HOUSTON, May 13, 2020 (GLOBE NEWSWIRE) — Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) today reported first quarter 2020 financial and operating results and material subsequent events following the end of the quarter through the date of this release.
Marcellus net revenue interest (NRI) gas production averaged 29.4 MMcf/d (Working Interest of 33.8 MM/d).
 Auburn System gathered and delivered 23 Bcfe gross (8.1 Bcfe net to Epsilon’s interest) which represents approximately 77% of the designed throughput capacity. 
 Total Revenues of $6.4 MM for the quarter
 Generated EBITDA of $4.6 MM and free cash flow (FCF) of $2.9 MM for the quarter.
 Net income before tax of $0.64 MM for the quarter following a $1.76 MM write down of the Oklahoma producing assets resulting from the recent drastic price deterioration due to global oversupply of oil and demand destruction due to the COVID-19 virus.
 Returned $1.5 MM to shareholders through the purchase of 488,029 shares through March 31, 2020 for an average price of $3.07/share
 Realized gas prices of $1.47/Mcfe, (excluding hedges) and $1.99/Mcfe (including hedges)
 Operating expenses including SG&A of $1.18/Mcfe
 Cash at quarter end of $15.4 MMMichael Raleigh, CEO, commented, “During the first quarter, Epsilon participated in the drilling of four gross wells (0.16 Net) in the Marcellus. Two of the four wells are long reach (>12,000 feet) horizontals. These wells were completed in April and are currently in the process of initial flow back and testing. Given the early indication of productivities and the cost efficiencies of the extended laterals, we believe this group of wells will exhibit attractive rates of return on invested capital. The team has now turned its attention to development plan options for 2021. We look forward to updating our shareholders regarding these plans at the appropriate time.“We expect the recent precipitous decline in oil prices and distress throughout the E&P industry will lead to much less capital deployed and result in declines to associated natural gas production. Recent winter 2020/2021 supply forecasts in Appalachia are estimated to be approximately 2 Bcf/d below winter 2019/2020 levels. The supply/demand forecasts suggest we could expect a constructive natural gas pricing environment during calendar 2021.”Financial and Operating ResultsCapital Expenditures
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