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Evolution Petroleum Corp (EPM)
:EPM
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Evolution Petroleum
(NYSE MKT:EPM)
Rating:51Neutral
Price Target:
$5.00
▲(4.17%Upside)
Evolution Petroleum (EPM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$171.54M
Dividend Yield9.6%
Average Volume (3M)184.16K
Price to Earnings (P/E)89.3
Beta (1Y)0.70
Revenue Growth3.79%
EPS Growth-131.01%
CountryUS
Employees11
SectorEnergy
Sector Strength53
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.07
Shares Outstanding34,307,640
10 Day Avg. Volume226,767
30 Day Avg. Volume184,156
Financial Highlights & Ratios
PEG Ratio0.92
Price to Book (P/B)2.89
Price to Sales (P/S)0.00
P/FCF Ratio6.01
Enterprise Value/Market Cap1.49
Enterprise Value/Revenue0.74
Enterprise Value/Gross Profit15.41
Enterprise Value/Ebitda2.35
Forecast
1Y Price Target
$5.10Price Target Upside6.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Evolution Petroleum Business Overview & Revenue Model
Company DescriptionEvolution 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.
How the Company Makes MoneyEvolution Petroleum Corporation generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) extracted from its operated and non-operated properties. The company employs enhanced oil recovery (EOR) techniques to maximize production from mature fields, thereby increasing the recoverable reserves and extending the life of existing wells. Key revenue streams include the sale of produced hydrocarbons in the open market, as well as through long-term contracts with refiners, marketers, and distributors. EPM's earnings are influenced by market prices for oil and gas, production volumes, and operational efficiencies. Partnerships and joint ventures with other exploration and production companies also play a significant role in leveraging expertise and resources to optimize field development and production strategies.
Evolution Petroleum Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q3-2025)
| % Change Since: 9.84%|
Next Earnings Date:Sep 16, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements such as the successful Tex-Mex acquisition and strong natural gas revenue growth, which were offset by challenges including a decline in total revenue and production, as well as a net loss for the quarter. The company's commitment to dividends and financial flexibility provides a positive outlook, but operational setbacks and financial losses temper the overall sentiment.Q3-2025 Updates
Positive Updates
Tex-Mex Acquisition and Chaveroo Wells Performance
Subsequent to the quarter end, Evolution Petroleum closed the Tex-Mex acquisition and brought online four new wells in the Chaveroo development block, contributing more than 850 net barrels of oil equivalent per day. This is expected to benefit fiscal fourth quarter production and cash flow.
Strong Natural Gas Revenue Growth
Natural gas revenue rose 33% year-over-year to $7.8 million, and NGL revenue increased by 14% to $3 million, partially offsetting a 19% decline in oil revenue. This demonstrates the resilience of the company's diversified portfolio.
Dividend Declaration
The Board declared a cash dividend of $0.12 per share, marking the 47th consecutive quarter of issuing a dividend and the 12th consecutive quarter at this rate, reflecting the company's commitment to returning capital to shareholders.
Increased Liquidity and Credit Facility Expansion
Evolution Petroleum has total liquidity of $20.1 million, with borrowings of $35.5 million. The company also received approval to increase its credit facility commitments to $65 million, providing greater financial flexibility.
Negative Updates
Decline in Overall Revenue and Production
Total revenues decreased by 2% year-over-year to $22.6 million, driven by an 8% decrease in production volumes due to downtime at Barnett and maintenance at Delhi.
Net Loss Reported
The company reported a net loss of $2.2 million, or $0.07 per share, compared to net income of $0.3 million or $0.01 per share in the same period last year.
Operational Challenges at Delhi and Barnett
Production was affected by planned maintenance at Delhi and weather-related downtime in Barnett, leading to a 7.5% decline in total production year-over-year.
Company Guidance
During the Evolution Petroleum Fiscal Third Quarter 2025 Earnings Conference Call, the company provided several key metrics and guidance. Evolution Petroleum reported a total revenue of $22.6 million, a 2% year-over-year decrease, driven primarily by an 8% decrease in production volumes, which was partially offset by a 7% increase in average realized commodity prices. The company highlighted the completion of the Tex-Mex acquisition, which contributes approximately 440 net barrels of oil equivalent per day. Additionally, four new wells in the Chaveroo development block are now online, contributing more than 850 net barrels of oil equivalent per day. The company maintains a strong hedging strategy, with about 40% of oil volumes hedged at prices above $70 through the fiscal year-end. Adjusted EBITDA was reported at $7.4 million, a decrease from the previous year, but 30% higher than the previous quarter due to improved commodity prices. The company also declared a quarterly cash dividend of $0.12 per share, marking its 47th consecutive quarterly dividend and emphasizing a commitment to returning capital to shareholders. Looking ahead, Evolution Petroleum plans to focus on preserving financial flexibility, sustaining dividends, and pursuing growth opportunities, particularly in gas-weighted areas, while delaying certain oil-weighted developments due to market conditions.Evolution Petroleum Financial Statement Overview
Summary
