Epsilon Energy Ltd. · NASDAQ:EPSN
Epsilon Energy — Investor Presentation (March 2024)
9 slides from Epsilon Energy's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
Investor Presentation March 2024
Slide 2: Disclaimers
Disclaimers Certain statements contained in this presentation constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements.
Slide 3: Epsilon Overview
Epsilon Overview Investment Highlights Statistics High Quality Asset Base Q4 2023 Gas Production: 21.7 MMcf/d1 • Core NE PA Marcellus working interest position – majority operated by CHK o Some of the lowest cost natural gas reserves in the L48 Q4 2023 Oil & NGL Production: • Oil weighted growth are
Slide 4: Assets
Assets Overview and Locations 1 Marcellus Basin Upstream (Susquehanna Co, PA) | Auburn • 11,605 gross acres (5,142 net acres) • Operated by Chesapeake Energy • 20.3 MMcf/d NRI production (137 producing wells) in Q4 2023 1 2 • 61.8 Bcf net Proved reserves (12/31/23)1 • Undeveloped inventory of ~400-6
Slide 5: NE PA Marcellus – Upstream Overview
NE PA Marcellus – Upstream Overview Summary Material Interest in Core NE PA Marcellus • 5,142 net acres in Susquehanna County, PA » Majority operated by Chesapeake Energy • 137 gross (25.6 net) working interest producing wells • 19% average WI / 87% average NRI per well • 7 (gross, 0.74 net) wells r
Slide 6: Permian Basin Overview
Permian Basin Overview Summary Permian Basin (CBP) Position1 • Ector Co. TX working interest » 25% working interest in 16,290 gross acres1 » Barnett type curve: EUR 110 BOE/ft (86% Oil); 12 mos: 176,000 BOE » All 5 wells drilled to date on the position are out- performing pre-drill estimates (produc
Slide 7: NE PA Marcellus – Midstream Overview
NE PA Marcellus – Midstream Overview Summary Auburn Compression Facility: Susquehanna Co., PA • 35% interest in the Auburn Gas Gathering System (GGS) • Partners: Williams Companies (operator) & Equinor • 45 miles of gathering pipelines • Compression facility capacity of 220,000 MMcf/d • Discharging
Slide 8: Financial Information
Financial Information Cash Returned to Shareholders Operating Income + DD&A1 2020 – 2023 Go Forward: • Leverage to higher natural gas prices (PA) $35.3MM Returned From 2020-2023 (38% of Operating CF) • Near-term contribution from 7 well development (PA) • Meaningful Permian contribution in 2024 (fir
Slide 9: Non-GAAP Financial Measures
Non-GAAP Financial Measures Epsilon defines Adjusted EBITDA as earnings before (1) net interest expense, (2) taxes, (3) depreciation, depletion, amortization and accretion expense, (4) impairments of natural gas and oil properties, (5) non-cash stock compensation expense, (6) gain or loss on derivat