Epsilon Announces Third Quarter 2025 Results

HOUSTON, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“ Epsilon ” or the “ Company ”) (NASDAQ: EPSN) today reported third quarter 2025 financial and operating results.

Third Quarter 2025 Highlights:

Operations Update:

Epsilon’s capital expenditures were $2.9 million for the quarter ended September 30, 2025. These were primarily related to the completion of 1 gross (0.25 net) well in Texas. The well in Texas is the eighth Barnett well developed in the project and is performing in-line with pre-drill expectations with a 30-day gross IP rate of over 870 Boe/d (82% oil). Offset wells were shut-in for approximately 20 days during the quarter during the completion, with a net impact of approximately 3,000 net barrels.

In the Marcellus, operator elected shut-ins occurred in the second half of the quarter in response to lower gas prices during the shoulder season, with a net impact of approximately 110 MMcf.

Jason Stabell, Epsilon’s Chief Executive Officer, commented, “Over the last several weeks, net wellhead pricing in the Marcellus has moved up strongly as we exit the shoulder season, providing a strong setup for enhanced cash flows in the coming quarters. In the Permian, we continue to deliver good results. The eighth well in the project was brought online in September and performance is consistent with other wells developed in the project area. The next well in Texas is planned for development in the first quarter next year.

The big news during the quarter was our announcement of the acquisition of the operated business in the Powder River Basin. This transaction represents a major milestone in our strategic objectives to add scale, capital control and highly economic inventory at an attractive valuation. The transaction complements our non-operated portfolio and delivers on all these objectives. Integration planning and due diligence have progressed on schedule. We are excited to welcome a capable operating team from Peak and a premier long term focused energy investor in Yorktown as an anchor shareholder. The transaction is expected to close in November.”

Current Hedge Book:

Earning’s Call:

The Company will host a conference call to discuss its results on Thursday, November 6, 2025, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time).

Interested parties in the United States and Canada may participate toll-free by dialing (833) 816-1385. International parties may participate by dialing (412) 317-0478. Participants should ask to be joined to the “Epsilon Energy Third Quarter 2025 Earnings Conference Call.”

A webcast can be viewed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=Z4tohzO8 . A webcast replay will be available on the Company’s website ( www.epsilonenergyltd.com ) following the call.

About Epsilon

Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico, and Oklahoma.

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.

Contact Information:

281-670-0002

Jason Stabell
Chief Executive Officer
Jason.Stabell@EpsilonEnergyLTD.com

Andrew Williamson
Chief Financial Officer
Andrew.Williamson@EpsilonEnergyLTD.com

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 with 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.

Epsilon defines Adjusted Net Income Per Share as reported U.S. GAAP Net Income Per Share adding back expenses related to (1) transaction expenses related to the Peak acquisitions and (2) impairments of natural gas and oil properties. Adjusted Net Income Per Share 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.