Evolution Petroleum Corp (EPM) 2025 Q3 法說會逐字稿

Good morning, everyone, and welcome to the Evolution Petroleum fiscal third-quarter 2025 earnings conference call. (Operator Instructions) Please also note today's event is being recorded.

大家早安，歡迎參加 Evolution Petroleum 2025 財年第三季財報電話會議。（操作員指示）另請注意，今天的活動正在被記錄。

At this time, I'd like to turn the call over to Brandi Hudson, the company's Investor Relations Manager. Ma'am, please go ahead.

現在，我想將電話轉給公司投資者關係經理布蘭迪·哈德森 (Brandi Hudson)。女士，請繼續。

Thank you. Welcome to Evolution Petroleum's fiscal third-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.

謝謝。歡迎參加 Evolution Petroleum 2025 財年第三季財報電話會議。今天與我一起出席的還有總裁兼首席執行官凱利·勞埃德 (Kelly Lloyd)、首席營運官馬克·邦奇 (Mark Bunch) 和高級副總裁、首席財務官兼財務主管瑞安·斯塔什 (Ryan Stash)。

We released our fiscal third-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, May 14, 2025, and any time-sensitive information may not be accurate at a later date.

我們在昨天股市收盤後公佈了 2025 財年第三季的財務表現。請參閱我們的收益新聞稿以獲取包含這些結果的更多資訊。您可以在我們網站的「投資者」部分存取我們的收益報告。請注意，今天電話會議中提供的任何聲明和資訊僅代表截至今天（2025 年 5 月 14 日）的觀點，任何時間敏感資訊在以後可能不再準確。

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 statement.

我們今天的討論將包含基於當前可用資訊的管理層信念和假設的前瞻性陳述。這些前瞻性陳述受我們向美國證券交易委員會提交的文件中所描述的風險、假設和不確定性的影響。實際結果可能與預期結果有重大差異。我們不承擔更新任何前瞻性聲明的義務。

During today's call, we may discuss certain non-gap financial measures, including adjusted EBITDA and adjusted net income. Reconciliations of these measures to the closest comparable GAAP measures can be found in our earnings relief.

在今天的電話會議中，我們可能會討論某些非差距財務指標，包括調整後的 EBITDA 和調整後的淨收入。在我們的收益減免中可以找到這些指標與最接近的可比較 GAAP 指標的對帳。

Kelly will begin today's call with opening comments and review of the company's ongoing plans and strategy. Mark will provide an update on operations during the quarter, and Ryan will provide a brief overview of our fiscal third-quarter financial highlights.

凱利將在今天的電話會議上發表開場評論並回顧公司正在進行的計劃和策略。馬克將提供本季營運的最新情況，瑞安將簡要概述我們第三季的財務亮點。

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.

在我們準備好發言後，管理團隊將隨時回答任何問題。提醒一下，本次電話會議正在錄音。如果您希望收聽今天電話會議的網路直播重播，您可以在我們網站的投資者部分收聽。說完這些，我會把電話轉給凱利。

Thank you, Brandi, and good morning, everybody. Our fiscal third-quarter results demonstrated Evolution's commitment to disciplined, capital allocation, and strategic execution. We stayed grounded in our core strengths, allocating capital prudently to high quality, low decline assets, maintaining our long-standing dividend, and generating positive cash flow.

謝謝你，布蘭迪，大家早安。我們的第三季財報業績反映了 Evolution 對紀律、資本配置和策略執行的承諾。我們堅守核心優勢，審慎地將資本配置給高品質、低衰減的資產，維持長期股息，並產生正現金流。

Our diversified portfolio, robust hedging strategy, and measured approach to development is enabling us to weather market volatility while continuing to deliver long-term value. Subsequent to quarter end, we closed the Tex-Mex acquisition and brought online four new wells in our second Chaveroo development block. Together, these additions are currently contributing more than 850 net barrels of oil equivalent per day and are expected to meaningfully benefit our fiscal fourth-quarter production and cash flow, especially when coupled with the recent strength in natural gas pricing.

我們多元化的投資組合、穩健的對沖策略以及審慎的發展方式使我們能夠抵禦市場波動，同時繼續提供長期價值。季度末之後，我們完成了對 Tex-Mex 的收購，並在第二個 Chaveroo 開發區塊中投產了四口新井。目前，這些新增產能每天貢獻超過 850 桶淨油當量，預計將對我們第四季的產量和現金流產生重大影響，尤其是考慮到近期天然氣價格的走強。

We also expect to see production adds from ongoing activities in our scoop stack area. The Tex-Mex acquisition, which closed in April, adds approximately 440 barrels of oil equivalent per day of stable, low decline production with a balanced commodity mix of 60% oil and 40% natural gas. The $9 million transaction was completed at a very attractive valuation of approximately 3.4 times forward adjusted based on current strip pricing underscoring its strong near- and long-term accretion even amid recent oil price volatility.

我們也希望看到鏟鬥堆放區正在進行的活動帶來產量的增加。Tex-Mex 的收購於四月完成，將為公司帶來約 440 桶油當量/天的穩定、低遞減產量，其商品結構均衡，其中石油佔 60%，天然氣佔 40%。這筆價值 900 萬美元的交易以極具吸引力的估值完成，該估值約為根據當前價格進行遠期調整後的 3.4 倍，凸顯了即使在近期油價波動的情況下，其強勁的近期和長期增值。

The portfolio consists of producing wells across New Mexico, Texas, and Louisiana and aligns with our long-term strategy to own cash-generative, low-risk assets. Consistent with our disciplined approach, we structured this transaction to preserve the strength of our balance sheet. The $9 million purchase was funded through a combination of cash on hand and a modest $2 million draw on our credit facility.

