Evolution Petroleum Reports Fiscal Third Quarter 2023 Results and Declares

HOUSTON, TX / ACCESSWIRE / May 9, 2023 / Evolution Petroleum Corporation (NYSE American:EPM) (“Evolution” or the “Company”) today announced its financial and operating results for its fiscal third quarter ended March 31, 2023 (“Fiscal Q3”). Evolution also declared a quarterly cash dividend of $0.12 per common share for the fiscal 2023 fourth quarter.

Key Highlights

• Reported sequential growth in revenue of 9% to a record $36.9 million and in net income of 34% to a record $14.0 million or $0.41 per diluted share in Fiscal Q3.

• Fiscal 2023 year-to-date (“Fiscal YTD”) revenue and net income increased year-over-year (“YoY”) by 65% and 97%, respectively.

• Increased quarterly Adjusted Net Income ⁽¹⁾ by 46% sequentially and 84% YoY to $14.1 million.

• Generated record Adjusted EBITDA ⁽²⁾ of $22.0 million during Fiscal Q3 and $55.4 million Fiscal YTD – an increase of 34% sequentially and 78% YoY.

• Produced 7,089 net barrels of oil equivalent per day (“BOEPD”) in Q3, and 7,314 BOEPD Fiscal YTD (34% higher YoY).

• Paid a quarterly dividend of $0.12 per common share for the current quarter – a 20% increase from the dividend paid during the fiscal 2022 third quarter.

• Repurchased $3.9 million of common shares under our previously announced share repurchase plan.

• During Fiscal YTD, repaid all outstanding debt (incurred mainly due to 2022 acquisitions), leaving $50 million available borrowing capacity under the senior secured credit facility.

Kelly Loyd, President and Chief Executive Officer, commented, “Evolution is proud to report another quarter of excellent results achieved through our diversified portfolio of onshore oil and natural gas assets located across key producing regions in the U.S. We reported record quarterly revenue, net income, and Adjusted EBITDA during Fiscal Q3, primarily due to a year-over-year increase in production coupled with an increase in our average realized price per barrel of oil equivalent (“BOE”). During the quarter, we briefly realized unusually high natural gas prices contributing to the exceptional performance. While we are very pleased with these results, we do not budget for such pricing on a go-forward basis. We believe our strong cash flow generation, zero outstanding debt, and stable liquidity highlight our disciplined approach to maximizing total shareholder returns as we continue to evaluate accretive acquisition opportunities.”

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“During the quarter, the Board appointed Mark Bunch as the Company’s Chief Operating Officer. Mark has been a natural addition to the team as he has been a consultant to the company for over 5 years. He will continue to help maximize the value of Evolution’s existing cash-flow-producing properties and development opportunities and enhance the strategic relationships with our operating partners. Mark will be instrumental in driving Evolution to realize its strategic vision as we evaluate and prudently execute targeted future growth opportunities,” continued Mr. Loyd.

Mr. Loyd concluded, “Our 38 ^th consecutive quarterly dividend payment in March, the declaration of a $0.12 dividend for fiscal Q4, and the execution of $3.9 million in share repurchases during the quarter – while maintaining a debt-free balance sheet – illustrate our dedication to providing our shareholders with a superior long-term total return.”

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

Cash Dividend on Common Stock

On May 8, 2023, Evolution’s Board of Directors declared a cash dividend of $0.12 per share of common stock, which will be paid on June 30, 2023, to common stockholders of record on June 15, 2023. This will be the 39 ^th consecutive quarterly cash dividend on the Company’s common stock, which has been paid since December 31, 2013. To date, Evolution has returned approximately $98.4 million, or $2.97 per share, back to stockholders in common stock dividends. Maintaining and ultimately growing the common stock dividend remains a key Company priority.

Financial and Operational Results for the Quarter Ended March 31, 2023