Q1 2026 Evolution Petroleum Corp Earnings Call

Good morning and welcome to the evolution petroleum first quarter and fiscal year 2026 earnings release conference call.

All participants are in listen. Only mode.

Please also note that today's event is being recorded.

Thank you, welcome to Evolution, petroleum's fiscal q1, 2026 earnings call. I'm joined by Kelly Lloyd, president and chief executive officer. Mark Bunch Chief, Operating Officer and Ryan. Stash, senior Vice President, Chief Financial Officer and treasurer.

We released our fiscal first quarter 2026 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.

Please note that any statements and information provided in today's call speak only as of today's date. November 12th 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. We undertake no obligation to update any forward-looking statements,

During today's call, we may discuss certain non-gaap Financial measures, including adjusted ibida and adjusted net income. Reconciliations of these measures to the closest comparable. Gaap measures can be found in our earnings release.

Kelly will begin today's call with opening comments. Mark will provide an update on our properties and plans as they relate to our ongoing strategy of maximizing shareholder. Returns Ryan will then provide a brief overview of our fiscal quarter highlights. 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 investor section of our website.

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

Thank you, Brandy and good morning everybody.

We entered fiscal 2026 in a solid position building on the momentum we carried through last year. Our first quarter, reflected continued execution, across a broad and diversified portfolio underscoring, the resiliency of our business model through commodity price Cycles.

Total revenue was 21.3 million, a modest decline from the prior year, period driven primarily by lower realized oil and NGL prices partially offset by a 43% increase in natural gas pricing.

Even in a softer pricing environment, our assets performed in line with expectations generating positive earnings and meaningful cash flow.

From a strategic standpoint. This was an important quarter for evolution. We closed our first acquisition consisting only of minerals and royalties in the scoop stack, expanding our exposure to high-quality Long Live reserves, while maintaining the capital light profile that defines our portfolio.

The structure of this transaction allows us to participate in future development over 650, Grouse locations across a highly active Basin that we're very familiar with given our other Assets in the region.

With minimal operating expenses and no future Capital commitments, presents us with meaningful upside.

We are maintaining a strong financial foundation with ample liquidity and low leverage, supported by the credit facility expansion completed at the end of fiscal 2025.

That flexibility continues to position us, well, to pursue a creative opportunities while maintaining a consistent return of capital to shareholders through our regular dividend.

To that end yesterday, we declared our 49th consecutive quarterly, cash dividend and our 14th consecutive cash dividend of 12 cents per share for the fiscal, second quarter.

As for the macro Outlook and how it will affect Evolution, we'll start with crude oil.

It's in the middle of a tug-of-war between OPEC plus trying to appease the US by keeping prices lower and depleting Sovereign wealth funds.

When will we begin filling? The Strategic petroleum. Reserve will the ceasefires? Hold?

With global supply and demand. So close to being in Balance. There are a lot of questions as to when and where the next marginal Barrel will be needed with the Futures Market at or near all-time net, short levels at present. The herd is spoken and pushed crude to around $60 per barrel.

A couple of points here.

First, I don't think anybody would argue with this but at $60 a barrel capex. Budgets are beginning to be reduced which will lead to at some point prices needing to move higher to Spur enough drilling to meet demand.

Second with the speculative net short position.

Any geopolitical Catalyst can quickly trigger a short covering rally?

Folio.

Whether the upswing in the cycle occurs in the next few quarters, or next few years Evolution and its shareholders will be there to reap the rewards.

As for natural gas.

The electrification of everything, everywhere, in ongoing carbon intensity reduction efforts, along with growing exports, creates a rapidly growing demand environment.

set to persist for at least the next decade.

Whether remains all important, however, with an estimated 20 to 30 BCF per day of coming demand over the next decade or so off of a current 105 BCF per day supply base.

There is a reason the Futures curve for natural gas, currently range from the high 3S to the high fours for as far out as they trade.

Of note, our natural gas revenues were up 38% over the year ago. The quarter and Henry Hub only averaged $3.03 for the quarter, whereas the calendar 2026 strip is currently over $4.00.

Turning back to our assets.

We were encouraged this quarter by the continued operational consistency across our portfolio.

Each of our assets delivered, steady results during the quarter reflecting, the quality of our fields in the strong relationships. We maintained with our operating partners.

