Episode Details

Epsilon Energys 2025 was a banner year with significant growth in adjusted EBITDA and production. The acquisition of Peak companies added new output, drilling spots, and a skilled team in the Powder River Basin, boosting reserves and fueling dividend growth. High natural gas sales in Pennsylvania and Niobrara/Mowry formations at under $250k per location contributed to the success. Despite one-offs, adjusted earnings hit $92 per share. Oklahoma assets sale reduced debt, and liquidity boost plans include selling Marcellus royalties and a Colorado office. Permitting hurdles in Wyoming cleared, unlocking prime acreage. Looking ahead, Epsilon plans to ramp up with completions in Powder River Basin Niobrara wells, Parkman laterals, Permian Barnett drills, and Marcellus wells, totaling around $36 million in net capex. Efforts to trim operating costs in Wyoming could save $50k-$100k monthly. Total reserves now stand at 156 billion cubic feet equivalent. Epsilon is poised for multi-year growth in earnings, cash flow, and output, backed by a fixed dividend and leverage under 1.5 times, even as oil prices lift returns across their inventory.

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