Evolution Petroleum Reports Fourth Quarter and Full Year Fiscal 2024 Results and Declares Quarterly Cash Dividend for the Fiscal 2025 First Quarter

September 10, 2024

– Fiscal Q4 Revenues Up 17% Y/Y to $21.2 Million – 
– Fiscal Q4 Net Income Increases to $1.2 Million; Adjusted EBITDA up 72% Y/Y to $8.0 Million –

HOUSTON, Sept. 10, 2024 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) today announced its financial and operating results for its fiscal fourth quarter and full year ended June 30, 2024. Evolution also declared a quarterly cash dividend of $0.12 per common share for the fiscal 2025 first quarter.

Financial & Operational Highlights ($ in thousands)

 Q4 2024Q4 2023Q3 2024% Change
Q4/Q4% Change
Q4/Q3Average BOEPD7,209 6,484 7,20911%—%Revenues$21,227 $18,174 $23,02517%(8)%Net Income$1,235 $166 $289644%327%Adjusted Net Income(1)$1,093 $166 $978558%12%Adjusted EBITDA(2)$8,037 $4,672 $8,47672%(5)%Cash Flow from Operations$7,987$(447)3,364NA137%

 

(1)  Adjusted Net Income is a non-GAAP financial measure; see the “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measures.

(2)   Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the “Non-GAAP Information” section later in this release for more information, including reconciliations to the most comparable GAAP measures.

Participated in 3 new producing wells during the fiscal fourth quarter and 27 in fiscal 2024; 10 wells in progress subsequent to fiscal year-end.Returned $4.0 million to shareholders in the form of cash dividends during the fiscal fourth quarter of 2024 and $16.0 million for fiscal year 2024. The Company also declared its 44th consecutive quarterly dividend of $0.12 per common share, payable September 30th.Generated record oil revenues in fiscal year 2024.Generated record liquids (oil + NGLs1) revenue and production in fiscal year 2024.Proved oil reserves increased by 20% fiscal year-over-year.

Kelly Loyd, President and Chief Executive Officer, commented, “Following our record year of natural gas production and revenue in fiscal 2023, this fiscal year we recognized the importance of balancing our portfolio. This helped reduce exposure to natural gas price volatility while increasing our ability to participate in organic growth of reserves and production. As a result, we generated record liquids revenues and production for the year and completed two transformative transactions that added 6.6 MMBOE of proved reserves, with the majority of the locations yet to be booked. We expect these acquisitions to meaningfully contribute to cash flow and further support our dividend-focused policy over the next ten years.

“In Fiscal 2024, we added 300+ drilling locations in the SCOOP/STACK and 80+ drilling locations at Chaveroo, fundamentally strengthening and diversifying our organic growth portfolio. We participated in 22 SCOOP/STACK wells that, on average, are performing well above our original type curve projections. In Chaveroo, we partnered on our first 3 horizontal San Andres wells with early results exceeding our estimates. At Delhi, we worked with ExxonMobil to begin development of Test Site V with the first of 3 initial wells scheduled to be drilled by calendar year-end. This development drilling activity combined with the acquisition of SCOOP/STACK producing reserves enabled us to more than replace production despite the adverse impact of lower natural gas prices during the year.”

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1) Natural Gas Liquids.

Mr. Loyd concluded, “Looking ahead, we plan to continue executing our plans to deliver long-term shareholder value. We have diversified our asset base of long-lived, low-decline properties through acquisitions of proved developed reserves, bolstered with additional drilling locations, at attractive costs that were designed to support our dividend program, we expect, well into the future.”

Fiscal Fourth Quarter 2024 Financial Results

Total revenues increased 17% to $21.2 million compared to $18.2 million in the year-ago period. The improvement was driven by an increase in oil and NGL revenue, partially offset by lower natural gas revenue.

Lease operating costs (“LOE”) decreased to $11.4 million compared to $11.8 million in the year-ago period. On a per unit basis, total LOE decreased 13% to $17.39 per BOE compared to $20.02 per BOE last year. The decrease was driven by suspended CO2 purchases for the quarter due to maintenance on the pipeline that began in February 2024. CO2 purchases are expected to restart in the early second quarter of fiscal 2025.

