Epsilon Energy Reports 102% Revenue Growth to $16.2 Million in Q1 2025

Epsilon Energy Ltd. reported significant financial growth in its latest quarterly results, with total revenues reaching $16.2 million for the three months ended March 31, 2025, a 102% increase from $8.0 million in the same period last year. The surge in revenue was primarily driven by a substantial rise in natural gas sales, which accounted for $10.3 million, up from $2.8 million in the prior year. The company also noted an increase in oil and condensate revenue, which rose to $3.0 million from $2.5 million, reflecting higher production volumes and improved pricing.

The company's net income for the first quarter of 2025 was $4.0 million, or $0.18 per share, compared to $1.5 million, or $0.07 per share, in the same quarter of 2024. This increase in profitability was attributed to higher production levels, particularly in Pennsylvania, where natural gas production increased by 63% year-over-year. Epsilon's operating income also saw a significant rise, reaching $7.2 million, compared to $1.4 million in the previous year, highlighting improved operational efficiency.

In terms of strategic developments, Epsilon Energy has been actively expanding its asset base. The company recently acquired a 25% interest in three producing wells and 3,620 gross undeveloped acres in Ector County, Texas, and a 50% working interest in 14,243 gross undeveloped acres in Alberta, Canada. These acquisitions are part of Epsilon's strategy to enhance its production capabilities and diversify its asset portfolio across key North American basins. The company also reported a total capital expenditure of $7.7 million during the quarter, primarily focused on well costs and leasehold investments.

Operationally, Epsilon Energy's customer base has expanded, with the company selling natural gas to 38 unique customers in the first quarter of 2025, compared to 23 in the same period last year. The company gathered and delivered 11.6 Bcf of gas through its Auburn Gas Gathering System, which is a 129 MMcf/d throughput. The company’s total assets increased to $125.5 million as of March 31, 2025, up from $120.5 million at the end of 2024, reflecting the growth in both current and non-current assets.

Looking ahead, Epsilon Energy maintains a positive outlook, expecting its current cash balance, available borrowings, and cash flows from operations to be sufficient to meet its cash requirements for at least the next twelve months. The company is committed to disciplined capital allocation, including shareholder returns through dividends and share buybacks, while continuing to explore new opportunities in various onshore North American basins.