Epsilon Energy Ltd. (EPSN) Stock

Epsilon Energy Ltd. (EPSN) is a Energy stock trading at $5.64 (as of 2026-08-20), with a market capitalization of $170.95M and a trailing P/E of 17.7. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Epsilon Energy Ltd. is an oil and natural gas company that acquires, develops, and produces reserves in the United States, including associated gathering and production activities. It operates an Upstream segment and a Gathering System segment with production in Pennsylvania’s Marcellus and Oklahoma’s Anadarko Basin.

Understand Epsilon Energy Ltd.: how it makes money

Epsilon Energy Ltd. produces oil, natural gas, and NGLs in the United States, and it also operates a gas gathering system, earning money from upstream production and the gathering of gas delivered through its system.

Profit is structurally driven by net production volumes from its upstream assets, and the prices and differentials it realizes, with risk partly managed through hedging, plus the amount of gas that moves through its gathering system.

Business quality (Strong): Clear operating footprint (Upstream and Gathering System) and multiple unit operating and hedging metrics are provided, but segment revenue and several price-related figures in the KPI set appear as placeholders, limiting precision.

Bull case

Asset base spans major US basins and multiple product types: The company has natural gas production in the Marcellus (Pennsylvania) and oil, NGL, and natural gas production in the Anadarko Basin (Oklahoma).
Hedging is explicitly part of the operating setup: Operational disclosures include hedged PDP oil volumes and hedged percentages of forecasted PDP gas production, which suggests a deliberate approach to reducing price exposure for portions of forecasted production.
Gathering system creates an additional production value pathway: Epsilon reports operations through both Upstream and Gathering System segments, including gas delivered through its Auburn Gas Gathering System.

Bear case

Commodity price and differential risk can still flow through: The KPI set includes metrics such as negative natural gas differential and realized natural gas price, indicating exposure to realized price movements versus benchmarks.
Hedge coverage can leave remaining production unprotected: Hedged percentages of forecasted PDP gas and PDP oil production are shown, implying only part of forecasted output may be hedged at a given time.
Operational execution matters across basins and systems: The company’s KPIs reference both upstream production performance and gathering system operations, so issues in either area could affect delivered volumes and overall economics.

Valuation — source: SEC EDGAR (first-party)
Price	$5.64
Market Cap	$170.95M
P/E Ratio	17.7
EV / EBITDA	5.2
Price / Book	1.32
Price / Sales	2.18
DCF Value (model)	$13.95
DCF Upside vs Price	147.1%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$51.59M
Net Margin	-11.2%
Revenue Growth (YoY)	63.7%
EPS Growth (YoY)	-377.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	0.78 (distress)

Valuation vs Sector & Industry
Stock P/E	17.7
Sector P/E (Energy)	16.8
Industry P/E (Petroleum & Natural Gas)	16.7
vs Sector	5.4%
vs Industry	6.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	Solas Capital Management, LLC ($21.38M)
Institutional Holders Tracked	10

Company
Sector	Energy
Industry	Petroleum & Natural Gas
CEO	Jason Stabell
Employees	10
Country	US
IPO Date	2007-11-15

Related Companies (Business model: Exploration & Production (Upstream Oil & Gas); 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.