該投資組合包括新墨西哥州、德克薩斯州和路易斯安那州的生產井，符合我們擁有現金生成、低風險資產的長期策略。按照我們嚴謹的做法，我們設計了這筆交易以保持我們資產負債表的強勁。900 萬美元的購買資金是透過庫存現金和從我們的信貸額度中提取的 200 萬美元來支付的。

We are now working closely with the operator to evaluate low-cost reactivation opportunities that could provide additional long-term upside. This marks our seventh highly accretive acquisition in six years, and we continue to see an encouraging M&A market, even more so now amid oil price volatility.

我們目前正與營運商密切合作，評估可能帶來額外長期利益的低成本恢復機會。這是我們六年來第七次高增值收購，我們繼續看到令人鼓舞的併購市場，尤其是在當前油價波動的背景下。

In the last six years, we've invested $136 million to grow production by more than 3.5 times, all while returning capital to shareholders with our quarterly dividend. With a well-established track record, we remain confident in our ability to source, evaluate, and integrate high quality non-operated assets at incredible value.

在過去的六年裡，我們投資了 1.36 億美元，使產量提高了 3.5 倍以上，同時透過季度股息向股東返還資本。憑藉良好的業績記錄，我們對自己以令人難以置信的價值尋找、評估和整合高品質非營運資產的能力充滿信心。

Taking a look at the broader energy market, as we all know, oil prices softened during April, falling nearly $12 a barrel in one week to sub $60. However, natural gas prices have strengthened of late, providing a partial offset to the softness in crude prices.

縱觀更廣泛的能源市場，眾所周知，4 月份油價走軟，一周內下跌近 12 美元/桶，至 60 美元以下。不過，天然氣價格近期有所走強，部分抵銷了原油價格的疲軟。

Our diversified commodity exposure helped mitigate the impact of weaker oil revenue. Our third-quarter natural gas revenue rose 33% year over year to $7.8 million. And NGL revenue was up 14% to $3 million, partially offsetting a 19% decline in oil revenue. This volatile market environment underscores the value and resiliency of our diversified portfolio.

我們多元化的商品投資有助於減輕石油收入下降的影響。我們第三季的天然氣收入年增 33%，達到 780 萬美元。NGL 營收成長 14%，達到 300 萬美元，部分抵銷了石油收入 19% 的下降。這種動盪的市場環境凸顯了我們多元化投資組合的價值和彈性。

We remain well hedged on oil, with approximately 40% of oil volumes hedged at prices above $70 through the fiscal year end, providing a strong safety net that supports both our CapEx program and dividend.

我們對石油的對沖仍然很到位，截至財年末，約有 40% 的石油交易量以高於 70 美元的價格進行了對沖，為我們的資本支出計劃和股息提供了強大的安全網。

Operationally, our operators executed well despite some temporary disruptions during the quarter. Total production declined 7.5% year over year to 6,667 barrels of oil equivalent per day, primarily due to plan maintenance at Delhi and weather-related downtime in Barnett.

從營運角度來看，儘管本季出現了一些暫時的中斷，但我們的營運商表現良好。總產量年減 7.5% 至每天 6,667 桶油當量，主要原因是德里的計畫維護和巴奈特因天氣原因停工。

Overall, we are maintaining our focus on operational execution and continue to make meaningful progress across our various development programs. As I mentioned earlier, we drilled and completed four new gross wells in the second Chaveroo development block which were brought online shortly after the quarter ended.

整體而言，我們將繼續專注於營運執行，並繼續在各個開發專案中取得有意義的進展。正如我之前提到的，我們在第二個 Chaveroo 開發區塊鑽探並完成了四口新的總井，這些井在本季度結束後不久就投入使用。

While it's still too early to fully assess how the wells will perform, we're encouraged by the efficient execution, drilling and completing the four wells for less than budget, and the highly positive initial results. Mark will have more updates to share across our portfolio shortly.

雖然現在全面評估這些油井的表現還為時過早，但我們對這四口油井的高效執行、低於預算的鑽探和完井以及非常積極的初步結果感到鼓舞。馬克很快就會在我們的投資組合中分享更多更新內容。

In terms of capital allocation, dividend sustainability remains a top priority for us. On May 12, our Board declared a cash dividend of $0.12 per share of common stock, marking our 47th consecutive quarter of issuing a dividend and our 12th consecutive quarter at $0.12 per share. It's important to underscore that this dividend was not declared as a one-time event.

在資本配置方面，股利可持續性仍然是我們的首要任務。5 月 12 日，董事會宣布派發每股普通股 0.12 美元的現金股息，這是我們連續第 47 個季度派發股息，也是連續第 12 個季度派發每股 0.12 美元的股息。需要強調的是，此次股息並非一次性事件。

Despite the ongoing volatility in commodity prices, the Board's decision reflects our confidence in evolution's ability to sustain dividends at this level over the long term. Our ability to generate strong operating cash flow driven by our diversified portfolio of assets enables us to meet our capital requirements, repay debt, and continue to return capital to shareholders. To date, Evolution has returned approximately $131 million or $3.93 per share to shareholders in common stock dividends.

儘管大宗商品價格持續波動，董事會的決定反映了我們對 Evolution 長期維持這一水平股息的能力的信心。我們多元化的資產組合能夠產生強勁的經營現金流，這使我們能夠滿足資本需求、償還債務並繼續向股東返還資本。迄今為止，Evolution 已以普通股股息的形式向股東返還約 1.31 億美元或每股 3.93 美元。

Looking ahead, our strategy remains focused on preserving financial flexibility, sustaining our dividend, and pursuing opportunistic growth. The fruits of our disciplined acquisition and development strategy during fiscal Q3 will be made obvious in our fiscal fourth quarter when we will see the effects of our Tex-Mex acquisition and our four new Chaveroo wells begin to contribute to our quarterly results.

展望未來，我們的策略仍專注於維持財務靈活性、維持股息和追求機會性成長。我們在第三財季實施的嚴謹的收購和開發策略的成果將在第四財季顯現出來，屆時我們將看到收購 Tex-Mex 的效果以及我們的四口新 Chaveroo 油井開始為我們的季度業績做出貢獻。

While we are committed to long-term development, we recognize that there are optimal times to develop new wells and optimal times to acquire new assets. In light of the recent market volatility, we, in coordination with our operating partner at Chaveroo, have made the decision to delay the start of our third development block to later into our fiscal year '26.

