Epsilon Energy

Epsilon Energy concentrates most of its effort on the Marcellus in Susquehanna County, PA. Epsilon doesn’t actually do any of its own drilling. The company partners with (gives money to) other companies, like Chesapeake Energy, and the other companies do the actual drilling. Epsilon, according to its website, owns ~4,000 net acres in the PA Marcellus. They also own assets in Oklahoma’s Anadarko Basin. In May Epsilon offered to buy back up to 2 million shares of common stock from stockholders (see Epsilon Energy Offers to Buy Back 2M Shares of Common Stock). The company ended up buying back 2.3 million shares.
Read More “Epsilon Energy Buys Back 2.3M Shares of Common Stock”

MDN recently brought you Epislon Energy’s first-quarter 2020 update (see Epsilon Energy 1Q: Still Partners with Chesapeake in NEPA). The company concentrates most of its effort on the Marcellus in Susquehanna County, PA. The company is now offering to buy back up to 2 million shares of its own common stock. What’s that all about?
Read More “Epsilon Energy Offers to Buy Back 2M Shares of Common Stock”

One definition for the word “domestication” means to tame a wild animal, turning it into a farm animal. Another definition means “to bring into use in one’s own country : to bring into domestic use” (Merriam-Webster). It is that later definition Epsilon Energy had in mind when using the term “domestication” to describe a vote by the company’s shareholders to move Epsilon’s base of operations/HQ from Canada to the United States. From time to time we check in Epsilon, both a driller and midstream/pipeline company. Epsilon, largely focused on the Marcellus, 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 has been and remains a relatively small player in the Marcellus. Last year they bought leases in the Anadarko Basin in Oklahoma (see Epsilon Energy: “Focused” on Marcellus, Buying Land in Anadarko). In a recent vote, shareholders voted 99.99% in favor of moving the company from Canada to Houston, TX. Epsilon, in their own press release, called the move “domestication”–which we found amusing. The wild beast of Canada will be tamed and domiciled in Texas–in order to drill in the Marcellus and Oklahoma. Too bad Pittsburgh couldn’t tame this wild beast. There’s plenty of empty office space in Southpointe…
Read More “Epsilon Energy Becoming “Domesticated” – Moving from Canada to U.S.”

From time to time we check in on Canadian driller and midstream company Epsilon Energy. Epsilon, you may recall, 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. At least that’s what they say. Epsilon did not drill any new new Marcellus wells in 2016. They spent just $300,000 on capital expenditures for all of 2016, and that was money spent on the Auburn Gas Gathering system in northeast PA (they own a 35% interest in the system). What about 2017? Epsilon plans to spend $1 million in capex in the Marcellus–half of it “for the ongoing development of the midstream system” (i.e. the Auburn system) and the other half to complete four Marcellus wells previously drilled (see Epsilon Energy’s Marcellus Budget Inches Up to $1M in 2017). Epsilon recently issued its first quarter 2017 update. It shows the company spent just $100,000 on capital expenditures during 1Q17–most of it on the Auburn Gas Gathering system. Revenue was up for the quarter–from $5.6 million in 1Q16 to $8 million in 1Q17. One thing we found somewhat incongruous with their “focus on the Marcellus” statements: the company recently raised money in an “over-subscribed Rights Offering” to “continue building our land position in the Anadarko Basin.” The Anadako is located in Oklahoma and Texas, nowhere near the Marcellus…
Read More “Epsilon Energy: “Focused” on Marcellus, Buying Land in Anadarko”

Last Friday Canadian driller and midstream company Epsilon Energy issued its fourth quarter and full year 2016 update. Epsilon, you may recall, 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. Friday’s update shows Epsilon did not drill any new new Marcellus wells in 2016. They spent just $300,000 on capital expenditures for all of 2016, and that was money spent on the Auburn Gas Gathering system in northeast PA (they own a 35% interest in the system). What about 2017? Epsilon plans to spend $1 million in capex in the Marcellus–half of it “for the ongoing development of the midstream system” (i.e. the Auburn system) and the other half to complete four Marcellus wells previously drilled. In 2015 Epsilon lost $25 million. Last year they lost $3 million–so the bleeding has almost stopped. Here’s Epsilon’s 2016 update…
Read More “Epsilon Energy’s Marcellus Budget Inches Up to $1M in 2017”

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…
Read More “Epsilon Energy Update: IOUs Paid Early, No New Marcellus Wells”

Canadian driller and midstream company Epsilon Energy had a shareholder rebellion last year and threw out the sitting board of directors. 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). How’s the turnaround going? Yesterday Epsilon released their fourth quarter and full year 2013 results. Looks like mixed results. Proved reserves are up, production is up, volumes are up on their gas gathering system, and revenues are up–8% over 2012. However, the company lost $13.5 million for the year (compared to a loss of $4 million in 2012).

Here’s the full update issued yesterday by Epsilon:
Read More “Epsilon Energy’s 2013 Marcellus Strategy Change – Is it Working?”

Wow! What a difference a year can make. Last year at this time, MDN told you about Canadian independent driller Epsilon Energy’s decision to scale back drilling in the Marcellus in favor of drilling more in the oil-rich Bakken Shale play in Canada (see Epsilon Energy 2Q12 Update: Scaling Back in the Marcellus). Less than a month ago, there was a shareholder rebellion and the entire sitting board of directors was canned (see Shareholder Rebellion at Epsilon Energy – New Board as of Today).

Yesterday, Epsilon released their 2Q13 update–an update all about the Marcellus. Epsilon CEO Michael Raleigh is quoted in the update as saying the company is just starting to execute a new plan to turn the company into a “pure play” driller–concentrating solely on drilling in the Marcellus Shale. That’s quite a turnabout in 12 months! Relevant portions from yesterday’s Epsilon update and what they hope to accomplish in the Marcellus this year:
Read More “Epsilon Energy Makes “About-Face” on Marcellus Drilling”

Canadian independent driller Epsilon Energy has released its 2Q12 update. Epsilon focuses on the Pennsylvania Marcellus Shale, the Bakken Shale and Midale Dolomite in Saskatchewan, and the Brown Dense Limestone in Mississippi. Epsilon significantly scaled back its drilling activity in the Marcellus during the second quarter because of low natural gas prices. Instead, they are concentrating on oil drilling in the Bakken Shale region of Canada.

Epsilon also owns a 35% interest in the Auburn gas gathering system, located in the PA Marcellus. Relevant sections of the update pertaining to the Marcellus:

Read More “Epsilon Energy 2Q12 Update: Scaling Back in the Marcellus”