Epsilon Energy Ltd
NASDAQ:EPSN
Epsilon Energy Ltd
Epsilon Energy Ltd. engages in the development and production of natural gas and oil reserves. The company is headquartered in Houston, Texas and currently employs 9 full-time employees. The company went IPO on 2019-02-19. The firm is engaged in the acquisition, development, gathering and production of natural gas and oil reserves. The firm operates through three segments: Upstream, Gathering System, and Corporate. The Upstream segment activities include acquisition, exploration, development and production of oil and natural gas reserves on properties within the United States. The Gathering System segment partners with two other companies to operate a natural gas gathering system. The firm's primary areas of operations include Marcellus Shale in Pennsylvania and Anadarko basin in Oklahoma. The firm's subsidiaries include Epsilon Energy USA Inc; Epsilon Midstream, LLC; Epsilon Operating, LLC, Dewey Energy GP LLC, Dewey Energy Holdings, LLC, and Altolisa Holdings, LLC.
Epsilon Energy Ltd. engages in the development and production of natural gas and oil reserves. The company is headquartered in Houston, Texas and currently employs 9 full-time employees. The company went IPO on 2019-02-19. The firm is engaged in the acquisition, development, gathering and production of natural gas and oil reserves. The firm operates through three segments: Upstream, Gathering System, and Corporate. The Upstream segment activities include acquisition, exploration, development and production of oil and natural gas reserves on properties within the United States. The Gathering System segment partners with two other companies to operate a natural gas gathering system. The firm's primary areas of operations include Marcellus Shale in Pennsylvania and Anadarko basin in Oklahoma. The firm's subsidiaries include Epsilon Energy USA Inc; Epsilon Midstream, LLC; Epsilon Operating, LLC, Dewey Energy GP LLC, Dewey Energy Holdings, LLC, and Altolisa Holdings, LLC.
Strategic Acquisition: Epsilon is acquiring the Peak companies' Powder River Basin assets, adding oil-weighted production and significant drilling inventory; the deal is expected to close soon after the November 12 shareholder vote.
Permian & Marcellus Updates: Epsilon's Permian asset performed well, with drilling set to resume in Q1 2026, while Marcellus production faced curtailments due to weak gas prices but is expected to ramp up as prices improve.
Hedging & Leverage: The company has hedged 60% of pro forma oil and 50% of gas for 2026, providing downside protection; leverage remains manageable, and a new credit facility extends debt maturity to Q4 2029.
Capital Plans & Guidance: Preliminary 2026 CapEx plan includes $20 million for Peak assets, $6 million for Permian, and up to $13 million for Marcellus (which may shift to 2027); focus will be on integration and execution post-acquisition.
Operational Optimization: The company identified opportunities for production optimization and cost reductions in the acquired assets, with infrastructure investments planned for Converse County Parkman wells.
Strong Earnings: Year-to-date adjusted earnings reached $0.45 per share, with Marcellus development boosting results.
