Epsilon Energy .(US:EPSN)2025-05-15 16:00Financial Data and Key Metrics Changes - The company reported a significant increase in Marcellus upstream cash flows, which were up over 200% sequentially due to a 58% increase in production and a 70% increase in realized pricing [5] - Midstream cash flows also saw a substantial increase of 140% sequentially driven by higher throughput volumes [5] Business Line Data and Key Metrics Changes - The Marcellus business line demonstrated strong performance, with production and pricing contributing to the cash flow increase [5][7] - In Texas, the Barnett type curve remains economic, delivering above a 15% rate of return at $55 WTI [7] - The company plans to drill two gross wells in Texas to meet leasehold obligations, with the first well expected to spud in late May [10] Market Data and Key Metrics Changes - The company is approximately 45% hedged on forecasted PDP oil production for the remainder of the year at just over $71 WTI, and about 30% hedged for gas production at $3.33 NYMEX [8] Company Strategy and Development Direction - The company is focusing on minimizing near-term activity in light of oil price volatility, planning only 0.5 net wells in Texas and Alberta for total capital expenditures of $9 million to $12 million [5] - There are no expected additional investments in Pennsylvania for the remainder of the year, with plans to develop remaining undeveloped inventory starting late next year or early in 2027 [7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and projected cash flows, positioning it well to capitalize on attractive opportunities while maintaining dividends [6] - The operator's stated plans for development are subject to change based on gas market conditions and other factors [7] Other Important Information - The first two horizontal Manville wells in Canada were completed in the first quarter, with production sales commencing in April [11] Q&A Session Summary Question: Details on the first two wells in Alberta - Management indicated that oil and gas started flowing to sales in early April, with ongoing efforts to install artificial lift and tie down facilities, expecting more definitive comments in the upcoming quarters [15][16]