Financial & Operational Highlights
| ($ in thousands) | Q3 2026 | Q3 2025 | Q2 2026 | % Change vs Q3/Q3 | % Change vs Q3/Q2 | 2026 YTD | 2025 YTD | % Change vs YTD'25 | |||||||||||
| Average BOEPD | 6,700 | 6,667 | 7,380 | — | (9)% | 7,135 | 7,033 | 1% | |||||||||||
| Revenues | $ | 20,168 | $ | 22,561 | $ | 20,679 | (11)% | (2)% | $ | 62,135 | $ | 64,732 | (4)% | ||||||
| Net Income (Loss)(1) | $ | (8,932) | $ | (2,179) | $ | 1,065 | 310% | NM | $ | (7,043) | $ | (1,939) | 263% | ||||||
| Adjusted Net Income (Loss)(1)(2) | $ | (2,941) | $ | 806 | $ | 257 | NM | NM | $ | (2,892) | $ | 701 | NM | ||||||
| Adjusted EBITDA(3) | $ | 3,107 | $ | 7,421 | $ | 7,994 | (58)% | (61)% | $ | 18,402 | $ | 1,234 | (13)% | ||||||
| (1) "NM" means "Not Meaningful." | |||||||||||||||||||
| (2) Adjusted Net Income is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information. | |||||||||||||||||||
| (3) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information. | |||||||||||||||||||
- Fiscal Q3 production increased slightly year-over-year to 6,700 barrels of oil equivalent per day (“BOEPD”) from 6,667 BOEPD in the prior year period.
- Production remained stable during the quarter, as contributions from recent acquisitions partially offset weather-related disruptions and downtime.
- Adjusted Net Income (Loss) and Adjusted EBITDA were impacted by:
-
$3.2 million in departure from the prior-year period differentials, including$1.2 million related to prior period adjustments at Delhi Field.$2.2 million in realized hedge losses.- Downtime of over 300 BOEPD related to extreme weather conditions in January, optimization activities at certain facilities and unexpected equipment failures. With these issues resolved, production is substantially restored.
- Returned approximately
$4.3 million to shareholders in the form of cash dividends during fiscal Q3. - Evolution expects 23 wells tied to its
Louisiana royalty acquisitions to begin producing in the near term, meaningfully driving revenue and cash flow contributions in fiscal Q4 2026 and onward.
M&A Highlights
- Acquired mineral and royalty interests across multiple
Louisiana parishes fromDecember 2025 throughMarch 2026 , for a total consideration of approximately$5.0 million , primarily consisting of proved producing wells, drilled but not yet producing wells, and permitted locations. - These transactions added approximately 350 net royalty acres (“NRA”), including 17 gross PDP locations as of quarter-end, and over 50 gross future locations, most of which is expected to begin producing in the near term, enhancing the Company’s inventory of capital-light assets.
- Subsequent to quarter-end, Evolution high-graded its minerals and royalties portfolio by agreeing to sell longer-dated locations and acquiring cash-flowing properties with near-term upside.
- Agreed to divest a portion of non-core, unproved, mineral acres from its SCOOP/STACK portfolio for total consideration of approximately
$3.3 million . - Acquired an additional 50 NRA in the heart of the
Haynesville and Bossier Shales, consisting of PDP’s, DUCs, and near-term locations for approximately$0.5 million .
- Agreed to divest a portion of non-core, unproved, mineral acres from its SCOOP/STACK portfolio for total consideration of approximately
Management Comments
“Operationally, we made encouraging progress across our asset base, identifying impactful opportunities. For example, the TexMex assets offer meaningful near-term upside, with more than 100 net BOEPD of incremental production to be added by the end of our fiscal 4th quarter as ongoing optimization work is completed. At Chaveroo, since quarter-end, we have completed conversion of all but one of our wells from electric submersible pumps ("ESP") to rod pumps, as water production declined as projected, which should reduce operating costs and allow for longer run-times. These are just two of the many impactful optimization projects we are working on with our operators across the portfolio.
