Epsilon Energy Posts Strong Q1, Cuts Debt and Maps Oil-Weighted Growth

Management outlined a 2026 drilling slate focused on Permian and Powder River projects to lift output into 2027.

Overview

Epsilon Energy reported a strong first quarter with adjusted earnings of $0.29 per share driven by higher gas prices and a full Powder River contribution.
Reported profit fell due to unrealized hedge losses tied to oil price moves, which do not affect cash in the period.
The company cut debt by $10 million to $40.5 million after selling a Marcellus overriding royalty interest viewed as non-core.
Growth plans call for a 3‑plus‑mile Barnett well coming online in the second quarter, Niobrara completions in June and a three‑well Parkman program in the fourth quarter.
Management said spending will rise through 2026 to back the oil‑weighted ramp while keeping net debt at about 1.0 to 1.5 times adjusted EBITDA.