Importantly, we have flexibility across our asset base to adjust development activity, based on market conditions, which allows us to balance near-term, returns with long-term value creation. We expand drilling when prices are high and acquire assets, when prices are low.

All while benefiting from our low decline, producing reserves to maintain strong cash flows throughout the cycle.

Our strategy remains consistent operate efficiently, allocate Capital prudently and return Capital to shareholders while maintaining Financial strength. We remain focused on generating sustainable free. Cash flows that supports our regular dividend and positions us to take advantage of attractive acquisition opportunities as they arise. That discipline has been a Cornerstone of evolution success for more than a decade and it will continue to guide our decisions in fiscal 2026 and Beyond

With that, I'll hand it over to mark for more details on the assets.

Thanks Kelly. 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 additional details across our asset base.

Starting with the scoop stack. 3 wheels were turned to sales and 2 additional Wells remaining progress from prior periods. Additionally we have seen current drilling activity on 12th Mineral Lake.

At Shaver operations, remain stable. We continue to build optimization efforts, including converting, electric submersible, pumps to Rod lift on, 5 of our 7 Wells, which should help our F help lower our future operating costs,

No, new drilling occurred during the quarter and permitting continues for the next development pad with timing of drilling contingent on oil prices.

In the Williston Basin, we continue to see horizontal drilling activity and moving towards our approximately 40,000 net acres, and we are very excited to see what may come out of this.

A Delhi. We continue to recycle CO2 with no new capital activity dell high production was impacted this quarter because of downtime related to an unscheduled turbine repair and higher summer temperatures which reduced CO2 injectivity in the field.

The turbine has been repaired and temperatures are already cooler.

At Jonah for production, increased in physical q1 is the field. Worked off prior pipeline imbalance, volumes from fiscal Q4 2025,

With imbalances corrected, sales volumes have now returned to expected levels, substantially completed by October.

Turning to the Barnett Shale field performance remain consistent with expectations production was stable supported by targeted work overs and higher realized gas prices versus a year ago quarter.

At Hamilton Dome lease operating expenses normalized. In fiscal, q1 following elevated, work or activity. In Prior periods. A slower pace of work overs is expected during the fall and winter months with efforts spoke some maintaining key Wells.

Finally, our text mix integration efforts progressed during the quarter, where we saw some higher operating recall costs resulting from the transition to the new operator.

Part of a broader field optimization plan.

Ongoing activity remains focused on restoring production, evaluating future opportunities across the acquired acreage consistent with our expectations at the time of the acquisition last fiscal year. All said, we expect production to increase and operating costs per barrel to decrease moving forward.

Overall, our assets continue to perform as expected, and we remain disciplined in allocating capital for the highest return opportunities while maintaining operational flexibility.

Over to you Ryan.

Thanks Mark and good morning everybody.

As Brandy mentioned earlier, we released our earnings yesterday, which contains more information on our results for today, I'd like to go through our financial highlights.

For the first fiscal quarter of 2026, total revenue was $21.3 million compared to $21.9 million in the same period last year and was up from fiscal Q4. The modest decline year-over-year was driven primarily by lower realized oil and NGL prices, down 14% and 8%, respectively.

Partially offset by a 43% increase in natural gas prices.

The quarter's Revenue. Mix was 60% oil, 28% natural gas, and 12%, nose. And our average realized price was $31.63 per bill.

Net income for the quarter was $0.8 million, or 2 cents per diluted share, compared to $2.1 million, or 6 cents per share, in the year-ago quarter.

Adjusted IBA was 7.3 million compared to 8.1 Million last year, reflecting the impact of lower oil and NGL prices and higher lease, operating costs at our tax mix asset as previously discussed.

Cash provided by operating activities increased to 7.8 million for the quarter compared to 7.6 Million last year. And capital expenditures, incurred for drilling. And completion activities were 1.9 million.

At September 30th 2025 cash and cash, equivalents total 0.7 million.

We had 53 million of borrowings and 0.8 million in letters of credit outstanding under our revolving. Credit facility resulting in total liquidity of approximately 11.9 million, including cash and cash equivalents

The reduction in networking Capital, this quarter is related to the integration of 2 recent acquisitions. And we expect this to prove improve over the coming months.

During the quarter, we returned 4.1 million to shareholders through our consistent, 12 cents per share. Quarterly dividend marking the 49th consecutive quarterly dividend and 14th consecutive at the current rate.