“On the acquisition front, we continued executing on our mineral and royalty strategy. During the quarter, we expanded our
“Looking ahead, we remain committed to our long-standing capital allocation framework and believe we are well positioned to protect the balance sheet, support a dividend that we have maintained for more than 50 consecutive quarters, which we believe is durable through cycles, deploy capital where we see compelling risk-adjusted returns, and continue compounding long-term value for our shareholders.”
Fiscal Third Quarter 2026 Financial Results
Total revenues decreased 11% to
Lease operating costs (“LOE”) improved to
Depletion, depreciation, and accretion expense was
General and administrative (“G&A”) expenses (excluding stock-based compensation) remained flat at
The Company reported net loss of
Adjusted EBITDA was
Production & Pricing
| Average price per unit: | Q3 2026 | Q3 2025 | % Change vs Q3/Q3 | |||
| Crude oil (BBL) | $ | 59.18 | $ | 68.42 | (14 | )% |
| Natural gas (MCF) | 3.70 | 3.87 | (4 | )% | ||
| Natural Gas Liquids (BBL) | 24.59 | 32.28 | (24 | )% | ||
| Equivalent (BOE) | 33.45 | 37.60 | (11 | )% | ||
Total production for the third quarter of fiscal 2026 increased slightly to 6,700 net BOEPD compared to 6,667 net BOEPD in the year-ago period. Total production for the third quarter of fiscal 2026 included approximately 1,967 barrels per day (“BOPD”) of crude oil, 3,644 BOEPD of natural gas, and 1,089 BOEPD of NGLs. The change in total production was primarily driven by production adds from the Company’s SCOOP/STACK Minerals Acquisition in
The Company’s average realized commodity price (excluding the impact of derivative contracts) decreased to
Operations Update
The Company continued to expand its mineral and royalty position, completing two mineral acreage acquisitions in the
At SCOOP/STACK, quarterly production was impacted by 64 BOEPD due to the winter storm in January. Additionally, there are 7 gross wells in progress and 12 gross wells on production that we are still waiting for first production data and revenue. Production from mineral and royalty interests acquired in
At Chaveroo, the January winter storm and gas interference on an ESP affected production by 30 net BOEPD for the quarter. Subsequent to quarter-end, we converted that well from ESP to a rod pump, and all but one of our 7 wells have now been converted to rod pumps. The Company expects to secure permits for its next drilling block, comprising six gross wells, before the end of the 4th fiscal quarter.
At TexMex, oil production increased quarter over quarter due to a successful workover program at the end of the prior quarter. However, January winter storms not only impacted production but also caused power outages and surface equipment damage that required repairs. This led to higher expenses in the quarter. We expect TexMex to continue to improve substantially. Subsequent to quarter-end, we began a new workover program, which we expect will increase production by an additional 100 net BOEPD by the end of fiscal Q4.
At the
At Barnett, quarterly production was heavily impacted by the winter storm, resulting in a decline of approximately 160 BOEPD. The impacts carried into February and were restored by March.
At
Balance Sheet, Liquidity, and Capital Spending
On
Cash Dividend on Common Stock
On
Conference Call
As previously announced,
About
Cautionary Statement
All forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "anticipate," "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement.
