Epsilon Energy has reported Q3 2017 financial and operating results.
Highlights for the third quarter and material subsequent events following the end of the quarter through the date of this release include:
- Epsilon is continuing to add key personnel to its leadership team and has announced the hiring of Shannon Lemke as Vice President, Exploration. Shannon has over 17 years of experience in exploration and exploitation of oil and gas reserves while working for public and private equity backed companies. Of note, Shannon was recently a significant contributor to the success of Vitruvian I & II which sold to Gulfport earlier in the year. Shannon started her career at Newfield.
- Year-to-date, Epsilon has acquired varying interests in over 88 sections of land, all held by production from shallower intervals, including operations covering 21 sections in the NW STACK trend, of the Anadarko Basin in Oklahoma, with rights to the prospective and deeper Meramec, Osage and Woodford formations. This position covers a wide footprint encompassing oil, condensate and liquids rich gas prone areas in the over-pressured window of the Basin.
- Adjusted EBITDA of US$4.0 million for the quarter and US$14.8 million for the nine-month period. Net Income per diluted share was US$0.01 for the quarter and US$0.07 for the nine-month period.
- Marcellus working interest (WI) gas production averaged 25 million ft3/d and our Auburn System gathered and delivered 17 billion ft3 gross (5.8 billion ft3 net to Epsilon’s interest) during the quarter which represents approximately 50% of the maximum throughput. Auburn Gas gathering and compression services included third party gas of 1.0 billion ft3 during the quarter or approximately 11 million ft3/d.
Mr. Michael Raleigh, Chief Executive Officer, commented, “Epsilon is pleased to have Shannon Lemke join our talented team of professionals including Henry Clanton COO, Paul Atwood VP Financial Planning & Analysis, and Lane Bond, CFO. We are beginning the budgeting process for 2018, and will provide further details in regards to capital allocation to both the NW STACK project and the Marcellus project as that process concludes. Epsilon expects further natural gas price improvement in the NE during 2018 due to the anticipated commissioning of significant pipeline projects including Access South, Adair Southwest, Leach Xpress, Rover Phase II, and Atlantic Sunrise. These pipelines, coupled with the Cove Point LNG export facility, represent over 6 billion cubic feet per day of incremental demand for Marcellus-Utica production.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15112017/epsilon-reports-q3-results/