Epsilon Energy Ltd. (EPSN)
NASDAQ:EPSN
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Earnings Data
Report Date
Aug 06, 2026TBA (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
―Last Year’s EPS
0.21Same Quarter Last Year
Based on 0 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call communicates a constructive growth story: a clearly articulated oil-weighted production ramp across the Permian and Powder River Basin, measurable well-level forecast rates, targeted CapEx programs with project-level budgets, and active balance sheet strengthening (roughly $10M debt paydown, asset monetizations). Near-term headwinds include material unrealized hedge losses that depressed reported Q1 results, elevated unit operating costs tied to recent asset integration, and tightening service markets that could raise project costs. Management has multiple operational efficiency initiatives (compressor downsizing, rod pump conversions, chemical program optimization) expected to materially improve margins and unit costs as new volumes come online. Overall, positives around execution, balance sheet actions, and a defined multi-basin development pipeline outweigh the near-term accounting and cost pressures.Company Guidance
Clear Oil-Weighted Production Growth Plan
Company expects meaningful year-over-year production growth beginning in Q2 with an oil-weighted ramp in the Permian and Powder River Basin (PRB). Key milestones: Permian 3+ mile Barnett well expected online in Q2 (net forecast ~226 BOE/day) with two additional similar laterals planned later in the year; two Niobrara DUC completions to be completed in June and turned to sales in Q3; a 3-well Parkman development planned for Q4. These projects position new volumes to capture higher oil prices and to carry production growth into 2027.
Meaningful Projected Well-Level Production Rates
Type-curve and pre-completion rate expectations include a combined net peak of ~475 BOE/day (0.7 NRI) for the two Niobrara laterals (July pre-completion peak) and forecasted Parkman peak rates of 1,600 BOE/day if company retains full (95%) working interest (or ~1,060 BOE/day assuming ~33% sell-down). Barnett new well net forecast of ~226 BOE/day; Parkman gross CapEx and design are in place to drive these rates.
Strengthened Balance Sheet and Liquidity Actions
Since closing the acquisition, company paid down $10.0 million of debt to a current outstanding balance of $40.5 million, representing roughly a 20% reduction in outstanding debt. Management is targeting a disciplined leverage profile of 1.0x to 1.5x net debt to adjusted EBITDA. Recent monetizations include sale of an overriding royalty package for $3.9 million (~6x expected next-12-month cash flow from those assets) and an office building under contract for $3.0 million.
Adjusted Earnings and Commodity Tailwinds
Adjusted (non-GAAP) earnings for the quarter were $0.29 per share after excluding unrealized/noncash hedge losses. The quarter benefited from strong gas pricing and a full quarter contribution from the recently acquired Powder River Basin assets (PDP contribution).
Capital Program Defined with Conservative Early Spend
Q1 CapEx was just under $5 million (primarily participation in the 3-mile Barnett and facilities prep for Parkman). Planned higher investment over the next three quarters is rightsized to maintain the target leverage profile. Specific project budgets include $6.8 million net CapEx to complete the two Niobrara wells and gross CapEx of $23 million for the 3-well Parkman program (with potential partial sell-down options).
Operational Efficiency Initiatives with Measurable Savings
Multiple optimization programs are expected to reduce per-unit costs and boost production efficiency: downsizing rental gas-lift compressors for ~35% monthly savings on identified units (no productivity loss expected), converting selected gas-lift wells to rod pumps (pilot showed >10% average production increase per converted well), and production chemical program optimization to lower unit treatment costs beginning next month.
Marcellus Development and Midstream Throughput Upside
Operator completed drilling of five Marcellus wells (0.4 net) with completions planned in H2 and first production scheduled in December, forecasted to add ~6.5 MMcf/d. Four new drills are forecasted to increase midstream throughput by approximately 86 MMcf/d upon initial completion.
EPSN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EPSN Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 13, 2026 | $6.08 | $6.28 | +3.26% |
Mar 24, 2026 | $6.13 | $6.13 | 0.00% |
Nov 05, 2025 | $4.64 | $4.48 | -3.32% |
Aug 13, 2025 | $6.18 | $5.22 | -15.46% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Epsilon Energy Ltd. (EPSN) report earnings?
Epsilon Energy Ltd. (EPSN) is schdueled to report earning on Aug 06, 2026, TBA (Confirmed).
What is Epsilon Energy Ltd. (EPSN) earnings time?
Epsilon Energy Ltd. (EPSN) earnings time is at Aug 06, 2026, TBA (Confirmed).
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