Epsilon Energy Ltd.
For the period ended Mar 31, 2026. Filed May 13, 2026.
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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.
Mar 31, 2026 · Filed May 13, 2026
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 March 31, 2026, Epsilon’s outstanding natural gas and crude oil commodity contracts consisted of the following:
| · · · · · · · · · · · · · · | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · · · Weighted Average Price ($/Mmbtu) · · · | |||||||||||||
| · · Volume · · · · · Ceiling · · Floor · · Fair Value of Asset | |||||||||||||
| Derivative Type · · (MMbtu) · · Swaps · · Price · · Price · · March 31, 2026 | |||||||||||||
| 2026 · · · · · · · · · · · · · · | |||||||||||||
| NYMEX Henry Hub (LD) Options Call | (1,721,969) | | $— | | $5.01 | | $— | $(252,176) | |||||
| NYMEX Henry Hub (LD) Options Put | — | | $— | | $— | | $3.35 | $669,179 | |||||
| NYMEX Henry Hub (LD) Swaps | (931,345) | | $3.91 | | $— | | $— | $636,364 | |||||
| 2027 | | | | | | | | | | | | | |
| NYMEX Henry Hub (LD) Options Call | (2,584,716) | | $— | | $4.76 | | $— | $(934,172) | |||||
| NYMEX Henry Hub (LD) Options Put | — | | $— | | $— | | $3.25 | $1,029,348 | |||||
| NYMEX Henry Hub (LD) Swaps | (312,297) | | $3.76 | | $— | | $— | $1,676 | |||||
| 2028 | | | | | | | | | | | | | |
| NYMEX Henry Hub (LD) Options Call | (27,978) | | $— | | $4.70 | | $— | $(29,433) | |||||
| NYMEX Henry Hub (LD) Options Put | — | | $— | | $— | | $3.65 | $7,560 | |||||
| NYMEX Henry Hub (LD) Swaps | (27,978) | | $4.46 | | $— | | $— | $(16,947) | |||||
| | (5,606,283) | | | | | | | | | | $1,111,399 | ||
| | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · · · Weighted Average Price ($/Bbl) · · | ||||||||||||||
| · · Volume · · · · · Ceiling · · Floor · · Fair Value of Asset | ||||||||||||||
| Derivative Type · · (Bbl) · · Swaps · · Price · · Price · · March 31, 2026 | ||||||||||||||
| 2026 | | | | | | | | | | | | | | |
| NYMEX WTI CMA Options Call | | (31,583) | | $— | | $69.12 | | $— | $(362,083) | |||||
| NYMEX WTI CMA Options Put | | — | | $— | | $— | | $59.10 | $78,977 | |||||
| NYMEX WTI CMA Swaps | | (197,783) | | $63.75 | | $— | | $— | $(3,571,714) | |||||
| 2027 | | | | | | | | | | | | | | |
| NYMEX WTI CMA Options Call | | (118,096) | | $— | | $67.82 | | $— | $(1,085,356) | |||||
| NYMEX WTI CMA Options Put | | — | | $— | | $— | | $57.60 | $473,422 | |||||
| NYMEX WTI CMA Swaps | | (105,986) | | $63.76 | | $— | | $— | $(605,479) | |||||
| 2028 | | | | | | | | | | | | | | |
| NYMEX WTI CMA Options Call | | (8,308) | | $— | | $67.96 | | $— | $(71,959) | |||||
| NYMEX WTI CMA Options Put | | — | | $— | | $— | | $57.57 | $40,812 | |||||
| NYMEX WTI CMA Swaps | | (8,308) | | $62.97 | | $— | | $— | $(40,736) | |||||
| | (470,064) | | | | | | | | | | | $(5,144,116) | ||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.