Evolution Petroleum agrees to acquire Midland Basin mineral and royalty interests
Evolution Petroleum agreed to buy Midland Basin mineral and royalty interests for about USD 16 million, with an Aug. 1 effective date.
Closing is expected around Aug. 21; the assets cover about 3,420 net royalty acres across multiple West Texas counties.
The interests are forecast to generate about USD 3.9 million in next-12-month cash flow, implying a 4.1x multiple.
The deal is expected to lift cash flow per share; mineral and royalty contribution is projected near 20% of pro forma fiscal 2027 asset cash flow.
Funding is planned from common stock offering proceeds, cash and borrowing capacity; current production is estimated at about 210 BOE/d with 65% liquids.
EPM•
