Epsilon Energy Business Summary

Epsilon Energy Ltd. (EPSN) is a North American independent energy company that generates revenue through a dual-pronged model consisting of upstream production and midstream gathering services. Its Upstream segment focuses on the acquisition, development, and production of natural gas, crude oil, and natural gas liquids (NGLs), with core operations in the Marcellus Shale of Pennsylvania and the Permian Basin of Texas and New Mexico. Following the transformative 2025 acquisition of the Peak companies, Epsilon significantly expanded its footprint into the Powder River Basin, pivoting toward oil-weighted assets to balance its historical natural gas exposure. The Gathering System segment provides stable, fee-based revenue through ownership in midstream infrastructure, primarily the Auburn Gas Gathering system. Epsilon competes in the micro-cap E&P space against peers such as Evolution Petroleum (EPM), SandRidge Energy (SD), and GeoPark (GPRK), distinguishing itself through a debt-averse balance sheet and a disciplined capital allocation strategy focused on consistent shareholder dividends. Originally incorporated in 2005, Epsilon is currently led by President and CEO Jason P. Stabell, who assumed the role in July 2022 after previously serving as CEO of Merlon International and Merlon Petroleum, where he oversaw significant asset divestitures. He is supported by CFO J. Andrew Williamson, a Southern Methodist University alumnus with extensive experience in energy finance and strategy, and COO Henry Clanton. The company’s strategic direction is heavily influenced by Chairman John Lovoi, the founder of JVL Partners and former head of Morgan Stanley’s global oil and gas investment banking practice. Notable board members include Bryan Lawrence and Jack Vaughn, the latter bringing nearly 50 years of industry experience following the Peak acquisition. Institutional backing is led by Solas Capital Management, which remains a major shareholder and key stakeholder in the company’s long-term growth trajectory.