雖然我們致力於長期發展，但我們認識到開發新井和獲取新資產的最佳時機。鑑於最近的市場波動，我們與 Chaveroo 的營運合作夥伴協調，決定將第三個開發區塊的啟動時間推遲到 26 財年稍後。

We believe it's prudent to now focus our development activities toward gas-weighted opportunities, particularly in the SCOOP/STACK. This disciplined strategy enables us to preserve near-term cash flow while positioning us to resume development when oil prices are more favorable. By maintaining a measured development approach in a low-price environment, we are effectively preserving long term resource value for our shareholders.

我們認為，現在將開發活動重點放在天然氣加權機會上是明智之舉，尤其是在 SCOOP/STACK 領域。這種嚴謹的策略使我們能夠保持短期現金流，同時使我們能夠在油價更有利時恢復開發。透過在低價環境中保持審慎的開發方式，我們有效地為股東保留了長期資源價值。

In the interim, we're actively pursuing opportunities in what we view as a highly attractive market to acquire oil-weighted, low decline producing assets or natural gas properties with favorable hedging potential. All said, our decision making will remain grounded in disciplined capital allocation, financial flexibility, and a commitment to delivering long-term value for our shareholders.

在此期間，我們正在積極尋求機會，在我們認為極具吸引力的市場中收購以石油為主導、產量遞減率較低的資產或具有良好對沖潛力的天然氣資產。總而言之，我們的決策仍將以嚴謹的資本配置、財務靈活性以及為股東創造長期價值的承諾為基礎。

With that, I'll turn the call over to our COO, Mark Bunch, to review our operations in more detail. Mark.

說完這些，我將把電話轉給我們的營運長馬克邦奇 (Mark Bunch)，讓他更詳細地審查我們的營運情況。標記。

Thanks, Kelly, and good morning, everyone. I will focus my remarks on key operational highlights from the quarter and encourage listeners to review our earnings press release and filings for details across our asset base. At SCOOP/STACK, 13 gross wells have come online fiscal year-to-date; we have another five gross wells in progress. Since the effective date of the acquisition, a total of 35 gross wells or 0.6 net wells have been brought online.

謝謝，凱利，大家早安。我的演講將重點關注本季度的主要營運亮點，並鼓勵聽眾查看我們的收益新聞稿和文件，以了解我們資產基礎的詳細資訊。在 SCOOP/STACK，本財年迄今已有 13 口總井投入使用；我們還有另外 5 口總井正在興建中。自收購生效以來，共有 35 口總井或 0.6 口淨井投入使用。

At Chaveroo, as Kelly mentioned, we successfully completed and brought online four new gross wells in the second development block of the field. All four wells were drilled and completed on schedule and under budget. Since production commenced about two weeks ago, it is too early to assess production trends, but so far initial rates have significantly exceeded our expectations. We will continue to monitor these wells closely and will provide an update on performance in the coming quarter.

正如凱利所提到的，在 Chaveroo，我們成功完成並上線了該油田第二個開發區塊的四口新井。所有四口井均按計劃並在預算內完成鑽探和完工。由於生產大約兩週前開始，現在評估生產趨勢還為時過早，但到目前為止，初始產量已大大超出我們的預期。我們將繼續密切監測這些油井，並在下一季提供最新性能資訊。

At Delhi, production was temporarily affected by planned maintenance at both the Delhi Central facility, resulting in the shutdown of the entire field for a few days, and the NGL plant for approximately two weeks. At the end of the quarter, the decision was made to switch from purchasing of approximately 80 million cubic feet per day of CO2 to injecting additional water instead.

在德里，由於德里中央工廠的計劃維護，生產暫時受到影響，導致整個油田停工幾天，NGL 工廠停工約兩週。在本季末，公司決定從每天購買約 8,000 萬立方英尺的二氧化碳改為注入額外的水。

Exxon will continue to inject approximately 300 million cubic feet per day of recycled CO2. We believe this will be the most economical way to run the field and will significantly reduce operating costs while maximizing cash flow.

埃克森美孚將繼續每天注入約 3 億立方英尺的再生二氧化碳。我們相信這將是營運該油田最經濟的方式，並將顯著降低營運成本，同時最大化現金流。

In the Williston Basin, we experienced good run time for the quarter. Production was up quarter to quarter due to deferred oil sales and third-party gathering system issues experienced in the prior quarter. The Williston field continues to generate solid returns.

在威利斯頓盆地，我們本季的運作時間良好。由於上一季石油銷售延期以及第三方收集系統出現問題，產量較上季上升。威利斯頓油田持續產生豐厚的回報。

At Hamilton Dome, production remains steady throughout the quarter with no notable operational activity or downtime. The field continues to perform reliably, delivering consistent oil volumes in line with expectations. Jonah also remained steady during the quarter with a temporary dip in volumes during February. Strong winter natural gas pricing contributed positively to its overall cash flow for the quarter.

在漢密爾頓穹頂，整個季度的生產保持穩定，沒有明顯的營運活動或停機時間。該油田持續可靠運行，產油量穩定，符合預期。喬納本季也保持穩定，但 2 月銷量暫時下降。強勁的冬季天然氣價格對本季的整體現金流產生了積極影響。

Barnett Shale delivered consistent cash flow generation in the third quarter. Despite some brief downtime in January due to winter storms. Production remained steady overall, with improved pricing for natural gas and NGL serving as a tailwind. These favorable pricing dynamics helped offset broader commodity price weakness and underscore Barnett's continued role as a valuable contributor to our diversified portfolio.

巴奈特頁岩公司第三季實現了持續的現金流。儘管一月份由於冬季風暴而出現短暫的停工。整體產量保持穩定，天然氣和液化天然氣價格上漲起到了推動作用。這些有利的定價動態有助於抵消更廣泛的商品價格疲軟，並強調了巴內特作為我們多元化投資組合的寶貴貢獻者的持續作用。

With that, I will turn the call over to our CFO, Ryan Stash, to review our financials in more detail. Ryan.

