Business
Epsilon Reports Third Quarter 2020 Results
HOUSTON, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2020 financial and
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"HOUSTON, Nov. 10, 2020 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2020 financial and operating results and material subsequent events following the end of the quarter through the date of this release.\n Net cash provided by operations of $3.8 million and $12.1 million for the three and nine months ended September 30, 2020, respectively, with free cash flow (FCF) of $2.4 million and $6.6 million for the same periods. Realized gas prices of $1.18/Mcf, (excluding hedges) and $1.72/Mcf (including hedges) for the three months ended September 30, 2020. Following the June 30, 2020 deadline for the previously announced Tender Offer, $7.15 million was returned to shareholders in exchange for 2,337,034 shares which were properly tendered representing 8.9% of outstanding shares for $3.06/share. During the first nine months of 2020 the company returned a total of $9.1 million to shareholders through share repurchases representing a reduction of 11.2% of outstanding shares as at December 31, 2019. Marcellus net revenue interest (NRI) gas production averaged 32.5 MMcf/d (Working Interest of 37.4 MMcf/d) for the third quarter. Due to the usual weak shoulder season demand the operator curtailed the third quarter NRI exit rate to 26.0 MMcf/d (Working Interest of 29.9 MMcf/d). Auburn System gathered and delivered 15.3 Bcfe gross (5.4 Bcfe net to Epsilon’s interest) which represents approximately 83% of maximum throughput as currently configured. The September 30th exit gathering volume rate was 107.2 MMcf/d due to the aforementioned well curtailments and elevated pipeline pressures. Total revenues of $5.8 million; net loss of $0.3 million; and EBITDA of $3.9 million for the quarter. Cash at quarter end of $11.6 million. Net loss before tax of $0.3 million for the quarter. Operating expenses including SG&A was $1.22/Mcfe and $1.12/Mcfe excluding $0.3 million of non-recurring legal costs. Michael Raleigh, CEO, commented, “The impact of the oil and gas shale industry adopting capital spending discipline is becoming evident in restrained production volumes and higher forward price expectations for natural gas. The rig count in the US onshore oil basins remains 60-80% below the peak rig counts observed in March 2020. The resulting associated natural gas production from new wells is ...