EVOLUTION PETROLEUM CORP

Three Months Ended September 30, 2024 and 2023

We reported net income of $2.1 million and $1.5 million for the three months ended September 30, 2024 and 2023, respectively. The following table summarizes the comparison of financial information for the periods presented:

Revenues

Crude oil, natural gas and NGL revenues were $21.9 million and $20.6 million for the three months ended September 30, 2024 and 2023, respectively. The increase in revenues is primarily due to an increase in production volumes partially offset by the decrease in our average realized price per BOE. Average daily equivalent production increased 15.8% from 6,457 BOEPD in the prior year period to 7,478 BOEPD in the current period as a result ofthe acquisitions of non-operated working interests in the SCOOP/STACK properties in February 2024 and first production at our wells in the Chaveroo Field in early February 2024, which collectively increased production for the three months ended September 30, 2024 by approximately 1,600 BOEPD. The overall increase in production is partially offset bynatural production declines in our other fields combined with reduced oil recovery at Delhi Field as the field experienced reduced CO 2 injected volumes during the quarter. Similar to last quarter, downtime from one of the CO 2 recycle compressors at Delhi Field reduced CO 2 injection volumes for part of the current quarter. The compressor was replaced, and full CO 2 recycling resumed in mid-July 2024. The CO 2 purchase pipeline was taken offline for preventative maintenance at the end of February 2024 and has remained down since then. The operator anticipates resuming CO 2 purchases in October 2025. Our average realized commodity price (excluding the impact of derivative contracts) for the three months ended September 30, 2024 decreased approximately $2.85 per BOE, or 8.2%, over the prior year period. 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. Realized natural gas prices decreased 29.9% from the year-ago quarter, which was the largest portion of the driver of the decrease in revenues.

Lease Operating Costs

Ad valorem and production taxes were $1.4 million and $1.3 million for the three months ended September 30, 2024 and 2023, respectively. On a per unit basis, ad valorem and production taxes were $2.06 per BOE and $2.15 per BOE for the three months ended September 30, 2024 and 2023, respectively. The decrease in ad valorem and production taxes on a per BOE basis is primarily due to decreases in oil and natural gas prices since theyear-ago quarter.

Gathering, transportation and other costs were $2.7 million for the three months ended September 30, 2024 compared to $1.8 million for the three months ended September 30, 2023. Costs include gathering, transportation and processing fees we incur primarily for our natural gas producing properties. The increase is primarily due to the acquisitions of non-operated working interests in the SCOOP/STACK plays in February 2024 which added $0.5 million in gathering transportation and other costs for the three months ended September 30, 2024. On a per unit basis, gathering transportation and other costs were $3.89 per BOE and $3.09 per BOE for the three months ended September 30, 2024 and 2023, respectively.

Other lease operating costs decreased $1.1 million, or 12.2%, compared to theyear-ago quarter primarily due to decreased CO 2 purchases at Delhi. We did not purchase any CO 2 at Delhi for the three months ended September 30, 2024 compared to purchases of $1.6 million in theyear-ago quarter. On a per unit basis, other lease operating costs decreased to $11.19 per BOE for the three months ended September 30, 2024 from $14.77 per BOE in the year-ago quarter.

Depletion of Full Cost Proved Oil and Natural Gas Properties

Depletion expense increased $1.4 million or 36.2% from $3.9 million to $5.3 million for the three months ended September 30, 2024 primarily due to an increase in the depletion rate. On a per unit basis, depletion expense was $7.74 per BOE and $6.58 per BOE for the three months ended September 30, 2024 and 2023, respectively. The depletion rate of our unit of production calculation increased due to an increase in our depletable base due to our SCOOP/STACK Acquisitions and capital expenditures since theyear-ago quarter.

General and Administrative Expenses

General and administrative expenses for the three months ended September 30, 2024 and 2023 were $2.0 million and $2.1 million, respectively. On a per unit basis, general and administrative expenses were $2.86 per BOE and $3.59 per

BOE for the three months ended September 30,2024 and 2023, respectively. The decrease primarily relates to lower transaction and consulting fees.

Stock-based Compensation Expense

Stock-based compensation expense for the three months ended September 30, 2024 increased $0.1 million to $0.6 million compared to $0.5 million for theyear-ago quarter. The increase is associated with new awards granted since the year-ago quarter.

Net Gain (Loss) on Derivative Contracts

Periodically, we utilize commodity derivative financial instruments to reduce our exposure to fluctuations in oil and natural gas prices. 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 SCOOP/STACK Acquisitions in February 2024 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. The decrease in forward commodity prices as of September 30, 2024, resulted in an unrealized gain on the mark-to-market of our hedges. As of September 30, 2024, we had $1.5 million derivative assets, $1.3 million of which was classified as current, and $0.5 million derivative liabilities, $0.2 million of which was classified as current.

Interest Expense

Interest expense increased $0.8 million for the three months ended September 30, 2024 compared to the prior year period primarily due to borrowings drawn on our Senior Secured Credit Facility to finance our SCOOP/STACK Acquisitions in February 2024. In addition, the weighted average interest rate on our borrowings was 8.09% for the three months ended September 30, 2024.

Income Tax (Expense) Benefit

For the three months ended September 30, 2024, we recognized income tax expense of $0.8 million on net income before income taxes of $2.9 million compared to income tax expense of $0.5 million on net income before income taxes of $1.9 million for the three months ended September 30, 2023. The effective tax rates were 28.4% and 23.9% for three months ended September 30,2024 and 2023, respectively. The effective tax rate increased compared to the year-ago quarter as projected state income taxes have become a larger component of our overall income tax expense during the current quarter.