NASDAQ:EPSN Epsilon Energy Q3 2023 Earnings Report $7.28 +0.09 (+1.25%) Closing price 04/28/2025 04:00 PM EasternExtended Trading$7.27 -0.01 (-0.14%) As of 04:00 AM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Epsilon Energy EPS ResultsActual EPS$0.02Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AEpsilon Energy Revenue ResultsActual Revenue$6.31 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AEpsilon Energy Announcement DetailsQuarterQ3 2023Date11/9/2023TimeN/AConference Call DateFriday, November 10, 2023Conference Call Time11:00AM ETUpcoming EarningsEpsilon Energy's Q1 2025 earnings is scheduled for Tuesday, May 6, 2025Conference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfilePowered by Epsilon Energy Q3 2023 Earnings Call TranscriptProvided by QuartrNovember 10, 2023 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Please note this event is being recorded. I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead. Speaker 100:00:09Thank 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 Q3 2023 financial and operational results. Before we begin, I'd 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. Speaker 100:00:44Please refer to the earnings release that we issued yesterday for disclosures on forward looking statements and reconciliations of non GAAP measures. With that, I'd like to turn the call over to Jason Stebel, our Chief Executive Officer. Speaker 200:00:58Thank you, Andrew. Good morning to everyone and thank you for participating in the Epsilon Energy Third Quarter 2023 Conference Call. Joining me today are Andrew Williamson, our CFO And Henry Clanton, our COO. We will be available to answer questions later in the call. Our press release and 10 Q posted Yesterday, provide details on our business results. Speaker 200:01:20Today, I'd like to discuss several key highlights since our last quarterly release in August. 1st and most importantly, we are excited about our recent and planned near term development investments in Pennsylvania and Texas. Alongside our operating partners, we're planning a more robust CapEx budget for the next 12 months relative to the last few years, Which will add significant volume growth in both liquids and natural gas. We are already underway in Pennsylvania Having recently elected to participate in 7 wells, Henry can add more detail here. In Texas, We recently completed our first two wells and activity will continue in 2024 on our large contiguous leasehold position that we acquired earlier this year. Speaker 200:02:08This approximately 11,000 acre gross position where we hold a 25% interest sits in close proximity To the 2 recently drilled and completed wells. Our 2024 plans will begin to unlock the value potential of this large asset. We have hedged a portion of our natural gas production for the next 12 months and will monitor the oil market to potentially do the same With a portion of the crude volumes coming on in the Permian. Finally, we continue to prioritize shareholder returns Through our well supported dividend and opportunistic share purchases. These returns totaled over $4,000,000 for the quarter, including A 525,000 share purchase at $5 per share in July and our $1,400,000 quarterly dividend paid in September. Speaker 200:02:57Now, I'd like to turn the call over to Andrew and Henry for some more detailed comments on our finances and operations. Speaker 100:03:05Thanks, Jason. As Jason just mentioned, we put on some gas hedges over the last 45 days, Swaps for NYMEX Henry Hub and our basis at Tennessee Gas Pipeline Zone 4. Details are included in the press release posted yesterday. We wanted to take some risk off based on potential downside we see to the forward curve and looking ahead to the capital program over the next 12 months. Approximately 25% of our forecasted volumes through October 2024 are hedged. Speaker 100:03:36With our balance sheet, We're comfortable with that exposure level at current forward prices. With our first two wells online in Ector County, we would look at hedging a portion of our crude volumes this quarter Depending on forward prices. We're excited about our recent and upcoming drill bit investments. It's shaping up to be one of the most active periods for the company in the last several years. I'll let Henry talk about the operations aspect, But the plan is for $15,000,000 to $20,000,000 in CapEx from the Q4 of this year through the first half of next year, depending on the pace of development in Hector County. Speaker 100:04:12That spend is roughly split evenly between PA and the Permian. All of this will be comfortably funded from our existing cash on hand and cash flow. We expect the associated incremental cash flows to make a meaningful impact, starting in the Q4 with the first two wells online in the Permian. We continue to spend a big part of our time on business development, looking for investment opportunities outside of our existing asset base. We would like to add another area to deploy capital, but remain disciplined in our evaluation process. Speaker 100:04:44Hopefully, we'll have something to report there next year. Now to Henry for comments on the operations. Speaker 300:04:50Thank you, Andrew. As Jason mentioned earlier, the company Pleased to report our election to participate in 7 wells in Pennsylvania