Epsilon Energy Ltd

For the period ended Sep 30, 2024. Filed Nov 6, 2024.

About 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.

Sep 30, 2024 · Filed Nov 6, 2024

EPSN$5.24+0.8%Stored close · as of Nov 10, 2026

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Contents

Unaudited Condensed Consolidated Statements of Cash Flows


· · Nine months ended September 30,
	2024		2023
Cash flows from operating activities:
Net income		$2,688,577		$4,349,191
Adjustments to reconcile net income to net cash provided by operating activities:
Depletion, depreciation, amortization, and accretion		7,127,641		4,780,766
Accretion of discount on available for sale securities		(297,637)		(574,341)
Gain on available for sale securities		—		(60,494)
Loss on sale of oil and gas properties		—		1,449,871
Gain on derivative contracts		(245,095)		(1,672,535)
Settlement received on derivative contracts		1,245,931		2,979,128
Settlement of asset retirement obligation		(88,992)		(3,482)
Stock-based compensation expense		944,267		799,149
Deferred income tax (benefit) expense		584,088		1,188,059
Changes in assets and liabilities:
Accounts receivable		1,545,431		3,195,108
Prepaid income taxes		(67,878)		(814,694)
Other assets and liabilities		(94,360)		(67,008)
Accounts payable, royalties payable and other accrued liabilities		(1,520,707)		(1,191,558)
Net cash provided by operating activities		11,821,266		14,357,160
Cash flows from investing activities:
Additions to unproved oil and gas properties		(2,787,448)		(8,017,412)
Additions to proved oil and gas properties		(29,041,344)		(7,860,073)
Additions to gathering system properties		(76,625)		(52,069)
Additions to land, buildings and property and equipment		(13,912)		(49,689)
Purchases of short term investments - held to maturity		—		(32,812,974)
Purchases of short term investments - available for sale		(4,045,785)		—
Proceeds from sales and maturities of short term investments		23,116,930		14,554,976
Proceeds from sale of oil and gas properties		—		12,498
Prepaid drilling costs		1,813,808		(2,891,250)
Net cash used in investing activities		(11,034,376)		(37,115,993)
Cash flows from financing activities:
Buyback of common shares		(1,831,208)		(5,695,275)
Dividends paid		(4,116,777)		(4,217,471)
Debt issuance costs		—		(140,000)
Net cash used in financing activities		(5,947,985)		(10,052,746)
Effect of currency rates on cash, cash equivalents, and restricted cash		62,438		(2,317)
Decrease in cash, cash equivalents, and restricted cash		(5,098,657)		(32,813,896)
Cash, cash equivalents, and restricted cash, beginning of period		13,873,628		45,806,947
Cash, cash equivalents, and restricted cash, end of period		$8,774,971		$12,993,051

Supplemental cash flow disclosures:
Income taxes paid		$4,000		$1,442,304
Interest paid		$16,832		$88,835

Non-cash investing activities:
Change in proved properties accrued in accounts payable and accrued liabilities		$818,504		$41,947
Change in gathering system accrued in accounts payable and accrued liabilities		$173,193		$3,441
Asset retirement obligation asset additions and adjustments		$39,597		$4,640

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.