Epsilon Energy Reserves Jump 150 Percent

Epsilon Energy(NASDAQ:EPSN) reported second quarter 2025 earnings on August 13, 2025, and simultaneously announced the acquisition of Peak Companies, a substantial strategic move that boosts 2024 year-end reserves by over 150%, according to third-party reports from both companies, and liquids production rose by over 200%. Cash flows for the second quarter declined roughly 30% quarter over quarter due to lower realized commodity pricing; the company remains committed to its dividend and outlined a path to diversified future growth across multiple U.S. basins.The addition of Powder River Basin (PRB) acreage via the Peak Companies deal introduces a new oil-weighted core area, providing a diversified operated inventory across multiple productive benches. Epsilon Energy previously focused on the Marcellus, Permian, and Anadarko, but the Peak assets increase its inventory of premium development locations by over 600%, based on two-mile net locations underwritten at 25% returns using $65 West Texas Intermediate (WTI), and $4 Henry Hub assumptions, as disclosed on the earnings call.This acquisition positions Epsilon Energy for increased flexibility in capital allocation and enhances its competitive profile in the small-cap energy sector by supporting diversified growth.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool