Epsilon Energy AI Stock Analysis
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Epsilon Energy (EPSN) AI Stock Analysis
Epsilon Energy
(NASDAQ:EPSN)
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.
Epsilon Energy (EPSN) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $160.20M
- Dividend Yield
- 4.73%
- Average Volume (3M)
- 124.73K
- Price to Earnings (P/E)
- -27.0
- Beta (1Y)
- 0.05
- Revenue Growth
- 53.71%
- EPS Growth
- -204.13%
- Country
- US
- Employees
- 27
- Sector
- Energy
- Sector Strength
- 65
- Industry
- Oil & Gas Exploration & Production
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 model...
How the Company Makes Money
Epsilon Energy generates earnings primarily through two business activities: (1) upstream oil and natural gas exploration and production (E&P) and (2) midstream natural gas gathering. 1) Upstream E&P (commodity sales) - The company drills, develops,...
Epsilon Energy Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Mixed fundamentals: TTM revenue is up strongly and gross margin improved, and leverage is very conservative (minimal debt). However, profitability is the key drag with negative TTM net income and negative ROE, while free cash flow is positive but historically volatile.
Income Statement
52NeutralBalance Sheet
71PositiveCash Flow
63Positive| 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 |
| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPSN, the sentiment is Negative. The current price of 5.29 is below the 20-day moving average (MA) of 5.91, below the 50-day MA of 5.98, and below the 200-day MA of 5.66, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 32.23 is Neutral, neither overbought nor oversold. The STOCH value of 9.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPSN.
Epsilon Energy Risk Analysis
Epsilon Energy disclosed 41 risk factors in its most recent earnings report. Epsilon Energy reported the most risks in the "Finance & Corporate" category.
- Finance & Corporate13
- Tech & Innovation4
- Legal & Regulatory4
- Production9
- Ability to Sell6
- Macro & Political5
Latest Risks Added
2 New RisksEpsilon Energy Peers Comparison
Overall Rating
IMPP88Outperform
EPSN64Neutral
AMPY54.9Neutral
EPM51Neutral
GTE47Neutral
EP39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 88Outperform | $198.00M | 2.14 | 16.62% | ― | 89.03% | 80.68% | |
| Sector * | 65Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
| 64Neutral | $158.69M | -27.00 | -2.92% | 4.73% | 53.71% | -204.13% | |
| 55Neutral | $140.41M | 6.88 | 5.54% | ― | -28.16% | ― | |
| 51Neutral | $145.11M | -19.26 | -9.92% | 13.95% | 2.81% | -3280.36% | |
| 47Neutral | $334.71M | -1.25 | -198.45% | ― | 2.69% | -289.33% | |
| 39Underperform | $100.68M | -1.19 | -474.82% | ― | -9.01% | -293.99% |
* Energy Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| EPSN | Epsilon Energy Ltd. | 5.29 | 0.69 | 15.03% | |
| EPM | Evolution Petroleum | 3.44 | -0.42 | -10.93% | |
| GTE | Gran Tierra Energy Inc | 9.79 | 5.40 | 123.01% | |
| AMPY | Amplify Energy Corp. | 3.85 | -1.78 | -31.62% | |
| EP | Empire Petroleum Corporation | 2.46 | -0.64 | -20.59% | |
| IMPP | Imperial Petroleum, Inc. | 4.47 | -1.46 | -24.62% |
Epsilon Energy Corporate Events
Epsilon Energy outlines multi-year diversified growth strategy
PositiveOn 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 Bas...
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.
Date of analysis: Aug 18, 2026
