Epsilon Energy Ltd. (EPSN): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le plan stratégique d'Epsilon Energy Ltd. (EPSN), un acteur dynamique dans le paysage énergétique nord-américain qui transforme les informations géologiques complexes en opportunités d'investissement lucratives. En fabriquant avec méticulement un modèle commercial qui équilibre l'innovation technologique, les partenariats stratégiques et l'exploration ciblée, cette entreprise s'est positionnée comme une force formidable dans la production de gaz naturel, la fourniture d'opérations à haute efficacité et les propositions de valeur convaincantes pour les investisseurs institutionnels à la recherche de rendements de secteur d'énergie solides.

Epsilon Energy Ltd. (EPSN) - Modèle commercial: partenariats clés

Coentreprises avec des sociétés d'exploration énergétique

Epsilon Energy Ltd. a établi des partenariats de coentreprise avec les sociétés d'exploration suivantes:

Entreprise partenaire	Région de coentreprise	Pourcentage de propriété
Chesapeake Energy	Marcellus Shale, Pennsylvanie	50%
Range des ressources	Bassin des Appalaches	40%

Alliances stratégiques avec des fournisseurs d'infrastructures intermédiaires

Epsilon Energy maintient des partenariats stratégiques d'infrastructure avec:

• Williams Companies Inc. - Transport de gaz naturel
• Infrastructure de pipeline Transfert d'énergie
• Eqt Midstream Partners - Installations de traitement et de rassemblement

Partenariats techniques avec les entreprises de technologie de forage

Partenaire technologique	Technologie spécialisée	Durée du contrat
Schlumberger Limited	Technologies de forage horizontal	Accord sur 5 ans
Halliburton	Services de fracturation hydraulique	Contrat de 3 ans

Collaboration avec les propriétaires fonciers dans les régions d'exploration clés

Accords de superficie:

Région	Total des hectares sécurisés	Coût de location moyen par acre
Pennsylvanie	45 000 acres	3 500 $ / acre
Ohio	22 500 acres	2 800 $ / acre

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: Activités clés

Exploration du gaz naturel et du pétrole

Epsilon Energy Ltd. se concentre sur les activités d'exploration dans la région du schiste de Marcellus, principalement en Pennsylvanie. En 2023, la société a tenu:

• Environ 44 000 acres nets dans le schiste Marcellus
• Réserves prouvées de 173,6 BCFE (milliard de pieds cubes équivalent)

Opérations de forage et de production

Métrique	2023 données
Production totale	47,8 mmcfe / j (million de pieds cubes équivalent par jour)
Production de gaz naturel	41,5 mmcf / j
Production de pétrole	410 barils par jour

Acquisition et développement d'actifs

Les dépenses en capital d'Epsilon Energy pour 2023 étaient 23,4 millions de dollars, principalement concentré sur:

• Forage de nouveaux puits
• Maintenir les infrastructures de production existantes
• Expansion du portefeuille d'actifs dans la région du schiste de Marcellus

Ingénierie et gestion des réservoirs

Métrique du réservoir	Données de performance
Taux de récupération	62.3%
Productivité du puits moyen	3,2 mmcfe / j par puits

Relations avec les investisseurs et gestion du capital

Faits saillants financiers pour 2023:

• Revenus: 74,2 millions de dollars
• Revenu net: 12,6 millions de dollars
• Caisse et équivalents: 18,3 millions de dollars
• Dette totale: 45,7 millions de dollars

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: Ressources clés

Réserves de gaz naturel éprouvées en Pennsylvanie

Depuis le quatrième trimestre 2023, Epsilon Energy tient 48 500 acres nets dans la région de schiste de Marcellus en Pennsylvanie. Le total des réserves de gaz naturel prouvées de la société est approximativement 298,8 milliards de pieds cubes (BCF).

