Epsilon Energy Issues Q3 and FY 2026 Production and Capital Guidance
EPSN sits 33% above its 52-week low of $4.2 on light trading volume (0.2× avg).
Summary
Epsilon Energy issued Q3 and FY 2026 production and capital guidance, projecting 10% sequential production growth in Q3 and 18% for the full year, with capital spending of $42–47 million for FY 2026.
Key Events · Earnings and Guidance · EPSN
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Production Guidance Issued
Q3 2026 total production guided at 3,270–3,510 MMcfe (midpoint daily 35.6–38.2 MMcfe/d), with oil at 155–165 MBbl. FY 2026 total production guided at 13,740–14,280 MMcfe (midpoint daily 37.6–39.1 MMcfe/d), with oil at 640–670 MBbl.
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Sequential Growth Projected
Midpoint sequential growth of 10% in Q3 and 18% for FY 2026 in total production, driven by oil growth of 27% and 194% respectively.
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Capital Spending Plan
Q3 2026 capital spending guided at $24.0–28.5 million, with FY 2026 at $42.0–47.0 million. D&C accounts for the largest share, with $19.9–23.6 million in Q3 and $32.1–35.9 million for the full year.
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2H 2026 Capital Program Details
Includes drilling and completion of 3 gross (2.1 net) Parkman wells in the PRB, facilities build-out for 2027 drilling, drilling of 2 gross (0.5 net) Barnett wells in the Permian, and completion of 5 gross (0.4 net) Marcellus wells.
Analysis · EPSN · Energy & Transportation
Epsilon Energy provided its first formal production and capital guidance for Q3 and full-year 2026. The company expects sequential production growth of 10% in Q3 and 18% for the full year, driven by a 27% and 194% increase in oil volumes respectively. Capital spending is guided at $24.0–28.5 million for Q3 and $42.0–47.0 million for FY 2026, with the majority allocated to drilling and completion in the Powder River Basin. This guidance comes one day after the company's Q2 2026 10-Q, which reported net income of $7.13 million but also disclosed a material weakness in internal controls. The guidance provides investors with a clearer picture of the company's growth trajectory and capital allocation plans for the remainder of the year.
At the time of this filing, EPSN was trading at $5.60 on NASDAQ in the Energy & Transportation sector, with a market capitalization of approximately $169.4M. The 52-week trading range was $4.20 to $6.65. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.