Q3 2025 Evolution Petroleum Corp Earnings Call

Unknown Executive: Good morning, everyone, and welcome to the Evolution. Petroleum Fiscal 3rd Quarter 2025 Earnings Conference Call. All participants are in line.

Good morning, everyone and welcome to the evolution.

Liam fiscal third quarter 2025 earnings conference call all participants are in listen only mode.

Brandi Hudson: Also note, today's event I'd like to turn the call over to Brandi Hudson. University of California at Buffalo. Thank you.

Please also note today's event is being recorded.

Speaker Change: At this time I'd like to turn the call she'd Brandy Hudson the Companys Investor Relations manager Ma'am. Please go ahead.

Speaker Change: Thank you welcome to evolution Petroleum's fiscal third quarter 2025 earnings call I'm joined today by Kelly, President and Chief Executive Officer, Mark <unk>, Chief Operating Officer, and Ryan Stash, Senior Vice President Chief Financial Officer and Treasurer.

Brandi Hudson: 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.

Brandi Hudson: 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 investor section of our website.

Speaker Change: 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.

Brandi Hudson: 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. 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.

May 14th 2025, and any times instead of 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.

Speaker Change: Actual results may differ materially from those expected we undertake no obligation to update any forward looking statement.

Brandi Hudson: We undertake no obligation to update any forward-looking statement. During today's call, we may discuss certain non-GAAP 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 release.

Speaker Change: On today's call, we may discuss certain non-GAAP 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 release.

Kelly Lloyd: Kelly will begin today's call with opening comments and review of the company's ongoing plans and strategy.

Speaker Change: 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 after our prepared remarks, the management team will be available to answer any questions.

Kelly Lloyd: Mark will provide an update on operations during the quarter, and Ryan will provide a brief overview of our fiscal third quarter financial highlights. After our prepared remarks, the management team will be available to answer any questions.

Brandi Hudson: 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.

Speaker Change: 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.

Kelly Lloyd: With that, I will turn the call over to Kelly. 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. 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.

Speaker Change: Thank you Brandy and good morning, everybody our fiscal third quarter results demonstrated evolutions commitment to disciplined capital allocation and strategic execution.

Speaker Change: We stay grounded in our core strengths allocating capital prudently to high quality low decline assets, maintaining our long standing dividend and generating positive cash flow, our diversified portfolio robust hedging strategy and measured approach to development is enabling us to weather market volatility while.

Speaker Change: Continuing to deliver long term value.

Kelly Lloyd: Subsequent to quarter end, we closed the Tex-Mex acquisition and brought online four new wells in our second Chavarroo 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 prices. We also expect to see production ads 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.

Speaker Change: Subsequent to quarter end, we closed the Tex Mex acquisition and brought online four new wells in our second Jabiru development block.

Speaker Change: 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.

Speaker Change: 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.

Speaker Change: And 40% natural gas the $9 million transaction was completed at a very attractive valuation of approximately 3.4 times forward adjusted EBITDA based on current strip pricing underscoring its strong near and long term accretion even amid recent.

Kelly Lloyd: The $9 million transaction was completed at a very attractive valuation of approximately 3.4 times forward adjusted EBITDA based on current strip pricing, underscoring its strong near and long-term accretion even amid recent oil price volatility. 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. We are now working closely with the operator to evaluate low-cost reactivation opportunities that could provide additional long-term upside.

Speaker Change: Oil price volatility.

Speaker Change: Folio consists of producing wells across new Mexico, Texas, and Louisiana, and aligns with our long term strategy to own cash generative low risk asset.

Speaker Change: Insistent 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.

Speaker Change: We are now working closely with the operator to evaluate low cost reactivation opportunities that could provide additional long term upside.

Kelly Lloyd: 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. In the last six years, we've invested $136 million to grow production by more than three and a half times, all while returning capital to shareholders with our quarterly dividends. 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.

Speaker Change: This marks our seventh highly accretive acquisition in six years, and we continue to see encouraging M&A market, even more so now amid oil price volatility in the last six years, we've invested $136 million to grow production by more than three and a half times.

Speaker Change: All while returning capital to shareholders with our quarterly dividend.

Speaker Change: 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.

Kelly Lloyd: 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. 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.

Speaker Change: 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.

Speaker Change: 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.

Speaker Change: Of course, the value and resiliency of our diversified portfolio.

Kelly Lloyd: 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 dividends. 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 planned maintenance at Delhi and weather-related downtime in Barnett.

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

Speaker Change: Operationally, our operators executed well despite some temporary disruptions during the quarter.

Speaker Change: Total production declined seven 5% year over year to 6006 hundred 67 barrels of oil equivalent per day, primarily due to planned maintenance at Delhi and weather related downtime and Barnett.

Kelly Lloyd: 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 Chavaroo development block, which were brought online shortly after the quarter ended. 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.

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

Speaker Change: While it is still too early to fully assess how the wells will perform we're encouraged by the efficient execution.

Speaker Change: Drilling and completing the four wells for less than budget.

Speaker Change: And the highly positive initial results.

Kelly Lloyd: Mark will have more updates to share across our portfolio shortly. In terms of capital allocation, dividend sustainability remains a top priority for us. On May 12th, 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. 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.

Speaker Change: Mark will have more updates to share across our portfolio shortly.

Speaker Change: In terms of capital allocation dividend sustainability remains a top priority for us on May 12, our board declared a cash dividend of 12 cents per share of common stock.

Speaker Change: Working our 47th consecutive quarter of issuing a dividend and our 12th consecutive quarter at 12 cents per share.

Speaker Change: It's important to underscore that this dividend was not declared as a one time event.

Speaker Change: Despite the ongoing volatility in commodity prices the boards decision reflects our confidence in evolutions ability to sustained dividends at this level over the long term.

Speaker Change: 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.

Kelly Lloyd: To date, Evolution has returned approximately $131 million, or $3.93 per share, to shareholders in CommisDoc dividends. 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 Chabot-Uru wells begin to contribute to our quarterly results. 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.

Speaker Change: To date evolution has returned approximately $131 million or $3 93 per share to shareholders and common stock dividends.

Speaker Change: Looking ahead, our strategy remains focused on preserving financial flexibility sustaining our dividend and pursuing opportunistic growth.

Speaker Change: 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 textbooks acquisition and our four new jabiru wells begin to contribute to our quarterly results.

Speaker Change: 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.

Kelly Lloyd: In light of the recent market volatility, we, in coordination with our operating partner at Chevroux, have made the decision to delay the start of our third development block to later into our fiscal year 26. 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. In the interim, we are 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.

Speaker Change: In light of the recent market volatility we in coordination with our operating partner Chevron, who have made the decision to delay the start of our third development block two later into our fiscal year 'twenty six.

Speaker Change: 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.

Speaker Change: Maintaining and measured development approach in a low price environment.

Speaker Change: We are effectively preserving long term resource value for our shareholders in the interim we're actively pursuing opportunities in what we view as a highly attractive market to acquire oil weighted low declined producing assets or natural gas properties with favorable hedging potential all said.

Kelly Lloyd: 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.

Speaker Change: Our decision, making will remain grounded in disciplined capital allocation financial flexibility and a commitment to delivering long term value for our shareholders with that I'll turn the call over to our CFO Mark bunch to review our operations in more detail. Thanks, Kelly and good morning, everyone.

Mark Bunch: With that, I'll turn the call over to our COO, Mark Bunch, to review our operations in more detail. Mark? Thanks, Kelly, and good morning, everyone.

Mark Bunch: I will focus my remarks on key operational highlights from the quarter and encourage listeners to review our earnings press release and followings for details across our assets. At ScoopStack, 13 gross wells have come online fiscal year to date. We have another 5 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.

Mark Bunch: 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 that total.

Mark Bunch: 35, gross wells or 0.6 net wells have been brought online.

Mark Bunch: At Shavaroo, 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.

At <unk> as Kelly mentioned, we successfully completed and brought online four new gross wells in the second develop a 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.

