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EPSN

Epsilon EnergyC
Nasdaq / Energy
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2026-06-02
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2026-05-20
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Earnings documents stored for EPSN.

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Investor releaseQuarter not tagged2026-05-20

Epsilon Announces 2026 AGM Results

GlobeNewswire

HOUSTON, May 20, 2026 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) is pleased to announce that all the nominees listed in its Proxy Statement, Schedule 14A dated on April 17, 2026, were elected as directors of Epsilon, until the next annual meeting of shareholders. The detailed results of the vote at the annual shareholders meeting held on Wednesday, May 20, 2026 are set out below. At the meeting, the number of directors was set at eight and each of the following eight nominees proposed by management was elected as a director of Epsilon. The Company’s shareholders approved the re-appointment of BDO USA, LLP as auditors for the year ending December 31, 2026, voted in favor of the compensation paid to the Company’s named executive officers during 2025 through a non-binding advisory vote, and voted in favor of the amended 2020 Equity Incentive Plan. About Epsilon Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets across the Appalachian, Powder River, Permian, and Western Canadian Sedimentary basins. Contact Information: 281-670-0002 Jason StabellChief Executive [email protected] Andrew WilliamsonChief Financial [email protected]

Investor releaseQuarter not tagged2026-05-15

Epsilon Energy Ltd (EPSN) Q1 2026 Earnings Call Highlights: Strategic Moves and Production ...

GuruFocus.com

This article first appeared on GuruFocus. CapEx: Just under $5 million spent through March, primarily for drilling and facilities work. Adjusted Earnings Per Share: $0.29 per share for the quarter, adjusting for non-cash hedge losses. Debt Reduction: Paid down $10 million, reducing outstanding debt to $40.5 million. Asset Sales: Sold overriding royalty interest for $3.9 million and office building under contract for $3 million. Net CapEx for Niobrara Wells: $6.8 million for completion of two wells. Gross CapEx for Parkman Development: Estimated at $23 million for a three-well program. Production Forecast: 475 BOE per day for Niobrara wells in July; 1,060 BOE per day for Parkman wells in December. Marcellus Development: $3.8 million CapEx pre-approved, with expected production of 6.5 million cubic feet per day in December. Warning! GuruFocus has detected 3 Warning Signs with EPSN. Is EPSN fairly valued? Test your thesis with our free DCF calculator. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Epsilon Energy Ltd (NASDAQ:EPSN) is on track with its development plan, expecting meaningful production growth year over year, particularly in the Permian and Powder River basins. The company has successfully completed its ninth well in the Permian project and is set to bring it online in the second quarter, indicating progress in its operations. Epsilon Energy Ltd (NASDAQ:EPSN) has taken steps to strengthen its balance sheet, including debt reduction and monetizing non-core assets at attractive values. The company has a disciplined approach to maintaining a strong balance sheet, with a target leverage profile of 1 to 1.5 times net debt to adjusted EBITDA. Epsilon Energy Ltd (NASDAQ:EPSN) is actively working on production enhancement and cost improvement initiatives, such as optimizing gas lift compressors and converting wells to rod pump to increase production rates and lower costs. Earnings for the quarter were materially impacted by unrealized or non-cash hedge losses due to dramatic moves in oil prices, causing a mismatch on the P&L. The company faces challenges with rig availability and increasing rig rates, which could impact the timing and cost of its drilling operations. Epsilon Energy Ltd (NASDAQ:EPSN) has worked through much of the low-hanging fruit of non-core asset divestiture...

