Form type: 10-Q
Period end: 2026-03-31
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | Nine Months Ended March 31, 2026 | Nine Months Ended March 31, 2025 | |
|---|---|---|---|---|
| Revenue | 20,168,000 | 22,561,000 | ||
| Total Revenue | ||||
| Cost of revenue | 12,959,000 | 13,388,000 | ||
| Total COGS | ||||
| Gross Profit | ||||
| Depreciation, depletion and amortization | 5,294,000 | 5,014,000 | ||
| General and administrative | 2,473,000 | 2,573,000 | ||
| Income tax expense (benefit) | -2,431,000 | -687,000 | ||
| Interest expense | 960,000 | 705,000 | ||
| Net gain (loss) on derivative contracts | 9,869,000 | 3,802,000 | ||
| Other income statement items (derived) | -24,000 | -55,000 | ||
| Total Expenses | ||||
| Net Income | - | - | - | - |
| Net income (loss) available to common stockholders | - | - | ||
| Basic earnings per share | - | - |
| March 31, 2026 | June 30, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 9,506,000 | 10,804,000 |
| Cash and cash equivalents | 2,616,000 | 2,507,000 |
| Operating lease right-of-use assets | 432,000 | 58,000 |
| Other assets (derived) | 154,432,000 | 144,165,000 |
| Other noncurrent assets | 791,000 | 431,000 |
| Prepaid expenses and other current assets | 1,983,000 | 2,287,000 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable | 12,588,000 | 12,901,000 |
| Accrued liabilities | 5,619,000 | 6,909,000 |
| Asset retirement obligations | 22,700,000 | 21,535,000 |
| Deferred tax liabilities | 3,829,000 | 6,234,000 |
| Operating lease liabilities, current | 70,000 | 66,000 |
| Operating lease liabilities, noncurrent | 369,000 | 0 |
| Other liabilities (derived) | 65,752,000 | 40,794,000 |
| Taxes payable | 425,000 | 0 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 58,408,000 | 71,813,000 |
| Total Equity | ||
| Nine Months Ended March 31, 2026 | Nine Months Ended March 31, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | -7,043,000 | -1,939,000 |
| Depreciation and amortization | 17,174,000 | 16,172,000 |
| Stock-based compensation | 1,745,000 | 1,860,000 |
| Changes in operating assets and liabilities, net | 4,843,000 | 6,503,000 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -27,228,000 | -10,053,000 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | 10,618,000 | -13,388,000 |
| Net cash from financing activities | - | |
| Net change in cash | - | |
| Cash at beginning of period | 6,446,000 | |
| Cash at end of period | 5,601,000 | |
| Nine Months Ended March 31, 2026 | Nine Months Ended March 31, 2025 | |
|---|---|---|
| Balance at beginning of period | 71,813,000 | 81,127,000 |
| Net income | -7,043,000 | -1,939,000 |
| Other equity movements | -6,362,000 | -7,528,000 |
| Balance at end of period | 58,408,000 | 71,660,000 |
Evolution Petroleum Corp is a public reporting company classified under Crude Petroleum & Natural Gas. EVOLUTION PETROLEUM CORP is a public reporting company classified under Crude Petroleum & Natural Gas. The accompanying condensed financial statements as of and for the period ended March 31, 2026 are unaudited and have been prepared from the Company's accounting records. In the opinion of management, the accompanying statements include all adjustments necessary for a fair presentation of the interim periods presented, and the results of operations for the interim period are not necessarily indicative of the results to be expected for the full fiscal year.