Contact
Investor Relations
(713) 935-0122
ir@evolutionpetroleum.com
Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||
| Revenues | ||||||||||||||||||||
| Crude oil | $ | 10,474 | $ | 11,769 | $ | 10,696 | $ | 34,042 | $ | 38,269 | ||||||||||
| Natural gas | 7,284 | 7,790 | 7,441 | 20,625 | 17,868 | |||||||||||||||
| Natural gas liquids | 2,410 | 3,002 | 2,542 | 7,468 | 8,595 | |||||||||||||||
| Total revenues | 20,168 | 22,561 | 20,679 | 62,135 | 64,732 | |||||||||||||||
| Operating costs | ||||||||||||||||||||
| Lease operating costs | 12,959 | 13,388 | 11,510 | 37,556 | 37,971 | |||||||||||||||
| Depletion, depreciation, and accretion | 5,294 | 5,014 | 5,919 | 17,174 | 16,172 | |||||||||||||||
| General and administrative expenses | 2,473 | 2,573 | 2,592 | 7,390 | 7,754 | |||||||||||||||
| Total operating costs | 20,726 | 20,975 | 20,021 | 62,120 | 61,897 | |||||||||||||||
| Income (loss) from operations | (558 | ) | 1,586 | 658 | 15 | 2,835 | ||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Net gain (loss) on derivative contracts | (9,869 | ) | (3,802 | ) | 2,235 | (5,453 | ) | (3,223 | ) | |||||||||||
| Interest and other income | 24 | 55 | 12 | 46 | 164 | |||||||||||||||
| Interest expense | (960 | ) | (705 | ) | (1,003 | ) | (2,880 | ) | (2,292 | ) | ||||||||||
| Income (loss) before income taxes | (11,363 | ) | (2,866 | ) | 1,902 | (8,272 | ) | (2,516 | ) | |||||||||||
| Income tax (expense) benefit | 2,431 | 687 | (837 | ) | 1,229 | 577 | ||||||||||||||
| Net income (loss) | $ | (8,932 | ) | $ | (2,179 | ) | $ | 1,065 | $ | (7,043 | ) | $ | (1,939 | ) | ||||||
| Net income (loss) per common share: | ||||||||||||||||||||
| Basic | $ | (0.26 | ) | $ | (0.07 | ) | $ | 0.03 | $ | (0.22 | ) | $ | (0.07 | ) | ||||||
| Diluted | $ | (0.26 | ) | $ | (0.07 | ) | $ | 0.03 | $ | (0.22 | ) | $ | (0.07 | ) | ||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||||||
| Basic | 34,315 | 33,433 | 33,904 | 33,979 | 33,027 | |||||||||||||||
| Diluted | 34,315 | 33,433 | 34,025 | 33,979 | 33,027 | |||||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except share and per share amounts) | ||||||
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 2,616 | $ | 2,507 | ||
| Receivables from crude oil, natural gas, and natural gas liquids revenues | 9,506 | 10,804 | ||||
| Derivative contract assets | 2,428 | 1,777 | ||||
| Prepaid expenses and other current assets | 1,983 | 2,287 | ||||
| Total current assets | 16,533 | 17,375 | ||||
| Property and equipment, net of depletion, depreciation, and impairment | ||||||
| Oil and natural gas properties—full-cost method of accounting: | ||||||
| Oil and natural gas properties, subject to amortization, net | 147,998 | 142,248 | ||||
| Oil and natural gas properties, not subject to amortization | 3,804 | — | ||||
| Total property and equipment, net | 151,802 | 142,248 | ||||
| Other noncurrent assets | ||||||
| Derivative contract assets | 634 | 198 | ||||
| Other assets, net | 791 | 431 | ||||
| Total assets | $ | 169,760 | $ | 160,252 | ||
