HOUSTON, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. ("Epsilon” or the "Company”) (NASDAQ: EPSN) today reported third quarter 2024 financial and operating results.
Third Quarter 2024 Highlights:
| Epsilon - Q3 2024 | ||||||||
| Q3 2024 | Q2 2024 | Q3 2023 | QoQ % | YoY % | ||||
| NRI Production | ||||||||
| Gas | MMcf | 1,304 | 1,407 | 1,848 | -7 | % | -29 | % |
| Oil | Mbbl | 53 | 45 | 13 | 19 | % | 317 | % |
| NGL | Mbbl | 17 | 19 | 9 | -11 | % | 99 | % |
| Revenues | ||||||||
| Gas | $M | 1,904 | 1,961 | 2,089 | -3 | % | -9 | % |
| Oil | $M | 3,965 | 3,514 | 925 | 13 | % | 329 | % |
| NGL | $M | 335 | 388 | 228 | -14 | % | 47 | % |
| Midstream1 | $M | 1,084 | 1,444 | 3,069 | -25 | % | -65 | % |
| Realized Prices2 | ||||||||
| Gas | $/Mcf | 1.46 | 1.39 | 1.13 | 5 | % | 29 | % |
| Oil | $/Bbl | 74.27 | 78.44 | 72.27 | -5 | % | 3 | % |
| NGL | $/Bbl | 19.56 | 20.21 | 26.50 | -3 | % | -26 | % |
| Adj. EBITDA | $M | 3,744 | 3,904 | 3,925 | -4 | % | -5 | % |
| Cash + STI3 | $M | 8,775 | 9,481 | 31,864 | -7 | % | -72 | % |
| Capex | $M | 3,908 | 5,709 | 5,284 | -32 | % | -26 | % |
| 1) Does not include elimination entry for fees paid by Epsilon | ||||||||
| 2) Excludes impact of hedge realizations | ||||||||
| 3) Includes restricted cash balance | ||||||||
- Returned $2.0 million to shareholders through the quarterly dividend and the repurchase of 125,000 shares during the quarter.
- Realized gains of $0.5 million on Henry Hub (HH) and TGP Z4 basis swaps totaling 690,000 MMBTU, and losses of $0.02 million on WTI CMA swaps totaling 17 MBbls.
Epsilon's capital expenditures were $3.9 million for the quarter ended September 30, 2024. These were primarily related to the completion of one gross (0.25 net) well in Ector Co., Texas and the drilling of two gross (1 net) wells in Alberta, Canada.
The Marcellus wells (7 gross) completed in Q1 2024 were not turned in line during the quarter. Three of the seven wells were put on flowback during the last week of October and are now producing approximately 60 MMcf per day gross. Our operating partner in PA has maintained production curtailments. We estimate that 3-4 MMcf per day of NRI production was offline during the quarter.
Jason Stabell, Epsilon's Chief Executive Officer, commented, "We delivered our fourth consecutive quarter of liquids volume, revenue and cash flow growth from our Permian assets continuing to fill the gap while we wait for an improved natural gas pricing environment. In Pennsylvania, we are expecting increased production and cash flow in the fourth quarter and next year aided by improving natural gas fundamentals. Our diversified and growing asset portfolio is well positioned to produce volume and cash flow growth in 2025.
The recently announced entry into Alberta, Canada provides an attractive new area to deploy capital starting in in the fourth quarter. We will provide an update on our 2025 Canadian investment plans once finalized with our operating partner.
Finally, our diversified assets, strong balance sheet and liquidity continue to differentiate us in the small cap energy space.”
Current Hedge Book:
| Hedge Book | ||||||||||
| Trade Date | Product | Structure | Ref | Contract Start | Contract End | Price / Strike | Outstanding | Metric | ||
| 10/07/2024 | Crude Oil | Swaps | NYMEX WTI CMA | 04/01/2025 | 06/30/2025 | $ | 72.00 | 7,500 | BBL | |
| 10/02/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 04/01/2025 | 10/31/2025 | $ | 3.23 | 535,000 | MMBtu | |
| 10/02/2024 | Natural Gas | Swaps | Tenn Z4 300L Basis | 04/01/2025 | 10/31/2025 | $ | (1.04 | ) | 535,000 | MMBtu |
| 08/28/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 01/01/2025 | 03/31/2025 | $ | 3.18 | 225,000 | MMBtu | |
| 08/28/2024 | Natural Gas | Swaps | Tenn Z4 300L Basis | 01/01/2025 | 03/31/2025 | $ | (0.68 | ) | 225,000 | MMBtu |
| 06/07/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 01/01/2025 | 03/31/2025 | $ | 3.70 | 225,000 | MMBtu | |
| 06/07/2024 | Natural Gas | Swaps | Tenn Z4 300L Basis | 01/01/2025 | 03/31/2025 | $ | (0.80 | ) | 225,000 | MMBtu |
| 04/30/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 01/01/2025 | 03/31/2025 | $ | 3.54 | 225,000 | MMBtu | |
| 04/30/2024 | Natural Gas | Swaps | Tenn Z4 300L Basis | 01/01/2025 | 03/31/2025 | $ | (0.75 | ) | 225,000 | MMBtu |
| 03/28/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 11/01/2024 | 12/31/2024 | $ | 3.15 | 77,500 | MMBtu | |
| 03/05/2024 | Natural Gas | Swaps | NYMEX Henry Hub (LD) | 11/01/2024 | 12/31/2024 | $ | 3.28 | 155,000 | MMBtu | |
| 03/05/2024 | Natural Gas | Swaps | Tenn Z4 300L Basis | 11/01/2024 | 12/31/2024 | $ | (1.04 | ) | 155,000 | MMBtu |
| 02/26/2024 | Crude Oil | Swaps | NYMEX WTI CMA | 03/01/2024 | 03/31/2025 | $ | 74.34 | 22,898 | BBL | |
The Company will host a conference call to discuss its results on Thursday, November 7, 2024 at 2:00 p.m. Central Time (3:00 p.m. Eastern Time).
Interested parties in the United States and Canada may participate toll-free by dialing (833) 816-1385. International parties may participate by dialing (412) 317-0478. Participants should ask to be joined to the "Epsilon Energy Third Quarter 2024 Earnings Conference Call.”
A webcast can be viewed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=S0pmngFY. A webcast replay will be available on the Company's website (www.epsilonenergyltd.com) following the call.
About Epsilon
Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico, and Oklahoma.
Forward-Looking Statements
Certain statements contained in this news release constitute forward looking statements. The use of any of the words "anticipate”, "continue”, "estimate”, "expect”, 'may”, "will”, "project”, "should”, 'believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Forward-looking statements are based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.
Contact Information:
281-670-0002
Jason Stabell
Chief Executive Officer
Andrew Williamson
Chief Financial Officer
| EPSILON ENERGY LTD. Unaudited Consolidated Statements of Operations (All amounts stated in US$) | ||||||||||||||||
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues from contracts with customers: | ||||||||||||||||
| Gas, oil, NGL, and condensate revenue | $ | 6,203,953 | $ | 3,241,531 | $ | 18,118,368 | $ | 14,509,184 | ||||||||
| Gas gathering and compression revenue | 1,083,988 | 3,068,996 | 4,464,134 | 7,657,755 | ||||||||||||
| Total revenue | 7,287,941 | 6,310,527 | 22,582,502 | 22,166,939 | ||||||||||||
| Operating costs and expenses: | ||||||||||||||||
| Lease operating expenses | 2,099,501 | 1,559,957 | 5,517,830 | 4,404,757 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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