Epsilon Energy Ltd.
For the period ended Sep 30, 2025. Filed Nov 5, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 5, 2025
Contents
Operating Costs
The following table presents total cost and cost per unit of production (Mcfe), including ad valorem, severance, and production taxes for the three and nine months ended September 30, 2025 and 2024:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · Three months ended September 30, · · Nine months ended September 30, | ||||||||||||
| · 2025 · 2024 · 2025 · 2024 | ||||||||||||
| Lease operating costs (net of elimination) | | $2,397,052 | | $2,099,501 | | $7,615,735 | | $5,517,830 | ||||
| Gathering system operating costs | | | 563,542 | | | 490,325 | | | 1,729,988 | | | 1,692,862 |
| | | $2,960,594 | | $2,589,826 | | $9,345,723 | | $7,210,692 | ||||
| | | | | | | | | | | | | |
| Upstream operating costs—Total $/Mcfe | | $0.98 | | $1.22 | | $0.88 | | $1.00 | ||||
| Gathering system operating costs $/Mcf | | $0.18 | | $0.19 | | $0.15 | | $0.16 | ||||
Operating costs include the effects of elimination entries to remove the gathering fees paid to Epsilon’s ownership in the gathering system.
Upstream operating costs consist of lease operating expenses necessary to extract natural gas and oil, including gathering and treating the natural gas and oil in preparation for sale. For the nine months ended September 30, 2025 these costs increased by $2.1 million, or 38%, over the same period in 2024. The increase is primarily due to higher volumes. For the three months ended September 30, 2025 these costs increased by $0.3 million, or 14%, over the same period in 2024. The increase is due to non-recurring plugging and abandonment expenses above previously estimated asset retirement obligations.
Gathering system operating costs consist primarily of rental payments for the natural gas fueled compression units and overhead fees due to the system’s operator. For the three and nine months ended September 30, 2025, gathering system operating costs were constant compared to the same period in 2024.
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