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 12,588 | $ | 12,901 | ||
| Accrued liabilities and other | 5,619 | 6,909 | ||||
| Derivative contract liabilities | 8,514 | 1,577 | ||||
| State and federal taxes payable | 425 | — | ||||
| Total current liabilities | 27,146 | 21,387 | ||||
| Long term liabilities | ||||||
| Senior secured credit facility | 56,500 | 37,500 | ||||
| Deferred income taxes | 3,829 | 6,234 | ||||
| Asset retirement obligations | 22,700 | 21,535 | ||||
| Derivative contract liabilities | 808 | 1,783 | ||||
| Operating lease liability | 369 | — | ||||
| Total liabilities | 111,352 | 88,439 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity | ||||||
| Common stock; par value | ||||||
| outstanding 35,821,410 and 34,337,188 shares as of | ||||||
| and | 36 | 34 | ||||
| Additional paid-in capital | 52,899 | 46,650 | ||||
| Retained earnings | 5,473 | 25,129 | ||||
| Total stockholders' equity | 58,408 | 71,813 | ||||
| Total liabilities and stockholders' equity | $ | 169,760 | $ | 160,252 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| Net income (loss) | $ | (8,932 | ) | $ | (2,179 | ) | $ | 1,065 | $ | (7,043 | ) | $ | (1,939 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||||||
| Depletion, depreciation, and accretion | 5,294 | 5,014 | 5,919 | 17,174 | 16,172 | |||||||||||||||
| Stock-based compensation | 595 | 642 | 613 | 1,745 | 1,860 | |||||||||||||||
| Settlement of asset retirement obligations | (51 | ) | (66 | ) | (161 | ) | (231 | ) | (346 | ) | ||||||||||
| Deferred income taxes | (1,106 | ) | (2,101 | ) | (913 | ) | (2,405 | ) | (2,130 | ) | ||||||||||
| Unrealized (gain) loss on derivative contracts | 7,621 | 3,926 | (1,443 | ) | 4,875 | 3,426 | ||||||||||||||
| Accrued settlements on derivative contracts | 688 | (57 | ) | 375 | 678 | (114 | ) | |||||||||||||
| Amortization of debt issuance costs | 39 | — | 39 | 117 | — | |||||||||||||||
| Other | 7 | (4 | ) | (5 | ) | (1 | ) | (7 | ) | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||||||||
| Receivables from crude oil, natural gas, and natural gas liquids revenues | 74 | (26 | ) | (1,046 | ) | 1,583 | (34 | ) | ||||||||||||
| Prepaid expenses and other current assets | (1,120 | ) | 965 | 157 | 239 | 1,400 | ||||||||||||||
| Accounts payable, accrued liabilities and other | 1,227 | 1,149 | (392 | ) | (437 | ) | 4,382 | |||||||||||||
| State and federal taxes payable | (847 | ) | — | 1,217 | 425 | (74 | ) | |||||||||||||
| Net cash provided by operating activities | 3,489 | 7,263 | 5,425 | 16,719 | 22,596 | |||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Acquisition deposits | — | (1,800 | ) | — | — | (1,800 | ) | |||||||||||||
| Acquisition of oil and natural gas properties | (4,662 | ) | (20 | ) | 222 | (21,308 | ) | (351 | ) | |||||||||||
| Capital expenditures for oil and natural gas properties | (1,263 | ) | (4,404 | ) | (839 | ) | (5,920 | ) | (7,902 | ) | ||||||||||
| Net cash used in investing activities | (5,925 | ) | (6,224 | ) | (617 | ) | (27,228 | ) | (10,053 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Common stock dividends paid | (4,261 | ) | (4,109 | ) | (4,195 | ) | (12,613 | ) | (12,224 | ) | ||||||||||
