Evolution Petroleum: Bullish 10%-Yielder Up 32% in 2026
March 19, 2026
Company Declares 50th Consecutive Dividend
Things are looking up for Evolution Petroleum Corporation (NYSEAMERICAN:EPM).
Energy was one of the worst performing sectors in 2025, and the outlook for 2026 wasn’t exactly bullish. But all that changed in late February after the U.S. and Israel launched attacks on Iran.
In just a matter of days, the price of crude oil jumped from $65.00 per barrel to $75.00 per barrel, with analysts predicting that crude could cross $100.00 per barrel. That prediction came and went.
On March 9, West Texas Intermediate neared $120.00 per barrel. Brent Crude, the international benchmark, also closed in on $120.00 per barrel. Not surprisingly, the energy sector is now the top performing sector, rising 10% over the last three months, 22% over the last six months, and 25% year to date. It’s also up more than 35% over the last year.
How much higher could crude go?
It depends on how long the war lasts. Qatar’s energy minister said that if the war drags on, crude could pass $150.00 per barrel and see the global economy slow down. (Source: “Qatar Energy Minister Warns Escalating Conflict With Iran Could Halt Gulf Energy Exports Within Weeks,” MarineInsigh, March 7, 2026.)
Exactly why have oil prices soared this much?
The war has shut down the Strait of Hormuz, a narrow but critical passage that connects the Persian Gulf with the rest of the world. Roughly 20 million barrels of oil, or 20% of global consumption, passes through the strait every day.
The U.S. imports just 12% of its oil from the Middle East, but the price of gasoline in the states has responded to the war with big increases. The average price for U.S. gas has hit $3.48 per gallon. That’s up approximately 17% since the attacks began on February 28. (Source: “U.S. Gasoline Prices, Rising Again, Hit $3.48 a Gallon,” The New York Times, March 9, 2026.)
About Evolution Petroleum Corp
All the more reason to put the spotlight on domestic exploration and production (E&P) companies like Evolution Petroleum. Houston-based Evolution is an independent energy company engaged in the development, production, and ownership, of onshore oil and natural gas properties in the U.S. (Source: “Investor Presentation, November 2025,” Evolution Petroleum Corp, last accessed June 25, 2025.)
It’s actually been growing its assets though a number of strategic acquisitions over the last number of years:
- Hamilton Dome in Wyoming: ~1,400 net acres. Acquisition closed in November 2019.
- Barnett Shale in Texas: ~21,000 net acres. Closed May 2021.
- Williston Basin in North Dakota: ~43,300 net acres. Closed January 2022.
- Jonah Field in Wyoming: ~950 net acres. Closed April 2022.
- SCOOP/STACK: ~4,200 net acre acquisition. Closed in February 2024.
- Chaveroo Oilfield in New Mexico: ~8,000 net acres. Closed January 2024.
- TexMex in New Mexico, Texas, and Louisiana: ~11,200 net acres. Closed in April 2025.
- SCOOP/STACK Minerals in Texas – ~5,500 net royalty acres. Closed in August 2025.
- The Delhi property in Louisiana: ~ 3,200 net acres (legacy).
Thanks to these accretive acquisitions, Evolution’s daily barrels have increased approximately 3x since 2019. Its proved reserves stand at 27.1 million barrels of oil equivalent. Of that, 45% is made up of oil, 38% natural gas, and 17% natural gas liquids.
And, thanks to the long life, low decline in assets, it has 15+ years of reserve life.
Strong Q2 Financial Results
Despite weak commodity prices, Evolution Petroleum managed to report strong fiscal second-quarter results with meaningful increases in profitability. For the period ended March 31, 2026, Evolution announced that revenue increased two percent on an annual basis to $20.68 million. (Source: “Evolution Petroleum Reports Fiscal Second Quarter 2026 Results and Declares $0.12 per Share Cash Dividend for the Fiscal Third Quarter,” Evolution Petroleum Corp, February 10, 2026.)
On the production side, the average barrels of oil equivalent per day generated advanced by six percent to 7,380. Oil production increased eight percent, natural gas rose six percent, and natural gas liquids production went up seven percent.
The company swung to second-quarter profitability of $1.1 million, or $0.03 per share, up from a second-quarter 2025 net loss of $1.82 million, or a loss of $0.06 per share. Adjusted net income came in at $257,000, versus a second-quarter 2025 adjusted net loss of $841,000.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 31% to $7.99 million.
10+ Years of Dividend History
The main page of Evolution’s website proclaims it has “Capital Discipline & Consistent Dividend.” And it does. In fact, the company has consistently returned capital to shareholders through all commodity cycles.
This has resulted in Evolution paying 50 consecutive quarterly cash dividends, recently declaring its 15th consecutive cash dividend of $0.12 per share.
This works out to an annual distribution of $0.48 per share, for a forward dividend yield of 10.5%.
Since paying its first dividend in November 2013, EPM stock has returned $139.0 million in dividends to shareholders, or $4.17 per share.
EPM Stock Thumping S&P 500
Supply disruptions, geopolitical tensions, and the war in Iran have been a boon to energy stocks since the start of the year, and EPM is no exception. It hasn’t hurt that Evolution has also been reporting strong financial results.
As of this March 9 writing, the stock has rallied:
- 13% over the last month
- 17% over the last three months
- 32% year to date
Wall Street expects EPM to climb considerably higher over the coming quarters, with analysts providing a 12-month share price average of $4.93 per share and high price target of $5.30 per share. This points to potential upside of approximately six percent to 14%.
Though, to be fair, analysts haven’t updated their price targets since December 23, 2025, so these projections might be a little conservative.
Chart courtesy of StockCharts.com
The Lowdown on Evolution Petroleum Corp
Evolution Petroleum is an E&P company with a growing portfolio of properties in some of the most prolific onshore fields in the U.S.
It has a strong balance sheet, an active acquisition strategy, is reporting strong financial results, and is home to one of the lower-risk investment vehicles in the energy industry. It’s also home to a reliable ultra-high-yield dividend. Management has said that maintaining its dividend is a top priority.
