Full Year and Q4 2025 Highlights:
Epsilon - Full-Year 2025 & Q4 2025
2025
2024
Q4 2025
Q3 2025
YoY%
QoQ%
NRI Production
Gas
MMcf
10,001
6,142
2,373
2,136
63
%
11
%
Oil
MBbl
223
187
94
39
20
%
138
%
NGL
MBbl
81
69
43
14
17
%
211
%
Total
MMcfe
11,825
7,676
3,196
2,456
54
%
30
%
Daily
MMcfe/d
32.4
21.0
34.7
26.7
Revenues
$M
Gas
29,121
10,786
6,839
4,758
170
%
44
%
Oil
13,804
13,731
5,299
2,511
1
%
111
%
NGL
1,979
1,482
1,180
267
34
%
342
%
Midstream1
6,684
5,524
1,501
1,445
21
%
4
%
Total
51,588
31,523
14,818
8,981
64
%
65
%
Realized Prices2
Gas
$/Mcf
2.91
1.76
2.88
2.23
66
%
29
%
Oil
$/Bbl
61.90
73.61
56.44
63.73
-16
%
-11
%
NGL
$/Bbl
24.43
21.41
27.17
19.12
14
%
42
%
Adj. EBITDA3
$M
30,744
17,578
7,553
5,240
75
%
44
%
Cash + STI4
$M
9,513
6,990
9,513
13,236
36
%
-28
%
Capex5
$M
15,259
18,926
1,641
2,885
-19
%
-43
%
Dividend
$M
5,998
5,487
1,868
1,379
9
%
36
%
Adj Net Income6
$M
21,294
3,639
11,103
1,947
p/share7
$
0.92
0.17
0.43
0.09
1) Net of elimination entry for fees paid by Epsilon
2) Excludes impact of hedge realizations
3) Excludes transaction costs
4) Includes restricted cash balance
5) Excludes acquisitions
6) Excludes one-time / non-recurring expenses for transaction costs, impairments, and loss on asset sale
7) Calculated on weighted average shares outstanding for the period
Note: The acquisition of the Peak companies was closed on November 14, 2025 and the Powder River Basin (Wyoming) results are reflected from the closing date to year-end.
Jason Stabell, Epsilon's Chief Executive Officer, commented, "Over the past three years, we have repositioned Epsilon into a differentiated, multi-basin platform that is unique among small-cap energy companies. Building on our legacy position in the Marcellus—where we are partnered with a premier operator in one of the lowest-cost natural gas basins in the world—we have added exposure and meaningful organic growth potential in one of the most attractive emerging plays in the Permian. Recent announcements from leading public Permian operators, including Occidental and Diamondback, further underscore the industry's growing enthusiasm for the Barnett oil play.
In January, a leading private-equity-backed operator assumed operations of our 16,600-gross-acre Ector County Barnett project, a transition we expect will accelerate development cadence and improve capital efficiency. In 2026, we expect to participate in up to 4 gross wells (1 net). The first well was drilled and cased this month as a 3-mile completion (the first 3-mile well in the project), which is expected to begin production by June. Based on preliminary discussions with the operator, we see an additional 8-10 gross wells (2-2.5 net) drilled and completed in 2027. Going forward, we anticipate all Barnett wells in the project will be 3-mile laterals. In late 2025, we closed the transformative acquisition of the Peak companies, with assets in the Powder River Basin ("PRB"), adding a new focus area with approximately 40,000 net acres in the core of the basin, along with an experienced operating team. Across the PRB, we now control over 100 highly economic net locations, with near-term development focused on 21 gross (15 net) Parkman locations that generate rates of return in excess of 60% at $65 oil. Our current 2026 plans include completing 2 gross Niobrara DUCs (0.7 net) in the second quarter, followed in the third and fourth quarters by the drilling and completion of up to 3 gross (2.8 net) Parkman wells, with production expected in the fourth quarter.
Looking ahead, we intend to build on the momentum created in 2025 when we grew adjusted EBITDA 75% and production 53% year over year. Our portfolio provides shareholders with a large and diversified portfolio of high-quality oil and natural gas inventory; non-operated partnerships with leading operators in the Permian and Marcellus; a minority interest in a free cash flow generating PA midstream asset; and a highly economic, operated, largely held by production (~75%) acreage position in the PRB.
We believe Epsilon now represents one of the most compelling organic growth opportunities in the North American onshore upstream sector. We remain committed to our fixed dividend and expect to deliver meaningful per-share growth in earnings, cash flow, and production over the coming years, while targeting an average annual leverage ratio below 1.5X."
$M
Q125
Q225
Q325
Q425
2025
GAAP Net Income (Loss)
4,016
1,551
1,072
-11,486
-4,847
One-time adjustments
Transaction Costs
875
2,073
2,948
Impairment - NM
700
700
Impairment - Canada
7
2,670
559
3,236
Loss - Oklahoma Sale
19,257
19,257
Adj. Net Income
4,023
4,221
1,947
11,103
21,294
WA Shares O/S
22,110
22,202
22,160
25,966
23,021
P/Share
$
0.18
$
0.19
$
0.09
$
0.43
$
0.92
Reported net income (loss) is adjusted in the tables above by one-time expenses during the year. Adjusted net income is presented to show normalized performance over the year.