Investor releaseQuarter not tagged2026-05-15

Epsilon Energy Q1 Earnings Call Highlights

MarketBeat

Interested in Epsilon Energy Ltd.? Here are five stocks we like better. Epsilon Energy said it remains on track with its 2026 development plan, with management expecting meaningful year-over-year production growth as oil-weighted projects in the Permian and Powder River basins ramp through the second half of the year. First-quarter earnings were weighed down by unrealized hedge losses, though the company said its adjusted result was $0.29 per share. Epsilon also reduced debt by $10 million since the Powder River acquisition, bringing total debt to $40.5 million. The company is accelerating activity in the Powder River Basin and advancing key projects elsewhere, including completions on two Niobrara wells, a three-well Parkman program, a 3-plus-mile Barnett well in the Permian, and five Marcellus wells slated to come online later this year. Epsilon Energy (NASDAQ:EPSN) said it remains on track with its 2026 development plan after a first quarter marked by stronger gas pricing, a full-quarter contribution from newly acquired Powder River Basin assets and continued investment in oil-weighted projects. Chief Executive Officer Jason Stabell told investors the company is “in execution mode” and expects to deliver “meaningful production growth year-over-year,” with an oil-weighted ramp in the Permian and Powder River basins beginning in the second quarter and increasing through the second half of the year. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? Stabell said the company’s ninth well in its Permian project, its first 3-plus-mile Barnett well, is expected to come online in the second quarter. In the Powder River Basin, two Niobrara drilled-but-uncompleted wells acquired in last year’s transaction are scheduled to be completed in June and turned to sales in the third quarter. A three-well Parkman development is expected to follow in the fourth quarter. Chief Financial Officer Andrew Williamson said Epsilon spent just under $5 million in capital expenditures through March, primarily tied to participation in drilling the 3-mile Barnett well in Ector County and facilities work ahead of Parkman drilling in Campbell County, Wyoming. → MP Materials Is Quietly Building a Rare Earth Powerhouse Williamson said the company expects to invest at a higher pace over the remaining three quarters of the year to support the oil-weighted growth outlined...

Investor releaseQuarter not tagged2026-05-14

Epsilon Announces First Quarter 2026 Results

GlobeNewswire

HOUSTON, May 13, 2026 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2026 financial and operating results. Q1 2026 Highlights: Jason Stabell, Epsilon’s Chief Executive Officer, commented, “So far in 2026, we are executing on the initial stages of our development program outlined in the 2025 year-end release and are expecting to bring meaningful production online starting in the second quarter. In the Permian, three gross 3-mile Barnett wells are expected to come online this year, with the first in the second quarter. In the Powder River Basin, two gross Niobrara DUCs are scheduled for completion and are expected to be online early in the third quarter. We have also begun facilities work on the three gross Parkman wells scheduled for development this summer. We are currently working to secure a rig and expect first production in the fourth quarter. We have also made recent efforts to monetize non-core assets in the portfolio with the sale of a Marcellus override package and the pending sale of the office building we acquired in the Peak transaction. Together, these are expected to raise $6.7 million in the second quarter, without a material impact on results going forward. Strong natural gas pricing in the Marcellus in the first few months of the year and a full quarter of contribution from the acquired PRB production drove quarter-over-quarter gains in revenue and cash flow. Importantly, a significant portion of our expected new volumes this year are oil-weighted and will come online into what is currently a strong oil price environment in the second half of the year. The planned development which is underway and attractive oil pricing should allow the Company to deliver strong operational and financial performance as the year progresses." Quarter Details: Epsilon’s capital expenditures were $4.9 million for the quarter ended March 31, 2026. The Company participated in the drilling of 1 gross (0.25 net) well in Texas, the ninth well in the project and the first 3-mile Barnett well. Completion operations on that well are currently underway. The Company also began constructing facilities in preparation for Parkman drilling activity this summer, where the plan is to a drill a three well Parkman pad in Campbell County, Wyoming, with production expected online in the fourth quarter. The Company als...

TranscriptFY2026 Q12026-05-14

FY2026 Q1 earnings call transcript

Earnings source - 47 paragraphs
Operator

Welcome to the Epsilon Energy First Quarter 2026 earnings conference call. Today, all participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note that today's event is being recorded. I would now like to turn the conference over to Andrew Williamson, the company's CFO. Please go ahead.

Andrew Williamson

Thank you, operator. On behalf of the management team, I would like to welcome all of you to today's conference call to review Epsilon's 1st quarter of 2026 financial and operational results. Before we begin, I would like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause Epsilon's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements. Today's call may also contain certain non-GAAP financial measures. Please refer to the press release that we issued yesterday for disclosures on forward-looking statements and reconciliations of non-GAAP measures. With that, I would like to turn the call over to Jason Stabell, our Chief Executive Officer.

Jason Stabell

Thank you, Andrew. Good morning, everyone. Joining me today are Andrew Williamson, our CFO, and Henry Clanton, COO. We'll be available for questions after our remarks. We're off to a solid start in 2026 and remain firmly on track with the development plan we outlined earlier this year. The key message today is simple: We are in execution mode, and we expect to deliver meaningful production growth year-over-year, with the oil-weighted ramp in the Permian and Powder River basins beginning in the second quarter and building through the back half of the year. Across the portfolio, activity is progressing as planned. In the Permian, our ninth well in the project and our first 3-plus mile Barnett well is expected online in the second quarter.