Mark Bunch: Seeded our expectations, we will continue to monitor these wells closely and we'll provide an update on performance in the coming quarter.

Mark Bunch: We will continue to monitor these wells closely and will provide an update on performance in the coming quarter.

Mark Bunch: 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 approximately 80 million cubic feet per day of CO2 to injecting additional water instead. 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.

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

Mark Bunch: The water instead.

Mark Bunch: Exxon will continue to inject approximately 300 million cubic feet per day of recycled C. O T. We believe this will be the most economical way to run the appeal and will significantly reduce operating costs, while maximizing cash flow.

Mark Bunch: 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 conditions.

Mark Bunch: In the Williston Basin, we experienced good run time for the quarter production was up quarter to quarter due to the deferred oil sales and third party gathering system issues experienced in the prior quarter.

Mark Bunch: In the Williston Basin, I'm Jeffrey Grampp. experienced in the prior quarter. The Williston deal continues to generate solid returns. 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 cascadal flow for the quarter. Barnett Shell 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.

Mark Bunch: The Williston fill continues to generate solid returns at.

Mark Bunch: At Hamilton Dome production remained steady throughout the quarter with no notable operational activity or downtime. The field continues to perform reliably delivered consistent oil volumes in line with expectations.

Mark Bunch: <unk> also remained steady during the quarter with a temporary different volumes during February strong winter natural gas pricing contributed positively to its overall cash flow for the quarter.

Mark Bunch: Barnett shale delivered consistent cash flow generation in the third quarter. Despite some brief downtime in January due to winter storms production remains steady overall with improved pricing for natural gas and NGL, serving as a tailwind.

Mark Bunch: Disfavorable pricing dynamics helped offset broader commodity price and underscore Barnett's continued role as a valuable contributor to our diversified portfolio.

Mark Bunch: These favorable pricing dynamics helped offset broader commodity price weakness and underscore barnett's continued role as a valuable contributor to our diversified portfolio.

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

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

Ryan Stash: Thank you Mark and good morning.

Speaker Change: As Brandon 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 and 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.

Speaker Change: Volumes, partially offset by a 7% increase in average realized commodity prices driven by stronger natural gas and NGL prices are down.

Speaker Change: Kris and production volumes was largely due to downtime at Barnett and January due to winter storms and one week planned maintenance at Delhi, partially offset by higher production from a full quarter of contribution from scoop stack compared to the prior year period.

Ryan Stash: 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. Adjusted EBITDA was $7.4 million compared to $8.5 million in the year-ago period. The decrease was primarily due to lower revenue 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 will resume last October.

Speaker Change: Net loss for the third quarter was $2 2 million or seven cents per share compared to net income of <unk> 3 million or one cent per share in the year ago period.

Speaker Change: After excluding the impact of unrealized hedging losses adjusted net income for Q3 was zero point $8 million or <unk> <unk> per diluted share compared to $1 million or <unk> <unk> per diluted share for the prior year period adjusted.

Speaker Change: Adjusted EBITDA was $7 4 million compared to $8 5 million in the year ago period.

Speaker Change: The decrease was primarily due to lower revenue as a result of lower production volumes and higher total operating cost due to C. O two purchases at Delhi, which were suspended in February 2024, but will resume last October however, adjusted EBITDA for Q3 was 30% higher than Q2, primarily as a result.

Ryan Stash: However, adjusted EBITDA for Q3 was 30% higher than Q2, primarily as a result of higher commodity prices, especially natural gas and energy. 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. 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 credits.

Speaker Change: <unk> of higher commodity prices, especially natural gas and Ngls.

Speaker Change: 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.

Speaker Change: Salary to preserve long term cashless stability to support our dividend.

Speaker Change: 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.

Ryan Stash: 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 expenditure. 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.

Speaker Change: At March 31, 2025, cash and cash equivalents totaled $5 6 million in borrowings outstanding under our revolving credit facility were $35 $5 million, giving us total liquidity of $20 1 million.

Speaker Change: 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 during the quarter. We also sold a total of approximately zero point too.

Speaker Change: 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 and offering costs.

Ryan Stash: 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.

