Overview

• US natural gas and oil producer's Q1 revenue rose 58% yr/yr on higher prices and production

• Adjusted net income and EPS fell sharply, mainly due to a large unrealized hedge loss

• Company raised cash through asset sales and noted higher operating costs from new production and one-time items

Outlook

• Epsilon expects meaningful new production to come online starting in Q2 2026

• Company says a significant portion of new 2026 volumes will be oil-weighted and exposed to market prices

• Epsilon expects asset sales in Q2 to raise $6.7 mln, with no material impact on future results

Result Drivers

• HIGHER GAS PRICES - Co said strong natural gas pricing in the Marcellus contributed to quarter-over-quarter revenue and cash flow gains

• INCREASED PRODUCTION - Full quarter of production from acquired Powder River Basin assets and higher oil output boosted total volumes

• HIGHER OPERATING COSTS - Unit operating costs rose, mainly due to higher fixed costs from PRB production, workover activity, and a one-time tax expense

Company press release: ID:nGNX1wg0Px

Key Details

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