Jason Stabell

In the Powder River Basin, 2 Niobrara DUCs, which we acquired in last year's acquisition, will be completed in June and turn to sales in the third quarter, followed by a 3-well Parkman development in the fourth quarter. This activity sets up material oil-weighted production growth in both basins, starting in the second half of the year and carrying into 2027. These new volumes will have full exposure to higher oil prices. From a financial standpoint, the first quarter reflects a combination of strong gas pricing and a full quarter of contribution from our Powder River Basin assets. We have also recently taken steps during the second quarter to strengthen the balance sheet, including further debt reduction and monetizing non-core assets at attractive values. Looking ahead, the path forward is clear. A focus on production growth in our oily assets while maintaining a strong balance sheet.

Jason Stabell

We believe we are well-positioned to deliver a strong year. I'll now turn it over to Andrew and Henry for additional comments.

Andrew Williamson

Thanks, Jason. I'll provide more commentary on the quarter, starting with CapEx. We spent just under $5 million through March, primarily through our participation in the drilling of the 3-mile Barnett Well in Ector County and some facilities work preparing for Parkman drilling this summer on our Campbell County position in the PRB. We plan to invest at a higher clip over the next 3 quarters of the year, driving the oil-weighted growth Jason mentioned. Those full-year investment plans are right-sized to maintain our target leverage profile of 1x-1.5x net debt to adjusted EBITDA. We expect unit operating costs and G&A to trend down over the remainder of the year as we add incremental volumes and roll off some of the integration costs associated with last year's Peak acquisition. I provided some additional color there in the press release issued yesterday.

Andrew Williamson

Earnings for the quarter were materially impacted by unrealized or non-cash hedge losses, driven by the dramatic move in oil prices during the quarter. The revenue impact of higher pricing will primarily fall in subsequent quarters, a bit of a mismatch on the P&L. Adjusting for that item, we earned $0.29 per share for the quarter. Since closing the acquisition in November of last year, we've paid down the outstanding debt balance by $10 million to $40.5 million currently. As mentioned, we have a disciplined approach to the balance sheet. We've made several moves to help fund our investment plans by selling non-core assets. Earlier this month, we sold an overriding royalty interest package in PA for $3.9 million to a private buyer, which was approximately 6 times expected next 12 months cash flow from those assets.

Andrew Williamson

The overrides accounted for just 1.5% of the company's upstream revenue over the last four quarters. We also have the office building we acquired from Peak under contract for $3 million, with closing expected in the next 30 days. Now to Henry to provide more detail on the operations side.

Henry Clanton

Thank you, Andrew, and good morning to everyone. Exciting times for Epsilon as we continue the integration of our newly acquired operating assets in the Powder River Basin in Wyoming. We have several initiatives underway, including both capital projects and optimization programs. Completion of two 2-mile Niobrara laterals are underway, with pressure pumping services scheduled for the first week of next month. The facility construction has been completed and ready for service following flow back operations. The company has a combined 0.7 net revenue interest in the two wells with a type curve-based pre-completion peak net production rate estimated to be 475 BOE per day in July. Total net CapEx for the completion of the two wells is $6.8 million. Drilling-wise, first up in our development of the Parkman formation inventory is a three-well development program in Campbell County with high working interest.

Henry Clanton

Well planning has been completed with drilling rig and service providers being engaged in anticipation of an August spud. Gross CapEx is estimated to be $23 million. Similar to the 2 Niobrara wells mentioned above, pre-construction of the production facilities has been completed and ready for service. Completion operations are planned for October, with forecasted peak rates of 1,060 BOE per day in December. In preparation for our 2027 development of the highly attractive Parkman inventory in the Einot unit in Converse County, we are finalizing the facility design and beginning construction planning for a multi-well water supply facility in the unit. This $3.5 million CapEx facility will include water supply with surface impoundment size to handle the planned 6 well development in the unit next year.