over the next 9 months. These wells are representative of our inventory and are Expected to provide meaningful volume contribution by mid year. The first three wells have been drilled and are waiting for completion scheduled for Q1 of 2024. The remaining 4 wells are expected to be drilled by year end with the completion scheduled for the first half of twenty twenty four as well. Speaker 300:05:22In our Permian Basin project, the first two appraised wells have been completed and flowback operations began in mid October. Preliminary results are encouraging as both wells have achieved peak rates consistent with our type curve expectation in less than 30 days. Plans are now being finalized to drill up to 4 additional appraisal wells next year. As Jason mentioned, this project has significant runway. We estimate 20 to 30 gross locations and is expected to add meaningfully to the company's liquids mix and cash flows going forward. Speaker 300:05:58And finally, all wells that were shut in during the Q3 on the Crumlin pad for remedial well work have been returned to production late September. Now back to Jason. Speaker 200:06:09Thanks, guys. Operator, we can now open the line for questions. Operator00:07:03Showing no questions. This concludes our question and answer session. I would like to turn the conference back over to Jason Stebel for any closing remarks. Speaker 200:07:12Thank you, Gary. And I want to thank everyone for joining us today for the Q3 call. We look forward to updating you on the progress on these plans, and we hope you have a great Friday and a nice weekend. Thank you. Operator00:07:27The conference has now concluded. Thank you for attending today'sRead morePowered by Conference Call Audio Live Call not available Earnings Conference CallEpsilon Energy Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Quarterly report(10-Q) Epsilon Energy Earnings HeadlinesWhy Epsilon Energy Ltd (EPSN) Is Up the Most So Far in 2025April 26 at 6:05 PM | msn.comEpsilon Energy Ltd. Schedules First Quarter 2025 Earnings Release and Conference Call | EPSN ...April 25, 2025 | gurufocus.comHere’s How to Claim Your Stake in Elon’s Private Company, xAIEven though xAI is a private company, tech legend and angel investor Jeff Brown found a way for everyday folks like you… To partner with Elon on what he believes will be the biggest AI project of the century… Starting with as little as $500.April 29, 2025 | Brownstone Research (Ad)Epsilon Energy Ltd. Schedules First Quarter 2025 Earnings Release and Conference CallApril 25, 2025 | gurufocus.comEpsilon Energy Ltd. Schedules First Quarter 2025 Earnings Release and Conference CallApril 25, 2025 | financialpost.comEpsilon Energy Ltd. Schedules First Quarter 2025 Earnings Release and Conference CallApril 25, 2025 | globenewswire.comSee More Epsilon Energy Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Epsilon Energy? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Epsilon Energy and other key companies, straight to your email. Email Address About Epsilon EnergyEpsilon Energy (NASDAQ:EPSN), a North American onshore independent natural gas and oil company, engages in the acquisition, development, gathering, and production of natural oil and gas reserves in the United States. The company operates through Upstream and Gathering System segments. It has natural gas production in the Marcellus Shale in Pennsylvania; and oil, natural gas liquids, and natural gas production in the Permian Basin in Texas and New Mexico, and Anadarko Basin in Oklahoma. Epsilon Energy Ltd. was incorporated in 2005 and is based in Calgary, Canada.View Epsilon Energy ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Alphabet Rebounds After Strong Earnings and Buyback AnnouncementMarkets Think Robinhood Earnings Could Send the Stock UpIs the Floor in for Lam Research After Bullish Earnings?Texas Instruments: Earnings Beat, Upbeat Guidance Fuel RecoveryMarket Anticipation Builds: Joby Stock Climbs Ahead of EarningsIs Intuitive Surgical a Buy After Volatile Reaction to Earnings?Seismic Shift at Intel: Massive Layoffs Precede Crucial Earnings Upcoming Earnings QUALCOMM (4/30/2025)Automatic Data Processing (4/30/2025)Microsoft (4/30/2025)Meta Platforms (4/30/2025)KLA (4/30/2025)Equinix (4/30/2025)Lloyds Banking Group (4/30/2025)Itaú Unibanco (4/30/2025)Banco Santander (4/30/2025)Equinor ASA (4/30/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 4 speakers on the call. Operator00:00:00Please note this event is being recorded. I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead. Speaker 100:00:09Thank 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 Q3 2023 financial and operational results. Before we begin, I'd 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. Speaker 100:00:44Please refer to the earnings release that we issued yesterday for disclosures on forward looking statements and reconciliations of non GAAP measures. With that, I'd like to turn the call over to Jason Stebel, our Chief Executive Officer. Speaker 200:00:58Thank you, Andrew. Good morning to everyone and thank you for participating in the Epsilon Energy Third Quarter 2023 Conference Call. Joining me today are Andrew Williamson, our CFO And Henry Clanton, our COO. We will be available to answer questions later in the call. Our press release and 10 Q posted Yesterday, provide details on our business results. Speaker 200:01:20Today, I'd like to discuss several key highlights since our last quarterly release in August. 