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Epsilon Energy Ltd. (EPS.TO)

Toronto - Toronto Delayed Price. Currency in CAD
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5.46+5.46 (+undefined)
At close: 3:21PM EDT
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Previous Close0.00
OpenN/A
Bid5.43 x N/A
Ask5.61 x N/A
Day's RangeN/A - N/A
52 Week Rangeundefined - undefined
VolumeN/A
Avg. VolumeN/A
Market CapN/A
Beta (5Y Monthly)0.48
PE Ratio (TTM)143.68
EPS (TTM)0.04
Earnings DateMay 11, 2021 - May 17, 2021
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est3.18
  • Epsilon Energy Ltd. Announces Full Year 2020 Results
    GlobeNewswire

    Epsilon Energy Ltd. Announces Full Year 2020 Results

    HOUSTON, March 25, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon”) (NASDAQ: EPSN) today reported its financial results for the fourth quarter and full-year ended December 31, 2020. Epsilon’s highlights for 2020 and material subsequent events following year end through the date of this release include: Total Revenues of $24.4 million for the year as compared to $26.7 million for the same period of 2019.Net after tax income of $0.9 million for the year as compared to $8.7 million for the same period of 2019.Adjusted EBITDA of $15.7 million for the year as compared to $18.0 million for the same period of 2019.Average net natural gas prices of $1.36/Mcf for the year as compared to $2.18/Mcf for the same period in 2019.Cash and cash equivalents at the end of 2020 was $13.8 million as compared to $14.6 million at the end of 2019.Total estimated proved natural gas reserves of 88.7 Bcf as of December 31, 2020 after 2020 production of 11.2 Bcf, and 371.3 Mbbl of proved oil and condensate reserves after 2020 production of 6.5 Mbbl.Gathered and delivered 69.5 Bcf gross (24.3 Bcf net to Epsilon’s interest) during the year, or 190 MMcf/d through the Auburn Gas Gathering System.Marcellus net gas production averaged 30.0 MMcf/d for the year as compared to 21.4 MMcf/d net gas production in 2019. Net gas production as of this release is approximately 24.6 MMcf/d (or 28.3 MMcf/d of working interest gas production) Epsilon has 9 gross (1.84 Net) wells offline for adjacent operations. The shut-in wells (1.84 Net) were producing, in aggregate, slightly more than 1.75 MMcf/d net (or 2.0 MMcf/d working interest gas production) prior to shut-in to accommodate current activity.Hedged 4.0 Bcf of Q2 2021 – Q1 2022 natural gas production via Henry Hub costless collars with an average floor of $2.79 and an average ceiling of $3.29. Michael Raleigh, CEO, commented, “Epsilon managed to achieve excellent results in 2020 despite a very challenged natural gas price environment and increased our produced volumes by 40% over the prior period in 2019. Natural gas prices rebounded in the first two months of 2021, but have subsequently weakened as natural gas supply appears to be adequate in the short term. We expect Northeast natural gas production to remain flat for the remainder of 2021 which should be supportive of more constructive prices as natural gas storage levels are currently 7% below the five year average and 21% below 2020 levels. For the first quarter of 2021 we anticipate net gas production of 26- 28 MMcf/d (30 – 32 MMcfpd gross working interest production) and $4.7 - 5.3 million in EBITDA. Epsilon participated with the operator in the drilling of one gross well (.22 Net) in the Auburn Gas Gathering System during the first quarter. It is currently planned for this well to be completed and turned to production in the third quarter. In late 2020, Epsilon filed for and received four well permits from the PA DEP. Epsilon intends to pursue its plans to develop these locations as expeditiously as possible.” Financial and Operating Results Twelve months ended December 31, 2020 2019Revenue by product - total period ($000) Natural gas revenue ($000) $ 15,207 $ 16,945 Volume (MMcfe) 11,204 7,757 Avg. Price ($/Mcfe) $1.36 $2.18 Exit Rate (MMcfepd) 32.8 30.5 Oil and other liquids revenue ($000) $ 338 $ 425 Volume (MBOE) 15 15 Avg. Price ($/Bbl) $22.66 $29.24 Midstream gathering system revenue ($000) $ 8,880 $ 9,320 Total Revenue $ 24,425 $ 26,690 Capital Expenditures Epsilon’s development capital expenditures were $3.8 million for the year ended December 31, 2020. A total of $1.3 million was spent on lagging completion costs during 2020 for four gross (1.18 Net) wells developed in 2019 in Pennsylvania. An additional $1.7 million was spent participating in the drilling and completing of nine gross (0.22 Net) wells during 2020 in Pennsylvania. The Auburn Gas Gathering system required maintenance capital of $0.7 million. Remaining capital expenditures were related to lease acquisition, permitting new wells to be drilled in Pennsylvania and drill planning. During the first quarter of 2021, Epsilon participated with the operator in the drilling of one extended lateral well (.22 Net) in the Auburn GGS targeting both the upper and lower Marcellus. The well has been drilled to target depth and is awaiting completion operations. In addition, Epsilon has received four well permits from the PA DEP and is proceeding with well planning for the development of these wells as expeditiously as possible. Fourth Quarter Results Epsilon generated revenues of $5.9 million for the three months ended December 31, 2020 compared to $6.8 million for the three months ended December 31, 2019. The Company’s net revenue interest production was 2.60 Bcf in the fourth quarter primarily in Pennsylvania. Realized natural gas prices averaged $1.45 per Mcf in the fourth quarter of 2020. Operating expenses for Marcellus Upstream operations in the fourth quarter were $1.6 million. The Auburn Gas Gathering system delivered 15.3 Bcf of natural gas during the quarter as compared to 22.7 Bcf during the fourth quarter of 2019. Primary gathering volumes decreased 8.9% quarter over quarter from 14.6 Bcf to 13.3 Bcf. Imported cross-flow volumes decreased 75% from 8.0 Bcf to 2.0 Bcf. Epsilon reported a net after tax income of $1.4 million attributable to shareholders or $0.06 per basic and diluted shares outstanding for the three months ended December 31, 2020, compared to net income of $2.0 million, and $0.08 per basic and diluted shares outstanding for the three months ended December 31, 2019. For the three months ended December 31, 2020, Epsilon's Adjusted Earnings Before Interest, Income Taxes, Depreciation, Amortization ("Adjusted EBITDA") was $4.0 million as compared to $4.5 million for the three months ended December 31, 2019. The decrease in Adjusted EBITDA was primarily due to the decrease in upstream revenue due to the lower natural gas prices. Adjusted EBITDA Epsilon defines Adjusted EBITDA as earnings before (1) net interest expense, (2) taxes, (3) depreciation, depletion, amortization and accretion expense, (4) impairments of natural gas and oil properties, (5) non-cash stock compensation expense, (6) gain or loss on derivative contracts net of cash received or paid on settlement, and (7) other income. Adjusted EBITDA is not a measure of financial performance as determined under U.S. GAAP and should not be considered in isolation from or as a substitute for net income or cash flow measures prepared in accordance with U.S. GAAP or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. Epsilon has included Adjusted EBITDA as a supplemental disclosure because its management believes that EBITDA provides useful information regarding its ability to service debt and to fund capital expenditures. It further provides investors a helpful measure for comparing operating performance on a "normalized" or recurring basis with the performance of other companies, without giving effect to certain non-cash expenses and other items. This provides management, investors and analysts with comparative information for evaluating the Company in relation to other natural gas and oil companies providing corresponding non-U.S. GAAP financial measures or that have different financing and capital structures or tax rates. These non-U.S. GAAP financial measures should be considered in addition to, but not as a substitute for, measures for financial performance prepared in accordance with U.S. GAAP. About Epsilon Epsilon Energy Ltd. is a North American on-shore focused independent exploration and production company engaged in the acquisition, development, gathering and production of oil and gas reserves. Our primary area of operation is the Marcellus basin in northeast Pennsylvania. Our assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. For more information, please visit www.epsilonenergyltd.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases. 