Henry Clanton

This facility will ensure cost-efficient and timely development of our near-term plans in the unit, then serve multiple well programs thereafter. Also in Wyoming, the operating team has been diligently working on several production enhancement and cost improvement initiatives worthy of highlighting. First, a review of the 40-plus rental gas lift compressors in use today have identified multiple wells greater than 10 that are candidates for downsizing the compressors, capturing significant monthly savings, approximately 35%. They will be replaced with brand new units that are fit for purpose in this application. Current productivity of these wells will not be impacted. Second, several remaining gas lifted wells have been identified for conversion to rod pump. Based upon results of the first pilot test earlier this year, conversion to rod pump will increase daily production rates on average greater than 10% per well and also lower lifting cost.

Henry Clanton

Lastly, building from a detailed review of the production chemical program for every operated well, optimization of the program is underway with reductions to per unit treatment costs expected to begin next month. As previously reported in our Permian Basin project in the Barnett play, discussions with the new operator confirmed transition from 2-mile to 3-mile laterals, including 4 wells per pad development. These locations will be along a development corridor, including the design and pre-drilling build-out of a multi-well source and production facility. We are fully aligned with these program changes and expect significant capital efficiencies as a result. 2026 activity to date includes the recently drilled and concluded 3-plus mile Barnett lateral. Drill out operations will commence in a few days with flow back to follow. Net forecasted production from this new well is 226 BOE per day.

Henry Clanton

Two additional 3-mile laterals offsetting this well are planned for later this year. Similar initial production rates are forecasted for these two wells. Additionally, appraisal of a second interval in the Woodford Shale has been proposed by the new operator. This Woodford test is set to spud this month. While the company has elected to sell the well bore only interest in this well proposal, we remain ready to invest in future wells after the formation has been better delineated. A successful result would increase our inventory meaningfully. Company has a 25% working interest across the project. In the Marcellus, the operator has completed drilling of the scheduled five wells, 0.4 net to Epsilon. Completion operations are planned for the second half of this year. First production from this development is scheduled in December and forecasted to add 6.5 million cubic foot a day rate.

Henry Clanton

$3.8 million in CapEx was pre-approved for this program with drilling costs below AFE. 4 of the new drills will gather through the Auburn system and are forecasted to increase throughput of the midstream system by approximately 86 million cubic foot a day upon initial completion. Thank you. Now I'll turn it back over to Jason.

Jason Stabell

Thanks, guys. Operator, we can now open the lines for questions.

Operator

Thank you. We will now begin the question and answer session. Today's first question comes from Anthony Perla with Punch & Associates. Please proceed.

Anthony Perala

Hey, good morning, guys. Thanks for taking the question.

Jason Stabell

Hey, Anthony. Thanks for joining.

Anthony Perala

Yeah. First question, just I'd be curious, some of the discussions among you guys at the board level. You've seen some operators respond to the higher oil prices that we've seen persist and as the back half end of the curves raised a little bit here since the Q4 call. Your guys' development schedule definitely is already busy as is, but just curious if there are any discussions and kinda what the tenor of them are like about potentially stepping on the gas a little bit more. Besides capital and leverage, maybe what other impediments there might be to that if the opportunity did arise.

Jason Stabell

Great. Thanks for the question, Anthony. Before I dive into that, I think there's one point we'd like to clarify on the prepared remarks, and it relates to the Parkman CapEx that we had. I think Henry quoted $23 million of gross CapEx, and then he quoted a rate of, close to 1,100 BOE per day on the rate. We're actually looking, as we always do, at the possibility of selling down some of that 95% working interest. Henry, you wanna talk about the rate, what it assumes now and.

Henry Clanton

The $23 million is our current ownership in what would be the capital expectations for that three well development. Should we keep all of that interest? The Peak rates are estimated to be 1,600 barrels a day equivalent, not the lower 1,060 as was recorded in our comments.

Jason Stabell

Yeah, that $1,060 assumes about a 33% sell down. We're looking at that option, something in the 20%-30% sell down. If it's attractive, we might do it. If not, I think we'd also be happy to keep the higher figure there. Thought that was worthwhile to clarify. All right, now to your question. Yeah, there the Powder seems to be coming alive, maybe like a number of basins with the oil price move that we've seen. We've now been active there for 6 months, roughly since the closing of the transaction. We've had a number of conversations with offset operators.

