Evolution Petroleum Corp (NYSEAMERICAN:EPM) stock rallies 18.11% (As on September 14, 11:13:30 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 22 has reported the increased production in the current quarter by 34% over the third quarter ended March 31, 2022 (the “prior quarter”) to an average of 7,451 net barrels of oil equivalent per day (“BOEPD”). The company produced 5,953 BOEPD in fiscal year 2022, up 145% from fiscal year 2021 and natural gas sales has contributed 44% of revenues during current quarter. Driving the increase in oil production from 1,811 BOPD in the prior quarter was the closing of the Jonah Field Acquisition on April 1, 2022. Partially offsetting the overall increase was natural decline in the Delhi Field, as well as extended downtime at Evolution’s Williston Basin properties in April 2022 due to severe winter weather. Net natural gas production increased 67% from 15,878 MCFPD in the prior quarter due to the Jonah Field Acquisition. NGL production increased from 1,121 BOEPD in the prior quarter due to the Jonah Field Acquisition. The overall increase was partially offset by extended downtime at Delhi’s NGL plant in April 2022 due to turbine issues.

Moreover, Evolution reported $42.0 million of total revenue for the fourth quarter of fiscal 2022, which was a 64% increase from the prior quarter. Oil revenue grew to $18.4 million from the prior quarter due to a 6% increase in sales volumes and a 17% increase in realized commodity price. Natural gas revenue increased three-fold to $18.5 million from the prior quarter primarily due to the Jonah Field Acquisition and an 80% increase in realized commodity pricing. NGL revenue increased to $5.2 million due to the Jonah Field Acquisition, which was partially offset by decreased volumes at Delhi due to downtime at the NGL plant in April 2022. The average realized price per BOE increased 21% to $61.98 per BOE compared to $51.17 per BOE in the prior quarter. This increase was primarily due to an increase in realized crude oil and natural prices.  Adjusted net income, excluding selected items, was $15.1 million, or $0.44 per diluted share, compared to $7.7 million, or $0.23 per diluted share, in the prior quarter. Adjusted EBITDA increased 76% to $21.7 million for the current quarter from $12.3 million in the prior quarter. On a per BOE basis, Adjusted EBITDA increased from $24.58 per BOE in the prior quarter to $31.96 per BOE for the current quarter.

Additionally,  Evolution has declared an increased quarterly cash dividend of $0.12 per common share for the fiscal 2023 first quarter, announced a $25 million share repurchase program, and provided its expected capital spending outlook for the fiscal year ending June 30, 2023.