Business
Epsilon Reports Third Quarter 2021 Results
HOUSTON, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2021 financial and
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"HOUSTON, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2021 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 $5.5 million and $13.5 million for the three and nine months ended September 30, 2021, with free cash flow (FCF) of $3.4 million and $9.7 million for the same periods.Realized gas prices of $2.56/Mcf including hedges ($3.46/Mcf excluding hedges), for the three months ended September 30, 2021. Through September 30, 2021 the company returned a total of $2.4 million to shareholders through share repurchases of 525,615 representing a reduction of 2.2% of outstanding shares from December 31, 2020.Total net revenue interest (NRI) gas production averaged 29.9 MMcf/d (Working Interest of 34.6 MMcf/d) for the third quarter. Marcellus wells shut-in for workovers and adjacent drilling operations during the quarter accounted for a reduction to NRI gas production of 0.7 MMcf/d (Working Interest gas of approximately 0.8 MMcf/d). There were 11 gross (1.25 Net) wells shut-in at quarter end. Working interest exit rate for the third quarter was 31.2 MMcf/d. Auburn System gathered and delivered 14.2 Bcf gross (5.0 Bcf net to Epsilon’s interest) during the three months ended September 30, 2021 through the Auburn GGS which represents approximately 70% of maximum throughput as currently configured.Total revenues of $13.1 million and EBITDA of $6.8 million for the quarter.Cash at quarter end of $20.6 million ($21.2 million including restricted cash).Net income before tax of $2.0 million for the quarter. Includes estimated non-cash unrealized losses on derivative contracts in the amount of $2.6 million. Operating expenses including SG&A was $1.37/Mcfe.As previously reported, we completed a well under our Meramec appraisal program in Oklahoma in July. 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. The well continues to perform above expectations following 120 days of continuous production. Michael Raleigh, CEO, commented, “Natu...