Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Merger or Acquisition (August 2025)
15 slides from Epsilon Energy's merger presentation, Aug 13, 2025
Slide 1: Peak Companies Acquisition
Peak Companies Acquisition August 2025
Slide 2: Disclaimers
Disclaimers 2 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 statement
Slide 3: Acquisition of Peak Companies Unlocks A New Chapter of Growth For Epsilon
1. Purchase price includes 6.0 MM shares of EPSN stock at 10-day VWAP ($6.21/share) as of 8/11/2025, $52.0 MM of assumed debt and up to 2.5 MM shares issued contingent on receipt of drilling permits and ability to access affected Converse Co. leasehold before YE26 (drops to 1.5 – 2.0 MM shares if be
Slide 4: Peak acreage in the core of the Powder River Basin
• Acreage lies in multiple key fairways within the core of the Powder River Basin directly offsetting premier operators actively developing the position • Leasehold is ~75% HBP with no continuous drilling obligations • Inventory is concentrated within delineated fairways across five proved horizons
Slide 5: Accretive Acquisition Creates New Growth Platform in Powder River Basin
Accretive Acquisition Creates New Growth Platform in Powder River Basin (“PRB”) 5 Provides Epsilon a Scalable Platform for Long-Term Organic Growth ‒ 175 gross (111 net) Priority locations3 including 34 net locations affected by the BLM permitting moratorium ‒ Competes for capital in Epsilon’s portf
Slide 6: Recent offset well results indicate strong economics of remaining inventory
Recent offset well results indicative of strong economics of the remaining inventory across key target intervals Key Powder River Basin Well Results Source: Enverus and Company data. 6 Parkman Niobrara Mowry / Turner 3 4 5 6 9 10 11 12 13 14 15 1 2 HUDSON 3526-20H Lateral Length: 11,034’ First Prod:
Slide 7: Transformational Impact Across Key Metrics
~18 Net Loc. 205K ft ~129 Net Loc. 1,324K ft 2Q 2025 Daily Net Production2 Net Acreage ~24,300 Net Acres ~64,800 Net Acres Net Priority Locations3 Proved Reserves1 14.0 MMBoe 35.5 MMBoe Transformational Impact Across Key Metrics 7 Note: Unadjusted 1/1/2025 Effective Date, subject to closing adjustme
Slide 8: Pro Forma Combination Key Metrics
2024 Year-End Proved Net Reserves2 Oil (MMBo) 1.6 11% 12.2 57% 13.8 39% 779% NGL (MMBo) 0.9 6% 0.0 0% 0.9 2% 0% Natural Gas (Bcf) 69.4 83% 55.7 43% 125.1 59% 80% Total Proved (MMBoe) 14.0 100% 21.5 100% 35.5 100% 154% Pro Forma Combination Key Metrics 8 2Q 2025 Daily Net Production1 Oil Production (
Slide 9: Powder River Undeveloped Inventory Summary
Powder River Undeveloped Inventory Summary 9 Teapot Tight sandstone reservoir being developed in other parts of the basin Parkman Tight sandstone reservoir targeted by early horizontal wells in PRB. Recent drilling expanding play to the east Sussex Conventional sandstone reservoir targeted by early
Slide 10: 2026 Preliminary Capital Program
2 29% 7 50% 3 21% Permian Marcellus Powder River (Base) $6 14% $13 33% $22 53% 2026 Preliminary Capital Program Preliminary Capital Program 10 Permian • Remains core growth asset supporting long-term development of oily inventory with 2026 capital allocation of ~$6 MM Marcellus • Expect material dev
Slide 11: Appendix
Appendix 11
Slide 12: Hedge position table
Date Natural Gas Crude Oil Swaps Basis Swaps Costless Collars Swaps Costless Collars Volume (MMcf) Price ($/MMBtu) Volume (MMcf) Basis ($/MMBtu) Volume (MMcf) Bought Put ($/MMBtu) Sold Call ($/MMBtu) Volume (MBbl) Price ($/Bbl) Volume (MBbl) Bought Put ($/Bbl) Sold Call ($/Bbl) 1Q 2025 830 3.57 675
Slide 13: Hedge position table
Date Natural Gas Crude Oil Swaps Basis Swaps Costless Collars Swaps Costless Collars Volume (MMcf) Price ($/MMBtu) Volume (MMcf) Basis ($/MMBtu) Volume (MMcf) Bought Put ($/MMBtu) Sold Call ($/MMBtu) Volume (MBbl) Price ($/Bbl) Volume (MBbl) Bought Put ($/Bbl) Sold Call ($/Bbl) 1Q 2025 217 3.62 - -
Slide 14: Pro forma hedge position table
Date Natural Gas Crude Oil Swaps Basis Swaps Costless Collars Swaps Costless Collars Volume (MMcf) Price ($/MMBtu) Volume (MMcf) Basis ($/MMBtu) Volume (MMcf) Bought Put ($/MMBtu) Sold Call ($/MMBtu) Volume (MBbl) Price ($/Bbl) Volume (MBbl) Bought Put ($/Bbl) Sold Call ($/Bbl) 1Q 2025 1,047 3.58 67
Slide 15: Disclosures: Non-GAAP Financial Measures
Disclosures 15 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