Epsilon Energy Ltd. (EPSN) 10-Year Financial Performance & Capital Metrics

EPSN • • Industrial / General

EnergyOil & Gas E&PUnconventional Shale E&PAppalachian Basin Gas Focused

AboutEpsilon Energy Ltd., a natural gas and oil company, engages in the acquisition, development, gathering, and production of oil and gas reserves in the United States. It operates through Upstream and Gathering System segments. The Company has natural gas production in the Marcellus in Pennsylvania; and oil, natural gas liquids (NGL), and natural gas production in the Anadarko Basin in Oklahoma. As of December 31, 2021, it had total estimated net proved reserves of 110,969 million cubic feet of natural gas reserves, 819,726 barrels of NGL, and 305,052 barrels of oil and other liquids. Epsilon Energy Ltd. was incorporated in 2005 and is based in Houston, Texas.Show more

Revenue $32M +2.6%
EBITDA $14M +3.9%
Net Income $2M -72.2%
EPS (Diluted) 0.09 -71.6%
Gross Margin 37.46% -18.8%
EBITDA Margin 43.17% +1.2%
Operating Margin 10.86% -38.4%
Net Margin 6.12% -72.9%
ROE 1.95% -71.2%
ROIC 2.88% -48.0%
Debt/Equity 0.00 -12.0%
Interest Coverage 73.80 +9.5%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓High quality earnings: Operating CF exceeds net income
✓Good 3Y average ROE of 15.8%
✓Healthy dividend yield of 5.6%
✓Share count reduced 2.6% through buybacks
✓Healthy 5Y average net margin of 22.1%

✗Weaknesses

✗Profits declining 26.0% over 5 years
✗Negative free cash flow
✗Weak momentum: RS Rating 13 (bottom 13%)
✗Dividend payout exceeds 100% of earnings
✗Trading more than 30% below 52-week high
✗Low asset turnover indicates capital-intensive operations

Price & Volume

Loading chart...

Growth Metrics

Revenue CAGR

10Y-5.05%

5Y3.38%

3Y-9.41%

TTM46.76%

Profit (Net Income) CAGR

10Y-11.6%

5Y-26.02%

3Y-45.06%

TTM11.25%

EPS CAGR

10Y-9.92%

5Y-22.77%

3Y-43.6%

TTM9.67%

ROCE

10Y Avg7.68%

5Y Avg15%

3Y Avg17.48%

Latest2.98%

Peer Comparison

Appalachian Basin Gas Focused

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ARAntero Resources Corporation	9.8B	31.78	176.56	-3.75%	11.13%	7.29%	7.62%	0.56
EQTEQT Corporation	31.15B	49.92	121.76	3%	20.69%	6.65%	1.84%	0.39
EPSNEpsilon Energy Ltd.	134.52M	4.50	51.19	2.58%	12.86%	5.87%		0.00
RRCRange Resources Corporation	7.96B	33.60	30.83	-7.65%	20%	13.65%	3.97%	0.46
INRInfinity Natural Resources, Inc.	216M	13.82	3.72	60.16%	-0.58%	-0.2%		0.51
BKVBKV Corporation	2.47B	25.50	-12.62	-18.23%	5.54%	2.48%	0.71%	0.11
EXEExpand Energy Corporation	23.7B	99.52	-21.87	-45.71%	7.99%	4.78%	0.03%	0.33
CNXCNX Resources Corporation	5.18B	35.90	-59.83	-7.99%	14.17%	7.1%	5.32%	0.56