| Common stock repurchases, including stock surrendered for tax withholding | (43 | ) | (71 | ) | (50 | ) | (225 | ) | (262 | ) | ||||||||||
| Borrowings under senior secured credit facility | 2,000 | — | 2,500 | 22,000 | — | |||||||||||||||
| Repayments of senior secured credit facility | — | (4,000 | ) | (1,000 | ) | (3,000 | ) | (4,000 | ) | |||||||||||
| Debt issuance costs | — | — | — | (379 | ) | — | ||||||||||||||
| Issuance of common stock | 3,672 | 1,145 | 1,006 | 4,944 | 3,404 | |||||||||||||||
| Offering costs | (78 | ) | (70 | ) | (21 | ) | (109 | ) | (306 | ) | ||||||||||
| Net cash provided by (used in) financing activities | 1,290 | (7,105 | ) | (1,760 | ) | 10,618 | (13,388 | ) | ||||||||||||
| Net increase (decrease) in cash and cash equivalents | (1,146 | ) | (6,066 | ) | 3,048 | 109 | (845 | ) | ||||||||||||
| Cash and cash equivalents, beginning of period | 3,762 | 11,667 | 714 | 2,507 | 6,446 | |||||||||||||||
| Cash and cash equivalents, end of period | $ | 2,616 | $ | 5,601 | $ | 3,762 | $ | 2,616 | $ | 5,601 | ||||||||||
Non-GAAP Reconciliation – Adjusted EBITDA (Unaudited) (In thousands) | ||||||||||||||||||||
| Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items. | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||
| Net income (loss) | $ | (8,932 | ) | $ | (2,179 | ) | $ | 1,065 | $ | (7,043 | ) | $ | (1,939 | ) | ||||||
| Adjusted by: | ||||||||||||||||||||
| Interest expense | 960 | 705 | 1,003 | 2,880 | 2,292 | |||||||||||||||
| Income tax expense (benefit) | (2,431 | ) | (687 | ) | 837 | (1,229 | ) | (577 | ) | |||||||||||
| Depletion, depreciation, and accretion | 5,294 | 5,014 | 5,919 | 17,174 | 16,172 | |||||||||||||||
| Stock-based compensation | 595 | 642 | 613 | 1,745 | 1,860 | |||||||||||||||
| Unrealized loss (gain) on derivative contracts | 7,621 | 3,926 | (1,443 | ) | 4,875 | 3,426 | ||||||||||||||
| Adjusted EBITDA | $ | 3,107 | $ | 7,421 | $ | 7,994 | $ | 18,402 | $ | 21,234 | ||||||||||
Non-GAAP Reconciliation – Adjusted Net Income (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | ||||||||||||||||
| As Reported: | ||||||||||||||||||||
| Net income (loss), as reported | $ | (8,932 | ) | $ | (2,179 | ) | $ | 1,065 | $ | (7,043 | ) | $ | (1,939 | ) | ||||||
| Impact of Selected Items: | ||||||||||||||||||||
| Unrealized loss (gain) on commodity contracts | 7,621 | 3,926 | (1,443 | ) | 4,875 | 3,426 | ||||||||||||||
| Selected items, before income taxes | $ | 7,621 | $ | 3,926 | $ | (1,443 | ) | $ | 4,875 | $ | 3,426 | |||||||||
| Income tax effect of selected items(1) | 1,630 | 941 | (635 | ) | 724 | 786 | ||||||||||||||
| Selected items, net of tax | $ | 5,991 | $ | 2,985 | $ | (808 | ) | $ | 4,151 | $ | 2,640 | |||||||||
| As Adjusted: | ||||||||||||||||||||
| Net income (loss), excluding selected items(2) | $ | (2,941 | ) | $ | 806 | $ | 257 | $ | (2,892 | ) | $ | 701 | ||||||||
| Undistributed earnings allocated to unvested restricted stock | (105 | ) | (96 | ) | (104 | ) | (291 | ) | (274 | ) | ||||||||||
