Epsilon Energy Ltd. (EPSN): Business Model Canvas [Dec-2025 Updated]

You're trying to make sense of Epsilon Energy Ltd.'s (EPSN) strategy following that transformative Powder River Basin acquisition late in 2025, and frankly, mapping the new mechanics is key to valuation. This isn't just about drilling anymore; the business is now a hybrid, balancing upstream production-which saw natural gas sales alone hit $16.16M in Q1 2025-with stable, fee-based cash flow from their midstream Auburn Gas Gathering System, which brought in $1.845M in Q2 2025. With a pro-forma reserve base of 213 Bcfe and total trailing revenue reaching $45.71M by Q3 2025, you need to see the full picture of how they are managing CapEx (like the $4.0M spent in Q2 2025) against their diversified assets. Dig into the full Business Model Canvas below to see the precise structure driving Epsilon Energy Ltd.'s next chapter.

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

You're looking at the critical relationships Epsilon Energy Ltd. (EPSN) relies on to execute its North American upstream and midstream strategy as of late 2025. These partners are essential for capital deployment, asset management, and governance.

Yorktown Energy Partners: New significant shareholder and board designee

Yorktown Energy Partners has solidified its role as a significant shareholder following recent transactions tied to the acquisition of Peak Exploration & Production, LLC and Peak BLM Lease LLC. On November 14, 2025, Yorktown Energy Partners X, L.P. acquired 2,656,705 shares of Epsilon Energy Ltd. at a price of $4.85 per share. This purchase represented 8.86% of Yorktown Energy Partners X, L.P.'s total holdings.

Also on November 14, 2025, Yorktown Energy Partners XI, L.P. acquired 2,869,560 shares at $4.85 per share. This specific transaction accounted for 6.67% of Yorktown Energy Partners XI, L.P.'s portfolio. Further shares were issued to Yorktown XI as post-closing consideration; on November 21, 2025, 2,234,847 common shares were received under a Membership Interest Purchase Agreement dated August 11, 2025. The original agreement contemplated up to 2.5 million contingent common shares, with the right to an additional 2,500,000 shares for Yorktown XI becoming fixed and irrevocable on November 14, 2025.

The overall Peak acquisition consideration involved the issuance of 6 million Epsilon common shares at closing and the assumption of an estimated $49 million of debt. At closing, Peak shareholders represented approximately 21% of the equity, which could rise to 28% if the maximum contingent shares are issued.

A director of Epsilon Energy Ltd. reports indirect beneficial ownership across several Yorktown funds following these events:

• Yorktown Energy Partners X, L.P.: 2,656,705 common shares
• Yorktown Energy Partners XI, L.P.: 2,869,560 common shares (as of Nov 14) or 634,713 common shares plus the contingent right
• Yorktown Energy Partners IX, L.P.: 1,181,124 common shares

Joint Venture (JV) partners in Marcellus and Alberta for non-operated assets

Epsilon Energy Ltd. partners with private operators to share capital risk and gain access to acreage, particularly in Alberta and the Marcellus Shale. The company's Q2 2025 results included a $2.7 million impairment on the Alberta JV due to cost overruns and early underperformance.

The key non-operated JV structures include:

In the Marcellus Shale, Epsilon has an interest in approximately 5,100 net acres. The operator in the Marcellus is Expand Energy. In 2024, Epsilon participated in the completion of 10 gross (0.82 net) wells. Looking ahead, management expects drilling activity to resume in 2026, planning for 7 gross, 1.2 net wells on 2 pads, with production online in Q4 2026.

Midstream partners operating the Auburn Gas Gathering system

Epsilon Energy Ltd. holds a 35% interest in the Auburn Gas Gathering System. This system is operated by the Williams Companies. The infrastructure includes 45 miles of gathering pipelines and a compression facility with a capacity of 220,000 MMcf/d.