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. The reserves and associated future net revenue information set forth in this news release are estimates only. In general, estimates of oil and natural gas reserves and the future net revenue therefrom are based upon a number of variable factors and assumptions, such as production rates, ultimate reserves recovery, timing and amount of capital expenditures, ability to transport production, marketability of oil and natural gas, royalty rates, the assumed effects of regulation by governmental agencies and future operating costs, all of which may vary materially from actual results. For those reasons, estimates of the oil and natural gas reserves attributable to any particular group of properties, as well as the classification of such reserves and estimates of future net revenues associated with such reserves prepared by different engineers (or by the same engineers at different times) may vary. The actual reserves of the Company may be greater or less than those calculated. In addition, the Company's actual production, revenues, development and operating expenditures will vary from estimates thereof and such variations could be material. Statements relating to "reserves" are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can be profitably produced in the future. There is no assurance that forecast price and cost assumptions will be attained and variances could be material. Proved reserves are those reserves which are most certain to be recovered. There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimated proved reserves. Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves classification (proved, probable) to which they are assigned. Proved undeveloped reserves are those reserves that can be estimated with a high degree of certainty and are expected to be recovered from known accumulations where a significant expenditure is required to render them capable of production. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties due to the effects of aggregation. The estimated future net revenues contained in this news release do not necessarily represent the fair market value of the Company's reserves. Contact Information: 281-670-0002 Michael RaleighChief Executive OfficerMichael.Raleigh@EpsilonEnergyLTD.com EPSILON ENERGY LTD.Audited Consolidated Statements of Operations(All amounts stated in US$) Year ended December 31, 2020 2019Revenues from contracts with customers: Gas, oil, NGLs and condensate revenue$15,545,552 $17,369,963 Gas gathering and compression revenue 8,879,728 9,320,373 Total revenue 24,425,280 26,690,336 Operating costs and expenses: Lease operating expenses 8,052,471 6,571,394 Gathering system operating expenses 429,749 1,337,409 Development geological and geophysical expenses 12,910 83,748 Depletion, depreciation, amortization, and accretion 9,557,891 7,387,681 Impairment of proved properties 1,760,000 — Gain on sale of property — (1,375,000)Bad debt expense — — General and administrative expenses: Stock based compensation expense 849,631 510,460 Other general and administrative expenses 4,740,332 3,989,540 Total operating costs and expenses 25,402,984 18,505,232 Operating income (loss) (977,704) 8,185,104 Other income (expense): Interest income 43,540 158,879 Interest expense (114,515) (115,356)Gain on derivative contracts 2,503,655 4,246,057 Other income (expense) (4,385) 804 Other income, net 2,428,295 4,290,384 Net income before income tax expense 1,450,591 12,475,488 Income tax expense 575,420 3,777,489 NET INCOME$875,171 $8,697,999 Currency translation adjustments 10,169 12,548 NET COMPREHENSIVE INCOME$885,340 $8,710,547 Net income per share, basic$0.03 $0.32 Net income per share, diluted$0.03 $0.32 Weighted average number of shares outstanding, basic 25,122,501 27,129,430 Weighted average number of shares outstanding, diluted 25,122,501 27,129,430 EPSILON ENERGY LTD.Audited Consolidated Balance Sheets(All amounts stated in US$) December 31, December 31, 2020 2019ASSETS Current assets Cash and cash equivalents$13,270,913 $14,052,417 Accounts receivable 3,917,288 4,296,917 Fair value of derivatives — 1,999,802 Prepaid income taxes 89,285 1,641,501 Other current assets 500,583 433,687 Total current assets 17,778,069 22,424,324 Non-current assets Property and equipment: Oil and gas properties, successful efforts method Proved properties 133,902,723 130,819,256 Unproved properties 21,552,063 21,047,512 Accumulated depletion, depreciation, amortization and impairment (98,200,111) (89,255,035) Total oil and gas properties, net 57,254,675 62,611,733 Gathering system 42,202,644 41,445,225 Accumulated depletion, depreciation, amortization and impairment (32,101,624) (29,961,690) Total gathering system, net 10,101,020 11,483,535 Land 637,764 375,314 Buildings and other property and equipment, net 338,419 211,879 Total property and equipment, net 68,331,878 74,682,461 Other assets: Restricted cash 565,858 561,294 Prepaid drilling costs 379 1,124 Total non-current assets 68,898,115 75,244,879 Total assets$86,676,184 $97,669,203 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable trade$1,592,451 $2,828,495 Royalties payable 1,155,698 1,306,922 Accrued capital expenditures 139,766 627,356 Accrued gathering fees 512,796 373,929 Other accrued liabilities 1,002,935 858,188 Asset retirement obligation 106,734 1,503,978 Total current liabilities 4,510,380 7,498,868 Non-current liabilities Asset retirement obligation 3,043,509 1,405,877 Deferred income taxes 10,102,852 12,401,464 Total non-current liabilities 13,146,361 13,807,341 Total liabilities 17,656,741 21,306,209 Commitments and contingencies (Note 10) Shareholders' equity Common shares, no par value, unlimited shares authorized and 23,985,799 issued and outstanding at December 31, 2020 and 26,790,985 shares issued and outstanding at December 31, 2019. 131,730,401 140,808,923 Additional paid-in capital 7,879,119 7,029,488 Accumulated deficit (80,410,724) (81,285,895) Accumulated other comprehensive income 9,820,647 9,810,478 Total shareholders' equity 69,019,443 76,362,994 Total liabilities and shareholders' equity$86,676,184 $97,669,203 EPSILON ENERGY LTD.Audited Consolidated Statements of Cash Flows(All amounts stated in US$) Year ended December 31, 2020 2019Cash flows from operating activities: Net income$875,171 $8,697,999 Adjustments to reconcile net income to net cash provided by operating activities: Depletion, depreciation, amortization, and accretion 9,557,891 7,387,681 Impairment of proved properties 1,760,000 — Gain on sale/disposal of properties — (1,375,000)Gain on derivative contracts (2,503,655) (4,246,057)Cash received from settlements of derivative contracts 4,503,457 1,949,232 Settlement of asset retirement obligation (79) — Stock-based compensation expense 849,631 510,460 Deferred income tax expense (benefit) (2,298,612) 2,412,186 Changes in assets and liabilities: Accounts receivable 379,629 745,217 Prepaid income taxes and other current assets 1,485,320 (1,625,244)Accounts payable, royalties payable and other accrued liabilities 207,613 (1,471,460)Net cash provided by operating activities 14,816,366 12,985,014 Cash flows from investing activities: Acquisition of unproved oil and gas properties — (596,500)Additions to unproved oil and gas properties (504,551) (952,345)Additions to proved oil and gas properties (4,870,976) (9,411,916)Additions to gathering system properties (731,046) (366,059)Additions to land, buildings and property and equipment (419,125) (588,325)Prepaid drilling costs 745 (1,124)Proceeds from sale of leases — 1,375,000 Net cash used in investing activities (6,524,953) (10,541,269)Cash flows from financing activities: Buyback of common shares (9,078,522) (2,856,350)Exercise of stock options — 54,250 Net cash used in financing activities (9,078,522) (2,802,100)Effect of currency rates on cash, cash equivalents and restricted cash 10,169 12,548 (Decrease) in cash, cash equivalents and restricted cash (776,940) (345,807)Cash, cash equivalents and restricted cash, beginning of period 14,613,711 14,959,518 Cash, cash equivalents and restricted cash, end of period$13,836,771 $14,613,711 Supplemental cash flow disclosures: Income taxes paid$1,320,000 $2,794,422 Interest paid$114,515 $119,138 Non-cash investing activities: Change in proved properties accrued in accounts payable and accrued liabilities$(1,825,230) $1,464,965 Change in gathering system accrued in accounts payable and accrued liabilities$26,373 $(40,782)Asset retirement obligation asset additions and adjustments$37,722 $1,169,903 EPSILON ENERGY LTD.Adjusted EBITDA Reconciliation(All amounts stated in US$) Year ended December 31, 2020 2019Net income (loss)$875,171 $8,697,999 Add Back: Net interest (income) expense 70,975 (43,523)Income tax expense (benefit) 575,420 3,777,489 Depreciation, depletion, amortization, and accretion 9,557,891 7,387,681 Impairment expense 1,760,000 — Stock based compensation expense 849,631 510,460 (Gain) loss on derivative contracts net of cash received or paid on settlement 1,999,802 (2,296,825)Foreign currency translation (gain) loss 2,065 (437)Adjusted EBITDA$15,690,955 $18,032,844

