The following is a summary of the Epsilon Energy Ltd. (EPSN) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Epsilon Energy reported a 19% quarter-over-quarter oil production growth driven by the online activation of the seventh Ector well in the Permian.

• In contrast, they forecast quarter-over-quarter declines in liquids production until drilling resumes next year.

• Reported a low realized price of $1.54 per Mcf in Pennsylvania and an increase in operating costs by about 40% due to plugging and abandonment activities.

• EBITDA from the Permian contributed approximately $8.5 million, about 70% of the total company's figure.

Business Progress:

• Announced entry into Alberta, Canada through two joint ventures, focusing initial development on the Garrington area with operations starting fourth quarter of this year.

• Plans to drill four gross wells in 2025 in Alberta.

• Continued development in the Permian Basin, despite operational delays, and plans in Pennsylvania for lifting curtailments and bringing deferred wells back online.

Opportunities:

• The expansion into Alberta, Canada represents a significant opportunity due to a favorable cost structure, royalty regime, and a large set of liquid-focused development opportunities.

• There is potential for additional investments, particularly in Canada, aligning with the company's strategy to expand international presence and diversify operations.

Risks:

• Forecasted declines in liquid production until further drilling activity resumes next year, emphasizing potential operational delays and impact on production volumes.

• Continuous low wellhead prices in Pennsylvania impacting revenue negatively.

• Uncertainty surrounding the lifting of production curtailments and the timeline for bringing deferred wells back online.

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