{"id":994491,"date":"2026-08-12T18:38:38","date_gmt":"2026-08-12T22:38:38","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/epsilon-announces-second-quarter-2026-results-and-2026-production-and-capital-guidance\/"},"modified":"2026-08-12T18:38:38","modified_gmt":"2026-08-12T22:38:38","slug":"epsilon-announces-second-quarter-2026-results-and-2026-production-and-capital-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/epsilon-announces-second-quarter-2026-results-and-2026-production-and-capital-guidance\/","title":{"rendered":"Epsilon Announces Second Quarter 2026 Results and 2026 Production and Capital Guidance"},"content":{"rendered":"
\n

HOUSTON, Aug. 12, 2026 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (\u201cEpsilon<\/strong>\u201d or the \u201cCompany<\/strong>\u201d) (NASDAQ: EPSN) today reported second quarter 2026 financial and operating results.<\/p>\n

\n
\n Q2 2026 Highlights:<\/u>
\n <\/strong>\n <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Epsilon – Q2 2026<\/strong>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\n Q2 2026<\/strong>\n <\/td>\n\n Q1 2026<\/strong>\n <\/td>\n\n Q2 2025<\/strong>\n <\/td>\n\n QoQ%<\/strong>\n <\/td>\n\n YoY%<\/strong>\n <\/td>\n<\/tr>\n
NRI Production\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gas\u00a0<\/td>\nMMcf<\/td>\n2,082<\/td>\n2,482<\/td>\n2,752<\/td>\n\n -16%<\/em>\n <\/td>\n\n -24%<\/em>\n <\/td>\n<\/tr>\n
Oil<\/td>\nMBbl<\/td>\n126<\/td>\n136<\/td>\n44<\/td>\n\n -8%<\/em>\n <\/td>\n\n 184%<\/em>\n <\/td>\n<\/tr>\n
NGL<\/td>\nMBbl<\/td>\n42<\/td>\n42<\/td>\n8<\/td>\n\n -1%<\/em>\n <\/td>\n\n 437%<\/em>\n <\/td>\n<\/tr>\n
Total\u00a0<\/td>\nMMcfe<\/td>\n3,088<\/td>\n3,554<\/td>\n3,064<\/td>\n\n -13%<\/em>\n <\/td>\n\n 1%<\/em>\n <\/td>\n<\/tr>\n
Daily Total\u00a0<\/td>\nMMcfe\/d<\/td>\n33.9<\/td>\n39.5<\/td>\n33.7<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Revenues\u00a0<\/td>\n$M<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gas\u00a0<\/td>\n\u00a0<\/td>\n3,767<\/td>\n13,403<\/td>\n6,910<\/td>\n\n -72%<\/em>\n <\/td>\n\n -45%<\/em>\n <\/td>\n<\/tr>\n
Oil<\/td>\n\u00a0<\/td>\n11,771<\/td>\n9,462<\/td>\n2,725<\/td>\n\n 24%<\/em>\n <\/td>\n\n 332%<\/em>\n <\/td>\n<\/tr>\n
NGL<\/td>\n\u00a0<\/td>\n1,387<\/td>\n1,073<\/td>\n145<\/td>\n\n 29%<\/em>\n <\/td>\n\n 856%<\/em>\n <\/td>\n<\/tr>\n
Midstream 1<\/sup>\u00a0<\/td>\n\u00a0<\/td>\n1,337<\/td>\n1,658<\/td>\n1,845<\/td>\n\n -19%<\/em>\n <\/td>\n\n -28%<\/em>\n <\/td>\n<\/tr>\n