To date, Evolution has returned approximately 139 million or 4.17 cents per share back to stockholders in common. Stock dividends

On the hedging front, we have continued to add hedges to maintain compliance with our credit facility covenants and protect cash flow for our shareholder return program.

Overall, our strong asset base and financial positions continue to support both the dividend and our ability to pursue accretive acquisitions that enhance long-term shareholder value.

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

Thanks Ryan as we progress with fiscal 26. We're encouraged by the continued consistency of our operations in the strength of our asset base.

We'll continue to return meaningful Capital to shareholders through our dividend program. Maintaining our policy of setting the dividend at a level that we view to be sustainable for multiple years.

We believe Evolution is well positioned for both the year ahead and many years to come. We remain steadfast in executing our strategy to deliver long-term shareholder value creation through disciplined capital management, strategic acquisitions, and conservative cost management, all to ensure the strength and continuity of our quarterly cash dividend through all market environments.

Listen, we've been doing this for many years and we continue to do this for 2026 and Beyond.

With that, I'll turn it over to the operator to begin. Our Q&A session. Thank you.

Thank you. We will now begin the question-and-answer session.

to ask a question, you may press star then 1 on your touchtone phone,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

if at any time your question has been addressed and you would like to enjoy your question please press star then to

At this time, we will pause momentarily to assemble our roster.

The first question comes from Jeff. Cramp with nodland capital markets, please go ahead.

Okay, good morning, I wanted to start at, um, at textmaxx. It sounds like the the results from the quarter, probably understate, the potential of that asset in, in the quarters ahead. So I was just kind of wondering if you guys have, is there a way to quantify? I guess what a a normalized looe would would be for that asset. And what kind of upside you guys are maybe expecting uh from some of the optimization work over activities that you and the operator have identified so far.

Okay, yeah, Jeff, I'll I'll take that 1. And, you know, now when we bought this, we, you know, we expected that there was, you know, there could be extra costs and stuff, going forward up up front and just to get it up to where we wanted it to be. That we agreed with the, uh, the, the new operator about that. But we also had the little hiccup in the road. And the transition time between transferring operators, took a little longer. So, we had some production that dropped down that they weren't able to get back online. We've actually started doing that now. So, really, with the production being brought back up to where we expected to be and we've also seen the costs. Uh, the Baseline costs dropping with the new operator Taking Over Control. We expect the the uh, lifting costs to get back to more reasonable level. It's not going to stay 47. And, um,

You know, we we we'll probably have a little bit higher, uh, work over cost here going forward. But it's not going to be excessive. And so far the the 3 work overs at the new operator's done. Uh they've done for, you know, significantly under budget. So we're really really pretty happy with the way the assets going. You know I I kind of look at this asset as you know going forward basis kind of locks think I think of a lot of is it looks a lot like the lifting costs for like Williston or something like that. That's how I kind of look at it. But right now, I don't know what I could. I can't give you more guidance than that on what I think it would do just because we haven't really seen enough, uh, going forward with the new operator,

Understood and and just to, to dive in on that, um, with 1 more follow-up is is, do you think you get some of that production benefit in the current fiscal quarter, we're in or what's kind of the uh, the Cadence of when some of these can flow through into production results?

Uh, once the operator took over and got control, the new operator took over and got control. Uh, they've already done 3 of 7 that they've already proposed to us, and they're going to have some more; they're going to be proposing. So, yeah, I expect the lion's share that will be back this quarter.

But maybe not the full effect or the whole quarter, right? But as as we progress through the quarter, that's correct. Kelly

Understood. Okay, that's really helpful. Um, and for my follow-up I'll I'll ask the obligatory m&a question and just kind of get an update from you guys on Deal flow and I guess it's, you know, it's an interesting time with

Uh, the dichotomy of gas versus oil prices. And, um, just kind of wondering if you guys are seeing any major delta in terms of bid-ask spreads for oil-weighted deals or gas-weighted deals, and how you guys balance your focus. Thanks.