Depletion, depreciation, and accretion expense was $5.3 million compared to $3.8 million in the year-ago period. On a per BOE basis, the Company’s current quarter depletion rate increased to $7.51 per BOE compared to $6.01 per BOE in the year-ago period due to an increase in depletable base related to the Company’s SCOOP/STACK acquisitions and capital development expenditures since the prior fiscal year, partially offset by an increase in proved reserves.

General and administrative (“G&A”) expenses decreased to $2.1 million compared to $2.3 million in the year-ago period. On a per BOE basis, G&A expenses were $3.22 compared to $3.84 in the year-ago period. The decrease was primarily due to a reduction in third-party consulting fees.

Net income increased 644% to $1.2 million or $0.04 per diluted share, compared to $0.2 million or $0.00 per diluted share in the year-ago period.

Adjusted EBITDA increased 72% to $8.0 million compared to $4.7 million in the year-ago period. The increase was primarily due to increased revenue and reduced operating costs from the year-ago period.

Production & Pricing

Total production for the fourth quarter of fiscal 2024 increased 11% to 7,209 net BOEPD compared to 6,484 net BOEPD in the year-ago period. Total production for the fourth quarter of fiscal 2024 was comprised of 2,088 barrels per day (“BOPD”) of crude oil, 3,945 BOEPD of natural gas, and 1,176 BOEPD of NGLs. The increase in total production was driven by the closing of the Company’s SCOOP/STACK acquisitions in February 2024 and production from an initial three wells in the Chaveroo oilfield in February 2024.

Average realized commodity price (excluding the impact of derivative contracts) increased 5% to approximately $32.36 per BOE compared to $30.80 per BOE in the year-ago period. Realized oil and NGL prices increased approximately 10% and 20%, respectively, over the prior year period. These increases were partially offset by a decrease of approximately 32% in realized natural gas prices compared to the year-ago period.

Operations Update

During the quarter, the Company’s operators turned-in-line 3 gross wells in the SCOOP/STACK with 10 additional gross wells in progress, and as of today, 7 of these 10 wells are currently producing. Additionally, Evolution has agreed to participate in 3 gross new horizontal wells across the acreage. Since the effective date of the acquisitions, 22 gross wells have been converted to Proved Developed Producing.

In the Chaveroo oilfield, Evolution plans to participate in fiscal 2025 for its full 50% working interest in four horizontal wells in Drilling Block 2. These operations are expected to begin in fiscal Q2 2025. The Company has preliminarily agreed to six additional horizontal wells in Drilling Block 3 that are estimated to begin in fiscal Q4 2025. The Company also purchased acreage in advance for Drilling Blocks 4 and 5, bringing the total number of Proved Undeveloped locations to 18, and expects to systematically participate in future development blocks. Future acreage costs are fixed at $36,000 per additional net horizontal well, spaced at approximately 160 gross acres per well.

Williston Basin production increased during the fiscal quarter due to a full quarter of natural gas and NGL sales from the ONEOK Grassland System, which came back online during the prior quarter.

At Delhi, production was affected during the quarter by field-wide power outages for 7 days combined with downtime from one of the CO2 recycle compressors, reducing CO2 injection volumes for most of the quarter. The compressor was replaced, and full CO2 recycling resumed in July 2024. The CO2 purchase pipeline was taken offline for preventative maintenance at the end of February 2024 and remained down through this quarter. The operator anticipates resuming CO2 purchases in the early second quarter of fiscal 2025.

Balance Sheet, Liquidity, and Capital Spending

On June 30, 2024, cash and cash equivalents totaled $6.4 million and working capital was $5.9 million. Evolution had $39.5 million of borrowings outstanding under its revolving credit facility, which was used to fund the acquisitions of SCOOP/STACK, and total liquidity of $16.9 million, including cash and cash equivalents. In fiscal Q4, Evolution paid $4.0 million in common stock dividends, repaid $3.0 million of borrowings under its revolving credit facility, and paid $2.5 million in capital expenditures.

During the quarter, the Company received cash payments totaling $5.0 million related to purchase price reductions from the SCOOP/STACK properties for net cash flows received during the period between the effective date of November 1, 2023, and the closing date.

Evolution believes its near-term capital spending requirements will be funded from cash flows from operations, current working capital, and borrowings as needed under its revolving credit facility.

Cash Dividend on Common Stock

On September 9, 2024, Evolution’s Board of Directors declared a cash dividend of $0.12 per share of common stock, which will be paid on September 30, 2024, to common stockholders of record on September 20, 2024. This will be the 44th consecutive quarterly cash dividend on the Company’s common stock since December 31, 2013. To date, Evolution has returned approximately $118.4 million, or $3.57 per share, back to stockholders in common stock dividends.

Conference Call

As previously announced, Evolution Petroleum will host a conference call on Wednesday, September 11, 2024, at 10:00 a.m. Central Time to review its fiscal year-end 2024 financial and operating results. To join by phone, please dial (844) 481-2813 (Toll-free) or (412) 317-0677 (International) and ask to join the Evolution Petroleum Corporation call. To join online, click the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=782c79My. A webcast replay will be available through September 11, 2025, via the webcast link above and on Evolution’s website at www.ir.evolutionpetroleum.com.

About Evolution Petroleum

Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Properties include non-operated interests in the following areas: the SCOOP/STACK plays of the Anadarko Basin in Oklahoma; the Chaveroo Oilfield located in Chaves and Roosevelt Counties, New Mexico; the Jonah Field in Sublette County, Wyoming; the Williston Basin in North Dakota; the Barnett Shale located in North Texas; the Hamilton Dome Field located in Hot Springs County, Wyoming; the Delhi Holt-Bryant Unit in the Delhi Field in Northeast Louisiana; as well as small overriding royalty interests in four onshore Texas wells. Visit www.evolutionpetroleum.com for more information.

Cautionary Statement

All forward-looking statements contained in this press release regarding the Company’s current expectations, potential results, and future plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as “believe,” “expect,” “plans,” “outlook,” “should,” “will,” and words of similar meaning are forward-looking statements. Although the Company’s expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading “Risk Factors” and elsewhere in our periodic reports filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update any forward-looking statement.

Our proved reserves as of June 30, 2024, were estimated by Netherland, Sewell & Associates, Inc., DeGolyer & MacNaughton, and Cawley, Gillespie and Associates, Inc., all worldwide petroleum consultants. All reserve estimates are continually subject to revisions based on production history, results of additional exploration and development, price changes, and other factors. Drilling locations are based on the Company’s internal estimates, which may prove incorrect, and actual locations drilled and quantities that may be ultimately recovered may differ substantially from these estimates. Factors affecting the scope of our drilling program will be directly affected by the decisions of the operators of our properties, availability of capital, drilling and production costs, availability of drilling and completion services and equipment, drilling results, agreement terminations, regulatory approvals and actual drilling results, including geological and mechanical factors affecting recovery rates. Estimates of reserves may change significantly as development of our oil and gas properties provides additional data.

Contact
Investor Relations
(713) 935-0122
ir@evolutionpetroleum.com

Evolution Petroleum Corporation
Proved Reserves as of June 30, 2024

Our proved reserves as of June 30, 2024, were estimated by our independent reservoir engineers, Netherland, Sewell & Associates, Inc., DeGolyer and MacNaughton and Cawley, Gillespie and Associates, Inc., all worldwide petroleum consultants.

The SEC sets rules related to reserve estimation and disclosure requirements for oil and natural gas companies. These rules require disclosure of oil and natural gas proved reserves by significant geographic area, using the trailing 12-month average price, calculated as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month period prior to the end of the reporting period, rather than year-end prices, and allows the use of new technologies in the determination of proved reserves if those technologies have been demonstrated empirically to lead to reliable conclusions about reserve volumes. Subject to limited exceptions, the rules also require that proved undeveloped reserves may only be classified as such if a development plan has been adopted indicating that they are scheduled to be drilled within five years.