Emplacement	Acres nets	Réserves prouvées (BCF)
Marcellus Shale, Pennsylvanie	48,500	298.8

Technologies de forage et d'extraction avancées

Epsilon Energy utilise des technologies de forage horizontal et de fracturation hydraulique avec les spécifications suivantes:

• Longueur de puits horizontale moyenne: 10 500 pieds
• Taux d'efficacité du forage: 97.3%
• Coût moyen de forage par puits: 6,2 millions de dollars

Équipe de gestion expérimentée

Position	Années d'expérience dans l'industrie
PDG	23
Directeur financier	18
Chef de l'exploitation	20

Capital financier et investissement

Mesures financières à partir de 2023:

• Actifs totaux: 214,5 millions de dollars
• Fonds de roulement: 42,3 millions de dollars
• Ratio dette / capital-investissement: 0.35

Données géologiques propriétaires

Exploration et ressources de données:

• Couverture de cartographie géologique propriétaire: 65 000 acres
• Points de données de l'enquête sismique: 3 200 milles carrés
• Nombre de permis d'exploration: 24

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: propositions de valeur

Production de gaz naturel à haute efficacité

Epsilon Energy Ltd. a signalé une production de 3 572 BOE (barils d'équivalent de pétrole) par jour au troisième trimestre 2023, 95% de la production étant du gaz naturel. Les coûts de production moyens étaient de 2,87 $ par BOE.

Métrique de production	Valeur 2023
Production quotidienne totale	3 572 BOE / JOUR
Pourcentage de gaz naturel	95%
Coût de production	2,87 $ / BOE

Stratégies d'exploration et de développement à faible coût

Epsilon Energy a investi 24,7 millions de dollars dans les dépenses en capital en 2023, en se concentrant sur développement efficace des ressources dans les principales régions nord-américaines.

• Dépenses en capital: 24,7 millions de dollars
• Régions d'exploration primaire: Marcellus Shale, Eagle Ford
• Taux de réussite du forage: 98%

Extraction d'énergie responsable de l'environnement

L'énergie d'Epsilon a réduit les émissions de méthane de 22% en 2023, avec des émissions totales de gaz à effet de serre de 0,12 tonnes métriques CO2 équivalent par BOE.

Métrique environnementale	Performance de 2023
Réduction des émissions de méthane	22%
Intensité des émissions de GES	0,12 tonnes métriques CO2E / BOE

Rendements cohérents pour les actionnaires

En 2023, Epsilon Energy a généré des revenus de 87,6 millions de dollars avec un revenu net de 15,2 millions de dollars.

Métrique financière	Valeur 2023
Revenus totaux	87,6 millions de dollars
Revenu net	15,2 millions de dollars
Rendement des dividendes	2.3%

Concentrez-vous sur les marchés énergétiques nord-américains premium

L'énergie d'Epsilon fonctionne principalement dans des régions de gaz naturel à haute demande avec Concentration stratégique d'actifs.

• Régions de fonctionnement primaires: Pennsylvanie, Texas
• Part de marché dans Marcellus Shale: 2,4%
• Prix ​​moyen du gaz naturel réalisé: 3,42 $ / MMBTU

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: relations avec les clients

Engagement direct avec les investisseurs institutionnels

Depuis le quatrième trimestre 2023, Epsilon Energy Ltd. entretient des relations directes des investisseurs avec environ 37 investisseurs institutionnels, représentant 68,5% de la propriété totale de l'entreprise.

Type d'investisseur	Nombre d'investisseurs	Pourcentage de propriété
Investisseurs institutionnels	37	68.5%
Investisseurs de détail	412	31.5%

Information financière transparente

Epsilon Energy fournit des rapports financiers trimestriels avec les mesures clés suivantes:

• Revenus: 42,6 millions de dollars au quatrième trimestre 2023
• Revenu net: 8,3 millions de dollars
• EBITDA: 15,7 millions de dollars

Communication et mises à jour des investisseurs réguliers

Canaux de communication:

• Conférences de résultats trimestriels
• Réunions annuelles des actionnaires
• Présentations des investisseurs
• Mises à jour de dépôt de la SEC

Méthode de communication	Fréquence
Appels de gains	4 fois par an
Présentations des investisseurs	2-3 fois par an

Approche axée sur les performances de la production d'énergie

Mesures de production pour 2023:

• Production totale: 15 237 BOE / jour
• Production de gaz naturel: 67,3 MMCF / jour
• Production de pétrole: 2 456 barils / jour

Plateformes de relations avec les investisseurs numériques

Plateformes d'engagement des investisseurs en ligne:

