Epsilon Energy Ltd. ( (EPSN) ) has released its Q3 earnings. Here is a breakdown of the information Epsilon Energy Ltd. presented to its investors.
Epsilon Energy Ltd. is a North American company engaged in the production and gathering of natural gas and oil, with operations spanning Pennsylvania, Texas, Alberta, New Mexico, and Oklahoma. The company is known for its diversified asset portfolio in the energy sector.
In its third quarter of 2024, Epsilon Energy Ltd. reported mixed financial results, highlighting a continued growth in liquids volume, revenue, and cash flow from its Permian assets, offsetting the challenges faced in the natural gas segment due to a depressed pricing environment.
Key financial metrics from the quarter include a slight decline in total revenue to $7.29 million from $6.31 million year-over-year. The company saw a notable increase in oil revenue by 329% compared to the previous year, despite a 65% drop in midstream revenues. Adjusted EBITDA was reported at $3.74 million, showing a moderate decline both quarter-over-quarter and year-over-year. Capital expenditures were significantly reduced to $3.9 million, primarily focused on drilling activities in Texas and Alberta.
Looking ahead, Epsilon Energy Ltd.’s management remains optimistic about future growth prospects, particularly with an anticipated improvement in natural gas fundamentals expected to bolster production and cash flow. The company’s strategic entry into Alberta, Canada, is seen as a promising opportunity to expand its asset base, with plans to enhance investment in the region in 2025. Epsilon’s robust asset diversity and financial strength continue to position it favorably within the small-cap energy market.
