Key Highlights

• Epsilon Energy's $0.0625 quarterly Dividend trades with a September 15, 2026 record date, payable September 30.

• Second-quarter Revenue was $18.3 million, up 57% year over year, with diluted EPS of $0.23 versus $0.07 a year earlier.

• CEO Jason Stabell described the company's transformation from a non-operator into a diversified operator/non-operator hybrid, with projects progressing ahead of schedule and on budget.

• Management provided initial guidance for third-quarter oil production growth of over 25% sequentially and full-year oil production of approximately 1,800 barrels per day.

Epsilon Energy's (NASDAQ:EPSN) $0.0625 quarterly dividend trades with a September 15 Record Date and September 30 payment date. CEO Jason Stabell said the company has undergone "a significant transformation" over the past eight months, expanding from a non-operator into a hybrid operator/non-operator model, with projects he described as progressing ahead of schedule and on budget.

Dividend Program and Shareholder Returns

Epsilon Energy declared a $0.0625 per share quarterly dividend, payable September 30 to shareholders of record September 15. The annualized dividend is $0.25 per share, a rate the company has maintained consistently across recent quarters going back several years, funded from a mix of production Cash Flow and periodic asset-sale proceeds given the company's small scale and variable quarterly production. The company has continued the payout through the current shift toward operated projects, distinct from the dividends of larger, purely non-operated peers that rely solely on royalty-style cash flow.

About the Company

Epsilon Energy is a North American onshore natural-gas and oil production and gathering company with Assets across the Appalachian, Powder River, Permian and Western Canadian Sedimentary basins, historically operating as a non-operator that participates in wells run by other operators.

Financial Performance Behind the Payout

Epsilon Energy reported second-quarter revenue of $18.3 million, up 57% year over year, with Net Income of $7.1 million and diluted EPS of $0.23, compared with $0.07 a year earlier. Management said Marcellus production was down 16% quarter over quarter due to a planned suction-pressure increase in the Auburn Gas Gathering System in May. A well brought onto production in June was described by the company as performing in line with expectations, with production from second-quarter activity expected to make a larger contribution to results starting in the third quarter.

Portfolio Transactions and Production Guidance

The company completed two portfolio changes during the period under review: a May 4, 2026 overriding-royalty-interest sale covering 90 producing Marcellus wells for $3.9 million, and a July transaction selling a 24% interest in three Parkman wells for a $1.1 million upfront payment, leaving Epsilon with a 72% interest in those wells. Management identified upcoming milestones as Parkman completions in the third quarter with production online in the fourth quarter, Marcellus completions in the fourth quarter with production online in December, and Barnett completions expected in the first quarter of 2027.

Outlook

The specified milestones, Parkman completions in Q3 and Marcellus completions in Q4, are the clearest markers for whether guided oil production growth materializes. About 35% of 2026 Capital spending is timed to affect results for only 60 days in Q4, a detail worth factoring into any quarter-over-quarter comparison.