Sure. Yeah, thanks Jeff. This is Kelly. Uh, I'll take that we, we are seeing uh, a number of, of attractive or potentially attractive deals that we're looking at. And it, it is kind of a cross both fronts, um, the gas being attractive because they're sort of trading on current terms. Uh, whereas we have some some Futures markets where we can lock in nice returns, and then, uh, on the oil side, they're also trading on Futures terms, uh, which again, are, are pretty muted at the moment and, uh, at least our group doesn't think. For the next 5 years, you're going to see oil prices at at 60. I we just don't think that's

Remotely sustainable to meet the, the demand that's going forward. So um yeah, we're seeing a lot of good stuff. I will say 1 of the things that's interesting.

Uh on the acquisition front. Uh We've we've been uh always opportunistic. And that's what we like to look at. I, I will say right now, you know, looking at the minerals deal, we did buying that at you know, 3, 4, 3, 5 times, multiple, those are multiples that we consider really attractive for minerals with upside and inventory. So if minerals are going to be competitive with working, interest buys, that's that's something we're going to continue to look at. So um anyway, we're excited about what we're looking at going forward. Thanks for the question.

Those details, I'll turn it back.

The next question comes from Jeff Robertson, with water tower research, please go ahead.

Thank you. Mark to follow up on the question around TextMe. Can you over the next several quarters? Can you talk about their trajectory of

Flow through the LOE line. And and I think you said you, you thought if I heard right, that that asset from an LOE standpoint could normalize somewhere around the level of your will, and basing properties. Is that correct?

Uh, to answer your last the the last thing you uh uh, said there was the Wilson Basin. Yeah, that's kind of what I look at is where it because it's kind of similar type property. Uh, and then I think it, I mean, I don't right now, I actually don't know if we'll be completely finished by the end of the of of this quarter. Uh I would suspect it may bleed over into the next it's it's the same deal you know, there's it's going to be a process. Just uh fixing things up. You know, we got a good deal on this thing for a reason. And we we knew that we were going to have to do some work on it and we you know, I think over the course of time it's going to turn into something really valuable for us but we, you know, Jeff to follow up on that. This is Kelly. We do expect to see the numerator and the denominator move, right? Um, so we're putting production back online as we go to. So yeah we had because the operator was

Was because of transition time a took a lot longer. And and honestly, that was really a problem with the state. It wasn't really a problem with the operator, the the goalposts were kind of changed. That's actually what kind of put us a little bit behind on, keeping the production up was, was it the off the new operator couldn't get on some of the wells. And so now that they're back on them, they they have they are working really fast, they've gotten a lot of stuff.

Done faster than I actually expected. So, uh, so far, we're excited about how things are going.

And then from a margin standpoint, can you just elaborate on uh what's going on at Delhi and and how you think that uh how you think expenses there will Trend over the next couple of quarters? I think you all are now just recycling, CO2, rather than

uh,

uh, purchasing and injecting CO2.

Yeah, the uh, since we're not, you know, I think you that from a, from a, a total cost basis those, you know, that's going to stay fairly, uh, consistent to where it was to where it has been. Um, you know, we expect the production rates will come back up, which will help the, uh, lifting costs and dollars per Boe terms, just because we're going to be, uh, you know, we're getting back into the cooler months and so oil rates. Go up and we also have had uh good run times from the NGL plants. Uh, you know, after we we got the turbine fixed. So I think that uh you'll see overall the the, uh, cost for Boe to improve slightly. Yeah, I mean, I think I think that's right. Jeff like on a if you look on a total cost basis, right? Sequential quarters, it was pretty flat, right? It was slightly down this quarter but obviously production took ahead from some of the downtime in the summer weather. So, you know, in dollar per Boe basis, it should Trend down a little bit but you can see the overall cost. Excuse me, a relatively flat.

and lastly, are you having any conversations yet with the operators of some of your, um,

More significant properties on on any plans that they have as they look into 2026 to maintain production levels.

Yeah, I'm sorry. Jeff. You broke up a little bit. Could you repeat that please?

Sure. Kelly are you all having any conversations that you can talk about with the operators of some of your major properties like the Barnett or like, uh, Jonah is hard as what they intend to do, or what they might think about doing in 2026.

Just to try to maintain production levels.

Sure. Uh, to the honest answer, there is that, that, with prices, where they are, they they, you know, have told us, they intend to do everything they can to keep production as high as they can. Uh, there's not a whole lot of levers, they can pull. But, you know, if prices are, you know, we have seen in the past and present to get really low. They they sort of well goes down. They may let it stay down. Well that that won't be the case for the natural gas properties right now. So,

thank you.

