Evolution Petroleum Corporation
Acquisition is Immediately Accretive to Cash Flow per Share
Based on Current Development Expectations, Evolution Expects Production from the Acquisition to More Than Double by End of Fiscal 2029
HOUSTON, Aug. 20, 2026 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) has closed its previously announced acquisition of mineral and royalty (“M&R”) interests in the core Midland Basin of the Permian Basin (the “Acquisition”). The total purchase price for the Acquisition was $16 million, subject to customary post-closing adjustments, with an effective date of August 1, 2026 (the “Effective Date”).
The acquired interests span approximately 3,420 net royalty acres across Reagan, Upton, Glasscock, Midland, and Martin Counties, Texas. The Acquisition was funded with net proceeds from the Company’s recently announced public offering of common stock, cash on hand, and borrowings under its revolving credit facility.
Acquisition Highlights:
High-margin, capital-light cash flow that strengthens dividend coverage. The acquired M&R interests require no lifting expense, future drilling capital, or overhead, and are expected to generate approximately $3.9 million of next-twelve-month (“NTM”) asset-level cash flow, implying an acquisition multiple of approximately 4.1×1.
Substantial producing base and development inventory in the core Permian/Midland Basin. The interests include royalties on an estimated 832 producing wells, 7 completed wells, 34 drilled but uncompleted wells (“DUCs”), 27 permitted wells, and approximately 1,257 upside locations. Estimated current production is approximately 210 BOE/d and consists of approximately 65% liquids (38% oil and 27% NGLs). The Company expects daily production from the Acquisition to more than double by fiscal 2029, without any capital expenditures to Evolution.
Greater earnings diversification. M&R interests are expected to contribute approximately 20% of Evolution’s pro forma fiscal 2027 asset cash flow mix, compared to less than 10% in fiscal 20262.
Increased liquidity and financial flexibility. Pro forma for this transaction, Evolution’s total liquidity has increased to approximately $19 million, including additional borrowing capacity on its senior secured reserve-based credit facility.
Kelly Loyd, President and Chief Executive Officer, commented: “Closing this acquisition marks an important step in the continued evolution of our portfolio. We have added a high-quality, liquids-weighted royalty position in the core Permian/Midland Basin at a compelling valuation, with no associated drilling capital or lifting expenses. Based on current development expectations of 125 newly completed wells per year going forward, we expect significant daily production growth from the Acquisition, with production more than doubling from current levels by the end of fiscal 2029.
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