Epsilon Energy Ltd. announced the approval of a new one-year share repurchase program by its Board of Directors, authorizing the repurchase of up to 2,200,876 common shares. This represents 10% of the company's outstanding common shares, for an aggregate purchase price not exceeding US$13.0 million. The program commenced on February 12, 2025, and is scheduled to conclude by February 11, 2026, unless the maximum amount of shares is acquired earlier.
The company stated that the market price of its common shares may not fully reflect their underlying value, and the Board views the repurchase as an appropriate use of funds to create shareholder value. Epsilon intends to finance these repurchases using available cash, without incurring additional debt. This initiative underscores the company's disciplined capital allocation strategy.
In a related development, Epsilon also confirmed the results of a borrowing base redetermination for its senior secured reserve-based revolving credit facility with Frost Bank. Effective February 10, 2025, the borrowing base was redetermined at $45 million. This facility remains undrawn, contributing to Epsilon's robust financial position and providing over $50 million in total liquidity.
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