Epsilon Energy Ltd. announced strong first quarter 2025 financial and operating results, with total revenue surging by 102% to $16.16 million compared to $7.99 million in the same period of 2024. This significant increase was primarily fueled by a substantial recovery in the Pennsylvania Marcellus assets, where upstream cash flows rose over 200% sequentially. Net revenue interest natural gas production in the Marcellus increased by 58% to 2.6 Bcf, while realized natural gas prices climbed 70% to $3.92 per Mcf.
The Gas Gathering segment also benefited from increased throughput, with midstream cash flows rising 140% sequentially and operating income increasing by 8.3% to $1.57 million. The Permian Basin continued its meaningful contribution, with upstream oil and condensate revenue increasing by 20% and total production rising 18% to 61.9 Mboe. The company's net income for the quarter was $4.02 million, a substantial increase from $1.51 million in Q1 2024.
Adjusted EBITDA, a key measure of cash-generating ability, increased by 130% to $10.61 million from $4.60 million in Q1 2024. Epsilon maintains a strong balance sheet with over $50 million in total liquidity, including an undrawn $45 million credit facility. The company plans $9 million to $12 million in capital expenditures for the remainder of 2025, focusing on drilling 0.5 net wells in both Texas and Alberta, with Marcellus development expected to resume in late 2026 or early 2027.
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