Evolution Petroleum (EPM) 13 Nov 242025 Q1 Earnings call transcript

Hello, and welcome to the Evolution Petroleum Fiscal First Quarter 2025 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to hand the call to Brandi Hudson, the company's Investor Relations Manager. Ma'am, please go ahead.

Thank you. Welcome to Evolution Petroleum's Fiscal First Quarter 2025 Earnings Call. Treasurer. We Kelly Operating and Senior after Officer; Chief Officer by Mark Executive Vice the today first Financial Chief fiscal Bunch, and and market joined closed Loyd, financial Chief President Officer; President, quarter yesterday. I'm XXXX our results released Ryan Stash, information refer Please additional our results. press earnings these to for release containing

of and accurate can today's may speak Please note website. access of section our call XXXX, XX, our You November later not today's any date, earnings information statements and Investors only information in release as at in the time-sensitive date. provided that any a be

as will Our in Actual filings. may These today statements. assumptions statements to our based differ of currently results those expected. forward-looking any materially contain obligation discussion uncertainties management's no forward-looking beliefs risks and We described forward-looking statements update to undertake are SEC information. available subject from on and assumptions

call, of call in update including release. certain comments. we be found will non-GAAP our During to discuss will provide GAAP Mark can opening measures, to comparable today's Ryan properties begin any overview highlights. maximizing relate strategy they measures closest on shareholder prepared answer these plans remarks, a our Kelly financial may measures of today's After Reconciliations with earnings EBITDA. will provide an adjusted to ongoing available returns, questions. team our and our our be that fiscal quarter and the will brief of first management the

As being a recorded. this reminder, is conference call

website. With will the Kelly. wish call, of of on to Investors today's it I to will webcast turn our available you listen the replay over If be section call a to that,

fiscal carried established everyone. morning, that to report you, fiscal first our in team the and the has Thank into of quarter pleased XXXX. Brandi, I'm momentum XXXX good

the commodity our exposure underscore of Our to volatility. portfolio our mitigate price quarter effectiveness strategy to and diversify results this strong financial

diversification benefited prices, volatile opportunities. As presents environment XXXX. from a natural gas both we efforts and our gas current the know, and natural challenges strong liquids as we've in all Despite oil of fiscal revenues energy market result

focus returns enabling Our with This areas fluctuations predictable steady, to value to key our risks, while for approach, in prioritize shareholders. maximizing allow strategy to is even managing on growth the aim us with amid commodity to prices. us adaptability thrive assets is that of our all

I'd Now QX. some highlight achievements fiscal like operational for to key

production wells are our stronger initial and a wells the Chaveroo, San the curves growth from of by XX% SCOOP/STACK, barrels increased production wells well of driven reaching revenue day, strategic as as oil Andres many predicted. than at Chaveroo. type acquisitions from both total well quarter, Similarly, returns generating net led and and testament X% in original per drilled horizontal expectations. both by Our to contributions to a our the increase oil production. efficient, there return X meeting high X,XXX our opportunities. is production year-over-year, by This the record are our in above At equivalent wells focus SCOOP/STACK positive expectations, on performing completed, supported higher These for our

These the partially month COX organic been offset resumed and initial in track as the multiyear drilled XXXX, we proceeding liquids record COX are cost. our that year last Delhi, to purchases diversify by purchase X of wells continue and which cash calendar schedule X Test be building As Operations will by planned further strong growth the to come we investments first enhancing of oil yield a benefit Site on on the a for result, production will on expect of impact remain with years be will for having strategic confident we strengthen executing on with production positive portfolio. are our year-end. on with flow initiatives track shareholders. At development revenue, our of and to our fiscal ExxonMobil

One Petroleum's through our a to long-standing is consistent returning shareholders commitment dividend value to proudest achievements of Evolution program.

in Additions in require generate This XXth quarter low-decline, And payment our be release, and by consecutive dividend marks minimal press the flows, our cornerstone our grow would testament to varying seen of as to portfolio remains and shareholder high-quality and returns assets for dividend our to made further delivering strategy dividend of per our conditions. to a a have sustain enhance dedication our we Chaveroo is consecutive dividend announced strength XXth these our reinforcing program. our our cash return. to $X.XX payment. CapEx on confidence steady through you like XX/XX approach SCOOP/STACK diversified of capacity a Supported stable share. This that market returns,

