Evolution Petroleum Corporation is an independent energy company focused on acquiring and developing long-lived oil and natural gas properties in the United States, with a diversified portfolio consisting primarily of non-operated working interests and mineral and royalty interests across several leading producing basins. The non-operated model allows the company to invest alongside experienced operators, participate in a broad range of development opportunities, and maintain flexibility in the timing and allocation of capital, while mineral and royalty interests provide exposure to production and future development generally without associated lifting expenses or drilling and completions costs. The geographic, commodity, operator, and ownership diversity of the asset base reduces reliance on any single property, basin, or development program and provides multiple avenues for allocating capital, including acquiring producing working and mineral interests, participating in operator-led projects, and pursuing development opportunities within existing assets. The company seeks to maximize total shareholder value through disciplined acquisitions, selective participation in attractive development projects, a conservative balance sheet, and the return of capital to shareholders.

The company's competitive positioning is underpinned by its diversified multi-basin portfolio of non-operated working interests and mineral and royalty interests, which provides operational and commodity flexibility and reduces reliance on any single property, basin, or development program. The company holds interests in several leading producing basins, including the SCOOP/STACK plays in Oklahoma, the Chaveroo Field in New Mexico, the Jonah Field in Wyoming, the Williston Basin in North Dakota, the Barnett Shale in Texas, the Hamilton Dome Field in Wyoming, the Delhi Field in Louisiana, and other properties in the Haynesville/Bossier Shale and TexMex areas. The company's properties are operated by experienced third-party operators, including Continental Resources, Inc., Ovintiv USA Inc., Validus Energy, EOG Resources, Inc., PEDEVCO Corp., Jonah Energy, Foundation Energy Management, Diversified Energy Company (until sold to Eagleridge Operating, LLC in June 2026), Merit Energy Company, Denbury Onshore LLC (a subsidiary of Exxon Mobil Corporation), and Texian Operating Company. The company's strategy emphasizes maintaining a strong balance sheet, growing the asset base through investment in existing properties, direct acquisitions, and returning cash to shareholders through dividends and share repurchases.

The company generates revenue through the production and sale of crude oil, natural gas, and natural gas liquids from its non-operated working interests and mineral and royalty interests. The business model is characterized by a mix of production from long-lived properties, with revenue derived from both oil and natural gas sales across multiple basins. The company's customer base includes various purchasers throughout the mid-continent, West Coast markets, local refineries, Gulf Coast markets, and other purchasers in Texas, New Mexico, and Louisiana. The company also benefits from a recurring income stream from its mineral and royalty interests, which generally do not incur lifting expenses or drilling and completions costs. The company's capital allocation strategy focuses on disciplined acquisitions, selective participation in development projects, and returning cash to shareholders through dividends and share repurchases.

The company's properties include non-operated working interests and mineral and royalty interests across several basins. In the SCOOP/STACK plays in Oklahoma, the company holds an approximate 2.6% average net working interest with an associated 2.0% average net revenue interest on approximately 101,100 gross (4,000 net) acres and a separate approximate 0.6% average net royalty interest on approximately 8,600 gross (1,800 net) royalty acres. For the year ended June 30, 2026, average net daily production from SCOOP/STACK was 1.4 MBOEPD, consisting of 54% natural gas, 24% oil, and 22% NGLs. In the Chaveroo Field in New Mexico, the company holds a 50% net working interest with an average 41% revenue interest on approximately 4,500 gross (2,300 net) acres, with average net daily production of 0.3 MBOEPD, 100% oil. In the Jonah Field in Wyoming, the company holds approximately 20% average net working interest and approximately 15% average net revenue interest on approximately 5,300 gross (950 net) acres, with average net daily production of 1.4 MBOEPD, consisting of 89% natural gas, 6% NGLs, and 5% oil. In the Williston Basin in North Dakota, the company holds approximately 39% average net working interest and approximately 33% average net revenue interest on approximately 133,800 gross (40,100 net) acres, with average net daily production of 0.4 MBOEPD, consisting of 73% oil, 16% NGLs, and 11% natural gas.