The throughput data shows the system's importance to Epsilon's midstream revenue stream:

• 2024 Gross Gathered Volume: 36.9 Bcf, equating to 101 MMcf/d
• Epsilon's Net Share of 2024 Gathered Volume: 12.9 Bcf
• Q1 2025 Midstream Cash Flow Growth: Increased 140% sequentially on higher throughput volumes
• Q2 2025 Midstream Revenues: $1.845 million

The system discharges into the Tennessee Gas Pipeline, Zone 4.

Oilfield service and drilling contractors for CapEx execution

Epsilon's Capital Expenditures (CapEx) execution in 2025 is focused on Texas and Alberta, with a cautious near-term plan due to oil price volatility. Total projected CapEx for the balance of 2025 is between $9 million to $12 million.

Recent and projected drilling activity details:

• Q3 2025 CapEx: $2.9 million, primarily for the completion of 1 gross (0.25 net) well in Texas
• Q2 2025 CapEx: $4 million, covering drilling 1 gross (0.25 net) well in Texas and completing 1 gross (0.25 net) well in Alberta
• 2025 Balance of Year Plan: Development of 0.5 net wells in Texas and 0.5 net wells in Alberta
• Alberta Expenditure Detail: Includes a $1.5 million drilling carry in favor of the operator

The Texas Barnett well, the eighth in that project, achieved a 30-day gross IP rate of over 870 Boe/d (with 82% oil).

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

You're looking at the core engine driving Epsilon Energy Ltd. (EPSN) right now-the things they must do every day to keep the lights on and grow. It's a mix of drilling, moving gas, buying more assets, and managing the price volatility that defines this sector.

Acquisition, development, and production of oil and natural gas reserves

Epsilon Energy Ltd. focuses on acquiring, developing, and producing natural gas and oil reserves across several North American basins. The company's Q3 2025 performance shows the output from these activities.

Net Revenue Interest (NRI) production for the third quarter of 2025 was:

Daily average production for Q3 2025 stood at 26.7 Mmcfe/d. Capital expenditures for the quarter ended September 30, 2025, totaled $2.9 million, which included the completion of 1 gross (0.25 net) well in Texas. Epsilon Energy Ltd. operates assets in five key areas as of September 30, 2025:

• Marcellus Shale (PA): 11,600 gross acres (5,100 net acres), 139 gross producing wells.
• Powder River Basin (WY): 60,200 gross acres (39,000 net acres), 110 gross operated producing wells.
• Permian Basin (TX): 25% interest in 16,000 gross acres (4,000 net acres), 8 gross producing wells.
• Anadarko Basin (OK): ~7,200 net acres.
• Western Canadian Sedimentary Basin (Canada): 25% interest in 160,000 gross acres, 3 gross producing wells.

Operating the Auburn Gas Gathering System (midstream)

A significant part of the business involves midstream operations through Epsilon Energy Ltd.'s ownership stake in the Auburn Gas Gathering System (GGS). Epsilon owns a 35% interest in this system, which is operated by the Williams Companies and has a compression facility capacity of 220,000 MMcf/d. Midstream revenues for Q3 2025 were $1,445 M, contributing $5,183 M to total revenues year-to-date 2025. For the full year 2024, the system gathered and delivered 36.9 Bcf gross (12.9 Bcf net to Epsilon's interest), equating to 101 MMcf/d. That's a lot of gas moving through their pipes.

Strategic asset acquisition, like the Peak Companies deal in November 2025

Epsilon Energy Ltd. executed a transformational move by closing the acquisitions of Peak Exploration and Production LLC and Peak BLM Lease LLC, referred to as the Peak Companies, on November 14, 2025. This deal added significant Powder River Basin assets. At the Closing, Epsilon Energy Ltd. issued 5,681,489 common shares to the Peak Companies' shareholders. There is a potential for up to 2,500,000 common shares or $6.5 million in cash as contingent consideration. The acquisition also immediately impacted the balance sheet; commitments on the credit facility were increased to $80 million, with loans drawn at Closing reaching $50.5 million. The acquired Peak assets included 40,500 net acres in the PRB, which contributed Q2 2025 production of 2.2 MBoepd (56% oil, 44% gas). Separately, Epsilon Energy Ltd. issued 2,234,847 common shares to Yorktown Energy Partners XI, LP, as part of the consideration for the Peak BLM Lease LLC portion.

