Tex-Mex Acquisition and Chaveroo Wells Performance
Subsequent to the quarter end, Evolution Petroleum closed the Tex-Mex acquisition and brought online four new wells in the Chaveroo development block, contributing more than 850 net barrels of oil equivalent per day. This is expected to benefit fiscal fourth quarter production and cash flow.
Strong Natural Gas Revenue Growth
Natural gas revenue rose 33% year-over-year to $7.8 million, and NGL revenue increased by 14% to $3 million, partially offsetting a 19% decline in oil revenue. This demonstrates the resilience of the company's diversified portfolio.
Dividend Declaration
The Board declared a cash dividend of $0.12 per share, marking the 47th consecutive quarter of issuing a dividend and the 12th consecutive quarter at this rate, reflecting the company's commitment to returning capital to shareholders.
Increased Liquidity and Credit Facility Expansion
Evolution Petroleum has total liquidity of $20.1 million, with borrowings of $35.5 million. The company also received approval to increase its credit facility commitments to $65 million, providing greater financial flexibility.