Transaction costs include advisory and legal services incurred by the Company related to the acquisition of the Peak companies.
The impairments in New Mexico and Canada impacted a total of 4 gross (0.7 net) wells and are the result of an offset frac hit impacting production (New Mexico) and low forward oil prices on December 31, 2025, which are required to be used in impairment testing.
Management believes the consideration received in the divestiture of the Oklahoma assets was very attractive (cash received + cash tax savings together were over 8X expected 2026 cash-flow from the assets). The write-off was primarily the balance held in undeveloped leasehold. The Oklahoma assets did not compete for capital in the Company portfolio. The divested Oklahoma assets represented 3% of the year-end 2025 Proved Developed Produced reserves and 3% of 2025 total Company production.
2025 Operations:
Epsilon's capital expenditures were $15.3 million for the year ended December 31, 2025 (excluding acquisitions), a 19% increase year over year. The spending was primarily related to the drilling and completion of 2 gross (0.5 net) Glauconitic wells in the Garrington area of Alberta, Canada ($9 million, including $4.9 million of drilling carry in favor of the operator) in the first half of the year, and the drilling and completion of 1 gross (0.25 net) Barnett well in Texas ($3.6 million, the eighth well in the project).
The Company expects the level of spending in 2026 will increase meaningfully year over year, with accelerated activity in the Permian, with up to 4 gross wells (including three 3-mile Barnett wells), the first operated activity in the PRB, with the completion of 2 gross (0.7 net) Niobrara wells and the drilling and completion of 3 gross (2.8 net) Parkman wells, and resumed activity in PA, with 5 gross (0.38 net) Marcellus wells to be developed during the year by our operating partner.
The Auburn Gas Gathering System (Epsilon is a 35% owner) gathered and delivered 40.5 Bcf gross natural gas volumes during the year, or 111 MMcf/d.
Q1 2026 Update:
During January 2026, the Company earned $11.4 million of revenue driven by very strong regional cash gas pricing in PA during the end of the month. While gas prices did not maintain those levels into the following month, the company expects strong quarter over quarter revenue and cash flow growth.
In March 2026, the Company made a $5 million repayment on its outstanding debt balance, leaving the current outstanding balance at $45.5 million.
The Company received 5 well proposals from our operating partner in PA (Expand Energy), totaling 0.38 net wells, with a weighted average lateral length of ~15,000 CLL ft. The wells are planned to spud in late Q1 and Q2, with completion dates in the second half of the year.
Additionally, the Company went under contract to sell its owned office building in Durango, Colorado (which was acquired in the Peak acquisition), for $3 million. The sale is expected to close in the second quarter.
Reserves:
The Company has received the year-end 2025 third-party reserves reports completed by the engineering firms DeGolyer & MacNaughton ("D&M") and Cawley Gillespie & Associates ("CG&A"). The CG&A report only includes the Wyoming assets. CG&A was the third-party engineer for the assets before the acquisition by the Company. The table below summarizes the reports.
Epsilon Net Year End Reserves
12/31/2024
12/31/2025
YoY Change
Oil
NGL
Gas
Total
Oil
NGL
Gas
Total
Oil
NGL
Gas
Total
Total
Mbbl
Mbbl
MMcf
Mmcfe
Mbbl
Mbbl
MMcf
Mmcfe
Mbbl
Mbbl
MMcf
Mmcfe
%
Proved Developed
847
490
56,851
64,872
4,000
1,599
75,849
109,444
3,153
1,109
18,998
44,572
69%
Proved Undeveloped
725
387
12,551
19,225
5,259
753
10,523
46,594
4,534
366
(2,028
)
27,369
142%
Total Proved
1,572
877
69,402
84,097
9,259
2,352
86,372
156,037
7,687
1,475
16,970
71,940
86%
Total Probable
380
384
137,906
142,487
26,318
13,090
262,283
498,729
25,938
12,706
124,377
356,242
250%
Total Proved + Probable
1,952
1,261
207,308
226,584
35,576
15,442
348,655
654,766
33,624
14,181
141,347
428,182
189%
As shown in the table above, Company Proved reserves increased 86% year over year, and Company Probable reserves increased by 250% year over year. The increase was driven by the acquisition of the Wyoming assets, adding 12.8 Mboe of Proved and 57.3 Mboe of Probable reserves.
The majority of the Company's inventory in Texas is not included in the reserve report, due to no offset producing wells in the Southern (undeveloped) portion of the project. The Company and the operating partner believe the unaccounted-for inventory is comparable to the existing wells in the project and expects to add meaningful reserves in Texas with incremental development.
Proved reserves for the Wyoming (PRB) assets for year-end 2025 (77,028 MMcfe or 12,838 MBoe) were 40% lower than the year-end 2024 report, also provided by CG&A. This revision is almost entirely attributable to a more measured approach in the development pace assumption, which removed 25 gross wells and approximately $130 million of capital from the 5-year forward SEC window for the development of Proved reserves. The change is not due to reserve prospectivity. The development pace assumptions included in the reserve reports are subject to change.
The majority of the Company's inventory in PA and Wyoming is included in Probable reserves, due to the development of those reserves occurring outside of the 5-year forward SEC window for the development of Proved reserves.
Current Hedge Book:
Date
Natural Gas
Crude Oil
Swaps