  • Update: Epsilon Energy (NASDAQ:EPSN) Stock Gained 28% In The Last Year
    Simply Wall St.

    Update: Epsilon Energy (NASDAQ:EPSN) Stock Gained 28% In The Last Year

    There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if when you choose to...

  • Epsilon Energy Ltd. Announces Changes to the Board of Directors
    GlobeNewswire

    Epsilon Energy Ltd. Announces Changes to the Board of Directors

    HOUSTON, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (NASDAQ: EPSN) (“Epsilon” or the “Company”) announced today that its Board of Directors (the “Board”) has appointed Jason Stankowski (age 50) and David Winn (age 58) to the Board, effective January 29, 2021. Mr. Stankowski and Mr. Winn will serve an initial term expiring at Epsilon’s 2021 Annual General Meeting of Shareholders and will stand for reelection at that time. Epsilon also announced that Ryan Roebuck resigned from Epsilon’s Board, and corresponding committees of the Board, effective January 29, 2021. The Board has appointed Mr. Winn to serve as a member of the Audit Committee to replace Ryan Roebuck. The Board also appointed Mr. Stankowski to serve as a member of the Audit Committee, effective January 29, 2021. Mr. Stankowski was appointed to replace Mr. Finlayson who resigned from the Audit Committee, effective January 29, 2021. Mr. Finlayson was appointed to the Compensation Committee, effective January 29, 2021, to replace Mr. Roebuck. Michael Raleigh, the CEO of Epsilon, stated: “We very much appreciate Ryan’s service over the past 7 years as a Director of Epsilon. We welcome Jason and David to our Board. We are confident that both of them will provide a material contribution to the success of the Company.” Mr. Stankowski has been in the investment industry since 1992. He began his career at Prudential Securities in San Francisco and spent eight years in structured finance at CMA Capital Management, where he acted in a number of roles, including specializing in corporate retirement planning, structuring complex investment and financing structures for Fortune 1000 companies. Mr. Stankowski founded Clayton Partners LLC and The Clayton Capital Appreciation Fund, L.P. in 2003. He became designated as a Chartered Financial Analyst in 2003 and received a B.S. in Economics from the University of California, Santa Cruz in 1992. Mr. Winn recently retired from a 36 year career in public accounting that involved extensive board interaction. From 2003 until July 2020, Mr. Winn was an Audit Partner for Grant Thornton LLP, which is an independent audit, tax, and advisory firm and the U.S. member firm of Grant Thornton International Ltd. During his tenure, Mr. Winn served as audit department head, industry program leader, an engagement partner, quality control reviewer, and was a relationship partner to large clients. Mr. Winn has extensive Securities and Exchange Commission reporting experience with registration statements and annual and quarterly filings. Mr. Winn served as a Director for PricewaterhouseCoopers LLP during 2002-2003 and previously as a Partner with Arthur Andersen LLP from 1985-2002. Mr. Winn was awarded a B.B.A. from the University of Oklahoma in 1984 and is a Certified Public Accountant licensed in Texas and Oklahoma. He is also a member of AICPA. We believe that Mr. Stankowski and Mr. Winn are qualified to serve as members of our Board as a result of their extensive technical and business experience. About Epsilon Epsilon Energy Ltd. is a North American onshore natural gas production and midstream company with a focus on the Marcellus Shale of Pennsylvania. Epsilon’s Common Shares trade on NASDAQ under the symbol EPSN. For more information, please visit the Company’s website at www.epsilonenergyltd.com or contact: Michael RaleighChief Executive Officer281-670-0002Michael.Raleigh@EpsilonEnergyLTD.com Copies of financial data and other publicly filed documents are filed on SEDAR at www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml under “Epsilon Energy Ltd.” or on the Company's website. Cautionary Note Regarding Forward-Looking Statements Certain statements in this news release may constitute forward-looking information or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"), which reflect the expectations of management regarding the future growth, results of operations, performance and business prospects and opportunities of the Company and its projects. These statements, which are based on certain assumptions and describe the Company's future plans, strategies and expectations, can generally be identified by the use of the words "plans," "expects," "does not expect," "is expected," "budget," "estimates," "forecasts," "intends," "anticipates," or "does not anticipate," "believes," "outlook," "objective," or "continue," or equivalents or variations, including negative variations, of such words and phrases, or state that certain actions, events or results, "may," "could," "would," "should," "might," or "will," be taken, occur or be achieved. Examples of such statements in this press release include, but are not limited, to statements with respect to the number of Common Shares expected to be taken up under the Offer, and the purchase price for the Common Shares expected to be taken up under the Offer. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. Please refer to the factors discussed under "Risk Factors" and "Forward-Looking Information" in the Company's periodic reports as filed with the Securities and Exchange Commission from time to time for a detailed discussion of the risks and uncertainties affecting the Company. These risks and uncertainties include, but are not limited to, potential risks and uncertainties relating to the ultimate geographic spread of the novel coronavirus (COVID-19), the severity of the disease, the duration of the COVID-19 outbreak, actions that may be taken by governmental authorities to contain the COVID-19 outbreak or to treat its impact, the potential negative impacts of COVID-19 on the global economy and financial markets and any resulting impact on the satisfaction of the conditions of the Offer such that the Company may not be required to purchase the Common Shares and/or may terminate the Offer. Although the forward-looking statements contained in this news release are based upon what are believed to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. These forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to update or revise them to reflect new events or circumstances. For the avoidance of doubt, the above-mentioned Uniform Resource Locators (“URLs”) given in respect of web-site addresses are inactive textual references only and it is not intended to incorporate the contents of any such web sites into this news release nor should the contents of such web sites be deemed to be incorporated into this news release.