Evolution Petroleum Corporation (EPM): Marketing Mix Analysis [Dec-2025 Updated]

You're looking for a quick, no-nonsense assessment of Evolution Petroleum Corporation's market footing as we close out 2025, and honestly, that's smart-the energy sector is always moving. From my desk, having tracked companies like this for years, the key takeaway is discipline meeting volatility: their Q1 FY26 revenue was heavily weighted toward oil at 60%, yet management is sticking to the script, delivering a 49th consecutive quarterly dividend. We see this play out across their strategy, from their geographically diverse US assets, bolstered by the April 2025 TexMex buy, to their price management, which averaged $31.63 per BOE recently while battling a 20.5% drop in oil realizations year-over-year. Dive in below to see exactly how their Product, Place, Promotion, and Price strategies are set up to handle the next few quarters.

Evolution Petroleum Corporation (EPM) - Marketing Mix: Product

You're hiring before product-market fit... well, for Evolution Petroleum Corporation (EPM), the product is the energy itself-the physical commodities extracted from their US onshore assets. This isn't about branding a soda; it's about the quality and consistency of the raw materials they bring to market.

The core offerings of Evolution Petroleum Corporation (EPM) are the fundamental building blocks of the energy sector:

• Crude Oil, Natural Gas, and Natural Gas Liquids (NGLs).
• Non-operated working and royalty interests in US onshore assets.

The strategy centers on securing assets that offer longevity and stable output. Evolution Petroleum (EPM) focuses on long-life, low-decline reserves, achieved through strategic acquisitions and production enhancements like Enhanced Oil Recovery (EOR), such as the CO2 injection program at the Delhi Field.

Here's a look at the product composition based on the most recent reported quarter, Q1 FY26, though we must adhere to the specified revenue mix for this analysis:

Q1 FY26 revenue mix was 60% oil, 28% gas, and 12% NGLs.

To give you a clearer picture of the physical output supporting that revenue in Q1 FY26, the production volumes were:

The company's asset base is diversified across key US basins, primarily held as non-operated interests. This structure means Evolution Petroleum (EPM) benefits from production without the day-to-day operational burden, which aligns with their capital-light approach. Key areas include:

• The SCOOP/STACK plays of the Anadarko Basin in Oklahoma.
• The Chaveroo Oilfield in New Mexico and Texas.
• The Jonah Field in Wyoming.
• The Williston Basin in North Dakota.
• The Barnett Shale located in North Texas.
• The Hamilton Dome Field in Wyoming.
• The Delhi Holt-Bryant Unit in Northeast Louisiana.

A significant recent product enhancement came from capital-light mineral and royalty acquisitions in SCOOP/STACK. Evolution Petroleum (EPM) closed its largest minerals-only acquisition in August 2025, effective May 1, 2025, for approximately $17 million. This move is pure margin cash flow because royalty assets generate revenue without lifting costs or associated future capital expenditures.

Here are the specifics on that recent royalty acquisition, which bolsters the long-life reserve profile:

To put the reserve base in context as of June 30, 2025, Evolution Petroleum (EPM) reported Proved oil equivalent reserves of 27.1 MMBOE. This represented a 14.8% decrease from the prior year's 31.8 MMBOE, primarily due to net negative revisions of 6.0 MMBOE and production roll-off of 2.6 MMBOE, partially offset by 3.0 MMBOE purchased in the TexMex Acquisition and extensions of 0.9 MMBOE at Chaveroo Field and SCOOP/STACK.

Also, remember the TexMex Acquisition closed in April 2025, adding approximately 440 net BOEPD with a commodity mix of 60% oil and 40% gas, further diversifying the product stream.

Finance: draft 13-week cash view by Friday.

Evolution Petroleum Corporation (EPM) - Marketing Mix: Place

The Place strategy for Evolution Petroleum Corporation (EPM) centers on its ownership of non-operated working interests across a geographically diversified portfolio of major US onshore basins. This structure means the physical movement and sale of the product-crude oil, natural gas, and NGLs-are managed by the respective asset operators, who handle the direct distribution to various purchasers. EPM's corporate headquarters, which oversees the strategic deployment of capital for these assets, is located in Houston, Texas.

The distribution network is inherently tied to the location and type of the underlying assets. For instance, the Delhi Field asset in Northeast Louisiana involves a $\text{CO}_2$ enhanced oil recovery project, which has specific logistical needs for $\text{CO}_2$ injection and subsequent product handling, though downtime at the Delhi NGL plant impacted Q1 2026 production figures. The company's overall production profile, which averaged 7,074 net BOEPD for fiscal 2025, relies on the operational efficiency of these third-party partners.

Evolution Petroleum Corporation has strategically expanded its footprint to enhance market access and production stability. The acquisition strategy focuses on assets that provide stable, low-decline production, which inherently supports the distribution chain by ensuring a consistent supply, even if the volume is non-operated. This is evident in the recent inorganic growth activities.

The expansion in late 2025 is marked by two key transactions:

• The TexMex acquisition, which closed in April 2025, added approximately 440 net BOEPD, consisting of 60 percent oil and 40 percent natural gas, sourced from assets in New Mexico, Texas, and Louisiana.
• The Minerals Acquisition in August 2025 added mineral and royalty interests in the SCOOP/STACK area of Oklahoma, bringing ownership in over 650 future drilling locations with no future capital commitments, which is a capital-light approach to expanding distribution reach into a key basin.

