Business
Epsilon Energy Ltd. Announces Full Year 2022 Results and Approval of New Share Repurchase Program
HOUSTON, March 23, 2023 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported its financial results for the
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"HOUSTON, March 23, 2023 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported its financial results for the fourth quarter and full-year ended December 31, 2022. Epsilon’s highlights for full-year 2022 include: Reported net revenue interest (NRI) production of 10.0 Bcfe (27.3 MMcfe per day) for the year ended December 31, 2022Realized average price of $6.09 per Mcfe including hedges ($6.21 per Mcfe excluding hedges) for the year ended December 31, 2022Delivered total revenues of $70.0 million for the year ended December 31, 2022, an increase of 64% compared to 2021. $61.9 million from natural gas, oil, and NGL sales;$8.1 million from gathering and compression fees through our ownership in the Auburn Gas Gathering System, after eliminating revenue earned from Epsilon production ($1.5 million); Increased Adjusted EBITDA by 120% to $53.1 million for the year ended December 31, 2022, compared to 2021. Grew free cash flow (FCF) before changes in working capital by 139% year over year to $35.0 million for the year ended December 31, 2022. Cash and cash equivalents (including restricted cash) was $45.8 million at December 31, 2022, an increase of 69% compared to December 31, 2021. Returned $12.1 million to shareholders during the year ended December 31, 2022 $6.2 million through the repurchase of 982,500 shares, representing a 4% reduction of shares outstanding$5.9 million through the quarterly dividends$12.1 million total is approximately 10% of current market capitalization Placed Henry Hub (HH) and TGP Z4 basis swaps totaling 1.07 Bcf (each) for a net realized price of $3.96 per MMBtu to hedge a portion of expected volumes for the period of April 2023 to October 2023 (approx. 5.0 MMbtu per day). The current unrealized gain is over $2.2 million. Jason Stabell, Epsilon’s Chief Executive Officer, commented, “We had an exceptional 2022. With the support of our Board and team, Andrew and I have transitioned smoothly. A strong market for natural gas and stable production resulted in an increase in annual revenues of 64%. Our cash balance grew by more than $18 million this year, to over $45 million. Record revenues, EBITDA and free cash flow have allowed us to simultaneously build liquidity and return capital to our shareholders. In 2022, we returned $12.1 million to our shareholders ($5.9 milli...