Epsilon Energy Ltd. Announces the Following Headlines

Rhea-AI Summary

Epsilon Energy Ltd. (NASDAQ: EPSN) has declared a dividend of $0.0625 per share, with an annualized rate of $0.25. The dividend will be payable on June 30, 2022, to stockholders of record by June 15, 2022. During the quarter, the company repurchased 259,300 shares at a cost of $1.8 million. Recently completed wells in Oklahoma have exceeded performance expectations, achieving payout in under six months. Epsilon anticipates significant cash generation and holds a current cash balance of approximately $31 million with no outstanding debt.

Positive

• Declared a dividend of $0.0625 per share, annualized $0.25.
• Repurchased 259,300 shares for $1.8 million.
• Oklahoma production project exceeded performance expectations, achieving payout in under six months.
• Current cash balance approximately $31 million, with no outstanding debt.

Negative

• None.

• Board declares dividend of $0.0625 per common share
  
• Repurchased 259,300 shares during the quarter
• Oklahoma production project exceeding expectations
• Outlook for FCF generation remains favorable

HOUSTON, May 31, 2022 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today announced that its Board of Directors has declared a dividend of $0.0625 per share of common stock (annualized $0.25/sh) to the stock holders of record at the close of business on June 15^th 2022, payable on June 30^th 2022. All dividends paid by the Company are “eligible dividends” as defined in subsection 89(1) of the Income Tax Act (Canada), unless indicated otherwise. In addition the Company repurchased 259,300 shares for $1.8 MM (approximately $7/share) during the quarter (through May 27, 2022). The company is authorized to purchase an additional 900,000 shares under its current program and continues to regard current trading levels as attractive from a valuation perspective. 

Michael Raleigh, CEO, commented, “After 30 days of production on each of the two (0.55 Net to EPSN) recently completed wells in our Oklahoma project we are excited to report that the average performance of the wells exceeded our expected type curve, and, at current commodity prices, will achieve payout in less than six months. To date the Company has participated in four wells (1.15 Net) in the region and the average performance has exceeded the expected type curve performance. The team is currently evaluating other locations within our existing inventory to drill and complete this year.

In the Marcellus, we expect the operator to complete the previously drilled well (0.18 Net to EPSN) in the third quarter of 2022.

Based on current strip prices, the company anticipates building significant incremental cash for the balance of the year. The current cash balance is approximately $31 million and the company has no outstanding debt.”

About Epsilon

Epsilon Energy Ltd. is a North American on-shore focused independent exploration and production company engaged in the acquisition, development, gathering and production of oil and gas reserves. Our primary area of operation is the Marcellus basin in northeast Pennsylvania. Our assets are concentrated in areas with known hydrocarbon resources, which are conducive to multi-well, repeatable drilling programs. For more information, please visit www.epsilonenergyltd.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.

Contact Information:

281-670-0002

Michael Raleigh
Chief Executive Officer
Michael.Raleigh@EpsilonEnergyLTD.com

FAQ

What is the recent dividend declared by Epsilon Energy?

Epsilon Energy declared a dividend of $0.0625 per common share, annualized to $0.25.

When will Epsilon Energy's dividend be paid?

The dividend will be payable on June 30, 2022, to stockholders of record as of June 15, 2022.

How many shares did Epsilon Energy repurchase recently?

Epsilon Energy repurchased 259,300 shares for approximately $1.8 million.

What are the performance expectations for Epsilon's Oklahoma project?

The Oklahoma project exceeded expectations, with wells achieving payout in less than six months.

What is Epsilon Energy's current cash position?

Epsilon Energy has a current cash balance of approximately $31 million and no outstanding debt.