Epsilon Energy Ltd. (EPSN) Earnings Call Transcripts

Epsilon Energy Ltd.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Epsilon Energy Ltd. reported a strong start to the year with a focus on production growth, particularly in the oil-weighted Permian and Powder River basins. Revenue was positively impacted by strong gas pricing and contributions from newly acquired assets, although earnings were affected by noncash hedge losses, leading to an adjusted EPS of $0.29. Management signaled confidence in achieving meaningful production growth in the second half of the year, supported by a disciplined approach to capital expenditures and balance sheet management.

Reported metrics

Guidance from management

Epsilon expects to maintain a strong focus on production growth in its oil-weighted assets while managing capital expenditures to maintain a leverage profile of 1 to 1.5x net debt to adjusted EBITDA. They anticipate significant production increases in the second half of 2026 and into 2027.

What management said

Great. Thanks for the question, Anthony. Before I dive into that, I think there's one point we'd like to clarify on the prepared remarks and it relates to the Parkman CapEx that we had. I think Henry quoted $23 million of gross CapEx, and then he quoted a rate of close to 1,100 BOE per day on the rate. We're actually looking, as we always do, at the possibility of selling down some of that 95% working interest. And s...

Right. So the $23 million is our current ownership and what would be the capital expectations for that 3-well development. Should we keep all of that interest, the peak rates are estimated to be 1,600 barrels a day equivalent, not the lower 1,060 as was recorded in our comments.

What analysts pressed on

Analysts expressed concerns regarding the tightening rig availability and rising costs, which could impact future development timelines and capital efficiency. There were also questions about the potential for further asset divestitures and how the company plans to optimize its portfolio moving forward.

Main topics on the call

• Production Growth Outlook — Management indicated that they expect 'meaningful production growth year-over-year' starting in the second quarter, driven by new wells coming online in the Permian and Powder River basins. This growth is anticipated to ...
• Capital Expenditure Plans — Epsilon plans to increase capital expenditures significantly over the next three quarters, with a focus on oil-weighted growth. The total gross CapEx for the upcoming Parkman development is estimated at $23 million.
• Debt Reduction Efforts — The company has successfully reduced its outstanding debt by $10 million since the acquisition, bringing the total to $40.5 million. This reflects a disciplined approach to maintaining a strong balance sheet.
• Operational Efficiency Initiatives — Epsilon is implementing several cost-saving measures, including optimizing gas lift compressors and converting gas-lifted wells to rod pumps, which are expected to increase production rates by over 10% per well and lower...

Read the full Epsilon Energy Ltd. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 11 Epsilon Energy Ltd. earnings call transcripts on record, spanning August 11, 2023 to May 14, 2026. Based on this history, Epsilon Energy Ltd. reports quarterly. The most recent call on file is dated May 14, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

EPSN

Exchange

NasdaqGM

Country

US

Sector

Energy

Industry

Oil, Gas and Consumable Fuels

Calls on record

11

First call

August 11, 2023

Most recent

May 14, 2026

Reporting cadence

quarterly