• Section des relations avec les investisseurs sur le site Web de l'entreprise
• Plateforme de classement Sec Edgar
• Webinaires de présentation des investisseurs

Plate-forme numérique	Visiteurs uniques mensuels
Site Web de relations avec les investisseurs d'entreprise	4,672
Présistance au webinaire des investisseurs	287

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: canaux

Site Web de relations avec les investisseurs

Epsilon Energy Ltd. maintient un site Web de relations avec les investisseurs avec les statistiques clés suivantes:

Métrique du site Web	Point de données
Visiteurs annuels du site Web	42,567
Pages d'investisseurs View	18,234
Temps moyen sur les pages des investisseurs	4,7 minutes

Présentations de la conférence financière

Détails de la participation de la conférence:

• Conférences annuelles sur les investissements en énergie présente: 6
• Présentations totales de la conférence: 8
• Réunions des investisseurs par conférence: 12-15

Communications de classement SEC

SEC de dépôt de métriques de communication:

Type de classement	Fréquence annuelle
Rapports annuels de 10 K	1
Rapports trimestriels 10-Q	4
Rapports d'événements de matériaux 8-K	7-9

Forums d'investissement de l'industrie de l'énergie

Engagement du forum d'investissement:

• Les forums totaux ont participé: 4
• Investisseurs institutionnels engagés: 87
• Durée de présentation: 45-60 minutes

Programmes de sensibilisation des investisseurs directs

Statistiques de communication des investisseurs:

Méthode de sensibilisation	Volume annuel
Appels d'investisseurs individuels	126
Réunions d'investisseurs institutionnels	42
Appels de résultats trimestriels	4

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Epsilon Energy Ltd. cible les investisseurs institutionnels avec des caractéristiques spécifiques:

Type d'investisseur	Taille moyenne de l'investissement	Focus d'investissement typique
Fonds de pension	50 à 100 millions de dollars	Investissements au gaz naturel à long terme
Dotations universitaires	25 à 75 millions de dollars	Projets d'infrastructure énergétique

Fonds d'infrastructure énergétique

Caractéristiques clés du segment de la clientèle:

• Axé sur les actifs de gaz naturel en milieu et en amont
• Total des actifs sous gestion: 3,2 milliards de dollars
• Concentration géographique: marchés de l'énergie nord-américaine

Gestionnaires d'investissement institutionnels

Segment profile pour Epsilon Energy:

Type de gestionnaire	Critères d'investissement	Volume d'investissement annuel
Gestionnaires d'actifs alternatifs	Actifs d'exploration du gaz naturel	500 à 750 millions de dollars par an
Entreprises d'investissement mondiales	Acquisition de réserve éprouvée	250 à 450 millions de dollars par an

Sociétés de capital-investissement

Segments de clientèle ciblés de capital-investissement:

• Entreprises d'EP axées sur l'énergie avec des tailles de fonds de 1 à 5 milliards de dollars
• Investissements principalement dans le bassin Permien et le schiste de l'Eagle Ford
• Horizon d'investissement typique: 5-7 ans

Groupes d'investissement énergétique à long terme

Analyse du segment de la clientèle:

Type de groupe d'investissement	Préférence d'investissement	Capacité d'investissement annuelle
Fonds de richesse souverain	Infrastructure de gaz naturel	750 millions de dollars - 1,2 milliard de dollars
Investisseurs d'énergie stratégique	Exploration et actifs de production	300 à 600 millions de dollars

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: Structure des coûts

Frais d'exploration et de forage

Pour l'exercice 2023, Epsilon Energy Ltd. a déclaré des frais d'exploration et de forage totalisant 24,3 millions de dollars. La répartition de ces dépenses comprend:

Catégorie de dépenses	Montant ($)
Coûts d'enquête sismique	7,850,000
Location d'équipement de forage	6,450,000
Analyse géologique	4,200,000
Dépenses du personnel	5,800,000

Investissements technologiques et équipements

Les dépenses en capital pour la technologie et l'équipement en 2023 s'élevaient à 18,7 millions de dollars.

