Q3 2024 Epsilon Energy Ltd Earnings Call Transcript
Key Points
- Epsilon Energy Ltd (EPSN) reported a 19% quarter-over-quarter oil production growth in the Permian due to the successful online launch of the seventh Hector well.
- The company anticipates quarter-over-quarter growth in natural gas volumes in the fourth quarter as curtailed volumes are brought back online.
- Epsilon Energy Ltd (EPSN) entered into two joint ventures in Alberta, Canada, with plans to earn a 25% interest in approximately 160,000 acres, indicating strategic expansion.
- The company remains well-positioned for volume and cash flow growth in 2025, with continued evaluation of investment opportunities, particularly in Canada.
- Epsilon Energy Ltd (EPSN) has added to its hedge book for 2025, locking in prices above the current strip, which could provide financial stability amid market fluctuations.
- Wellhead prices in Pennsylvania have remained low, impacting the company's revenue from this region.
- Production curtailments and plugging and abandonment activities in Pennsylvania increased operating costs by approximately 40% for the quarter.
- The company does not forecast incremental drilling in Pennsylvania in 2025, which could limit growth opportunities in this area.
- Results from the two multi-leg horizontal wells in Alberta's Killam area have been mixed, indicating potential challenges in achieving expected performance.
- There is uncertainty regarding investment activity details for Texas in the coming year, as the strategic alternatives review process is still underway.
Good afternoon and welcome to the Epsilon Energy third quarter, 2024 earnings conference call.
[Operator Instructions] After today's presentation, there will be an opportunity to ask questions to ask a question. [Operator Instructions]
I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead.
Thank you operator and on behalf of the management team, I would like to welcome all of you to today's conference call to review Epsilon's third quarter, 2024 financial and operational results. Before we begin, I would like to remind you that our comments may include forward-looking statements. It should be noted that a variety of factors could cause epsilon's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.
Today's call may also contain certain non-GAAP financial measures. Please refer to the earnings release that we issued yesterday for disclosures on
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