           Oil Natural Gas NGLs Total Proved ReservesReserve Category (MBbls) (MMcf) (MBbls) (MBOE)Proved Developed Producing 7,746 66,627 5,065 23,917Proved Non-Producing 108 33 9 123Proved Undeveloped 3,956 11,249 1,914 7,745Total Proved 11,810 77,909 6,988 31,785

           Oil Natural Gas NGLs Total Proved ReservesAsset (MBbls) (MMcf) (MBbls) (MBOE)SCOOP/STACK 1,277 12,314 787 4,116Chaveroo Field 2,218 636 137 2,461Jonah Field 239 25,113 318 4,744Williston Basin 2,798 7,135 1,653 5,640Barnett Shale 78 32,711 2,452 7,983Hamilton Dome Field 2,182 — — 2,182Delhi Field 3,018 — 1,641 4,659Total Proved 11,810 77,909 6,988 31,785

Evolution Petroleum CorporationCondensed Consolidated Statements of Operations (Unaudited)(In thousands, except per share amounts)                Three Months Ended Years Ended June 30, March 31, June 30, 2024
 2023
 2024
 2024
 2023
Revenues              Crude oil$14,533  $10,982  $14,538  $53,446  $51,044 Natural gas 3,582   4,984   5,860   21,525   63,800 Natural gas liquids 3,112   2,208   2,627   10,906   13,670 Total revenues 21,227   18,174   23,025   85,877   128,514 Operating costs              Lease operating costs 11,408   11,818   12,624   48,273   59,545 Depletion, depreciation, and accretion 5,302   3,834   5,900   20,062   14,273 General and administrative expenses 2,114   2,263   2,417   9,636   9,583 Total operating costs 18,824   17,915   20,941   77,971   83,401 Income (loss) from operations 2,403   259   2,084   7,906   45,113 Other income (expense)              Net gain (loss) on derivative contracts (109)  —   (1,183)  (1,292)  513 Interest and other income 59   95   63   342   121 Interest expense (875)  (54)  (518)  (1,459)  (458)Income (loss) before income taxes 1,478   300   446   5,497   45,289 Income tax (expense) benefit (243)  (134)  (157)  (1,417)  (10,072)Net income (loss)$1,235  $166  $289  $4,080  $35,217 Net income (loss) per common share:              Basic$0.04  $—  $0.01  $0.12  $1.05 Diluted$0.04  $—  $0.01  $0.12  $1.04 Weighted average number of common shares outstanding:              Basic 32,679   32,618   32,702   32,691   32,985 Diluted 32,835   32,891   32,854   32,901   33,190 

Evolution Petroleum CorporationCondensed Consolidated Balance Sheets (Unaudited)(In thousands, except share and per share amounts)        June 30, 2024 June 30, 2023Assets     Current assets     Cash and cash equivalents$6,446 $11,034Receivables from crude oil, natural gas, and natural gas liquids revenues 10,826  7,884Derivative contract assets 596  —Prepaid expenses and other current assets 3,855  2,277Total current assets 21,723  21,195Property and equipment, net of depletion, depreciation, and impairment     Oil and natural gas properties, net—full-cost method of accounting, of     which none were excluded from amortization 139,685  105,781      Other noncurrent assets     Derivative contract assets 171  —Other assets 1,298  1,341Total assets$162,877 $128,317Liabilities and Stockholders’ Equity     Current liabilities     Accounts payable$8,308 $5,891Accrued liabilities and other 6,239  6,027Derivative contract liabilities 1,192  —State and federal taxes payable 74  365Total current liabilities 15,813  12,283Long term liabilities     Senior secured credit facility 39,500  —Deferred income taxes 6,702  6,803Asset retirement obligations 19,209  17,012Derivative contract liabilities 468  —Operating lease liability 58  125Total liabilities 81,750  36,223Commitments and contingencies     Stockholders’ equity     Common stock; par value $0.001; 100,000,000 shares authorized: issued and     outstanding 33,339,535 and 33,247,523 shares as of June 30, 2024     and 2023, respectively 33  33Additional paid-in capital 41,091  40,098Retained earnings 40,003  51,963Total stockholders’ equity 81,127  92,094Total liabilities and stockholders’ equity$162,877 $128,317

