Evolution Petroleum Co.

Evolution Petroleum has acquired mineral and leasehold interests in the Midland Basin of the Permian Basin for $16 million, effective economically August 1, 2026. The transaction includes about 3,420 acres across multiple Texas counties, royalty interests on roughly 832 producing wells and numerous additional development locations. Current production is estimated at about 210 barrels of oil equivalent per day; the company expects asset-level cash flow of roughly $3.9 million over the next 12 months and projects production to more than double by 2029 with planned 125 completions per year. The acquisition was financed from net proceeds of an equity offering, cash on hand and the revolver, and increases pro forma liquidity to about $19 million. » Plus sur de.investing.com

Evolution Petroleum announced the placement of 3.7 million common shares at $3.25 each (around a 15% discount) to raise roughly $12 million gross. The proceeds are intended to partially finance an approximately $16 million acquisition of mineral and lease rights in the Midland Basin. Investors worried about dilution, aggravated by a 30-day overallotment option for up to 555,000 additional shares, after which the stock fell sharply in premarket trading and was trading near its 52-week low. » Plus sur de.investing.com

Evolution Petroleum announced a public capital increase to partly finance a previously announced acquisition of mineral and lease rights in the Midland Basin (about $16 million). The stock fell 8.9% in after-hours trading as the number and offering price of the new shares remain undecided and a 30-day option for the syndicate banks creates dilution risk. Management describes the acquisition (3,420 net lease acres, royalties for 832 producing wells) as immediately positive for cash flow per share; any surplus proceeds are to be used to pay down the revolving credit facility, which will continue to weigh on leverage. » Plus sur de.investing.com