Evolution Petroleum Corporation reported a notable increase in financial performance for the three months ended September 30, 2024, compared to the same period in 2023. Total revenues rose to $21.9 million, a 6.3% increase from $20.6 million, primarily driven by a 16.8% increase in crude oil revenues, which reached $14.7 million, up from $12.6 million. This growth was attributed to higher production volumes, despite a decrease in average realized prices per barrel of oil equivalent (BOE) by 8.2%.

The company’s net income for the quarter was $2.1 million, compared to $1.5 million in the prior year, reflecting a significant improvement in profitability. The net income per share also increased to $0.06 from $0.04. Operating cash flow surged to $7.6 million, up from $4.3 million, indicating enhanced operational efficiency.

Total operating costs for the quarter increased to $20.0 million from $18.7 million, with depletion expenses rising to $5.3 million, up 36.2% year-over-year. The increase in costs was partially offset by a reduction in other lease operating costs, which decreased by 12.2% due to the absence of CO2 purchases compared to the previous year.

In terms of strategic developments, Evolution Petroleum completed the acquisition of non-operated oil and natural gas assets in the SCOOP and STACK plays in Oklahoma for approximately $39.1 million in February 2024. This acquisition included interests in 260 producing wells and is expected to enhance the company’s production capabilities. Additionally, the company entered into a Participation Agreement with PEDEVCO for joint development in the Chaveroo oilfield, acquiring a 50% working interest in certain development blocks.

As of September 30, 2024, the company reported total assets of $157.9 million, a slight decrease from $162.9 million at the end of June 2024. Total liabilities also decreased to $78.3 million from $81.8 million, contributing to a reduction in total stockholders' equity to $79.6 million from $81.1 million. The company maintained a strong liquidity position with cash and cash equivalents of $6.9 million, up from $6.4 million.

The company declared a quarterly cash dividend of $0.12 per share on November 11, 2024, consistent with the previous year, and has cumulatively paid over $122.5 million in cash dividends since 2013. The Senior Secured Credit Facility remains fully drawn at $39.5 million, with a borrowing base of $50 million, and the company is in compliance with all financial covenants.