Jason Stabell

There are roughly 13 At any given time, there have been 12-14 rigs running in the basin, and we think there's probably room to add 1 or 2 more based on some conversations that we've had. One of the ways that, yeah, the gas pedal could be hit a little bit harder for us would be to partner on some of the acreage in particularly in the shales, in IO and ORRI interests that we have in offset leasehold. We've had some preliminary discussions with a number of operators about ways, things that we might not be getting to in our 5-year development plan until 3, 4, 5, even beyond that window. I think kinda stay tuned, Anthony, going forward.

Jason Stabell

There could be some opportunities either for us to do drill to earn deals and/or partner with some other operators on some opportunities. Don't see anything on the imminent horizon, but we're working all of those options, and we think there's a number of ways we could potentially provide incremental upside to the base CapEx plan that we have. Hopefully that answers your question.

Anthony Perala

Yeah. Yeah, it absolutely does. I guess one follow into that, it's more probably from naivete on my side, but is there, kind of, when you're looking at securing rig availability for the 3-well pad in the Parkman this year, is it tougher and kind of are the rates higher given increased activity, or is it pretty kind of run-of-the-mill transaction right now?

Jason Stabell

Henry, you wanna.

Henry Clanton

Yeah. The rig availability is tightening up. We've seen that in our conversations with probably three different providers. We do have access to a couple of rigs that are workable for us, that we're working now to fit with the timing of the development. Rig rates are creeping up, and that's to be expected. Yes.

Anthony Perala

Okay.

Jason Stabell

But, but we feel pretty- Okay.

Jason Stabell

We feel confident we're gonna find a rig that can do the job and do it cost efficiently and deliver those wellbores on time. Right now, as we said, we're targeting that August spud date, and don't see an issue with that.

Anthony Perala

Okay. On the flip side of that, on funding some of these capital projects, it seems like you've maybe worked through more of the low-hanging fruit of non-core assets to divest. Just curious how you look at the broader portfolio and other areas you might explore similar to the Marcellus overriding royalty interest that you sold in May.

Jason Stabell

Yeah, we're always looking at ways to optimize. I think that override, we thought had the potential for some pretty strong interest based on conversations that we had. We market tested it with and got a good result on that deal. As you know, we also sold the Anadarko position at the end of last year. I think the portfolio is in a pretty good place. The trimming would probably be, yeah, there is a pretty active AFE market, you know, so do we find an attractive opportunity where we might sell down a small piece of some of our working interest in some of the program going forward? I think that'll be opportunistic, kind of depending on the appetite that we see, but that is a possibility.

Jason Stabell

I think it would be consistent kind of with what we've been doing, little small things around the edges.

Anthony Perala

Okay. Then you highlighted in the PR and in the prepared commentary just about getting some scale on the fixed costs on the operating side. I think if you do back the envelope math before this was roughly $12 per BOE on the LOE expense. As you get greater scale heading into 2027 and maybe beyond, just what expectations do you guys have on the cost side?

Andrew Williamson

Yeah, Anthony, this is Andrew. Yeah, the big driver for the higher unit OpEx in the first quarter was full contribution of the PRB assets. You know, that's all PDP production. They've not had new volumes come online there for over two years. You know, that fixed cost element is overrepresented in that production. As we bring on incremental volumes in the Powder, we expect that to go from where we are now in the high 10s to low 20s per BOE in the Powder for that to come into the mid-10s. Where that washes out total company on a, on a BOE basis, you know, we should see several dollars of drop there. Concentrated in the fourth quarter this year when we bring on the volumes in the Frontal Pit.

Anthony Perala

That's great. Thanks, guys. I'll jump back in the queue.

Jason Stabell

Thanks, Anthony.

Operator

The next question is from Jeff Robertson with Water Tower Research. Please proceed.

Jeff Robertson

Thank you. Good morning. A question on the Powder River Basin. Are there any other infrastructure issues or needs that you foresee Epsilon needing to be involved with and fund other than the water facilities that you outlined?

Jason Stabell

In Converse County, which is where we are describing this i-naught unit for development next year, there is some gas takeaway development that will be required beyond what's there. We'll have the option to participate in that should we want to or just have the gatherers come to us. Yes, there'll be some gas takeaway, but the majority of the cost for us will be related to, you know, supplying these completions and the frack waters necessary to do that. That's what our focus of that design of that facility was for.

Jeff Robertson

Thank you. In the Permian Basin on the Woodford test that you talked about, assuming that well is a success, how much production history would you like to see before Epsilon would elect to participate in a follow-up well?

