Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Investor Presentation (August 2023)
9 slides from Epsilon Energy's investor presentation, August 2023
Slide 1: Investor Presentation August 2023
Investor Presentation August 2023
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 Quality Legacy Asset Base (Core NE PA Marcellus) Q2 2023 Production: 24.9 MMcfe/d • Auburn area upstream working interest position – operated by Chesapeake Energy • Some of the lowest cost natural gas reserves in the L48 2022 YE Proved Reserves: 94.3
Slide 4: Assets
Assets Overview and Locations 1 Marcellus Basin Upstream (Susquehanna Co, PA) | Auburn • 13,298 gross acres (5,098 net acres) • Operated by Chesapeake Energy • 22.0 MMcf/d NRI production (139 producing wells) in Q2 2023 1 2 • 84.5 Bcf net Proved reserves (12/31/22) • Estimated 81 undeveloped locatio
Slide 5: Core NE PA Marcellus – Upstream Overview
Core NE PA Marcellus – Upstream Overview Summary Material Interest in Core NE PA Marcellus • 5,098 net acres in Susquehanna County, PA » Operated by Chesapeake Energy • 4,763 net acres held by production • 139 gross (25.5 net) working interest producing wells • 94 gross (0.22 net) ORRI producing wel
Slide 6: Core NE PA Marcellus – Midstream Overview
Core 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 • Dischar
Slide 7: Financial Information
Financial Information Shares Outstanding Operating Income + DD&A1 2020 – 1H2023 Steady fee-based cash flow (midstream) Shares Outstanding down 18% since 12/31/19 Leverage to increasing gas prices (upstream) Revenue - Realized Revenue – Adjusted FCF Excl. Period End Period Price2 Capex Cash + STI Ups
Slide 8: Recent Permian Basin Transactions – May / June 2023
Recent Permian Basin Transactions – May / June 2023 Summary Permian Basin Interests in Active Areas • Eddy Co. NM wellbore interests (0.2 net wells) Eddy Co. NM Interest Ector Co. Tx Interest Wolfcamp Development Miss. / Barnett Development » Wolfcamp A-XY (on production in May 2023) • Producing ~85
Slide 9: 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