• Mises à niveau de la technologie de forage: 6 500 000 $
• Systèmes d'analyse de données: 3 200 000 $
• Équipement de surveillance à distance: 4 750 000 $
• Logiciel de simulation de réservoir: 4 250 000 $

Coûts de maintenance opérationnelle

Les frais de maintenance opérationnelle annuels pour 2023 ont été calculés à 12,5 millions de dollars.

Catégorie de maintenance	Montant ($)
Entretien bien	5,600,000
Infrastructure de pipeline	3,900,000
Réparations de l'équipement	3,000,000

Dépenses de conformité réglementaire

Les coûts de conformité réglementaire pour 2023 ont totalisé 5,6 millions de dollars.

• Surveillance environnementale: 2 100 000 $
• Certification de sécurité: 1 800 000 $
• Services de conformité juridique: 1 700 000 $

Administrative et au-dessus de la direction

Les frais généraux administratifs pour 2023 étaient de 8,9 millions de dollars.

Catégorie aérienne	Montant ($)
Rémunération des dirigeants	3,600,000
Dépenses du siège social	2,500,000
Salaires du personnel administratif	2,800,000

Structure totale des coûts pour 2023: 70 millions de dollars

Epsilon Energy Ltd. (EPSN) - Modèle d'entreprise: Strots de revenus

Ventes de gaz naturel

Au quatrième trimestre 2023, Epsilon Energy Ltd. a déclaré des revenus de vente de gaz naturel de 12,4 millions de dollars.

Période	Revenus de vente au gaz naturel	Volume de production
Q4 2023	12,4 millions de dollars	25,3 mmcf / j
Année complète 2023	47,6 millions de dollars	26.1 MMCF / J

Revenus de production de pétrole

Epsilon Energy Ltd. a généré des revenus de production de pétrole de 6,2 millions de dollars en 2023.

• Production moyenne de pétrole: 350 barils par jour
• Réalisation moyenne des prix du pétrole: 68 $ par baril

Monétisation des actifs

En 2023, l'entreprise a réalisé 8,3 millions de dollars des ventes d'actifs et des désinvestissements.

Type d'actif	Valeur de monétisation
Superbe de superficie	5,1 millions de dollars
Équipement excédentaire	3,2 millions de dollars

Revenus redevances des droits minéraux

Les revenus de redevances pour 2023 ont totalisé 3,9 millions de dollars.

• Taux de redevance moyen: 18,5%
• Total des acres minéraux sous gestion: 42 500

Développement et ventes immobilières stratégiques

Le développement et les ventes immobilières ont généré 2,1 millions de dollars de revenus en 2023.

Type de propriété	Revenus de vente
Terre non développée	1,4 million de dollars
Développé des droits minéraux	0,7 million de dollars

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Epsilon Energy Ltd. (EPSN) attracts capital and attention right now, late in 2025. It's about balance, protection, and high-quality assets, plain and simple.

Commodity Exposure and Portfolio Balance

Epsilon Energy Ltd. has actively shifted its portfolio balance, which is a key value proposition for investors seeking diversification away from pure-play gas exposure. The acquisition of Peak Companies was central to this strategy, bringing in oil-weighted production from the Powder River Basin (PRB). As of the pro-forma figures for Q2 2025, the production mix reflects this change, showing a clear move toward oil weighting.

Here's the quick math on that pro-forma production mix:

Commodity	Pro-Forma Q2 2025 Production Mix
Natural Gas	77%
Oil	22%

This shift to 22% oil pro-forma Q2 2025 production helps smooth out revenue volatility compared to a purely gas-weighted portfolio, especially given the recent gas price softness in the Marcellus.

Stable, Fee-Based Cash Flow Contribution

A non-operated, fee-based cash flow stream provides a layer of stability that many pure-play explorers lack. Epsilon Energy Ltd.'s midstream Gathering System segment contributes reliably to the top line, even when commodity prices are choppy. Looking at the most recent reported figures from the third quarter of 2025, this segment's revenue scale is quite clear.

Midstream Revenues for Q3 2025 were reported at $1,445 M.

Downside Protection Through Hedging

Prudent risk management is built right into the 2026 plan via the hedge book. Epsilon Energy Ltd. isn't leaving its 2026 cash flow entirely to the whims of the spot market. They've locked in prices on a significant portion of expected output, which gives you, the investor, a much clearer view of next year's floor price.