Jason Stabell

Yeah, I think it's not just it's around, can they land in the Woodford? You know, what's the costs there? Have they worked out well design? Then obviously, what kind of rate it delivers over time. Hard to say exactly, Jeff, it's probably at least 180 days of production to get a real good sense of what the productivity looks like there.

Jeff Robertson

Thank you for taking my questions.

Jason Stabell

Sure.

Operator

This does conclude our question and answer session for today. I would now like to turn the conference back over to Jason Stabell, CEO, for any closing remarks.

Jason Stabell

Yeah. Thank you, Chris. Appreciate everybody taking the time to join us today. Thanks for your interest and support of the company. As always, please reach out to us in Houston if you have additional comments or questions. If not, have a great day. Thank you for joining.

Operator

The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

Investor releaseQuarter not tagged2026-04-23

Epsilon Energy Ltd. Schedules First Quarter 2026 Earnings Release and Conference Call

GlobeNewswire

HOUSTON, April 23, 2026 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced that it will issue its first quarter 2026 earnings release on Wednesday, May 13, 2026 after the market close and host a conference call to discuss its financial and operating results on Thursday, May 14, 2026 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Interested parties in the United States and Canada may participate toll-free by dialing (833) 816-1385. International parties may participate by dialing (412) 317-0478. Participants should ask to be joined to the “Epsilon Energy First Quarter 2026 Earnings Conference Call.” A webcast can be viewed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=vCctDJ0X. A webcast replay will be available on the Company’s website (www.epsilonenergyltd.com) following the call. About Epsilon Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets across the Appalachian, Powder River, Permian, and Western Canadian Sedimentary basins. Contact Information: 281-670-0002 Jason Stabell Chief Executive Officer [email protected] Andrew Williamson Chief Financial Officer [email protected]

Investor releaseQuarter not tagged2026-03-26

Epsilon Energy Ltd. Q4 2025 Earnings Call Summary

Moby

Achieved 75% adjusted EBITDA growth and 54% production growth in 2025, driven by higher volumes and improved Marcellus pricing. Transformed the asset base through the Peak acquisition, adding over 100 net high-rate-of-return drilling locations in the Powder River Basin (PRB). Realized significant short-term upside in Pennsylvania gas pricing during January 2026, generating $4.8 million in net sales in a single week. Strategic exit from Oklahoma assets generated over 8x the expected 2026 cash flow when accounting for cash proceeds and tax savings. Management is actively 'clearing the decks' by divesting non-core assets, including an Oklahoma position and a Colorado office building, to focus capital on high-return inventory. Operational focus in the PRB is centered on the Parkman formation, which offers superior IRRs compared to the Niobrara and Mowry formations at current prices. The company maintains a conservative financial profile, targeting an average annual leverage ratio below 1.5x while sustaining a fixed dividend. Capital allocation over the next two years is projected to be 50% focused on the Powder River Basin, with the remainder split between the Marcellus and Barnett. Anticipates accelerated Marcellus development in 2027 and 2028, which is expected to drive increased midstream throughput and capital-efficient cash flow. Development in the Barnett asset is transitioning to three-mile laterals and centralized facilities to drive down unit costs and improve returns. Management expects returns on Niobrara and Mowry inventory to improve as they scale operations and extend lateral lengths to match industry standards of 3 to 3.5 miles. Planned infrastructure investments, including a water supply facility in Wyoming, are designed to support a 12-well Parkman program and reduce future development costs. Recorded $6.9 million in transaction costs related to the Peak acquisition, though half were pre-existing Peak expenses adjusted for in the closing consideration. Recognized impairments in Canada and New Mexico driven by a sub-$60 WTI oil strip requirement and a frac hit impacting New Mexico reserves. Identified well underperformance in Canada, leading to a decision that the area currently does not compete for capital despite its long-term option value. Resolved BLM permitting issues in Converse County around the time of the Peak closing, securing seven app...

