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Epsilon Energy Ltd. Announces New Share Repurchase Program and Borrowing Base Redetermination
EPSNEpsilon Energy .(EPSN) GlobeNewswire·2025-02-13 21:05

Group 1 - Epsilon Energy Ltd. has terminated its previous normal course issuer bid program and approved a new one-year share repurchase program, allowing the repurchase of up to 2,200,876 common shares for a total price not exceeding US 13.0million[1][2]−ThenewsharerepurchaseprogramcommencedonFebruary12,2025,andwillconcludeonFebruary11,2026,unlessthemaximumnumberofsharesisrepurchasedearlierorthecompanyprovidesnoticeoftermination[1]−Thecompanybelievesthemarketpriceofitscommonsharesdoesnotreflecttheirunderlyingvalue,andtherepurchaseinitiativeisseenasawaytocreateshareholdervalue[2]Group2−SharerepurchaseswillbeconductedthroughtheNASDAQGlobalMarketattheprevailingmarketprice,andthecompanyplanstofundthepurchasesusingavailablecashwithoutincurringdebt[3]−EpsilonEnergyhasundergoneaborrowingbaseredeterminationforitsseniorsecuredreserve−basedlendingrevolvingcreditfacility,withthenewborrowingbasesetat13.0 million [1][2] - The new share repurchase program commenced on February 12, 2025, and will conclude on February 11, 2026, unless the maximum number of shares is repurchased earlier or the company provides notice of termination [1] - The company believes the market price of its common shares does not reflect their underlying value, and the repurchase initiative is seen as a way to create shareholder value [2] Group 2 - Share repurchases will be conducted through the NASDAQ Global Market at the prevailing market price, and the company plans to fund the purchases using available cash without incurring debt [3] - Epsilon Energy has undergone a borrowing base redetermination for its senior secured reserve-based lending revolving credit facility, with the new borrowing base set at 45 million effective February 10, 2025 [4] - Epsilon Energy Ltd. operates as a North American onshore natural gas and oil production and gathering company with assets located in Pennsylvania, Texas, Alberta, New Mexico, and Oklahoma [5]