Evolution Petroleum (EPM) risk factors, FY2025 10-K

Risks Related to Our Business

1. 01A substantial or extended decline in oil, natural gas and NGL prices may adversely affect our business, financial condition, results of operations and our ability to meet our capital expenditure obligations and financial commitments
2. 02Our existing developed oil, natural gas and NGL production will decline; we may be unable to acquire or develop the additional oil and natural gas reserves that are required in order to sustain our production and business operations21% rewritten
3. 03The types of resources we focus on have substantial operational risks20% rewritten
4. 04We have limited control over the activities on properties we do not operate
5. 05We will be subject to risks in connection with acquisitions
6. 06Our inability to complete acquisitions at our historical rate and at appropriate prices that support our long-term strategy could negatively impact our growth rate and stock price
7. 07We may encounter difficulties integrating newly acquired oil and natural gas properties or businesses
8. 08Oil and natural gas development, re-completion of wells from one reservoir to another reservoir, restoring wells to production, and drilling and completing new wells are speculative activities which involve numerous risks and substantial uncertain costs
9. 09Our oil and natural gas reserves are only estimates and may prove to be inaccurate
10. 10Regulatory and accounting requirements may require substantial reductions in reporting proven reserves
11. 11Our derivative activities could result in financial losses or could reduce our income
12. 12Operations to develop and produce oil and natural gas reserves and our growth plans require significant amounts of capital and our ability to access additional capital at acceptable costs is important if we are to fund our development, grow our reserves and production and execute our growth plans57% rewritten
13. 13Government regulation and liability for oil and natural gas operations and environmental matters may adversely affect our business and results of operations
14. 14The risks arising out of the threat of climate change, including transition risks and physical risks, may adversely affect our business and results of operations
15. 15Litigation risks are also increasing for oil and natural gas companies. A number of suits alleging, among other things, that oil and natural gas companies created public nuisances by producing fuels that contributed to climate change have been brought in state or federal court
16. 16Poor general economic, business, or industry conditions may have a material adverse effect on our results of operations, liquidity, financial condition and access to capital30% rewritten
17. 17Events outside of our control, including a pandemic or broad outbreak of an infectious disease, such as the global outbreak of a novel strain of the coronavirus (“COVID-19”), may materially adversely affect our business31% rewritten
18. 18Our business could be negatively affected by security threats. A cyber-attack or similar incident could occur and result in information theft, data corruption, operational disruption, damage to our reputation, and/or financial loss
19. 19Our insurance may not protect us against all of the operating risks to which our business is exposed
20. 20The loss of key personnel could adversely affect us
21. 21Oilfield service and materials prices may increase, and the availability of such services and materials may be inadequate to meet our needs
22. 22We may assume risks and financial responsibility for drilling and completing wells at our Chaveroo Field and Williston Basin properties if our third-party operator declines to drill wells and it or other joint interest owners elect not to participate
23. 23We cannot market the oil and natural gas that we produce without the assistance of third-parties
24. 24We face strong competition from larger oil and natural gas companies
25. 25We have been, and in the future may become, involved in legal proceedings related to our properties or operations and, as a result, may incur substantial costs in connection with those proceedings
26. 26Ownership of our oil and natural gas production and mineral rights depends on good title to our property22% rewritten
27. 27Unanticipated changes in effective tax rates or laws or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our financial condition and results of operations35% rewritten
28. 28Our stock price has been and may continue to be volatile
29. 29Significant ownership of our common stock is concentrated in a small number of shareholders who may be able to affect the outcome of the election of our directors and all other matters submitted to our stockholders for approval28% rewritten
30. 30The market for our common stock is limited and may not provide adequate liquidity
31. 31If securities or industry analysts do not publish research reports about our business, or if they downgrade our stock, the price of our common stock could decline
32. 32There may be future sales or issuances of our common stock, which will dilute the ownership interests of stockholders and may adversely affect the market price of our common stock
33. 33Investor sentiment towards climate change, fossil fuels, sustainability, and other ESG matters could adversely affect our business and our stock price73% rewritten