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EPSN Nasdaq· Epsilon Energy Ltd
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EPSN Nasdaq· Epsilon Energy Ltd
Earnings report Q3 2023

EPSN's Revenue Declines by 70% in the Latest Quarter

Segments of revenue

In the latest quarter, EPSN reported a significant decline in revenue across its segments. In Pennsylvania, natural gas revenue decreased from $16.8 million in the same period last year to $1.9 million, representing a decline of 89%. The volume of natural gas sold in Pennsylvania also decreased from 2,289 MMcf to 1,746 MMcf, while the average price per Mcf dropped from $7.34 to $1.07. Additionally, gathering system revenue in Pennsylvania increased from $2.1 million to $3.1 million. Overall, total revenue in Pennsylvania amounted to $4.9 million.

Strengths

Despite the decline in revenue, EPSN's management remains committed to disciplined capital allocation and aims to provide shareholder returns through dividends and share buybacks. The company's strong balance sheet and cash flows position it to opportunistically invest in existing and potential new projects.

Challenges

EPSN faced significant challenges in the latest quarter, as its revenue decreased by 70% compared to the same period last year. The decline in natural gas revenue in Pennsylvania was primarily driven by lower volumes and a decrease in average prices. This indicates potential challenges in production and market conditions.

Noteworthy

It is worth noting that EPSN's revenue decline of 70% in the latest quarter is a significant deviation from its performance in the same period last year. The decrease in natural gas revenue in Pennsylvania was particularly notable, with a decline of 89%. This decline may be attributed to various factors, including changes in market dynamics and pricing.

Summary

EPSN's latest quarter performance was characterized by a substantial decline in revenue, primarily driven by a significant decrease in natural gas revenue in Pennsylvania. The company's management remains focused on disciplined capital allocation and aims to provide shareholder returns through dividends and share buybacks. However, EPSN faces challenges in production and market conditions, as evidenced by the decline in revenue. The notable decline in revenue warrants further analysis and attention from investors and industry observers.

Source documents

Form 10-Q  filed on Nov 09, 2023
15 pages scanned

Reference data

Company financials Q3 revenue 6.3M
Analyst estimates Q3 EPS missed by NaN%
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