Epsilon Energy Ltd.
For the period ended Mar 31, 2026. Filed May 13, 2026.
View on SEC.govAbout this filing
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.
See the whole filing, with its images and exhibitsContents
Gain (Loss) on Derivative Contracts
Loss on Derivative Contracts
| · · · · · · | ||||
|---|---|---|---|---|
| · · Three months ended March 31, | ||||
| | | 2026 | | 2025 |
| Loss on derivative contracts, net | | $(8,929,829) | | $(1,462,170) |
During the three months ended March 31, 2026, the Company had NYMEX Henry Hub (“HH”) Natural Gas Futures swaps, NYMEX HH options, and crude oil NYMEX WTI CMA swaps derivative contracts for the purpose of hedging a portion of its physical natural gas and oil sales revenue. For the three months ended March 31, 2025, Epsilon had NYMEX HH Natural Gas futures swaps, Tennessee Gas Pipeline Zone 4 basis swaps, and crude oil NYMEX WTI CMA swaps derivative contracts for the purpose of hedging a portion of its physical natural gas and oil sales revenue. The amounts recorded represent the fair value changes on our derivative instruments during the year.
During the three months ended March 31, 2026 and 2025, we paid net cash settlements of $1,047,836 and $415,043, respectively.
For the three months ended March 31, 2026, realized losses on derivative contracts increased by $7.5 million. This increase was primarily the result of a significant increase in crude oil prices during the quarter and its impact on the Peak hedge book assumed in the acquisition.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.