Thank you.

If you have a question, please press star, then 1.

The next question comes from Ron Aubrey, with RJ, Aubry investment, please go ahead.

Yeah, thanks guys. Uh,

Pretty much want to focus on net natural gas. Looks like just revenues and...

production.

Healthy. Uh,

5% quarter and quarter growth. And I'm just wondering

when you look at your hedging program for future Natural Gas,

Yeah. So on on the hedging basis, you know, because of our credit facility requirements. Um you know we're we're over. 50% hedged actually closer to probably 70% Hedge for the next year but what we've done on the hedging programs we we try to maintain upside, right? So we've done a mix of, you know, callers and swaps trying to lean more towards collars to range for the upside. So you know, our floors are generally in the 350 to 360 uh, range for for next year. But you know, in a lot of the, the ceilings for the colors, we've got almost 5 dollars, right High Force to 5. So, you know, we want to maintain that upside but protecting the downside and I think in the natural gas market, certainly we're a little more apt to hedge into the contango, right gas. Curve versus the crew right on crude. We're trying to stay much more near-term as far as the crew cuz it's flat to backward dated, um, generally historically. So, you know, I'd say we're probably more hedge than typical and gas, but a lot of that is just because of the

opportunity set too in the gas book.

Yep. That's very helpful and nice to see Jonah.

Coming back to normal sales but especially going into winter. Um, what does the outlook look like for West Coast pricing as a premium to Henry hub?

It's, it's kind of, this is Kelly. Thanks for the question. Um, it's always, you know, pretty variable. But we, you know the expectations are for that area to be normal which uh, I don't know if normals plus a buck 50 plus 2 bucks. Uh, but we we've certainly seen higher than that. Um, and an awful winner, we've seen less than that, but I think everybody's expectation there now is, is for, you know, pretty healthy premium. So,

Yeah, I mean, thanks for that. A lot of it's going to depend on obviously um, you know, it goes without saying whether right. I mean, some of the forecast call for a cold and West Coast but we'll just see. Um, you know, the thing about the west coast is the storage levels. Are just not very abundant, so it doesn't take a lot of cold weather to get spikes there. But, you know, we're just going to have to wait and see for the weather, but we, we generally will expect a premium to Henry Hub in the winter, you know, barring, a very warm winter. It should be still be a premium battery. Yeah, you know, Ryan brings up a really good point and you can look at oh, West Coast storage is is full its high. Well, that is a matter of, you know, days of coverage. I mean uh if if it if you get the weather come in and any reasonable normal, I'm not asking for Extraordinary, any kind of normal way, they don't have near enough storage to cover their demand. Uh, that would be drawn on a normalized weather basis. So it, you know, you can, you can see some pretty good movements there. And again, that's why we intentionally wanted to get exposed to that market.

Fair enough. And uh, 1 final question on Barnett looks like their production was relatively flat quarter by quarter which is fine, but saw a pretty significant increase in their Eloise. Was that a 1-off thing? Or is it? Can you give you some color on that?

Yeah, that that's a the reason you saw the increase from uh consecutive quarters is because you you probably forgot that we had a uh out of period adjustment due to uh an audit settlement with the uh, operator. And that's why lowered it down below 9 bucks. And now it's back up to a normal run rate.

All right, fair enough. Thanks for uh, all your answers and

Continued operating this company in a wonderful way. Thank you.

Thank you very much. We appreciate the uh the input. Thank you.

The next question comes from Jeff Robertson with Water Tower Research. Please go ahead.

Thanks Ryan. Can you is there any color you can share on the bank Market? As you all? Look at acquisition opportunities and and availability for

uh,

Increased the rbl, if you were to need 1.

Yeah, um, so, you know, the bank Market Still Remains pretty healthy. Um, in fact, you know, the conversations I've had with Bankers, a lot of them are actually looking now to deploy Capital again. Um, you know, getting back more and and aggressive nature, I wouldn't call it. It's ever going to see what we did a few years ago with those kind of terms and aggression. But, you know, terms are generally flat to a little better right for for borrowers. And, and the market for the size facilities we're looking at is is is really healthy, you know, a lot of the regional Banks. And even some of the larger Banks, I'm hearing are getting a little bit more aggressive into the, you know, coming down to the oil gas space. So I think people are seeking returns really on the bank side. So certainly we wouldn't we don't feel like we'd have an issue increasing the size of the facility if needed for the right acquisition.

