Evolution Petroleum Corporation, Inc.

Hello and welcome to the Evolution Petroleum Fiscal First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw from the queue, you may press star then two. As a reminder, this conference is being recorded. I would now like to hand the call to Brandi Hudson, the company's Investor Relations Manager. Ma'am, please go ahead.

Thank you. Welcome to Evolution Petroleum's Fiscal First Quarter 2025 Earnings Call. I'm joined today by Kelly Lloyd, President and Chief Executive Officer, Mark Bunch, Chief Operating Officer, and Ryan Stash, Senior Vice President, Chief Financial Officer and Treasurer. We released our fiscal first quarter 2025 financial results after the market closed yesterday. Please refer to our earnings press release for additional information containing these results. You can access our earnings release in the Investors section of our website. Please note that any statements and information provided in today's call speak only as of today's date, November 13, 2024, and any time-sensitive information may not be accurate at a later date. Our discussion today will contain forward-looking statements of management's beliefs and assumptions based on currently available information. These forward-looking statements are subject to risks, assumptions, and uncertainties as described in our SEC filings. Actual results may differ materially from those expected. We undertake no obligation to update any forward-looking statement. During today's call, we may discuss certain non-GAAP financial measures, including adjusted EBITDA, Reconciliations of these measures to the closest comparable gap measures can be found in our earnings release. Kelly will begin today's call with opening comments. Mark will provide an update on our properties and plans as they relate to our ongoing strategy of maximizing shareholder returns. And Ryan will provide a brief overview of our fiscal first quarter highlights. After our prepared remarks, the management team will be available to answer any questions. As a reminder, this conference call is being recorded. If you wish to listen to a webcast replay of today's call, it will be available on the Investors section of our website. With that, I will turn the call over to Kelly.

Thank you, Brandi, and good morning, everyone. I'm pleased to report that our team has carried the momentum established in fiscal 2024 into the first quarter of fiscal 2025. Our strong financial results this quarter underscore the effectiveness of our strategy to diversify our portfolio and mitigate exposure to commodity price volatility. As we all know, the current energy market environment presents both challenges and opportunities. Despite volatile natural gas prices, we've benefited from strong oil and natural gas liquids revenues as a result of our diversification efforts in fiscal 2024. Our strategy is to focus on assets with steady, predictable returns that allow us to thrive even amid fluctuations in commodity prices. This adaptability is key to our approach, enabling us to prioritize growth areas while managing risks, all with the aim of maximizing value for our shareholders. Now, I'd like to highlight some key operational achievements for fiscal Q1. Our total production increased by 16% year-over-year, reaching 7,478 net barrels of oil equivalent per day, driven by the positive contributions from our ScoopStack acquisitions, as well as wells drilled and completed both there and at Shavaroo. This led to a 6% increase in revenue for the quarter, supported by record oil production. At ScoopStack, Many of the wells are performing well above our initial expectations, generating both higher returns and stronger production than our original type curves predicted. Similarly, in Chavarru, production from the three horizontal San Andreas wells is meeting our expectations. These wells are a testament to our strategic focus on efficient, high return growth opportunities. As a result, We remain confident that liquids production will be strong in fiscal year 2025, enhancing our cash flow for years to come and building on our multi-year track record of executing strategic investments for the benefit of our shareholders. At Delhi, we are proceeding as planned with ExxonMobil on the development of Test Site 5 with the first of three initial wells on track to be drilled by calendar year end. Operations are on schedule with CO2 purchases having been resumed last month, which we expect will yield a positive impact on oil production and revenue, partially offset by the CO2 purchase cost. These initiatives will continue to strengthen and further diversify our organic growth portfolio. One of Evolution Petroleum's proudest achievements is our longstanding commitment to returning value to shareholders through a consistent dividend program. This quarter marks our 44th consecutive dividend payment and, as you would have seen in our press release, we announced our 45th consecutive dividend payment to be made on 12-31 for 12 cents per share. This is a testament to our dedication to delivering stable returns through varying market conditions. Supported by a diversified portfolio of low-decline, high-quality assets that require minimal capex and generate steady cash flows, our dividend strategy remains a cornerstone of our approach to shareholder return. Additions like ScoopStack and Shavaroo further enhance our capacity to sustain and grow these returns, reinforcing our confidence in the strength of our dividend program. Looking ahead, we remain focused on creating long-term value for shareholders by maximizing total returns through disciplined capital management and strategic deployment. For our current asset base, we remain steadfast in our straightforward approach, expanding in high return regions, maintaining strict cost controls, and ensuring that every decision supports our dividend program. We are well positioned with our balanced portfolio of oil and natural gas assets to continue to thrive under a variety of market conditions. We will also continue to evaluate accretive M&A opportunities and invest in our existing assets to drive further organic growth. Our track record shows that we can execute effectively on both fronts, and we continue to pursue what's best for our shareholders. With that, I'll turn the call over to our COO, Mark Bunch, to review our operations in more detail.