說完這些，我將把電話轉給我們的財務長 Ryan Stash，讓他更詳細地審查我們的財務狀況。瑞安。

Thank you, Mark, and good morning. As Brandi mentioned earlier, we released our earnings yesterday which contains more information on our results. Now I'd like to go through our fiscal third-quarter financial highlights.

謝謝你，馬克，早安。正如布蘭迪之前提到的，我們昨天發布了收益，其中包含更多有關我們業績的資訊。現在我想介紹一下我們第三季的財務亮點。

In fiscal Q3, we had total revenues of $22.6 million, down 2% year over year. The decline was driven primarily by an 8% decrease in production volumes, partially offset by a 7% increase in average realized commodity prices driven by stronger natural gas and NGL prices.

第三財季，我們的總營收為 2,260 萬美元，年減 2%。下降的主要原因是產量下降了 8%，但天然氣和 NGL 價格走強導致商品平均實現價格上漲 7%，部分抵消了這一影響。

The decrease in production volumes was largely due to downtime at Barnett in January due to winter storms and one week of planned maintenance at Delhi, partially offset by higher production from a full quarter of contribution from SCOOP/STACK compared to the prior-year period.

產量下降主要是因為巴奈特核電廠 1 月因冬季風暴而停工，以及德里核電廠進行為期一周的計劃維護，但與去年同期相比，SCOOP/STACK 貢獻了整整一個季​​度的產量，從而部分抵消了產量下降的影響。

Net loss for the third quarter was $2.2 million or $0.07 per share compared to net income of $0.3 million or $0.01 per share in the year-ago period. After excluding the impact of unrealized hedging losses, adjusted net income for Q3 was $0.8 million or $0.02 per diluted share compared to $1 million or $0.03 per diluted share for the prior-year period.

第三季淨虧損為 220 萬美元，即每股 0.07 美元，去年同期淨收入為 30 萬美元，即每股 0.01 美元。在剔除未達到避險損失的影響後，第三季調整後淨收入為 80 萬美元，即每股攤薄收益 0.02 美元，而去年同期調整後淨收入為 100 萬美元，即每股攤薄收益 0.03 美元。

Adjusted EBITDA was $7.4 million compared to $8.5 million in the year-ago period. The decrease was primarily due to lower revenues as a result of lower production volumes and higher total operating costs due to CO2 purchases at Delhi, which were suspended in February 2024 but were resumed last October. However, adjusted EBITDA for Q3 was 30% higher than Q2, primarily as a result of higher commodity prices, especially natural gas and NGLs.

調整後的 EBITDA 為 740 萬美元，而去年同期為 850 萬美元。收入下降的主要原因是產量下降導致收入減少，以及德里工廠採購二氧化碳導致總營運成本上升。德里工廠的二氧化碳採購於 2024 年 2 月暫停，但於去年 10 月恢復。然而，第三季的調整後 EBITDA 比第二季高出 30%，這主要是由於大宗商品價格上漲，尤其是天然氣和天然氣液體 (NGL)。

Our hedging program remains a key pillar of our risk management strategy. We believe our proactive approach to hedging, coupled with our diversified portfolio, position us well to navigate continued volatility while sustaining our dividend and meeting capital commitments. We will continue to monitor the markets and opportunistically add hedges as necessary to preserve long-term cashless stability to support our dividends.

我們的對沖計劃仍然是我們風險管理策略的重要支柱。我們相信，我們積極主動的對沖方式，加上我們多元化的投資組合，使我們能夠很好地應對持續的波動，同時維持我們的股息並履行資本承諾。我們將繼續監控市場，並在必要時適時增加對沖，以保持長期無現金穩定性，從而支持我們的股息。

We have negotiated with our lender to provide additional flexibility for our hedging program to allow us to hedge additional gas volumes instead of crude oil to meet the hedging obligations under our credit facility.

我們已經與貸款人協商，為我們的對沖計劃提供額外的靈活性，以允許我們對沖額外的天然氣而不是原油，以履行我們信貸安排下的對沖義務。

At March 31, 2025, cash and cash equivalents totaled $5.6 million and borrowings outstanding under a revolving credit facility were $35.5 million giving us total liquidity of $20.1 million. In fiscal Q3, we paid $4.1 million in common stock dividends, made $4 million in repayments on our senior secured credit facility, paid $1.8 million in deposits for the Tex-Mex acquisition, and incurred $4.4 million in capital expenditures.

截至 2025 年 3 月 31 日，現金及現金等價物總額為 560 萬美元，循環信貸額度下的未償還借款為 3,550 萬美元，使我們的總流動資金達到 2,010 萬美元。在第三財季，我們支付了 410 萬美元的普通股股息，償還了 400 萬美元的優先擔保信貸額度，支付了 180 萬美元的 Tex-Mex 收購定金，並發生了 440 萬美元的資本支出。

During the quarter, we also sold a total of approximately 0.2 million shares of common stock under our at-the-market sales agreement for net proceeds of approximately $1.1 million after deducting less than $0.1 million in offering costs.

在本季度，我們還根據市場銷售協議出售了總計約 0.2 百萬股普通股，扣除不到 0.1 百萬美元的發行成本後，淨收益約為 1.1 百萬美元。

In regard to our revolving credit facility, we have received approval from our lender, MidFirst Bank to extend the maturity of our facility to April 2028 and increase their total commitments from $50 million to $55 million. Also, we expect to receive $10 million in additional commitments from a new lender, Prism Bank, which will bring our total commitments to $65 million. We currently expect to close on the additional commitments and the maturity extension during our fiscal fourth quarter.

