Epsilon Energy Ltd.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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Sep 30, 2025 · Filed Nov 5, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Derivative Transactions
The Company has entered into hedging arrangements to reduce the impact of commodity price volatility on operations. By reducing the price volatility from a portion of natural gas and crude oil production, the potential effects of changing prices on operating cash flows have been partially mitigated, but not eliminated. While mitigating the negative effects of falling commodity prices, these derivative contracts also limit the benefits we might otherwise receive from increases in commodity prices.
At September 30, 2025, Epsilon’s outstanding natural gas and crude oil commodity contracts consisted of the following:
| · · · · · · · · · · · · · · · · · | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · · · Weighted Average Price ($/Mmbtu) · · · | ||||||||||||||||
| · · Volume · · · · · Ceiling · · Floor · · Basis · · Fair Value of Asset | ||||||||||||||||
| Derivative Type · (MMbtu) · Swaps · Price · Price · Differential · September 30, 2025 | ||||||||||||||||
| 2025 · · · · · · · · · · · · · · · · · | ||||||||||||||||
| Henry Hub Nymex Swap | 183,000 | | $4.66 | | $— | | $— | | $— | $193,937 | ||||||
| Henry Hub Nymex Option - Put | 262,000 | | $— | | $— | | $3.47 | | $— | $74,393 | ||||||
| Henry Hub Nymex Option - Call | — | | $— | | $5.65 | | $— | | $— | $(9,659) | ||||||
| 2026 | | | | | | | | | | | | | | | | |
| Henry Hub Nymex Swap | 912,000 | | $4.27 | | $— | | $— | | $— | $417,827 | ||||||
| Henry Hub Nymex Option - Put | 1,345,300 | | $— | | $— | | $3.80 | | $— | $411,163 | ||||||
| Henry Hub Nymex Option - Call | — | | $— | | $4.86 | | $— | | $— | $(338,906) | ||||||
| 2027 | | | | | | | | | | | | | | | | |
| Henry Hub Nymex Option - Put | 579,400 | | $— | | $— | | $3.30 | | $— | $209,824 | ||||||
| Henry Hub Nymex Option - Call | — | | $— | | $5.40 | | $— | | $— | $(224,921) | ||||||
| | 3,281,700 | | | | | | | | | | | | | $733,658 | ||
| | | | | | | | | |
|---|---|---|---|---|---|---|---|---|
| · · · · · · Fair Value | ||||||||
| · · Volume · · Weighted Average · · September 30, | ||||||||
| Derivative Type · (Bbl) · Price ($/Bbl) · 2025 | ||||||||
| 2025 | | | | | | | | |
| Crude Oil NYMEX WTI CMA | 21,800 | | $67.66 | $125,226 | ||||
| 2026 | | | | | | | | |
| Crude Oil NYMEX WTI CMA | 9,000 | | $67.12 | $30,303 | ||||
| | 30,800 | | | | | $155,529 | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.