Evolution Petroleum Acquires Midland Basin Royalty Interests

Evolution Petroleum Corporation closed its previously announced acquisition of mineral and royalty interests in the core Midland Basin of the United States — Permian Basin for $16 million, with an effective date of August 1, 2026. The acquired interests span approximately 3,420 net royalty acres across Reagan, Upton, Glasscock, Midland, and Martin Counties, Texas. The acquisition was funded with net proceeds from a public offering of common stock, cash on hand, and borrowings under its revolving credit facility. The interests include royalties on an estimated 832 producing wells, 7 completed wells, 34 drilled but uncompleted wells, 27 permitted wells, and approximately 1,257 upside locations. Estimated current production is approximately 210 BOE/d, consisting of 65% liquids. The company expects production from the acquisition to more than double by fiscal 2029 without additional capital expenditures. The acquisition is expected to be immediately accretive to cash flow per share, generating approximately $3.9 million of next-twelve-month asset-level cash flow, implying a multiple of approximately 4.1x. Pro forma, M&R interests are expected to contribute approximately 20% of Evolution's fiscal 2027 asset cash flow mix, up from less than 10% in fiscal 2026. The company's total liquidity increased to approximately $19 million. Kelly Loyd, President and CEO, highlighted the strategic value of the acquisition in establishing M&R as a second engine for Evolution.