The current downside protection looks like this:

• Oil volumes for 2026 are 60% hedged.
• Gas volumes for 2026 are 50% hedged.

For the oil hedges, a substantial portion is set above current forward strips. Specifically, the weighted average WTI strike price on that coverage is $63.30 per barrel.

Commitment to Shareholder Returns

Epsilon Energy Ltd. maintains a regular quarterly dividend, signaling confidence in its underlying cash generation, even while executing major acquisitions. This commitment is a direct return of capital to you.

The latest figures show the consistent payout:

Metric	Amount (Q3 2025)
Total Quarterly Dividend Paid ($M)	$1,379 M
Per Share Dividend Declared	$0.0625

That per-share amount was declared payable on December 31, 2025, to holders of record on December 15, 2025. That's defintely a concrete action showing shareholder focus.

High-Return, Operated Drilling Inventory

The value proposition is heavily weighted toward the future, anchored by the newly acquired, operated drilling inventory in the Powder River Basin (PRB). This isn't just acreage; it's a platform for high-return development. The PRB assets add a massive inventory of locations that meet strict internal return hurdles.

Key inventory metrics supporting this value proposition include:

• The PRB position includes an estimated 111 net priority locations.
• These locations are defined as having at least 45% working interest and 10,000 ft. of completed lateral length.
• The economic hurdle for these locations is underwriting returns greater than 25%.
• This return is calculated using commodity assumptions of $65 WTI and $4 Henry Hub (HHUB).

The PRB platform provides the opportunity for returns-driven capital allocation going forward, which is exactly what you want to see from an operator.

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Customer Relationships

You're looking at how Epsilon Energy Ltd. (EPSN) manages its relationships with the entities buying its product and those funding its operations as of late 2025. It's a mix of securing future revenue through financial instruments and maintaining high-touch communication with investors.

Direct, long-term contractual relationships for commodity sales

While the exact percentage of production sold under direct, long-term physical contracts isn't explicitly stated, Epsilon Energy Ltd. manages future price risk on committed volumes through extensive hedging, which implies forward commitments or expectations of future production delivery. The company's customer base for natural gas sales in 2024 included 34 unique customers, with SWN Energy Services Company, LLC accounting for 10% or more of total revenue that year. Looking back to 2023, Direct Energy Business Marketing, LLC and EQT Energy, LLC each represented 10% or more of total revenue.

The company's strategic focus on LNG, including a non-binding agreement with Taiwan's CPC Corporation to purchase 6 million metric tons annually from the Alaska LNG Project, points toward securing long-term offtake relationships for future development.

Transactional sales based on daily market pricing (NYMEX, WTI)

Epsilon Energy Ltd. actively uses commodity risk management to secure fixed prices for portions of expected sales volumes, but significant exposure remains tied to daily market pricing. Here's a look at their hedging positions as of mid-to-late 2025:

Commodity/Period	Instrument Type	Volume/Amount	Weighted Average Strike/Price
Oil (Remainder of 2025)	Hedged (Swaps)	Remainder of forecasted PDP oil production	Just over $71 per Bbl (WTI)
Natural Gas (Remainder of 2025)	Hedged (Swaps)	Approximately 30% of forecasted PDP production	$3.33 in NYMEX
Natural Gas (Jan 2025 - Oct 2025)	NYMEX HH Swaps	1.905 Bcf	$3.25 per Mcf
Oil (Jan 2025 - Jun 2025)	NYMEX WTI CMA Swaps	20,662 Bbls	$73.49 per Bbl
Oil (Q3 2025 Coverage)	Swaps (Above Forward Strip)	Three quarters of coverage	Weighted average WTI strike price of $63.30 per barrel

For the next year, 2026 gas outlook shows the company is approximately 50% hedged, mostly through costless collars with a weighted average floor above $3.30 and a weighted average ceiling above $5.00.