Speaker Change: In regard to our revolving credit facility. We have received approval from our lender mid first 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 prison bank, which will bring our total commitments to <unk>.

Speaker Change: <unk> 5 million, we currently expect to close on the additional commitments and maturity extension during our fiscal fourth quarter.

Ryan Stash: Yesterday, we declared a quarterly cash dividend of 12 cents per share, payable on June 30 of 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 pulse.

Speaker Change: Yesterday, we declared a quarterly cash dividend of <unk> 12 per share payable on June 30 of 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.

Kelly Lloyd: I'll now hand it back over to Kelly for closing comments. 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 loads.

Kelly: I'll now hand, it back over to Kelly for closing comments.

Kelly: Thanks Ryan.

Kelly: Evolution continues to perform well operationally financially and strategically our third quarter results underscored the strength of our diversified long life asset base and our ability to meet all capital commitments debt repayment and return capital to shareholders.

Kelly: This reflects the benefits of our balanced portfolio that can both flourish in favorable pricing environments and withstand cyclical lows.

Kelly Lloyd: 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. Backed by a resilient business model and consistent execution, in addition to the hard work and diligence of our team and guidance of our board of directors, Evolution's low-cost, non-op business model is well-positioned to navigate commodity cycles and deliver long-term value to our shareholders.

Kelly: As we look ahead, our priorities remain unchanged maintain and look to grow our long standing dividend.

Kelly: 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.

Kelly: By a resilient business model and consistent execution. In addition to the hard work and diligence of our team and guidance of our board of directors evolutions low cost non op business model is well positioned to navigate commodity cycles and deliver long term value to our shareholders with that.

Unknown Executive: With that, I'll turn it over to the operator to begin the Q&A session. Thank you very much. We will now begin the question and answer session. If you ask a question, you may press star, then one on your touchtone. If you are using a speaker phone, please pick up your handset before pressing at any time.

Speaker Change: I'll turn it over to the operator to begin the Q&A session. Thank you very much.

We will now begin the question and answer session.

Speaker Change: Ask a question you May press Star then one on your Touchtone phone.

Speaker Change: You are using a speakerphone please pick up your handset before pressing the keys if at any time for question has been addressed and you would like to withdraw your question. Please press Star and then two.

Unknown Executive: have been addressed and you would like to withdraw.

Jeff Grampp: Our first question comes from Jeff Grampp with Northland Capital Markets. Morning, guys. Thanks for the time. Thank you. Kelly, you talked about some encouragement in the M&A market. I'm hoping you could touch a bit on, you know, bid-ask spreads that you're seeing, you know, 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 it seems like you're still encouraged nonetheless. So, curious to get your thoughts there.

Jeff Gramm: Our first question comes from Jeff Gramm with Northland Capital markets. Please go ahead.

Jeff Gramm: Morning, guys. Thanks for the time.

Speaker Change: Thank you.

Speaker Change: Kelly you talked about some encouragement in the M&A market.

Speaker Change: I'm, hoping you could touch a bit on.

Speaker Change: Bid ask spreads that you're seeing you know as we tend to see oil prices get weaker I know bid ask spreads and kind of widen that make it challenging to get deals done but it.

Speaker Change: It 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.

Jeff Grampp: And then just if you're seeing any divergence in terms of, you know, oil versus gas-weighted acquisitions, are there any trends or themes you can share in that regard? That'd be helpful.

Speaker Change: Oil versus gas weighted acquisitions or are there any trends or themes you can share in that regard that'd be helpful. Thanks.

Kelly Lloyd: Sure, Jeff. Look, the way I kind of look at it, if you go on the oil front, I mean, look, if oil is 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. The country's got so many new wells with super high declines nationwide.

Jeff Gramm: Sure Jeff.

Speaker Change: The way I kind of look at it if you go on the oil front.

Speaker Change: I mean look if it was going to follow the strip, which is sort of what we use in our budgets for say the next.

Speaker Change: 12 to 18 months I would get all have a very strong estimate that domestic crude oil production is going to decline and the returns just aren't enough or enough profitable wells to be drilled at the strip price. The country has got so many new wells with Super high declines nationwide.