Evolution Petroleum faces challenges in profitability and cash flow, despite a stable balance sheet. The income statement shows declining revenue and profit margins, and cash flow analysis indicates negative free cash flow. However, a low debt-to-equity ratio and healthy equity ratio provide some financial stability.Income Statement
Evolution Petroleum's income statement reveals fluctuating revenue with a notable decline in the TTM period, which is concerning. The gross profit margin has decreased from 42.5% in 2023 to 20.4% TTM, indicating pressure on profitability. The net profit margin also fell significantly from 27.4% in 2023 to 2.0% TTM, reflecting increased costs or lower revenue. Additionally, EBIT and EBITDA margins have decreased, emphasizing the need for efficiency improvements.45
Neutral
Balance Sheet
The balance sheet is relatively strong, showcasing a low debt-to-equity ratio of 0.0002 in the TTM period, indicating low leverage. Despite this, the return on equity has dropped from 38.2% in 2023 to 2.3% TTM, suggesting decreased profitability. The equity ratio is healthy at 47.6% TTM, reflecting a solid financial foundation.70
Positive
Cash Flow
Cash flow analysis highlights challenges, with a negative free cash flow of -$17.2 million TTM, a deterioration from -$26.9 million in 2023. The operating cash flow to net income ratio is strong at 15.1 TTM, but the free cash flow to net income ratio is negative, signaling cash management issues. The company needs to address these cash flow concerns to improve financial health.40
Negative
| Breakdown | TTM | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 85.96M | 85.88M | 128.51M | 108.93M | 32.70M | 29.60M |
| Gross Profit | 16.56M | 19.00M | 54.70M | 52.22M | 11.16M | 10.48M |
| EBITDA | 23.60M | 27.02M | 60.02M | 49.77M | -16.15M | 11.01M |
| Net Income | -704.00K | 4.08M | 35.22M | 32.63M | -16.44M | 5.94M |
Balance Sheet | ||||||
| Total Assets | 156.39M | 162.88M | 128.32M | 148.05M | 76.71M | 92.14M |
| Cash, Cash Equivalents and Short-Term Investments | 5.60M | 6.45M | 11.03M | 8.28M | 5.28M | 19.66M |
| Total Debt | 0.00 | 39.66M | 184.00K | 21.25M | 4.02M | 84.98K |
| Total Liabilities | 84.73M | 81.75M | 36.22M | 72.53M | 22.11M | 18.01M |
| Stockholders Equity | 71.66M | 81.13M | 92.09M | 75.51M | 54.59M | 74.12M |
Cash Flow | ||||||
| Free Cash Flow | 29.26M | -26.90M | 44.28M | -2.41M | -14.04M | 1.33M |
| Operating Cash Flow | 30.58M | 22.73M | 51.27M | 52.46M | 4.73M | 12.40M |
| Investing Cash Flow | -7.54M | -49.63M | -6.99M | -54.87M | -18.77M | -11.06M |
| Financing Cash Flow | -20.50M | 22.32M | -41.53M | 5.42M | -349.43K | -13.22M |
Evolution Petroleum Technical Analysis
Neutral
4.80
Price Trends
4.51
Positive
4.61
Positive
4.87
Negative
Market Momentum
0.09
Positive
51.66
Neutral
68.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPM, the sentiment is Neutral. The current price of 4.8 is below the 20-day moving average (MA) of 4.88, above the 50-day MA of 4.51, and below the 200-day MA of 4.87, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 68.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EPM.
Evolution Petroleum Peers Comparison
Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $165.13M | 37.39 | 4.45% | 3.33% | 35.21% | -9.18% | |
65 Neutral | $164.96M | 23.68 | 5.55% | 3.68% | 11.84% | 61.88% | |
59 Neutral | $163.36M | 2.23 | 8.52% | ― | -4.51% | -10.09% | |
54 Neutral | $261.34M | ― | 203.83% | 2.26% | -5.05% | -383.38% | |
52 Neutral | C$2.91B | -1.09 | -3.26% | 6.12% | 5.32% | -43.41% | |
51 Neutral | $171.54M | 89.30 | -1.24% | 9.60% | 3.79% | -131.01% | |
44 Neutral | $174.17M | 21.67 | -4.07% | ― | -2.39% | -425.29% |
* Energy Sector Average
Performance Comparison
EPM
Evolution Petroleum
4.80
-0.02
-0.41%
GTE
Gran Tierra Energy
4.88
-5.14
-51.30%
PHX
PHX Minerals
4.35
1.30
42.62%
WTI
W&T Offshore
1.72
-0.46
-21.10%
REI
Ring Energy
0.78
-1.02
-56.67%
EPSN
Epsilon Energy
7.20
2.06
40.08%
Evolution Petroleum Corporate Events
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Evolution Petroleum Gains from Barnett Shale Audit Results
Positive
Jul 2, 2025
On June 30, 2025, Evolution Petroleum Corporation entered into an amended and restated senior secured reserve-based credit agreement with MidFirst Bank, allowing for borrowings up to $200 million, with an initial borrowing base of $65 million, maturing on June 30, 2028. This facility supports working capital, acquisitions, and development of oil and gas properties, with specific financial covenants and hedging requirements. On July 1, 2025, Evolution announced the results of a joint interest audit of its Barnett Shale properties, revealing approximately $1.8 million owed to the company due to overcharges from the largest operator for the years 2022-2023. This adjustment will positively impact their fiscal year 2025 results, and further audits are expected to yield additional benefits.
The most recent analyst rating on (EPM) stock is a Buy with a $8.25 price target. To see the full list of analyst forecasts on Evolution Petroleum stock, see the EPM Stock Forecast page.
DividendsBusiness Operations and StrategyFinancial Disclosures
Evolution Petroleum Reports Q3 Loss, Declares Dividend
Neutral
May 13, 2025
On May 13, 2025, Evolution Petroleum announced its fiscal third-quarter results, revealing a net loss of $2.2 million, despite a 30% increase in adjusted EBITDA from the previous quarter. The company declared a $0.12 per share dividend for the fourth quarter of 2025, marking its 47th consecutive quarterly dividend, and highlighted the successful acquisition of non-operated oil and gas assets, which are expected to enhance future production.
The most recent analyst rating on (EPM) stock is a Buy with a $8.25 price target. To see the full list of analyst forecasts on Evolution Petroleum stock, see the EPM Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.