Epsilon Energy Ltd. (EPSN): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into Epsilon Energy Ltd. (EPSN) right after that massive Powder River Basin acquisition closed in November 2025, and honestly, it's a pivotal moment for this small-cap producer. Forget the usual consumer marketing fluff; their whole strategy hinges on upstream production-which hit 2,456 Mmcfe in Q3 2025-and how they manage commodity volatility. We need to look past the asset map, which now includes the PRB, to see if their Place strategy supports their Price defense, like hedging 60% of 2026 oil volumes at a $63.30/Bbl strike. Below, I've mapped out the four P's, translating their investor communications into the hard numbers that matter for capital allocation and risk control.

Epsilon Energy Ltd. (EPSN) - Marketing Mix: Product

The product element for Epsilon Energy Ltd. (EPSN) centers on the exploration, development, and production of hydrocarbons, complemented by a strategic midstream asset ownership.

Epsilon Energy Ltd.'s core offering involves the upstream production of natural gas, crude oil, and natural gas liquids (NGLs) from its key operational areas: the Marcellus Shale in the Appalachian Basin, the Powder River Basin in Wyoming, and the Permian Basin in Texas. The company also holds a significant interest in midstream services.

The midstream component is the Auburn Gas Gathering system in Pennsylvania. Epsilon Energy Ltd. owns a 35% interest in this system, which is operated by the Williams Companies.

The physical characteristics of the midstream asset include:

• 45 miles of gathering pipelines.
• Compression facility capacity of 220,000 MMcf/d.
• Discharges into Tennessee Gas Pipeline, Zone 4.
• A fixed rate contract as of January 2024 set the gathering fee at $0.475 p/MMBTU.

For the third quarter of 2025, Epsilon Energy Ltd.'s net revenue (NRI) production was reported as follows:

This production figure represented a 20% quarter-over-quarter fall, attributed to shut-ins in Texas and seasonal operator shut-ins in the Marcellus.

A major product strategy shift is underway following the acquisition of Peak Companies, which is expected to bolster the oil component of the portfolio. Pro-forma Q2 2025 production for the combined entity was estimated at 77% natural gas and 22% oil. However, the newly acquired Powder River Basin assets are oil-weighted. Furthermore, a recently completed Texas Barnett well showed a 30-day gross IP of greater than 870 Boe/d, with 82% oil content.

Epsilon Energy Ltd. is concentrating development efforts on its high-return, operated inventory across multiple productive benches to maximize returns. The Peak acquisition added substantial inventory, specifically:

• An estimated 175 gross (111 net) Priority locations in the Powder River Basin.
• Parkman locations in Converse County, Wyoming, which generate internal rates of return (IRRs) up to 170%+ and 10 month payouts, based on a $65 WTI and $4 HHUB price assumption.

The company's overall asset base includes approximately 5,100 net acres in the Marcellus Shale and 4,000 net acres in the Permian Basin (Barnett Shale).

Epsilon Energy Ltd. (EPSN) - Marketing Mix: Place

You're looking at how Epsilon Energy Ltd. (EPSN) physically gets its product-natural gas, oil, and NGLs-to the market, which is all about their asset footprint and infrastructure. This company definitely focuses on the North American onshore, building a diversified asset base across five key basins. That geographic spread is central to their distribution strategy.

The core of Epsilon Energy Ltd.'s production and operational control lies in two major areas. First, the Marcellus Shale in Pennsylvania, where they hold an interest in approximately 11,600 gross acres (5,100 net acres) in the high-quality gas window. Second, their position in the Permian Basin in Texas, specifically targeting the oil-rich Barnett Shale, where Epsilon Energy Ltd. holds a 25% working interest in 16,000 gross acres (4,000 net acres).

A significant recent move to enhance their place strategy was the acquisition of Peak Exploration and Production LLC and Peak BLM Lease LLC, which closed on November 14, 2025. This brought a new, operated position in the Powder River Basin (PRB) in Wyoming. The acquired Peak assets included 40,500 net acres in the core of the PRB and added approximately 2,200 net barrels of oil equivalent of daily production, with 56% being oil. This PRB platform is now a primary project area for capital deployment.

Beyond these core operated areas, Epsilon Energy Ltd. maintains non-operated interests in two other significant regions:

• Western Canada Sedimentary Basin (WCSB) in Alberta.
• Anadarko Basin in Oklahoma.

To support the movement of product, Epsilon Energy Ltd. has a stake in critical midstream infrastructure. They own a 35% interest in the Auburn Gas Gathering System (GGS), located in Susquehanna County, Pennsylvania, and operated by the Williams Companies. This system is designed for significant throughput, with the compression facility having a stated capacity of 220,000 MMcf/d. This infrastructure connects production to the Tennessee Gas Pipeline, Zone 4.

