The core operational story is strong — oil production tripled, revenue surged, and debt is being paid down — but the $7.9M unrealized hedge loss masks underlying profitability. Watch for Q2 2026 results to see if new Barnett and Niobrara wells come online as scheduled, which would further boost oil-weighted production and cash flow. The $6.7M in asset sales (ORRIs + office building) provide near-term liquidity but are non-recurring.
Price Chart
Executive Summary
Epsilon Energy reported Q1 2026 results with total revenue of $25.6M (up 58% YoY) driven by a 199% surge in oil production and strong gas pricing, but GAAP net income fell 82% YoY to $0.7M due to a $7.9M unrealized hedge loss from rising crude prices. Adjusted net income per share was $0.29, and the company is executing a development program expected to bring oil-weighted production online through 2026, while reducing debt by $5M to $45.5M.
Key Financial Metrics
Key Facts
- Q1 2026 total revenue $25.6M, up 73% QoQ and 58% YoY
- Oil production surged 199% YoY to 136 MBbl; daily oil output 1,515 Bbl/d
- GAAP net income $0.7M ($0.02/share) vs $4.0M ($0.18/share) YoY, hit by $7.9M unrealized hedge loss
- Adjusted net income $8.7M ($0.29/share) excluding hedge loss, up 116% from $4.0M YoY
- Adjusted EBITDA $13.4M, up 26% YoY
- Credit facility reduced by $5M to $45.5M; additional $5M repayment in April
- Closed $3.9M sale of Marcellus ORRIs; pending $3M office building sale expected in June
- Development program: 3-mile Barnett well completion underway, 2 Niobrara DUCs scheduled for Q3, 3 Parkman wells for Q4
- Approximately 60% of online oil production hedged in mid-$60s WTI for remainder of 2026
Financial Impact
Revenue up 58% YoY to $25.6M; GAAP net income down 82% to $0.7M; adjusted net income up 116% to $8.7M; debt reduced $5M to $45.5M
Risk Factors
- Unrealized hedge losses could reverse if oil prices decline, but 60% of oil production hedged limits upside
- Development execution risk: new wells may not hit production timelines or expected volumes
- Higher unit operating costs from PRB assets may persist until new volumes dilute fixed costs
- Natural gas price volatility could impact Marcellus cash flows
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3294515 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 21, 2026 4w ago | Insider Buy | $6.06 $6.10 | ▲ +0.66% | ▲ +1.22% | $6.36 (+4.87%) |
Sep 14, 2026 5w ago | 144 | $6.16 $6.00 | ▼ −2.60% | ▼ −5.58% | $6.36 (+3.17%) |
Sep 4, 2026 7w ago | Press Release | $6.18 $6.06 | ▼ −1.94% | ▼ −2.54% | $6.36 (+2.83%) |
Aug 18, 2026 9w ago | 8-K | $5.68 $5.90 | ▲ +3.87% | ▲ +5.62% | $6.36 (+11.88%) |
Aug 13, 2026 10w ago | 8-K | $5.32 $6.34 | ▲ +19.17% | ▲ +20.92% | $6.36 (+19.45%) |
Aug 12, 2026 10w ago | Press Release | $5.32 $6.34 | ▲ +19.17% | ▲ +20.92% | $6.36 (+19.45%) |
Aug 12, 2026 10w ago | Press Release | $5.32 $6.34 | ▲ +19.17% | ▲ +20.92% | $6.36 (+19.45%) |
Jun 18, 2026 18w ago | 424B5 | $5.21 $5.52 | ▼ −5.95% | ▼ −6.10% | $6.36 (−21.98%) |
Jun 1, 2026 20w ago | 8-K | $5.81 $5.45 | ▼ −6.20% | ▼ −4.63% | $6.36 (+9.38%) |
May 29, 2026 21w ago | 144 | $5.83 $5.41 | ▼ −7.20% | ▼ −5.91% | $6.36 (+9.01%) |
US Market Status
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