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	23.83M	25.4M	26.94M	29.68M	26.69M	24.43M	42.4M	69.96M	30.73M	31.52M
Revenue Growth %	-0.55%	0.07%	0.06%	0.1%	-0.1%	-0.08%	0.74%	0.65%	-0.56%	0.03%
Cost of Goods Sold+	23.18M	20.92M	16.21M	15.13M	15.3M	18.04M	15.25M	15.85M	16.55M	19.72M
COGS % of Revenue	0.97%	0.82%	0.6%	0.51%	0.57%	0.74%	0.36%	0.23%	0.54%	0.63%
Gross Profit+	654.49K	4.47M	10.73M	14.56M	11.39M	6.39M	27.15M	54.11M	14.18M	11.81M
Gross Margin %	0.03%	0.18%	0.4%	0.49%	0.43%	0.26%	0.64%	0.77%	0.46%	0.37%
Gross Profit Growth %	-0.96%	5.83%	1.4%	0.36%	-0.22%	-0.44%	3.25%	0.99%	-0.74%	-0.17%
Operating Expenses+	1.98M	2.13M	4.5M	4.94M	3.21M	7.36M	6.54M	7.13M	8.76M	8.38M
OpEx % of Revenue	0.08%	0.08%	0.17%	0.17%	0.12%	0.3%	0.15%	0.1%	0.29%	0.27%
Selling, General & Admin	1.98M	2.13M	4.5M	4.94M	4.5M	5.59M	6.83M	7.35M	7.31M	6.93M
SG&A % of Revenue	0.08%	0.08%	0.17%	0.17%	0.17%	0.23%	0.16%	0.11%	0.24%	0.22%
Research & Development	0	0	0	0	0	0	0	0	0	0
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	0	0	27.31K	0	-1.29M	1.77M	-291.55K	-212.1K	1.45M	1.45M
Operating Income+	-35.83M	2.34M	6.22M	9.62M	8.19M	-977.7K	20.61M	46.97M	5.42M	3.42M
Operating Margin %	-1.5%	0.09%	0.23%	0.32%	0.31%	-0.04%	0.49%	0.67%	0.18%	0.11%
Operating Income Growth %	-3.03%	1.07%	1.66%	0.55%	-0.15%	-1.12%	22.08%	1.28%	-0.88%	-0.37%
EBITDA+	-22.61M	14.21M	17.3M	16.8M	15.57M	8.58M	27.24M	53.41M	13.1M	13.61M
EBITDA Margin %	-0.95%	0.56%	0.64%	0.57%	0.58%	0.35%	0.64%	0.76%	0.43%	0.43%
EBITDA Growth %	-1.55%	1.63%	0.22%	-0.03%	-0.07%	-0.45%	2.17%	0.96%	-0.75%	0.04%
D&A (Non-Cash Add-back)	13.23M	11.87M	11.07M	7.18M	7.39M	9.56M	6.63M	6.44M	7.69M	10.19M
EBIT	-35.86M	1.83M	6.27M	7.55M	12.59M	1.57M	16.17M	47.56M	10.23M	3.6M
Net Interest Income+	-3.92M	-3.84M	-929.18K	-128.53K	43.52K	-70.97K	-62.52K	402.1K	1.59M	446.88K
Interest Income	14.3K	75.47K	26.52K	12.09K	158.88K	43.54K	38.87K	452.88K	1.67M	493.28K
Interest Expense	3.93M	3.91M	955.7K	141K	115.36K	114.52K	101.38K	50.78K	80.38K	46.4K
Other Income/Expense	-3.96M	-4.42M	1.72M	-2.03M	4.29M	2.43M	-4.54M	538.7K	4.73M	132.46K
Pretax Income+	-39.79M	-2.08M	7.73M	7.4M	12.48M	1.45M	16.07M	47.51M	10.15M	3.56M
Pretax Margin %	-1.67%	-0.08%	0.29%	0.25%	0.47%	0.06%	0.38%	0.68%	0.33%	0.11%
Income Tax+	-14.27M	874.91K	-4.4M	742.42K	3.78M	575.42K	4.44M	12.16M	3.2M	1.63M
Effective Tax Rate %	0.64%	1.42%	1.57%	0.9%	0.7%	0.6%	0.72%	0.74%	0.68%	0.54%
Net Income+	-25.52M	-2.95M	12.13M	6.66M	8.7M	875.17K	11.63M	35.35M	6.95M	1.93M
Net Margin %	-1.07%	-0.12%	0.45%	0.22%	0.33%	0.04%	0.27%	0.51%	0.23%	0.06%
Net Income Growth %	-4.86%	0.88%	5.11%	-0.45%	0.31%	-0.9%	12.29%	2.04%	-0.8%	-0.72%
Net Income (Continuing)	-25.52M	-3.09M	7.44M	6.66M	8.7M	875.17K	11.63M	35.35M	6.95M	1.93M
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0
EPS (Diluted)+	-1.05	-0.13	0.28	0.24	0.32	0.03	0.49	1.51	0.31	0.09
EPS Growth %	-5.2%	0.88%	3.15%	-0.14%	0.33%	-0.89%	13.08%	2.08%	-0.79%	-0.72%
EPS (Basic)	-1.08	-0.13	0.28	0.24	0.32	0.03	0.49	1.52	0.31	0.09
Diluted Shares Outstanding	24.2M	22.94M	26.13M	27.47M	27.13M	25.12M	23.86M	23.41M	22.51M	21.93M
Basic Shares Outstanding	23.52M	22.94M	26.12M	27.46M	27.13M	25.12M	23.71M	23.32M	22.5M	21.93M
Dividend Payout Ratio	-	-	-	-	-	-	-	0.17%	0.81%	2.85%

