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It's like a focused ConocoPhillips for mature oil fields, specializing in enhanced recovery techniques to maximize production.

Think of it as an "oil field landlord," similar to how a smaller Pioneer Natural Resources might meticulously optimize existing properties for long-term value.

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Major Products:

• Crude Oil: A naturally occurring petroleum product extracted from its oil and gas properties.
• Natural Gas: A naturally occurring hydrocarbon gas extracted from its oil and gas properties.

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Evolution Petroleum Corporation (EPM) primarily sells its crude oil and natural gas production to other companies within the energy industry, rather than directly to individuals.

However, the specific names of Evolution Petroleum's major customers are not publicly disclosed in its financial filings or other public statements. Companies operating in the upstream oil and natural gas sector, like EPM, typically sell their commodity products (crude oil and natural gas) to a limited number of purchasers, such as pipeline operators, refiners, and natural gas marketers. While their 10-K reports indicate sales concentration with a few purchasers, these specific entities are not explicitly named in public documents, as is common practice in commodity markets where buyers are generally interchangeable.

Based on the nature of the company's business as an oil and natural gas producer, its major customers would generally fall into the following categories:

• Crude Oil Purchasers: These customers typically include crude oil pipeline operators, independent crude oil marketing companies, or directly to refineries that process crude oil into refined products like gasoline, diesel, and jet fuel.
• Natural Gas Purchasers: These customers are generally natural gas pipeline companies, midstream operators that gather and process natural gas, or large industrial users and utility companies (Local Distribution Companies - LDCs) that distribute natural gas to end-users or for power generation.

These purchasers are typically large, creditworthy companies involved in the transportation, processing, or end-use of hydrocarbons.

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• ExxonMobil (XOM)
• Chesapeake Energy Corporation (CHK)

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Kelly W. Loyd President and Chief Executive Officer Mr. Loyd has served as President and Chief Executive Officer of Evolution Petroleum since October 2022, and as a director since 2008. He possesses over 20 years of experience in the energy sector, encompassing both investment banking and buy-side roles, with a focus on analyzing and investing in public and private energy opportunities, corporate finance, and mergers and acquisitions. Since 2004, he has been associated with Petralis Energy Partners, LLC and JVL Advisors, LLC, both private energy investment vehicles, indicating a pattern of involvement with companies backed by private energy investment firms. Prior to 2001, Mr. Loyd co-founded and served as controller of L.A.B. Sports and Entertainment. Ryan Stash Senior Vice President, Chief Financial Officer, Treasurer and Corporate Secretary Mr. Stash has served as Senior Vice President, Chief Financial Officer, and Treasurer for Evolution Petroleum since November 18, 2020. He brings over 20 years of experience in the oil and gas industry, specializing in capital raising, mergers and acquisitions, and accounting and financial reporting. Before joining Evolution, he was Vice President and Chief Financial Officer of Harvest Oil & Gas Corp. from October 2018 to November 2020. Earlier in his career, Mr. Stash served as a Managing Director at Regions Securities, focusing on the energy sector, and spent 11 years in the Energy Investment Banking Group at Wells Fargo Securities. He began his career as an auditor at Hewlett-Packard and Ernst & Young, LLP, and is a Certified Public Accountant in Texas. J. Mark Bunch Chief Operating Officer Mr. Bunch joined Evolution Petroleum in February 2023 as Chief Operating Officer. He has over 40 years of experience in the oil and gas industry. Before his tenure at Evolution, and since 2020, Mr. Bunch was a Senior Vice President and a founding partner of Alamo Resources III, LLC. Additionally, since 2016, he has provided independent consulting services to various upstream energy companies, including Evolution, through his wholly-owned firm, Dantoria Energy, LLC. His career began at Arco Oil and Gas Company in 1981, holding various reservoir and production engineering roles. Kelly M. Beatty Chief Accounting Officer Ms. Beatty serves as Evolution Petroleum's Chief Accounting Officer and has over 15 years of accounting experience. She has worked with a range of onshore and offshore exploration and production companies in both private and public sectors. Most recently, Ms. Beatty was the Controller of QuarterNorth Energy (formerly Fieldwood Energy) from 2019 to 2022. Her background also includes 10 years in financial reporting positions at other public oil and gas companies, such as Petrohawk Energy Corporation and Halcon Resources Corporation. She started her career in 2006 in the assurance practice at Ernst & Young LLP.

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The key risks to Evolution Petroleum (EPM) are primarily associated with the inherent volatility of the oil and natural gas industry, regulatory and environmental pressures on its enhanced oil recovery operations, and its financial structure, including increased debt levels.

