Epsilon Energy Ltd. (EPSN)
NASDAQ:EPSN
Want to see EPSN full AI Analyst Report?
Top Page
Epsilon Energy
(NASDAQ:EPSN)
Select Model
Select Model
Rating:61Neutral
Price Target:
$6.00
▲(26.05% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by a mixed financial profile—strong cash generation and conservative leverage but current losses and volatile profitability. Earnings call commentary improves the outlook via a defined production ramp and continued balance sheet actions, while weak technical momentum and a negative P/E (partly offset by a solid dividend yield) temper the overall rating.
Positive Factors
Free cash flow generation
Sustained positive operating and free cash flow provides durable internal funding for planned multi-basin CapEx, debt paydowns and the declared dividend. Even if cash performance is choppy, recurring FCF reduces dependence on external financing and supports execution of growth projects.
Negative Factors
Unprofitable and volatile earnings
Negative and volatile net income reduces predictability of returns and weakens long-term ROE. Intermittent losses can constrain retained earnings, limit reinvestment capacity, and make capital allocation (dividends, buybacks, or growth spend) more sensitive to commodity cycles and accounting items like unrealized hedge impacts.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained positive operating and free cash flow provides durable internal funding for planned multi-basin CapEx, debt paydowns and the declared dividend. Even if cash performance is choppy, recurring FCF reduces dependence on external financing and supports execution of growth projects.
Read all positive factors
Epsilon Energy (EPSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.00M
Dividend Yield5.24%
Average Volume (3M)171.68K
Price to Earnings (P/E)―
Beta (1Y)0.12
Revenue Growth53.71%
EPS Growth-303.17%
CountryUS
Employees10
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.37
Shares Outstanding30,248,617
10 Day Avg. Volume122,165
30 Day Avg. Volume171,677
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.85
Price to Sales (P/S)2.07
P/FCF Ratio20.44
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit4.49
Enterprise Value/Ebitda43.07
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Epsilon Energy Business Overview & Revenue Model
Company Description
Epsilon Energy Ltd. is an energy firm primarily involved in the oil and natural gas sector. The company's operations within the United States encompass the sourcing, development, collection, and extraction of hydrocarbon reserves. Its business mod...
How the Company Makes Money
Epsilon Energy primarily makes money through (1) upstream oil and natural gas production and (2) midstream natural gas gathering services. Upstream revenues are generated by selling produced natural gas and crude oil (and associated natural gas li...
Epsilon Energy Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
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.Positive Updates
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.
Negative Updates
Material Unrealized Hedge Losses Depressed Q1 Reported Results
Quarter was materially impacted by unrealized/noncash hedge losses driven by a dramatic move in oil prices, creating a timing mismatch between higher commodity pricing (realized in future quarters) and P&L recognition. Reported GAAP results were negatively affected despite adjusted EPS of $0.29/share.
Read all updates
Q1-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management guided to an oil-weighted production ramp starting in Q2 and building through the back half of 2026, driven by a Permian 3+ mile Barnett well expected online in Q2 (net ~226 BOE/d), two Niobrara DUC completions in June turning to sales in Q3 (0.7 net revenue interest; pre‑completion peak ~475 BOE/d in July; net completion CapEx $6.8M), and a 3‑well Parkman development in Q4 (gross CapEx ~$23M; peak ~1,060 BOE/d assuming ~33% sell‑down or ~1,600 BOE/d if Epsilon retains ~95% WI); total company CapEx through March was just under $5M with higher investment planned over the next three quarters. Financial targets include maintaining net debt/adjusted EBITDA of 