Evolution Petroleum CorporationCondensed Consolidated Statements of Cash Flows (Unaudited)(In thousands)                Three Months Ended Years Ended June 30, March 31, June 30, 2024
 2023
 2024
 2024
 2023
Cash flows from operating activities:              Net income (loss)$1,235  $166  $289  $4,080  $35,217 Adjustments to reconcile net income (loss) to net cash provided by operating activities:              Depletion, depreciation, and accretion 5,302   3,834   5,900   20,062   14,273 Stock-based compensation 552   484   549   2,137   1,639 Settlement of asset retirement obligations (1)  (55)  (19)  (20)  (174)Deferred income taxes (225)  (196)  766   (101)  (296)Unrealized (gain) loss on derivative contracts (170)  —   1,063   893   (1,994)Accrued settlements on derivative contracts (27)  211   94   67   (919)Other —   (1)  (3)  —   (4)Changes in operating assets and liabilities:              Receivables from crude oil, natural gas, and natural gas liquids revenues 1,824   1,958   (2,495)  (2,910)  18,441 Prepaid expenses and other current assets (137)  288   (1,151)  (1,562)  (692)Accounts payable and accrued liabilities and other (440)  (5,343)  (1,629)  374   (13,489)State and federal taxes payable 74   (1,793)  —   (291)  (730)Net cash provided by operating activities 7,987   (447)  3,364   22,729   51,272 Cash flows from investing activities:              Acquisition of oil and natural gas properties 5,054   —   (43,788)  (38,734)  (31)Capital expenditures for oil and natural gas properties (2,546)  (2,727)  (2,648)  (10,899)  (6,961)Net cash used in investing activities 2,508   (2,727)  (46,436)  (49,633)  (6,992)Cash flows from financing activities:              Common stock dividends paid (4,003)  (3,992)  (4,003)  (16,040)  (16,106)Common stock repurchases, including stock surrendered for tax withholding (113)  (187)  (818)  (1,144)  (4,170)Borrowings under senior secured credit facility —   —   42,500   42,500   — Repayments of senior secured credit facility (3,000)  —   —   (3,000)  (21,250)Net cash provided by (used in) financing activities (7,116)  (4,179)  37,679   22,316   (41,526)Net increase (decrease) in cash and cash equivalents 3,379   (7,353)  (5,393)  (4,588)  2,754 Cash and cash equivalents, beginning of period 3,067   18,387   8,460   11,034   8,280 Cash and cash equivalents, end of period$6,446  $11,034  $3,067  $6,446  $11,034 


Evolution Petroleum Corporation 
Non-GAAP Reconciliation – Adjusted EBITDA (Unaudited) 
(In thousands)

Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.

We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.

                Three Months Ended Years Ended June 30, March 31, June 30, 2024
 2023 2024 2024 2023
Net income (loss)$1,235  $166 $289 $4,080 $35,217 Adjusted by:              Interest expense 875   54  518  1,459  458 Income tax expense (benefit) 243   134  157  1,417  10,072 Depletion, depreciation, and accretion 5,302   3,834  5,900  20,062  14,273 Stock-based compensation 552   484  549  2,137  1,639 Unrealized loss (gain) on derivative contracts (170)  —  1,063  893  (1,994)Severance —   —  —  —  74 Transaction costs —   —  —  —  345 Adjusted EBITDA$8,037  $4,672 $8,476 $30,048 $60,084 

