Evolution Petroleum Enters Material Definitive Agreement

TL;DR

**Evolution Petroleum just signed a big deal, watch for details!**

AI Summary

Evolution Petroleum Corporation filed an 8-K on January 10, 2024, reporting an "Entry into a Material Definitive Agreement" on January 5, 2024. This filing indicates that the company has entered into a significant new contract or partnership, which could impact its future operations and financial performance. For investors, this matters because such agreements often signal new revenue streams, strategic shifts, or changes in operational costs, potentially affecting the stock's valuation.

Why It Matters

This filing signals a potentially significant business development for Evolution Petroleum, which could lead to new opportunities or obligations that affect its financial outlook and stock price.

Risk Assessment

Risk Level: medium — The filing indicates a material agreement but lacks specific details, creating uncertainty about its financial impact and potential risks or benefits.

Analyst Insight

Investors should await further disclosures from Evolution Petroleum Corporation to understand the specifics and financial impact of this material definitive agreement before making investment decisions.

Key Players & Entities

• Evolution Petroleum Corporation (company) — registrant
• January 5, 2024 (date) — date of earliest event reported
• January 10, 2024 (date) — filing date of the 8-K

FAQ

Key Financial Figures

• $0.001 — nge On Which Registered Common Stock, $0.001 par value EPM NYSE American Indic
• $43.5 million — ombined purchase price of approximately $43.5 million in cash. Contemporaneous with the execu
• $3.26 million — SAs, the Company paid deposits totaling $3.26 million. The Company expects to fund the balanc

Filing Documents

• epm-20240105x8k.htm (8-K) — 36KB
• epm-20240105xex99d1.htm (EX-99.1) — 18KB
• epm-20240105xex99d1001.jpg (GRAPHIC) — 10KB
• 0001558370-24-000186.txt ( ) — 193KB
• epm-20240105.xsd (EX-101.SCH) — 3KB
• epm-20240105_lab.xml (EX-101.LAB) — 16KB
• epm-20240105_pre.xml (EX-101.PRE) — 10KB
• epm-20240105x8k_htm.xml (XML) — 5KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement . On January 5, 2024, Evolution Petroleum Corporation (the "Company") entered into separate Purchase and Sale Agreements ("PSAs") with Red Sky Resources III, LLC, Red Sky Resources IV, LLC, and Coriolis Energy Partners I, LLC. Pursuant to the PSAs, the Company will acquire non-operating working interests in oil and natural gas assets in the SCOOP and STACK plays in central Oklahoma for a combined purchase price of approximately $43.5 million in cash. Contemporaneous with the execution of the PSAs, the Company paid deposits totaling $3.26 million. The Company expects to fund the balance of the consideration to be paid in the transactions with a combination of cash on hand and borrowings under its senior secured credit facility. The acquired assets consist of an average working interest of approximately 3% net to Evolution, in 230 producing wells in the SCOOP and STACK plays of the Anadarko Basin in Blaine, Canadian, Carter, Custer, Dewey, Garvin, Grady, Kingfisher, McClain, and Stephens counties, Oklahoma. The acquisitions also include approximately 3,700 net acres with more than 300 associated potential drilling opportunities. The acquired assets currently produce approximately 1,550 barrels of oil equivalent per day, with a commodity mix of approximately 42% oil, 43% natural gas, and 15% natural gas liquids. The effective date of these acquisitions is November 1, 2023 and each transaction is expected to close in mid-February during the Company's third quarter of fiscal 2024. The PSAs governing each transaction contain customary representations and warranties, covenants, indemnification, closing conditions and termination provisions and also provide for various purchase price adjustments to be calculated as of the closing date. The foregoing description of the PSAs and the transactions contemplated therein does not purport to be complete and is qualified in its entirety by reference to the PSAs, which will be

01 Regulation FD Disclosure

Item 7.01 Regulation FD Disclosure. On January 9, 2024, the Company issued a press release disclosing the transactions. A copy of the press release is included herewith as Exhibit 99.1 and the information in the press release is incorporated by reference into this Item 7.01. Exhibit 99.1 shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. Exhibit No. Description 99.1 Evolution Petroleum Corporation Press Release dated January 9, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Evolution Petroleum Corporation (Registrant) Date: January 10, 2024 By: /s/ RYAN STASH Name: Ryan Stash Title: Senior Vice President and Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR