Epsilon Energy Ltd.
For the period ended Jun 30, 2026. Filed Aug 12, 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.
Jun 30, 2026 · Filed Aug 12, 2026
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Gain (Loss) on Derivative Contracts
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| · · Three months ended June 30, · · Six months ended June 30, | ||||||||
| | | 2026 | | 2025 | | 2026 | | 2025 |
| Gain (loss) on derivative contracts, net | | $2,245,470 | | $2,573,863 | | $(6,684,358) | | $1,111,693 |
During the six months ended June 30, 2026, the Company had NYMEX Henry Hub (“HH”) Natural Gas Futures swaps, NYMEX HH options, crude oil NYMEX WTI CMA swaps, and crude oil NYMEX WTI CMA options derivative contracts for the purpose of hedging a portion of its physical natural gas and oil sales revenue.
For the six months ended June 30, 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 and six months ended June 30, 2026, we paid net cash settlements of $1,730,781 and $2,778,616, respectively. During the three months ended June 30, 2025, we received net cash settlements of $306,660. During the six months ended June 30, 2025, we paid net cash settlements of $108,383.
For the three and six months ended June 30, 2026, realized losses on derivative contracts increased by $0.3 million and $7.8 million, respectively. 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.
Other Income (Expense)
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| · · Three months ended June 30, · · Six months ended June 30, | ||||||||
| | | 2026 | | 2025 | | 2026 | | 2025 |
| Other expense, net | | $(208,658) | | $(10,839) | | $(192,230) | | $(33,338) |
During the three and six months ended June 30, 2026, the Company had water facility expenses of $0.2 million in Wyoming.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.