Revenue for the period ended March 31, 2026 was $20,168,000, compared with $22,561,000 in the prior period, a decrease of 10.6%. Cost of revenue was $12,959,000 for the current period, compared with $13,388,000 in the prior period, a decrease of 3.2%. Accounts receivable was $9,506,000 at March 31, 2026, compared with $10,707,000 in the prior period, a decrease of 11.2%. Revenue is recognized when control of the Company's products transfers to the customer in an amount that reflects the consideration the Company expects to be entitled to receive. [COMPLETE: description of revenue recognition policies and disaggregation of revenue by product or market]
The Company reported a net loss of $8,932,000 for the period ended March 31, 2026. Weighted-average basic shares outstanding were 34,315,000, resulting in a basic loss per share of $(0.26). With respect to debt and lease obligations, operating lease liabilities consisted of a current portion of $70,000 and a noncurrent portion of $369,000 at March 31, 2026. Operating lease right-of-use assets were $432,000 at March 31, 2026, compared with $80,000 in the prior period. Total liabilities were $111,352,000 at March 31, 2026. Asset retirement obligations were $22,700,000 at March 31, 2026, compared with $20,398,000 in the prior period, an increase of 11.3%. [COMPLETE: lease term, discount rate, and maturity information for operating leases]
Total stockholders' equity was $58,408,000 at March 31, 2026, compared with $71,660,000 in the prior period, a decrease of 18.5%. The decrease in stockholders' equity primarily reflects the net loss recognized during the period. [COMPLETE: details of common stock authorized, issued and outstanding, dividends declared, and any share repurchase or equity compensation activity]
| Current | Prior | |
|---|---|---|
| Operating lease liabilities, current | 70,000 | 66,000 |
| Operating lease liabilities, noncurrent | 369,000 | 0 |
| Total debt | 439,000 | 66,000 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 58,408,000 | 71,813,000 |
| Total stockholders' equity | 58,408,000 | 71,813,000 |
Evolution Petroleum Corp is a public reporting company classified under Crude Petroleum & Natural Gas. For the period ended March 31, 2026, we reported revenue of $20.2 million, compared to $22.6 million in the comparable prior-year period, a decrease of 10.6%. We recorded a net loss of $8.9 million for the period, or $(0.26) per basic share, based on weighted-average basic shares outstanding of 34,315,000. The decline in revenue and the increase in our net loss relative to the prior-year period were driven primarily by the factors discussed below. [COMPLETE: description of principal products, services, markets, and strategy from prior filings]
Cost of revenue decreased 3.2% to $13.0 million from $13.4 million in the prior-year period, while depreciation, depletion and amortization increased 5.6% to $5.3 million from $5.0 million. General and administrative expense decreased 3.9% to $2.5 million from $2.6 million. The most significant driver of the period-over-period change in our results was a net loss on derivative contracts of $9.9 million, compared to a loss of $3.8 million in the prior-year period, an increase of 159.6%. Interest expense increased 36.2% to $1.0 million from $0.7 million in the prior-year period. We recognized an income tax benefit of $2.4 million for the current period, compared to a benefit of $0.7 million in the prior-year period, reflecting the pre-tax loss for the period. [COMPLETE: description of operational drivers, such as production volumes and commodity pricing, underlying the revenue decline]
Cash and cash equivalents were $2.6 million at the end of the period, compared to $5.6 million at the end of the prior-year period, a decrease of 53.3%. Accounts receivable decreased 11.2% to $9.5 million from $10.7 million, and prepaid expenses and other current assets decreased 25.4% to $2.0 million from $2.7 million. Accounts payable increased 5.1% to $12.6 million from $12.0 million, while accrued liabilities decreased 20.8% to $5.6 million from $7.1 million. Asset retirement obligations increased 11.3% to $22.7 million from $20.4 million, and other liabilities increased 61.9% to $65.8 million from $40.6 million. Total liabilities were $111.4 million and total stockholders' equity was $58.4 million at period end, with stockholders' equity down 18.5% from $71.7 million in the prior-year period. Management believes that our cash and cash equivalents, together with cash expected to be generated from operations and available sources of capital, will be sufficient to fund our operations and meet our obligations for at least the next twelve months. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. We are involved in legal proceedings arising in the ordinary course of business from time to time, and management does not currently believe any pending matter is material to the financial statements.