關於我們的循環信貸額度，我們已獲得貸款方 MidFirst Bank 的批准，將我們的信貸額度期限延長至 2028 年 4 月，並將其總承諾金額從 5000 萬美元增加到 5500 萬美元。此外，我們預計將從新的貸款機構 Prism Bank 獲得 1000 萬美元的額外承諾，這將使我們的總承諾額達到 6500 萬美元。我們目前預計將在第四財季完成額外的承諾和期限延長。

Yesterday we declared a quarterly cash dividend of $0.12 per share payable on June 30, 2025, to stockholders of record on June 13, 2025. This will be our 47th consecutive quarterly dividend, underscoring our commitment to returning capital to shareholders and maintaining a stable and reliable dividend policy. I'll now hand it back over to Kelly for closing comments.

昨天，我們宣布向 2025 年 6 月 13 日登記在冊的股東派發每股 0.12 美元的季度現金股息，派發日期為 2025 年 6 月 30 日。這將是我們連續第47個季度派發股息，彰顯了我們致力於向股東返還資本並維持穩定可靠的股息政策的承諾。現在我將把發言權交還給凱利，請他作最後發言。

Thanks, Ryan. Evolution continues to perform well operationally, financially, and strategically. Our third-quarter results underscore the strength of our diversified long-life asset base and our ability to meet all capital commitments, debt repayment, and return capital to shareholders. This reflects the benefits of a balanced portfolio that can both flourish in favorable pricing environments and withstand cyclical lows.

謝謝，瑞安。Evolution 在營運、財務和策略方面持續表現良好。我們的第三季業績凸顯了我們多元化長期資產基礎的實力以及我們履行所有資本承諾、償還債務和向股東返還資本的能力。這體現了平衡投資組合的優勢，既能在有利的定價環境中蓬勃發展，又能抵禦週期性低谷。

As we look ahead, our priorities remain unchanged: maintain and look to grow our longstanding dividend, preserve financial flexibility, and grow free cash flow. We will continue to deploy capital with discipline, prioritizing acquisitions and focusing development on natural gas weighted areas while deferring oil weighted drilling to optimize value and timing.

展望未來，我們的優先事項保持不變：維持並尋求增加我們的長期股息、保​​持財務靈活性並增加自由現金流。我們將繼續嚴格部署資本，優先收購並專注於開發天然氣重心區域，同時推遲石油重心鑽探，以優化價值和時機。

Backed by a resilient business model and consistent (technical difficulty) is well positioned to navigate commodity cycles and deliver long-term value to our shareholders. With that, I'll turn it over to the operator to begin the Q&A session. Thank you very much.

在有彈性的商業模式和一致的（技術難度）的支持下，我們能夠很好地應對商品週期並為股東帶來長期價值。接下來，我將把麥克風交給操作員，開始問答環節。非常感謝。

(Operator Instructions) Jeff Grampp, Northland Capital Markets.

（操作員指示） Jeff Grampp，Northland Capital Markets。

Morning, guys. Thanks for the time. Kelly, you talked about some encouragement in the M&A market. I'm hoping you could touch a bit on bid ask spreads that you're seeing. As we tend to see oil prices get weaker, I know bid ask spreads can kind of widen and make it challenging to get deals done, but seems like you're still encouraged nonetheless, so curious to get your thoughts there. And then just if you're seeing any divergence in terms of you know oil versus gas weighted acquisitions that are there any trends or themes you can share in that regard, that'd be helpful. Thanks.

早安，大家。謝謝你的時間。凱利，您談到了併購市場的一些鼓勵。我希望您能稍微談談您所看到的買賣價差。由於我們看到油價趨於疲軟，我知道買賣價差可能會擴大，並使交易難以完成，但似乎你仍然受到鼓舞，所以我很想知道你的想法。然後，如果您發現石油與天然氣加權收購方面存在任何分歧，那麼在這方面您可以分享任何趨勢或主題，這將會很有幫助。謝謝。

Sure, Jeff, like the way I kind of look at it, if you go on the oil front, I mean, look, if oil's going to follow the strip, which is sort of what we use in our budgets for say the next 12 to 18 months, I think we can all have a very strong estimate that domestic crude oil production is going to decline, and the returns just aren't enough for enough profitable wells to be drilled at the strip price.

當然，傑夫，就像我看待這個問題的方式一樣，如果你關注石油方面，我的意思是，看看，如果石油價格跟隨礦帶走，也就是我們在未來 12 到 18 個月的預算中使用的價格，我想我們都可以有一個非常強烈的估計，即國內原油產量將會下降，而回報不足以以礦帶價格鑽探足夠多的礦帶價格。

The country's got so many new wells with super high declines nationwide. I mean, unless you have a major demand shock, which I don't think we're going to, these tariffs seem to be more of a negotiating tool than trade killers. You're going to have to have -- crude production will go down, and then you're going to have to have it go back up. And the only way to do that is via the price mechanism, so prices will go higher.

全國新井數量眾多，產量遞減率極高。我的意思是，除非有重大的需求衝擊（但我認為不會出現這種情況），否則這些關稅似乎更像是一種談判工具，而不是貿易殺手。你必須讓原油產量下降，然後讓它回升。而實現這一目標的唯一方法就是透過價格機制，因此價格將會上漲。

So if we're out there negotiating on the strip, I -- on long life, low decline stuff, I really like where we are on that. And again, if it only like Tex-Mex, right, it's only declined 7% and you buy it on today's strip and if you're expecting, in a couple of years or less prices to move back up, and it's a heck of a place to want to go acquire. And so we are seeing stuff out there.

因此，如果我們在那裡就該地帶進行談判，我 - 在長壽命，低衰減方面，我真的很喜歡我們現在的狀況。再說一次，如果它只是像 Tex-Mex 那樣，對吧，它只下跌了 7%，而你在今天的市場上購買它，如果你預計在幾年或更短的時間內價格會回升，那麼這是一個值得去收購的地方。所以我們在那裡看到了一些東西。

We're seeing some of this is led by funds coming to the end of their life and needing to monetize, so you're always going to have that sort of activity and just natural stuff. You've seen some acquisitions, guys need to get rid of their non-core stuff, which is great, right where we want to be, so you're seeing that.