1st and most importantly, we are excited about our recent and planned near term development investments in Pennsylvania and Texas. Alongside our operating partners, we're planning a more robust CapEx budget for the next 12 months relative to the last few years, Which will add significant volume growth in both liquids and natural gas. We are already underway in Pennsylvania Having recently elected to participate in 7 wells, Henry can add more detail here. In Texas, We recently completed our first two wells and activity will continue in 2024 on our large contiguous leasehold position that we acquired earlier this year. Speaker 200:02:08This approximately 11,000 acre gross position where we hold a 25% interest sits in close proximity To the 2 recently drilled and completed wells. Our 2024 plans will begin to unlock the value potential of this large asset. We have hedged a portion of our natural gas production for the next 12 months and will monitor the oil market to potentially do the same With a portion of the crude volumes coming on in the Permian. Finally, we continue to prioritize shareholder returns Through our well supported dividend and opportunistic share purchases. These returns totaled over $4,000,000 for the quarter, including A 525,000 share purchase at $5 per share in July and our $1,400,000 quarterly dividend paid in September. Speaker 200:02:57Now, I'd like to turn the call over to Andrew and Henry for some more detailed comments on our finances and operations. Speaker 100:03:05Thanks, Jason. As Jason just mentioned, we put on some gas hedges over the last 45 days, Swaps for NYMEX Henry Hub and our basis at Tennessee Gas Pipeline Zone 4. Details are included in the press release posted yesterday. We wanted to take some risk off based on potential downside we see to the forward curve and looking ahead to the capital program over the next 12 months. Approximately 25% of our forecasted volumes through October 2024 are hedged. Speaker 100:03:36With our balance sheet, We're comfortable with that exposure level at current forward prices. With our first two wells online in Ector County, we would look at hedging a portion of our crude volumes this quarter Depending on forward prices. We're excited about our recent and upcoming drill bit investments. It's shaping up to be one of the most active periods for the company in the last several years. I'll let Henry talk about the operations aspect, But the plan is for $15,000,000 to $20,000,000 in CapEx from the Q4 of this year through the first half of next year, depending on the pace of development in Hector County. Speaker 100:04:12That spend is roughly split evenly between PA and the Permian. All of this will be comfortably funded from our existing cash on hand and cash flow. We expect the associated incremental cash flows to make a meaningful impact, starting in the Q4 with the first two wells online in the Permian. We continue to spend a big part of our time on business development, looking for investment opportunities outside of our existing asset base. We would like to add another area to deploy capital, but remain disciplined in our evaluation process. Speaker 100:04:44Hopefully, we'll have something to report there next year. Now to Henry for comments on the operations. Speaker 300:04:50Thank you, Andrew. As Jason mentioned earlier, the company Pleased to report our election to participate in 7 wells in Pennsylvania over the next 9 months. These wells are representative of our inventory and are Expected to provide meaningful volume contribution by mid year. The first three wells have been drilled and are waiting for completion scheduled for Q1 of 2024. The remaining 4 wells are expected to be drilled by year end with the completion scheduled for the first half of twenty twenty four as well. Speaker 300:05:22In our Permian Basin project, the first two appraised wells have been completed and flowback operations began in mid October. Preliminary results are encouraging as both wells have achieved peak rates consistent with our type curve expectation in less than 30 days. Plans are now being finalized to drill up to 4 additional appraisal wells next year. As Jason mentioned, this project has significant runway. We estimate 20 to 30 gross locations and is expected to add meaningfully to the company's liquids mix and cash flows going forward. Speaker 300:05:58And finally, all wells that were shut in during the Q3 on the Crumlin pad for remedial well work have been returned to production late September. Now back to Jason. Speaker 200:06:09Thanks, guys. Operator, we can now open the line for questions. Operator00:07:03Showing no questions. This concludes our question and answer session. I would like to turn the conference back over to Jason Stebel for any closing remarks. Speaker 200:07:12Thank you, Gary. And I want to thank everyone for joining us today for the Q3 call. We look forward to updating you on the progress on these plans, and we hope you have a great Friday and a nice weekend. Thank you. Operator00:07:27The conference has now concluded. Thank you for attending today'sRead morePowered by