Evolution Petroleum’s Big Rebound Comes With One Familiar Catch The oil industry is no stranger to wild swings in profitability, but Evolution Petroleum Corporation's (EPM) recent earnings call has left investors puzzled.
On the surface, the company's fiscal fourth quarter numbers look promising: revenue jumped 20% sequentially to $24. 2 million, and adjusted EBITDA more than doubled to $6. 5 million.
However, a closer examination reveals that this rebound is largely driven by oil prices. NGL prices realized $32. 49 per barrel in the fourth quarter, up 27% year over year.