Looking ahead, by total long-term deployment. value remain and capital returns maximizing for disciplined through we on creating focused management strategic shareholders

asset our approach, cost dividend our strict decision regions, maintaining ensuring For controls every current in base, high-return steadfast remain supports our in we straightforward expanding that program. and

continue our natural to of a thrive with positioned assets conditions. oil and of portfolio We variety balanced gas to under market are well

We continue accretive assets to opportunities drive organic our in further to invest existing M&A will growth. also evaluate and

to record more Mark? we to our over best pursue our operations and the effectively our what's turn shows detail. review execute that continue for track to can shareholders. With that, call we Our fronts, in on Mark COO, I'll both Bunch,

our base. for focus and quarter my asset encourage operational highlights from remarks Kelly, and our release everyone. details press the additional morning, review to listeners will and across you, on earnings good Thank I key filings

QX wells company's online gross operators at the brought During ended. after additional X coming online with SCOOP/STACK wells the X quarter fiscal XXXX,

XXXX. going quarter-over-quarter the also the COX field, in of compressors Delhi, the another QX by XXXX. X from purchase for its preliminarily these wells being full pipeline to X during horizontal to have the fiscal about company QX Stash, fiscal we Williston the costs At will was October effective the affected brought Additionally, to the After and one quarter-over-quarter Production in QX. of X to of begin online. In our quickly Evolution been the the electrification COX Production was in to Production expected are the agreed drilling call horizontal happy that for fiscal XXXX. in COX financials additional participated electrification and wells months of that XXXX X COX early operations participate horizontal that impacted XX will wells purchases Ryan? up end in further block recycle were Evolution participate in on track through February Jonah the for October. In are working production our forward. few fiscal XX% successful has are Dome the block announce acquisitions, the acreage replacement by turn wells for maintenance wells restored Chaveroo down plans X the XXXX. high-volume gross preventive to early The limited more fields. With interest Basin, fiscal drilling has We're injection prior to review production agreed that operations our begin down. that, These expected CFO, QX due wells was XXXX. for quarter, lifting to Hamilton date at across in X a project in detail. resumed to Ryan going project since improve gross over I

everyone. and good Mark, morning, Thanks,

our we earlier, on released results. mentioned yesterday, information contains Brandi our which more As earnings

revenues ago $XX.X as of through and to our from and volumes the financial quarter to SCOOP/STACK revenues realized revenue the $X.X wells The there fiscal average for adjusted operations like in million, Net the materially compared million offset first partially price acquisition increase result XX% per well increase first in EBITDA by for costs as year Chaveroo production $X.X a the as million in drills prior the new X production prior drilled, increased QX, X% flow period, from decrease in and year primarily increased due to first to increased an year-over-year. to BOE. was to increased million had quarter our Cash also reduced Now go operating to up XX% $X.X fiscal quarter income million highlights. In year compared I'd period. $X.X from due the of we the to total primarily period. the

base. pandemic. of the we calendar natural pricing our mentioned, diverse the and asset lowest our As highlight the financial gas Kelly since environment XXXX, results COVID-XX adaptability In strength faced

maintaining we continued add facility, the which dividend. for to quarterly the flow benefited generate credit However, our positive and GAAP net multiyear quarter. of to of while meet terms continue fiscal we another QX, cash to EPS hedges In quarter our income

we for upside. Accordingly, goal the cash risk cash $X.XX in and in related assets in dividend development price shareholders of cash to and respect In $XX.X including hedging on dividends XX, expenditures, share acquisitions was on a with which of to to XX, record primarily ongoing program will we the stock additional revolving declared liquidity of of the cash the opportunities, and it quarter shareholder December $X.X date, December XXXX, XX, XXXX, add in We $X of at and reduce XXXX. per stock dividend market, SCOOP/STACK on of million, cash the Our in $XX.X hedges. potential This Board million per fields. With November monitor may downside our of payable returned shareholders commodity to presented maximum over and million hand facility, the strategic return, common back paid approximately million to on is quarterly outstanding Chaveroo the used Evolution current preserving Directors $X.XX stock XXth with QX, to the now the To fiscal common will hand to fund dividend and if back to mark ended continue closing has price million SCOOP/STACK quarterly under for credit $X.X and or total and level. million consecutive our the consecutive borrowings Evolution common comments. dividends. I'll the tenth capital equivalents. while share Kelly $XXX.X

