Epsilon Energy Launches New Share Buyback and Credit Update
Epsilon Energy Unveils New Share Repurchase Initiative
Epsilon Energy Ltd. (“Epsilon” or the “Company”) (NASDAQ: EPSN) has made significant announcements that are set to enhance shareholder value. With a forward-thinking approach, the Board of Directors has decided to terminate an existing normal course issuer bid program that began a year ago, only to promptly introduce a fresh one-year share repurchase program. This new initiative allows Epsilon to acquire up to 2,200,876 common shares, equating to 10% of its outstanding shares, for a total amount not exceeding US $13 million. The duration of this program officially commenced on February 12, 2025.
Understanding the Share Repurchase Program
The Board believes that the current market price of Epsilon's shares does not adequately reflect their true underlying value. They view this repurchase program as a prudent use of the Company’s funds aimed at increasing long-term shareholder value. Such strategic actions demonstrate Epsilon's commitment to its investors and an acknowledgment of the potential in its share pricing.
Shares will be bought back through the NASDAQ Global Market, with prices determined in accordance with relevant securities regulations. The Company plans to utilize its available cash reserves for these purchases without incurring any new debt.
Updates on Borrowing Base Redetermination
Alongside the share buyback announcement, Epsilon Energy has also revealed the revelation of its borrowing base information from their senior secured reserve-based lending revolving credit facility, which is conducted with Frost Bank. As of February 10, 2025, the borrowing base was established at $45 million. This figure will remain active until the next assessment occurs later in the year, providing financial stability as the company continues its operations.
About Epsilon Energy
Epsilon Energy Ltd. is engaged in the exploration and production of natural gas and oil across North America, with significant assets located in various states including Pennsylvania, Texas, Alberta, New Mexico, and Oklahoma. The company leverages its diverse resource base to optimize production, aiming at sustainable development and long-term growth.
Contacting Epsilon Energy
For further inquiries, shareholders and interested parties can reach out to the Company through the following contacts:
- Jason Stabell
Chief Executive Officer
Email: Jason.Stabell@EpsilonEnergyLTD.com - Andrew Williamson
Chief Financial Officer
Email: Andrew.Williamson@EpsilonEnergyLTD.com
Frequently Asked Questions
What is the purpose of Epsilon's new share repurchase program?
The program aims to enhance shareholder value by purchasing shares at a price believed not to reflect their true value.
How many shares can Epsilon repurchase under the new program?
Epsilon is authorized to repurchase up to 2,200,876 common shares or 10% of its outstanding shares.
What financial strategy will support the share repurchase program?
The Company plans to fund the repurchases using available cash reserves without acquiring new debt.
When does the new share repurchase program start and end?
The program commenced on February 12, 2025, and will conclude on February 11, 2026, unless the buyback target is achieved sooner.
What is the current borrowing base for Epsilon Energy's credit facility?
The borrowing base has been set at $45 million and will remain until the next evaluation later this year.
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