我們看到其中一些是由於基金壽命即將結束並需要貨幣化而導致的，所以你總是會有這種活動和自然的事情。你已經看到了一些收購，人們需要擺脫非核心的東西，這很好，這正是我們想要的，所以你看到了這一點。

And on the natural gas side, I mean it's the opposite, right? You have a really nice favorable strip going forward, so guys are willing to get paid on a discount for that because they know they're getting a decent price right now. So if we can lock in a reasonable discount to that on low decline stuff for a couple of years of hedging or so, then yeah, I mean that fits right in our wheelhouse. So I don't know if that exactly answers your question, but that's sort of how we're looking at the world in M&A right now. And we're seeing lots of opportunities across both sides.

而在天然氣方面，情況正好相反，對嗎？你有一個非常好的有利的前景，所以人們願意以折扣價獲得報酬，因為他們知道他們現在得到的價格還不錯。因此，如果我們可以在幾年左右的對沖期內鎖定低下降率產品的合理折扣，那麼，是的，我的意思是這正好符合我們的要求。所以我不知道這是否準確地回答了你的問題，但這就是我們現在看待併購世界的方式。我們看到雙方都有很多機會。

Yeah. I would just, Jeff, I would just add, one of the areas we're seeing activity is SCOOP/STACK, which is nice because we obviously have a position there. But if you're looking at areas that have a nice mix of oil and gas, I think you're still seeing folks go to market, because there's optionality throughout there. And so we're encouraged by seeing some activity at least in SCOOP/STACK for sure.

是的。傑夫，我只是想補充一下，我們看到活動的領域之一是 SCOOP/STACK，這很好，因為我們顯然在那裡佔有一席之地。但如果你關注的是石油和天然氣資源混合良好的地區，我認為你仍然會看到人們進入市場，因為那裡有選擇性。因此，我們很高興看到至少在 SCOOP/STACK 中出現了一些活動。

Got it. That's super helpful. Thank you, guys. And at Chaveroo, I'm curious, it seems like wells came in cheaper and I know it's still early but performing better, so good news on both fronts. But can we quantify at all how much under budget those wells were?

知道了。這非常有幫助。謝謝你們。在 Chaveroo，我很好奇，似乎油井的成本更低了，而且我知道現在還為時過早，但表現更好，所以對兩方面來說都是好消息。但我們能否量化這些油井的預算不足多少？

And then on the production side, it's still super early, but is there anything different about either the location of these wells or the completion technique that could explain the early time positive results? Or is this just kind of general bell-shaped curve where you're going to have some walls above type curve, some walls below that sort of thing.

從生產方面來看，現在還為時過早，但是這些油井的位置或完井技術有什麼不同嗎，可以解釋早期的正面成果？或者這只是一種一般的鐘形曲線，在這種曲線上方有一些牆，在曲線下方有一些牆。

Okay, yeah, hey Jeff, it's Mark. Thanks for calling in, by the way. And see, your first question was about how can we quantify the -- how much below -- we think we're a little bit below 5% below AFE, which is really good out here. And on the ant quantitating -- boy, if I can say the word, quantifying the performance of the wells, we're about 7 miles away from the 500 wells, which is the first three wells we drilled.

好的，是的，嘿傑夫，我是馬克。順便說一句，感謝您的來電。你看，你的第一個問題是我們如何量化——低於多少——我們認為我們比 AFE 低 5% 一點，這真的很好。在螞蟻量化方面——如果我可以這麼說的話，量化油井的性能，我們距離第 500 口油井還有大約 7 英里，這是我們鑽探的前三口油井。

[Jennifer] Wells are off to the east and it's a different part of the reservoir. We didn't encounter as much fracturing, so part of the issue with being able to drill it within cost was that we didn't have a lot of drilling problems when caused by fracturing.

[珍妮佛] 井位於東邊，是水庫的另一部分。我們沒有遇到太多的壓裂問題，因此能夠在成本範圍內進行鑽探的部分原因是，我們在壓裂時沒有遇到很多鑽井問題。

But honestly, it's also -- if you want to know the truth, if you really look around, it's kind of like a bell shape, you're right, it's a district distribution of performance for these wells, and it's going to vary, throughout the field as you move around. And so you're really just trying to like do the average of the wells. But these wells have come on really good. They're probably about 50% high right now to what we expected them to be producing on average.

但老實說，如果你想知道真相，如果你環顧四周，它有點像鐘形，你是對的，它是這些油井性能的區域分佈，並且它會隨著你移動而在整個油田中變化。所以你其實只是想計算這些井的平均值。但這些油井的產量確實很好。目前，他們的產量可能比我們預期的平均產量高出 50% 左右。

Super helpful, Mark, thanks. So to be clear, there was nothing different that you guys did it on the second batch of wells in terms of completion practices or lateral lengths or anything that would explicitly explain at least the early time results we're seeing.

非常有幫助，馬克，謝謝。因此需要明確的是，就完井實踐或水平長度或任何可以明確解釋我們所看到的早期結果的內容而言，你們對第二批井所做的並沒有什麼不同。

Not what we think. I mean, we did have some ladder lengths on the initial round of wells that were short and like the 504. One of the last we drilled was shortened quite a bit. It's about half the normal la length, but it also had a really good fraction which gives a lot of productivity.

與我們想的不一樣。我的意思是，我們在最初幾輪井中確實有一些梯子長度較短，就像 504 一樣。我們最後鑽的一個孔被縮短了不少。它的長度大約是正常長度的一半，但它也具有非常好的比例，從而提高了生產力。

I mean, really, honestly, the completion technique and the drilling technique was very, very similar to the last time. We did do some things that would optimize cost and help us out there and especially in the case where we lost a lot of fluid, we were able to reduce our drilling fluid cost by a lot. But honestly, it's really just -- it was the same practice, different reservoir rock that we hit.

