Epsilon Energy Ltd. (EPSN) AI Stock Analysis

Epsilon Energy Ltd. specializes in the acquisition, development, gathering, and production of energy reserves across strategic regions in the United States. The company operates through its Upstream and Gathering System segments. In Pennsylvania's Marcellus region, Epsilon Energy focuses on natural gas production to maximize resource extraction and operational efficiency. In Oklahoma's Anadarko Basin, it produces oil, natural gas liquids (NGL), and natural gas. Founded in 2005 and headquartered in Houston, Texas, the company reported estimated net proved reserves of 110,969 million cubic feet of natural gas, 819,726 barrels of NGL, and 305,052 barrels of oil and other liquids as of December 31, 2021.

Revenue grew from $42.4M in FY2021 to $70.0M in FY2022 before falling 56.1% to $30.7M in FY2023. Revenue recovered to $31.5M in FY2024 and rose 63.7% to $51.6M in FY2025, reflecting a 5-year revenue CAGR of 16.1% from FY2020 to FY2025. Gross margin was 47.6% and operating margin was 30.3% in FY2025, though net income fell to -$5.8M with a net margin of -11.2% and EPS of -$0.16. Over the trailing twelve months, revenue reached $67.7M with an operating margin of 36.4% and EPS of -$0.24. In the latest quarter ended June 30, 2026, revenue increased 57.1% year-over-year and earnings grew 228.6%.

As of June 30, 2026, Epsilon Energy held $11.2M in cash and short-term investments alongside total debt of $474,078, resulting in net cash of $10.7M and a debt-to-equity ratio of 0.00. Total assets stood at $236.4M against shareholders' equity of $129.9M, while the current ratio was 0.96. Operating cash flow totaled $20.6M in FY2025, producing free cash flow of $5.2M. Cash expenditures in FY2025 included $15.4M in capital expenditures and $6.0M paid in dividends.

Epsilon Energy trades at a forward P/E of 15.6x, above the median of its US-listed Energy peers of 12.7x. Its price-to-sales multiple of 2.7x and EV-to-EBITDA of 21.3x also exceed the sector peer medians of 1.8x and 8.0x, respectively. The stock closed at $5.97 on October 16, 2026, standing 8.1% above its 200-day moving average. Over the past year, the stock returned 32.3%, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of 30.9% lagged the index return of 83.0%.

Epsilon Energy pays an annual forward dividend of $0.25 per share, representing a dividend yield of 4.19%. Dividends are distributed quarterly, and the company has paid dividends for 5 consecutive years. Its payout ratio stands at 92.6%, and the most recent ex-dividend date was September 15, 2026.

Analysts have established a mean price target of $8.40 for Epsilon Energy, representing an upside of 40.7% compared to its last close of $5.97. The revenue estimate for the fiscal year ending December 31, 2026, is $0. Over the last four quarters, the company recorded 2 EPS beats. The next earnings date is scheduled for November 4, 2026.

This page is an AI-written research summary of Epsilon Energy Ltd. (EPSN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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