Overview
- Epsilon used its earnings call to detail a 2026 plan with seven approved permits, two long‑lateral Niobrara wells slated for second‑quarter completions, and three Parkman laterals expected to reach first production in the fourth quarter.
- Management pegged net capital outlays at about $6 million for the Niobrara work and about $22 million for the Parkman program, giving investors a clear map of near‑term spending.
- Epsilon is raising liquidity by marketing a Marcellus royalty package and selling a Colorado office under a $3 million contract, while paying down $5 million of debt and keeping its dividend and a buyback authorization up to 10%.
- Risk management remains front and center with roughly 60% of proved developed producing volumes hedged and a leverage goal below 1.5x, with new oil volumes from planned wells left unhedged for potential upside.
- The update follows a strong 2025 that saw adjusted EBITDA rise 75%, production climb 54%, and total proved reserves reach 156 Bcfe after the Peak Companies deal added Powder River Basin inventory and cleared prior federal permitting bottlenecks.