Epsilon Energy .-Epsilon Announces Full Year 2024 Results

Core Insights - Epsilon Energy Ltd. reported its financial results for Q4 and the full year 2024, highlighting a challenging natural gas environment and a significant increase in oil production [1][5][9]. Financial Performance - Total revenues for 2024 were $31.5 million, a 3% increase from$ 30.7 million in 2023 [22]. - Net income for 2024 was $1.9 million, down from$ 6.9 million in 2023, with net income per share at $0.09 [23][22]. - Adjusted EBITDA for 2024 was$ 17.6 million, a decrease from $18.8 million in 2023 [30][31]. Production and Sales - Total production in 2024 was 7,676 MMcfe, a 14% decrease year-over-year, with natural gas production down 26% [2][3]. - Oil production increased significantly by 186% year-over-year, totaling 187 Mbbl in 2024 [2][3]. - The average realized price for gas was$ 1.76 per Mcf, down 1% from 2023, while oil prices averaged $73.61 per Bbl, a 6% decrease [2][3]. Capital Expenditures and Investments - Capital expenditures for 2024 were$ 34.9 million, a 58% increase from $22 million in 2023, with Texas accounting for approximately 70% of the total [10][9]. - The company returned$ 7.3 million to shareholders through dividends and share repurchases [4][9]. Reserves and Future Outlook - Proved reserves increased by 20% year-over-year to 70,262 Mmcfe, while probable reserves decreased by 12% [13][14]. - The company is positioned for growth in 2025, with expectations of increased production and cash flows, supported by a strong liquidity position of over $50 million [9][5]. Operational Highlights - The Auburn Gas Gathering System delivered 36.9 Bcf of natural gas volumes in 2024, averaging 101 MMcf/d [11]. - A joint venture was established in Alberta, covering over 30,000 gross acres, with promising well economics [8][9].