Epsilon Energy Ltd.
For the period ended Jun 30, 2025. Filed Aug 13, 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.
Jun 30, 2025 · Filed Aug 13, 2025
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Gain (Loss) on Derivative Contracts
| · · · · · · · · · · · · | ||||||||
|---|---|---|---|---|---|---|---|---|
| · · Three months ended June 30, · · Six months ended June 30, | ||||||||
| · 2025 · 2024 · 2025 · 2024 | ||||||||
| Gain (Loss) on derivative contracts | | $2,573,863 | | $(94,891) | | $1,111,693 | | $(195,617) |
For the six months ended June 30, 2025, Epsilon had NYMEX HH Natural Gas futures swaps, Tennessee Gas Pipeline Zone 4 basis 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. The amounts recorded represent the fair value changes on our derivative instruments during the year.
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. During the three and six months ended June 30, 2024, we received net cash settlements of $272,257 and $760,542, respectively.
For the three and six months ended June 30, 2025, realized gains on derivative contracts increased by $2.7 million and $1.3 million, respectively. This increase was primarily the result of a significant decrease in Henry Hub natural gas prices during the quarter.
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