profitability.
Cash Flow Quality
Operational cash flow is positive but overshadowed by high capital expenditures.
Leverage & Balance Sheet
Strong balance sheet with negative net debt.
Shareholder Returns
YTD price change positive at 23.90%, but 1-year change is negative.
Analyst Sentiment & Valuation
Consensus target price indicates potential for modest upside.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.