Evolution Petroleum Corp. shares fell 10.2% in pre-market trading after the company priced a $12 million public offering at a discount to fund an acquisition in the Permian Basin.
The underwritten offering consists of 3.7 million common shares priced at $3.25 each, a roughly 15% discount to the prior session's close. Gross proceeds before underwriting discounts and expenses are expected to reach approximately $12 million. Underwriters were granted a 30-day option to purchase up to an additional 555,000 shares at the same price.
The equity raise follows a broader market trend of caution, with the S&P 500 largely flat and the Nasdaq modestly lower. Analyst sentiment heading into Wednesday's session was subdued, with at least one Wall Street firm having recently reduced its price target on the shares amid lower commodity price benchmarks.
The proceeds will partially finance Evolution Petroleum's planned acquisition of oil and natural gas mineral and royalty interests in the Midland Basin of the Permian Basin for approximately $16 million. The transaction covers roughly 3,420 net royalty acres across five Texas counties and includes royalties on hundreds of producing wells. The acquisition has an effective date of August 1, 2026, with closing expected on or around August 21, 2026.
Evolution Petroleum's stock had already declined nearly 9% in after-hours trading following the announcement, pushing shares toward the lower end of their 52-week range of $3.19.
