Epsilon Energy Ltd (NAS:EPSN)

Q2 2025 Epsilon Energy Ltd Earnings Call Transcript

Aug 14, 2025 / 03:00 PM GMT

Release Date Price: $5.47 (-15.46%)

Transcript 8-K10-Q

Key Points

Positve

Epsilon Energy Ltd (EPSN) announced the acquisition of the Peak Companies, adding a new core area in the Powder River Basin at an attractive price.
The acquisition includes experienced team members with over 15 years of in-basin operating experience, enhancing operational capabilities.
The deal adds oil-weighted production and a significant inventory of locations, providing opportunities for both organic and inorganic growth.
The acquisition is expected to increase Epsilon's year-end reserves by over 150% and liquids production by over 200%.
The transaction allows Epsilon to maintain its existing per share dividend while having sufficient discretionary cash flow to drive growth.

Negative

Realized pricing for gas and oil was down significantly quarter over quarter, leading to a 30% decrease in cash flows.
Approximately 30% of the acquired inventory is affected by a drilling permit moratorium in Converse County, Wyoming, creating uncertainty.
The acquisition involves the assumption of approximately $49 million of long-term debt, increasing the company's leverage.
The impairment was taken on recent investments in a joint venture in Alberta due to cost overruns and underperformance.
The transaction requires a shareholder vote, adding a layer of uncertainty to the closing process.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

EPSN.OQ - Epsilon Energy Ltd
Q2 2025 Epsilon Energy Ltd Earnings Call
Aug 14, 2025 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Epsilon Energy 2nd quarter 2025 earnings conference call.

All participants will be in listen-only mode.

Should you need assistance, please send the conference specialist by pressing the start key followed by 0.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press 1 and 1 on your telephone epa, and to enjoy your question, please press 2.

I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead.

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Unidentified_2 [2]
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