Epsilon Energy Ltd. closed its acquisition of Peak Exploration and Production LLC and Peak BLM Lease LLC on November 14, 2025, issuing 5,681,489 common shares to the former owners and reserving the right to issue up to an additional 2,500,000 shares or $6.5 million in cash once regulatory approvals are obtained.
The deal, valued at roughly $86 million, included the issuance of about 6 million Epsilon shares, the assumption of $49 million of Peak’s debt, and a contingent consideration clause that could add up to 2.5 million shares or $6.5 million in cash. To fund the transaction, Epsilon expanded its senior secured reserve‑based revolving credit facility to $80 million, drawing $50.5 million at closing to repay Peak’s existing loan and cover integration costs.
Strategically, the acquisition adds substantial acreage and reserves in the Powder River Basin, a high‑potential region that complements Epsilon’s existing operations in Pennsylvania, Texas, and Alberta. Management projects that the new assets will lift Epsilon’s reserves by more than 150 % and liquids production by over 200 %, thereby broadening the company’s geographic footprint and resource base.
Operationally, 16 former Peak employees were hired, and the board was augmented with Bryan H. Lawrence and Jack Vaughn, both of whom bring extensive experience in energy and investment. Their addition, along with the new workforce, is expected to accelerate development and enhance operational capability across the expanded portfolio.
Financially, the acquisition is projected to be accretive to Adjusted EBITDA and cash‑flow‑per‑share for 2025 and 2026. While the share issuance dilutes existing shareholders, the debt repayment and liquidity boost from the expanded credit facility are expected to strengthen the balance sheet and provide flexibility for future growth.
CEO Jason Stabell described the deal as a “transformational step,” emphasizing the strategic importance of the Powder River Basin assets and the expertise of the new team. He noted that the transaction positions Epsilon to capture high‑potential opportunities while maintaining financial strength.
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