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	20.31M	36.54M	14.43M	19.89M	22.42M	17.78M	31.66M	55.46M	41.13M	14.13M
Cash & Short-Term Investments	16.95M	31.49M	10M	14.4M	14.05M	13.27M	26.5M	45.24M	32.18M	6.52M
Cash Only	16.95M	31.49M	10M	14.4M	14.05M	13.27M	26.5M	45.24M	13.4M	6.52M
Short-Term Investments	0	0	0	0	0	0	0	0	18.78M	0
Accounts Receivable	3.21M	4.39M	3.33M	5.04M	4.3M	3.92M	4.6M	7.2M	6.02M	5.84M
Days Sales Outstanding	49.23	63.06	45.18	62	58.76	58.54	39.57	37.57	71.45	67.66
Inventory	0	530.54K	816.41K	205.71K	0	0	0	0	0	0
Days Inventory Outstanding	-	9.25	18.38	4.96	-	-	-	-	-	-
Other Current Assets	138.99K	139.99K	535.98K	449.94K	2.43M	500.58K	569.87K	1.89M	1.98M	792.04K
Total Non-Current Assets+	102.16M	90.72M	101.91M	68M	75.24M	68.9M	67.8M	68.4M	82.91M	106.32M
Property, Plant & Equipment	102.16M	90.72M	101.91M	67.45M	74.68M	68.33M	67.23M	67.83M	80.63M	104.87M
Fixed Asset Turnover	0.23x	0.28x	0.26x	0.44x	0.36x	0.36x	0.63x	1.03x	0.38x	0.30x
Goodwill	0	0	0	0	0	0	0	0	0	0
Intangible Assets	0	0	0	0	0	0	0	0	0	0
Long-Term Investments	0	0	556.86K	558.26K	0	0	0	0	0	470K
Other Non-Current Assets	0	0	-556.86K	-9.99B	562.42K	566.24K	568.12K	570.36K	2.28M	982.72K
Total Assets+	122.47M	127.26M	116.35M	87.9M	97.67M	86.68M	99.46M	123.86M	124.04M	120.45M
Asset Turnover	0.19x	0.20x	0.23x	0.34x	0.27x	0.28x	0.43x	0.56x	0.25x	0.26x
Asset Growth %	-0.26%	0.04%	-0.09%	-0.24%	0.11%	-0.11%	0.15%	0.25%	0%	-0.03%
Total Current Liabilities+	11.6M	46.19M	10.98M	6.34M	7.5M	4.51M	7.55M	6.22M	7.9M	6.98M
Accounts Payable	4.6M	5M	2.01M	1.76M	2.83M	1.59M	1.19M	1.7M	3.15M	2.33M
Days Payables Outstanding	72.38	87.28	45.21	42.53	67.49	32.22	28.48	39.03	69.46	43.22
Short-Term Debt	7M	40.85M	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	0	0	0	0	0	0	0	0	0	0
Other Current Liabilities	0	-1.91M	1.02M	819.46K	1.5M	106.73K	668.38K	598.35K	755.07K	-1.34M
Current Ratio	1.75x	0.79x	1.31x	3.14x	2.99x	3.94x	4.20x	8.92x	5.21x	2.02x
Quick Ratio	1.75x	0.78x	1.24x	3.11x	2.99x	3.94x	4.20x	8.92x	5.21x	2.02x
Cash Conversion Cycle	-	-14.97	18.35	24.43	-	-	-	-	-	-
Total Non-Current Liabilities+	43.34M	17.52M	21.66M	11.61M	13.81M	13.15M	12.65M	13.4M	15.53M	16.75M
Long-Term Debt	26.79M	0	2.9M	0	0	0	0	0	0	0
Capital Lease Obligations	0	0	0	0	0	0	0	0	476.91K	355.78K
Deferred Tax Liabilities	14.23M	15.08M	18.85M	9.99M	12.4M	10.1M	9.91M	10.62M	11.55M	12.74M
Other Non-Current Liabilities	2.33M	2.44M	13.82M	1.63M	1.41M	3.04M	2.75M	2.78M	3.5M	3.65M
Total Liabilities	54.94M	63.71M	32.63M	17.95M	21.31M	17.66M	20.2M	19.62M	23.43M	23.73M
Total Debt+	33.79M	40.85M	2.9M	0	0	0	0	35.3K	563.38K	476.91K
Net Debt	16.84M	9.36M	-7.1M	-14.4M	-14.05M	-13.27M	-26.5M	-45.2M	-12.84M	-6.04M
Debt / Equity	0.50x	0.64x	0.03x	-	-	-	-	0.00x	0.01x	0.00x
Debt / EBITDA	-	2.87x	0.17x	-	-	-	-	0.00x	0.04x	0.04x
Net Debt / EBITDA	-	0.66x	-0.41x	-0.86x	-0.90x	-1.55x	-0.97x	-0.85x	-0.98x	-0.44x
Interest Coverage	-9.11x	0.60x	6.51x	68.23x	70.96x	-8.54x	203.31x	925.00x	67.41x	73.80x
