Evolution Petroleum targets workover gains at TexMex and six-well permit at Chaveroo by year-end

Evolution Petroleum (NYSE American: EPM) has said it expects two operating milestones before the end of its fiscal fourth quarter, a period the company's guidance places in October to December 2026.

What is due

• TexMex: The company began a new workover program after its March quarter-end. It expects the work to add 100 net barrels of oil equivalent per day (BOEPD) by the end of fiscal Q4. The CEO separately described "more than 100 net BOEPD" of incremental production as optimization work is completed.
• Chaveroo Field: The company expects to secure permits for its next drilling block, six gross wells, before the end of fiscal Q4.

Permits are only a first step. The company has not stated a drilling start date or well costs for the block.

Why it matters

Evolution reported average production of 6,700 BOEPD in the March quarter, so an extra 100 net BOEPD would equal roughly 1.5% of that rate. That is a modest gain, though workovers are described by management as low-cost.

The company's earlier results were weaker. Revenue for the quarter ended March 31, 2026 fell 11% to $20.2 million from $22.6 million a year earlier. It posted a net loss of $8.9 million, against a loss of $2.2 million a year earlier. Adjusted EBITDA dropped 58% to $3.1 million.

Management pointed to several causes: lower gas price differentials at Jonah Field and Barnett Shale, a one-time $1.2 million transportation charge adjustment at Delhi Field, $2.2 million of realized hedge losses, and more than 300 BOEPD of downtime from January weather, facility optimization and equipment failures. It said production was substantially restored.

What it holds

The company's stakes in older fields include a 24% interest in Delhi Field (oil reserve of 6.484 million barrels, P50) and in Hamilton Dome Field (1.851 million barrels). It also holds 20% of Jonah Field (42.8 billion cubic feet of gas) and 17% of Barnett Shale (48.571 billion cubic feet of gas). These reserve estimates date from 2021 and 2022, so they may not reflect current figures. It has also been adding Louisiana mineral and royalty interests, and expects 23 wells tied to those acquisitions to begin producing in the near term.

What is uncertain

The timing is stated by the company, not confirmed. The fiscal Q4 window has now arrived, and the company has not yet reported whether either milestone has been met. Earlier-quarter downtime shows how equipment problems can erode production gains.

The company also declared its 51st consecutive quarterly dividend of $0.12 per share, payable June 30, 2026.