Kelly Lloyd: 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 particulars, 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. So if we're out there negotiating on the strip, you know, 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 going to decline 7%, and you buy it on a today's strip, and if you're expecting, you know, in a couple years or less, prices to move back up, it's a heck of a place to want to go acquire.

Speaker Change: Unless you have a major demand shock, which I don't think we're going to do 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 youre 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 so if we're out there negotiating on the strip.

Speaker Change:

Speaker Change: On long life low decline stuff I really like where we are on that and if again, if it only like Tex-mex suddenly declined 7% and you buy it on today's strip and if you're expecting you know in a couple of years or less prices to move back up but it's a heck of a place to want to go acquire and so we are seeing stuff out there we're seeing.

Kelly Lloyd: And so we are seeing stuff out there, 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.

Speaker Change: 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 noncore stuff, which is great right. We're right, where we want to be so you're seeing that and on the natural gas side I mean, it's the opposite right you have.

Mark Bunch: 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 to that, because they know they're getting a decent price right now. So if we can, you know, lock in a reasonable discount to that on low decline stuff for, you know, a couple 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.

Speaker Change: Really nice favorable script going forward. So guys are willing to get paid on a discount to that because they know they're getting a decent price right. Now. So if we can lock in a reasonable discount to that of low decline stuff for couple of years of hedging or so then I mean that fits right in our wheelhouse. So.

Speaker Change: No 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 the seeing lots of opportunities across both sides. Yeah. I would just Jeff I would just add you know one of the areas, we're seeing activity as scoop stack, which is nice because we obviously haven't position there, but if you are looking at areas that have a nice mix of oil and gas I think you're still seeing folks.

Mark Bunch: Yeah, I would just, Jeff, I would just add, you know, one of the areas we're seeing activity is ScoopStack, 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, you know, because there's optionality throughout there, and so we're encouraged by seeing some activity at least in ScoopStack. Got it. That's super helpful. Thank you guys.

Speaker Change: Go to market, because there's optionality throw out there and so we're encouraged by seeing some some activity at least in scoop stack for sure.

Speaker Change: Got it that's super helpful. Thank you guys.

Jeff Grampp: And at Shavaroo, I'm curious, you know, 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? And then on the production side, I know 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, you know, bell-shaped curve where you're going to have some wells above type curve, some wells below, that sort of thing?

Speaker Change: At chaparral I'm curious.

Speaker Change: It seems like while skimming cheaper and I know, it's still early about performing better so goodness on both fronts, but can we can we quantify at all how much under budget. Those wells were and then on the production side you know, it's still Super early but is there anything different about either the location of these wells or the completion technique.

Speaker Change: Could explain the early time positive results or is this just kind of general.

Speaker Change: You know bell shape curve, where you're going to have some wells above type curve some.

Speaker Change: Below that sort of thing.

Mark Bunch: Okay. Yeah.

Mark Bunch: Hey, Jeff, it's Mark. Thanks for calling in, by the way. See, your first question was about how, can we quantify how much below AFE? We think we're a little bit below 5%, below AFE, which is really good out here. And on the quantitating, boy, if I can say the word, quantifying the performance of the wells. You know, we're about seven miles away from the 500 wells, which is the first three wells we drilled. 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.

Speaker Change: Okay, Yeah, Hey, Jeff, it's mark Thanks for calling in and by the way and.

Speaker Change: So your first question was Ah.

Speaker Change: About how can we quantify that how much below.

We think we're a little bit below 5% blow AFP, which is really good out here.

Speaker Change: And on the quantity quantity quantity boy, if I can say that word quantifying the performance of the wells were.

Speaker Change: We're about seven miles away from the 500 wells, which the first two wells we drilled.

Speaker Change: 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.

Mark Bunch: 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 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 do the average of the wells. But these wells have come on really, really good. They're probably about 50% high right now to what we expected them to be producing on average. Super helpful, Mark. Thanks.

Speaker Change: But honestly. It's also if you want to know the truth. If you really look around that's kind of like a bell shaped you're right. It's it's just it's.

