Business
Epsilon Reports First Quarter 2022 Results
HOUSTON, May 11, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2022 financial and
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"HOUSTON, May 11, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2022 financial and operating results and material subsequent events following the end of the quarter through the date of this release. Cash provided by operations of $7.7 million for the three ended March 31, 2022, with free cash flow (FCF) of $4.8 million for the same period.Realized natural gas prices of $4.04/Mcf including hedges ($4.55/Mcf excluding hedges) for the three months ended March 31, 2022. Total net revenue interest (NRI) gas production averaged 26.1 MMcf/d (Working Interest of 30.1 MMcf/d) for the first quarter. There were 5 gross (.58 Net) wells shut-in at quarter end. Working interest exit rate for the third quarter was 25.3 MMcf/d. Auburn System gathered and delivered 18.3 Bcf gross (6.4 Bcf net to Epsilon’s interest) during the three months ended March 31, 2022 which represents approximately 92% of maximum throughput as currently configured.Total revenues of $13.6 million and EBITDA of $9.3 million for the quarter.Cash at quarter end of $30.1 million ($30.6 million including restricted cash).Net income before tax of $8.0 million for the quarter ($5.8 million net income after tax). Operating expenses including SG&A was $1.26/Mcfe. Michael Raleigh, CEO, commented, “The Company continued to perform exceptionally well during the first quarter of 2022, increasing our cash balance by $3.6 million while investing to maintain our production, paying $1.5 million in dividends to our shareholders and remaining debt free. \"While we continue to be encouraged by a constructive pricing environment, the Company recently used NYMEX costless collars and basis swaps for net realized prices between $5.35 and $7.05 for 5.0 MM/day natural gas production between May and December of 2022. Epsilon remains unhedged regarding its oil and natural gas liquid production in Oklahoma. \"The Company continued its appraisal program on our Oklahoma acreage with the completion of 2 incremental gross (.55 net) wells during the quarter and immediately subsequent to quarter end. While these wells are still in the early stages of production flowback, we remain encouraged by the initial productivity of the wells in this part of the play, especially given that commodity prices now materially exceed our original assump...