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M-U Producer Epsilon Energy Closes on Assets in Texas Permian

Epsilon Energy, a relatively small company, used to concentrate most of its effort on developing Marcellus Shale wells. However, over the past year and a half, the company has expanded into other plays and now owns assets in the Anadarko (Oklahoma and Texas) and the Permian (Texas and New Mexico). Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy (in the Marcellus), and the other company typically does the drilling. Yesterday Epsilon announced closing on another Permian Basin acquisition.
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Epsilon Energy 3Q – Production & Profits Slide in the Marcellus

Epsilon Energy, a relatively small company, used to concentrate most of its effort on developing Marcellus Shale wells. However, over the past year or so, the company has expanded into other plays and now owns assets in the Anadarko (Oklahoma and Texas) and the Permian (Texas and New Mexico). Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy (in the Marcellus), and the other company typically does the drilling. The company’s net gas production during 3Q23 was 2.0 Bcfe (billion cubic feet equivalent) in total, NOT per day. That amounts to an average of 21.5 MMcfe/d (million cubic feet per day), down 14% compared to 2Q23 due to seven PA wells being offline for workover operations. Epsilon generated revenues of $6.3 million for 3Q23, down 3% from 2Q23.
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Epsilon Energy Reports New Drilling on Acreage in PA Marcellus

Is there now a truce in the long-running dispute between Epsilon Energy and Chesapeake Energy over drilling new wells in Susquehanna County, PA? Perhaps! Yesterday, Epsilon, a small publicly-traded energy company that joint venture partners with (gives money to) other companies, like Chesapeake Energy, with the other company doing the drilling, announced that “the operator of our upstream assets in the Marcellus recently notified us of near-term drilling plans on our acreage.” While not named, the “operator” must be Chessy. Epsilon has an ongoing lawsuit against Chesapeake for refusing to drill new wells on its jv acreage.
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Epsilon Energy 2Q Update – CEO Talks About “Gnarly” Marcellus Price

Epsilon Energy, a relatively small company, used to concentrate most of its effort on developing Marcellus Shale wells. However, over the past year, the company has expanded into other plays and now owns assets in the Anadarko (Oklahoma and Texas) and the Permian (Texas and New Mexico). The company, which is traded publicly, issued a quarterly update last week. In a first (that we’ve noticed), Seeking Alpha listened in and provided a transcription of the company’s conference call with analysts. During the Q&A portion of the call, Epsilon CEO Jason Stabell said the netback price the company gets for its production in the Marcellus during the summer is “gnarly.” During 2Q23, Epsilon received an average of $1.35/Mcf for its produced gas.
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Epsilon Energy Gets New $35 Million Line of Credit from Frost Bank

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon is the smallest publicly-traded company operating in the Marcellus/Utica (we think). Yesterday, Epsilon announced a new $35 million line of credit from Frost Bank, which replaces its previous line of credit.
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Epsilon Energy Expands Beyond PA Marcellus with Permian Investment

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA–that is, until now (see below). Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its first quarter 2023 update yesterday. The company’s net gas production was 2.5 Bcf (billion cubic feet) in total, not per day, during 1Q23. That amounts to 27.3 MMcf/d (million cubic feet per day) on average. Epsilon generated revenues of $9.4 million for 1Q23, down 39% from 4Q22.
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Epsilon Energy 4Q – Production Slips but Profits Up 10%

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its fourth quarter and full-year 2022 update last week. The company’s net gas production was 2.49 Bcf (billion cubic feet) in total, not per day, during 4Q22. That number is down 3% from 2.58 Bcf in 3Q21. Epsilon generated revenues of $15.2 million for 4Q22, compared to $13.8 million in 4Q21–up 10%.
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Epsilon 3Q – Production Drops but Profits Soar 586%

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its third quarter 2022 update last week. The company’s Marcellus net gas production was 2.3 Bcf (billion cubic feet) in total, not per day, during 3Q22. That number is down 12% from 2.6 Bcf in 3Q21. The good news is that the company received a lot more money for its production, given recent high prices, meaning it made a good profit.
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Epsilon Energy Issues Dividend; New PA Well Comes Online

Epsilon Energy, one of the smaller Marcellus drillers that we track, issued an update this week to say the company has issued a dividend and has repurchased shares of the company’s stock in an effort to reward and increase value to investors. Epsilon also reports a new well in which they own a share recently came online to sales in Susquehanna County, PA.
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Epsilon Energy 2Q22 – Production Dips, but Revenues & FCF Soars

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon typically does not do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its second quarter 2022 update earlier this week. The company’s Marcellus net gas production was 2.324 Bcf (billion cubic feet) in total, not per day, during 2Q22. That number is down from 2.548 Bcf in 2Q21.
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Epsilon Energy Gets New CEO, CFO Starting July 1st

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. In something of a shakeup, the company announced it is getting both a new CEO and a new CFO beginning tomorrow.
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Epsilon Energy 1Q22 – Production Even, Revenue Up 61%

Epsilon Energy concentrates most of its effort on developing Marcellus Shale wells in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Usually. Epsilon issued its first quarter 2022 update earlier this week. The company’s Marcellus net gas production was 2.4 Bcf (billion cubic feet) in 1Q22.
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Looking to Invest in O&G Companies? M-U Drillers Offer Big Returns

One of the hottest of the hot sectors in which to invest (right now) is shale energy. That’s according to multiple sources, including a veteran finance writer, investor, engineer, and researcher. In an article appearing on the OilPrice.com website, Alex Kimani talks up mid-cap energy stocks as outperforming the supermajors. Among two of Kimani’s top three picks are two Marcellus/Utica drillers, who are having a stellar year in stock performance. We went looking for the stock performance of other M-U drillers too. We have a list to share showing just how much each driller’s share price has increased this year.
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Epsilon Energy 2021 – Production Down 10%, Revenue Up 174%

Epsilon Energy concentrates most of its effort on the Marcellus Shale in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its fourth quarter and full-year 2021 update last week. The company’s Marcellus net gas production was 2.6 Bcf (billion cubic feet) in 4Q21. The company generated revenues of $13.8 million during 4Q21, compared to $5.9 million for 4Q20. Realized natural gas prices averaged $3.65/Mcf including hedges, and $4.36/Mcf excluding hedges.
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Epsilon 3Q: Production Falls, Revenue Doubles, Lawsuit Continues

Epsilon Energy concentrates most of its effort on the Marcellus in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its third quarter update on Wednesday. The company’s Marcellus net gas production was 2.6 Bcf (billion cubic feet) in total for 3Q21, compared to 3.0 Bcf of net gas production in 3Q20 (a 13% decrease). However, revenues were $13.1 million in 3Q21, compared to $5.8 million in 3Q20 (more than doubled). In addition to the 3Q numbers, we have an update on Epsilon’s lawsuit against its partner Chesapeake Energy.
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Epsilon Energy Production Down 10%, Revenues Up 13% in 2Q21

Epsilon Energy concentrates most of its effort on the Marcellus in Susquehanna County, PA. Epsilon doesn’t typically do its own drilling. The company joint venture partners with (gives money to) other companies, like Chesapeake Energy, and the other company typically does the drilling. Epsilon issued its second quarter update last Thursday. The company’s Marcellus net gas production averaged 27.6 million cubic feet per day (MMcf/d) in 2Q21, compared to 30.6 MMcf/d of net gas production in 2Q20 (a 10% decrease). However, revenues were $7.1 million in 2Q21, compared to $6.3 million in 2Q20 (a 13% increase).
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