QX and fiscal marked our Ryan. To portfolio was it strategic commitment disciplined start sum strong year, to by growth Thanks, the a management. up, to

natural While and a allowed to diversified base growth. in our we drive production gas consistent has environment, particularly us continue pricing, dynamic to revenue navigate asset market

also proving dedication moment Petroleum investments thank and quarter as our results take Evolution and recent ahead. I assets Our all continued positioning in shareholders are sustainable trust. hard high-quality, work us well their the as the quarters support a in this well to their for valuable entire low-decline to team want for for

Q&A to value that, turn I'll to Your on With over focused Thank the you it begin you. to the commitment is delivering we deserve. operator the crucial success and remain session. our

Bobby from Markets. comes [Operator question with Instructions] Brooks first Northland Today's Capital

through SCOOP/STACK end. mentioned to plan X So wells growth quarter bring gross well additional you online expectations and the the gross since having an how XX online in with on the went our brought those exceeded X 'XX the already fiscal is quarter,

just the cadence the discuss results? you your expectations XX the next last I one, on, on wells for was of in you And expect curious batch wells -- these online? maybe higher could now So your given are two, bringing

Yes.

they came type curve about -- are wells drilled the in what So that we projected. our

And We'll in drilling so we new results X from the of wise the January, same starting the sometime round expect here wells. wells. drill first

SCOOP/STACK. a on He's

I I'm you I talking answering -- be Are sorry. may the -- [indiscernible]. am about

Yes.

Bob, on we we On data. So answer to approximately your X average, than above the which have in have info acquisition is of that on, type have our wells they come more so XX% months far, question curve. wells

So we're with SCOOP/STACK, that. XX was so the very number In the pleased company-wide.

look, of expect and just to come have today. So today, SCOOP/STACK, what don't we We in. them know all more we

more. occur -- already again, do X the going are far. out we and expect sort more of right? X the that's we about. just said, to next typically been We fiscal already throughout are Well, do, X And notified drilled, notified we've year. Like that up those so spread have the But been have to We wells done, but pick the X all we've timing-wise. I

and Chaveroo. up be the XX that The would in make X in the Delhi X the wells other ones well

Okay. just go yes. sorry, And I'm any -- you

any probably So production can I notable. is thoughts acquisition strong that type there XX% assume to of that kind Is really as them type curve. using drill curve above insight versus resulting any I that wells anything technique above guess Obviously, this you That's conservative what But was? coming there just some it of there some -- some underwriting. is driving and -- to that type is of due any to that's -- in the is type mean, a bring or of I in these to online. can other your point acquisition outperformance specifically really technical?

doesn't real the their often the think seem in curves that little there's performance. it difficulty difference No, any in geology The the in a Delaware. type SCOOP/STACK changes more is I like than don't

we acquisition. more little certainly them. want type didn't difficult to And So when curves right, are -- we didn't hyper-aggressive -- reasonable we a type did be we the to And do. bit we on actually were want curve you're assessments make tried to

that was been evaluating like wells advertises foot, right? there, there. kind this that are But of for we're but successful. instance, Gulf got lateral getting we X,XXX some their it hope And when looks per port Bcf of X they They've

were yes, as conservative we want we to be. So little a

Yes.