Financial risk management via commodity hedging programs

Managing commodity price exposure is a constant key activity. The financial results clearly separate realized prices from the impact of hedging. For Q3 2025, the realized price for gas, excluding hedge realizations, was $2.23/Mcf, while oil realized $63.73/Bbl, excluding hedges. This shows the baseline price environment before risk mitigation strategies take effect. For context, the realized gas price for the full year 2024, excluding hedges, was $1.80/Mcf. Also, Epsilon Energy Ltd. had an authorized share repurchase program in February 2025 to buy back up to 2,200,876 common shares for up to US $13.0 million, though this program was terminated/revoked by February 12, 2025, and a new one authorized. The Q3 2025 dividend payment was $1,379 M.

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

You're looking at the core assets Epsilon Energy Ltd. (EPSN) relies on to generate revenue and fund its strategy. These aren't just line items on a balance sheet; they are the physical and intellectual foundations of the business as of late 2025.

The asset base is now significantly diversified, which is a key risk mitigator in this sector. Epsilon Energy Ltd. has moved beyond its historical focus to build a multi-basin platform. This includes the core Marcellus Shale in Northeast Pennsylvania, the oil-rich Permian Basin in Texas, the Anadarko Basin in Oklahoma, and the Western Canadian Sedimentary Basin (WCSB) in Alberta. The recent acquisition of the Peak assets solidified this diversification by adding a major, under-invested position in the Powder River Basin (PRB) in Wyoming.

The scale of the resource base is best captured by the pro-forma figures following the Peak transaction. Pro-forma Epsilon Energy Ltd. Proved Reserves, based on the year-end 2024 third-party report, stand at 213 Bcfe. This reserve base is now weighted with a higher liquids component, reported as 39% oil and 59% natural gas on that pro-forma basis.

Midstream infrastructure is a critical, stable component of the Key Resources. Epsilon Energy Ltd. holds a 35% ownership interest in the Auburn Gas Gathering System. This system features 45 miles of gathering pipelines and a compression facility with a stated capacity of 220,000 MMcf/d. That infrastructure provides steady, high-margin gathering revenue, which helps buffer the volatility of upstream commodity prices.

The intellectual capital, specifically the operating team, was bolstered by the Peak acquisition. That deal brought in key members of the Peak team who bring over fifteen years of in-basin operating experience. This hands-on expertise is essential for executing development plans in the newly controlled Powder River Basin assets, which include 40,500 net acres.

A strong balance sheet acts as the financial resource, allowing Epsilon Energy Ltd. to pursue growth without overextending. As of the third quarter of 2025, Total Assets were reported at $126.3M. Following the Peak transaction, the pro-forma business is described as conservatively capitalized, with a borrowing base of $95 million and no borrowings drawn at closing. Furthermore, Epsilon Energy Ltd. reported $50 million in available liquidity as of early Q2 2025 highlights.

Here's a quick look at the asset footprint and associated figures:

The operational capacity of the midstream asset is detailed here:

• Epsilon Energy Ltd. Interest in Auburn GGS: 35%
• Gathering Pipeline Length: 45 miles
• Compression Facility Capacity: 220,000 MMcf/d
• Pipeline Discharge Point: Tennessee Gas Pipeline, Zone 4
• Gathering Fee (as of Jan 2024): $0.475 per MMBTU

The successful integration of the Peak team and assets is a key intangible resource. You can see the immediate impact on the inventory count, which increased by over 600% for premium development locations (two-mile net locations underwriting returns over 25% at $65 WTI and $4 Henry Hub). That's a defintely large jump in near-term execution capability.

Finance: draft 13-week cash view by Friday.

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:

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:

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:

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:

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:

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:

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:

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.