Total Equity+	67.53M	63.55M	83.71M	69.94M	76.36M	69.02M	79.26M	104.25M	100.61M	96.73M
Equity Growth %	-0.26%	-0.06%	0.32%	-0.16%	0.09%	-0.1%	0.15%	0.32%	-0.03%	-0.04%
Book Value per Share	2.79	2.77	3.20	2.55	2.81	2.75	3.32	4.45	4.47	4.41
Total Shareholders' Equity	67.53M	63.55M	83.71M	69.94M	76.36M	69.02M	79.26M	104.25M	100.61M	96.73M
Common Stock	127.37M	126.32M	144.3M	143.61M	140.81M	131.73M	131.82M	123.9M	118.27M	116.08M
Retained Earnings	-79.88M	-82.56M	-81.24M	-89.98M	0	0	-68.78M	-39.29M	-37.95M	-41.51M
Treasury Stock	0	0	0	-94.42K	0	0	-2.42M	0	-360.33K	0
Accumulated OCI	9.22M	8.74M	9.31M	9.8M	9.81M	9.82M	9.82M	9.77M	9.77M	10.03M
Minority Interest	0	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	10.53M	11.18M	17.55M	10.12M	12.99M	14.82M	20.01M	38.01M	18.19M	16.83M
Operating CF Margin %	0.44%	0.44%	0.65%	0.34%	0.49%	0.61%	0.47%	0.54%	0.59%	0.53%
Operating CF Growth %	-0.66%	0.06%	0.57%	-0.42%	0.28%	0.14%	0.35%	0.9%	-0.52%	-0.07%
Net Income	-25.52M	-2.95M	12.13M	6.66M	8.7M	875.17K	11.63M	35.35M	6.95M	1.93M
Depreciation & Amortization	48.26M	12.19M	7.85M	7.18B	1.77M	9.56M	10.78M	6.44M	7.69M	10.19M
Stock-Based Compensation	120.43K	221.3K	313.32K	330.23K	510.46K	849.63K	956.08K	1.02M	1.02M	1.24M
Deferred Taxes	-14.27M	874.91K	-4.4M	-572.4K	2.41M	-2.3M	-197.41K	711.95K	936.55K	1.18M
Other Non-Cash Items	1.18M	1.15M	267.77K	-7.17B	1.95M	3.76M	-4.24M	-1.8M	225.38K	2.65M
Working Capital Changes	760.98K	-297.27K	1.39M	-4.04M	-2.35M	2.07M	1.09M	-3.72M	1.38M	-362.94K
Change in Receivables	0	-1.17M	1.05M	-1.71M	745.22K	379.63K	-679.64K	-2.6M	1.19M	171.73K
Change in Inventory	0	0	0	544.57M	1.47M	0	0	0	0	0
Change in Payables	0	0	1.5M	-545.29M	-1.47M	207.61K	646.41K	1.18M	-122.2K	-493.18K
Cash from Investing+	-5.14M	-1.31M	-19.36M	-2.04M	-10.54M	-6.52M	-4.44M	-7.87M	-38.38M	-16.66M
Capital Expenditures	-4.07M	-314.79K	-19.27M	-2.2M	-11.92M	-6.53M	-4.89M	-8.07M	-18.65M	-36.56M
CapEx % of Revenue	0.17%	0.01%	0.72%	0.07%	0.45%	0.27%	0.12%	0.12%	0.61%	1.16%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	-1.07M	-999.7K	-82.28K	165.26K	-1.12K	745	379	0	-1.8M	831.09K
Cash from Financing+	-2.87M	4.32M	-21.12M	-3.56M	-2.8M	-9.08M	-2.34M	-11.35M	-11.73M	-7.32M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	-5.86M	-5.6M	-5.49M
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	123.19K	0	50.24K	0	0	0	85.34K	747.11K	-77.13K	0
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	6.45M	10.86M	-1.72M	7.92M	1.07M	8.29M	15.12M	29.94M	-457.78K	-19.73M
FCF Margin %	0.27%	0.43%	-0.06%	0.27%	0.04%	0.34%	0.36%	0.43%	-0.01%	-0.63%
FCF Growth %	-0.72%	0.68%	-1.16%	5.6%	-0.86%	6.75%	0.82%	0.98%	-1.02%	-42.1%
FCF per Share	0.27	0.47	-0.07	0.29	0.04	0.33	0.63	1.28	-0.02	-0.90
FCF Conversion (FCF/Net Income)	-0.41x	-3.78x	1.45x	1.52x	1.49x	16.93x	1.72x	1.07x	2.62x	8.73x
Interest Paid	0	0	0	136.83K	0	114.52K	95.94K	68.33K	97.59K	16.83K
Taxes Paid	0	0	0	4.13M	0	1.32M	3.44M	13.67M	1.44M	414.25K