In the Barnett Shale in North Texas, the company holds approximately 17% average net working interest and approximately 14% average net revenue interest on approximately 123,800 gross (21,000 net) acres, with average net daily production of 2.2 MBOEPD, consisting of 73% natural gas, 26% NGLs, and 1% oil. In the Hamilton Dome Field in Wyoming, the company holds approximately 24% average net working interest with an associated 20% average net revenue interest on approximately 5,900 gross acres (1,400 net acres), with average net daily production of 0.4 MBOEPD, 100% oil. In the Delhi Field in Louisiana, a CO2-EOR project, the company holds approximately 24% average net working interest with an associated 19% average net revenue interest and separate overriding royalty and mineral interests of approximately 7%, yielding a total average net revenue interest of approximately 26%, on approximately 13,600 gross unitized acres (3,200 net acres), with average net daily production of 0.6 MBOEPD, consisting of 81% oil and 19% NGLs. In other properties, including the Haynesville/Bossier Shale and TexMex, the company holds an approximate average 0.3% net royalty interest in the Haynesville/Bossier Shale across approximately 3,600 gross (465 net) acres and an approximate 42% net working interest and 35% average net revenue interest in TexMex on approximately 27,800 gross (11,200 net) acres, with average net daily production of 0.4 MBOEPD, consisting of 50% oil, 48% natural gas, and 1% NGLs.

During fiscal year 2026, the company completed several significant operational developments. On August 4, 2025, the company completed the SCOOP/STACK Minerals Acquisition, a cash transaction valued at approximately $16.3 million, including $17.0 million paid at closing less transaction costs of $0.1 million and interim purchase price adjustments totaling approximately $0.8 million, funded with $15.0 million in borrowings under the Senior Secured Credit Facility and cash on hand. From December 2025 through June 2026, the company acquired mineral and royalty interests in Louisiana for cash consideration totaling $6.2 million, funded with cash on hand and proceeds from ATM Sales Agreements. On June 30, 2026, the company divested 3,700 net royalty acres in the SCOOP/STACK for a total sale price of approximately $3.1 million. On October 21, 2024, the company entered into an ATM equity Sales Agreement with Roth Capital Partners, LLC, Northland Securities Inc., and A.G.P./Alliance Global Partners, and on February 11, 2026, executed a new ATM equity Sales Agreement restoring the $30.0 million common stock sales capacity. For the year ended June 30, 2026, the company sold approximately 1.4 million shares under the ATM Sales Agreements for net proceeds of approximately $5.8 million, net of $0.2 million of offering costs. On November 28, 2025, the company entered into a letter agreement with MidFirst Bank modifying the Margined Collateral Value to $65.0 million. On August 20, 2026, the company completed a public offering of 4.3 million shares at $3.25 per share, receiving net proceeds of approximately $12.8 million, and completed the Permian Minerals Acquisition for a total purchase price of $16.0 million, funded with net proceeds from the offering and $3.2 million in borrowings under the Senior Secured Credit Facility. On August 20, 2026, the borrowing base on the Senior Secured Credit Facility was temporarily increased from $65.0 million to $73.0 million until October 20, 2026. On September 10, 2026, the Board of Directors declared a quarterly dividend of $0.12 per common share payable September 30, 2026.

For the fiscal year ended June 30, 2026, the company reported total revenues of $57.5 million, compared to $57.8 million in the prior year. Net income was $12.5 million, or $0.32 per diluted share, compared to net income of $13.4 million, or $0.35 per diluted share, in the prior year. The company's production volumes were 2,583 MBOE for fiscal 2026, compared to 2,548 MBOE in fiscal 2025. The average realized price per BOE was $22.27 in fiscal 2026, compared to $22.69 in fiscal 2025. Lease operating expenses were $20.4 million in fiscal 2026, compared to $19.7 million in fiscal 2025. The company generated cash flow from operations of $31.4 million in fiscal 2026, compared to $33.5 million in fiscal 2025. The company's proved reserves as of June 30, 2026 were 27,217 MBOE, with a PV-10 of $244.4 million, compared to proved reserves of 25,900 MBOE and a PV-10 of $240.1 million as of June 30, 2025.

The company's growth strategy includes continued investment in its existing properties, direct acquisitions of oil and natural gas properties, including working and mineral and royalty interests, and selective development opportunities. At SCOOP/STACK, the company has received proposals for ten gross wells expected to be brought online during fiscal year 2027, and additional wells are expected to be drilled and/or completed as third-party operators remain active. At the Chaveroo Field, the company has drilling permits in hand for the next round of six gross wells and is in discussions with its partner regarding timing for spudding these wells. At the Louisiana and Oklahoma minerals properties, there are currently 18 gross wells in progress, and additional wells are expected throughout fiscal year 2027. The company also completed the Permian Minerals Acquisition on August 20, 2026, acquiring mineral and royalty interests in the core Midland Basin of the Permian Basin for a total purchase price of $16.0 million, with an effective date of August 1, 2026, including approximately 3,420 net royalty acres across Reagan, Martin, Midland, Glasscock, and Upton Counties, Texas.

