Lumida
/EPSN
⌘K
Epsilon Energy Ltd

Epsilon Energy Ltd

EPSN
$5.52USD↑+0.36%+0.02 today

MARKET CAP

167.0M

P/E (TTM)

10.6x

FWD P/E

10.6x

DAY RANGE

$5 – $6

52W RANGE

$4
$7

AI Summary

Stalk
TrimMedium

EPSN remains in a Stage 4 decline with broken support confirmed by a Support Failure pattern. Medium-term direction is bearish, reinforced by lower highs and rejection at key EMAs. Short-term timing is neutral, lacking clear exhaustion signals. We will defer selling and look to trim into rallies around the prior pivot and 9/21 EMA zone.

  • ↑Production grew 54% YoY in Q4 2025 after Peak acquisition.
  • ↑Adjusted EBITDA rose 75% YoY in 2025, boosting operational returns.
  • ↓Negative earnings yield signals weak profitability under current operations.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Epsilon Energy Ltd. (NASDAQ: EPSN) is a mid-cap oil and gas exploration and production company primarily focused on developing its assets in the Marcellus Shale, Permian Basin, and the Powder River Basin (PRB). With recent strategic acquisitions, including the Peak Companies, Epsilon is positioned to expand its operational footprint and bolster its production capabilities, emphasizing oil-weighted growth amid favorable commodity pricing environments. The company operates within the energy sector, capitalizing on the resurgence in oil and gas demand while maintaining a disciplined approach to capital allocation.

Bull says

  • ↑Production grew 54% YoY in Q4 2025 after Peak acquisition.
  • ↑Adjusted EBITDA rose 75% YoY in 2025, boosting operational returns.
  • ↑Dividend yield at 4.72% reflects strong shareholder payouts.
  • ↑Debt cut by $10 m to $40.5 m lowers net debt/EBITDA.
  • ↑Allocating $23 m to high-return PRB wells to drive output.
  • ↑High sensitivity to oil prices underpins revenue and margin upside.

Bear says

  • ↓Negative earnings yield signals weak profitability under current operations.
  • ↓Weak profitability factors and margin pressures risk cash generation.
  • ↓High sensitivity to interest rates could strain debt servicing.
  • ↓Scale constraints limit competitiveness amid rapidly evolving markets.
  • ↓Commodity price volatility threatens production cash flows.
  • ↓Elevated leverage and debt commitments increase financial risk.

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-28-2026neutral

Transcript signals

Bull points

  • Both wells are currently on production with sales commencing in April.
  • Marcellus upstream cash flows were up sequentially over 200%, due to a 58% increase in production and a 70% increase in realized pricing.
  • midstream cash flows increased 140% sequentially on higher throughput volumes.

Bear points

  • We don't expect additional investments this year in Pennsylvania.
  • As Jason mentioned, we don't expect incremental development there this year, but we have substantial remaining undeveloped inventory, roughly 500,000 completed lateral length feet gross, which we expect to be developed starting late next year or early in 2027. Incremental activity will warrant sustained oil prices above $65 WTI.
  • As Jason mentioned, we don't expect incremental development there this year, but we have substantial remaining undeveloped inventory, roughly 500,000 completed lateral length feet gross, which we expect to be developed starting late next year or early in 2027. Incremental activity will warrant sustained oil prices above $65 WTI.
Read full transcript analysis ›