Evolution Petroleum reports $1.8 million recovery from joint interest audit and updates on successful Chaveroo drilling results.
Quiver AI Summary
Evolution Petroleum Corporation announced the results of its joint interest audit regarding expenses charged by Diversified Energy Company for its Barnett Shale properties during the 2022-2023 period. The audit, conducted with the help of BRI Consulting Group, identified approximately $1.8 million in overcharges owed to Evolution, which will reduce its lease operating expenses for the fiscal fourth quarter and full year of 2025. CEO Kelly Loyd noted that the findings are expected to positively impact the company's Adjusted EBITDA and earnings, with potential benefits extending into future audits. Additionally, COO Mark Bunch provided an update on the company's recent Chaveroo drilling results, indicating that new wells are significantly outperforming expectations after more than 50 days of production.
Potential Positives
- Evolution Petroleum's joint interest audit revealed approximately $1.8 million in overcharges, which will reduce lease operating expenses and accounts payable, positively impacting fiscal year 2025 Adjusted EBITDA and earnings.
- The company plans to conduct future audits, potentially uncovering additional financial benefits and improving billing practices with Diversified Energy Company.
- The recent Chaveroo drill wells are performing significantly better than expectations, indicating strong production efficiency and potential for increased revenue.
Potential Negatives
- The announcement of a joint interest audit suggests that Evolution Petroleum Corporation may have been overcharged by its partner, potentially indicating a lack of oversight or accuracy in its financial management practices.
- The $1.8 million discrepancy discovered raises concerns about financial transparency and may lead to further scrutiny of the company's operational and financial controls.
- The need for ongoing audits may signal potential issues with the company's billing practices and relationships with partners, which could affect investor confidence.
FAQ
What were the results of the joint interest audit by Evolution Petroleum?
Evolution Petroleum discovered approximately $1.8 million in overcharges owed to them from Diversified Energy Company during the audit.
How will the audit findings impact Evolution Petroleum's financials?
The findings will reduce lease operating expenses and accounts payable, positively impacting the company's fiscal year 2025 Adjusted EBITDA.
What is the purpose of the joint interest audit?
The audit aims to verify expenses charged by Diversified Energy Company and ensure accurate billing practices for Evolution's Barnett Shale properties.
What can be expected from future audits by Evolution Petroleum?
Evolution plans to continue auditing future periods, which may lead to further financial benefits and updates to billing practices.
How are the new Chaveroo drilling results performing?
The latest four wells at Chaveroo are significantly outperforming expectations based on over 50 days of production data.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$EPM Hedge Fund Activity
We have seen 46 institutional investors add shares of $EPM stock to their portfolio, and 71 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RUSSELL INVESTMENTS GROUP, LTD. added 123,277 shares (+22.5%) to their portfolio in Q1 2025, for an estimated $638,574
- AMERICAN CENTURY COMPANIES INC added 119,746 shares (+19.0%) to their portfolio in Q1 2025, for an estimated $620,284
- RAYMOND JAMES FINANCIAL INC added 75,437 shares (+26.7%) to their portfolio in Q1 2025, for an estimated $390,763
- CWA ASSET MANAGEMENT GROUP, LLC added 70,450 shares (+30.0%) to their portfolio in Q1 2025, for an estimated $364,931
- BLACKROCK, INC. removed 64,826 shares (-2.5%) from their portfolio in Q1 2025, for an estimated $335,798
- PENN MUTUAL ASSET MANAGEMENT removed 60,168 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $311,670
- EXCHANGE TRADED CONCEPTS, LLC removed 55,935 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $292,540
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, July 01, 2025 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced the initial results of its joint interest audit of its Barnett Shale properties and is providing an update on its latest Chaveroo drilling results.
Joint Interest Audit Results
In fiscal year 2024, Evolution exercised its right to perform a joint interest audit of expenses charged from Diversified Energy Company (“Diversified”), the largest operator of its Barnett Shale properties, for the calendar years 2022–2023. This is being completed with the assistance of its joint venture auditors, BRI Consulting Group, Inc., a Houston based consulting company servicing the energy industry.
Calendar year 2022 represented the first full year that Diversified operated the Barnett Shale properties for Evolution. The initial findings produced several areas where it appeared Evolution had been over-charged and, so far, Evolution and Diversified have discovered approximately $1.8 million owed to Evolution relating to the September 2021 through December 2023 time period. This amount will be recognized as a reduction to lease operating expenses and accounts payable in the Company’s fiscal fourth quarter and full-year 2025 results. Evolution plans to continue with its rights under the joint operating agreement to audit future periods.
Kelly Loyd, President and Chief Executive Officer, commented, “Approximately one year ago, Evolution exercised its right to conduct a thorough audit of joint interest costs passed along to us over the last several years on our Barnett Shale properties. This initial audit was conducted for the 2022-2023 time period and we have preliminarily agreed on a subset of discrepancies, totaling an approximate $1.8 million in expenses that are owed back to Evolution. These reduced expenses will directly increase our fiscal year 2025 Adjusted EBITDA and will positively impact our earnings. There may be additional benefits to us from the period under audit as we continue to review the initial findings. Further, we do expect to see additional benefits to the Company as it relates to January 1, 2024 and beyond from subsequent audits and updates to billing practices as a result of the current audit findings. We want to thank Diversified for their cooperation and partnership throughout this audit process.”
Chaveroo New Drill Wells Update
Mark Bunch, Chief Operating Officer, commented, “As stated in our Fiscal third quarter earnings release, we are pleased to provide additional data on our most recent four wells at Chaveroo. We previously reported that these wells were completed on schedule and under budget. At that time, with only 10 days of production, the wells were significantly exceeding our expectations. I am pleased to report that with more than 50 days of production data, the wells continue to significantly outperform our type curves.”
About Evolution Petroleum
Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit
www.evolutionpetroleum.com
for more information.
Cautionary Statement
All forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement.
Contact
Investor Relations
(713) 935-0122
[email protected]