Q4 2025 Epsilon Energy Ltd Earnings Call Transcript
Key Points
- Epsilon Energy Ltd (EPSN) achieved a 75% growth in adjusted EBITDA and a 54% increase in production year-over-year.
- The acquisition of the Peak companies added over 100 net high rate of return drilling locations and increased total proved reserves by 86%.
- The company declared its 17th consecutive quarterly dividend and renewed a share buyback program covering up to 10% of shares outstanding.
- Epsilon realized favorable natural gas pricing in Pennsylvania, generating over $4.8 million in net natural gas sales in a single week.
- The company is positioned for multiyear organic growth with strong visibility into per share growth in EPS, EBITDA, and production while maintaining a fixed dividend.
- Epsilon faced transaction costs of $6.9 million from the Peak acquisition, impacting earnings.
- There were impairments on wellbores in Canada and New Mexico due to sub $60 WTI oil strip and downward reserve revisions.
- The company experienced well underperformance in Canada, impacting its competitive capital allocation.
- Epsilon incurred a loss on the sale of Oklahoma assets, although it was offset by cash tax savings.
- The company is selling an overriding royalty interest package in the Marcellus to increase liquidity, indicating potential cash flow challenges.
Good morning, everyone, and welcome to the Epsilon Energy 2025 Year-end Earnings Conference Call. (Operator Instructions) Please also note today's event is being recorded.
At this time, I'd like to turn the floor over to Andrew Williamson, CFO. 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 full year and fourth quarter 2025 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 forward-looking statements and reconciliations of non-GAAP
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
