Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Investor Presentation (June 2024)
10 slides from Epsilon Energy's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
Investor Presentation June 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 Core NEPA Marcellus position – leverage to rising gas prices Q1 2024 Gas Production: • Core NE PA Marcellus working interest position – majority operated by CHK 18.3 MMcf/d1 • Pending growth wedge (7 gross (0.7 net) wells recently completed – delayed
Slide 4: Capital Spending
Capital Spending Capital Allocation LTM Capital Spending + Shareholder Returns (Q223 – Q124): $53.8mm ~45% of Mkt Cap $34.5mm | 64% $7.4mm | 14% $5.6mm | 10% $5.9mm | 11% $0.4mm | 1% Other (OK & PA Permian (TX & NM) PA Marcellus Dividends Share Buybacks Midstream) • Permian (TX & NM) • Established n
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 • 17.1 MMcf/d NRI production (137 producing wells) in Q1 20241 1 • 61.8 Bcf net Proved reserves (12/31/23)2 • Undeveloped inventory of ~400-60
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 Permian Basin (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 110 BOE/ft (86% Oil); 12 mos: 176,000 BOE » All 5 wells drilled to da
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 Cash Returned to Shareholders Operating Income + DD&A1 Q422 – Q124 QoQ Liquids Growth 109% 18% Go Forward: • Leverage to higher natural gas prices with pending volumes (PA) $35.3MM Returned From 2020-2023 (38% of Operating CF) • Permian contribution accelerates in Q2 20242 • Co
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