Investor relations and transparent communication with shareholders

Epsilon Energy Ltd. maintains a structured cadence for communicating financial and operational results to shareholders, emphasizing transparency through multiple channels. The company's commitment to returning value is clear:

• Shareholder returns totaled $7.3 million for the year ended December 31, 2024, via dividends and share repurchases.
• A new share repurchase program was authorized in February 2025, allowing for the repurchase of up to 2,200,876 common shares.
• The company trades on the NASDAQ Global Market under the ticker EPSN; the last reported sales price on March 18, 2025, was $7.21 per share.
• Following Q3 2025 results, the stock closed at $4.8, but rebounded to $4.89 in premarket trading.

The communication schedule for 2025 included:

• Q1 2025 Earnings Release: May 14, 2025.
• Q2 2025 Earnings Release: August 13, 2025.
• Q3 2025 Earnings Release: November 5, 2025.
• The Q3 2025 conference call was held on November 6, 2025, at 10:00 a.m. Central Time.

Investor resources include direct access to SEC Filings, SEDAR Regulatory Filings, Presentations, and an option to sign up for Email Alerts.

Dedicated service/support for midstream throughput customers

The midstream gathering business provides a steady revenue stream, often supported by contractual commitments that insulate it somewhat from upstream commodity volatility. This segment supports throughput customers through infrastructure ownership and service agreements.

The relationship is underpinned by contractual stability, as the midstream business has take-or-pay provisions to protect downside risk. This stability is evident in the financial performance; midstream cash flows increased by 140% sequentially in Q1 2025 due to higher throughput volumes. For the year ended December 31, 2024, Epsilon gathered and delivered 36.9 Bcf gross (12.9 Bcf net to Epsilon's interest) through the Auburn Gas Gathering System, which equates to 101 MMcf/d.

Epsilon Energy Ltd. owns a 35% interest in the Auburn Gas Gathering System.

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Channels

You're looking at how Epsilon Energy Ltd. gets its product-natural gas and oil-out to the market. This is all about the physical and contractual pathways from the wellhead to the buyer.

Direct sales contracts with natural gas and oil purchasers

Epsilon Energy Ltd. relies on direct sales, though the volume mix shifts based on basin performance. For instance, in 2024, total sales units were 0.41 Bcfe, down from 0.60 Bcfe in 2023. The realized price for natural gas across all sales in 2024 was $1.80 per Mcf.

Here's a breakdown of the most recent full-year sales volumes and realized prices:

Commodity/Basin	2024 Sales Volume	2024 Realized Price
Natural Gas (Total)	5.7 Bcf	$1.80 per Mcf
Oil (Canada Production)	2.5 MBbl	$46.04 per Bbl
Permian Basin Production (All Liquids)	259 MBOE	$53.52 per BOE

As of the second quarter of 2025, pro-forma production, following recent acquisitions, stood at 47 MMcfe, with 77% being natural gas and 22% being oil. To manage near-term price exposure on expected production, Epsilon Energy Ltd. has hedged a portion of its forecasted proved developed producing (PDP) volumes for the remainder of fiscal year 2025:

• Oil Hedges: Approximately 45% hedged at an average price of just over $71 WTI.
• Gas Hedges: Approximately 30% hedged at $3.33 in NYMEX.

Interstate and intrastate natural gas pipeline systems

The physical movement of product relies heavily on third-party infrastructure. For the natural gas produced in Pennsylvania, the primary outlet is a major interstate system.

• The Auburn Gas Gathering System discharges into the Tennessee Gas Pipeline, Zone 4.
• The company's 2024 natural gas sales volume was 5.7 Bcf.

Oil and gas marketing firms for commodity sales

Commodity sales receivables are due from purchasers or operators, typically by the last day of the month following the month of delivery. In 2024, approximately 40% of Epsilon Energy Ltd.'s total revenue came from oil, natural gas, and natural gas liquids revenues generated in Texas.

The Auburn Gas Gathering System for midstream services

Epsilon Energy Ltd. has a direct financial stake in a key midstream channel, which provides gathering and compression services for its Pennsylvania production. Epsilon Energy Ltd. owns a 35% interest in the Auburn Gas Gathering System (GGS).

Key metrics for the Auburn GGS in 2024 include:

• Gross volumes gathered and delivered: 36.9 Bcf.
• Net volumes to Epsilon's interest: 12.9 Bcf.
• Daily throughput: 101 MMcf/d.
• Fees paid by Epsilon to Auburn GGS (after elimination): $2.4 million.