Evolution Petroleum CorporationNon-GAAP Reconciliation – Adjusted Net Income (Unaudited)(In thousands, except per share amounts)                Three Months Ended Years Ended June 30, March 31, June 30, 2024
 2023
 2024
 2024
 2023
As Reported:              Net income (loss), as reported$1,235  $166  $289  $4,080  $35,217                Impact of Selected Items:              Unrealized loss (gain) on commodity contracts (170)  —   1,063   893   (1,994)Severance —   —   —   —   74 Transaction costs —   —   —   —   345 Selected items, before income taxes$(170) $—  $1,063  $893  $(1,575)Income tax effect of selected items(1) (28)  —   374   230   (350)Selected items, net of tax$(142) $—  $689  $663  $(1,225)               As Adjusted:              Net income (loss), excluding selected items(2)$1,093  $166  $978  $4,743  $33,992                Undistributed earnings allocated to unvested restricted stock (22)  (3)  (21)  (96)  (540)Net income (loss), excluding selected items for earnings per share calculation$1,071  $163  $957  $4,647  $33,452                Net income (loss) per common share — Basic, as reported$0.04  $—  $0.01  $0.12  $1.05 Impact of selected items (0.01)  —   0.02   0.02   (0.04)Net income (loss) per common share — Basic, excluding selected items(2)$0.03  $—  $0.03  $0.14  $1.01                               Net income (loss) per common share — Diluted, as reported$0.04  $—  $0.01  $0.12  $1.04 Impact of selected items (0.01)  —   0.02   0.02   (0.03)Net income (loss) per common share — Diluted, excluding selected items(2)(3)$0.03  $—  $0.03  $0.14  $1.01 

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(1)   The tax impact for the three months ended June 30, 2024 and March 31, 2024, is represented using estimated tax rates of 16.4% and 35.2%, respectively. The tax impact for years ended June 30, 2024, and 2023, is represented using estimated tax rates of 25.8% and 22.2%, respectively.
(2)   Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner.
(3)   The impact of selected items for the three months ended June 30, 2024, and 2023 was calculated based upon weighted average diluted shares of 32.8 million and 32.9 million, respectively, due to the net income (loss), excluding selected items. The impact of selected items for the three months ended March 31, 2024, was calculated based upon weighted average diluted shares of 32.9 million due to the net income (loss), excluding selected items. The impact of selected items for the years ended June 30, 2024, and 2023 was calculated based upon weighted average diluted shares of 32.9 million and 33.2 million, respectively, due to the net income (loss), excluding selected items.

Evolution Petroleum CorporationSupplemental Information on Oil and Natural Gas Operations (Unaudited)(In thousands, except per unit and per BOE amounts)                 Three Months Ended Years Ended June 30, March 31, June 30, 2024 2023 2024 2024 2023Revenues:              Crude oil$14,533 $10,982 $14,538 $53,446 $51,044Natural gas 3,582  4,984  5,860  21,525  63,800Natural gas liquids 3,112  2,208  2,627  10,906  13,670Total revenues$21,227 $18,174 $23,025 $85,877 $128,514               Lease operating costs:              CO2costs$1 $1,348 $1,035 $4,242 $7,375Ad valorem and production taxes 1,273  1,158  1,458  5,281  8,158Other lease operating costs 10,134  9,312  10,131  38,750  44,012Total lease operating costs$11,408 $11,818 $12,624 $48,273 $59,545               Depletion of full cost proved oil and natural gas properties$4,925 $3,544 $5,532 $18,605 $13,142               Production:              Crude oil (MBBL) 190  158  199  709  659Natural gas (MMCF) 2,152  2,044  2,115  8,243  9,109Natural gas liquids (MBBL) 107  91  104  402  416Equivalent (MBOE)(1) 656  590  656  2,485  2,593Average daily production (BOEPD)(1) 7,209  6,484  7,209  6,790  7,104               Average price per unit(2):              Crude oil (BBL)$76.49 $69.51 $73.06 $75.38 $77.46Natural gas (MCF) 1.66  2.44  2.77  2.61  7.00Natural Gas Liquids (BBL) 29.08  24.26  25.26  27.13  32.86Equivalent (BOE)(1)$32.36 $30.80 $35.10 $34.56 $49.56               Average cost per unit:              CO2costs$— $2.28 $1.58 $1.71 $2.84Ad valorem and production taxes 1.94  1.96  2.22  2.13  3.15Other lease operating costs 15.45  15.78  15.44  15.59  16.97Total lease operating costs$17.39 $20.02 $19.24 $19.43 $22.96               Depletion of full cost proved oil and natural gas properties$7.51 $6.01 $8.43 $7.49 $5.07               CO2costs per MCF$0.87 $0.91 $0.92 $0.97 $0.99CO2volumes (MMCF per day, gross) 0.1  68.2  52.1  50.3  85.2

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(1)   Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
(2)   Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.

Evolution Petroleum CorporationSummary of Production Volumes, Average Sales Price, and Average Production Costs (Unaudited)                   Three Months Ended June 30, March 31, 2024 2023 2024 Volume Price Volume Price Volume PriceProduction:                 Crude oil (MBBL)                 SCOOP/STACK 41 $80.55  — $—  30 $78.71Chaveroo Field 12  79.82  —  —  15  76.39Jonah Field 8  72.14  9  77.87  8  72.25Williston Basin 35  74.20  34  70.31  35  70.29Barnett Shale 2  75.70  3  69.37  3  73.05Hamilton Dome Field 35  67.85  37  60.53  35  61.21Delhi Field 57  80.46  74  73.01  73  77.08Other —  —  1  75.07  —  —Total 190 $76.49  158 $69.51  199 $73.06Natural gas (MMCF)                 SCOOP/STACK 319 $2.70  — $—  214 $2.11Chaveroo Field 5  2.02  —  —  7  2.29Jonah Field 818  1.59  881  3.16  843  3.94Williston Basin 31  1.65  23  2.99  20  1.36Barnett Shale 979  1.39  1,140  1.87  1,031  1.98Total 2,152 $1.66  2,044 $2.44  2,115 $2.77Natural gas liquids (MBBL)                 SCOOP/STACK 20 $22.16  — $—  10 $25.14Chaveroo Field —  —  —  —  1  22.86Jonah Field 8  30.35  9  25.80  9  31.93Williston Basin 8  23.94  5  15.00  4  23.96Barnett Shale 54  31.29  61  24.52  59  22.85Delhi Field 17  31.83  16  24.65  20  30.48Other —  —  —  —  1  25.87Total 107 $29.08  91 $24.26  104 $25.26                  Equivalent (MBOE)(1)                 SCOOP/STACK 115 $40.29  — $—  76 $40.56Chaveroo Field 13  77.49  —  —  17  68.40Jonah Field 152  13.98  165  22.60  158  26.72Williston Basin 48  59.33  43  59.57  42  61.15Barnett Shale 219  14.86  254  15.15  234  15.41Hamilton Dome Field 35  67.85  37  60.53  35  61.21Delhi Field 74  69.34  90  64.69  93  67.21Other —  —  1  75.07  1  25.87Total 656 $32.36  590 $30.80  656 $35.10                  Average daily production (BOEPD)(1)                 SCOOP/STACK 1,264     —     835   Chaveroo Field 143     —     187   Jonah Field 1,670     1,813     1,736   Williston Basin 527     473     462   Barnett Shale 2,407     2,791     2,571   Hamilton Dome Field 385     407     385   Delhi Field 813     989     1,022   Other —     11     11   Total 7,209     6,484     7,209   

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(1)   Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.

Evolution Petroleum CorporationSummary of Average Production Costs (Unaudited)                   Three Months Ended June 30,  March 31, Production costs (in thousands, except per BOE):2024 2023 2024Lease operating costsAmount per BOE Amount per BOE Amount per BOESCOOP/STACK$1,028 $9.06 $— $— $619 $8.18Chaveroo Field 301  24.42  —  —  161  9.12Jonah Field 1,834  11.99  2,218  13.45  2,313  14.63Williston Basin 1,227  25.53  1,149  26.83  1,413  33.69Barnett Shale 3,853  17.47  3,902  15.28  3,767  16.07Hamilton Dome Field 1,415  40.40  1,417  38.76  1,566  45.34Delhi Field 1,750  23.96  3,132  35.06  2,785  30.19Total$11,408 $17.39 $11,818 $20.02 $12,624 $19.24

This press release was published by a CLEAR® Verified individual.

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