We are a public reporting company classified under Crude Petroleum & Natural Gas, and we are exposed to certain market risks in the ordinary course of our business. Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of March 31, 2026, we held cash and cash equivalents of approximately $2.6 million, compared with approximately $5.6 million in the prior period, a decrease of 53.3%. Changes in prevailing interest rates affect the interest income we earn on these balances, although a hypothetical change in market interest rates would not have a material effect on our financial position or results of operations given the size of our invested balances. Interest expense for the current period was approximately $1.0 million, an increase of 36.2% from approximately $0.7 million in the prior period. Additional information regarding our principal products, services, markets, and strategy is described in our prior SEC filings.
We do not have material foreign currency or commodity price exposure. Substantially all of our transactions are denominated in U.S. dollars, and we therefore do not believe fluctuations in foreign currency exchange rates present a material risk to our results of operations. During the current period, we recorded a net loss on derivative contracts of approximately $9.9 million, compared with a net loss of approximately $3.8 million in the prior period, an increase of 159.6%. [COMPLETE: description of the nature and terms of the company's derivative contracts and the specific market risks they are intended to manage]
Our assessment of market risk involves estimates and assumptions, and actual results could differ materially from those described above as market conditions change. We will continue to monitor our exposure to interest rate, foreign currency, commodity, and other market risks and will update these disclosures as appropriate in future filings.
Under the supervision and with the participation of our management, including our [COMPLETE: titles of principal executive officer and principal financial officer], we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(f) under the Securities Exchange Act of 1934, as amended) as of March 31, 2026. Based on that evaluation, management concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure.
There were no changes in our internal control over financial reporting that occurred during the quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
[NOTE TO DRAFT: Management's conclusion language above must be reviewed and adopted by management before filing.]
From time to time, we are involved in legal proceedings arising in the ordinary course of business. While the outcome of any such matters cannot be predicted with certainty, management does not currently believe that any pending matter is material to our financial statements.
We are not a party to any legal proceedings that, individually or in the aggregate, are currently believed by management to be material to our financial condition or results of operations, other than routine matters arising in the ordinary course of business. We will continue to monitor developments in any pending matters and will make additional disclosures as required by applicable rules and regulations.
Our business and financial results are subject to risks inherent in the crude petroleum and natural gas industry in which we operate. We are a public reporting company classified under Crude Petroleum & Natural Gas, and adverse conditions affecting our industry have contributed to weaker operating results. For the period ended March 31, 2026, we reported revenue of $20,168,000 and a net loss of $8,932,000. Revenue declined 10.6% from $22,561,000 in the prior period, and there can be no assurance that revenue trends will improve in future periods.
Our use of derivative contracts exposes us to the risk of significant losses. We recognized a net loss on derivative contracts of $9,869,000 for the current period, compared to a loss of $3,802,000 in the prior period, an increase of 159.6%. Continued volatility in the markets underlying these instruments could result in further losses that materially affect our results of operations. In addition, income tax expense (benefit) moved to a benefit of $2,431,000 from a benefit of $687,000 in the prior period, and our future tax position may vary significantly depending on our profitability.
Our liquidity and capital position have weakened, which could constrain our ability to fund operations and meet our obligations. Cash and cash equivalents declined 53.3% to $2,616,000 from $5,601,000 in the prior period, and interest expense increased 36.2% to $960,000 from $705,000. Total liabilities were $111,352,000 against total stockholders equity of $58,408,000, with stockholders equity having declined 18.5% from $71,660,000. Our asset retirement obligations increased 11.3% to $22,700,000, and the timing and amount of expenditures required to satisfy these obligations could differ materially from current estimates. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in prevailing interest rates could affect the returns we earn on these balances.
We are involved in legal proceedings arising in the ordinary course of business from time to time. While management does not currently believe any pending matter is material to the financial statements, an unfavorable outcome in any such proceeding could adversely affect our financial condition or results of operations. The risks described above are not the only risks we face, and additional risks not presently known to us or that we currently deem immaterial may also impair our business operations.
The following disclosure is provided pursuant to Item 408(a) of Regulation S-K concerning the adoption or termination of Rule 10b5-1 trading arrangements by directors and officers during the quarter ended March 31, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]