我的意思是，說實話，完井技術和鑽井技術與上次非常非常相似。我們確實做了一些可以優化成本並幫助我們的事情，特別是在我們損失大量流體的情況下，我們能夠大幅降低鑽井液成本。但老實說，這真的只是——我們遇到了相同的做法和不同的儲層岩石。

Thank you.

謝謝。

Chris Degner, Water Tower Research.

克里斯‧德格納（Chris Degner），水塔研究公司。

Hi, yes, thank you. I'm here for Jeff Robertson today and just wanted to -- just a quick question on the Delhi EOR project and it looks like there's been a shift from CO2 floods into more of like a water flood type of a development. I'm just curious, do you have any views on what the impact might be on LOE, over the longer-term development of the field? Thank you.

你好，是的，謝謝。今天我來這裡是為了傑夫羅伯森 (Jeff Robertson)，只是想問一個關於德里 EOR 項目的簡單問題，看起來已經從二氧化碳驅油轉變為更像水驅類型的開發。我只是好奇，您對這可能會對 LOE 以及該領域的長期發展產生什麼影響有何看法？謝謝。

Yeah, Chris, this is Kelly. Thank you very much. Look, and I'm glad you brought it up because I'm not sure everyone is sort of paying attention to this. When Exxon decided to stop adding purchase CO2 to the field, honestly, we're kind of like hallelujah. We've been asking Denbury to do this for the last couple of years now.

是的，克里斯，這是凱利。非常感謝。你看，我很高興你提出這個問題，因為我不確定是否每個人都關注這個問題。當埃克森美孚決定停止在油田中添加購買二氧化碳時，說實話，我們有點像哈利路亞。過去幾年來，我們一直要求丹伯里這樣做。

Look, I'm sure Exxon didn't really listen to us at all and came to this decision on their own accord, but this is what we really wanted for the last couple of years. Maximize efficiency of the recycled CO2. Replace the voyage with increased water instead of purchase CO2. It's on the order of $400,000 to $500,000 per month of cost savings to us, and we don't expect much if any difference in performance.

聽著，我確信埃克森美孚根本沒有聽取我們的意見，而是自行做出了這個決定，但這正是我們過去幾年真正想要的。最大限度地提高二氧化碳的回收效率。用增加的水代替購買二氧化碳來代替航行。這對我們來說每月可以節省約 40 萬到 50 萬美元的成本，而且我們預計性能方面不會有太大的差異。

In the past, when you saw CO2 purchases go down, it wasn't replaced by more water injection. It was just a loss in pressure. Now they're going to use additional water injections to replace that pressure at a way cheaper cost. It's just a much more economical way to run the field, and we think this is very exciting.

過去，當你看到二氧化碳購買量下降時，並沒有透過注入更多的水來替代。這只是壓力的損失。現在他們將採用額外的注水方式，以更低的成本取代這種壓力。這只是一種更經濟的運作方式，我們認為這非常令人興奮。

That's great to hear. Thank you.

聽到這個消息真是太好了。謝謝。

Just get on the LOE side, when we look at -- earlier, one thing you could do is obviously look back earlier last year when the line was down right on the cost side, and we were probably in the $25 per barrel plus or minus, category there when the line was down. So going forward, obviously production is because when you're looking at a per barrel metric, but as Kelly said, you're looking at about a $5 million per month or on a go forward basis called in the mid-20s on a dollar per BOE for LOE cost.

就 LOE 方面而言，當我們看的時候——早些時候，你可以做的一件事顯然是回顧去年早些時候，當時成本線正好下降，當成本線下降時，我們可能處於每桶 25 美元左右的上下波動範圍。因此，展望未來，顯然產量是因為當你查看每桶指標時，但正如凱利所說，你查看的是每月約 500 萬美元，或者按前進的基礎計算，即每桶油當量 20 多美元的 LOE 成本。

Poe Fratt, Alliance Global Partners.

Poe Fratt，Alliance Global Partners。

Hey, good morning. I just wanted to if you could break out, the net increase in production. It looks like you're sort of citing 850 BOE a day between Tex-Mex and Chaveroo. I thought I heard you say Tex-Mex was running about 440. So does that imply that currently, Chaveroo is running about 440 or 410 a day?

嘿，早安。我只是想知道你是否能夠突破產量淨成長的問題。看起來您引用的是 Tex-Mex 和 Chaveroo 之間每天 850 BOE 的量。我以為我聽到你說 Tex-Mex 的銷售量大約是 440。那麼這是否意味著 Chaveroo 目前每天的運行量約為 440 或 410 輛？

So yeah, I mean, the way I would look at it, right, so I think Mark said that we were significantly above our type curve, but look, I'll just tell you, all four wells, the oil rate is still climbing like. I think Mark said we're sort of at least 50% above where we have these things projected come on. So again, super exciting, but we sort of put a low-ball safe number out there at 850, so want to cover our bases there.

是的，我的意思是，我會這樣看待它，對吧，所以我認為馬克說我們明顯高於我們的類型曲線，但是你看，我只想告訴你，所有四口井的石油產量仍在攀升。我認為馬克說我們的目標至少比預期高出 50%。所以，再次強調，這非常令人興奮，但我們把 850 定為一個較低的安全數字，因此希望以此為基礎進行覆蓋。

Just to clarify though, that does include about 440 from Tex-Mex?

只是為了澄清一下，這確實包括來自 Tex-Mex 的約 440 人嗎？

Yes, it does. That's actually the latest number I have for Tex-Mex is about 440 BOE net, so I think it may be slightly higher than that, but that's pretty close.And the Chaveroo number that would be included at 850 is only for the new wells. It does not include the first well.

是的。事實上，我掌握的 Tex-Mex 的最新數字大約是 440 BOE 淨值，所以我認為它可能略高一些，但已經非常接近了。而 Chaveroo 所包含的 850 的數字僅適用於新井。它不包括第一口井。

And like I said, that's -- we don't know where it's going to settle out. The wells are still climbing. So we're again, we want to put some sort of safe out there. I can tell you right now that the two added together is actually higher than 850.