Speaker Change: It's a district distribution of performance for these wells and it's going to vary you know 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 really good there probably about 50% high right now to what we expected them to be producing on average.

Mark Bunch: Super helpful Mark Thanks.

Mark Bunch: So, so to be clear, there was nothing different that you guys did it on this second batch of wells in terms of completion practices or lateral links or anything that would explicitly explain at least the early time results we're seeing. Not what we think. I mean, we did have some lateral links on the initial round of wells that were short and like the The 504, the last we drilled was shortened quite a bit. It's about half the normal lateral length. But it also had really good fraction, which gives a lot of productivity. I mean, really, honestly, the completion technique and the drilling technique was very, very similar to the last time.

Speaker Change: 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.

Speaker Change: Not with novel, we think yes, I mean, we did have some lateral lengths on the initial round of wells that were short in like.

Speaker Change: The 504 are one the last one drilled with shorten quite a bit is about half the normal lateral length, but it also had really good fraction, which gives a lot of productivity I mean really honestly that the completion technique in 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.

Mark Bunch: 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 was the same practice, different reservoir rock that we All right.

Speaker Change: In the case of we lost a lot of fluid, we were able to reduce our drilling and drilling fluid costs by a lot. So but honestly, it's really just a it was the same practice differ the reservoir rock that we hit.

Jeff Grampp: That's super helpful. Thank you, guys.

Speaker Change: Alright, that's super helpful. Thank you guys.

Unknown Executive: Thank you.

Speaker Change: Okay.

Speaker Change: Thank you.

Chris Degner: The next question comes from Chris Degner with Watertower Research. Please go ahead. 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. And just curious if you have any views on what the impact might be on LOE over the longer term development of the field. Thank you.

Chris Degner: And the next question comes from Chris Degner with water Tower Research. Please go ahead.

Speaker Change: Hi, guys. Thank you I'm here for Jeff Robertson today, and just wanted to just a quick question on.

Chris Degner: The Delhi.

Chris Degner: Our project and it looks like Theres been a shift from.

Chris Degner: C O two floods and into more of like a waterflood.

Chris Degner: Type of a development and I'm just curious.

Chris Degner: If you have any views on what the impact might be in low <unk>.

Chris Degner: Over the longer term development of the field. Thank you.

Kelly Lloyd: Yeah, Chris, this is Kelly. Thank you very much. Hey, 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 purchased CO2 to the field, you know, honestly, we're kind of like, hallelujah. We've been asking Denberry to do this for the last couple of years. Now, 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've really wanted for the last couple of years. Maximize efficiency of the recycled CO2 to replace the voidage with increased water instead of purchased CO2.

Kelly: Chris This is Kelly thank you very much.

Speaker Change: I'm glad you brought it up because I'm not sure everyone is sort of paying attention to this win when Exxon decided to stop adding purchased C. O. Two to the field you know honestly, we were kind of like Hallelujah, we've been asking didn't Barry to do this for the last couple of years now, but I'm sure Exxon didn't really listened to us at all of them came to came to this decision on their own accord.

Speaker Change: But this is what we really wanted for the last couple of years maximize efficiency of the recycled see it too.

Speaker Change: The voltage with increased water instead of purchase C. O. Two it's on the order of four or 500000 per month of cost savings to us and we don't expect much if any difference in performance in the past when you saw Sidoti purchases go down it wasn't replaced by more water injection. It was just a loss in pressure now theyre going to use it.

Kelly Lloyd: I mean, it's on the order of $400,000, $500,000 per month of cost savings to us, and we don't expect much, if any, difference in performance. 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. I mean, it's just a much more economical way to run the field, and we think this is very exciting.

Speaker Change: Additional water injections to replace that pressure at a way cheaper cost I mean, it's just a much more economical way to run the field and we think this is very exciting.

Chris Degner: That's great to hear. Thank you.

Speaker Change: That's great to hear thank you.

Speaker Change: Again on the low side you know.

