Overview

• U.S. oil and gas producer's fiscal Q3 revenue fell 11% yr/yr, missing analyst expectations

• Fiscal Q3 adjusted EBITDA missed analyst expectations, impacted by unfavorable natural gas field differentials

• Company maintained quarterly dividend and expects new Louisiana wells to drive Q4 revenue growth

Outlook

• Company expects 23 new Louisiana wells to drive revenue and cash flow from fiscal Q4 2026

• Evolution sees TexMex optimization adding 100 net BOEPD by end of fiscal Q4

• Company expects improved performance as temporary issues resolve and new assets contribute

Result Drivers

• LOWER REALIZED PRICES - Co said an 11% drop in average realized prices was the main reason for lower revenue in Q3

• WEATHER-RELATED DOWNTIME - Production was reduced by over 300 BOEPD due to ice storms, power outages, and equipment failures in January

• UNFAVORABLE GAS DIFFERENTIALS AND HEDGE LOSSES - Unfavorable natural gas field differentials and $2.2 mln in realized hedge losses weighed on results

Company press release: ID:nGNX8pWFkK

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Miss	$20.17 mln	$20.58 mln (5 Analysts)
Q3 EPS		-$0.26
Q3 Adjusted Net Income		-$2.94 mln
Q3 Net Income		-$8.93 mln
Q3 Adjusted EBITDA	Miss	$3.11 mln	$7.43 mln (5 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Evolution Petroleum Corp is $5.00, about 4.4% above its May 12 closing price of $4.79

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.