| Net income (loss), excluding selected items for earnings per share calculation | $ | (3,046 | ) | $ | 710 | $ | 153 | $ | (3,183 | ) | $ | 427 | ||||||||
| Net income (loss) per common share — Basic, as reported | $ | (0.26 | ) | $ | (0.07 | ) | $ | 0.03 | $ | (0.22 | ) | $ | (0.07 | ) | ||||||
| Impact of selected items | 0.17 | 0.09 | (0.03 | ) | 0.13 | 0.08 | ||||||||||||||
| Net income (loss) per common share — Basic, excluding selected items(2) | $ | (0.09 | ) | $ | 0.02 | $ | — | $ | (0.09 | ) | $ | 0.01 | ||||||||
| Net income (loss) per common share — Diluted, as reported | $ | (0.26 | ) | $ | (0.07 | ) | $ | 0.03 | $ | (0.22 | ) | $ | (0.07 | ) | ||||||
| Impact of selected items | 0.17 | 0.09 | (0.03 | ) | 0.13 | 0.08 | ||||||||||||||
| Net income (loss) per common share — Diluted, excluding selected items(2)(3) | $ | (0.09 | ) | $ | 0.02 | $ | — | $ | (0.09 | ) | $ | 0.01 | ||||||||
(1) The tax impact for the three months ended | ||||||||||||||||||||
| (2) Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with | ||||||||||||||||||||
| (3) The impact of selected items for the three months ended | ||||||||||||||||||||
Supplemental Information on Oil and Natural Gas Operations (Unaudited) (In thousands, except per unit and per BOE amounts) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| 2026 | 2025 | 2025 | 2026 | 2025 | |||||||||||
| Revenues: | |||||||||||||||
| Crude oil | $ | 10,474 | $ | 11,769 | $ | 10,696 | $ | 34,042 | $ | 38,269 | |||||
| Natural gas | 7,284 | 7,790 | 7,441 | 20,625 | 17,868 | ||||||||||
| Natural gas liquids | 2,410 | 3,002 | 2,542 | 7,468 | 8,595 | ||||||||||
| Total revenues | $ | 20,168 | $ | 22,561 | $ | 20,679 | $ | 62,135 | $ | 64,732 | |||||
| Lease operating costs: | |||||||||||||||
| Ad valorem and production taxes | $ | 1,317 | $ | 1,473 | $ | 588 | $ | 3,325 | $ | 4,328 | |||||
| Gathering, transportation, and other costs | 2,834 | 2,913 | 2,667 | 8,393 | 8,592 | ||||||||||
| Other lease operating costs | 8,808 | 9,002 | 8,255 | 25,838 | 25,051 | ||||||||||
| Total lease operating costs | $ | 12,959 | $ | 13,388 | $ | 11,510 | $ | 37,556 | $ | 37,971 | |||||
| Depletion of full cost proved oil and natural gas properties | $ | 4,900 | $ | 4,607 | $ | 5,532 | $ | 15,992 | $ | 14,956 | |||||
| Production: | |||||||||||||||
| Crude oil (MBBL) | 177 | 172 | 193 | 577 | 555 | ||||||||||
| Natural gas (MMCF) | 1,968 | 2,011 | 2,241 | 6,359 | 6,364 | ||||||||||
| Natural gas liquids (MBBL) | 98 | 93 | 112 | 318 | 311 | ||||||||||
| Equivalent (MBOE)(1) | 603 | 600 | 679 | 1,955 | 1,927 | ||||||||||
| Average daily production (BOEPD)(1) | 6,700 | 6,667 | 7,380 | 7,135 | 7,033 | ||||||||||
| Average price per unit:(2) | |||||||||||||||
| Crude oil (BBL) | $ | 59.18 | $ | 68.42 | $ | 55.42 | $ | 59.00 | $ | 68.95 | |||||
| Natural gas (MCF) | 3.70 | 3.87 | 3.32 | 3.24 | 2.81 | ||||||||||
| Natural Gas Liquids (BBL) | 24.59 | 32.28 | 22.70 | 23.48 | 27.64 | ||||||||||
| Equivalent (BOE)(1) | $ | 33.45 | $ | 37.60 | $ | 30.46 | $ | 31.78 | $ | 33.59 | |||||