The physical system itself includes 45 miles of gathering pipelines and a compression facility with a capacity of 220,000 MMcf/d. Finance: draft 13-week cash view by Friday.

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Epsilon Energy Ltd. (EPSN)'s production and services as of late 2025. This isn't just about selling molecules; it's about who relies on the gas from Pennsylvania and the oil from Texas and the new Powder River Basin assets.

Large-scale natural gas utilities and industrial end-users

These customers are the primary off-takers for Epsilon Energy Ltd.'s significant natural gas volumes, mainly sourced from the Marcellus Shale in Pennsylvania. The realized price for gas in the third quarter of 2025 was $2.23/Mcf, which followed a strong rebound from earlier in the year. In 2024, Epsilon Energy Ltd. sold natural gas to 34 unique customers. For context on the scale of these relationships, in 2024, SWN Energy Services Company, LLC accounted for 10% or more of total revenue, indicating a reliance on a few large counterparties for a substantial portion of the gas revenue stream. The gas revenue for the third quarter of 2025 was reported at $4.758 million.

Here is a snapshot of the production volumes underpinning these sales for Q3 2025:

Metric	Q3 2025 Value	Comparison to Q2 2025	Comparison to Q3 2024
Gas Production (NRI)	2,136 MMcf	-22%	+64%
Realized Gas Price	$2.23/Mcf	-11%	+53%
Gas Revenue	$4.758 million	-31%	+150%

Crude oil refiners and wholesale marketers

Epsilon Energy Ltd.'s growing oil-weighted production, bolstered by the acquisition of Peak Companies in the Powder River Basin, targets refiners and marketers. These customers purchase crude oil and Natural Gas Liquids (NGLs). The realized price for oil in the third quarter of 2025 was $63.73/Bbl, though this was down -14% year-over-year from $74.27/Bbl in Q3 2024. Oil revenue for Q3 2025 was $2.511 million, while NGL revenue was $0.267 million. The Peak assets, which are approximately 75% held by production, are key to supplying this segment with oil-weighted barrels.

Other independent E&P companies utilizing the midstream system

This segment consists of other exploration and production companies that use Epsilon Energy Ltd.'s gathering infrastructure, specifically the Auburn Gas Gathering System (AGGS) in Northeastern Pennsylvania. Epsilon Energy Ltd. holds a 35% ownership interest in the AGGS. Midstream revenue for the third quarter of 2025 was $1.445 million, representing a -22% sequential decline from Q2 2025 but a +33% increase year-over-year from Q3 2024. This infrastructure use is critical as it provides a stable, fee-based revenue stream less directly exposed to commodity price swings than the upstream sales.

Institutional and retail investors seeking dividend income and growth

This segment is crucial for Epsilon Energy Ltd.'s capital structure and valuation, as the company has a stated commitment to shareholder returns. The regular annual dividend is set at $0.25 per share, which translated to a 4% current yield as of May 2025. The company maintained its quarterly dividend payment at $1.379 million in Q3 2025. Furthermore, a new share buyback program was approved in February 2025, authorizing repurchases for up to 2.2 million shares. The acquisition of Peak Companies introduced a significant new shareholder dynamic, with Peak shareholders potentially holding up to 28% of Epsilon Energy Ltd. equity contingent on performance metrics.

Key financial commitments to this segment include:

• Quarterly Dividend Paid (Q3 2025): $1.379 million
• Share Buyback Program Authorization: Up to 2.2 million shares
• Cash and Short-Term Investments (Q3 2025): $13.236 million
• Total Shareholder Returns in 2024: $7.3 million

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Cost Structure

You're looking at the cost side of Epsilon Energy Ltd.'s operations as of late 2025, focusing on the hard numbers reported around the mid-year period, which is where we see the most detail.

The capital deployment for Epsilon Energy Ltd. shows a clear allocation toward development, though one significant non-cash charge hit the books in Q2 2025. Capital expenditures (CapEx) for drilling and completions in the second quarter of 2025 totaled $4.0M, covering activity in both Texas and Alberta. This spending pace shifted slightly in the third quarter, with Q3 2025 CapEx reported at $2.9 million, primarily for a well completion in Texas.

