Epsilon Energy (EPSN) 10 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Epsilon Energy Third Quarter 2023 Earnings Conference Call. [Operator Instructions]

Please note this event is being recorded.

I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead.

operator. you, Thank of welcome behalf to team, would operational I Epsilon's And of the you to results. and financial all quarter call to like third on XXXX management today's review conference

to like statements. the factors statements. to anticipated or materially forward-looking be could financial I'd begin, Epsilon's Today's should we earnings remind that in results expectations may forward-looking call non-GAAP It issued refer variety our a these that from contain actual results you reconciliations noted cause of include we on measures. comments of also that non-GAAP differ Please Before disclosures measures. forward-looking the and may release certain for expressed yesterday statements to

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

everyone, Andrew. you Energy morning thank Epsilon the you, for Quarter in Good XXXX Call. Third to and Conference participating Thank

Andrew and me our Joining Clanton, Williamson, are our COO. today CFO; Henry

later call. available will the answer in questions We to be

yesterday press business posted Our quarterly on I'd our August. since key release and Today, to last in our results. release discuss highlights several XX-Q provide details like

the more our CapEx add importantly, Alongside gas. years, significant operating about in both and a are in we're excited liquids Pennsylvania planned will XX next our natural to and relative the First and last planning development most and near-term for we Texas. budget months which recent partners, investments robust few volume growth

wells. Henry more already Pennsylvania to add We in having can in underway X here. elected are recently detail participate

position a sits year. proximity This the on drilled wells acquired this that large XX,XXX-acre X position activity wells. close In gross contiguous we completed recently Texas, will continue first we our in where in XX% XXXX our and and to completed hold X earlier recently interest we approximately leasehold

to begin will large potential asset. the this unlock plans value of XXXX Our

the volumes on portion of same Permian. gas in the natural crude potentially market and XX next months portion for coming will of hedged the with have production a the oil a monitor to We our do the

continue totaled we $X to in our through $X.X prioritize and in share quarter, our These and per returns $X returns well-supported for over $XXX,XXX shareholder the quarterly dividend paid purchases. September. dividend at July a Finally, million purchase share opportunistic share million including

to detailed turn for on and Andrew operations. our I'd to and like Henry call some the over comments Now more finances

Thanks, Jason.

downside As gas mentioned, for Jason swaps over program release our wanted last curve Henry see to basis included days, to and press volumes take the next just We our on XXXX the forecasted of forward are Hub October Approximately XX and ahead XX% potential we we some to Pipeline on Gas of put some posted hedges the Tennessee X. yesterday. XX risk through looking hedged. based Details capital off in over Zone are the the months.

in the on evenly the but PA half up to prices. comfortable with split for million plan first development we sheet, forward of County, depending current balance at With bit recent exposure the the the company years. year investments. be It's I'll we're and our in our the let level look of through for will $XX year, about is million Permian. upcoming spend County. roughly about CapEx Henry our Ector to portion last the active operations first pace is online crude We're the in talk of That quarter and that several of from volumes next between most With X our wells shaping this aspect, excited depending this drill periods prices. forward on a the at Ector quarter $XX one of in fourth hedging

our hand from cash be this existing and will comfortably of cash on All flow. funded

in quarter cash the incremental with Permian. the in fourth impact meaningful wells the make online a expect starting X to flows associated the We first

another we'll spend continue have our of Hopefully, would report deploy time our evaluation next something existing to part to big base. disciplined asset our process. add there year. but in a business We to We looking like investment development, to outside opportunities area on of capital for remain

the Now on to operations. Henry comments for

Thank you, Andrew.

is As Jason meaningful contribution in participate pleased to our to are over are mentioned wells next report earlier, months. to Pennsylvania our X inventory These and wells midyear. by the expected in volume company election the of X provide representative

The wells remaining to The of XXXX drilled with are completion waiting the are scheduled expected as of QX for drilled been and first be X by for first have well. X year-end completion for half wells scheduled the XXXX.

Basin have appraisal Preliminary mid-October. with project, wells as and now Plans flowback year. to X consistent achieved Permian rates both our type next than peak encouraging up wells to operations our in expectation X the have been days. results XX are additional are in completed less curve appraisal drill finalized being first In began wells

expected As quarter Jason mix that company's work liquids been gross flows going estimate well and during And September. returned [ the all mentioned, to this finally, on meaningfully and runway. locations is to ] have XX wells add shut in remedial third has production the for forward. project significant Crumlin late to XX We the were cash to pad

Now back Jason. to

Operator, can questions. guys. the now line Thanks, we open for

to concludes back This any for I [Operator conference to Instructions] session. Showing Stabell the question-and-answer over like no turn our Jason remarks. closing questions. would

the to to plans, have these want you for us you. Friday thank we and quarter third on weekend. Thank and and progress look you joining I updating for on a great today Gary, hope We nice you, call. a the Thank forward everyone

conference has for now attending The Thank you concluded. presentation. today's

You now may disconnect.