Mission Statement, Vision, & Core Values (2024) of Epsilon Energy Ltd. (EPSN)

An Overview of Epsilon Energy Ltd. (EPSN)

General Summary of Epsilon Energy Ltd. (EPSN)

Epsilon Energy Ltd. (NASDAQ: EPSN) is an independent oil and natural gas company with a focus on the exploration and production of hydrocarbons in North America. Established in 2005, Epsilon has developed a strong portfolio primarily in the Marcellus Shale region of Pennsylvania, along with strategic assets in the Permian Basin of Texas and the Western Canadian Sedimentary Basin in Alberta, Canada. The company specializes in the production of natural gas, oil, and natural gas liquids (NGLs).

As of 2024, Epsilon's total estimated net proved reserves include approximately 65,916 million cubic feet (MMcf) of natural gas, 383,174 barrels (Bbls) of NGLs, and 341,286 Bbls of oil and condensate. The company has also formed partnerships to enhance its operational capabilities, including a new ten-year gas gathering agreement effective January 1, 2024, with Appalachia Midstream Services.

Current sales figures for Epsilon Energy Ltd. as of 2024 indicate a total revenue of approximately $22.58 million for the nine months ended September 30, 2024, up from $22.17 million in the same period of 2023.

Company's Financial Performance in the Latest Financial Reports

In the most recent financial reporting period, Epsilon Energy Ltd. has shown notable growth in its financial performance. For the three months ended September 30, 2024, Epsilon reported total revenues of $7.29 million, an increase from $6.31 million in Q3 2023. The main contributors to this revenue growth are the sales of gas, oil, and NGLs, which amounted to $6.20 million for the third quarter of 2024, compared to $3.24 million in the same quarter of the previous year.

Furthermore, Epsilon's production metrics have also improved significantly. During the three months ended September 30, 2024, Epsilon's total net revenue interest production was 73.3 thousand barrels of oil equivalent (Mboe), a remarkable 428% increase compared to 13.9 Mboe in the same period of 2023. For the nine months ended September 30, 2024, the total net revenue interest production reached 191.4 Mboe, representing a 565% increase from 28.8 Mboe year-over-year.

Adjusted EBITDA for the nine months ended September 30, 2024, was $11.8 million, a decrease from $14.4 million in the same period of 2023. The net income for the nine months was approximately $2.69 million, down from $4.35 million in 2023. Epsilon's working capital surplus stood at $7.5 million as of September 30, 2024, reflecting a decrease from $33.2 million at the end of 2023.

Introduction to Epsilon Energy Ltd. as a Leader in the Industry

Epsilon Energy Ltd. is recognized as a significant player in the North American oil and gas industry, particularly in natural gas production. The company's strategic focus on high-potential basins, including the Marcellus Shale and the Permian Basin, positions it well for future growth and profitability. Epsilon's commitment to disciplined capital allocation, alongside its robust operational capabilities, underscores its status as a leader in the sector.

The company actively evaluates new opportunities in various onshore North American basins, ensuring continued expansion and innovation in its operations. With a strong track record of revenue growth and a solid asset base, Epsilon Energy Ltd. continues to attract investor interest and remains poised for future success in the competitive energy landscape.

Mission Statement of Epsilon Energy Ltd. (EPSN)

Mission Statement of Epsilon Energy Ltd. (EPSN)

Epsilon Energy Ltd. (EPSN) is dedicated to providing exceptional value to our shareholders, employees, and communities through responsible energy production and innovative solutions. Our mission statement serves as a guiding principle for our operations and strategic initiatives, emphasizing our commitment to sustainability, profitability, and community engagement.

Core Component 1: Responsible Energy Production

Epsilon Energy Ltd. prioritizes responsible energy production as a fundamental aspect of our mission. This commitment is reflected in our operational practices, which aim to minimize environmental impact while maximizing efficiency. In 2024, the company achieved a realized natural gas price of $1.54 per Mcf during the third quarter, representing a 44% increase compared to the previous year. This increase underscores our focus on optimizing production in the Marcellus Shale region, where we produced 1.2 Bcf of natural gas, despite a 32% decrease year-over-year.

Core Component 2: Innovative Solutions

Innovation is at the heart of Epsilon's mission. We are committed to exploring new technologies and methodologies to enhance our production capabilities. For instance, our recent $14.8 million acquisition of a 25% working interest in three producing wells in Texas illustrates our strategy to leverage innovative solutions in resource management. Furthermore, our partnership with Appalachia Midstream Services, LLC, established a new Anchor Shipper Gas Gathering Agreement, allowing us to set fixed gathering rates adjusted annually by the Consumer Price Index, thereby ensuring predictable operational costs.

Core Component 3: Community Engagement

Epsilon Energy Ltd. recognizes the importance of community engagement in achieving sustainable growth. We actively participate in local initiatives and maintain transparent communication with stakeholders. Our financial commitment to community development is evidenced by a working capital surplus of $7.5 million as of September 30, 2024. Additionally, our dividend payments, amounting to $4.1 million during the nine months ended September 30, 2024, reflect our dedication to delivering value to our shareholders while investing in our communities.

Vision Statement of Epsilon Energy Ltd. (EPSN)

Vision Statement of Epsilon Energy Ltd. (EPSN)

The vision statement of Epsilon Energy Ltd. emphasizes the company's commitment to becoming a leading player in the energy sector, focusing on sustainable and profitable growth through innovative practices and strategic partnerships. As of 2024, Epsilon aims to expand its operational footprint while maintaining a strong emphasis on environmental responsibility.