正如我所說的，我們不知道它會在哪裡定居。油井仍在攀升。所以我們再次強調，我們想在那裡設置某種安全措施。我現在可以告訴你，兩者加起來其實高於850。

That's helpful. And then you spent $4.4 million in the quarter as far as cap backs. Can you give me a sense on how much you're going to spend in the fourth quarter? And then, is it too early to expect a sort of ballpark CapEx number for fiscal '26?

這很有幫助。然後，您在本季度花費了 440 萬美元作為回報。您能告訴我您第四季的支出預計是多少嗎？那麼，現在預測 26 財年的資本支出大概數字是否為時過早？

On the fiscal '26, yeah, it is. I mean, I think you probably saw in our press release and prepared marks we're working right now with our partner PEDEVCO to figure out when we would start the backs. And obviously, that would be a big driver of CapEx for the next fiscal year.

就 26 財年而言，確實如此。我的意思是，我想你可能在我們的新聞稿和準備好的標記中看到我們現在正在與我們的合作夥伴 PEDEVCO 合作，以確定何時開始後衛。顯然，這將成為下一財年資本支出的一大推手。

That plus you know any AFEs we receive at SCOOP/STACK, which you know we don't really have a feel for until we get them. I will say we are doing outreach for the operators right now in Oklahoma just as we go for a year in reserve report, so maybe we'll have a better feel for their budgets. So I think it's a little early for us to put out anything next fiscal year. We'll likely do that at the at our fourth quarter call, which is generally when we've done it.

除此之外，您還知道我們在 SCOOP/STACK 收到的任何 AFE，您知道我們在收到它們之前真的不會感覺到。我想說的是，我們現在正在俄克拉荷馬州為營運商進行外展工作，就像我們進行一年的儲備報告一樣，所以也許我們會更好地了解他們的預算。所以我認為我們在下個財政年度發布任何消息還為時過早。我們可能會在第四季度電話會議上這樣做，通常我們都會在這個時間這樣做。

On the remainder of the year, so you know we do have some cap backs in the fourth quarter we expect on to get on the completion side. But we still think the overall budget that we put out for the full year is still valid. So I think that was what 12% to 14.5%. So we still think we're going to have a little bit remaining for the Chaveroo wells on the completion side, possibly a little bit in SCOOP/STACK. But outside of that, we certainly don't expect that much additional capital in the fourth quarter.

在今年剩餘的時間裡，您知道我們在第四季度確實有一些上限，我們預計將在完成方面獲得一些回報。但我們仍然認為我們制定的全年總體預算仍然有效。所以我認為這個比例是 12% 到 14.5%。因此，我們仍然認為，在完井方面，Chaveroo 井還會剩下一點，在 SCOOP/STACK 方面可能還會剩下一點。但除此之外，我們當然不預期第四季會有那麼多的額外資本。

Okay, and then can you just help me with the rationale for adding a new bank? Prism potentially is going to be added to your capital availability and can you just talk about that as far as opposed to even expanding the Midlands a little bit larger.

好的，那麼您能幫我解釋一下添加新銀行的理由嗎？Prism 可能會增加您的資本可用性，您能否談談這一點，而不是將中部地區擴大一點。

Yeah. So you know I said this in the past, so obviously I know you're a little bit new to the name. So I think our credit facility terms are very favorable as you look at the broader market. And so what we're able to do is effectively keep those same terms, which I think again I think is favorable to us, on both draw and spread and hedging covenants and keep them the same but add another bank.

是的。你知道我以前說過這個，所以很明顯我知道你對這個名字有點陌生。因此，我認為從更廣泛的市場來看，我們的信貸安排條款非常有利。因此，我們能夠做的就是有效地保留相同的條款，我認為這對我們有利，無論是在提款和利差方面，還是對沖契約方面，都保持它們相同，但增加另一家銀行。

MidFirst at kind of going from 50 to 55, that's kind of one of their higher hold levels for the space. So in order to get the additional capacity, which we thought was important, to give us flexibility, we had to bring in another bank and it was a bank that's familiar with MidFirst and a smaller bank that was comfortable with us from a credit side and the and the actual facility terms as well.

MidFirst 的持股比例從 50 上升到 55，這是該領域較高的持股比例之一。因此，為了獲得我們認為重要的額外容量，為了給我們提供靈活性，我們必須引入另一家銀行，這是一家熟悉 MidFirst 的銀行，也是一家規模較小的銀行，從信貸方面和實際融資條款來看，他們對我們感到滿意。

So I think that that was kind of the reason and obviously MidFirst has been a great partner to work with us here. So I mean if we were to obviously go larger with a larger, more transformative deal, we'd have to bring in some other banks. We've also -- we've talked about that as well, but we think this kind of intermediate step in order to push out the facility, keep the terms the same, and increase the size made a lot of sense.

所以我認為這就是原因，顯然 MidFirst 是與我們合作的優秀夥伴。所以我的意思是，如果我們要達成一項更大、更具變革性的協議，我們就必須引進一些其他銀行。我們也討論過這個問題，但我們認為，為了推出設施、保持條款不變並增加規模，這種中間步驟非常有意義。

This concludes our question-and-answer session. I would like to turn the conference back over to Kelly Lloyd for any closing remark.

我們的問答環節到此結束。我想將會議交還給凱利·勞埃德 (Kelly Lloyd) 來做結束語。

Yeah, thank you. Like I said, we just want to thank everyone for joining us on our call. And like I said, we, we're really excited about, the results we began to see from natural gas prices moving up. I think our natural gas revenue is up 34% in the quarter. And we're excited about the opportunities in front of us and the portfolio we have. So thanks again for joining. Really appreciate it.

是的，謝謝。正如我所說的，我們只想感謝大家參加我們的電話會議。正如我所說的，我們對天然氣價格上漲所帶來的結果感到非常興奮。我認為本季我們的天然氣收入成長了 34%。我們對眼前的機會和擁有的投資組合感到非常興奮。再次感謝您的加入。真的很感激。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。