Epsilon Announces Third Quarter 2025 Results

Core Insights - Epsilon Energy Ltd. reported its third quarter 2025 financial and operational results, highlighting a decrease in production and revenues compared to the previous quarter, but an increase year-over-year in certain metrics [1][2]. Financial Performance - NRI production for gas was 2,136 MMcf, down 22% quarter-over-quarter (QoQ) but up 64% year-over-year (YoY) [2]. - Oil production decreased to 39 Mbbl, an 11% decline QoQ and a 26% drop YoY [2]. - Total revenues for Q3 2025 were $8.98 million, a 23% decrease QoQ but a 23% increase YoY [2][12]. - Adjusted EBITDA was reported at $4.37 million, down 41% QoQ but up 17% YoY [2][19]. Production and Operational Updates - Capital expenditures for the quarter were $2.9 million, primarily for the completion of one well in Texas, which is performing as expected with a 30-day gross initial production rate of over 870 Boe/d [3][4]. - The company experienced shut-ins in the Marcellus region due to lower gas prices, impacting production by approximately 110 MMcf [4]. - Epsilon announced the acquisition of an operated business in the Powder River Basin, which is expected to close in November 2025, enhancing its operational scale and inventory [6]. Market and Pricing - Realized gas prices were $2.23 per Mcf, down 11% QoQ but up 53% YoY [2]. - Oil prices realized were $63.73 per Bbl, a 3% increase QoQ but a 14% decrease YoY [2]. - The company noted a strong increase in net wellhead pricing in the Marcellus as it exits the shoulder season, indicating potential for improved cash flows in upcoming quarters [5]. Shareholder Returns - The company maintained its dividend at $1.38 million for the quarter, consistent with the previous quarter [2]. - No share buybacks were reported during the quarter, contrasting with $628,000 in buybacks in Q3 2024 [2]. Cash Position - Cash and short-term investments totaled $13.24 million, a 28% increase from the previous quarter and a 51% increase YoY [2].