Following the release of its earnings report, Evolution Petroleum Corporation (NASDAQ: EPM) stock is witnessing a notable increase this morning. As of the most recent market check, shares of EPM were trading 15.95% higher at $5.38.
What Highlights Evolution has shared?
The release of Evolution Petroleum’s financial and operational results for the fourth quarter of its fiscal year and the full year ending June 30, 2024, highlights the company’s remarkable success. A quarterly cash dividend of $0.12 per common share was announced by the company for the first quarter of its fiscal year 2025.
This follows fiscal 2023’s record-breaking revenue and output from natural gas. This fiscal year, Evolution Petroleum has deliberately diversified its holdings to reduce the volatility of natural gas prices and increase its potential for organic growth in reserves and output.
Record Revenues and Strategic Acquisitions
The company reported record revenues and production in liquids for the year and successfully completed two significant transactions, adding 6.6 MMBOE of proved reserves, with many locations yet to be booked. Despite with a decrease in natural gas revenue, the company succeeded to post 17% rise in total sales to $21.2 million for the quarter, which was mostly driven by greater oil and NGL revenue.
Over the next ten years, EPM believes that its recent acquisitions will significantly boost cash flow and reinforce its dividend-focused strategy. Quarterly net income surged 644% to $1.2 million, or $0.04 per diluted share, while Adjusted EBITDA rose 72% to $8.0 million, reflecting increased revenue and reduced operating costs.
EPM is Strengthening and Diversifying Growth
In fiscal 2024, Evolution Petroleum expanded its drilling locations, adding over 300 in the SCOOP/STACK region and more than 80 at Chaveroo. The company participated in 22 SCOOP/STACK wells, which are outperforming initial projections. At Chaveroo, the early results of its first three horizontal San Andres wells exceeded estimates.
Additionally, at Delhi, Evolution Petroleum has commenced development in collaboration with ExxonMobil, with the first of three initial wells scheduled for drilling by the end of the calendar year.
