Business
Epsilon Reports Third Quarter 2022 Results
REPORTS NET INCOME OF $9.6 MILLION, ADJUSTED EBITDA OF $16.5 MILLION AND FREE CASH FLOW OF $11.2 MILLION HOUSTON, Nov. 10, 2022 (GLOBE NEWSWIRE) -- Epsilon
About this update from Epsilon Energy Ltd.
[{"type":"text","content":"REPORTS NET INCOME OF $9.6 MILLION, ADJUSTED EBITDA OF $16.5 MILLION AND FREE CASH FLOW OF $11.2 MILLION HOUSTON, Nov. 10, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2022 financial and operating results, as well as material subsequent events following the end of the quarter through the date of this release. Third Quarter Highlights: Maintained total net revenue interest (NRI) production of 27.6 MMcfe/d (Working Interest of 32.0 MMcfe/d) for the three months ended September 30, 2022;Continued to realize strong prices of $7.54/Mcfe including hedges ($7.55/Mcfe excluding hedges) for the three months ended September 30, 2022;Reported total revenues of $21.2 million, an increase of 7% compared to the prior quarter: $19.2 million from natural gas, oil, and NGL sales;$2.1 million from gathering and compression fees through our ownership in the Auburn Gas Gathering System, after eliminating revenue earned from Epsilon production ($0.37 million); Increased Adjusted EBITDA by 6% from the prior quarter to $16.5 million for the third quarter and $41.5 million year-to-date in 2022;Generated net cash from operations of $13.7 million and $29.4 million for the three and nine months ended September 30, 2022;Generated Free cash flow (FCF) before changes in working capital of $11.2 million and $26.0 million for the three and nine months ended September 30, 2022;Grew cash at quarter end by 32% from the prior quarter to $40.8 million while maintaining a strong, debt-free balance sheet;Returned a total of $3.1 million to shareholders in the third quarter of 2022: $1.68 million through the repurchase of 285,400 shares, representing a 1% reduction of shares outstanding$1.45 million through the quarterly dividend Note: Adjusted EBITDA and Free Cash Flow are Non-GAAP financial measures and are described and reconciled to the closest GAAP measure at the end of this release. Jason Stabell, Epsilon’s Chief Executive Officer, commented, “We had a strong third quarter operationally and financially as we continue to generate significant free cash flow. A strong market for natural gas coupled with the higher than forecasted Koromlan 107HC well results, helped drive an increase in sequential quarterly revenue of 7%. Our cash balance grew by more than $9 million in the quarter, to over $40...