Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Q1 2025 Earnings Presentation
11 slides from Epsilon Energy's earnings presentation, May 15, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025
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 Q1 2025 Gas Sales Volumes: • Core NE PA Marcellus working interest position – majority operated by Expand Energy 30.4 MMcf/d • Price related curtailments lifted in Q424; 7 gross (0.3 net) wells TIL’d in Q1 2025 Q1 2025 Liquids
Slide 4: Capital Spending
Capital Spending Capital Allocation LTM Capital Spending + Shareholder Returns (Q224 – Q125): $25.6mm $6.2mm | 24% $2.9mm | 11% $10.4 mm | 41% $5.5mm | 22% $0.6mm | 2% Permian (TX) PA Marcellus Alberta (CA) Dividends Share Buybacks • Permian • Oil weighted growth asset in Ector Co. TX • $39mm invest
Slide 5: Assets
Assets Overview and Locations 1 Marcellus Basin (Susquehanna Co, PA) | Auburn • 11,600 gross acres (5,100 net acres) • Operated by Expand Energy • 29.3 MMcf/d NRI production (127 producing wells) in Q1 2025 • 7 gross (0.3 net) wells put on production in O1 2025 • 198.7 Bcf net Proved + Probable1 res
Slide 6: NE PA Marcellus – Upstream Overview
NE PA Marcellus – Upstream Overview Summary Material Interest in Core NE PA Marcellus • 5,100 net acres in Susquehanna County, PA » Majority operated by Expand Energy • 127 gross (26.1 net) working interest producing wells • 18% average WI / 87% average NRI per well • 7 (gross, 0.7 net) wells turned
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 16,500 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: Alberta Overview
Alberta Overview Summary Alberta (Garrington & Harmattan) • JV (signed October 2024) with premier private operator in Alberta WCSB in the Garrington & Harmattan areas (WCSB) • EPSN to earn a 25% interest in the lands in exchange for a $10mm CAD (~$7.3mm USD) drilling carry over the next 12 months: »
Slide 9: 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 10: Financial Information
Financial Information Segment Operating CF1 • PA asset leverage to natural gas prices and incremental development demonstrated in Q125 (Operating CF1 up ~200% QoQ) • Permian oil / liquids growth set to continue in 2H2025 • Established a new area for capital deployment in Alberta, holding substantial
Slide 11: 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