| Average cost per unit: | |||||||||||||||
| Ad valorem and production taxes | $ | 2.18 | $ | 2.46 | $ | 0.87 | $ | 1.70 | $ | 2.25 | |||||
| Gathering, transportation, and other costs | 4.70 | 4.86 | 3.93 | 4.29 | 4.46 | ||||||||||
| Other lease operating costs | 14.61 | 15.00 | 12.16 | 13.22 | 13.00 | ||||||||||
| Total lease operating costs | $ | 21.49 | $ | 22.32 | $ | 16.96 | $ | 19.21 | $ | 19.71 | |||||
| Depletion of full cost proved oil and natural gas properties | $ | 8.13 | $ | 7.68 | $ | 8.15 | $ | 8.18 | $ | 7.76 | |||||
| (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil. | |||||||||||||||
| (2) Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting. | |||||||||||||||
Summary of Production Volumes and Average Sales Price (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||
| Volume | Price | Volume | Price | Volume | Price | |||||||||||||
| Production: | ||||||||||||||||||
| Crude oil (MBBL) | ||||||||||||||||||
| SCOOP/STACK | 27 | $ | 69.24 | 28 | $ | 71.36 | 30 | $ | 58.86 | |||||||||
| Chaveroo Field | 20 | 63.87 | 8 | 56.78 | 26 | 53.39 | ||||||||||||
| 6 | 63.70 | 7 | 67.69 | 7 | 52.95 | |||||||||||||
| 28 | 64.57 | 34 | 64.35 | 31 | 52.15 | |||||||||||||
| 2 | 66.12 | 3 | 68.03 | 2 | 55.34 | |||||||||||||
| 32 | 57.23 | 34 | 58.88 | 34 | 47.23 | |||||||||||||
| Delhi Field | 43 | 43.24 | 58 | 76.04 | 48 | 61.78 | ||||||||||||
| TexMex | 17 | 70.47 | — | — | 15 | 58.24 | ||||||||||||
| Other | 2 | 57.25 | — | — | — | — | ||||||||||||
| Total | 177 | $ | 59.18 | 172 | $ | 68.42 | 193 | $ | 55.42 | |||||||||
| Natural gas (MMCF) | ||||||||||||||||||
| SCOOP/STACK | 389 | $ | 4.13 | 317 | $ | 4.91 | 458 | $ | 3.56 | |||||||||
| 675 | 3.45 | 758 | 4.02 | 728 | 3.38 | |||||||||||||
| 24 | 3.28 | 32 | 3.89 | 28 | 2.46 | |||||||||||||
| 801 | 3.87 | 904 | 3.39 | 925 | 3.21 | |||||||||||||
| TexMex | 59 | 1.97 | — | — | 102 | 3.14 | ||||||||||||
| Other | 20 | 2.88 | — | — | — | — | ||||||||||||
| Total | 1,968 | $ | 3.70 | 2,011 | $ | 3.87 | 2,241 | $ | 3.32 | |||||||||
| Natural gas liquids (MBBL) | ||||||||||||||||||
| SCOOP/STACK | 27 | $ | 19.01 | 13 | $ | 27.84 | 28 | $ | 19.90 | |||||||||
| 8 | 25.50 | 8 | 32.14 | 8 | 23.10 | |||||||||||||
| 7 | 18.47 | 8 | 23.74 | 7 | 14.13 | |||||||||||||
| 47 | 28.49 | 49 | 33.48 | 55 | 25.38 | |||||||||||||
| Delhi Field | 9 | 23.36 | 15 | 37.20 | 14 | 23.17 | ||||||||||||
| Total | 98 | $ | 24.59 | 93 | $ | 32.28 | 112 | $ | 22.70 | |||||||||
| Equivalent (MBOE)(1) | ||||||||||||||||||
| SCOOP/STACK | 119 | $ | 33.66 | 94 | $ | 41.90 | 134 | $ | 29.37 | |||||||||
| Chaveroo Field | 20 | 63.87 | 8 | 56.78 | 26 | 53.39 | ||||||||||||
| 127 | 23.12 | 141 | 26.63 | 136 | 22.02 | |||||||||||||
| 39 | 52.02 | 47 | 53.08 | 43 | 41.46 | |||||||||||||
| 183 | 25.09 | 203 | 24.13 | 212 | 21.18 | |||||||||||||
| 32 | 57.23 | 34 | 58.88 | 34 | 47.23 | |||||||||||||
| Delhi Field | 52 | 39.44 | 73 | 68.19 | 62 | 53.30 | ||||||||||||
| TexMex | 27 | 49.03 | — | — | 32 | 37.50 | ||||||||||||
| Other | 4 | 19.85 | — | — | — | — | ||||||||||||
