Epsilon Energy (EPSN) Q4 2025 earnings summary

Executive summary

• Achieved 75% year-over-year growth in Adjusted EBITDA and 54% increase in production for 2025, driven by organic growth and the Peak Companies acquisition, expanding into the Powder River Basin.

• Diversified asset base across Marcellus, Permian, Powder River, and Western Canada, focusing on high-return projects and non-operated partnerships.

• Proved developed producing reserves grew 69%, and total proved reserves increased 86% year-over-year, driven by the Wyoming acquisition.

• Maintained a fixed dividend policy, declared 17th consecutive quarterly dividend, and renewed share buyback program for up to 10% of shares.

• Realized strong natural gas pricing in Pennsylvania in early 2026, with over $4.8 million in net sales in one week.

Financial highlights

• Total revenue for 2025 was $51.6M, up 64% year-over-year; Q4 revenue was $14.8M, up 65% sequentially.

• Adjusted EBITDA for 2025 reached $30.7M, a 75% increase year-over-year; production up 54% year-over-year.

• Adjusted net income for 2025 was $21.3M ($0.92/share), compared to $3.6M ($0.17/share) in 2024.

• Net loss for 2025 was $(4.8)M, due to one-time charges including asset sales and impairments.

• Transaction costs from the Peak acquisition totaled $6.9 million, with half unrelated to the deal and adjusted in share consideration.

Outlook and guidance

• Portfolio performing well in early 2026, with 60% of current PDP production hedged for the year.

• 2026 plans include participation in up to 4 gross Barnett wells (1 net), with the first 3-mile lateral well expected online by June.

• In the Powder River Basin, plan to complete 2 gross Niobrara DUCs and drill/complete up to 3 gross Parkman wells in 2026.

• Targeting average annual leverage ratio below 1.5x while maintaining fixed dividend and per-share growth in earnings, cash flow, and production.

• Plans to increase liquidity through asset sales and optimize capital allocation.