EVOLUTION PETROLEUM CORP

Results of Operations

Years Ended June 30, 2026 and 2025

We reported a net loss of $2.4 million and net income of $1.5 million for the years ended June 30, 2026 and 2025, respectively. The following table summarizes the comparison of financial information for the periods presented:

Revenues

Crude oil, natural gas and NGL revenues were $86.3 million and $85.8 million for the fiscal years ended June 30, 2026 and 2025, respectively. The increase in revenues is primarily due to the increase in our average realized price per BOE. Our average realized commodity price (excluding the impact of derivative contracts) increased approximately $0.18 per BOE, or 0.5%, for the fiscal year ended June 30, 2026 compared to June 30, 2025. The amount we realize for our production depends predominantly upon commodity prices, which are affected by changes in market demand and supply, as impacted by overall economic activity, weather, inventory storage levels, basis differentials and other factors, such as geopolitics. While our average realized natural gas prices increased 6.1% from the prior fiscal year, our average realized crude oil and NGL prices decreased 0.1% and 5.4% from the prior fiscal year respectively. The current year oil revenue at Delhi Field was also impacted by $1.2 million of prior period adjustments for transportation charges due to a new marketing contract entered into by the operator dating back to December 2024. Average daily equivalent production increased slightly from 7,074 BOEPD to 7,077 BOEPD in the current fiscal year as a result of additional production from our SCOOP/STACK Minerals Acquisition in August 2025 and TexMex Acquisition in April 2025 and newly drilled wells at SCOOP/STACK since the prior year end.

Lease Operating Costs

Ad valorem and production taxes were $4.8 million and $5.7 million for the years ended June 30, 2026 and 2025, respectively. The decrease is primarily related to an $0.8 million reduction of calendar years 2024 and 2025 ad valorem taxes which were passed along from the operator of our Barnett Shale natural gas properties in fiscal year 2026. The decrease in ad valorem and production taxes was partially offset by our SCOOP/STACK Minerals Acquisition in August 2025 and our TexMex Acquisition in April 2025. On a per unit basis, ad valorem and production taxes were $1.84 per BOE and $2.21 per BOE for the years ended June 30, 2026 and 2025, respectively.

Gathering, transportation and other costs were $11.1 million for the year ended June 30, 2026 compared to $11.4 million for the year ended June 30,2025. These costs are gathering, transportation and processing fees we incur primarily for our natural gas producing properties. The decrease is primarily due to the decrease in natural gas sales at Jonah Field. On a per unit basis, gathering, transportation and other costs were $4.31 per BOE and $4.40 per BOE for the years ended June 30, 2026 and 2025, respectively.

Other lease operating costs were $34.4 million for the year ended June 30, 2026 compared to $32.3 million in the prior year. Other lease operating costs increased primarily due tothe TexMex Acquisition in April 2025, which increased other lease operating costs by $4.1 million over the prior year period. In addition, the prior year period contained a $1.9 million credit from the operator of one of our Barnett Shale properties due to a joint venture audit. Partially offsetting the overall increase in other lease operating costs is the cessation of CO 2 purchases at Delhi late in the third fiscal quarter of 2025. We did not purchase CO 2 in the current year but purchased $2.6 million of net CO 2 in the prior year. On a per unit basis, other lease operating costs increased to $13.33 per BOE in the current year from $12.50 per BOE in the prior year, primarily due to the TexMex Acquisition. Other lease operating costs were elevated during the fiscal year due to the delay in transfer of operatorship from the previous seller to the current operator as well as an extensive workover program in Texas and New Mexico.

Depletion of Full Cost Proved Oil and Natural Gas Properties

Depletion expense increased $0.8 million or 4.0% from $20.4 million for the fiscal year ended June 30, 2025 to $21.2 million for the fiscal year ended June 30, 2026 primarily due to an increase in the depletion rate. On a per unit basis, depletion expense was $8.21 per BOE and $7.89 per BOE for the fiscal years ended June 30, 2026 and 2025, respectively. The depletion rate of our unit of production calculation increased primarily due to an overall increase in our depreciable base due to acquisitions since the prior year period.

General and Administrative Expenses

General and administrative expenses for the fiscal year ended June 30, 2026 decreased $0.5 million, or 5.7%, to $7.4 million compared to $7.9 million for the fiscal year ended June 30, 2025. The decrease primarily relates reduced

compensation expense in the current year. On a per unit basis, general and administrative expenses were $2.87 per BOE and $3.04 per BOE for the years ended June 30, 2026 and 2025, respectively.

Stock-based Compensation Expenses

Stock-based compensation decreased to $2.3 million for the year ended June 30, 2026 from $2.5 million the prior period. The decrease is due to a reduction in the awards granted in the current fiscal year compared to the prior fiscal year.

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 consolidated statements of operations. The amounts recorded on the 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 SCOOP/STACK Minerals Acquisition in August 2025, and the corresponding borrowings on our Senior Secured Credit Facility, we were required by terms in our Senior Secured Credit Facility to hedge 75% of our crude oil and natural gas production (excluding NGLs). Subsequently, in March 2026, WTI oil prices reached their highest levels since 2022 due to crude oil disruptions at key oil shipping routes in the Middle East, contributing to considerable commodity price fluctuations and realized losses on our crude oil derivative contracts. Whereas, the decrease in forward commodity prices for natural gas, as of June 30, 2026, resulted in an unrealized gain on the mark-to-market of our hedges. As of June 30, 2026, we had a $2.6 million derivative asset, $2.1 million of which was classified as current, and a $3.1 million derivative liability, $2.9 million of which was classified as current. We expect to see continued volatility in the fair value of our derivative contracts as commodity prices fluctuate.

Interest Expense

Interest expense increased $0.9 million during the fiscal year ended June 30, 2026 compared to fiscal year 2025 primarily due to borrowings drawn on our Senior Secured Credit Facility to finance our SCOOP/STACK Minerals Acquisition in August 2025. Partially offsetting the increase in interest expense is the decrease in our weighted average interest rate on our borrowings to 6.69% for the fiscal year ended June 30, 2026 compared to 7.48% for fiscal year 2025.

Income tax (expense) provision

For the year ended June 30, 2026, we recognized an income tax benefit of $0.7 million on losses before income taxes of $3.1 million compared to an income tax expense of $0.4 million on income before income taxes of $1.9 million for the year ended June 30, 2025. The effective tax rates were 22.8% and 21.2% for the years ended June 30, 2026 and 2025, respectively.