Evolution Petroleum to aquire oil, natural gas assets for $9M

Evolution Petroleum (EPM) has entered into a definitive agreement to acquire non-operated oil and natural gas assets in New Mexico, Texas, and Louisiana. The total purchase price for the Acquisition is $9M, subject to customary closing adjustments. The Acquisition is expected to close by the end of Evolution’s third quarter of fiscal 2025 with an effective date of February 1, 2025. The Company intends to finance the Acquisition through a combination of cash on hand and borrowings under its existing credit facility. The Acquisition expands Evolution’s diverse asset portfolio with approximately 440 barrels of oil equivalent per day of net production, consisting of a balanced commodity mix of 60% oil and 40% natural gas. The acquired assets are primarily low-decline, Proved Developed Producing properties, characterized by a sub-7% annual base decline, ensuring stable cash flows and long-term value creation. The transaction is immediately accretive to all key metrics, reinforcing Evolution’s ability to sustain and grow its shareholder returns. The portfolio consists of approximately 254 gross producing wells across all regions. The assets will be managed by a top-tier private operator, ensuring operational efficiency and the ability to maximize value.