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Here are 1-2 brief analogies for Epsilon Energy (EPSN):

• A smaller, independent oil and natural gas exploration and production company, akin to a regional ConocoPhillips.
• Like a smaller EOG Resources, focused on finding and producing oil and gas in specific U.S. basins, and also owning some natural gas gathering pipelines.

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• Natural Gas Production: Epsilon Energy extracts and produces natural gas from its reserves in regions like the Marcellus Shale and Anadarko Basin.
• Oil Production: The company produces crude oil from its operational areas, primarily within the Anadarko Basin.
• Natural Gas Liquids (NGL) Production: Epsilon Energy extracts and processes natural gas liquids, a byproduct of natural gas processing, from its reserves.
• Hydrocarbon Gathering Services: The company operates and manages gathering systems for collecting and transporting natural gas, oil, and NGLs from wellheads to processing or transmission facilities.

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Epsilon Energy (EPSN) primarily sells its natural gas, crude oil, and natural gas liquids (NGLs) to other companies.

Its major customer is:

• Chesapeake Energy Marketing, LLC, a subsidiary of Chesapeake Energy Corporation (NYSE: CHK)

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Jason Stabell, President / Chief Executive Officer

Mr. Stabell has worked in the energy industry since 1998, focusing on upstream exploration and production. He previously served as President and CEO of Merlon International, LLC, a privately held company with assets in the Western Desert of Egypt and the US Gulf Coast, which was sold in 2019 to a publicly listed UK company. He continued as an advisor there until 2021. Prior to that, he was the CFO and then President of the privately held Merlon Petroleum Company, which was sold in 2006. Mr. Stabell began his career as an analyst in the Planning and Analysis Group at Salomon Smith Barney and has also been active as a private investor.

Andrew Williamson, Chief Financial Officer

Mr. Williamson has spent his entire career in the energy business. From 2012 to early 2019, he served as Corporate Development Manager and then Vice President Finance (CFO) of Merlon International, LLC. More recently, he was the Corporate Strategy Manager for Petrosantander Inc. Mr. Williamson and Jason Stabell have a track record of value creation in their prior upstream endeavors, having worked together for over 10 years.

Henry Clanton, Chief Operating Officer

Glen Christiansen, Senior Vice President Rockies

Justin Vaughn, Senior Vice President Rockies Commercial

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The key risks to Epsilon Energy's business include the inherent volatility of oil and natural gas prices, regulatory challenges in the energy sector, and potential risks associated with its geographic concentration.

1. Volatile Oil and Natural Gas Prices: Epsilon Energy's financial performance is highly susceptible to fluctuations in commodity prices for oil and natural gas. These price changes can significantly impact the company's revenues, profitability, and its capacity to fund operations and future investments.
2. Regulatory Challenges: The company faces risks related to evolving governmental regulations, particularly those concerning hydraulic fracturing and environmental protection. Changes in these laws could lead to increased operational costs or restrictions, thereby affecting Epsilon Energy's business.
3. Geographic Concentration and Regional Risks: A substantial portion of Epsilon Energy's revenue has historically been generated from natural gas production and gathering systems in Pennsylvania. This concentration exposes the company to specific regional economic conditions, regulatory changes, and infrastructure capacity risks that could adversely affect its operations.

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The clear emerging threat for Epsilon Energy is the accelerating global energy transition and decarbonization efforts. This fundamental shift towards renewable energy sources, driven by technological advancements, environmental regulations, and investor pressure, poses a long-term risk to the demand for and economic viability of fossil fuels like natural gas and oil. This could lead to reduced demand for Epsilon's core products, increased regulatory burdens, difficulties in securing capital for new projects, and the potential for stranded assets as the world moves towards a lower-carbon economy.

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Epsilon Energy (EPSN) anticipates several key drivers for its future revenue growth over the next two to three years, primarily stemming from increased production in its oil-weighted assets, a rebound in natural gas markets, enhanced midstream operations, and strategic expansions through acquisitions and new project developments.

