Executive Summary

Revenue was $21.29M (-3% y/y, +1% q/q) and diluted EPS was $0.02 (down from $0.06 y/y; down from $0.10 q/q); Adjusted EBITDA was $7.30M (-10% y/y, -15% q/q) .
Against S&P Global consensus, revenue modestly missed ($21.73M estimate*) while EPS exceeded ($0.01 estimate* vs $0.02 actual); 3 estimates for each metric; highlight the mix shift toward gas helped EPS resilience despite higher LOE *.
Operationally, natural gas revenue rose 38% y/y to $5.9M, but LOE increased to $13.1M ($19.45/BOE) due to TexMex integration and operator transition; Delhi NGL plant downtime and natural declines constrained volumes .
Balance sheet and capital allocation remain disciplined: $53.0M drawn on the credit facility with $11.9M liquidity; $4.2M dividends paid in Q1 and quarterly dividend maintained at $0.12 for fiscal Q2 2026 .
Transcript for the Q1 FY26 earnings call is not yet available in our document catalog; timing and webcast details were provided, but full Q&A themes cannot be assessed as of now .

What Went Well and What Went Wrong

What Went Well

Natural gas strength: Gas revenue grew 38% y/y to $5.9M on a 43% increase in realized gas prices, supporting cash flow amid softer oil/NGL pricing .
Strategic mineral & royalty acquisition: Closed largest SCOOP/STACK minerals deal, “providing immediate accretion to cash flow per share… exceptional margins and a multi-year inventory… with no incremental future capital obligations,” per CEO Kelly Loyd .
Portfolio diversification and normalization: Jonah volumes normalized after prior pipeline imbalance; Hamilton Dome LOE normalized versus prior period; diversified assets cushioned commodity volatility .

What Went Wrong

Cost pressure: LOE rose to $13.1M ($19.45/BOE) vs $11.8M ($17.15/BOE) y/y, primarily from TexMex integration and operator transition costs; DD&A per BOE ticked up to $8.26 .
Volume headwinds: Delhi NGL turbine replacement downtime and natural declines reduced total production (-2% y/y) to 7,315 BOEPD; liquids share declined (72% of revenue vs 80% y/y) .
Profit compression: Net income fell to $0.8M (-60% y/y; -76% q/q) as lower realized oil/NGL prices and higher LOE outweighed gas price tailwind; Adj. EBITDA fell to $7.3M (-10% y/y; -15% q/q) .

Financial Results

Metric	Q3 2025	Q4 2025	Q1 2026
Revenues ($USD Millions)	$22.561	$21.108	$21.288
Net Income ($USD Millions)	$(2.179)	$3.412	$0.824
Diluted EPS ($USD)	$(0.07)	$0.10	$0.02
Adjusted EBITDA ($USD Millions)	$7.421	$8.572	$7.301
Average BOEPD	6,667	7,198	7,315
LOE per BOE ($)	$22.32	$17.35	$19.45
DD&A per BOE ($)	$7.68	$8.27	$8.26

Segment/product mix detail:

Product Revenue ($USD Millions)	Q3 2025	Q4 2025	Q1 2026
Crude Oil	$11.769	$12.833	$12.872
Natural Gas	$7.790	$5.648	$5.900
NGLs	$3.002	$2.627	$2.516
Total	$22.561	$21.108	$21.288

Key KPIs & balance sheet:

KPI	Q3 2025	Q4 2025	Q1 2026
Cash from Operations ($USD Millions)	$7.263	$10.456	$7.805
Credit Facility Borrowings ($USD Millions)	$35.5	$37.5	$53.0
Liquidity ($USD Millions)	$20.1	$30.0	$11.9
Dividend Declared per Share ($USD)	$0.12 (for Q4 FY25)	$0.12 (for Q1 FY26)	$0.12 (for Q2 FY26)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Dividend per Share ($)	Fiscal Q2 2026	$0.12 (ongoing policy)	$0.12	Maintained
Operating Outlook (TexMex)	Future quarters	N/A	Expect production to increase and LOE per barrel to decrease as integration progresses	Qualitative improvement

Note: No formal numerical guidance (revenue, EPS, margins, OpEx, tax rate) provided in Q1 FY26 materials .

Earnings Call Themes & Trends

Transcript not available in the document catalog as of this analysis; scheduling and webcast details were provided . Themes below reflect quarter disclosures across press releases/8-Ks.

