EVOLUTION PETROLEUM CORP

Results of Operations

Three Months Ended September 30, 2025 and 2024

We reported net income of $0.8 million and $2.1 million for the three months ended September 30, 2025 and 2024, respectively. The following table summarizes the comparison of financial information for the periods presented:

Revenues

Crude oil, natural gas and NGL revenues were $21.3 million and $21.9 million for the three months ended September 30, 2025 and 2024, respectively, with the decrease in revenues due to decreases in production volumes and decreases in our average realized price per BOE. Average daily equivalent production decreased 2.2% from 7,478 BOEPD in the prior year period to 7,315 BOEPD in the current period primarily as a result ofdowntime at the Delhi NGL plant for the replacement of a turbine and natural production declines. Our overall decrease in production was partially offset by production from our Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025. Our average realized commodity price (excluding the impact of derivative contracts) for the three months ended September 30, 2025 decreased approximately $0.20 per BOE, or 0.6%, over the prior year period as our realized crude oil decreased 13.9% and realized NGL prices decreased 8.4% from the three months ended September 30, 2024. The overall decrease in our realized prices was partially offset by a 42.7% increase in our realized natural gas prices over the prior period.

Lease Operating Costs

Ad valorem and production taxes were $1.4 million for each of the three months ended September 30, 2025 and 2024. On a per unit basis, ad valorem and production taxes were $2.11 per BOE and $2.06 per BOE for the three months ended September 30, 2025 and 2024, respectively. The increase on a per unit basis is primarily the result of the decrease in production for the current year period.

Gathering, transportation and other costs were $2.9 million for the three months ended September 30, 2025 compared to $2.8 million for the three months ended September 30, 2024. These costs are gathering, transportation and processing fees we incur primarily for our natural gas producing properties. The increase is primarily due to increased natural gas sales at Barnett Shale. On a per unit basis, gathering, transportation and other costs were $4.30 per BOE and $4.06 per BOE for the three months ended September 30, 2025 and 2024, respectively.

Other lease operating costs were $8.8 million for the three months ended September 30, 2025 compared to $7.6 million for the three months ended September 30, 2024. Other lease operating costs increased primarily due tothe TexMex Acquisition in April 2025, which increased other lease operating costs by $1.3 million over the prior year period. On a per unit basis, other lease operating costs increased to $13.04 per BOE for the three months ended September 30, 2025 from $11.03 per BOE in the three months ended September 30, 2024.

Depletion of Full Cost Proved Oil and Natural Gas Properties

Depletion expense increased from $5.3 million for the three months ended September 30, 2024 to $5.6 million for the three months ended September 30, 2025 primarily due to an increase in the depletion rate and decrease in reserves volumes. On a per unit basis, depletion expense was $8.26 per BOE and $7.74 per BOE for the three months ended September 30, 2025 and 2024, respectively.

General and Administrative Expenses

General and administrative expenses for the three months ended September 30, 2025 and 2024 were $1.8 million and $2.0 million, respectively. The decrease in the current period is primarily due to a decrease in professional fees. On a per unit basis, general and administrative expenses were $2.66 per BOE and $2.86 per BOE for the three months ended September 30,2025 and 2024, respectively.

Stock-based Compensation Expense

Stock-based compensation expense for the three months ended September 30, 2025 was $0.5 million compared to $0.6 million for theyear-ago period. The decrease is due to a decrease in the awards granted in the current fiscal period compared to the year-ago period.

Net Gain (Loss) on Derivative Contracts

We utilize commodity derivative financial instruments to reduce our exposure to fluctuations in oil and natural gas prices. Financial hedges are a requirement under our Senior Secured Credit Facility and help establish commodity price floors, contributing to stable cash flows when derivative contracts are settled. We have elected not to designate our open derivative contracts for hedge accounting, and accordingly, we recorded the net change in the mark-to-market valuation of the derivative contracts in the unaudited condensed consolidated statements of operations. The amounts recorded on the unaudited condensed consolidated statements of operations related to derivative contracts represent the (i) gains (losses) related to fair value adjustments on our open, or unrealized, derivative contracts, and (ii) gains (losses) on settlements of derivative contracts for positions that have settled or been realized. The table below summarizes our net realized and unrealized gains (losses) on derivative contracts as well as the impact of net realized gains (losses) on our average realized prices for the periods presented. As a result of our recent acquisitions and the corresponding borrowings on our Senior Secured Credit Facility, we were required by terms in our Senior Secured Credit Facility to hedge a portion of our production. As of September 30, 2025, we had $2.5 million derivative assets, $2.1 million of which was classified as current, and $2.6 million derivative liabilities, $1.2 million of which was classified as current. Subsequent to the end of the quarter through November 2025, we have seen increased volatility in the crude oil and natural gas commodity markets and we expect to see continued volatility in the fair value of our derivative contracts.

Interest Expense

Interest expense increased $0.1 million for the three months ended September 30, 2025 compared to the prior year period primarily due to additional borrowings drawn on our Senior Secured Credit Facility to finance our Minerals Acquisition in August 2025. The weighted average interest rate on our borrowings was 7.12% for the three months ended September 30, 2025 compared to 8.09% for the three months ended September 30, 2024.

Income Tax (Expense) Benefit

For the three months ended September 30, 2025, we recognized income tax expense of $0.4 million on net income before income taxes of $1.2 million compared to income tax expense of $0.8 million on net income before income taxes of $2.9 million for the three months ended September 30, 2024. The effective tax rates were 30.7% and 28.4% for three months ended September 30, 2025 and 2024, respectively. The increase in the effective tax rate from the prior year period is due to higher state income taxes projected for Oklahoma due to the Minerals Acquisition.