Epsilon Energy Expects The Shut-In To Result In A Small Net Positive Adjustment To FY Revenues Due To Higher Forward Gas Prices In Q4, With A Negligible Impact To FY Production. Estimate Q3 Volumes And Revenues Will Be Down ~5% From Our Original Estimate
Portfolio Pulse from Happy Mohamed
Epsilon Energy Ltd. (EPSN) has declared a dividend of $0.0625 per share, payable on September 29th, 2023. The company also announced near-term drilling plans in Pennsylvania and Texas, which are expected to add meaningful production volumes and cash flow in 2024. However, Q3 volumes and revenues are expected to be down approximately 5% from original estimates due to the shut-in of approximately 3 MMcf per day of net production for an estimated 45 days.
August 29, 2023 | 8:48 pm
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NEUTRAL IMPACT
Epsilon Energy's declaration of dividends and announcement of near-term drilling plans are positive news for investors. However, the expected decrease in Q3 volumes and revenues due to production shut-in may negatively impact the stock in the short term.
The declaration of dividends is a positive signal to investors, indicating the company's profitability and financial health. The announcement of near-term drilling plans suggests potential growth in production and revenues in 2024. However, the expected decrease in Q3 volumes and revenues due to production shut-in may cause short-term uncertainty and potential negative impact on the stock price.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100