Lumida
/EPSN
⌘K
Epsilon Energy Ltd

Epsilon Energy Ltd

EPSN
$6.34USD↑+0.48%+0.03 today

MARKET CAP

192.0M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$6 – $6

52W RANGE

$4
$7

AI Summary

Stalk
TrimMedium

EPSN remains in a Stage 4 decline with broken support confirmed by a Support Failure pattern. Medium-term direction is bearish, reinforced by lower highs and rejection at key EMAs. Short-term timing is neutral, lacking clear exhaustion signals. We will defer selling and look to trim into rallies around the prior pivot and 9/21 EMA zone.

  • ↑Peak Companies deal ups oil production 200% and reserves 150%.
  • ↑2026 guidance: ~20% total production growth and 200% oil volume gain.
  • ↓Negative profitability metrics indicate inefficiencies amid rising costs.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Epsilon Energy Ltd. (NASDAQ: EPSN) is an independent energy company engaged in oil and gas exploration and production, primarily focused on high-return assets in the Powder River Basin and Marcellus shale. The company has established a strategic position within the North American energy market, leveraging actively on operational efficiencies and targeting market opportunities for growth, particularly as it enhances its production capabilities through strategic acquisitions and drilling programs.

Bull says

  • ↑Peak Companies deal ups oil production 200% and reserves 150%.
  • ↑2026 guidance: ~20% total production growth and 200% oil volume gain.
  • ↑Maintains dividend and share buyback, signaling confidence in cash flows.
  • ↑Operational upgrades set to save over $100k/month, boosting efficiency.
  • ↑High sensitivity to oil recovery positions EPSN for price rebounds.
  • ↑Peak team adds 15 years of in-basin expertise to operations.

Bear says

  • ↓Negative profitability metrics indicate inefficiencies amid rising costs.
  • ↓High leverage and rate sensitivity risk cash flow under tight rates.
  • ↓CapEx ramp delays returns; over 50% spending won’t yield until Q4.
  • ↓Smaller scale versus peers strains competitive positioning in key basins.
  • ↓Valuation appears pricey relative to earnings yield, limiting upside.
  • ↓Dependence on commodity price recovery exposes EPSN to volatility.

Earnings Call · Q2 2025 · Mgmt. Guidance

Updated 08-16-2026bullish

Transcript signals

Bull points

  • Today, along with our earnings release, we announced the acquisition of the Peak Companies with assets in the Powder River Basin, PRB. The deal adds a new core area to the company at an attractive price. The acquisition includes key members of the Peak Team that bring over 15 years of InBasin operating experience. It adds oil-weighted production and a massive operated inventory of locations across multiple benches.
  • We think this PRB platform provides the opportunity for both organic and inorganic growth.
  • Our near-term activities post-closing will focus on the Parkman Formation, a semi-conventional reservoir with half-cycle economics that rival anything in our existing portfolio at a significantly lower implied acquisition cost per location compared to available acreage in the Marcellus or the Permian.

Bear points

  • The impairment was driven by a combination of drilling and completion cost overruns and early well inflow performance below expectations.
  • Realized pricing was down meaningfully quarter over quarter for gas and oil, so cash flows were down roughly 30% quarter over quarter.
  • Realized pricing was down meaningfully quarter over quarter for gas and oil, so cash flows were down roughly 30% quarter over quarter.
Read full transcript analysis ›