Epsilon Energy misses Q2 revenue view; to buy Peak entitities

Epsilon Energy

13/08/2025 21:11

Overview

Epsilon to acquire Peak entities, issuing 6 mln shares, assuming $49 mln debt

Q2 revenue of $11.6 mln missed analyst expectations, adjusted EBITDA beat, per LSEG data

Acquisition expected to be accretive to 2025/2026 Adjusted EBITDA and CFPS

Outlook

Company expects acquisition to close in Q4 2025

Epsilon sees acquisition accretive to 2025 and 2026 EBITDA

Epsilon plans to leverage Powder River Basin assets for growth

Result Drivers

PRODUCTION DECLINE - Q2 2025 total production decreased by 1% QoQ due to a 3% decline in oil production and a 50% drop in NGL production

IMPAIRMENT CHARGE - Epsilon recorded a $2.7 mln impairment in Q2 due to cost overruns and lower-than-expected performance of recently drilled wells in Alberta

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$11.60 mln
$11.80 mln (1 Analyst)
Q2 EPS
$0.07
Q2 Adjusted EBITDA
Beat
$7.40 bln
$6.64 mln (1 Analyst)
Q2 Basic EPS
$0.07
Q2 Capex
$4.03 bln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

Wall Street's median 12-month price target for Epsilon Energy Ltd is $8.40, about 24.3% above its August 12 closing price of $6.36

Press Release: ID:nGNX89ypYD

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)