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