1. Growth in Permian Basin Liquids Production and Development: Epsilon Energy expects its Permian assets to be a significant contributor to revenue, with the basin projected to account for over 50% of upstream cash flow in 2024. The company plans to bring multiple new wells online in the Permian throughout 2024 and 2025, including two additional gross wells in the Pradera Fuego project by summer 2024, and potentially another in the latter half of the year. This focus on oil-weighted growth is expected to result in a more than 120% increase in liquids production year-over-year from 2023 to 2024. By 2024, the Permian contributed over 60% to Epsilon's cash flows.
2. Anticipated Recovery in Natural Gas Prices and Increased Marcellus Production: Following a challenging period for natural gas prices in 2023 and 2024, Epsilon Energy is optimistic about a recovery in natural gas markets and a subsequent increase in production from its Marcellus assets. The company strategically delayed bringing seven recently completed Marcellus wells online due to lower gas prices, but expects to initiate production as prices improve, which could increase basin net production by over 60%. By the first quarter of 2025, Marcellus production had already risen by 75% from the 2024 average, leading to higher realized prices and increased revenues. Epsilon projects that upstream and midstream cash flows from the Marcellus will substantially increase year-over-year in 2025.
3. Increased Midstream Cash Flows from the Auburn Gas Gathering System (AGGS): Epsilon Energy's 35% ownership in the Auburn Gas Gathering System is a source of fee-based cash flows. New gathering agreements, effective January 1, 2024, have established fixed gathering, compression, and crossflow rates. Gathering and crossflow rates increased by 17% year-over-year, with annual escalations tied to the CPI-U starting in 2025. These favorable contractual terms are expected to boost midstream cash flows, which saw a 140% sequential increase in Q1 2025 due to higher throughput volumes.
4. Strategic Acquisitions and Expansion into New Project Areas: Epsilon Energy has pursued strategic growth through acquisitions and the development of new project areas. The company completed the acquisition of Peak Exploration and Production LLC and Peak BLM Lease LLC in November 2025, representing a strategic expansion with plans to invest approximately $20 million in these assets located in the Powder River and Permian Basins. This acquisition is expected to enhance earnings visibility and mitigate risk. Additionally, in October 2024, Epsilon established a new project area in Alberta, Canada, through a joint venture, with commitments for five gross wells before the end of the first quarter of 2026, providing multi-year economic inventory.

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Share Repurchases

• A new one-year share repurchase program was authorized on February 19, 2026, allowing for the repurchase of up to 3,014,986 common shares for a maximum aggregate purchase price of $15.0 million. This program replaced a prior authorization that expired on February 11, 2026.
• Epsilon Energy's 2025 buyback program authorized the repurchase of up to 2,200,876 shares for $13.0 million.
• In 2024, the company repurchased 373,700 shares at an average price of $4.88 per share, totaling $1.8 million.

Share Issuance

• In August 2025, Epsilon Energy announced an agreement to acquire Peak Exploration and Production LLC and Peak BLM Lease LLC, which included the issuance of 6 million common shares at closing and potential additional contingent share issuances of up to 2.5 million shares.
• The acquisition of Peak Companies was completed on November 14, 2025, with 5,681,489 common shares issued to the sellers at closing.

Outbound Investments

• In August 2025, Epsilon Energy entered into definitive agreements to acquire Peak Exploration and Production LLC and Peak BLM Lease LLC in a transaction valued at approximately $86 million, comprising stock issuance and debt assumption.
• The acquisition of Peak Exploration and Production LLC and Peak BLM Lease LLC was successfully completed on November 14, 2025, adding 40,500 net acres in Wyoming's Powder River Basin.

Capital Expenditures

• Capital expenditures for the year ended December 31, 2024, were $34.9 million, primarily focused on Texas (approximately 70% for acquisitions and well development) and Pennsylvania (15% for completion of 10 gross wells).
• For 2025, management projected capital expenditures between $9 million and $12 million, targeting growth in Texas and Alberta. Q2 2025 capital expenditures were $4 million, related to drilling a well in Texas and completing a well in Alberta.
• Preliminary capital expenditure plans for 2026 include $20 million for Peak assets, $6 million for Permian, and up to $13 million for Marcellus, with a focus on integration post-acquisition and execution.