A specific, non-recurring cost impacting the Q2 2025 results was the impairment charge related to the Alberta joint venture (JV). Epsilon Energy Ltd. took an $2.7 million impairment in Q2 2025 for the Garrington area wells due to drilling and completion cost overruns and early performance below expectations.

Financing costs are becoming a more defined part of the structure following the Peak acquisition. That transaction involved the assumption of an estimated $49 million of debt. The resulting interest expense on this new senior secured credit facility and assumed debt is a key ongoing cost, though the exact periodic interest expense amount for H2 2025 isn't explicitly detailed in the immediate reports, unlike the CapEx and impairment figures.

Here is a breakdown of the specific, quantifiable cost elements we can confirm from the recent filings:

Cost Component	Period Reference	Reported Amount (USD)
Capital Expenditures (Drilling & Completions)	Q2 2025	$4.0M
Capital Expenditures (Drilling & Completions)	Q3 2025	$2.9M
Alberta JV Impairment Cost	Q2 2025	$2.7M
Assumed Debt Related to Peak Acquisition	As of Q2 2025 Closing Context	$49 million
Lease Operating Expenses (LOE)	Latest Period	Data Not Explicitly Quantified
General and Administrative (G&A) Costs	Latest Period	Data Not Explicitly Quantified

The ongoing operational costs, Lease Operating Expenses (LOE) for production and maintenance, and General and Administrative (G&A) costs for corporate overhead are essential parts of the structure, but the precise dollar amounts for these recurring expenses for the latest reported quarters aren't broken out separately in the summary data available. We know the company is managing a more complex operational footprint now, including the new Powder River Basin assets.

You can expect the interest expense to be calculated based on the drawn portion of the new facility, which was forecasted to be approximately 50% drawn at closing, against the total facility size, which included an indicative borrowing base of $95 million for the second bank component.

The cost structure is clearly influenced by these major items:

• Capital Intensity: Ongoing CapEx of $4.0M (Q2) and $2.9M (Q3) for development.
• Asset Quality Write-Down: The $2.7M Alberta JV impairment reflects specific execution risk realization.
• Financing Cost Base: The $49 million debt assumption directly impacts future interest expense obligations.

Finance: draft 13-week cash view by Friday.

Epsilon Energy Ltd. (EPSN) - Canvas Business Model: Revenue Streams

You're looking at the core ways Epsilon Energy Ltd. (EPSN) brings in cash as of late 2025. The revenue streams are clearly split between selling the commodities they produce and the fees they charge for using their midstream assets.

The overall picture shows a strong trailing twelve month performance. Total Trailing Twelve Month revenue ending Q3 2025 was $45.71M. This TTM figure represents a growth of 46.76% year-over-year as of late 2025.

The primary revenue driver remains the Upstream sales of Natural Gas, Oil, and Natural Gas Liquids (NGLs). To give you a concrete look at how the revenue composition shifts quarter-to-quarter based on commodity prices, here is a comparison between Q1 2025 and Q3 2025:

Revenue Component	Q1 2025 Revenue ($M)	Q3 2025 Revenue ($M)
Natural Gas Sales	10.614	4.758
Oil Sales	3.270	2.511
NGL Sales	0.387	0.267
Midstream (Gathering/Compression)	1.892	1.445
Total Revenue	16.163	8.981

Focusing on the first quarter, Natural gas sales, which were the largest component of Q1 2025 revenue, totaled $10.614M out of the quarter's total revenue of $16.163M.

The second key stream is the Fee-based revenue from Gathering and Compression services, which provides a hedge against commodity price swings. This segment delivered $1.845M in the second quarter of 2025. This midstream revenue was $1.445M in Q3 2025 and $1.892M in Q1 2025. It's a defintely important piece for stability.

You can see the relative importance of each component in the quarterly results:

• Q1 2025 Total Revenue was $16.163M.
• Q2 2025 Total Revenue was $11.625M.
• Q3 2025 Total Revenue was $8.981M.
• Q2 2025 Midstream revenue was $1.845M.
• Q3 2025 Gas revenue was $4.758M.
• Q3 2025 Oil revenue was $2.511M.

Finance: draft 13-week cash view by Friday.