Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Investor Presentation (August 2024)
10 slides from Epsilon Energy's investor presentation, August 2024
Slide 1: Investor Presentation August 2024
Investor Presentation August 2024
Slide 2: Disclaimers
Disclaimers Certain statements contained in this presentation constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements.
Slide 3: Epsilon Overview
Epsilon Overview Investment Highlights Statistics NEPA Marcellus position Q2 2024 Total Sales Volumes: • Core NE PA Marcellus working interest position – majority operated by CHK 3,280 BOE/d (21% Liquids)1 • Pending growth wedge (7 gross (0.7 net) wells completed in Q1 2024 – delayed TILs due to pri
Slide 4: Capital Spending and Capital Allocation
Capital Spending Capital Allocation LTM Capital Spending + Shareholder Returns (Q323 – Q224): $45.3mm $26.1mm | 58% $8.2mm | 18% $5.5mm | 12% $4.2mm | 9% $1.3mm | 3% Permian (TX) PA Marcellus Dividends Share Buybacks Other • Permian • Established new growth asset in Ector Co. TX (currently producing
Slide 5: Assets
Assets Overview and Locations 1 Marcellus Basin Upstream (Susquehanna Co, PA) | Auburn • 11,605 gross acres (5,142 net acres) • Operated by Chesapeake Energy • 14.1 MMcf/d NRI production (137 producing wells) in Q2 20241 1 • 213.3 Bcf net Proved + Probable2 reserves (12/31/23) • Undeveloped inventor
Slide 6: NE PA Marcellus – Upstream Overview
NE PA Marcellus – Upstream Overview Summary Material Interest in Core NE PA Marcellus • 5,142 net acres in Susquehanna County, PA » Majority operated by Chesapeake Energy • 137 gross (25.6 net) working interest producing wells • 19% average WI / 87% average NRI per well • 7 (gross, 0.74 net) wells r
Slide 7: Permian Basin Overview
Permian Basin Overview Summary Ector Co. (CBP) Position • Ector Co. TX working interest » Scaled position in one of the hottest emerging plays in the basin » 25% working interest in 16,693 gross acres » Barnett type curve: EUR 112 BOE/ft (86% Oil); 12 mos: 177,000 BOE » All 7 wells drilled to date o
Slide 8: NE PA Marcellus – Midstream Overview
NE PA Marcellus – Midstream Overview Summary Auburn Compression Facility: Susquehanna Co., PA • 35% interest in the Auburn Gas Gathering System (GGS) • Partners: Williams Companies (operator) & Equinor • 45 miles of gathering pipelines • Compression facility capacity of 220,000 MMcf/d (at current su
Slide 9: Financial Information
Financial Information Sales Volumes - Daily Rates by Product Segment Operating CF1 Go Forward: • Leverage to higher natural gas prices with pending volumes and substantial drillable inventory in PA • Permian contribution increasing with incremental development of the substantial drillable inventory
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Epsilon defines Adjusted EBITDA as earnings before (1) net interest expense, (2) taxes, (3) depreciation, depletion, amortization and accretion expense, (4) impairments of natural gas and oil properties, (5) non-cash stock compensation expense, (6) gain or loss on derivat