| Total | 603 | $ | 33.45 | 600 | $ | 37.60 | 679 | $ | 30.46 | |||||||||
| Average daily production (BOEPD)(1) | ||||||||||||||||||
| SCOOP/STACK | 1,322 | 1,044 | 1,457 | |||||||||||||||
| Chaveroo Field | 222 | 89 | 283 | |||||||||||||||
| 1,411 | 1,567 | 1,478 | ||||||||||||||||
| 433 | 522 | 467 | ||||||||||||||||
| 2,033 | 2,256 | 2,303 | ||||||||||||||||
| 356 | 378 | 370 | ||||||||||||||||
| Delhi Field | 578 | 811 | 674 | |||||||||||||||
| TexMex | 300 | — | 348 | |||||||||||||||
| Other | 45 | — | — | |||||||||||||||
| Total | 6,700 | 6,667 | 7,380 | |||||||||||||||
| (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil. | ||||||||||||||||||
Summary of Average Production Costs (Unaudited) | ||||||||||||||||||
| Three Months Ended | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||
| Amount | Price | Amount | Price | Amount | Price | |||||||||||||
| Production costs (in thousands, except per BOE): | ||||||||||||||||||
| Total lease operating costs(1) | ||||||||||||||||||
| SCOOP/STACK | $ | 1,064 | $ | 8.96 | $ | 1,106 | $ | 11.74 | $ | 1,040 | $ | 7.72 | ||||||
| Chaveroo Field | 320 | 15.92 | 128 | 15.77 | 311 | 12.07 | ||||||||||||
| 2,047 | 16.21 | 2,184 | 15.51 | 1,998 | 14.68 | |||||||||||||
| 1,162 | 30.09 | 1,476 | 31.45 | 1,296 | 30.29 | |||||||||||||
| 3,747 | 20.49 | 3,739 | 18.47 | 2,937 | 13.98 | |||||||||||||
| 1,226 | 37.73 | 1,237 | 36.36 | 1,200 | 35.56 | |||||||||||||
| Delhi Field | 1,836 | 34.13 | 3,518 | 48.04 | 1,506 | 24.26 | ||||||||||||
| TexMex | 1,557 | 57.61 | — | — | 1,222 | 38.03 | ||||||||||||
| Total | $ | 12,959 | $ | 21.49 | $ | 13,388 | $ | 22.32 | $ | 11,510 | $ | 16.96 | ||||||
| (1) Total lease operating costs includes lifting costs; workover expenses; and gathering, transportation, processing and other expenses. | ||||||||||||||||||
Summary of Open Derivative Contracts (Unaudited) | ||||||||||||||||||
| For more information on the Company's hedging practices, see Note 7 to its financial statements included on Form 10-Q filed with the The Company has the following open crude oil and natural gas derivative contracts: | ||||||||||||||||||
| Volumes in | Weighted Average Price per MMBTU/BBL | |||||||||||||||||
| Period | Commodity | Instrument | MMBTU/BBL | Swap | Sub Floor | Floor | Ceiling | |||||||||||
| Crude Oil | Fixed-Price Swap | 140,441 | $ | 60.24 | ||||||||||||||
| Crude Oil | Fixed-Price Swap | 108,222 | 65.12 | |||||||||||||||
| Crude Oil | Two-Way Collar | 115,372 | $ | 56.33 | $ | 64.11 | ||||||||||||
| Crude Oil | Two-Way Collar | 138,157 | 58.13 | 69.37 | ||||||||||||||
| Crude Oil | Three-Way Collar | 67,002 | $ | 50.00 | 58.83 | 70.36 | ||||||||||||
| Natural Gas | Fixed-Price Swap | 2,532,778 | 3.62 | |||||||||||||||
| Natural Gas | Fixed-Price Swap | 1,537,008 | 3.54 | |||||||||||||||
| Natural Gas | Two-Way Collar | 1,749,713 | 3.55 | 4.65 | ||||||||||||||
| Natural Gas | Two-Way Collar | 850,794 | 3.62 | 5.60 | ||||||||||||||
(1) Adjusted net income (loss) is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
(2) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
