Evolution Petroleum Corporation Noble Capital Markets Virtual Equity Investor Conference

Thank you, Richard, and thank you everybody for joining us. I will just walk through quickly a little bit of what we think makes Evolution different and special. Most energy companies really tend to make as much oil and gas as they can, and then if they have some money left over, pay a dividend. We are a little bit different. We want to fund a dividend. That is what we have set our portfolio up to do, and that is what we are excited about. As you can see, over the last really 11 years plus, we have done $151.7 million of dividends that we have returned to shareholders, which is equivalent to about $4.77 per share over that timeframe. Our footprint, what we do, we are a non-op, meaning we do not operate wells.

We have interest in wells, and that interest is either a working interest or it is a mineral and royalty interest. This is what allows us to enter into so many basins, and so many really different markets with different commodities without having to put up a full team for each one. An operator would need scale, and we lean on operators who take advantage of scale, but we do not. We have a lean team of 10 professionals, a very simple structure, which we think is a lower risk sort of investment vehicle in the energy industry. It is scalable, our model, the way we do it. It allows us to leverage our G&A to the point where we think that each acquisition we do becomes more accretive versus more expensive. A couple of ways that we own reserves.

As I mentioned, we have the working interest model, and we have the mineral and royalty interest model. I think most of you will know this, but for those who do not, we have our partner operated working interest, which just means we own a percentage of a well and/or a lease. Any expenses that are there, we pay our expense and we go from there. We also have mineral and royalties, which means, we get an interest from what is actually produced in the ground, and it is not cost-bearing. You may pay a little bit for processing or transportation or production taxes, but the lifting cost, the cost of drilling, any of those sort of things, they go to the working interest and operators. We started off with a beautiful asset in Louisiana called Delhi.

When we made the decision to become a dividend company back in late 2013, this was a nice producing asset that was going to be flat and go for a long time. But eventually we realized, hey, there are hurricanes in Louisiana. There is weather. Let's go ahead and diversify. So we started to diversify, again, with a lean team here. The investment committee, which I spearheaded back in the day, we put together assets, as you can see, across some of the most prolific basins, the Bakken and the Williston Basin. You have the Barnett Shale, SCOOP/STACK in Oklahoma, Permian over on the New Mexico side, as well as now with our latest acquisition, Permian in the heart of the Midland Basin. All of this was done very specifically, with a goal of accomplishing diversification of both geographically and by product.

This allows us to be able to sustain our dividend through varying commodity cycles and across the board. What we have added recently, we have always had some minerals, but very specifically, we have targeted the addition of adding minerals, and the reason why, it fits so nicely with our dividend model, A. B, we were able to find mineral and royalties, frankly, at working interest kind of metrics. We started with the SCOOP/STACK in Oklahoma, where we have a working interest, and so we really knew what was going on on the ground there. So which allows us to go ahead and understand where you want to buy minerals there, that we will participate in. Again, any new drilling, zero cost for us. We then have moved into the Haynesville, which is in Louisiana, which you hear about the LNG exports and how that is growing.

This is the heart of it, from an American point of view. The Haynesville Shale is really where you want to be. We have been able to put together deals, not at auction, not marketed. These are put together from scratch, that we have done through relationships. Like I said, at metrics that are very competitive with working interest. Same thing with our latest deal in the core of the Midland Basin in the Permian. It turns out that it took months of cleaning up, months of getting this thing ready to go. Had it already been polished, had it already been this beautiful, nice package, I think, we certainly believe it would have traded for significantly more than we were able to get it for.

But because we were involved with the people on the ground putting this together from day one, we were able to really put together a really nice deal that we are very proud of, and my colleagues will give you more on that in a bit. I will hand it over to our CFO, Ryan Stash, right now.

Thanks, Kelly. This slide here shows what's happened with our mineral position. As Kelly talked to you on the last slide, back in August of last year is when we really started making a concerted effort to add more minerals and royalties to our portfolio. Historically, we've had very little, almost zero, effectively, mineral and royalty cash flow. Our fiscal year is June 30. For actual fiscal year-end for 2026, we are calling about 10%. On a pro forma basis, when you include the latest Permian Midland Basin deal that we've been talking about, we're around 20% of our cash flow that's coming from mineral royalties. I think, going forward, obviously the assets that we've acquired on the mineral side are in active basins, some of the best basins in the U.S., like I said, SCOOP, STACK, Haynesville, and Permian.

Those are going to be growing over time, and so we could definitely see this 20% number growing over time. More importantly, it really helps us maintain and really increase our margins, right? I mean, the cost from the royalty side is so much less than a general working interest. You should see our EBITDA margins go up over time as well. The next slide, I think this is a good illustration to show the U.S. slide that Kelly showed of where our assets are, and this is the outcome of it, right? We wanted to intentionally diversify our asset base both by commodity and area, and we think we've done a really good job here.

You look at it on a revenue basis, just given the way that oil trades relative to gas, we are a little bit more weighted on the oil and liquid side on a revenue basis, but on a reserve, really, and production basis, we're much more balanced, right? We're about, call it a production basis, about 55% gas, and the rest oil and liquids, and reserves look very similar. Our assets, no one asset dominates our reserves. We have a good balance of oil, gas, and geography throughout the U.S. and all of our asset base. Next one. Obviously our overall strategy is to maximize shareholder return, right?

To do this, we have to continue to grow our asset base, right, both organically and inorganically, through acquisition and organic growth through the mineral and royalty platform that we have where operators are going to drill, where we don't have to pay the capital. We also have some areas where we can grow organically, where we have some control over it. In the SCOOP/STACK, we have some non-op working interest positions where operators will send us AFEs that we evaluate. In Chaveroo Field in New Mexico, we have a partnership with PEDEVCO where we jointly are developing a field, and we have much more control over when to drill it and how we want to grow that asset base. Also, obviously returning capital is a big part of our strategy, as Kelly mentioned. We do pay a dividend.

We have done share buybacks in the past, and we will look to do in the future, more opportunistic, and obviously want to maintain a strong balance sheet to minimize dilution and really maximize our per share returns. On the dividend side, I think this is a good illustration of the history of the dividend. I mean, the biggest thing you can see, obviously, we've been paying one since December of 2013, so we've been paying dividend for a long time. You can see that the dividend has varied a little bit, really more with commodity prices. Back pre-2020, we were pretty much just oil assets. We had Delhi and really only got Hamilton Dome asset, which is also oil, in 2019. You can see the dividend sort of tracks with WTI when you head back in 2015 with the OPEC shale war when prices dropped.

We obviously lowered the dividend a little bit, protected the balance sheet, raised it as oil went back up, and then obviously COVID was in that 2020 period, and we gradually raised the dividend as prices have recovered. But the thing I'd point you to post-2020 is, given that we're much more diversified on commodity, you'll see oil and gas move independently, but we can still maintain the dividend just given the diversified nature of the portfolio. Obviously, acquisitions are a big part of our strategy, and we think we've done a pretty good job, but we went ahead and ran the data too, just to show you guys exactly what we've been able to accomplish. This includes all of our acquisitions up until the Permian. Does not include the Permian royalties recently here.