The company's growth is also supported by its mineral and royalty interests, which provide exposure to production and future development without associated lifting expenses or drilling and completions costs. The Louisiana Minerals acquisitions, completed from December 2025 through June 2026, consist of proved producing wells, drilled but not yet producing wells, and undeveloped acreage targeting the Bossier/Haynesville Shales, which are currently being actively developed by operators in the area. The SCOOP/STACK Minerals Acquisition added an average royalty interest of 0.6% across approximately 5,500 net royalty acres primarily in Grady and Canadian Counties, Oklahoma. The company expects to benefit from operator-led development around its acreage, with additional wells expected to be drilled and/or completed throughout fiscal year 2027. The company's non-operated model allows it to participate in a broad range of development opportunities while maintaining flexibility in the timing and allocation of capital.

The company's margin and cost outlook is influenced by its focus on maintaining a strong balance sheet and conservative financial management. The company's lease operating expenses were $20.4 million in fiscal 2026, compared to $19.7 million in fiscal 2025. The company's production costs per BOE were $7.90 in fiscal 2026, compared to $7.73 in fiscal 2025. The company's general and administrative expenses were $10.5 million in fiscal 2026, compared to $10.1 million in fiscal 2025. The company's depreciation, depletion, and amortization expense was $14.8 million in fiscal 2026, compared to $14.2 million in fiscal 2025. The company's interest expense was $2.4 million in fiscal 2026, compared to $2.1 million in fiscal 2025. The company's effective tax rate was 21.4% in fiscal 2026, compared to 22.0% in fiscal 2025.

The company's operational outlook includes continued reliance on third-party operators for drilling and development activities, as none of its oil and natural gas properties are operated by the company. There are no plans to drill new wells in fiscal year 2027 in the Jonah Field, the Barnett Shale, Delhi Field, the Hamilton Dome Field, or at TexMex. At all working interest properties, operators are periodically running workover rigs focusing on projects to return wells to production that have experienced mechanical issues. The company's capital expenditure plans are focused on development activities at SCOOP/STACK, the Chaveroo Field, and the Williston Basin, as well as continued acquisitions of mineral and royalty interests. The company's PUD reserves as of June 30, 2026 were 4.8 MMBOE, with related future development costs of approximately $74.8 million, primarily associated with the Chaveroo Field, Williston Basin, and SCOOP/STACK.

The company's capital allocation strategy includes sustaining and growing its dividend payout over time and repurchasing shares in the open market. The company declared a quarterly dividend of $0.12 per common share on September 10, 2026, payable September 30, 2026. The company's capital expenditure program for fiscal 2027 is expected to be funded with cash flow from operations and borrowings under its Senior Secured Credit Facility. The company's Senior Secured Credit Facility had a borrowing base of $65.0 million as of June 30, 2026, which was temporarily increased to $73.0 million from August 20, 2026 until October 20, 2026. The company also has an ATM equity Sales Agreement with capacity of $30.0 million for the issuance and sale of common stock. The company's share repurchase program, authorized in 2022, remains available for repurchases of common stock.

The company faces headwinds related to commodity price volatility, as oil and natural gas prices are subject to significant fluctuations. The company's average realized price per BOE was $22.27 in fiscal 2026, compared to $22.69 in fiscal 2025. The company's crude oil production volumes decreased to 759 MBBL in fiscal 2026 from 766 MBBL in fiscal 2025, while natural gas production volumes increased to 8,428 MMCF from 8,409 MMCF, and NGL production volumes increased to 419 MBBL from 414 MBBL. The company's production from the Delhi Field declined to 190 MBBL of oil in fiscal 2026 from 236 MBBL in fiscal 2025, reflecting natural field decline. The company's reliance on third-party operators exposes it to operational risks, including accidents, equipment failures, fires, and releases of toxic or hazardous materials, as well as the timing and success of operator-led drilling programs.

The company also faces constraints related to regulatory and environmental requirements, including compliance with current or proposed environmental requirements and the costs thereof. The company's operations are subject to federal, state, and local rules and regulations, and changes in these regulations could impact its business. The company's ability to access credit facilities and other sources of liquidity is subject to commodity price cycles and its ability to comply with financial covenants. The company's hedging program is designed to mitigate commodity price risk, and as of June 30, 2026, the company had various crude oil and natural gas swaps and collars in place for fiscal 2026 and 2027. The company's ability to complete future acquisitions may require additional capital, and the availability of attractive acquisition opportunities is uncertain.