Total\u00a0<\/td>\n\u00a0<\/td>\n18,262<\/td>\n25,596<\/td>\n11,625<\/td>\n\n -29%<\/em>\n <\/td>\n\n 57%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Realized Prices 2<\/sup><\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Gas\u00a0<\/td>\n$\/Mcf<\/td>\n1.81<\/td>\n5.40<\/td>\n2.51<\/td>\n\n -66%<\/em>\n <\/td>\n\n -28%<\/em>\n <\/td>\n<\/tr>\n
Oil\u00a0<\/td>\n$\/Bbl<\/td>\n93.73<\/td>\n69.39<\/td>\n61.73<\/td>\n\n 35%<\/em>\n <\/td>\n\n 52%<\/em>\n <\/td>\n<\/tr>\n
NGL<\/td>\n$\/Bbl<\/td>\n32.94<\/td>\n25.32<\/td>\n18.51<\/td>\n\n 30%<\/em>\n <\/td>\n\n 78%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adj. EBITDA<\/td>\n$M<\/td>\n5,818<\/td>\n13,395<\/td>\n7,396<\/td>\n\n -57%<\/em>\n <\/td>\n\n -21%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Cash + STI 3<\/sup><\/td>\n$M<\/td>\n11,722<\/td>\n8,466<\/td>\n10,378<\/td>\n\n 38%<\/em>\n <\/td>\n\n 13%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Capex 4<\/sup>\u00a0<\/td>\n$M<\/td>\n8,484<\/td>\n4,885<\/td>\n2,698<\/td>\n\n 74%<\/em>\n <\/td>\n\n 214%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total Debt\u00a0<\/td>\n$M<\/td>\n40,500<\/td>\n45,500<\/td>\n0<\/td>\n\n -11%<\/em>\n <\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Dividend<\/td>\n$M<\/td>\n1,891<\/td>\n1,884<\/td>\n1,376<\/td>\n\n 0%<\/em>\n <\/td>\n\n 37%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Adj Net Income 5<\/sup><\/td>\n$M<\/td>\n1,578<\/td>\n8,683<\/td>\n1,954<\/td>\n\n -82%<\/em>\n <\/td>\n\n -19%<\/em>\n <\/td>\n<\/tr>\n
\n p\/share <\/em>
\n
\n 6<\/em>
\n <\/sup>\n <\/td>\n		$<\/td>\n0.05<\/td>\n0.29<\/td>\n0.09<\/td>\n\n -82%<\/em>\n <\/td>\n\n -41%<\/em>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n 1) Net of elimination entry for fees paid by Epsilon\u00a0<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n 2) Excludes impact of hedge realizations\u00a0<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n 3) Includes restricted cash balance<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n 4) Accrual basis, excludes acquisitions\u00a0<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n 5) Excludes the impact of transaction costs, impairments, gain \/ loss on asset sales, and unrealized hedge gain \/ loss\u00a0\u00a0<\/em>\n <\/td>\n<\/tr>\n
\n 6) Calculated on weighted average diluted shares outstanding for the period<\/em>\n <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

