Evolution Finalizes Acquisition of TexMex Assets

Evolution Petroleum Corporation has successfully closed its acquisition of non-operated oil and natural gas assets in New Mexico, Texas, and Louisiana for $9 million. This acquisition, named TexMex, aligns with the company's strategic objectives to sustain and enhance long-term dividend growth. Despite market volatilities, Evolution secured this acquisition at a discounted value, promising stable and low-decline production at approximately 440 BOEPD with a composition of 60% oil and 40% natural gas. The deal integrates favorably by offering a 3.4x NTM Adjusted EBITDA multiple and a PV-10 value of $13 million. Evolution funded the purchase through internal cash and borrowings, staying consistent with their mission to offer reliable dividends while emphasizing the accretive nature of the acquisition. PV-10 and Adjusted EBITDA are mentioned as non-GAAP metrics indicating the acquisition's potential return on investment. The announcement also comprises forward-looking statements with inherent risks.