Commitment to Sustainable Practices

Epsilon Energy Ltd. is dedicated to integrating sustainability into its operations. This includes leveraging advanced technologies to minimize environmental impact while maximizing resource efficiency. The company’s environmental initiatives are reflected in its operational metrics:

These figures demonstrate Epsilon’s efforts to enhance operational efficiency while reducing its carbon footprint.

Strategic Partnerships and Joint Ventures

Epsilon Energy Ltd. is actively pursuing strategic partnerships to bolster its growth strategy. In 2024, the company formed a joint venture with a private operator covering lands in the Western Sedimentary Basin in Alberta, Canada. This venture allows Epsilon to earn a 25% working interest across approximately 160,000 gross acres after fulfilling a carried interest commitment of $7.3 million before December 1, 2025.

This strategic move aligns with Epsilon's vision to enhance its resource base and operational capabilities through collaborative efforts.

Focus on Operational Excellence

Operational excellence is a cornerstone of Epsilon's vision statement. The company strives to optimize its production capabilities across various basins, including:

• Marcellus Shale - Pennsylvania
• Permian Basin - Texas and New Mexico
• Anadarko, NW Stack Trend - Oklahoma

In the Permian Basin, Epsilon reported a realized price of $54.19 per Boe, a 16% increase year-over-year. Total net revenue interest production reached 73.3 Mboe for the three months ended September 30, 2024, a staggering 428% increase compared to the same period in 2023.

These metrics underscore Epsilon's commitment to enhancing production efficiency and operational performance.

Financial Strength and Growth Potential

Epsilon Energy Ltd. is focused on maintaining a robust financial position to support its strategic initiatives. As of September 30, 2024, the company reported:

• Net income of $2,688,577 for the nine months ended September 30, 2024.
• Working capital surplus of $7.5 million, a decrease from $33.2 million at December 31, 2023.
• Capital expenditures of $11.0 million for the nine months ended September 30, 2024.

The company’s disciplined capital allocation strategy includes shareholder returns through dividends and stock buybacks. In 2024, Epsilon authorized a share repurchase program of up to 2,191,320 common shares for an aggregate purchase price of not more than $12.0 million.

Conclusion

The vision statement of Epsilon Energy Ltd. as of 2024 reflects its commitment to sustainable practices, strategic partnerships, operational excellence, and financial strength. With a clear focus on these areas, Epsilon is poised to navigate the challenges of the energy sector while striving for long-term growth and success.

Core Values of Epsilon Energy Ltd. (EPSN)

Integrity

Integrity at Epsilon Energy Ltd. (EPSN) emphasizes transparency and ethical behavior in all operations. This core value is essential for maintaining trust with stakeholders, including investors, employees, and the communities in which they operate.

In 2024, Epsilon reinforced its commitment to integrity by adhering to strict compliance standards and implementing rigorous internal controls. The company’s financial reports are subjected to audits by independent third parties, ensuring accuracy and honesty in financial disclosures. For instance, during the nine months ended September 30, 2024, Epsilon reported net income of $2,688,577, reflecting a commitment to transparent financial practices.

Innovation

Innovation is a driving force behind Epsilon Energy’s growth strategies. The company continually seeks to implement advanced technologies in its exploration and production processes.

In 2024, Epsilon adopted new drilling techniques in the Permian Basin, resulting in a realized price of $54.19 per Boe, a 16% increase compared to the previous year. Moreover, Epsilon's investment in digital technologies has improved operational efficiency, as evidenced by a 428% increase in total net revenue interest production for the three months ended September 30, 2024, totaling 73.3 Mboe.

Responsibility

Responsibility at Epsilon Energy extends to environmental stewardship and community engagement. The company recognizes its role in minimizing environmental impact while maximizing resource utilization.

As of 2024, Epsilon has invested significantly in sustainable practices, including the implementation of a new gas gathering system that reduces emissions. The company’s capital expenditures for environmental initiatives during the nine months ended September 30, 2024, were approximately $11.0 million. Furthermore, Epsilon has committed to fulfilling its asset retirement obligations, estimated at $3.6 million, ensuring responsible management of its operations.

Collaboration

Collaboration is fundamental to Epsilon Energy’s operational success, fostering strong partnerships with stakeholders and within the industry.

In 2024, Epsilon entered into a joint venture with a private operator covering lands in the Western Canadian Sedimentary Basin, which will provide a 25% working interest across approximately 160,000 gross acres. This collaboration aims to optimize resource extraction and enhance operational synergies, demonstrating Epsilon's commitment to working effectively with partners to achieve mutual goals.

Excellence

Epsilon Energy strives for excellence in all facets of its operations, from safety standards to production efficiency.

In the three months ended September 30, 2024, Epsilon achieved a significant milestone with a realized natural gas price of $1.54 per Mcf, a 44% increase year-over-year. The company’s focus on operational excellence is also reflected in its operational metrics, with total operating revenue reaching $7,287,941 during the same period.

Updated on 16 Nov 2024

Resources:

1. Epsilon Energy Ltd. (EPSN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Epsilon Energy Ltd. (EPSN)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Epsilon Energy Ltd. (EPSN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.