Epsilon Energy (EPSN) 7 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to the Epsilon Energy Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Andrew Williamson, Chief Financial Officer. Please go ahead.

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 third quarter 2024 financial and operational results.

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

Thank and conference in you, morning, our third participating Andrew. you for Good thank quarter call. XXXX

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

the We growth. brought later resumes low X the questions we the will we production wellhead a come discuss deferred later In will week. Pennsylvania, XX% quarter-over-quarter the our curtailed the and prices in specific we well Ector the back October, put driving were TILs online In announced call. In fourth in last winter. volumes in drilling quarter, Permian, to until online remained in be X some have liquids have portion seventh into production available see of of performance well next third production the declines previously small Henry oil will answer year. on seen quarter, call. In heading quarter-over-quarter

development we through private deal, is joint In satisfied. lifted into not we the operator quarter-over-quarter in first forecast after are updated of into remaining ventures the the with in million expected with quarter a Pennsylvania natural do Alberta, XXXX, larger carry fourth Canada curtailments keep growth further discussions gas X but you in entry a volumes year deferred So will quarter. Late on. incremental ramp expect are the Currently, approximately X.X and brought quarter month, last our in the our TIL USD fourth in announced next we after operators. wells drilling as Calgary-based with we

XXX,XXX acres. earn in XX% will We approximately

will in for deliver the in Ellerslie XX,XXX to gross focus commence details provide call in Glauconitic to XXXX, cash quarter be development capital the on remains gross Garrington with likely approximately volume flow X in positioned acres this can Our initial plans Andrew and year. liquids-rich wells Initial area, intervals. expenditures. Overall, the and further the well growth the fourth XXXX. company projected of operations

opportunities Canada. share We continue our Meanwhile, in the to to monitor continue our and additional particularly evaluate prices. attractive dividend and investments, at we for will see to pay opportunities potential reduce count

to Now the call to I comments. over like for would turn additional Andrew

Jason. Thanks,

on the the also the in in Auburn PA were curtailments, midstream lifting plugging quarter from was and quarter both trough peak per on $X.XX developed Production area, rates at PA and and abandonment continued by by curtailments first impacted upstream approximately quarter. our prices for The volumes the business, increasing wells and XX% We side. were to pricing. of starting This Mcf. the the that quarter realized were activities the operating for costs deferred back better come through

to back start we'll here. us bring from So

contributing approximately starting million the slack, with in million the year-to-date, producing the in on coming net net undeveloped approximately currently through XX% the of the of is of back cash of million X.X invested picked that $X.X which level, last X X XXXX end the On project X and leasehold. figure. XX% months. up X with approximately gross, QX mentioned, gross, company some received adjusted Jason As flows of of has $XX a of quarter we've Permian of $XX We EBITDA the third wells total

alternatives the over review for plays the mentioned of the year. next strategic Texas on previously as We not the out rest operated clear are details still of investment process activity year interest

there active be growth. However, we to expect do XXXX in resume and

is to activity our drilling quarter scheduled Garrington later mentioned, Alberta start this JV Jason in position. on As

million have from expect CapEx the in there this December. XX-month period We of approximately to $XX

seen, this are to regime economic there area due development. Also, to to stands are us premier of a the advantages mentioned of Relative holds Garrington corporate deal in ability private some other in we've the in partnership We liquids operator joint as Canada conducting the large north locations cost about the the underwritten out with business with XX set earn position venture, our announcement excited basin. over into of highly that opportunity royalty structure, and focused large border. the is a opportunities acreage in to

above hedge prices the book locking current for We XXXX, our have incrementally strip. in added to

add On us so. at leading well the We on move we a opportunistically to will while strong to if sheet. see liquidity, revolver our capacity available $XX million, opportunities positioned do there balance continue stands other opportunity maintaining to currently

turn to will I it Now for operations. over Henry

the began and begin Mississippian in Thank the is production life productivity The Basin, the drilled July. perform interval It Permian well. We of our the We'd project X continues Barnett reported you, the initial comments on consistent prospectivity well this Jason like to project wells seventh to well Andrew. is the highlight production. existing I'll in on large with with previously most and the providing early the project. the south date. in development to confirmatory is position of acreage that southernmost of evidence of

to underway, as we review do continues. Accordingly, alternatives additional anticipate they process provide for available. moving the while we'll forward strategic the a and on mentioned, development updates operated any process development interest Andrew plans become occur As not the is

of over and of the wells our wells XX next X-mile the and begun anticipated are in the targeted JV, drilled. will horizontal Canada to December. have beginning intervals Moving development months we the be Currently, with for group to announced Garrington first phase identify planning and the recently location operator

and formation X.X in finalized, area. capital Mannville additional in ongoing. Lower have technical the mentioned, April will in updates to oil Killam We performance formed operator year, provide wells, well venture this X.X smaller in well Alberta separate Results are investment the multi-leg date Northeast interval participated X ] Clapper horizontal week, the is completion pools on in joint in and target are is and proposals as of initial including net reviews company pad. X required. In costs No Jason CapEx, X timing. Under the mixed, for [ of incurred the X, deferred million. net last Net drilling PA, approximately commenced TIL the as X wells wells, been flowback USD the

basin, in day We net meaningfully a expect these the our million to producing X to approximately wells add net. production currently

to Jason. back Now

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

today [Operator Instructions] question is from Our White first Capital. with ROTH John

nice a And congratulations on quarter.

during week of release, a X last What October, the the from press of on XX is million wells producing said in You X flowback net day. production were the put the that?

X in I That's day million a reported call there. the that the

over revenue XX% interest We a in about a pad. XX% that have little net --

to it So X million equates a day. about

That's great.

had you the the the you On million X price X gas -- $X.XX third $X.XX. negative offline was gas differential to quarter, quarter, at had a realized with of during in natural million day a that your

at Looking at gas $X.XX to a of use if price. Hub $X.XX differential and negative get we Henry XQ, $X.XX realized

that's online? X day million you So to think will back X spur the that increase. coming million a Do a nice

on, dictated back from yes, be don't certain they're way day the John, that first day, and on. But off. we will we to We look price forward still on as they're clear some understand at it if to quarter. would turning it days operator, Actually, think beginning some is that volumes you out the think we as those have the from by a -- mentioned, volumes curve bringing clear visibility. suggest about the I that those wells curtailed the what come going of

schedule the to on back volumes clear indicated. come do terribly of see for we've not already still coming some those But we're we back. So curtailed them as

on congratulations results. And helpful. Texas that's Well, West

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

in want as the today. Thank for office. or thank Thank always, have you, comments, at a to if I here free interest you. operator. and contact joining Have Epsilon great everyone us us questions Houston to day. And additional for you feel their

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

disconnect. now may You