Evolution Petroleum Reports Resilient Q2 Results

Stronger cash flow and profitability driven by improved natural gas pricing and lower operating costs

Published on Feb. 14, 2026

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Evolution Petroleum (NYSEAMERICAN:EPM) reported fiscal second-quarter 2026 results that management said highlighted the 'resiliency' of its portfolio and the impact of a growing minerals and royalty business, even as commodity prices remained mixed. Executives emphasized stronger cash flow and profitability driven by improved natural gas pricing, incremental contributions from recent minerals acquisitions, and lower operating costs, achieved 'without meaningfully increasing capital intensity'.

Why it matters

Evolution Petroleum's ability to maintain profitability and cash flow despite mixed commodity prices underscores the resilience of its business model, which focuses on enhanced oil recovery through carbon dioxide injection and a growing minerals and royalty portfolio. This performance is notable given the challenges facing the oil and gas industry.

The details

For the fiscal second quarter, Evolution posted total revenues of $20.7 million, up 2% year-over-year. The increase was primarily driven by a 6% increase in production volumes and higher realized natural gas prices, partially offset by lower oil and NGL pricing. Lease operating expenses were $11.5 million, or $16.96 per BOE, versus $20.05 per BOE in the year-ago quarter, reflecting underlying cost reductions tied to the company's mineral and royalty acquisitions, the cessation of CO2 purchases at the Delhi field, and 'certain one-time items' recognized during the quarter.

  • For the fiscal second quarter of 2026, Evolution Petroleum reported its results.

The players

Evolution Petroleum

An independent oil and natural gas company focused on enhanced oil recovery (EOR) through the use of carbon dioxide, headquartered in Houston, Texas.

Ryan Stash

Chief Financial Officer of Evolution Petroleum.

Kelly Loyd

Chief Executive Officer of Evolution Petroleum.

Mark Bunch

Chief Operating Officer of Evolution Petroleum.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

Evolution Petroleum's resilient performance in the face of mixed commodity prices highlights the strength of its business model, which combines enhanced oil recovery, a growing minerals and royalty portfolio, and disciplined capital allocation. The company's focus on durable cash flow assets and selective acquisitions positions it well to navigate the challenges facing the oil and gas industry.