EPSN - Epsilon Energy: Buy The Midstream And Get The Upstream Dirt Cheap
Epsilon Energy (EPSN) just reported the first quarter operating results. The midstream compression and gathering reported revenues of $2.4 million and operating costs of $.3 million. This makes a nice gross operating margin of $2.1 million before depreciation, administrative expenses, and other odds and ends. That result lends a solid argument to the value of the business as stated by management.
Source: Epsilon Energy Corporate Presentation September 2018
About one-third of the company revenue accounts for more than three-fourths of the company market value. The nice part about that value is the no