Evolution Petroleum Announces Positive Results from Joint Interest Audit of Barnett Operator and Provides Update on Chaveroo Wells
MWN-AI** Summary
**Evolution Petroleum Announces Positive Results from Joint Interest Audit and Chaveroo Wells Update**
HOUSTON, July 1, 2025 (GLOBE NEWSWIRE) – Evolution Petroleum Corporation (NYSE American: EPM) has released initial findings from its joint interest audit of Barnett Shale properties and provided updates on its Chaveroo drilling operations.
In fiscal year 2024, Evolution undertook an audit of expenses charged by Diversified Energy Company, the principal operator of its Barnett Shale assets, covering the years 2022 and 2023. Collaborating with BRI Consulting Group, the audit revealed discrepancies, with approximately $1.8 million identified as overcharges owed to Evolution for the period from September 2021 through December 2023. This amount is expected to be recorded as a reduction in lease operating expenses and accounts payable in the Company's fiscal fourth quarter and full-year 2025 financial results. Evolution intends to conduct further audits under its joint operating agreement to ensure accurate billing practices moving forward.
CEO Kelly Loyd expressed satisfaction with the audit's progress, noting how the recovered expenses will enhance the fiscal year 2025 Adjusted EBITDA, positively influencing overall profitability.
Additionally, COO Mark Bunch provided a robust update on the latest Chaveroo drilling results, revealing that the most recent four wells, completed on schedule and under budget, have significantly exceeded production expectations following over 50 days of operation.
Evolution Petroleum is focused on enhancing shareholder returns through its investments in U.S. onshore oil and natural gas properties, seeking to build a diversified portfolio through acquisitions and development opportunities. For further information, visit www.evolutionpetroleum.com.
**Cautionary Statement:** Forward-looking statements reflect the Company's current expectations and are subject to risks and uncertainties that could cause actual results to differ.
MWN-AI** Analysis
**Market Analysis and Recommendations on Evolution Petroleum (NYSE American: EPM)**
Evolution Petroleum Corporation's recent announcement of the joint interest audit results for its Barnett Shale properties and updates on the Chaveroo wells presents an intriguing opportunity for investors. The identification of approximately $1.8 million in overcharges from operator Diversified Energy could significantly bolster the company’s financials by reducing future lease operating expenses. This improvement is expected to enhance Evolution’s Adjusted EBITDA for fiscal year 2025, which may positively reflect on its stock performance.
The successful audit process extends beyond just these initial findings. Evolution's ongoing commitment to scrutinizing its expenses could unveil further recoveries in the future, providing a long-term financial cushion. Investors should closely monitor upcoming audits and their findings, as additional recoveries could lead to increased cash flow and improved financial ratios, driving share price appreciation.
Moreover, the performance of the new Chaveroo wells is critical. With these wells reportedly outperforming expectations after more than 50 days of production, investors have reason to remain optimistic about the company’s production capabilities. Continued strong results from Chaveroo could solidify Evolution's position as a reliable player in the energy sector, fostering investor confidence and attracting new capital.
Given the promising developments in their operations and financial recoveries, Evolution Petroleum appears to be on a positive trajectory. For investors, a buy-and-hold strategy could be advisable, especially if current market conditions continue to support energy sector growth. However, it is crucial to remain aware of the inherent risks associated with oil and gas investments, including volatility in commodity prices and regulatory challenges.
In conclusion, Evolution demonstrates potential long-term value with the recent audit outcomes and improved production metrics. Investors should weigh these factors against potential risks and shifts in market conditions as they consider positions in EPM.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
HOUSTON, July 01, 2025 (GLOBE NEWSWIRE) -- Evolution Petroleum Corporation (NYSE American: EPM) ("Evolution" or the "Company") today announced the initial results of its joint interest audit of its Barnett Shale properties and is providing an update on its latest Chaveroo drilling results.
Joint Interest Audit Results
In fiscal year 2024, Evolution exercised its right to perform a joint interest audit of expenses charged from Diversified Energy Company (“Diversified”), the largest operator of its Barnett Shale properties, for the calendar years 2022–2023. This is being completed with the assistance of its joint venture auditors, BRI Consulting Group, Inc., a Houston based consulting company servicing the energy industry.
Calendar year 2022 represented the first full year that Diversified operated the Barnett Shale properties for Evolution. The initial findings produced several areas where it appeared Evolution had been over-charged and, so far, Evolution and Diversified have discovered approximately $1.8 million owed to Evolution relating to the September 2021 through December 2023 time period. This amount will be recognized as a reduction to lease operating expenses and accounts payable in the Company’s fiscal fourth quarter and full-year 2025 results. Evolution plans to continue with its rights under the joint operating agreement to audit future periods.
Kelly Loyd, President and Chief Executive Officer, commented, “Approximately one year ago, Evolution exercised its right to conduct a thorough audit of joint interest costs passed along to us over the last several years on our Barnett Shale properties. This initial audit was conducted for the 2022-2023 time period and we have preliminarily agreed on a subset of discrepancies, totaling an approximate $1.8 million in expenses that are owed back to Evolution. These reduced expenses will directly increase our fiscal year 2025 Adjusted EBITDA and will positively impact our earnings. There may be additional benefits to us from the period under audit as we continue to review the initial findings. Further, we do expect to see additional benefits to the Company as it relates to January 1, 2024 and beyond from subsequent audits and updates to billing practices as a result of the current audit findings. We want to thank Diversified for their cooperation and partnership throughout this audit process.”
Chaveroo New Drill Wells Update
Mark Bunch, Chief Operating Officer, commented, “As stated in our Fiscal third quarter earnings release, we are pleased to provide additional data on our most recent four wells at Chaveroo. We previously reported that these wells were completed on schedule and under budget. At that time, with only 10 days of production, the wells were significantly exceeding our expectations. I am pleased to report that with more than 50 days of production data, the wells continue to significantly outperform our type curves.”
About Evolution Petroleum
Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information.
Cautionary Statement
All forward-looking statements contained in this press release regarding the Company's current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as "believe," "expect," "may," "plans," "outlook," "should," "will," and words of similar meaning are forward-looking statements. Although the Company's expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading "Risk Factors" and elsewhere in our periodic reports filed with the Securities and Exchange Commission ("SEC"). The Company undertakes no obligation to update any forward-looking statement.
Contact
Investor Relations
(713) 935-0122
ir@evolutionpetroleum.com
FAQ**
How does Evolution Petroleum Corporation Inc. EPM plan to utilize the $1.8 million owed back from the joint interest audit to enhance its overall financial performance in fiscal year 2025?
What specific measures will Evolution Petroleum Corporation Inc. EPM implement to improve billing practices based on the findings from the joint interest audit with Diversified Energy Company?
Can Evolution Petroleum Corporation Inc. EPM provide further details on the performance of the newly drilled Chaveroo wells and how this affects future production forecasts?
What are the potential risks mentioned in the press release that could impact the future expectations and financial results of Evolution Petroleum Corporation Inc. EPM?
**MWN-AI FAQ is based on asking OpenAI questions about Evolution Petroleum Corporation Inc. (NYSE: EPM).
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