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Epsilon Reports Second Quarter 2021 Results and Encouraging Oklahoma Appraisal Well Results
HOUSTON, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported second quarter 2021 financial and
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"HOUSTON, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported second quarter 2021 financial and operating results and material subsequent events following the end of the quarter through the date of this release. Net cash provided by operations of $2.4 million and $8.0 million for the three and six months ended June 30, 2021, with free cash flow (FCF) of $1.2 million and $6.3 million for the same periods.Realized gas prices of $1.97/Mcf including hedges ($2.00/Mcf excluding hedges), for the three months ended June 30, 2021.Through June 30, 2021 the company returned a total of $1.1 million to shareholders through share repurchases of 264,215 representing a reduction of 1.1% of outstanding shares from December 31, 2020.Marcellus net revenue interest (NRI) gas production averaged 27.6 MMcf/d (Working Interest of 31.7 MMcf/d) for the second quarter. Working interest exit rate for the second quarter was 33.7 MMcf/d.Auburn System gathered and delivered 15.0 Bcf gross (5.3 Bcf net to Epsilon’s interest) during the three months ended June 30, 2021 through the Auburn GGS which represents approximately 75% of maximum throughput as currently configured.Total revenues of $7.1 million and EBITDA of $3.0 million for the quarter.Cash at quarter end of $18.5 million ($19.1 million including restricted cash).Net loss before tax of $0.7 million for the quarter. Includes estimated non-cash unrealized losses on derivative contracts in the amount of $1.7 million. Operating expenses including SG&A was $1.58/Mcfe.After June 30th, 2021, we completed a well under our Meramec appraisal program in Oklahoma. The IP30 (Initial 30 day production period) resulted in flowing approximately 640 bbls/d of oil and 7.0 MMcf/d of wet gas prior to stripping the NGLs which are estimated at 77 bbls per MMcf of wet gas, or total liquids production of approximately 1,100 barrels of liquids per day. Michael Raleigh, CEO, commented, “As we expected, the decline in drilling activity in 2020 has led natural gas production in both Appalachia and the US to remain relatively flat while demand levels for LNG over 10 Bcf/d and exports to Mexico in excess of 7 Bcf/d have created a supply shortfall. This imbalance supported a 40% rally in Henry Hub futures contract prices for natural gas during the quarter. The price for na...