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Epsilon Energy misses Q2 revenue view; to buy Peak entitities

ReutersAug 13, 2025 8:11 PM


Overview

  • Epsilon to acquire Peak entities, issuing 6 mln shares, assuming $49 mln debt

  • Q2 revenue of $11.6 mln missed analyst expectations, adjusted EBITDA beat, per LSEG data

  • Acquisition expected to be accretive to 2025/2026 Adjusted EBITDA and CFPS


Outlook

  • Company expects acquisition to close in Q4 2025

  • Epsilon sees acquisition accretive to 2025 and 2026 EBITDA

  • Epsilon plans to leverage Powder River Basin assets for growth


Result Drivers

  • PRODUCTION DECLINE - Q2 2025 total production decreased by 1% QoQ due to a 3% decline in oil production and a 50% drop in NGL production

  • IMPAIRMENT CHARGE - Epsilon recorded a $2.7 mln impairment in Q2 due to cost overruns and lower-than-expected performance of recently drilled wells in Alberta


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Miss

$11.60 mln

$11.80 mln (1 Analyst)

Q2 EPS

$0.07

Q2 Adjusted EBITDA

Beat

$7.40 bln

$6.64 mln (1 Analyst)

Q2 Basic EPS

$0.07

Q2 Capex

$4.03 bln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Epsilon Energy Ltd is $8.40, about 24.3% above its August 12 closing price of $6.36

Press Release: ID:nGNX89ypYD

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