Epsilon Energy Ltd. (NASDAQ:EPSN) reported fourth-quarter adjusted earnings per share of $0.43, significantly ahead of analyst expectations of $0.04. Revenue totaled $14.82 million, exceeding the consensus forecast of $11.36 million and marking a 65% increase from $8.98 million in the third quarter.
Shares of the company rose about 1.13% in after-hours trading following the announcement.
Revenue for the fourth quarter reached $14.82 million, compared with $31.52 million for the entire 2024 fiscal year. Total production for the period was 3,196 MMcfe, representing a 30% increase from the previous quarter and a 54% rise year over year.
Gas revenue increased 44% quarter over quarter to $6.84 million, while oil revenue jumped 111% to $5.30 million. Adjusted EBITDA for the quarter came in at $7.55 million, up 44% compared with the prior quarter.
“Over the past three years, we have repositioned Epsilon into a differentiated, multi-basin platform that is unique among small-cap energy companies,” said Jason Stabell, Chief Executive Officer.
For the full year 2025, Epsilon posted adjusted net income of $21.29 million, or $0.92 per share, compared with $3.64 million, or $0.17 per share, in 2024.
Total annual revenue reached $51.59 million, a 64% increase from $31.52 million the previous year. Adjusted EBITDA for the year climbed 75% year over year to $30.74 million.
The company completed its acquisition of the Peak companies toward the end of 2025, adding around 40,000 net acres in the Powder River Basin. Capital expenditures for 2025 totaled $15.26 million, excluding acquisitions, representing a 19% decrease from the prior year.
Epsilon also reported a sharp increase in reserves. Proved reserves rose 86% year over year to 156,037 MMcfe, while probable reserves increased 250% to 498,729 MMcfe, largely driven by the Wyoming asset acquisition.