Evolution Petroleum Reports $8.9M Q3 Loss, Declares $0.12 Dividend, Adds $5M Royalties
Evolution Petroleum reported fiscal Q3 ended March 31, 2026, delivering average production of 6,700 BOEPD, revenues of $20.2 million (down 11% year-over-year), an $8.9 million net loss and $3.1 million in adjusted EBITDA. The company declared its 16th consecutive $0.12 per share dividend and invested $5 million in Louisiana royalty acquisitions adding 350 net royalty acres.
1. Fiscal Q3 Financial Results
For the quarter ended March 31, 2026, production averaged 6,700 BOEPD versus 6,667 BOEPD a year earlier. Revenue declined 11% to $20.2 million, net loss widened to $8.9 million from $2.2 million and adjusted EBITDA fell 58% to $3.1 million.
2. Dividend Declaration
Evolution declared its 16th consecutive quarterly cash dividend of $0.12 per share, payable on June 30, marking its 51st straight payment and representing a $4.3 million return of capital in Q3.
3. Operational and Market Challenges
Results were impacted by over 300 BOEPD of downtime from extreme weather, equipment failures and $2.2 million in realized hedge losses. Differential adjustments of $3.2 million also weighed on adjusted net income, although all issues have since been resolved and production levels restored.
4. M&A Activity and Outlook
The company spent approximately $5 million acquiring Louisiana mineral and royalty interests—adding 350 net royalty acres, 17 proved producing locations and 50 future sites—and agreed post-quarter to divest non-core acres for $3.3 million. It expects 23 newly acquired wells to begin producing in Q4, driving volumes and cash flow higher.