1. Commodity Price Volatility
   Evolution Petroleum's financial performance is highly sensitive to the fluctuating prices of crude oil and natural gas. A significant and sustained decline in these commodity prices, particularly if West Texas Intermediate (WTI) crude drops below approximately $60 per barrel, could substantially reduce the company's profit margins and impact the cash flow available for dividends. As a "higher-cost operator," Evolution Petroleum is particularly vulnerable to periods of weak oil prices. The company's earnings have shown sensitivity to commodity prices, with a reported 60% year-over-year decline in Q1 fiscal 2026 due to lower commodity pricing and elevated lease operating costs.
2. Regulatory and Environmental Pressures, Coupled with Operational Risks of Enhanced Oil Recovery (EOR)
   Evolution Petroleum's operations, particularly its CO2 enhanced oil recovery (EOR) projects like the Delhi field, are exposed to various risks stemming from climate change concerns. These include potential regulatory changes, political scrutiny, litigation, and financial risks that could lead to increased operating and compliance costs or limit future production areas. The broader oil and gas sector faces increasing pressure to transition to cleaner energy solutions, and CO2-EOR, despite increasing oil production, carries environmental risks, including potential harm to groundwater, surface environments, and local communities, as well as the risk of CO2 leakage. Furthermore, EPM holds non-operating interests, meaning it relies on its partners to execute development and maintenance plans, which can be challenging, especially in aging assets like the Delhi or Hamilton Dome fields that require capital-intensive EOR methods to maintain production. These operations also face specific risks such as equipment degradation, leaks, blowouts, and challenges in managing contaminated fluids.
3. Financial Risks from Increased Debt and Operating Costs
   Evolution Petroleum has recently taken on a notable amount of long-term debt, reported at $53 million as of November 2025, which marks a shift from its historically low-debt position. This increased debt, alongside the company's characterization as a "higher-cost operator," elevates its financial risk, particularly during periods of weak oil prices. The company's main risk category is identified as Finance & Corporate, accounting for a significant portion of its total identified risks.

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The accelerated adoption of Electric Vehicles (EVs) threatens demand for petroleum products, directly impacting the oil segment of Evolution Petroleum's business.

The rapid expansion and decreasing costs of grid-scale renewable energy sources (solar, wind) combined with advanced battery storage threaten demand for natural gas, a key product for Evolution Petroleum, particularly in electricity generation.

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Evolution Petroleum Corporation's addressable markets for its main products and services in the United States are as follows:

• Upstream Oil and Natural Gas Market (U.S.): The U.S. upstream oil and gas market, which includes exploration and production activities, was approximately USD 102.6 billion in 2025.

• CO2 Enhanced Oil Recovery (EOR) Market (U.S.): The U.S. CO2 enhanced oil recovery market surpassed USD 22 billion in 2024 and is projected to increase to approximately USD 44.25 billion by 2034.

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Evolution Petroleum (EPM) is poised for future revenue growth over the next 2-3 years, driven by several key strategies and market factors:

1. Opportunistic Acquisitions: The company's core strategy involves the opportunistic acquisition of undervalued, proven oil and natural gas reserves and assets. Recent examples include acquisitions in the SCOOP/STACK area and TexMex, which have contributed to production growth and are expected to continue to do so. Evolution Petroleum aims to build and maintain a diversified portfolio through such strategic acquisitions.
2. Production Optimization and Development of Existing Assets: Evolution Petroleum focuses on maximizing output from its current asset base through methodical production optimization, selective development opportunities, and exploitation efforts. This includes ongoing development activity in fields like Chaveroo and continued work in the SCOOP/STACK play, as well as resolving operational issues to enhance production from existing properties, such as the Delhi Field.
3. Growth in Higher-Margin Mineral and Royalty Interests: The company is strategically expanding its portfolio of mineral and royalty interests. Acquisitions in areas like the SCOOP/STACK and Haynesville-Bossier Shale are expected to provide incremental high-margin production and meaningful contributions to revenue and cash flow, leveraging the inherently higher margins associated with these types of assets.
4. Favorable Commodity Price Environment, particularly for Natural Gas: While commodity prices are inherently volatile, Evolution Petroleum's diversified portfolio, which includes significant exposure to natural gas (54% natural gas, 15% oil, and 31% natural gas liquids), positions it to benefit from favorable natural gas price trends. Recent financial results indicate that higher realized natural gas prices have contributed positively to revenue and EBITDA, offsetting declines in other commodities, and the company utilizes hedging strategies to manage price risk.

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Share Repurchases

• Evolution Petroleum authorized a share repurchase program on September 8, 2022, allowing for repurchases of up to $25.0 million of common stock through December 31, 2024. Under this program, the company repurchased approximately 0.8 million shares at a total cost of around $4.6 million.
• In November 2023, the company initiated a Rule 10b5-1 plan to repurchase up to $0.8 million in shares, which was effective until June 30, 2024. During the nine months ended March 31, 2024, approximately 0.1 million shares were repurchased for about $0.8 million under this plan.

Share Issuance

• For the fiscal year 2025, Evolution Petroleum reported $3.84 million in common stock issuance.
• A director received a restricted stock award of 24,214 shares on December 4, 2025.
• The company acquired treasury stock during the nine months ended March 31, 2025, and 2024, to cover payroll tax withholding obligations for employee stock-based awards.

Outbound Investments

• In March 2025, Evolution Petroleum acquired non-operated oil and natural gas assets in New Mexico, Texas, and Louisiana for $9.0 million, which is expected to add approximately 440 net barrels of oil equivalent per day (BOEPD) of low-decline production.
• After the end of fiscal year 2025, the company made a $17 million acquisition of SCOOP/STACK royalty interests in August 2025.
• The company is expanding its minerals and royalty platform with recent Haynesville Shale acquisitions, which are anticipated to contribute meaningfully starting in fiscal Q3 2026.

Capital Expenditures

• Evolution Petroleum's capital expenditures were -$21.64 million for fiscal year 2025, -$49.63 million for fiscal year 2024, -$6.99 million for fiscal year 2023, and -$54.87 million for fiscal year 2022.
• The full-year fiscal 2026 capital expenditure guidance is projected to be between $4 million and $6 million.
• Primary focuses for capital expenditures include operational improvements at Tex-Mex, recovery of Delhi production, and efforts to achieve sustainable cost reductions at Barnett Shale.