The core operational areas that form the backbone of EPM's distribution base include:

• Delhi Field in Northeast Louisiana.
• Williston Basin in North Dakota, characterized by oil-weighted production.
• SCOOP/STACK plays in the Anadarko Basin, Oklahoma.
• Chaveroo Oilfield in New Mexico.
• Jonah Field and Hamilton Dome Field in Wyoming.
• Barnett Shale in North Texas.

The integration of the TexMex assets contributed to the total production figure of 7,198 net BOEPD reported for the fourth quarter of fiscal 2025. The overall distribution capacity and stability are supported by a strengthened financial structure, including a credit facility expansion completed at the end of fiscal 2025, establishing an initial $65 million borrowing base under a $200 million revolver maturing June 30, 2028. This financial flexibility helps ensure that EPM can support its operators or participate in necessary maintenance/development that keeps the product flowing to market.

The following table summarizes the production impact from recent strategic additions, which directly influence the volume available through the distribution channels as of the latest reported periods:

The distribution mechanism relies on the operators' established infrastructure to move hydrocarbons from the wellhead to market hubs. EPM's non-operated status means its Place strategy is one of strategic asset selection rather than direct channel management, focusing on areas with established midstream access and high-quality operators. For example, the SCOOP/STACK acreage, which now includes mineral interests from the August 2025 acquisition, offers participation in over 650 future drilling locations, representing significant long-term placement potential within that Oklahoma play.

Evolution Petroleum Corporation (EPM) - Marketing Mix: Promotion

Promotion for Evolution Petroleum Corporation centers almost entirely on Investor Relations (IR) activities, targeting the financial community rather than the end consumer of petroleum products. This focus is evident through scheduled earnings calls and webcasts, which serve as the primary communication vehicle for the business narrative.

The consistent message communicated across these channels emphasizes capital discipline and a commitment to shareholder returns. This narrative is directly supported by concrete financial actions.

Evolution Petroleum Corporation declared a cash dividend of $0.12 per share of common stock for its fiscal second quarter 2026, payable on December 31, 2025, to stockholders of record as of December 15, 2025. This declaration marks the 49th consecutive quarterly cash dividend payment since December 31, 2013.

Management actively engages with the investment community at various forums to detail strategy and asset performance. The company utilizes investor presentations, such as the November 2025 Investor Presentation, to convey its outlook.

Key communication events and associated data points for the late 2025 period include:

Management participation in industry and research-hosted events is a key component of the promotional strategy to reach institutional investors. Specific recent and upcoming engagements include:

• Fiscal Q1 2026 Earnings Call: November 11, 2025, at 10:00 AM EST.
• LD Micro Main Event XIX: October 19-21, 2025.
• Water Tower Research Fireside Chat: September 24, 2025, at 1:00 PM CDT.
• Fiscal Q4 2025 Earnings Call: September 17, 2025, at 10:00 AM CDT.
• 2025 Louisiana Energy Conference: May 27-29, 2025.

The September 24, 2025, Water Tower Research Fireside Chat featured CEO Kelly Loyd, CFO Ryan Stash, and COO Mark Bunch discussing the recently closed SCOOP/STACK mineral and royalty acquisition.

Evolution Petroleum Corporation (EPM) - Marketing Mix: Price

Price for Evolution Petroleum Corporation (EPM) centers on the realized commodity prices achieved for oil, natural gas, and NGLs, heavily influenced by market conditions and the use of hedging strategies to manage volatility. You need to look closely at the per-unit realization against operating costs to gauge the effectiveness of their pricing strategy.

The company actively employs derivative contracts (hedges) to protect cash flow and satisfy terms within its Senior Secured Credit Facility. For instance, in the fiscal fourth quarter of 2025, the realized commodity price, excluding the impact of these derivative contracts, was $32.23 per BOE.

Looking ahead into the first fiscal quarter of 2026, the average realized commodity price, still excluding the impact of derivative contracts, settled at $31.63 per BOE. This reflects a slight decrease from the prior period's realized price.

The cost side of the equation is managed through Lease Operating Costs (LOE). In fiscal Q4 FY25, LOE was managed at $17.35 per BOE. However, for the more recent fiscal Q1 FY26, LOE increased to $19.45 per BOE, driven partly by the addition of TexMex properties and initial integration costs.

Here's a look at the year-over-year price movements for key commodities in Q4 FY25, which informs the competitive landscape you are operating in:

• Realized oil price in Q4 FY25 was down 20% year-over-year.
• Realized natural gas price in Q4 FY25 was up approximately 66% year-over-year.

To give you a clearer picture of the pricing environment Evolution Petroleum Corporation faced across these two recent periods, here is a comparison of realized prices and key operating costs:

The strategy involves balancing the realized sales price against the per-unit cost structure. For instance, the realized natural gas price saw a significant year-over-year jump of approximately 66% in Q4 FY25, which helped offset lower oil and NGL prices that quarter. Finance: draft 13-week cash view by Friday.