Unknown Executive: 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, you know, category there when the line was down. So going forward, obviously, production is going to be down, right, because when you're looking at a per barrel metric, but as Kelly said, you're looking at about a half a million dollars per month or, you know, on a go-forward basis called in the mid-20s on a dollar per BOE for a week.

Speaker Change: When we look at it earlier one thing you can do is obviously look back earlier last year. When the line was down right on the cost side and we were we were probably in the $25 per barrel plus or minus.

Speaker Change: Category there when that line was down so going forward obviously the production.

Speaker Change: Because when you're looking at per barrel metric, but as Kelly said, you're looking at about a half a million dollars per month or on a go forward basis call. It in the mid twenties on a dollar per Boe for runaway costs.

Unknown Executive: Awesome. Thank you.

Speaker Change: Awesome. Thank you.

Pro Brat: And the next question comes from Pro Brat with Lions Global Partners. Please go ahead. Hey, good morning. I just wanted to if you could break out, you know, the net increase in production, it looks like you sort of citing 850 BOE a day between Tex-Mex and Shabaru. I thought I heard you say Tex-Mex was running about 440. So does that imply that currently, you know, Shabaru is running about 440 or 410 a day? 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.

Speaker Change: And the next question comes from.

Speaker Change: Brad with Alliance Global Partners. Please go ahead.

Brad: Hey, good morning.

I just wanted to if you could break out you know the net increase in production it looks like you're sort of citing 850 Boe.

Brad: A day between Tex Mex, and chaparral I thought I heard you say Tex Mex was running about 440.

Brad: So does that imply that currently chaparral is running at about 440 or 410 a day.

Speaker Change: 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 yeah look I'll just tell you all four wells the oil rate is still climbing I think Mark said, we're sort of at.

Kelly Lloyd: But yeah, 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 had these things projected. Come on. So again, super exciting. But we sort of put a low ball safe number out there at 850. So we want to cover our base Just to clarify, though, that does include about 440 from Tex-Mex. Yes, it does. Okay. And that's actually the latest number I have for Tex-Mex is about 440 BOE net tests. I think it may be slightly higher than that, but that's pretty close.

Speaker Change: At least 50% above where we had these things projected command so.

Speaker Change: Again super exciting, but we sort of put a low ball safe number out there at 850 so.

Speaker Change: When I cover our bases there.

Just to clarify though that does include about $4 40 from textbooks.

Speaker Change: Yes, it does.

Speaker Change: Okay. That's.

Speaker Change: That's actually the latest number I have for Tex Mex is about 440.

Speaker Change: Bowie net tests I think it may be slightly higher than that but that's pretty close.

Kelly Lloyd: Great. and the Chavaroo number that we, you, that. would be included in that 850 is only for the new wells, it does not include the first three wells. And like I said, we don't know where it's going to settle out, the wells are still climbing so again, we want to put something sort of safe out there. I can tell you right now that the two added together is actually... That's helpful.

Speaker Change: And the shaft remember that we did was it would be included at 850 is only for the new wells not it does not include the first three wells and like I said you know.

Speaker Change: That we don't know where its going to settle out and the wells are still climbing. So again, we wanted to put some.

Speaker Change: Sort of safe out there I can tell you right now right now that the two added together actually.

Speaker Change: Higher than <unk> 50.

Speaker Change: That's helpful and then.

Pro Brat: 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, you know, is it too early to expect a, you know, a sort of ballpark cap backs number for fiscal 26? On the fiscal 26, Beau, it is. I mean, I think you probably saw in our press release and prepared remarks, we're working right now with our partner, PDEVCO, to figure out when we would start the mid-to-backs. And obviously, that would be a big driver of CapEx for the next fiscal year.

Speaker Change: You spent $4 4 million in the quarter as far as Capex can you give me Oh.

Speaker Change: And how much you're going to spend in the fourth quarter and then.

Speaker Change: Is it too early to expect that.

Speaker Change: Ballpark Capex number for fiscal 'twenty six.

Speaker Change: On the fiscal 'twenty six so yeah. It is I mean, I think you probably saw on our press release and prepared remarks, we're working right now with with our partner Codelco to figure out when we would start in attacks and obviously that would be a big driver of Capex for the next fiscal year that plus any afg's we receive it.

