Epsilon Energy Q1 Earnings Call Highlights

Epsilon Energy (NASDAQ:EPSN) said it remains connected way with its 2026 improvement program aft a archetypal 4th marked by stronger state pricing, a full-quarter publication from recently acquired Powder River Basin assets and continued concern successful oil-weighted projects.

Chief Executive Officer Jason Stabell told investors the institution is “in execution mode” and expects to present “meaningful accumulation maturation year-over-year,” with an oil-weighted ramp successful the Permian and Powder River basins opening successful the 2nd 4th and expanding done the 2nd fractional of the year.

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Stabell said the company’s ninth good successful its Permian project, its archetypal 3-plus-mile Barnett well, is expected to travel online successful the 2nd quarter. In the Powder River Basin, 2 Niobrara drilled-but-uncompleted wells acquired successful past year’s transaction are scheduled to beryllium completed successful June and turned to income successful the 3rd quarter. A three-well Parkman improvement is expected to travel successful the 4th quarter.

First-quarter results affected by hedge losses

Chief Financial Officer Andrew Williamson said Epsilon spent conscionable nether $5 cardinal successful superior expenditures done March, chiefly tied to information successful drilling the 3-mile Barnett good successful Ector County and facilities enactment up of Parkman drilling successful Campbell County, Wyoming.

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Williamson said the institution expects to put astatine a higher gait implicit the remaining 3 quarters of the twelvemonth to enactment the oil-weighted maturation outlined by management. He said the full-year concern program is designed to support Epsilon’s people leverage illustration of 1.0x to 1.5x nett indebtedness to adjusted EBITDA.