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	-32.06%	-4.51%	16.48%	8.67%	11.89%	1.2%	15.68%	38.53%	6.78%	1.95%
Return on Invested Capital (ROIC)	-27.08%	2.23%	6.24%	10.92%	10.42%	-1.24%	28.49%	63.02%	5.54%	2.88%
Gross Margin	2.75%	17.61%	39.81%	49.04%	42.69%	26.14%	64.03%	77.34%	46.14%	37.46%
Net Margin	-107.11%	-11.63%	45.05%	22.44%	32.59%	3.58%	27.42%	50.53%	22.6%	6.12%
Debt / Equity	0.50x	0.64x	0.03x	-	-	-	-	0.00x	0.01x	0.00x
Interest Coverage	-9.11x	0.60x	6.51x	68.23x	70.96x	-8.54x	203.31x	925.00x	67.41x	73.80x
FCF Conversion	-0.41x	-3.78x	1.45x	1.52x	1.49x	16.93x	1.72x	1.07x	2.62x	8.73x
Revenue Growth	-54.98%	6.57%	6.08%	10.19%	-10.09%	-8.49%	73.61%	64.99%	-56.08%	2.58%

Revenue by Segment

	2019	2020	2021	2022	2023	2024
Oil and Condensate	-	-	-	-	-	13.73M
Oil and Condensate Growth	-	-	-	-	-	-
Natural Gas	-	-	-	-	-	10.79M
Natural Gas Growth	-	-	-	-	-	-
Gas Gathering And Compression	9.32M	8.88M	-	-	-	5.52M
Gas Gathering And Compression Growth	-	-4.73%	-	-	-	-
Natural gas	-	-	31.71M	56.95M	14.86M	-
Natural gas Growth	-	-	-	79.60%	-73.90%	-
Oil and condensate	-	-	1.78M	3.2M	5.09M	-
Oil and condensate Growth	-	-	-	79.87%	59.31%	-
Natural gas liquids	-	-	1.05M	1.73M	984.42K	-
Natural gas liquids Growth	-	-	-	64.51%	-43.20%	-
Gas gathering and compression revenue	-	-	-	8.09M	-	-
Gas gathering and compression revenue Growth	-	-	-	-	-	-
Gathering and compression fees	-	-	7.87M	-	-	-
Gathering and compression fees Growth	-	-	-	-	-	-
Natural Gas Reserves	16.95M	15.21M	-	-	-	-
Natural Gas Reserves Growth	-	-10.26%	-	-	-	-
Oil And Condensate	314.27K	250.14K	-	-	-	-
Oil And Condensate Growth	-	-20.41%	-	-	-	-
Natural Gas Liquids Reserves	110.39K	88.19K	-	-	-	-
Natural Gas Liquids Reserves Growth	-	-20.12%	-	-	-	-

Frequently Asked Questions

Valuation & Price

Epsilon Energy Ltd. (EPSN) has a price-to-earnings (P/E) ratio of 51.2x. This suggests investors expect higher future growth.

Growth & Financials

Epsilon Energy Ltd. (EPSN) reported $45.7M in revenue for fiscal year 2024. This represents a 22% decrease from $58.8M in 2011.

Epsilon Energy Ltd. (EPSN) grew revenue by 2.6% over the past year. Growth has been modest.

Yes, Epsilon Energy Ltd. (EPSN) is profitable, generating $5.9M in net income for fiscal year 2024 (6.1% net margin).

Dividend & Returns

Yes, Epsilon Energy Ltd. (EPSN) pays a dividend with a yield of 5.56%. This makes it attractive for income-focused investors.

Epsilon Energy Ltd. (EPSN) has a return on equity (ROE) of 2.0%. This is below average, suggesting room for improvement.

Epsilon Energy Ltd. (EPSN) generated $10.4M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

...