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Epsilon Energy
(NASDAQ:EPSN)
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Rating:64Neutral
Price Target:
$6.00
▲(2.74% Upside)
Action:Reiterated
Date:08/18/26
EPSN scores in the mid-range primarily due to uneven financial performance (losses/negative ROE despite revenue improvement) offset by a strong balance sheet and positive but volatile free cash flow. The latest earnings call and guidance are a meaningful positive catalyst for production growth and cost control, while valuation is supported by the dividend but constrained by negative earnings; technical signals are broadly neutral.
Positive Factors
Diversified production growth platform
Expansion across the Powder River Basin, Marcellus and Permian reduces reliance on one basin and supports sustained volume growth. Operated control and midstream throughput can improve execution and create a broader platform for recurring production and cash flow.
Negative Factors
Persistent earnings volatility
Revenue growth and improved gross margin have not yet translated into consistent bottom-line profitability. Continued losses and negative ROE weaken internally generated capital, limit financial predictability and make shareholder returns dependent on operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified production growth platform
Expansion across the Powder River Basin, Marcellus and Permian reduces reliance on one basin and supports sustained volume growth. Operated control and midstream throughput can improve execution and create a broader platform for recurring production and cash flow.
Read all positive factors
Epsilon Energy (EPSN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.34M
Dividend Yield4.28%
Average Volume (3M)174.03K
Price to Earnings (P/E)―
Beta (1Y)0.04
Revenue Growth53.71%
EPS Growth-204.13%
CountryUS
Employees27
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)-0.20
Shares Outstanding30,283,780
10 Day Avg. Volume139,259
30 Day Avg. Volume174,031
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.85
Price to Sales (P/S)2.07
P/FCF Ratio20.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Epsilon Energy Business Overview & Revenue Model
Company Description
Epsilon Energy Ltd. is an energy firm primarily involved in the oil and natural gas sector. The company's operations within the United States encompass the sourcing, development, collection, and extraction of hydrocarbon reserves. Its business mod...
How the Company Makes Money
Epsilon Energy makes money primarily through (1) upstream sales of hydrocarbons and (2) midstream-related fees and income from its gathering/pipeline interests. Upstream revenue is generated by producing natural gas (and, where applicable, natural...
Epsilon Energy Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents strong operational execution and several near‑term growth catalysts (Powder River Niobrara and Parkman wells, Permian Barnett performance, Woodford appraisal) plus clear cost and balance sheet management. Headwinds are primarily timing and price‑driven: Q2 was a production trough, Marcellus curtailments due to depressed gas prices, and some near‑term capex will not produce results until Q4 or later. Overall, the positives — including guidance, outsized oil volume growth expectations, well outperformance, and cost saves — outweigh the challenges, though execution timing and commodity price sensitivity remain key risks.Positive Updates
Guidance Provided for H2 2026 and Anticipated Production Growth
Company provided production guidance for the second half of 2026 for the first time and expects meaningful quarter‑over‑quarter production growth through the remainder of 2026 driven primarily by crude volumes in the Powder River Basin.
Negative Updates
Second Quarter Production Trough
Q2 2026 was a production trough for the year as new development in Powder River and Permian started contributing late in the quarter; material volume increases are expected only as Q2 activity is reflected in future quarters.
Read all updates
Q2-2026 Updates
Positive
Negative
Guidance Provided for H2 2026 and Anticipated Production Growth
Company provided production guidance for the second half of 2026 for the first time and expects meaningful quarter‑over‑quarter production growth through the remainder of 2026 driven primarily by crude volumes in the Powder River Basin.
