Evolution Petroleum reported a strong sequential rebound in its fiscal fourth quarter as higher energy prices, increased production and improved operations drove revenue and adjusted EBITDA sharply higher.
Fourth-quarter revenue reached $24.2 million, up 20% from $20.2 million in the third quarter and 15% from a year earlier. Net income rebounded to $4.6 million from a $8.9 million loss in the previous quarter.
Adjusted EBITDA more than doubled sequentially to $6.5 million from $3.1 million, although it remained below $8.6 million in the prior-year period.
Production averaged 6,901 barrels of oil equivalent per day during the quarter, up 3% sequentially. Full-year fiscal 2026 production averaged 7,077 BOEPD, slightly above fiscal 2025.
Evolution ended the year with 27.2 million barrels of oil equivalent in proved reserves, replacing more than 100% of its fiscal 2026 production. The company returned $16.9 million to shareholders through dividends during the year.
After the quarter, Evolution completed a $16 million acquisition of mineral and royalty interests in the Midland Basin. The acquired position encompasses approximately 3,420 net royalty acres across five Texas counties and includes more than 1,250 identified upside drilling locations.
The acquisition was financed with $12.8 million of proceeds from a common-stock offering and $3.2 million of credit-facility borrowings.
Evolution also maintained its quarterly dividend at $0.12 per share, marking its 52nd consecutive quarterly cash dividend since 2013. The company has returned approximately $151.7 million to shareholders through common-stock dividends to date.
KEY QUOTES:
“Fiscal 2026 was another important year for Evolution as we broadened the portfolio with strategic acquisitions, maintained $0.48 per share in dividends, and increased proved reserves over and above the roughly 2.6 MMBOE we produced during the year. Just as important, we finished the year with momentum. Many of the temporary items that weighed on fiscal Q3 rolled off as expected, and fiscal Q4 revenues rose 20% and Adjusted EBITDA more than doubled quarter over quarter.”
Kelly Loyd, President and CEO of Evolution Petroleum
