Epsilon Energy Ltd. reported its third quarter 2024 financial and operating results, with capital expenditures totaling $3.9 million for the quarter ended September 30, 2024. These investments were primarily directed towards the completion of one gross (0.25 net) well in Ector County, Texas, and the drilling of two gross (1 net) wells in Alberta, Canada. The company's Permian assets continued to deliver growth in liquids volume, revenue, and cash flow.
In the Marcellus Shale, seven gross wells completed in the first quarter of 2024 were not turned in line during the third quarter. However, three of these wells commenced flowback during the last week of October, contributing approximately 60 MMcf per day gross. Epsilon's operating partner in Pennsylvania maintained production curtailments, resulting in an estimated 3-4 MMcf per day of net revenue interest production being offline during the quarter.
Total revenue for the third quarter of 2024 was US$7.29 million, representing a 16% increase from the third quarter of 2023. Despite the revenue increase, the company's earnings per share lagged expectations. Epsilon anticipates increased production and cash flow from its Pennsylvania assets in the fourth quarter of 2024 and into 2025, supported by improving natural gas market fundamentals.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.