Read all positive updates
Company Guidance
Epsilon for the first time provided second‑half 2026 production guidance and said it expects meaningful quarter‑over‑quarter growth through year‑end, with the midpoint of full‑year 2026 guidance implying high‑teens % year‑over‑year total production growth and almost 200% year‑over‑year oil volume growth; key drivers include 2 Niobrara 2‑mile DUCs (brought online in July and peaking above 900 bbl/d each), a 3‑well Parkman pad (drilled ~1 month early, completions this quarter, initial production expected in Q4) where a recent sell‑down leaves Epsilon with >70% WI, and Permian activity including a 3‑mile Barnett on flowback (early performance in line with type; 2 additional Barnett wells to be drilled H2’26 with completion in Q1’27) plus a Woodford appraisal completion this month; Marcellus volumes are being managed for price with planned curtailments but new wells (5 drilled, 0.4 net; first production in December) are forecast to add ~6.5 MMcf/d net and ~80–90 MMcf/d of midstream throughput initially; capital intensity ramps (well over half of full‑year capex won’t contribute until Q4 and >1/3 of spend shows up in 2027), a 1.0 million‑barrel water impoundment in Converse County, cost saves from replacing 16 compressors (~$65k/month to date, >$100k/month by year‑end), H1 debt paydown of $10M, planned revolver use, a 1.5x EBITDA leverage target, and a hedging policy of ~50% PDP coverage over the next 18 months round out the guidance framework.Epsilon Energy Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
71
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 67.66M | 51.59M | 31.52M | 30.73M | 69.96M | 42.40M |
| Gross Profit | 36.04M | 24.54M | 11.81M | 14.18M | 54.11M | 27.15M |
| EBITDA | 9.76M | 7.36M | 13.79M | 17.91M | 54.00M | 22.80M |
| Net Income | -3.50M | -5.80M | 1.93M | 6.95M | 35.35M | 11.63M |
Balance Sheet | ||||||
| Total Assets | 236.44M | 228.24M | 120.45M | 124.04M | 123.86M | 99.46M |
| Cash, Cash Equivalents and Short-Term Investments | 11.17M | 8.96M | 6.52M | 32.18M | 45.24M | 26.50M |
| Total Debt | 474.08K | 51.11M | 476.91K | 563.38K | 35.30K | 0.00 |
| Total Liabilities | 106.53M | 102.55M | 23.73M | 23.43M | 19.62M | 20.20M |
| Stockholders Equity | 129.91M | 125.68M | 96.73M | 100.61M | 104.25M | 79.26M |
Cash Flow | ||||||
| Free Cash Flow | 11.60M | 5.22M | -19.73M | -457.78K | 29.94M | 15.12M |
| Operating Cash Flow | 25.67M | 20.62M | 16.83M | 18.19M | 38.01M | 20.01M |
| Investing Cash Flow | -57.29M | -61.64M | -16.66M | -38.38M | -7.87M | -4.44M |
| Financing Cash Flow | 32.88M | 43.68M | -7.32M | -11.73M | -11.35M | -2.34M |
Epsilon Energy Technical Analysis
Positive
5.84
Price Trends
5.53
Positive
5.75
Positive
5.32
Positive
Market Momentum
0.04
Negative
56.66
Neutral
77.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPSN, the sentiment is Positive. The current price of 5.84 is above the 20-day moving average (MA) of 5.65, above the 50-day MA of 5.53, and above the 200-day MA of 5.32, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPSN.
Epsilon Energy Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $227.71M | 2.89 | 13.38% | ― | 37.77% | 13.02% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $175.34M | -29.81 | -2.92% | 4.29% | 53.71% | -204.13% | |
55 Neutral | $340.36M | -1.40 | -122.23% | ― | 2.69% | -289.33% | |
52 Neutral | $193.60M | 9.16 | 5.13% | ― | -23.70% | 30.67% | |
49 Neutral | $138.87M | -1.60 | -474.82% | ― | -9.01% | -293.99% | |
48 Neutral | $137.98M | -32.82 | -5.44% | 12.53% | -3.16% | -313.41% |
* Energy Sector Average
EPSN
Epsilon Energy
5.91
0.30
5.44%
EPM
Evolution Petroleum
3.58
-1.03
-22.26%
GTE
Gran Tierra Energy
10.11
5.96
143.61%
AMPY
Amplify Energy
4.71
0.64
15.72%
EP
Empire Petroleum
3.28
-1.91
-36.76%
IMPP
Imperial Petroleum
5.06
1.73
51.95%
Epsilon Energy Corporate Events
Business Operations and StrategyFinancial Disclosures
Epsilon Energy outlines multi-year diversified growth strategy
Positive
Aug 18, 2026
On August 17, 2026, Epsilon Energy released an updated corporate presentation outlining a multi-year transformation from a single-basin, commodity-concentrated non-operator into a diversified platform with operated control across the Powder River ...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Epsilon Energy Establishes At-The-Market Equity Sales Program
Positive
Jun 18, 2026
On June 18, 2026, Epsilon Energy Ltd. entered into a Sales Agreement with Roth Capital Partners, allowing the company to sell up to $15 million of its common shares in at-the-market offerings or privately negotiated transactions over time. The sha...
DividendsPrivate Placements and Financing
Epsilon Energy Declares Quarterly Dividend, Highlights Capital Returns
Positive
Jun 1, 2026
Epsilon Energy Ltd., a North American onshore natural gas and oil producer with gathering operations across several major basins, announced on June 1, 2026, that its board declared a quarterly dividend of $0.0625 per share, equivalent to $0.25 per...
Executive/Board ChangesShareholder Meetings
Epsilon Energy Shareholders Endorse Board, Auditor and Compensation
Positive
May 20, 2026
Epsilon Energy held its 2026 Annual General Meeting of shareholders on May 20, 2026, with approximately 74.66% of outstanding common shares represented, and shareholders approved setting the board at eight directors while re-electing all eight nom...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.