Evolution Petroleum Corporation, Inc.

Good morning and welcome to the Evolution Petroleum Third Quarter 2026 Earnings Release Conference Call. All participants are in a listen-only mode. Please also note today's event is being recorded. At this time, I would now like to turn the conference over to Brandi Hudson, Investor Relations Manager. Please go ahead.

Thank you. Welcome to Evolution Petroleum's fiscal Q3 2026 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 third quarter 2026 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, May 13, 2026, 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 the 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 statements. During today's call, we may discuss certain non-GAAP financial measures, including adjusted EBITDA and adjusted net income. Reconciliations to the most directly comparable GAAP measures are included in our earnings release. Kelly will begin with opening remarks followed by Mark with an operational update, and then Ryan will review the financial results. After our prepared comments, the management team will open the call for 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 investor section of our website. With that, I will turn the call over to Kelly.

Thank you, Brandi, and good morning, everyone. Before walking through the quarter, I want to step back and provide some context on where we are as a company and how we're thinking about the path forward. Over the last seven years, we have deliberately reshaped Evolution's portfolio, expanding beyond our legacy asset base into a more diversified, capital-efficient platform designed to generate durable, free cash flow through commodity cycles. That has meant adding long-life, low-decline assets, such as Jonah and Barnett, expanding our non-operated working interest base through acquisitions like Tex-Mex, and most recently, building a minerals and royalty platform that we believe can become a durable and growing component of our portfolio. The common thread across these decisions is the same, building a business with long-life assets, modest capital requirements, sustainable free cash flow, and the ability to support our dividend while compounding per share value over time. That is the framework through which we evaluate every capital allocation decision, and it is the lens through which I would encourage investors to evaluate our results, including in quarters like this one, where reported results were impacted by items that do not reflect the underlying earnings power of the business. With that context, let me address the fiscal third quarter directly. This was a more challenging period than the second quarter, and I want to be transparent about what drove the variance. A combination of isolated and largely non-operational items weighed on our reported results, including regional natural gas pricing dislocations that impacted realized prices at Jonah and Barnett, a $1.2 million one-time prior period transportation adjustment at Delhi related to changes made by the operator dating back to 2024, and weather-related production disruptions across multiple fields during the January ice storms. These are not structural issues. They don't reflect any change in the underlying quality of our assets or our cost structure or our strategy. These were largely timing-related and one time in nature, and we expect underlying performance to normalize as they roll off. Setting those items aside, what stands out to me is how the portfolio held up despite those headwinds. Production was essentially flat year over year at 6,700 BOE per day, a result we view as a meaningful sign of resilience given the level of weather-related disruption and downtime we experienced in the quarter. Contributions from our new acquisitions helped offset downtime and natural declines at certain assets. which is exactly the kind of portfolio-level stability we have been working to build. This reflects the benefits of diversification across assets, commodities, and operating partners. That diversification is not accidental. It is the direct result of the capital allocation discipline we have applied consistently over multiple years. On our mineral and royalty program, We continued to make progress during the quarter. We completed two additional Louisiana mineral and royalty acquisitions targeting the Haynesville and Bossier shales, bringing the total consideration for our Louisiana minerals to approximately $5 million. These assets are being actively developed by operators in the area. Wells are being drilled and completed, and we expect contributions from these positions to begin building as that activity translates into production. All of that to say, the financial contribution from our minerals platform is still in early stages. However, the activity we see from operators gives us confidence that the production ramp we underwrote when we made these acquisitions is right on track. We will provide more specific updates as those results come through. As we move into the fiscal fourth quarter, we expect the picture to look meaningfully different. The prior period del high adjustment is behind us. February gas dislocation at Jonah was a singular weather event. Differentials are returning to more normal levels. The Tex-Mex workover program is in its final phase, and we expect that asset to be a more meaningful contributor as that work is completed. The combination of these factors, alongside the continued ramp of our minerals and royalty assets, gives us confidence that the fourth quarter will better reflect the underlying earnings power of this business. We expect to generate robust cash flow in the fourth quarter and beyond, which reinforces our continued confidence in the dividend. In addition, we believe the current commodity price environment provides incremental upside from here. On May 11th, our board declared our 51st consecutive quarterly dividend and 16th consecutive dividend at $0.12 per share. a milestone that reflects the durability of our underlying cash generation across a range of commodity environments. Our capital allocation framework has not changed. Protect the balance sheet, support a dividend we believe is sustainable through cycles, and deploy capital where we see compelling risk-adjusted returns. As always, dividends are paid at levels that are meant to be sustainable given the current outlook for multiple years to come. This portfolio has always been designed to withstand any ill effects of the odd difficult quarter, and it is this same framework that gives us confidence in what we expect to be a strong finish to fiscal 2026. Before I hand it over to Mark for more detail on our operations, I want to leave you with one final thought. Looking at the broader picture for commodity prices, In March of 2026, WTI oil prices reached their highest levels since 2022 and remain at elevated, although highly backward-dated risk premium levels. The significant increase in forward oil commodity prices as of March 31st resulted in an unrealized loss on the mark-to-market value of our hedges for the quarter. Additionally, The large non-cash loss associated with unrealized hedge losses was based off of a crude oil strip at the end of March where spot prices for WTI were over $100 per barrel. No one knows where WTI will be at 6-30-2026, but where we sit today, we think it is likely that the unrealized losses will show a reversal in the next quarter. Although our unrealized gains and losses on hedges will fluctuate as forward commodity prices change, I sometimes think that people forget that selling oil for higher prices than our hedges is a really good thing. The current oil price environment will provide incremental upside in the fourth quarter as we expect to benefit from the higher pricing to the extent that prices exceed our applicable oil hedges. Additionally, our NGLs, which are priced as a percentage of crude oil, remain unhedged and should receive the full benefit of pricing. As far as our natural gas hedges are concerned, we expect to realize a benefit as our hedges are priced at levels higher than current strip pricing. With that, I'll turn the call over to Mark.