Management's message to shareholders emphasizes a strategy of maximizing total shareholder return through disciplined management and growth of the asset base, while being mindful of the current operating environment and marketplace. The key elements of the strategy include maintaining a strong balance sheet and conservative financial management, growing the asset base through investment in existing properties, direct acquisitions of oil and natural gas properties, selective development opportunities, or accretive acquisitions of similar companies, and returning cash to shareholders by sustaining and growing the dividend payout over time or repurchasing shares in the open market. Management highlights the benefits of the multi-basin portfolio, including operational and commodity flexibility, and the ability to maximize cash flow and apply excess cash flows to pay dividends. The company's recent developments, including the Permian Minerals Acquisition, the common stock offering, and the Louisiana Minerals acquisitions, reflect the execution of this strategy. Management's forward-looking statements include expectations regarding anticipated development activity and capital spending, capital allocation strategy, capital structure, anticipated sources of funding, growth in long-term shareholder value, and the ability to preserve balance sheet strength. The company's guidance assumptions include future commodity prices and basis differentials, access to credit facilities and shelf prospectuses, and assumptions contained in corporate guidance.

For the fiscal year ended June 30, 2026, total revenues were $57.5 million ¹, compared to $57.8 million ² in fiscal 2025. Net income was $12.5 million ³, or $0.32 per diluted share ⁴, compared to net income of $13.4 million ⁵, or $0.35 per diluted share ⁶, in fiscal 2025. Operating income was $12.4 million ⁷ in fiscal 2026, compared to $13.9 million ⁸ in fiscal 2025. The company's net cash provided by operating activities was $31.4 million ⁹ in fiscal 2026, compared to $33.5 million ¹⁰ in fiscal 2025. As of June 30, 2026, the company had cash and cash equivalents of $2.3 million ¹¹ and total debt of $20.0 million ¹² outstanding under its Senior Secured Credit Facility, compared to cash and cash equivalents of $1.2 million ¹³ and total debt of $15.0 million ¹⁴ as of June 30, 2025. The company's proved reserves as of June 30, 2026 were 27,217 MBOE ¹⁵, with a PV-10 of $244.4 million ¹⁶, compared to proved reserves of 25,900 MBOE ¹⁷ and a PV-10 of $240.1 million ¹⁸ as of June 30, 2025. The company's production volumes were 2,583 MBOE ¹⁹ in fiscal 2026, compared to 2,548 MBOE ²⁰ in fiscal 2025. The average realized price per BOE was $22.27 ²¹ in fiscal 2026, compared to $22.69 ²² in fiscal 2025. Lease operating expenses were $20.4 million ²³ in fiscal 2026, compared to $19.7 million ²⁴ in fiscal 2025. The company's depreciation, depletion, and amortization expense was $14.8 million ²⁵ in fiscal 2026, compared to $14.2 million ²⁶ in fiscal 2025. General and administrative expenses were $10.5 million ²⁷ in fiscal 2026, compared to $10.1 million ²⁸ in fiscal 2025. Interest expense was $2.4 million ²⁹ in fiscal 2026, compared to $2.1 million ³⁰ in fiscal 2025. The company's effective tax rate was 21.4% ³¹ in fiscal 2026, compared to 22.0% ³² in fiscal 2025. The company's capital expenditures were $10.2 million ³³ in fiscal 2026, compared to $8.5 million ³⁴ in fiscal 2025. The company's proved developed producing reserves were 22,032 MBOE ³⁵ as of June 30, 2026, and proved undeveloped reserves were 4,836 MBOE ³⁶. The company's standardized measure of discounted future net cash flows was $244.4 million ³⁷ as of June 30, 2026, compared to $240.1 million ³⁸ as of June 30, 2025.

The company's business is subject to significant commodity price volatility, which directly impacts revenues and profitability. The average realized price per BOE was $22.27 in fiscal 2026, compared to $22.69 in fiscal 2025, and a decline in oil, natural gas, or NGL prices could materially reduce cash flow and reserves. The company relies on third-party operators for all of its oil and natural gas properties, exposing it to operational risks including accidents, equipment failures, fires, and releases of toxic or hazardous materials, as well as the timing and success of operator-led drilling programs. The company's proved reserves are subject to significant estimation uncertainty, and revisions could occur as more data becomes available; as of June 30, 2026, proved reserves were 27,217 MBOE, with PUD reserves of 4,836 MBOE and related future development costs of approximately $74.8 million. The company's ability to access credit facilities and other sources of liquidity is subject to commodity price cycles and compliance with financial covenants; as of June 30, 2026, the company had $20.0 million outstanding under its Senior Secured Credit Facility, with a borrowing base of $65.0 million. The company's hedging program may not fully protect against commodity price declines, and counterparty credit risk exists. The company's acquisitions, such as the Permian Minerals Acquisition for $16.0 million and the SCOOP/STACK Minerals Acquisition for approximately $16.3 million, may not achieve expected returns, and integration risks could arise. The company's operations are subject to extensive federal, state, and local regulations, including environmental requirements, and changes in regulations could increase costs or restrict operations. The company's customer concentration risk is mitigated by sales to various purchasers, but a significant portion of production is sold to a limited number of purchasers, and the loss of any major purchaser could adversely affect results.