Jeff (Analyst)'s questions to Evolution Petroleum Corp (EPM) leadership • Q3 2025
Question
Jeff (Analyst) asked about the M&A market, specifically bid-ask spreads amid weaker oil prices and any divergence in oil versus gas-weighted asset trends. He also inquired about the new Chaveroo wells, asking to quantify how much under budget they were and what might explain their strong initial performance.
Answer
President and CEO Kelly Loyd stated that on the oil front, they see a strong opportunity to acquire long-life, low-decline assets at current strip prices, anticipating a future price recovery. For natural gas, the favorable forward strip allows for accretive deals. CFO Ryan Stash added that they are seeing encouraging activity in the SCOOP/STACK. Regarding Chaveroo, COO J. Bunch explained the four new wells came in slightly under budget and their outperformance (currently 50% above projections) is attributed to hitting a better quality of reservoir rock, not a change in completion techniques.