To add other partners and have it be, you know, very syndicat. So, um, it if, if something was highly accretive and and would work out great for us, that it it needed some, uh, Bank piece to it. We, we are well set up to, to be there for it.

Thank you, Kelly.

Yeah. Thanks Jeff.

The next question comes from Paul, fraught with Alliance Global Partners. Please go ahead.

Hey, good morning. Just a couple of clean up questions. Um, what did the minerals acquisition add in the quarter? And then is there a another step up in in the coming quarter, as far as was it in for the full quarter?

Hey Poe. This is Kelly. I appreciate the question. Yeah, no, it was only for a couple months of the quarter. So 2 months, a little less than 2 months, uh, of the quarter. So, uh, we absolutely, we do expect that we'll see a full benefit of that, uh, coming in this quarter and it's, it's really in line with what we said in the uh in the press release. Uh, the volumes are are coming in good, uh so our revenues.

Okay, great. And then when I started to look at...

Scoop should stack up a little bit. Text Max should be up a little bit. Dell High should be up a little bit for the next quarter.

But would you take a stab at the full year? You know, production guidance? I think with all the puts and takes I'm looking at sort of a flat year.

From a production standpoint, fiscal 2026 versus fiscal 2025.

Any comments on, that would be helpful.

Yeah, I mean obviously you know, we we kind of have it provided Guidance just, you know, on on a yearly basis on production really? Frankly just because of the control Factor but um to your point I mean, you know, there are going to be puts and takes and to some of its going to

Development right in scoop stack. Um, you know, we are seeing good activity on our asset but with the delays in reporting on the royalty side, it's hard to get a good feel for where the direction of production, you know, obviously, you also have shaver and the timing of those Wells, um, which, which we are getting, you know, we're getting permits and obviously continuing to monitor those but like a flattish Outlook is probably not. You know, that that's probably not a a bad assumption but ultimately it's hard for us to really provide guidance. Until we see some of the activity levels. Like I said, and scoop stack

That's helpful color. Um, and then when when I look at the capex side, you know, 3.8 million in the first quarter, is that

You know, I know that there's, you know, some uncontrollable in that number, but with 15 million for the year, be a reasonable Target.

No. Actually we, you know, we put out kind of our, in our year end. We said kind of 4 to 6 was our guidance range for for 2026 and actually I

will have to we can we can

the line but we're you know we only reported about 2 million in capital for the first quarter and some of that 1.9. Yeah some of that is a little bit front uh loaded in the front for some of the work we had to do on on on the wells out in Shaver um to convert some of the pumps. So you know I still think 4 to 6 for a range still makes sense. Um you know all things considered for actually uh, this upcoming fiscal year.

Okay, so could it happen?

Or in the first.

Quarter of the September quarter, right?

About a third of it. Yeah, yeah. About a third and that, and that was mainly, because of the, uh, 5 pump jacks, we put in at chevre, replacing the esps.

Okay. And then since you mentioned Trevor, a couple times any early read on what's going to happen with chevoo considering the pivot by the operator to become more of a Rocky's Flair.

Sure. Um, you know, we've had brief discussions with them and and furthering that we're told that, you know, business as usual. So, um, we, we have a really good relationship with them. And, uh,

Look, that's so far. That's what we've been told businesses usual. And we both agree on on timing and and when to start things um and and I I think we mentioned this last quarter. Uh but we don't, we don't believe it, you know, 60-ish dollars per barrel. We're in a rush to go out and start drilling Wells right now there. So

yeah, I was just looking at more from a strategic standpoint for padebco. So,

What they're telling us so far. It's it's business as usual. So,

Great, thank you so much.

Thank you.

Thank you.

This concludes the question and answer session.

I would like to turn the conference back over to Kelly Lloyd for any closing remarks.

Appreciate that. Thank you, listen. We want to thank everybody for taking the time. Uh, and showing the interest and asking your questions. We we really appreciate it. Uh just in summary we're we're really excited about fiscal 26 and Beyond where the where our portfolio is and and the Outlook going forward, um it's it's going just as we expected. So we're, we're excited going forward and uh, happy to have y'all along with us. Thank you.

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