Epsilon Energy Update: IOUs Paid Early, No New Marcellus Wells

It’s been a while since we’ve updated you on Canadian driller and midstream company Epsilon Energy. As a reminder, Epsilon had a shareholder rebellion in 2013 and threw out the sitting board of directors (see Shareholder Rebellion at Epsilon Energy – New Board as of Today). Epsilon CEO Michael Raleigh announced at the time that the company had embarked on a turnaround strategy of focusing on the Marcellus Shale–less than a year after saying they would scale back in the Marcellus (see Epsilon Energy Makes “About-Face” on Marcellus Drilling). Epsilon was and remains a very small player in the Marcellus, but the Marcellus is the company’s entire focus. From what we can tell, the company has not drilled, and doesn’t plan to drill, a single Marcellus well–since 2014. However, they do own a 35% interest in the Auburn Gas Gathering system in the northeast PA Marcellus (Williams is majority owner with 44%). Epsilon’s capital expenditures for 2Q16 were a grand total of $100,000, all of it spent on the Auburn system (see Epsilon Energy: Still No Marcellus Drilling, Focused on NEPA Pipe). While the company has not yet released 4Q16 and full year 2016 results, they did announce they will pay back some outstanding debts early. We have those details, along with Epsilon’s 3Q16 update below…

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