Investor releaseQuarter not tagged2026-03-26

Epsilon Energy Q4 Earnings Call Highlights

MarketBeat

Epsilon delivered a standout 2025 with Adjusted EBITDA up 75%, production up 54% year‑over‑year, and proved reserves growing to 156 Bcf equivalent (69% growth in PDP and 86% increase in total proved), driven by development drilling and the late‑year Peak acquisition. The Nov. 14, 2025 Peak deal resolved BLM permitting and added Powder River Basin inventory; management has seven approved permits and plans 2026 activity including completion of two 2‑mile Niobrara wells (~$6M net CapEx) in Q2 and three 2‑mile Parkman laterals (~$22M net CapEx) with production expected in Q4. Management is prioritizing liquidity and capital returns—using asset sales to pay down debt (including $5M in Q1), marketing a Marcellus royalty package, selling a Colorado office (under contract for $3M), maintaining the dividend and a buyback program up to 10%—while PDP volumes are ~60% hedged and the company targets leverage below 1.5x. Interested in Epsilon Energy Ltd.? Here are five stocks we like better. Epsilon Energy (NASDAQ:EPSN) management highlighted significant year-over-year growth in 2025 and laid out an expanded multi-basin development plan for 2026 and beyond, following the late-year acquisition of Peak Companies. On the company’s year-end earnings call, executives also discussed capital returns, hedging posture, asset sales designed to boost liquidity, and the evolving economics of its drilling inventory across the Powder River Basin, the Permian Barnett position, and the Marcellus. Chief Executive Officer Jason Stabell said Epsilon delivered “a standout year,” with Adjusted EBITDA up 75% and production up 54% year-over-year. He attributed the company’s step-change in scale to a combination of development drilling and the Peak acquisition, which closed in the fourth quarter. → Macy’s Beats Expectations Again, But Guidance Spooks Investors Stabell said the company achieved 69% growth in proved developed producing reserves and an 86% increase in total proved reserves. Chief Operating Officer Henry Clanton added that total reserves increased to 156 Bcf equivalent, driven primarily by 78 Bcf of additions tied to the Powder River Basin assets acquired in the Peak transaction. Chief Financial Officer Andrew Williamson provided additional detail on the Peak closing, noting it occurred on November 14, 2025, with release of contingent consideration a few days later. He said Bureau o...

Investor releaseQuarter not tagged2026-03-26

Epsilon Energy Ltd (EPSN) Q4 2025 Earnings Call Highlights: Record Growth and Strategic Expansion

GuruFocus.com

This article first appeared on GuruFocus. Adjusted EBITDA Growth: Increased by 75% year-over-year. Production Growth: Increased by 54% year-over-year. Proved Developed Producing Reserves Growth: Increased by 69%. Total Proved Reserves Growth: Increased by 86%. Net Natural Gas Sales: Over $4.8 million in a single week in late January. Transaction Costs from Peak Acquisition: Totaled $6.9 million. Earnings Per Share (EPS): Adjusted to $0.92 per share in 2025. Net CapEx for Niobrara DUCs: Approximately $6 million. Net CapEx for Parkman Wells: Approximately $22 million for three wells. Net CapEx for Barnett Well: Approximately $4 million. Total Reserves: Increased to 156 Bcf equivalent. Warning! GuruFocus has detected 1 Warning Sign with EPSN. Is EPSN fairly valued? Test your thesis with our free DCF calculator. Release Date: March 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Epsilon Energy Ltd (NASDAQ:EPSN) achieved a 75% growth in adjusted EBITDA and a 54% increase in production year-over-year. The acquisition of the Peak companies added over 100 net high rate of return drilling locations and increased total proved reserves by 86%. The company declared its 17th consecutive quarterly dividend and renewed a share buyback program covering up to 10% of shares outstanding. Epsilon realized favorable natural gas pricing in Pennsylvania, generating over $4.8 million in net natural gas sales in a single week. The company is positioned for multiyear organic growth with strong visibility into per share growth in EPS, EBITDA, and production while maintaining a fixed dividend. Epsilon faced transaction costs of $6.9 million from the Peak acquisition, impacting earnings. There were impairments on wellbores in Canada and New Mexico due to sub $60 WTI oil strip and downward reserve revisions. The company experienced well underperformance in Canada, impacting its competitive capital allocation. Epsilon incurred a loss on the sale of Oklahoma assets, although it was offset by cash tax savings. The company is selling an overriding royalty interest package in the Marcellus to increase liquidity, indicating potential cash flow challenges. Q: Can you provide insights on the returns and IRRs for the Peak acquisition under current oil price assumptions, considering the forward curve is in the mid-70s for the back half...