1.0–1.5x, having reduced debt by $10M to $40.5M, adjusted Q1 EPS of $0.29 (ex‑unrealized hedge losses), and monetizations including a PA ORRI sale for $3.9M (≈6x NTM cash flow; ~1.5% of upstream revenue) and an office sale under contract for $3M. Operational metrics and initiatives: Parkman/PRB preconstruction complete, an Inot water‑supply facility budgeted at $3.5M for a planned 6‑well 2027 program, compressor downsizing to capture ~35% monthly savings on >10 units, rod‑pump conversions averaging >10% production lift per well, expected per‑unit chemical cost reductions beginning next month, Marcellus 5 wells drilled (0.4 net) with $3.8M CapEx preapproved and first production in December forecast to add ~6.5 MMcf/d (and ~86 MMcf/d incremental midstream throughput from four wells), and an expected Powder River LOE decline from high‑teens/low‑20s $/BOE to mid‑teens as volumes scale, lowering company unit LOE by several dollars concentrated in Q4.Epsilon Energy Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.02M | 51.59M | 31.52M | 30.73M | 69.96M | 42.40M |
| Gross Profit | 29.96M | 24.54M | 11.81M | 14.18M | 54.11M | 27.15M |
| EBITDA | 3.13M | 7.36M | 13.79M | 17.91M | 54.00M | 22.80M |
| Net Income | -9.09M | -5.80M | 1.93M | 6.95M | 35.35M | 11.63M |
Balance Sheet | ||||||
| Total Assets | 226.42M | 228.24M | 120.45M | 124.04M | 123.86M | 99.46M |
| Cash, Cash Equivalents and Short-Term Investments | 7.91M | 8.96M | 6.52M | 32.18M | 45.24M | 26.50M |
| Total Debt | 542.84K | 51.11M | 476.91K | 563.38K | 35.30K | 0.00 |
| Total Liabilities | 102.30M | 102.55M | 23.73M | 23.43M | 19.62M | 20.20M |
| Stockholders Equity | 124.12M | 125.68M | 96.73M | 100.61M | 104.25M | 79.26M |
Cash Flow | ||||||
| Free Cash Flow | 10.09M | 5.22M | -19.73M | -457.78K | 29.94M | 15.12M |
| Operating Cash Flow | 21.86M | 20.62M | 16.83M | 18.19M | 38.01M | 20.01M |
| Investing Cash Flow | -59.09M | -61.64M | -16.66M | -38.38M | -7.87M | -4.44M |
| Financing Cash Flow | 38.33M | 43.68M | -7.32M | -11.73M | -11.35M | -2.34M |
Epsilon Energy Technical Analysis
Negative
4.76
Price Trends
6.06
Negative
5.66
Negative
5.24
Positive
Market Momentum
-0.09
Positive
40.49
Neutral
29.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPSN, the sentiment is Negative. The current price of 4.76 is below the 20-day moving average (MA) of 5.95, below the 50-day MA of 6.06, and below the 200-day MA of 5.24, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 40.49 is Neutral, neither overbought nor oversold. The STOCH value of 29.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPSN.
Epsilon Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $234.41M | 3.57 | 13.38% | ― | 37.77% | 13.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
61 Neutral | $170.00M | ― | -8.07% | 5.24% | 53.71% | -303.17% | |
60 Neutral | $287.83M | ― | -107.19% | ― | -4.90% | -2372.77% | |
56 Neutral | $149.23M | ― | -5.44% | 13.52% | -3.16% | -313.41% | |
54 Neutral | $179.19M | 15.24 | 2.78% | ― | -21.23% | -41.25% | |
44 Neutral | $115.80M | -1.41 | -277.83% | ― | -23.13% | -316.13% |
* Energy Sector Average
EPSN
Epsilon Energy
5.62
-2.30
-29.02%
EPM
Evolution Petroleum
4.16
-0.44
-9.62%
GTE
Gran Tierra Energy
8.14
2.20
37.04%
AMPY
Amplify Energy
4.34
0.94
27.65%
EP
Empire Petroleum
2.91
-2.71
-48.18%
IMPP
Imperial Petroleum
5.25
1.85
54.41%
Epsilon Energy Corporate Events
DividendsPrivate Placements and Financing
Epsilon Energy Declares Quarterly Dividend, Highlights Capital Returns
Positive
Jun 1, 2026
Epsilon Energy Ltd., a North American onshore natural gas and oil producer with gathering operations across several major basins, announced on June 1, 2026, that its board declared a quarterly dividend of $0.0625 per share, equivalent to $0.25 per...
Executive/Board ChangesShareholder Meetings
Epsilon Energy Shareholders Endorse Board, Auditor and Compensation
Positive
May 20, 2026
Epsilon Energy held its 2026 Annual General Meeting of shareholders on May 20, 2026, with approximately 74.66% of outstanding common shares represented, and shareholders approved setting the board at eight directors while re-electing all eight nom...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.