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what it is
Evolution Petroleum buys stakes in U.S. oil and gas fields and collects cash from production.
how it gets paid
Last year Epm made $86M in revenue. Delhi Field was the main engine at $24M, or 28% of sales.
growth snapshot
Revenue was roughly flat last year at $86M. $42M mattered because one quarter produced nearly half of the company's $86M annual revenue.
what just happened
The latest quarter showed a sharp rebound, with revenue jumping to $42M and EPS reaching $0.05.
At a glance
C++ balance sheet — some cracks in the foundation
30/100 earnings predictability — expect surprises
156.3x trailing p/e — you're paying up for this one
10.2% dividend yield — cash in your pocket every quarter
2.4% return on capital — nothing to write home about
xvary composite: 41/100 — below average
What they do
Evolution Petroleum buys stakes in U.S. oil and gas fields and collects cash from production.
This is a tiny company with 11 employees managing 27.1 MMBOE of proved reserves. You are betting on a lean middleman model: EPM owns non-operated interests, partners do the field work, and overhead stays light. That setup matters when your annual revenue is just $86M.
How they make money
$86M
annual revenue · their business grew -0.0% last year
Delhi Field
$24M
Barnett Shale
$18M
Williston Basin
$16M
Jonah Field
$12M
Hamilton Dome
$10M
Texas royalty interests
$6M
The products that matter
core field exposure
Chaveroo Field
key producing asset
Management flagged it as a key field, and output rose vs. prior year from wells brought online over the past 12 months. For a small company, one field doing better is not trivia. It moves the story.
production matters
collects royalty income
Onshore Royalty Interests
$86M revenue base
This is the current business: $86M in annual revenue from non-operated interests across U.S. onshore wells. In human-speak: you are buying cash flow tied to other operators doing their jobs.
current cash engine
acquires new interests
Royalty & Mineral Pipeline
no new drilling last quarter
With no new drilling last quarter, future growth depends more on buying additional royalty interests than on an internal production ramp. That shifts the burden to capital allocation.
capital allocation bet
Key numbers
10.2%
dividend yield
You are getting paid 10.2% a year to wait, which is the whole reason this stock stays on income screens.
156.3x
trailing p/e
That multiple means the market is paying $156 for each $1 of trailing earnings, which is expensive for a tiny commodity producer.
2.4%
return on capital
Return on capital means profit earned on the money tied up in the business. At 2.4%, the assets are not working very hard.
$53M
long-term debt
Debt is 24% of capital, which is fine in good oil markets and less fun when prices roll over.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 25 / 100
- long-term debt $53M (24% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for EPM right now.
source: institutional data · return history unavailable
What just happened
beat estimates
The latest quarter showed a sharp rebound, with revenue jumping to $42M and EPS reaching $0.05.
Revenue rose 103% vs. prior year and EPS climbed 67% in the latest quarter. That sounds great until you zoom out and see full-year revenue stuck at $86M and this year's EPS estimate at just $0.03.
$42M
revenue
$0.05
eps
gross margin
the number that mattered
$42M mattered because one quarter produced nearly half of the company's $86M annual revenue, which tells you results can swing hard.
source: company earnings report, 2026
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What could go wrong
EPM is a small royalty business asking the dividend to do a lot of storytelling. When revenue is $86M, return on capital is 2.4%, and the stock yields 10.2%, you do not need many things to go wrong before the income case gets uncomfortable.
high
dividend coverage risk
A 10.2% yield attracts attention fast. It also needs support. If production slips or realized prices weaken, the current $0.12 per share payout comes under scrutiny.
income thesis at risk
high
valuation mismatch
The stock trades at 156.3x trailing earnings while return on capital is 2.4%. That is a premium multiple attached to low-return economics. Those two numbers do not naturally belong together.
multiple compression
med
asset concentration
Management has pointed investors to fields like Chaveroo. When a small company depends on a limited set of producing assets, softness in one place matters more.
production volatility
med
balance sheet flexibility
EPM carries $53M of long-term debt, or 24% of capital, with a C++ balance sheet grade. That is manageable until a weak commodity stretch lasts longer than expected.
less room for error
$86M in annual revenue, $53M in long-term debt, and 2.4% return on capital leave limited room for a 10.2% yield to do all the heavy lifting.
source: institutional data · regulatory filings · risk analysis
Pay attention to
dividend
does the next payout stay at $0.12
For EPM, a dividend declaration below $0.12 per share would be a direct hit to the core income thesis. That's the cleanest kill criterion on the page.
calendar
Q3 2026 earnings report
The next report needs to show whether the Q2 jump to $8.0M of adjusted EBITDA was a step forward or just a good quarter.
balance sheet
debt versus cash generation
$53M of long-term debt is not fatal, but it matters more when annual revenue is only $86M and growth is flat.
operations
new drilling or new royalty deals
There was no new drilling last quarter. If that continues, acquisitions need to carry the growth story from here.
Analyst rankings
earnings predictability
30 / 100
in human-speak, analysts do not view these earnings as steady. expect more noise than certainty.
risk rank
3
Middle-of-the-pack risk. Not unusually dangerous, but not the kind of stock you hide in when energy prices get messy.
price stability
25 / 100
The share price has not been especially stable. If you own it for yield, expect the quote to test your patience anyway.
source: institutional data
Institutional activity
institutional ownership data for EPM is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$5
current price
n/a
target midpoint · n/a from current
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