EPSN - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the Epsilon Energy Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to our Chief Financial Officer, Mr. Andrew Williamson. Please go ahead, sir.

J. Williamson

Thank you, operator. and the you I to to Second XXXX of welcome like review behalf Quarter of all today's Financial on management would team, to Epsilon's And Results. Operational conference call

include factors expectations I'd from financial begin, the differ statements. Today's noted you comments should to Before expressed Epsilon's forward-looking forward-looking variety actual we It of like statements. a materially or in cause that these anticipated remind and our results may could that to be measures. call results that I'd non-GAAP refer non-GAAP may to for Chief release certain call turn over also that, earnings Please we our Stabell, disclosures Executive the contain the measures. With Jason to like on reconciliations Officer. yesterday to issued forward-looking statements of

Jason Stabell

thank Andrew. participating conference morning, for XXXX quarter you, in second Good call. and you our Thank

today our Clanton, Joining and Williamson, COO. Andrew me CFO; our Henry are

be We answer call. in later will available to the questions

natural natural for prices, in we sixth has the activities. market. Overall, of increase We quarter. and to with the to several of to to growth interim our to in consecutive of leveraged resulted cash a These sequentially gas catalysts. XXX% gas natural oversupplied of during a combination Our in decreased approach continued more volume flow, were curtailed representing due uplift XX-month XX% XX% and several summer, over and weeks value potential more completion the that volumes spot. In well quarter. In potential positioned Permian deliver proactive volumes net the the remains company continued an Permian off-line expect in offset operator rebound flow for initial the curtailments defer and remove quarter, third Pennsylvania, XXXX, TILs to our in the of volumes quarter declines meaningful remains support revenue and we wells for gas strip production. The so deteriorate assets current and the than an business our revenues the contributed fact X quarterly approximately of volumes the remain bright despite cash with for deferred our extremely than

of year-end. an sale is County, our of expect before update where Ector the which The we first process operator ongoing in

The second in efforts available. become liquidity our new business that is matched that us advantage our opportunities ongoing will catalyst potential development of strong areas, allow to take position attractive with

Now over to I'd Andrew additional the like to call comments. for turn

J. Williamson

Thanks, Jason.

in pending current and are on We upstream the QX, online. cash based strip expecting Marcellus trough volumes this come forward flow and curtailed our the year from to QX as

come quarter, gas forward, going and regime on rate have last a Auburn we will clarity executing through leaseholder May for gathering to lifted which that system shipper. in new some is owner said, the continue new mentioned a regime That after until provides as the development are on put revenues the the from a volumes rate incremental curtailments I gathering good and thing As gathering new a down the system, agreement dedicated system system.

earnings good will As long-term to most asset, comfortable dividend. midstream continue about are the we of Jason the and mentioned, underwrite that very our of viability feel

gas prices side leveraged are on better we midstream However, well. to as the

year-end. additional contribution we development in but sale recent before expect in growth near Permian the the process until We will development the operator uncertain third incremental is the see will and in we're which happen from quarter, the on volume term there completed,

position adding potential profile. and flow in deploy comfortably that development active We to cash more excited about with capital, there which opportunities, additional improving can happens. We've are our the at participate of new and and we to areas eager we're do been looking expect once liquidity

has we attractive opportunities. potentially a been year Canada, see Our of where focus this in number

things keep updated you progress. will as We

at redetermined after the higher June, production the As borrowing adding our in and despite lender in was in temporary commitments base same Marcellus. the $XX amount, challenges with announced our to Texas million,

it Henry operations. for to I'll over Now turn

Henry Clanton

Andrew. and Jason you, Thank

meaningful undevelopment We per Basin. block. Early interval adding risks, production the Fuego importantly, leading quarter. than southernmost crossing our began well the south value Permian including indicate into parent-child guidance this of is spacing during productivity project. Recent well that test from water development over play The are costs forward. to This spacing meeting the initial drilled infrastructure development, runway. the continue operators last section, XX,XXX-acre development and planned wells in the meaningful the wells supply is undeveloped in thoughtfully field existing significant project. an results the for productivity confirming expectations to can the status by horizontal to of potential in of to increase well disposal the Flowback on development the growth predrill build minimizing expected in further up X operations pad Pradera to the of in moving are reduce full meaningfully seventh production the date, more the July greater provides in August, and of acreage a block Peak

interval, a Woodford of reported high organic new the demonstrates the to continue through thermal second previously, price curtailments well prospectivity interval Barnett. The performance, coupled efforts of evaluation the the the the current recent maturity the and Analysis drills As similar thickness support acreage production core delayed to the during of Woodford. perspective environment. low the on taken we content TILs continue within worthy appraisal. In interval, this Marcellus, suggests offset with of and

to back Now Jason.

Jason Stabell

we Operator, questions. Thanks, open for now the line can guys.

Operator

sir. Please our closing conclude turn like go will for session. the to ahead, would this conference I Mr. to Instructions] And back over any [Operator Stabell question-and-answer remarks. Jason

Jason Stabell

and have a Thank you here Thanks, Houston. Epsilon please questions, us in you, if any always, great interest and as contact in today. operator. have us And appreciate joining day. I your

Operator

The attending conference for has you concluded. now Thank today's presentation.

Epsilon Energy (EPSN) 14 Aug 242024 Q2 Earnings call transcript