Epsilon Energy Earnings Call Transcripts
Fiscal Year 2026
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Production growth is set to accelerate in the second half of 2026, driven by new wells in the Permian and Powder River basins. Adjusted Q1 EPS was $0.29, with strong gas pricing and asset sales supporting a strengthened balance sheet.
Fiscal Year 2025
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Adjusted EBITDA rose 75% and production 54% year-over-year, driven by the Peak acquisition and strong development in key basins. Portfolio optimization, asset sales, and robust returns at higher oil prices position the company for multi-year growth and capital returns.
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Announced Peak Companies acquisition, adding Powder River Basin assets and experienced team. Year-to-date adjusted EPS reached $0.45, with strong cash flow from Texas assets. 2026 focus is on integration and execution, with major development in 2027 if market conditions allow.
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Announced acquisition of Peak Companies adds significant oil-weighted production and inventory, boosting reserves by over 150% and liquids output by 200%. Second quarter saw flat production but a 30% drop in cash flows due to lower realized prices.
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Strong sequential growth in Marcellus and midstream cash flows drove robust first quarter results, with production up 58% and realized pricing up 70%. Capital spending is focused on Texas and Alberta, while hedging strategies and a strong balance sheet support stability.
Fiscal Year 2024
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Achieved strategic growth in Permian and Alberta, with 180% oil production increase and 20% reserve growth. Marcellus production rebounded in early 2025, and strong liquidity supports continued investment and shareholder returns.
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Permian oil production grew 19% quarter-over-quarter, offsetting Pennsylvania's curtailments and low prices. New Alberta joint ventures expand the liquids-rich portfolio, with initial wells planned for 2025. Strong liquidity and hedging support growth into next year.
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Permian assets drove half of revenue and most cash flow, while Marcellus faced curtailments amid weak gas prices. Borrowing base rose to $45M, and new development in the Permian and Canada is planned, pending operator sale completion.