Topic	Previous Mentions (Q3 FY25 and Q4 FY25)	Current Period (Q1 FY26)	Trend
Commodity mix & gas tailwind	Q3: Gas price up ~40% y/y; portfolio benefited; liquids 65% of revenue . Q4: Liquids 73% of revenue; realized gas up 66% y/y .	Gas revenue +38% y/y; realized gas +43%; liquids 72% of revenue .	Gas contribution rising; liquids modestly lower share.
Delhi operations	Q3: Planned maintenance and NGL plant downtime; shift from purchased CO2 to recycled CO2 . Q4: Facility upgrades; reduced CO2 injections due to summer temps .	Turbine replacement downtime at Delhi NGL plant impacted Q1 volumes .	Operational normalization post-maintenance, but Q1 downtime persisted.
TexMex integration	Q4: Acquisition added ~440 BOEPD; raised LOE in period .	Integration/transition raising LOE; expect production up and LOE/BOE down in future .	Near-term cost headwind; medium-term efficiency gains.
SCOOP/STACK activity	Q3: Ongoing drilling; wells turned in-line; additional five in progress . Q4: Moderate activity; minerals acreage active .	Legacy WI moderated; 3 wells to sales; minerals interests performing to expectations .	Activity paced to commodity prices; minerals provide low-cost cash flow.
Credit facility & liquidity	Q3: Extended and expanded commitments to $65M with added lender expected . Q4: Amended & restated RBL; $200M revolver, $65M borrowing base .	$53M drawn; liquidity $11.9M after minerals acquisition .	Increased leverage to fund accretive acquisitions; liquidity tighter near term.
Hedging/derivatives	Q3/Q4: Robust NG swaps/collars and oil collars/swaps in place .	Expanded crude and gas swaps/collars into 2026–2027 .	Hedge book supports cash flow stability.

Management Commentary

“During a quarter marked by softer crude prices and higher operating costs related to the initial integration and transition to the new operator of our recent TexMex acquisition… we closed our largest minerals and royalties acquisition to date in the SCOOP/STACK, providing immediate accretion to cash flow per share…” — Kelly Loyd, President & CEO .
“Looking ahead, we remain resolute in creating long-term shareholder value… ensuring the strength and continuity of our quarterly cash dividend… we will pay $0.12 per share for the 14th consecutive quarter for our fiscal 2nd quarter ending December 31, 2025.” — Kelly Loyd .
Prior perspective: “Fiscal 2025 was a defining year… near-record total production… strengthened the balance sheet… largest minerals-only acquisition… positioning the Company to generate durable cash flow through future cycles.” — Kelly Loyd .

Q&A Highlights

The Q1 FY26 earnings call transcript is not available in the document catalog; the company scheduled a call for Nov. 12, 2025 at 10:00 a.m. CT with webcast/dial-in details provided .
Without the transcript, Q&A themes and any guidance clarifications cannot be reliably assessed at this time.

Estimates Context

Metric	Consensus (S&P Global)	Actual Q1 2026
Revenue ($USD Millions)	$21.73*	$21.29
Primary EPS ($USD)	$0.01*	$0.02
# of Estimates (Revenue)	3*	—
# of Estimates (EPS)	3*	—

Result vs consensus: Revenue modestly missed; EPS was a clear beat. Bold implications: EPS beat; Revenue miss.
Drivers: Lower realized oil/NGL prices and higher LOE weighed on revenue/margins; gas price uplift and hedge gains supported EPS and cash flow (net gain on derivatives $2.18M) .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

Near-term: Expect continued cost normalization from TexMex integration; management explicitly expects production to increase and LOE/BOE to decline in coming quarters — constructive for margins and FCF .
Gas exposure: Gas price tailwinds and robust hedge book underpin cash generation; monitor gas price trajectory and hedge realization to sustain EBITDA .
Capital allocation: Dividend continuity at $0.12/share and accretive minerals acquisition signal commitment to shareholder returns; watch leverage/availability as liquidity tightened to $11.9M post-deal .
Operational cadence: SCOOP/STACK activity paced to commodity prices; Delhi normalization and Jonah pipeline imbalances resolved support steadier volumes; liquids share may recover with price improvement .
Estimate resets: Sell-side models likely lower LOE/BOE for future periods and reflect higher gas realizations; consider modest upward EPS revisions if cost normalization materializes and gas pricing holds .
Risk flags: Elevated LOE in Q1 and higher DD&A rate indicate margin pressure sensitivity to oil/NGL prices and integration costs; monitor operator transitions and maintenance schedules (Delhi NGL plant) .
Trading setup: Into the next quarter, catalysts include visible LOE improvement at TexMex, sustained gas price strength, and potential liquids recovery; dividend support provides downside cushion .

EVOLUTION PETROLEUM CORP (EPM)·Q1 2026 Earnings Summary