Investor releaseQuarter not tagged2026-03-26

Epsilon Energy (EPSN) Q4 2025 Earnings Transcript

Motley Fool

Image source: The Motley Fool. Wednesday, March 25, 2026 at 11 a.m. ET Chief Executive Officer — Jason P. Stabell Chief Financial Officer — Andrew Williamson Chief Operating Officer — Henry Nelson Clanton Need a quote from a Motley Fool analyst? Email [email protected] Epsilon Energy Ltd. delivered a standout year, growing adjusted EBITDA 75% and production 54% year over year. In the fourth quarter, we closed the acquisition of the Peak companies, bringing us new production, more than 100 net high rate-of-return drilling locations, largely held-by-production undeveloped acreage, and a highly experienced Powder River Basin operating team. Through a combination of development drilling and the Peak acquisition, we achieved 69% growth in proved developed producing reserves and an 86% increase in total proved reserves. The Board recently declared our 17th consecutive quarterly dividend and renewed the share buyback program covering up to 10% of shares outstanding, underscoring our commitment to returning capital to shareholders. Looking at 2026 to date, our portfolio is performing exceptionally well. In late January, we realized extremely favorable gas pricing in Pennsylvania, generating over $4,800,000 in net natural gas sales in a single week, including sales one day at over $66 per MMBtu. Our current PDP production is approximately 60% hedged for the rest of the year, but importantly, the incremental oil volumes we expect to add through the drill bit starting in the second quarter are unhedged, providing meaningful upside exposure. I would like to add that our past commentary on the acquired Powder River Basin assets has focused on the very attractive high rate-of-return Parkman inventory, but I need to remind investors that we also acquired several hundred locations in the Niobrara and Mowry formations that are the focus of activity for most of our offset operators in the basin. While the average expected returns in these formations are currently below the Parkman, this inventory represents a material wedge of value that we acquired at less than $250,000 per location. We expect the returns on this inventory to improve dramatically as we scale operations and extend lateral lengths, particularly if oil prices remain at levels above $70. Epsilon Energy Ltd. is now positioned as a unique multiyear organic growth story with strong visibility into per-share growth in EPS...

Investor releaseQuarter not tagged2026-03-25

Epsilon Energy 2025 Earnings, Revenue Rise

MT Newswires

Epsilon Energy (EPSN) reported 2025 adjusted earnings late Tuesday of $0.92 per diluted share, up fr

Investor releaseQuarter not tagged2026-03-25

Epsilon Announces Full Year 2025 Results

GlobeNewswire

HOUSTON, March 24, 2026 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported financial results for the fourth quarter and full-year ended December 31, 2025. Full Year and Q4 2025 Highlights: Note: The acquisition of the Peak companies was closed on November 14, 2025 and the Powder River Basin (Wyoming) results are reflected from the closing date to year-end. Jason Stabell, Epsilon’s Chief Executive Officer, commented, “Over the past three years, we have repositioned Epsilon into a differentiated, multi-basin platform that is unique among small-cap energy companies. Building on our legacy position in the Marcellus—where we are partnered with a premier operator in one of the lowest-cost natural gas basins in the world—we have added exposure and meaningful organic growth potential in one of the most attractive emerging plays in the Permian. Recent announcements from leading public Permian operators, including Occidental and Diamondback, further underscore the industry’s growing enthusiasm for the Barnett oil play. In January, a leading private-equity-backed operator assumed operations of our 16,600-gross-acre Ector County Barnett project, a transition we expect will accelerate development cadence and improve capital efficiency. In 2026, we expect to participate in up to 4 gross wells (1 net). The first well was drilled and cased this month as a 3-mile completion (the first 3-mile well in the project), which is expected to begin production by June. Based on preliminary discussions with the operator, we see an additional 8-10 gross wells (2-2.5 net) drilled and completed in 2027. Going forward, we anticipate all Barnett wells in the project will be 3-mile laterals. In late 2025, we closed the transformative acquisition of the Peak companies, with assets in the Powder River Basin (“PRB”), adding a new focus area with approximately 40,000 net acres in the core of the basin, along with an experienced operating team. Across the PRB, we now control over 100 highly economic net locations, with near-term development focused on 21 gross (15 net) Parkman locations that generate rates of return in excess of 60% at $65 oil. Our current 2026 plans include completing 2 gross Niobrara DUCs (0.7 net) in the second quarter, followed in the third and fourth quarters by the drilling and completion of up to 3 gross (2.8 net) Parkman wel...

As of 2026-05-30 • Updated weeklySource: Earnings sourceIngestion runbook