Ryan Stash: That plus any AFEs we receive at ScoopStack, which 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 do for our year-in-reserve reports, 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 our fourth quarter call, which is generally when we've done it. On the remainder of the year, so, you know, we do have some CapEx in the fourth quarter we expect to get on the completion side, but we still think the overall budget that we put out for the full year is still valid.

Speaker Change: Scoop stack, which 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 our year end Reserve reports that maybe we'll have a better feel for their budgets.

Speaker Change: 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.

Speaker Change: On the remainder of the year. So we do have some capex 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 is still valid.

Ryan Stash: So I think that was, what, 12 to 14 and a half. So we still think we're going to have a little bit remaining for the Chevrolet, Wells, and the completion side, possibly a little bit in ScoopStack, but outside of that, you know, we certainly don't expect that much additional capital.

Speaker Change: So I think that was what 12 to 14 and a half. So we still think we're going to have a little bit remaining for the chevron 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.

Ryan Stash: Okay, and then the Can you just help me with the rationale for adding, you know, a new bank, you know, prism potentially is going to be added to your, you know, your, your Capital Availability, and can you just talk about that as far as opposed to, you know, even expanding the Midlands a little bit larger? Yep. Um, so, you know, I said it's a pass, 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 were able to do is effectively keep those same terms, which I think I agree you know on both drawn spread and hedging covenants and keep them the same, but add another bank You know mid first at kind of going from 50 to 55.

Speaker Change: Okay and then.

Can you just help me with the rationale for adding new bank, you know prism potentially you're just going to be added to your.

Speaker Change: Your your.

Speaker Change: Capital availability and can you just talk about that as far as opposed to.

Speaker Change: Even expanding the Midlands, a little bit larger.

Speaker Change: So you know.

Speaker Change: I said in the past, 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 were able to do is effectively keep those same terms, which I think again.

Speaker Change: To us on both drawn spread and hedging covenants and keep them the same but add another bank.

Speaker Change: Mid first at kind of gone from $50 to 55, that's kind of one of their higher hold levels for for the space.

Ryan Stash: That's kind of one of their higher hold levels for for the space So in order to get the additional capacity, which we thought was important You know just to give us flexibility We had to bring in another bank and it was a bank that's familiar with mid first and a smaller bank that was comfortable With you know us from a credit side and the and the actual facility terms as well So, you know, I think you know I think that that was kind of the reason and obviously mid first has been a great partner to work with us here So, I mean if we were to obviously go larger With the 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 middle Great.

Speaker Change: So in order to get the additional capacity, which we thought was important and actually gave us flexibility we had to bring in another bank and it was a bank that's familiar with mid first and a smaller bank that was comfortable with us from a credit side and the and the actual facility terms as well.

Speaker Change: So I think I think that that was kind of the reason and obviously my first has been a great partner to work with US here. So I mean, if we were to obviously go larger.

Speaker Change: 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 of the same and increase the size of <unk>.

Pro Brat: Thank you so much. Thank you.

Speaker Change: Great. Thank you so much.

Speaker Change: Thank you.

Unknown Executive: This concludes our question and answer session.

Speaker Change: This concludes our question and answer session I would like to turn the conference back over to Kelly Lloyd for any closing remarks.

Kelly Lloyd: I would like to turn the conference back over to Kelly Lloyd for any closing Yeah, thank you. Like I said, we just want to thank everyone for joining us on our call and Like I said, 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.

Speaker Change: Yes. Thank you like I said, we just wanted to thank everyone for joining us on our call in.

Speaker Change: Like I said, we're really excited about the results we began to see from from natural gas prices moving up I think our natural gas revenues up 34% in the quarter and.

Speaker Change: We're excited about the opportunities in front of us and in the portfolio. We have so thanks again for joining really appreciate it.

Kelly Lloyd: So thanks again for joining. Really appreciate it.

Unknown Executive: The conference is now for attending today's presentation.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Unknown Executive: You may now disconnect.