Here's a quick look at the geographic distribution of Epsilon Energy Ltd.'s key asset bases as of late 2025:

The distribution strategy is clearly weighted toward controlling operations in high-potential US shale plays, supplemented by a fee-based revenue stream from the Auburn GGS, which provides stability regardless of commodity price swings. Finance: draft 13-week cash view by Friday.

Epsilon Energy Ltd. (EPSN) - Marketing Mix: Promotion

You're looking at Epsilon Energy Ltd. (EPSN) promotion strategy as of late 2025, and honestly, it's not about billboards or TV spots. For an upstream energy company like Epsilon Energy Ltd., promotion is almost entirely focused on investor relations and strategic communication, making sure the right financial story reaches analysts and shareholders.

The core message Epsilon Energy Ltd. pushes centers on financial discipline and the accretive nature of its recent growth. A key talking point, communicated heavily since the August announcement, is the strategic objective tied to the Peak Companies acquisition. This deal is touted to deliver a targeted reserve increase of approximately 150% of proved reserves, moving from 21.5 MMBoe to 213 Bcfe pro forma. That's scale you can measure.

Financial stability is signaled directly through shareholder returns. Epsilon Energy Ltd. maintained its commitment to a consistent dividend payout, which is a strong promotional signal to the market. For the third quarter of 2025, the total dividends paid amounted to $1,379M. This was underpinned by the declared quarterly dividend of $0.0625 per share, which annualizes to $0.25 per share.

When CEO Jason Stabell speaks, the narrative reinforces the strategic shift. He emphasizes adding scale, maintaining strict capital control, and securing highly economic inventory at what he described as an attractive valuation. For instance, the undeveloped acreage in the Powder River Basin was valued at just $1,100 per acre or $340,000 per priority location. That's concrete detail for the financially literate audience.

The primary channels for this communication are formal, data-heavy releases and calls. Epsilon Energy Ltd. used its press release on November 5, 2025, and the subsequent earnings call on November 6, 2025, to detail operational excellence and capital discipline. You see the results of this discipline laid out clearly in the reported figures.

Here's a look at the key Q3 2025 financial metrics Epsilon Energy Ltd. used to communicate performance during that period:

The communication strategy also highlights specific operational achievements that back up the financial claims. They use these data points to show they are executing on the ground, which is essential for credibility in this sector.

• Completed Texas Barnett well with a 30-day gross IP >870 Boe/d (82% oil).
• Pro forma for Peak, liquids production rose by over 200%.
• The company is hedging for 2026, with oil hedged at a weighted average WTI strike of $63.30 per barrel.
• Gas hedging for 2026 has a weighted average NYMEX floor above $3.30.
• The Q3 2025 EPS of $0.05 beat the forecast of $0.03 by 66.67%.

The use of the earnings call, with toll-free participation lines like (833) 816-1385 for US/Canada, ensures broad access for the target audience of investors and analysts. It's about providing the raw numbers and the strategic narrative in tandem.

Epsilon Energy Ltd. (EPSN) - Marketing Mix: Price

Price for Epsilon Energy Ltd. is fundamentally driven by realized commodity prices, which are subject to significant market volatility.

The realized prices for the third quarter of 2025, excluding the impact of any hedge realizations, provide a clear snapshot of revenue generation before risk mitigation strategies take effect. You see this clearly in the Q3 2025 results:

• Gas realized price was $2.23/Mcf.
• Oil realized price was $63.73/Bbl.

Here's a quick view of those key Q3 2025 realized prices compared to the prior quarter and year:

To manage this volatility, Epsilon Energy Ltd. employs hedging strategies. While specific 2026 volume percentages and strike prices were not detailed in the latest reports, the company's overall approach is to provide price protection. For instance, the realized price for oil in Q3 2025 of $63.73/Bbl compares closely to the $65.87/Bbl realized year-to-date 2025 figure (excluding hedges). Also, in the Marcellus, operator elected shut-ins occurred in the second half of Q3 2025 in response to sub-$2 net gas pricing.

Capital allocation reflects this pricing reality, prioritizing projects that underwrite strong returns. For example, the company has been focused on integrating the Powder River Basin acquisition, with plans for approximately $20 million in capital expenditures on Peak assets. Furthermore, Epsilon's near-term activity plan for the remainder of 2025 involved a capital expenditure range of $9 million to $12 million. On the midstream side, the Auburn GGS owners have an agreement to achieve a contractual rate of return of 18% on invested capital, which runs through December 31, 2026.

You should track the following key financial data points related to pricing and investment decisions:

• Q3 2025 Total Revenues: $8,981 thousand.
• YTD 2025 Total Revenues: $36,769 thousand.
• Q3 2025 Adjusted EBITDA: $4,365 thousand.
• Cash + Restricted Cash on hand as of Q3 2025: $13,236 thousand.

Finance: draft 13-week cash view by Friday.