Epsilon Energy Ltd. has secured a $47.5 million revolving credit facility with Frost Bank, supporting upcoming acquisitions.
Quiver AI Summary
Epsilon Energy Ltd. has successfully closed a new senior secured reserve-based revolving credit facility, led by Frost Bank, replacing its previous credit facility. This four-year facility, which will mature on October 8, 2029, has an initial borrowing base of $47.5 million and is linked to the company's existing U.S. upstream assets. The facility is designed to accommodate upcoming acquisitions, including those of the Peak companies, and allows for semi-annual redeterminations of the borrowing base. It features a variable interest rate tied to the 3-Month Term SOFR plus a margin that depends on usage. The proceeds from this facility will be used to repay existing debts of the acquired companies. Epsilon’s CFO emphasized that this facility enhances the company's financial flexibility and stability as it aims to expand its operations.
Potential Positives
- Epsilon Energy Ltd. has successfully secured a new senior secured reserve-based revolving credit facility, providing additional financial flexibility and strength to the company.
- The new credit facility has an initial borrowing base of $47.5 million and is expected to be increased following the acquisition of the Peak companies, bolstering Epsilon's asset base.
- The extended term of four years allows for long-term planning and stability as the facility matures on October 8, 2029.
- The credit facility supports the company's strategic acquisitions, indicating a proactive approach to growth while maintaining a strong balance sheet and liquidity.
Potential Negatives
- The new credit facility appears to be necessary to refinance existing debt, indicating potential liquidity constraints or financial stress within the company.
- The initial borrowing base of $47.5 million is not sufficient to cover the estimated $49.6 million balance of the Peak companies' existing term loan, which could imply potential operational or financial risk in closing the acquisition.
- Forward-looking statements highlight uncertainties and risks, suggesting that the company's future performance may be less stable than anticipated, which could affect investor confidence.
FAQ
What is the new credit facility announced by Epsilon Energy Ltd.?
Epsilon Energy Ltd. has closed a revised senior secured reserve-based revolving credit facility with Frost Bank and Texas Capital Bank, replacing its previous facility.
What are the key terms of Epsilon's new credit facility?
The new credit facility has a four-year term, an initial borrowing base of $47.5 million, and will be redetermined upon acquiring Peak companies.
When does the new Epsilon credit facility mature?
The new credit facility matures on October 8, 2029, providing significant financing duration for the company.
How will Epsilon use the proceeds from the new credit facility?
Proceeds from the new facility will repay Peak’s existing term loan, estimated at $49.6 million at closing.
Who commented on the benefits of the new credit facility?
Andrew Williamson, Epsilon’s Chief Financial Officer, commented that the facility increases commitment capacity and supports upcoming acquisitions while maintaining liquidity.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$EPSN Insider Trading Activity
$EPSN insiders have traded $EPSN stock on the open market 8 times in the past 6 months. Of those trades, 4 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $EPSN stock by insiders over the last 6 months:
- CAPITAL MANAGEMENT, LLC SOLAS has made 0 purchases and 4 sales selling 148,854 shares for an estimated $939,222.
- ANDREW WILLIAMSON (Chief Financial Officer) has made 2 purchases buying 22,500 shares for an estimated $118,150 and 0 sales.
- JASON STABELL (Chief Executive Officer) has made 2 purchases buying 15,000 shares for an estimated $85,110 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$EPSN Hedge Fund Activity
We have seen 58 institutional investors add shares of $EPSN stock to their portfolio, and 20 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BLACKROCK, INC. added 775,311 shares (+880.2%) to their portfolio in Q2 2025, for an estimated $5,721,795
- MARSHALL WACE, LLP added 388,810 shares (+inf%) to their portfolio in Q2 2025, for an estimated $2,869,417
- GEODE CAPITAL MANAGEMENT, LLC added 237,507 shares (+95.3%) to their portfolio in Q2 2025, for an estimated $1,752,801
- VANGUARD GROUP INC added 228,288 shares (+23.7%) to their portfolio in Q2 2025, for an estimated $1,684,765
- TRUFFLE HOUND CAPITAL, LLC removed 221,625 shares (-100.0%) from their portfolio in Q2 2025, for an estimated $1,635,592
- ADAGE CAPITAL PARTNERS GP, L.L.C. removed 203,497 shares (-19.8%) from their portfolio in Q2 2025, for an estimated $1,501,807
- STATE STREET CORP added 141,814 shares (+195.9%) to their portfolio in Q2 2025, for an estimated $1,046,587
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
HOUSTON, Oct. 13, 2025 (GLOBE NEWSWIRE) -- Epsilon Energy Ltd. (“ Epsilon ” or the “ Company ”) (NASDAQ: EPSN) today reported the closing of a new and revised senior secured reserve-based revolving credit facility (the “ Credit Facility ”) with Frost Bank as the administrative agent and Frost Bank and Texas Capital Bank as lenders. The new Credit Facility replaces the Company’s previous credit facility.
Term highlights of the Credit Facility:
- Epsilon Energy USA Inc. and Epsilon Energy Ltd. as co-borrowers
- Four year term (matures October 8, 2029)
- Initial borrowing base and commitments of $47.5 million (supported by the Company’s existing US upstream assets), which will be redetermined and increased on the closing of the acquisition of the Peak companies later in Q4 2025 (to include the acquired assets).
- Semi-annual redeterminations
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Interest is charged on drawdowns at the 3-Month Term SOFR rate plus a margin of 3-4% (depending on facility utilization), payable quarterly
The new Credit Facility will initially fund at the same time as the closing of the Peak companies acquisition. Proceeds will go to repaying Peak’s existing term loan, with an estimated balance at closing of $49.6 million.
“The new and revised credit facility adds commitment capacity and tenor and enables the Company to comfortably close the acquisitions announced in August while maintaining a strong balance sheet and liquidity going forward” commented Andrew Williamson, Epsilon’s Chief Financial Officer.
A copy of the new loan agreement is available in the Form 8K filed following this release.
About Epsilon
Epsilon Energy Ltd. is a North American onshore natural gas and oil production and gathering company with assets in Pennsylvania, Texas, Alberta CA, New Mexico, and Oklahoma
Forward-Looking Statements
Certain statements contained in this news release constitute forward looking statements. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, ‘may”, “will”, “project”, “should”, ‘believe”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated. Forward-looking statements are based on reasonable assumptions, but no assurance can be given that these expectations will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon.
Contact Information:
281-670-0002
Jason Stabell
Chief Executive Officer
[email protected]
Andrew Williamson
Chief Financial Officer
[email protected]
