Epsilon Announces Initiation of Quarterly Dividend and Plan to Repurchase Shares Pursuant to a Normal Course Issuer Bid

About this update from Epsilon Energy Ltd.

[{"type":"text","content":"HOUSTON, Feb. 24, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) announced today that its Board of Directors approved the payment of a quarterly dividend and authorized a one-year share repurchase program. Michael Raleigh, CEO of Epsilon, commented, “The company remains in a very strong financial position with significant and growing cash on hand and no debt in an environment of attractive commodity prices for the short to medium term. Accordingly, we believe it is prudent to take the next step in our shareholder return program by initiating a regular quarterly dividend. We will supplement this dividend with the continuation of our Share Repurchase Program as outlined below.” Approval of Quarterly Dividend The Board of Directors has approved a quarterly cash dividend of $0.0625 per common share, payable on March 31, 2022, to shareholders of record at the close of business on March 8, 2022. With the initiation of a cash dividend, Epsilon intends to pay regular quarterly dividends, with future dividend payments subject to quarterly review and approval by its Board of Directors. At this quarterly dividend rate, the annual dividend rate for the fiscal year 2022 is $0.25 per share. One-Year Share Repurchase Authorization The Board of Directors also authorized the repurchase of up to 1,183,410 of the outstanding common shares, representing 5% of the outstanding common shares of Epsilon, for an aggregate purchase price of not more than US $8.0 million, pursuant to a normal course issuer bid, during the one-year period commencing on March 8, 2022. The program will end on March 7, 2023 unless the maximum amount of common shares is purchased before then or Epsilon provides earlier notice of termination. Repurchases may be made at management’s discretion from time to time through the facilities of the NASDAQ Global Market. The price paid for the common shares will be, subject to applicable securities laws, the prevailing market price of such common shares on the NASDAQ Global Market at the time of such purchase. The Company intends to fund the purchase out of available cash and does not expect to incur debt to fund the share repurchase program. Epsilon believes that the market price of its common shares may not reflect their underlying value and the Board of Directors has authorized this initiative...

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