What Evolution Petroleum Corp. told the SEC could break it.

Evolution's Senior Secured Credit Facility (borrowing base $65M, $37.5M drawn) is secured by substantially all its oil & gas properties and subject to lender borrowing-base redeterminations tied to property values.

“The Senior Secured Credit Facility is secured by substantially all of our oil and natural gas properties and matures on June 30, 2028.”

The Inflation Reduction Act created incentives discouraging oil & gas use, including a methane Waste Emissions Charge (statutorily $900/ton 2024, $1,200/ton 2025) on excess emissions, plus broader tariff/trade/energy regulation risk.

“By statute, the charge would have been $900 per metric ton of methane for 2024, $1,200 per metric ton for 2025, and”

Evolution's revenue depends entirely on oil, natural gas and NGL prices set by a global market driven by regulation, OPEC, geopolitics and demand — all beyond its control.

“The oil and natural gas industry is a global market impacted by many factors, such as government regulations, particularly in the areas of tariffs, trade sanctions, taxation, energy, climate change and the environment, geopolitical instability and armed conflicts (including between Russia and Ukraine and in the Middle East between Israel and Gaza), demand in Asian and European markets, and the extent to which members of OPEC and other”

As a non-operator, Evolution relies on third-party field operators, oilfield-service vendors, material providers and carriers it does not control, generally without long-term agreements — limiting its control over production and costs.

“Our business plan to develop or redevelop oil and natural gas resources requires third-party oilfield service vendors and various material providers, which we do not control. We also rely on third-party carriers for the transportation and distribution of our oil and natural gas production.”