Epsilon Energy Reports 59% Revenue Growth to $11.6 Million in Q2 2025

Epsilon Energy Ltd. reported significant financial growth in its latest 10-Q filing for the quarter ending June 30, 2025. The company achieved total revenues of $11.6 million for the three months ended June 30, 2025, a 59% increase from $7.3 million in the same period last year. For the first half of 2025, revenues reached $27.8 million, up 82% from $15.3 million in the first half of 2024. The net income for the second quarter was $1.6 million, compared to $0.8 million in the prior year, while the net income for the first half of 2025 was $5.6 million, significantly higher than $2.3 million in the same period last year.

The company noted several operational improvements contributing to this financial performance. Epsilon's natural gas production from its non-operated wells in Pennsylvania increased by 107% year-over-year for the second quarter, with realized natural gas prices rising by 76%. The company gathered and delivered 11.2 Bcf gross through its Auburn Gas Gathering System during the quarter, reflecting a robust operational capacity. However, production from the Permian Basin saw a decline, with total net revenue interest production decreasing by 35% in the second quarter compared to the previous year.

Strategically, Epsilon Energy has been active in expanding its asset base. The company announced plans to acquire Peak Exploration and Production LLC and Peak BLM Lease LLC, which would add approximately 40,500 net acres in the Powder River Basin, producing 2.2 MBoepd. This acquisition is subject to shareholder approval and is expected to close in the fourth quarter of 2025. Additionally, Epsilon has maintained a strong balance sheet, with a working capital surplus of $9.1 million as of June 30, 2025, an increase from $7.2 million at the end of 2024.

In terms of operational metrics, Epsilon's total assets increased to $123.6 million from $120.5 million at the end of 2024. The company reported a total of 22,017,405 common shares outstanding as of June 30, 2025, with no shares repurchased during the first half of the year. Epsilon's management remains optimistic about future growth, citing a commitment to disciplined capital allocation and a focus on shareholder returns through dividends and potential share buybacks. The company anticipates that its current cash balance, available borrowings, and cash flows from operations will be sufficient to meet its cash requirements for at least the next twelve months.