One-glance verdict
Undervalued
$14.38 our estimate vs market $3.48
Wall Street consensus: $5.00 (-65.2% lower than our fair-value estimate)
76% below our estimate, below the bear case
Fundamentals snapshot
Evolution Petroleum Corporation
EPM · ASE · Energy · Oil & Gas E&P
Current price
$3.48
52-week range
$3.19 - $4.99
Market cap
$139.80M
Balance sheet
Distressed
0.90x Concerning
Net debt $50.81M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 0.6% last year.
- Reward Free cash flow was positive in 2/10 years.
- Reward Dividend yield is 13.8% with 14-year payout history.
- Risk Return on equity was -3.7% last year — the company lost money on shareholders' equity.
What this company does
Evolution Petroleum Corporation
Evolution Petroleum Corporation is an energy company that owns and operates oil and gas properties, mostly in the U.S. They make money by producing and selling oil and natural gas, which are the main sources of their revenue. This business matters because it contributes to the country's energy supply and influences the prices we all pay at the pump.
How the company got here
Evolution Petroleum Corporation started in 2003 as Natural Gas Systems and later changed its name to Evolution Petroleum in 2007. Initially, the company was involved in exploration and development, but it became closely associated with the Delhi field in Louisiana. This project, a carbon-dioxide enhanced oil recovery (EOR) project, became a signature asset and shaped the company's reputation as a patient owner of long-life production. In recent years, from 2021 to 2023, Evolution Petroleum expanded its portfolio beyond the Delhi field to include assets in the Williston Basin, Jonah Field, Chaveroo Field, and the Barnett Shale. This diversification reduced its reliance on a single asset and broadened its mix of oil and natural gas products.
What it actually does
Evolution Petroleum is an energy company that focuses on owning and investing in oil and natural gas properties located within the United States. Instead of actively drilling and managing large-scale operations, the company primarily holds non-operating interests in mature, long-lasting oil and gas fields. Its business model is centered on generating consistent cash flow from these established reserves, rather than pursuing high-risk exploration or rapid production growth. The company's main products are crude oil, natural gas, and natural gas liquids (NGLs), which are sold to various customers in the energy market.
Oil & Gas Properties
Evolution Petroleum's core business involves owning stakes in various onshore oil and natural gas properties across the United States. These are not actively operated by Evolution but are rather mature fields with long production histories. Examples include interests in the Delhi Field in Louisiana, known for its carbon dioxide enhanced oil recovery (EOR) project, and secondary recovery fields in Wyoming. The company also has interests in shale gas reservoirs like the Barnett Shale in Texas and the Williston Basin in North Dakota. These properties generate revenue through the sale of crude oil, natural gas, and natural gas liquids (NGLs), which are essential commodities for fuel, heating, and industrial uses.
What management is betting on now
Evolution Petroleum's strategy is focused on disciplined capital allocation, which means carefully choosing where to invest its money. The company aims to acquire producing oil and gas reserves at sensible prices, focusing on assets that have long lives and low decline rates (meaning they produce steadily for a long time). They also selectively participate in development projects led by other, more experienced operators. A key part of their strategy is to manage risks by using financial tools like hedging (which helps protect against price swings) and maintaining a diversified asset base. Ultimately, management is betting on this approach to generate durable cash flow, support a regular dividend payment to shareholders, and achieve selective growth through accretive acquisitions (buying assets that add value and income).
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
Revenue
$24.21M
Net income
$4.61M
Diluted EPS
0.13
Operating cash flow
$6.80M
Free cash flow
—
Fetching…
Sources
Revenue
$20.17M
Net income
$-8.93M
Diluted EPS
-0.26
Operating cash flow
$3.49M
Free cash flow
—
Fetching…
Sources
Revenue
$20.68M
Net income
$1.06M
Diluted EPS
0.03
Operating cash flow
$5.42M
Free cash flow
—
Fetching…
Sources
Revenue
$21.29M
Net income
$824.00K
Diluted EPS
0.02
Operating cash flow
$7.80M
Free cash flow
—
Fetching…
Sources
Revenue
$21.11M
Net income
$3.41M
Diluted EPS
0.10
Operating cash flow
$10.46M
Free cash flow
—
Fetching…
Sources
Revenue
$22.56M
Net income
$-2.18M
Diluted EPS
-0.07
Operating cash flow
$7.26M
Free cash flow
—
Fetching…
Sources
Revenue
$20.27M
Net income
$-1.82M
Diluted EPS
-0.06
Operating cash flow
$7.72M
Free cash flow
—
Fetching…
Sources
Revenue
$21.90M
Net income
$2.06M
Diluted EPS
0.06
Operating cash flow
$7.61M
Free cash flow
—
Fetching…
Sources
Is it cheap or expensive?
Fair value $14.38 vs current price $3.48
Wall Street consensus is the average analyst price target: $5.00 (-65.2% lower than our fair-value estimate).
Our most-likely fair value is $14.38 a share — about 313.1% above today's price of $3.48, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $50.8M. Interest coverage 0.9x.
Net debt
$50.81M
Interest coverage
0.90x
Evolution Petroleum Corporation is healthier than 0 of 1 peers on balance-sheet leverage.
Distressed
Worse cushion
Baseline
Better cushion
EPM
BASELINE
Evolution Petroleum Corporation
Total debt $56.95M Interest coverage 0.90x This is the baseline the peer rows are being compared against.
What you should know
The case for and against EPM
3 Rewards
1 Risk
Rewards
-
Revenue grew 0.6% last year.
-
Free cash flow was positive in 2/10 years.
-
Dividend yield is 13.8% with 14-year payout history.
Risks
-
Return on equity was -3.7% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
34.80x
P/B
2.03x
P/S
1.62x
EV/EBITDA
8.04x
PEG ratio
0.69x
Profitability
How much profit each dollar creates
Gross margin
41.7%
Operating margin
25.1%
Net margin
-2.8%
ROE
-3.7%
ROA
0.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.94x
Current ratio
0.92x
Quick ratio
0.77x
Total debt
$56.95M
Total cash
$6.14M
Growth
How the business has been compounding
Revenue TTM
$86.34M
Revenue 5Y CAGR
-5.6%
EPS TTM
-0.08
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$23.52M
Free CF TTM
$-6.75M
FCF margin
-7.8%
Dividend
Shareholder payout
Yield
13.8%
Payout ratio
600.0%
Last ex-div date
2026-09-21