In wells, there's we of bit lot those little fact, a be. a might data -- look we than the thought Gulf a have, but are better going yet, port they to were data of available like we that lot

again, was -- the a about around correct. Gulfport that -- So issue there of wells number. Yes. that were the data that but where in lot That's

gross clarity, that those you Got press that X that participate in it. number I release X and remarks, acreage, a -- you And well to wells in online? included new the guys XX mentioned you another SCOOP/STACK and follow-up, agree come gross want those in then are just just horizontal some gross on XX prepared get to

correct. Yes, that's

Got -- on What what touch we curious, a Chaveroo? was just expect what it. wells CapEx so working could uplift interest maybe those as And the we there you production? just is as expectations production like I the well? should in on then XX% of also, kind as -- should And expect look

about are so $X.X complete them. expectations about [ CapEx be of And million, X ] The are drilling Yes. XX. there'll

per expect XXX will uptick going per be barrels XXX the gross -- well. day per they're Oil. roughly So each [indiscernible]. you be -- barrels day to

net And about a XXX Yes. oil? day then to use, so barrels of

-- our usually XX% working would on the that about be Yes, net there. are out nets to interest

just then me. for And Got X last it.

just that -- as LOE you is guys' down guys there are Or shutdown? down in or that COX modeling because some well that you efficiency -- that came above COX? anything I what feel mostly the any just the achieved LOE the for. was costs well so mostly cost You operationally mostly Is gains have of or is no, pipeline driven there

a the The substantial. that miss big reason been you the had Not change, big on have purchases. would had COX

Dome become only thing shale and Delhi costs, lower, barrel per as is The the those kind SCOOP/STACK lifting have Bobby, from I bigger of like lower much talking mean just part a would I LOE and $XX wells XXs typically, of to see secondary, high sort being add, per Yes. barrel. production company, you our right, right? Hamilton of $XX whereas tertiary inherently have Chaveroo

down And drive that to -- time. so over that's could going ROE our

Congrats on the solid quarter.

from John Capital. The next with question comes ROTH White

might you on the give of don't guidance, give remainder solid like official a ballpark can for figure Congratulations I you know fiscal a but quarter. us look on what year? the CapEx

still had So a the number, we And for full year. kind of $XX million think we we John. fiscal good that's $XX.X think guided million still to

number say the $XX CapEx would I the year to full the total of -- $XX don't remainder right fiscal but around the the million of for you off year. that have should remainder So I my the to get head, top million

Global Jeff comes Partners. next Alliance The from with question Gramp

dig COX into or you I kind to have past, in COX that respect purchases. there's some expectations, Delhi past. operational those with will, the in and to curious been if the the or resuming curtailments was injections pauses I know of cadence curtailed

like? of So back think we that quarter kind wondering field line production Or kind accelerate make injections, Delhi you or should just response? looking once the a kind typical empirically, a Does trajectory what for of of the what's X? the production looking take to time about

bring from when back an quickly, start In rates. And the you in back production it to this being we brought recycle they month production a already the affected so past, saw as seen within on. increase anyway reasonably or injection see you've then start probably has happened, to

to a will going that. add be to just movement it So but upward. -- And this is

go that We will higher, expect overall or the but just rates our effect decline. then overall flat will be an

Yes.

during there really issues was we're right, The the frame are X So -- that compressor, COX, recycle that right? down. talking time about, the affected it

that's that volume. -- the a Yes. caused while, The and a down recycle and part of large for was reinjection

then line was the so So for COX. And also, we we reduced X months, didn't we volumes. delta had purchase down,

Yes.

the recycle So the July, back. end came at of

response a time we then with And saw immediate there. do we on, fairly a line, production being see response now with that. purchase the so expect Delta over back line to the positive And

Great.