Jason Stabell, Epsilon\u2019s Chief Executive Officer, commented, “Over the past eight months, Epsilon has undergone a significant transformation. We have expanded from a non-operator into a diversified operator\/non-operator hybrid with development activities spanning multiple basins. Importantly, this transition has been executed successfully, with projects progressing ahead of schedule and on budget as our team continues to deliver against our objectives.<\/em><\/p>\n

\n The operational momentum we have built gives us the confidence to provide production and capital expenditure guidance for the first time. At the midpoint of our guidance, we expect full-year oil production of approximately 1,800 barrels per day and third-quarter oil production growth of over 25% sequentially, reflecting the impact of recent investments as they begin to contribute meaningfully to production and cash flow.<\/em>\n <\/p>\n

\n Based on our planned development activities across our three core operating areas, and the flexibility to allocate capital between oil and gas opportunities, we believe Epsilon has established a foundation for sustained, multi-year production and cash flow growth while maintaining a conservative leverage profile. Supported by a high-quality inventory of development opportunities and disciplined capital allocation, we are well positioned to compound long-term shareholder value.”<\/em>\n <\/p>\n

\n
\n Quarter Details:<\/u>
\n <\/strong>\n <\/p>\n

Epsilon\u2019s capital expenditures were $8.5 million for the quarter ended June 30, 2026.<\/p>\n

The Company successfully completed 2 gross (0.7 net) Niobrara DUCs in the Powder River Basin in early July. The wells were put on production in July and are performing above expectations.<\/p>\n

The Company participated in the drilling of 5 gross (0.4 net) wells in the Marcellus in April. The wells are expected to be completed in the fourth quarter, with production online in December.<\/p>\n

The Company participated in the completion of 1 gross (0.25 net) well in the Permian Basin, the ninth well in the Ector Co. project and the first 3-mile Barnett well. The well was put on production in June and is performing in line with expectations.<\/p>\n

Production from Q2 2026 activity will have a larger contribution to results in the second half of the year, starting in the third quarter.<\/p>\n

Marcellus production was down 16% quarter over quarter due to a planned suction pressure increase in the Auburn Gas Gathering System in May that caused a temporary drop in production during the quarter (in addition to natural well declines). The suction pressure uplift increases the throughput capacity on the system for future development.<\/p>\n

Powder River Basin production was down 11% quarter over quarter, due to field optimization activities and offset completions (in addition to natural well declines). \u00a0<\/p>\n

Permian production was flat quarter over quarter, due to the new well volumes online in June.<\/p>\n

The Auburn Gas Gathering System (Epsilon is a 35% owner) gathered and delivered 7.7 Bcf gross of natural gas volumes during the quarter, or 85 MMcf\/d.<\/p>\n

The quarter included $0.8 million of G&A cost associated with former Peak employees who are on transition services contracts. The full year cost will be approximately $1.5 million, $1.3 million has been incurred in the first half of the year. These costs will not be carried into 2027.<\/p>\n

On May 4, 2026, the Company closed the sale of certain overriding royalty interests (ORRIs) in Susquehanna Co, Pennsylvania to an undisclosed private buyer for $3.9 million. The assets covered 940 gross acres and 90 producing Marcellus wells with an average net revenue interest of 0.25% per well. The effective date of the transaction was April 1, 2026, and the consideration represented approximately 6X expected cash flow from the assets over the next twelve months. The assets represented approximately 1.5% of the Company\u2019s trailing twelve months upstream revenue and 2% of the Company\u2019s year-end 2025 Proved Developed Producing (PDP) reserves.<\/p>\n

In April, the Company made a $5 million repayment on the outstanding balance on the credit facility, bringing the balance down $10 million from year-end 2025 to $40.5 million.<\/p>\n

\n
\n Q3 2026 Update <\/u>
\n <\/strong>\n <\/p>\n

In July, the Company sold down a 24% interest in the 3 well Parkman development in the Powder River Basin, that began drilling in June, in exchange for a $1.1 million up front-payment to right-size the third quarter capital program. The Company now holds a 72% interest in the wells.\u00a0\u00a0<\/p>\n

In July, the Company successfully drilled 3 gross (2.1 net) Parkman wells in the Powder River Basin. The completions are scheduled for the third quarter with production online in the fourth quarter. \u00a0<\/p>\n

\n
\n Q3 2026 and FY 2026 Production and Capital Guidance Range <\/u>
\n <\/strong>\n <\/p>\n

Q3 2026 Total Production (MMcfe): 3,270 \u2013 3,510 (mid-point represents 10% QoQ growth)
Q3 2026 Oil Production (MBbl): 155 \u2013 165 (mid-point represents 27% QoQ growth) \u00a0
Q3 2026 Capital : $24.0 – $28.5 million<\/p>\n

FY 2026 Production (MMcfe): 13,740 \u2013 14,280 (mid-point represents 18% YoY growth)
FY 2026 Oil Production (MBbl): 640 \u2013 670 (mid-point represents 194% YoY growth)
FY 2026 Capital: $42.0 \u2013 $47.0 million \u00a0<\/p>\n

The primary components of the capital program for the second half of 2026:<\/p>\n