M&A
confidence high
sentiment positive
materiality 0.70
EVOLUTION PETROLEUM CORP (EPM): M&A transaction — Evolution Petroleum closes $17M mineral/royalty acquisition in SCOOP/STACK, Oklahoma
EVOLUTION PETROLEUM CORP
- Acquisition of ~5,500 net royalty acres in Grady and Canadian Counties, Oklahoma for ~$17M cash, funded from cash on hand and credit facility.
- Net production ~420 BOE/d (54% gas, 15% oil, 31% NGLs) with >650 undrilled locations, providing 10+ years drilling inventory.
- Immediately accretive to cash flow per share; expects to receive most cash flow from effective date (May 1) to closing within 90 days.
- High-quality operators include Camino Natural Resources, Canvas Energy, Coterra Energy, Mach Resources, Validus Energy.
- CEO Kelly Loyd says deal sets foundation for diversified growth and supports dividend strategy.