So portion quarter next you of the would it's a expect see aggressive at of to it? that fiscal particularly some not say least to manifest

I think in, you in it would see come some next this of in fiscal -- quarter. the

Great.

well you kind you great Okay. the seller the to be then kind to are of question guys. M&A just [indiscernible] It for in respect with Perfect. spreads? general seeing, appetite deal terms a of And for what get both as flow my and of latest greatest guys as in there would terms follow-up, prospective of

Sure.

actually of are deals -- -- they now, coming we're think talked there. to who be potential talk. I seeing seem willing right So We've people to to deals a out lot

I think be it's looking a to pretty good time out there.

have I'm stuff front. We -- business time excited. a do. that going It's exciting we're in looking of as don't to like lots always And be say the So usual to anything it's we the hopper, we're not right at but acquirer think in we pretty now. I on

Yes. to of typically what Jeff, I have out mean you would expect I year-end. seen sellers we ahead try get say, would

So going on. launch some been processes still there and have ones some

a and seen are I mean, discussions that looking has encouraging. been So I right, seem [indiscernible] it Exxon seen activity our get with [indiscernible]. does the announced, from out to obviously, big in saw occur. And transactions like lot of X think brokers, assets a folks you've market. We

So to of going selling still time. a over come I mergers that's mean that down be large the to of lot there's think going some I out

going trigger and we before it's mean, say, pull a sure highly always, on to to going we're look, Thanks, deal make the Jeff. as was accretive anything. I I

SCOOP/STACK, be we're to tell tend can curves type conservative. our on as we we always pretty acquisition you do. we scattering like So from But

The next Tower with from is question Water Jeff Research. Robertson

first your there standpoint? upcoming the be different drilling on at experience the on based Will -- horizontal wells wells? from will drilling with Mark, anything a do completion and Chaveroo, you

have produced substantially kind have fluid main the We're us probably on this doing. control be especially make cost the to upside have just we're we And because issues. the save to with time issue drilling And that loss. that's we drilling that water helps Yes. we it will where an cost of if going change for fluid, our if

know Oklahoma area. And I in mainly pretty by working that opportunities is in SCOOP/STACK, is have that add proposed? controlled incremental interest to wells you the all generally Do fragmented a the are operator? Or

Well, sometimes -- asked offers way going for all if that we additional we get get the time all to participate drilled. want you we where units to acreage in the get be were

doesn't the to small we we wells from add side, just time people working own to also that with. the acquisition aside we with We all offers operators interest or on that interest have get

that of pretty true. a It's marketplace. all is So active

And in there in than basis I the lastly, quarter went in quarters? you on a right, production while. And anything down. had unit think, went declined different experienced the the on after spreadsheets prior Was Barnett field, on Barnett costs, up the the the during for a Barnett in if a in my bit quarter Shale little having going what

the has better now. -- low been run was No. product very the mainly the are prices in Mainly, Barnett reduce so it just right since trying costs was to operator and active in times deal diversified,

one actively deals, bigger to ] as it's So I finally their lot I'd too. think as trying worked issues of guess say, a it of possible. [ keep I EnLink the They're there. has out through that, efficient

times. Barnett the run really what's They're that's system the for improved gatherer -- the for system. So our

X change offset of you those half it of think much the -- keep SCOOP/STACK the from in over lastly, of commodities with guess what first first to fiscal areas similar is, mix production was second I what round will the the other and quarter the what quarter? Will And about it the Basin. rest weighting of year, second in this each the new you fiscal in completion oil between the when XXXX, wells Delaware to in commodity half coming you mix -- what think saw Ryan,

time, I to over mean you're I a bit. little going think see

here And even more Chaveroo go that, maybe we're online, see keep come surprised meaningful and and SCOOP/STACK, until might we're whereas we higher, and start but the given bit we gas talking up, right, in XX% change going here a more drilled this affect I it. over which oil oil-weighted to over to X% like to mind could So move a more right continues wells a but we're little see if wells be getting go we've X% seen time more around prices, now, commodity right? can $X obviously wouldn't not or to online, change we see on of and prices that gas down winter if some areas the see some gas being the

about Overall of gas, SCOOP/STACK just honestly XX%, XX% oil XX% was reflective our company entire Exactly. about just NGLs. rest portfolio, the

our to concludes call for session. would now over question-and-answer turn like back remarks. the This Mr. closing to I Loyd

and just we taking the a to time, today everybody want veterans for there on your continued appreciate out support of belated and all We veterans our Monday. do thank really happy to

So everybody. thanks again,

now presentation. The conference today's concluded. you has for attending Thank

may disconnect You your now lines.