Evolution Petroleum Corporation has successfully closed its previously announced acquisition of non-operated oil and natural gas assets located in New Mexico, Texas, and Louisiana. The total purchase price for this strategic acquisition is $9.0 million, subject to customary post-closing adjustments, and is based on an effective date of February 1, 2025. The acquisition was financed through a mix of existing cash reserves and borrowings from the company’s credit facility.

This acquisition presents several key advantages for Evolution Petroleum, aligning with its long-term objectives and capital allocation strategy. The assets were acquired at an attractive valuation of approximately 3.4x the estimated Adjusted EBITDA for the next twelve months, using current strip pricing as a benchmark. These newly acquired interests contribute approximately 440 net barrels of oil equivalent per day (BOEPD) to Evolution’s production profile, with a commodity mix of 60% oil and 40% natural gas.

The stable, low-decline nature of these assets enhances the company’s cash flow visibility and supports the ongoing sustainability of its long-term dividend program. Additionally, the acquisition includes low-risk development opportunities, providing potential for incremental production growth without significant capital exposure. The total purchase price of $9.0 million compares favorably to a Proved Developed PV-10 valuation of approximately $13 million, further emphasizing the financial attractiveness of the deal.

Kelly Loyd, President and CEO of Evolution Petroleum, remarked on the transaction, stating: "Despite recent volatility in commodity prices and broader market conditions, the TexMex acquisition remains highly accretive to both our near-term and long-term cash flows. It directly aligns with our core mission of maintaining and enhancing our dividend’s long-term sustainability. We were able to negotiate a purchase price at a meaningful discount to PV-10 based on current strip pricing, and because the asset base features low production decline rates, its value proposition only improves should oil prices revert to a more normalized range."

He added that the TexMex acquisition is yet another example of Evolution's disciplined approach to growth and capital stewardship, reaffirming the company’s strategic focus on value-driven, dividend-supportive acquisitions.

Evolution Petroleum Corporation is an independent energy company committed to maximizing shareholder value through strategic ownership and investment in onshore oil and natural gas assets across the United States. The company focuses on acquiring and managing a diversified portfolio of long-life, low-decline properties that generate stable cash flow. Evolution pursues growth through disciplined acquisitions, selective development opportunities, and targeted production enhancement initiatives. By leveraging its operational expertise and capital efficiency, the company aims to deliver sustainable returns while maintaining a conservative financial profile and supporting a long-term dividend strategy. Evolution remains focused on responsible growth and long-term value creation for its shareholders.