Epsilon Energy reports Q2 2026 results, issues second-half guidance

Epsilon Energy (NASDAQ: EPSN ) reported second-quarter financial results on Thursday.

The transcript from the company's second-quarter earnings call has been provided below.

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For comprehensive financial data and transcripts, visit Access the full call at Summary Epsilon Energy provided a correction for adjusted net income and EPS in their recent press release, with no impact on GAAP results or cash flows.

The company reported steady progress on operational initiatives, particularly in the Powder River Basin, with early production exceeding expectations.

For the first time, Epsilon Energy issued production guidance for the second half of 2026, anticipating significant growth driven by high-return oil projects.

In the Permian Basin, the first three-mile Barnett well performed well, and two additional wells are planned for the second half of 2026.

In Pennsylvania, production was impacted by temporary curtailments, but new wells are expected to come online in late Q4.

The integration of assets and personnel from the Peak acquisition is nearly complete, supporting operational execution and efficiency improvements.

The company plans to spend significantly more in the third quarter on key developments, with an expected high-teens year-over-year growth in total production for 2026.

Epsilon Energy paid down $10 million in debt and plans to utilize a revolver to fund upcoming investments while maintaining target leverage levels.

Management expressed confidence in continued growth across their primary areas, with discussions underway to potentially accelerate development in the Powder River Basin.

Full Transcript OPERATOR Good day and welcome to the Epsilon Energy second quarter 2026 earnings conference call.

All participants will be in listen-only mode.

Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star then one on a telephone keypad.

And to withdraw your question, please press star then two.

At this time, I would like to turn the conference over to your President and CEO, Jason Stabell.

Please go ahead.

Jason Stabell, President & CEO Good morning.

Before we begin our prepared remarks, we would like to address the press release correction issued yesterday.

The correction was limited to the presentation of adjusted net income and adjusted EPS in the summary table.

The reconciliation later in the release reflected the correct treatment.

After identifying the inconsistency, we promptly updated the release.

There was no impact to our reported GAAP results, cash flows, or the underlying economics of the business.

Thank you, operator.

I'll now turn the call over to Andrew Williamson, our CFO.

Andrew Williamson, CFO Thank you, operator.

And on behalf of the management team, I would like to welcome all of you to today's conference call to review Epsilon's second quarter 2026 and operational results.

Before we begin, I would like to remind you that our comments may include forward-looking statements.

It should be noted that a variety of factors could cause Epsilon's actual results to differ materially from the anticipated results or expectations expressed in these forward-looking statements.

Today's call may also contain certain non-GAAP financial measures.

Please refer to the earnings release that we issued yesterday for disclosures on forward-looking statements and reconciliations of non-GAAP measures.

With that, I would like to turn the call over to Jason Stabell, our Chief Executive Officer.

Jason Stabell, President & CEO Thank you, Andrew, and good morning everyone.