EPSN Earnings Prediction
The chart below shows how EPSN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EPSN sees a -0.73% change in stock price 10 days leading up to the earnings, and a +4.11% change 10 days following the report. On the earnings day itself, the stock moves by -0.14%. This data can give you a slight idea of what to expect for the next quarter's release.
EPSN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
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Gross Margin
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Operating Margin
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Net Margin
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EPS
-0.04
-133.33%
-300.00%
No Data Available
EPSN Earnings Analysis
Epsilon Energy Ltd Corporation (EPSN.O) Earnings Conference Call
Positive
Oil Production Surge: In 2024, Epsilon Energy achieved a 180% year-on-year increase in oil production, significantly contributing to cash flows.
Permian Region Cash Flow Contribution: The Permian region contributed over 60% to the company's cash flows in 2024, showcasing strong performance in this area.
New Project in Alberta: Epsilon established a new project area in Alberta, Canada, with a joint venture that adds multi-year economic inventory for a $7 million drilling carry.
Marcellus Production Surge: The company reported a substantial increase in Marcellus production, with net revenue interest production in Pennsylvania up 85% from 2024's daily average.
Marcellus Pricing Improvement: Epsilon's Marcellus pricing improved significantly, with realized prices over $3.9 per Mcf net to wellhead, up 100% from the previous winter.
Strong Liquidity Position: The company has over $50 million in liquidity, including an undrawn credit facility, positioning it well for future investments and shareholder returns.
Proved Reserves Growth: Epsilon grew proved reserves by approximately 20% year-on-year, despite pricing headwinds, indicating strong operational resilience.
Barnett Development Potential: The company expects to have a significant runway for development in the Barnett area, with 14,000 gross undeveloped acres and up to 40 remaining two-mile Barnett locations.
Negative
Natural Gas Market Challenges: The company faced a challenging natural gas market in the Marcellus with sub $2 per Mcf net wellhead pricing, leading to production curtailments estimated at 20% to 25% of net total in the basin.
Oil Production Surge Challenges: Despite a 180% year-on-year increase in oil production, the company had to weather an oversupplied gas market, indicating potential volatility in future earnings.
Gas Gathering System Pressure Change: The company reported that the Auburn gas gathering system operating pressure was lowered, which could impact future production and throughput despite no immediate effect on end-of-year reserves.
Cautious Capital Allocation: The company has not been active in share repurchases year-to-date, indicating a cautious approach to capital allocation despite having a program in place.
Natural Gas Hedge Exposure: The hedge position for natural gas is only covering roughly 30% of expected production through October, which may expose the company to market fluctuations beyond that period.
