Epsilon Reports Third Quarter 2019 Results
HOUSTON, Nov. 13, 2019 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported third quarter 2019 financial and operating results.
Michael Raleigh, CEO, commented, “Following the initial flow-back and testing phase the operator turned in-line to sales four lower Marcellus wells on October 30th. Due to one of the wells being drilled shorter than planned, resulting from drilling issues, these four wells contributed 8800’ rather than the originally planned 9300’ of completed lateral net to Epsilon’s interests. During the first few days of November these wells were contributing approximately 13.5 MMcf/d to the Company’s net working interest production of roughly 34.0 MMcf/d. This represents a 65% production increase over the third quarter exit rate.In the NW Stack the company participated in one net well. We postponed completion capital allocation given the pricing and differentials for crude oil and natural gas liquids which provide a significant contribution to the economics of the play. We intend to re-visit the pricing environment to determine the appropriate timing of completing wells in this project area.Our team is now focused on the 2020 capital budgeting process and we look forward to updating the market with respect to 2020 production and capex guidance prior to year end.Epsilon will be presenting at the IDEAS conference at the Westin Dallas Downtown on Nov 20th at 1:40 pm Central. We have scheduled a conference call to have a Q&A regarding the 3rd quarter results on November 25th, 2019 and will announce the dial-in details in a separate note”Epsilon’s highlights for the third quarter and material subsequent events following the end of the quarter through the date of this release include:Total Revenues of $5.2 million for the quarter, compared to $7.3 million for the same period of 2018.Net after tax income of $1.5 million for the quarter includes $445 thousand of non-recurring income, compared to $2.5 million for the same period of 2018.EBITDA of $3.9 million for the quarter, compared to $3.8 million for the same period in 2018.Marcellus working interest (WI) gas production averaged 21.9 MMcf/d for the third quarter of 2019.Gathered and delivered 21.1 Bcfe gross (7.4 Bcfe net to Epsilon’s interest) during the quarter through the Auburn Gas Gathering System which represents approximately 69% of the designed throughput capacity.Auburn Gas gathering and compression services included third party gas of 0.7 Bcfe during the quarter or approximately 7.3 MMcf/d.Financial and Operating ResultsCapital Expenditures